Bank Islam’s sustainable finance portfolio hits RM33.4b, outpacing 2026 target by 9%
Bank Islam Malaysia Bhd’s sustainable finance portfolio expanded to RM33.4 billion by June 2026—9% above its RM30.7 billion annual target—as demand surged for Shariah-compliant products that deliver both financial…
Source: KLSE Screener · September 28, 2026 at 3:02 PM · AI-assisted report
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MALAYSIA, 28 SEPTEMBER 2026 —
Bank Islam Malaysia Bhd’s sustainable finance portfolio expanded to RM33.4 billion by June 2026—9% above its RM30.7 billion annual target—as demand surged for Shariah-compliant products that deliver both financial returns and measurable social impact.
Market Impact
The growth reflects the bank’s alignment with Maqasid al-Shariah, which prioritises lawful, sustainable returns while promoting societal well-being and economic resilience. Sharifah Sarah Syed Mohamed Tahir, Bank Islam’s Group Chief Business Officer for Corporate and Investment Banking, said the bank’s strategy extends beyond capital deployment, focusing instead on "meaningful opportunities for individuals, businesses and communities".
At the core of this approach is the Ihsan Sustainability Investment Account (ISIA), which has deployed RM4.1 billion in assets as of June 2026—up from RM3.5 billion in FY2025. The account channels investor capital into Shariah-compliant projects that meet United Nations Sustainable Development Goals (SDGs), with selections based on business strength, financing purpose, risk, returns, and broader economic or environmental contributions.
The bank’s Vendor Financing Programme has approved over RM700 million for 150 vendors since June 2026, strengthening supply chains by providing working capital and trade facilities. Meanwhile, its Ihsan Financing for Business Resilience, Sustainability and Green Transition (IFiRST)—launched in FY2025—combines financing with advisory support to help SMEs, particularly in carbon-intensive sectors, transition to lower-carbon operations.
For microentrepreneurs, Bank Islam’s iTEKAD microfinance programme blends philanthropic funds like zakat with impact investments to offer financing, training, and mentoring. By FY2025, RM53 million had supported 1,800 microentrepreneurs, while RM1.36 million aided 3,000 students and educational institutions.
Two beneficiaries illustrate the programme’s impact: Setapak Cats House grew monthly revenue by 67% to RM20,000, secured additional financing, and opened a second outlet, while Dessert Kita Cafe increased revenue by 33% to RM40,000, doubled assets, and created six jobs.
The bank’s sustainable finance expansion—from RM31.3 billion in FY2025 to RM33.4 billion in mid-2026—spans social, green, and Sustainability Sukuk financing, reinforcing its role in Malaysia’s National Green Finance Roadmap. Sharifah Sarah emphasised that Bank Islam’s model "delivers value beyond returns", embedding financial inclusion, resilience-building, and responsible growth into its core operations.
Related: Bank Islam Malaysia Bhd · Sharifah Sarah Syed Mohamed Tahir · Malaysia