Bank Islam posts higher Q3 pre-tax profit

Bank Islam Malaysia Bhd's profit before tax and zakat (PBZT) for the nine months ended Sept 30, 2011 rose by 41.7 per cent to RM341.9 million. Total revenue went up by 12.1 per cent to RM1.2 billion despite a slower expansion rate of 9.4 per cent for fund-based income compared with the corresponding period last year, it said in a statement today.

Its managing director, Datuk Seri Zukri Samat, attributed the higher PBZT to
a robust financing growth, better product mix, continued improvement in asset
quality, increased contribution from non-fund-based income and the
implementation of cost containment measures.

Bank Islam's gross return on equity as at end-September 2011 stood at 17.3

per cent (end-December 2010: 16.5 per cent) and gross return on assets as at
end-September 2011 was at 1.5 per cent (end-December 2010: 1.2 per cent). Its net financings grew by 14.9 per cent to RM13.3 billion as at
end-September from RM11.9 billion as at end-December 2010.

Bank Islam's deposit structure continued to mirror its deliberate strategy
in reshaping the balance sheet with increased emphasis given to lower funding
costs, in particular, through current account, saving account (CASA).

Total customer deposits amounted to RM26.1 billion as at end-September 2011
of which CASA accounted for 42.8 per cent compared with 39.7 per cent as at
end-December 2010. The bank's financing-to-deposits ratio rose to 52.6 per cent as at end-September 2011 from 45.7 per cent (end-December 2010).

Going forward, Bank Islam said it would continue to remain vigilant in its
asset acquisition and conduct prudent, responsible and transparent financing
practices through adequate customer affordability evaluations and increased
disclosure for the purpose of enhancing consumer protection. -- Bernama