Bank Islam Group recorded a net profit of RM254.2 million for the first half of 2026.

This was 0.5% higher than the RM253 million posted a year earlier as rising overheads, impairment allowances and financing costs offset stronger income.

Net income grew 5.1% year-on-year to RM1.43 billion, supported by stronger fund-based income and fee and commission income. Lower gains from securities sales partly offset the growth.

Total overhead expenses rose 3.9% to RM855.9 million as Bank Islam invested in talent, digital capabilities and technology infrastructure.

Its net allowance for impairment on financing and advances climbed 17% to RM143 million, while financing costs rose 22.7% to RM98 million.

For the second quarter, net profit increased 9.8% year-on-year to RM139.1 million.

Bank Islam’s gross financing expanded 7.5% year-on-year to RM77.9 billion at the end of June. Customer deposits and investment accounts reached RM86.9 billion, up 5.1%, while total assets grew 7.2% to RM106.7 billion.

Institutional banking net income rose 5% to RM488.5 million in the first half, supported by fund-based income, financing-related fees and foreign exchange income.

Retail banking net income declined 11.3% due mainly to lower fund-based and bancatakaful income.

“Our strategic renewal will be anchored on simplification, automation and digitalisation. We are reviewing our processes, operating model and cost structure to eliminate complexity, improve execution effectiveness and deliver faster, more seamless and intuitive customer experiences.

At the same time, we will invest purposefully in talent development and technology, accelerate digital adoption and build a core banking architecture and infrastructure that strengthens the group’s agility and resilience.”

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