KUALA LUMPUR: Bank Islam Malaysia Bhd is revising its base rate (BR) by 50 basis points to 2.77% from 3.27% and base financing rate (BFR) to 5.72% from 6.22%, effective May 12.
Deposit rates would also be adjusted downwards by 50 basis points in response to Bank Negara Malaysia’s move to slash the Overnight Policy Rate (OPR) by 50 basis points to 2%, its CEO Mohd Muazzam Mohamed said in a statement.
While the cut will no doubt affect its financial income, he said it was done with customers in mind and the bank pledged to continue to help the people get back on their feet during this difficult time as well as keep on supporting the economy to normalise.
“Having anticipated this rate cut, Bank Islam is prepared for any eventuality caused by the OPR cut and will continue to focus on diversifying the bank’s revenue streams, especially in the fee-based income segment,” Mohd Muazzam said.
The bank will be strategising to balance its funding portfolio to be more cost-effective as it helps to mitigate net income margin compression.
“We will be leveraging on technological advancements, and implement selected digitalisation initiatives to drive further operational efficiencies, lending additional support to long-term profitability and overall viability,” he added.
The last revision in Bank Islam’s BR was on March 6. – May 7, 2020, Bernama
