KUALA LUMPUR: Bank Islam Malaysia Bhd is heading for another solid year-end, after turning in a profit before zakat and tax of RM341.9 million in the first nine months to September 2011, a 41.7 per cent improvement from a year ago.
It reported a gross return on equity of 17.3 per cent at the end of the period against 16.5 per cent previously while return on assets (ROA) was at 1.5 per cent against 1.2 per cent before.
The bank attributed the high ROA to its continued efforts in reshaping its balance sheet for optimal returns, achieving a well-balanced product composition and a better funding cost structure.
Managing director Datuk Seri Zukri Samat said Bank Islam's overall growth during the period came from robust financing growth, better product mix, continued improvement in asset quality, increased contribution from non-fund based income, customer loyalty and implementation of cost containment measures.
Although Bank Islam's risk-weighted capital ratio (RWCR) fell below the 16 per cent mark to 15.8 per cent (end-December 2010: 16.2 per cent) as at end-September 2011, Zukri said he was pleased with strength of the bank's capitalisation ratios.
While its RWCR surpassed the Islamic banking industry's average of 15.2 per cent, its Tier-1 core capital ratio also remained strong at 14.9 per cent as at end-September 2011 (end-December 2010: 15.2 per cent).
During the first nine months of 2011 financial year, positive contribution from both types of income pushed total revenue up by 12.1 per cent year-on-year to RM1.2 billion, despite slower expansion rate of 9.4 per cent for fund-based income from the previous corresponding period.
The double-digit growth trend for non fund-based income remained uninterrupted, surging 38.1 per cent to RM135.6 million for the period under review. From 9.2 per cent a year ago, the ratio of non fund-based income to total income rose to 11.3 per cent as at end-September 2011.
Net financing grew by 14.9 per cent or RM1.4 billion to RM13.3 billion as at end-September 2011 from RM11.9 billion as at end-December 2010.
The Islamic bank said its deposit structure continues to mirror its deliberate strategy in reshaping the balance sheet with increased emphasis given to lower funding costs.
It reported a gross return on equity of 17.3 per cent at the end of the period against 16.5 per cent previously while return on assets (ROA) was at 1.5 per cent against 1.2 per cent before.
The bank attributed the high ROA to its continued efforts in reshaping its balance sheet for optimal returns, achieving a well-balanced product composition and a better funding cost structure.
Managing director Datuk Seri Zukri Samat said Bank Islam's overall growth during the period came from robust financing growth, better product mix, continued improvement in asset quality, increased contribution from non-fund based income, customer loyalty and implementation of cost containment measures.
Although Bank Islam's risk-weighted capital ratio (RWCR) fell below the 16 per cent mark to 15.8 per cent (end-December 2010: 16.2 per cent) as at end-September 2011, Zukri said he was pleased with strength of the bank's capitalisation ratios.
While its RWCR surpassed the Islamic banking industry's average of 15.2 per cent, its Tier-1 core capital ratio also remained strong at 14.9 per cent as at end-September 2011 (end-December 2010: 15.2 per cent).
During the first nine months of 2011 financial year, positive contribution from both types of income pushed total revenue up by 12.1 per cent year-on-year to RM1.2 billion, despite slower expansion rate of 9.4 per cent for fund-based income from the previous corresponding period.
The double-digit growth trend for non fund-based income remained uninterrupted, surging 38.1 per cent to RM135.6 million for the period under review. From 9.2 per cent a year ago, the ratio of non fund-based income to total income rose to 11.3 per cent as at end-September 2011.
Net financing grew by 14.9 per cent or RM1.4 billion to RM13.3 billion as at end-September 2011 from RM11.9 billion as at end-December 2010.
The Islamic bank said its deposit structure continues to mirror its deliberate strategy in reshaping the balance sheet with increased emphasis given to lower funding costs.
