Bank Islam’s share price drops 10% as 4Q net profit falls 55% y-o-y
KUALA LUMPUR (Feb 28): Bank Islam Malaysia Bhd’s share price declined in afternoon trading session on Monday (Feb 28) as investors reacted to the Islamic bank’s latest quarterly financial result announcement that saw its net profit for the fourth quarter ended Dec 31, 2021 (4QFY21) falling 55.06% year-on-year (y-o-y) to RM79.64 million.
The stock has fallen 10% to a low of RM2.93 so far on Monday.
At the time of writing, the counter has recovered somewhat to RM2.99, still down 24 sen or 7.43% from Friday’s close of RM3.23, with more than 1.8 million shares exchanging hands so far.
Earlier on Monday, Bank Islam announced that its 4QFY21 net profit dropped 55.06% to RM79.64 million from RM177.21 million in the same period last year.
The bank attributed the 4QFY21 net profit fall to higher allowance charged for impairment on financing and advances during the current period mainly due to expected credit loss provided to one non-retail customer which turned impaired in the period.
Bank Islam’s gross impaired financing ratio rose to 0.96% as of Dec 31, 2021 compared to 0.67% in the financial year ended Dec 31, 2020 (FY20).
The bank reported higher net impairment on financing and advances in the 4QFY21 at RM111.18 million against a reversal of net impairment on financing and advances of RM3.54 million a year earlier.
Revenue for the quarter was up 7.57% y-o-y to RM816.28 million from RM758.81 million, its filing with Bursa Malaysia showed.
No dividend was declared for the period under review compared with the 5.37 sen declared in 4QFY20. For the full year, Bank Islam had declared a 10.93 sen dividend, 0.01 sen higher the 10.92 sen declared in FY20.
Additionally, Bank Islam’s FY21 net profit fell 5.42% y-o-y to RM534.3 million from RM564.95 million, while revenue slipped 5.22% to RM3.17 billion from RM3.34 billion.