Bank Islam expands sustainable finance portfolio to RM33.4 billion by June 2026
According to Bank Islam Malaysia Bhd, its sustainable finance portfolio grew from RM31.3 billion in FY2025 to RM33.4 billion as at June 2026, exceeding its 2026 target of RM30.7 billion by 9 percent. The bank said the…
Source: KLSE Screener · September 28, 2026 at 1:02 AM · AI-assisted report
Single-sourceKUALA LUMPUR, 28 SEPTEMBER 2026 —
According to Bank Islam Malaysia Bhd, its sustainable finance portfolio grew from RM31.3 billion in FY2025 to RM33.4 billion as at June 2026, exceeding its 2026 target of RM30.7 billion by 9 percent. The bank said the growth reflects rising demand for investments that deliver both financial and social values.
Market Impact
The Ihsan Sustainability Investment Account (ISIA) series deployed over RM3.5 billion by FY2025 and climbed to RM4.1 billion by June 2026, the bank reported. Bank Islam explained that ISIA connects investor capital with carefully selected Shariah‑compliant financing assets that incorporate social impact contributions aligned with the United Nations’ Sustainable Development Goals. Assets are chosen after assessing business strength, financing purpose, risks, potential returns and contributions to economic activity and wider social or environmental outcomes.
Sharifah Sarah Syed Mohamed Tahir, Bank Islam’s Group Chief Business Officer for Corporate and Investment Banking, said, “At Bank Islam, we believe financial solutions should deliver value that extends beyond returns. Our approach is centred on creating meaningful opportunities for individuals, businesses and communities, while supporting sustainable growth and long‑term economic resilience.” She added, “Through our products, services and strategic initiatives, we aim to generate positive outcomes for our customers and the communities we serve.”
For small and medium‑sized enterprises (SMEs), Bank Islam launched the Ihsan Financing for Business Resilience, Sustainability and Green Transition (IFiRST) in FY2025. Unveiled at the inaugural Bank Islam Sustainability Conference, the Shariah‑compliant solution combines financing, advisory support and knowledge‑sharing to help SMEs and mid‑tier companies, especially those in carbon‑intensive sectors, manage rising operating costs and transition towards more resilient, lower‑carbon practices.
The bank also works with anchor organisations to widen financing access across their business ecosystems, using verified contact and vendor information to provide working capital and trade facilities more efficiently.
As at June 2026, more than RM700 million in financing had been approved for over 150 vendors under Bank Islam’s Vendor Financing Programme, the bank said. This initiative helps fortify businesses and strengthen the wider supply chain.
Through its social finance platform Sadaqa House, Bank Islam runs the iTEKAD microfinance programme, which blends philanthropic funds such as zakat with social impact investments to empower low‑income microentrepreneurs, particularly those from underserved and asnaf communities. By FY2025, RM53 million had benefited over 1,800 microentrepreneurs, while RM1.36 million supported more than 3,000 students and educational institutions, according to the bank.
By June 2026, iTEKAD BangKIT beneficiary Setapak Cats House had grown its monthly revenue by 67 percent to RM20,000, saved RM2,000 a month and secured RM50,000 in additional financing to open a second outlet, the bank reported.
Another beneficiary, Dessert Kita Cafe, grew monthly revenue by 33 percent to RM40,000, doubled its assets to RM20,000, created six full‑time jobs and lifted monthly savings to RM3,000, with plans to progress to iTEKAD Maju financing, the bank added.