KUALA LUMPUR (Nov 30): Bank Islam Malaysia Bhd's net profit for the third quarter ended Sept 30, 2022 (3QFY2022) jumped 40.57% to RM142.86 million from RM101.63 million in the same period last year mainly due to higher net income offset by higher total overheads.

During the quarter under review, Bank Islam also saw higher tax expenses following a special one-off tax which took effect for the year assessment 2022, as per the Finance Act gazetted in 2021.

Net income increased by RM111.2 million or 22.2%, mainly due to higher net fund-based income during the quarter driven by financing growth, while total overheads were higher by RM53.5 million or 18.8% over 3QFY2021 overheads mainly due to higher staff costs by RM40.2 million and general expenses by RM13.3 million.

Additionally, net allowance for impairment on financing and advances, financing was lower at RM24.9 million for the 3QFY2022, a decrease by 9.1 million or 26.7% as compared to 3QFY2021.

Earnings per share was up at 6.63 sen from 4.08 sen previously, according to the bank's Bursa Malaysia filing on Wednesday (Nov 30).

Quarterly revenue climbed 25.12% to RM933.68 million from RM746.22 million a year earlier.

For the first nine-month period, Bank Islam’s net profit dropped 19.52% to RM365.93 million from RM454.67 million a year ago despite revenue growing 7.62% to RM2.53 billion from RM2.35 billion.

On prospects, Bank Islam said it has shown traction on its joint account planning initiative and wholesale banking target operating model over the first half of the year.

Looking ahead, the country's first public-listed Islamic bank noted it has widened its exposure to new green segments such as energy efficiency, net energy metering, office automation and waste management in expanding its green financing portfolio.

“Bank Islam is also developing a digital supply chain model to meet the requirements of corporate clients.

“The optimisation of digital platforms will help Bank Islam to further strengthen its collaboration and open more business opportunities with its existing partners and potential new clients,” it said.

Meanwhile, Bank Islam said its corporate banking aims to cultivate and grow new-to-bank sectorial focus, largely on green financing and unrated sukuk as part of the commitment to diversify its income contribution.

It added that the bank remains vigilant in preserving asset quality by being cautious in onboarding new corporate customers.

Bank Islam’s share price ended on Wednesday three sen or 1.16% lower at RM2.56, bringing the group a market capitalisation of RM5.52 billion.