Bank Islam Malaysia

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Bank Islam logo

Bank Islam Malaysia Berhad (BIMB) is Malaysia's first Islamic bank. It was established on 1 July 1983 primarily to assist the financial needs of the country's Muslims. Starting with a paid-up capital of RM79.9 million, Bank Islam Malaysia Berhad (BIMB) has gradually increased its paid-up capital to RM563 million. Its main shareholder is Lembaga Tabung Haji, the Muslim pilgrims fund board, which is managed by the government.

2.  History: In November 2005, Bank Islam reported a loss for the first time in its history, amounting to RM480 million (US$127 million), largely as a result of high non-performing loans from its Labuan offshore unit. The huge losses emerged when Bank Islam converted its Labuan office from a subsidiary to a branch in December 2004, casting doubt on the effectiveness of Malaysia's regulatory and supervisory control of its banking system.

In 2007, however, Bank Islam reported its highest profit ever in its 24 year history with a profit before zakat and tax (PBZT) of RM255.49 million. Total assets also grew 30.9% to RM19.09 billion from RM14.60 billion.

3.  Logo controversy: On 7 August 2007, Bank Islam's new corporate logo was launched at a whopping cost of RM54 million (US$16.98 million). However, it sparked controversy, due to the positioning of a stylized "K" in the word "Bank" which to some, read "Ban Islam", instead of "Bank Islam".

Bank Islam then changed its logo from a stylized "K" to a crescent embracing the word "Islam" in July 2008, in conjunction with the bank's 25th anniversary. The bank's logo rationale reads: "The strength of Bank Islam lies in the word "Islam". In this word rests the bank's commitment to advocate a banking system based on Syariah principles.  more... at Chronology