Bank Islam Malaysia profit misses analyst estimates on higher provisions

Fee income lifted operating revenue but was offset by loss provisioning and overheads.

Higher-than-expected financing loss provisioning and finance costs led Bank Islam Malaysia Berhad’s H1 net profits to miss estimates, said CGS International.

The Malaysian lender reported a net profit of $59.92m (MYR253m) in the first six months of the 2025 fiscal year, 5.9% lower than the same period a year earlier, its latest results showed.

This is 43% of CGS International’s full-year forecast, said its analyst Winson Ng.

For Q2, the bank’s net profit was MYR126.7m, 8.3% lower compared to the same quarter a year earlier.

Bank Islam Malaysia’s fees and commissions rose by 29.9% year-on-year in Q2 2025.

The fee income lifted operating revenue to an 11.1% growth during the quarter. However, it was offset by double digit increases of 17.4% in overheads and 20.5% in financing loss provisioning. This led to the 8.3% drop in the Q2 2025 net profit.

(US$1 = MYR4.23; as of 27 August 2025, from Morningstar via Google)