{
  "id": 12029872,
  "title": "Bank Islam's pivot to profitability over volume in the digital era",
  "url": "https://urgent.news/2026/10/04/bank-islams-pivot-to-profitability-over-volume-in-the-digital-era",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-10-04T23:50:24.000Z",
  "source": {
    "name": "New Straits Times",
    "slug": "new-straits-times",
    "url": "https://www.nst.com.my/business/corporate/2026/10/1547748/bank-islams-pivot-profitability-over-volume-digital-era"
  },
  "original_language": "en",
  "account": "Bank Islam Malaysia Bhd has appointed two former digital bank CEOs, Datin Paduka Raja Teh Maimunah Raja Abdul Aziz and Melvin Ooi, to lead the institution in a digital era. Raja Teh, previously CEO of Aeon Bank and AmInvestment Bank, and Ooi, former CEO of Ryt Bank, are expected to steer the bank towards sustainable profitability, digital transformation, and an enhanced customer experience. Raja Teh emphasized that the bank is no longer chasing loan growth for expansion but focusing on profitability, quality assets, and risk-based pricing. She stated that Bank Islam aims to improve its annualized return on equity (ROE) to double-digit figures within the next five years. The bank is willing to let go of businesses that do not meet internal profitability targets and risk-adjusted pricing standards, especially in the highly competitive retail sector. Raja Teh acknowledged that while some retail assets may be highly competitive, the bank will be selective and avoid a sweeping approach to retail lending. The strategic shift aligns with the current macroeconomic pressures faced by Malaysian banks, including intensified funding competition and rising deposit costs. Bank Islam's net financing margin had narrowed to 2.08% and improved to 2.12% in the first half of 2026. The bank plans to address operational efficiency by investing in information technology infrastructure and talent acquisition, aiming to reduce its cost-to-income ratio to 55% within three to five years.",
  "summary": "KUALA LUMPUR: It is not always that one sees a former digital bank’s chief executive joining an incumbent bank, let alone two, within the space of a few months.",
  "key_points": [
    "Former digital bank CEOs appointed to lead Bank Islam.",
    "Focus on profitability, quality assets, and risk-based pricing.",
    "Targeting double-digit ROE within five years."
  ],
  "editors_take": "Bank Islam's appointment of digital banking veterans signals a strategic shift to prioritize profitability over loan growth, reflecting a broader response to macroeconomic pressures and intensified funding competition.",
  "illustration": null,
  "coverage": {
    "outlets": 2,
    "also_reported_by": [
      {
        "outlet": "New Straits Times",
        "title": "Transforming Bank Islam's digital architecture, embracing open finance to better serve customers",
        "url": "https://urgent.news/2026/10/04/transforming-bank-islams-digital-architecture-embracing-open-finance",
        "published": "2026-10-04T23:49:25.000Z"
      }
    ]
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}