Bank Islam Integrated Annual Report 2020

Key Message About Our Repor t Over v iew of Bank I s lam DISRUPTIONS MUST BE MANAGED, BUT WITHOUT LOSING FOCUS The pandemic did disrupt our plans on t h e s e aml e s s r o l l - o u t o f o u r ɽɨƃȶɰǹɁɨȴƃɽȈɁȶ ƃǼljȶǁƃ ƺƃȢȢljǁ :ÝAKѵѴ ӯ:ʍȢɽʍɨlj ÝɥljɨƃɽȈɁȶƃȢ AȈǼȈɽƃȢ KʯƺljȢȢljȶƺljӰӝ ŚȃȈȢlj ʥlj ƺɁȶɽȈȶʍljǁ ɽɁ ƺȃƃȴɥȈɁȶ ɽȃlj core s t r ategic obj ect i ves of the programme as well as our TAAT values (Think Customer, Act with Integrity, Advance Beyond, Take Charge), we went strong on our preparedness to face the ȶljʯɽ ǹȈʤlj ӯѸӰ ʰljƃɨɰ ȃljƃǁӸɁȶӝ ěȃȈɰ ɨljɧʍȈɨljǁ us to continue strategising on our listing ɥȢƃȶɰ ǹɁɨ ѵѳѵѴӗ ʥȃȈƺȃ ʥȈȢȢ ɥȢƃƺlj 9ƃȶȟ Islam in a good market position, where we will have better access to capital, diverse fund-raising opportunities and new synergies for growth. ŚȃȈȢlj Ɂʍɨ ɥɨȈɁɨȈɽʰ ȃƃɰ ƹljljȶ ɽɁ ǹʍɽʍɨljɥɨɁɁǹ our business and our people, we recognised the immediate task at hand Ȉȶ ѵѳѵѳӝ Žɽ ʥƃɰ ɽɁ ljȶɰʍɨlj ɰƃǹljɽʰ ƃȶǁ productivity of our people; enhance access to our solutions in easing financial burden and hardships of our customers; maintain a robust balance sheet and preserve the value of our business for both our shareholders and critical stakeholders. yɁɨ ɽȃlj ǹ ȈȶƃȶƺȈƃȢ ʰljƃɨ ljȶǁljǁ ѶѴ Aljƺljȴƹljɨ ѵѳѵѳӗ 9ƃȶȟ ŽɰȢƃȴԇɰ ɨljʤljȶʍlj ɽɁɁȟ ƃ ɰȢȈǼȃɽ ȃȈɽ ƃɽ ѷӝѹՐӗ ƺɁȴɥƃɨljǁ ɽɁ ѼӝѸՐ Ȉȶƺɨljƃɰlj Ȉȶ ɽȃlj ɥɨljʤȈɁʍɰ ʰljƃɨӝ ŚȈɽȃ ĄÃѶӝѸ ƹȈȢȢȈɁȶ Ȉȶ ɨljʤljȶʍljӗ ɽȃlj ƹɁɁȟljǁ ɥɨɁǹȈɽ ƹljǹɁɨlj ɽƃʯ ƃȶǁ ˃ƃȟƃɽ ӯĀ9ŹěӰ ǹɁɨ ѵѳѵѳ ʥƃɰ ĄÃѺѵѹӝѻ ȴȈȢȢȈɁȶӗ ƃ ѴѶӝѹՐ ǁljƺɨljƃɰlj ǹɨɁȴ ѵѳѴѼӝ ¶ljʰ ƺɁȶɽɨȈƹʍɽȈȶǼ factors are lower net financing income arising from multiple downward revisions of the overnight policy rate (OPR) by Bank Negara Malaysia (BNM) ; the recognition of modification loss due to the blanket moratorium exercise and t a r ge t ed r epayment a s s i s t ance p r o g r amme ; a n d p r e - emp t i v e impairment provision in consideration o f t h e ch a l l e n g i n g e c o n omi c environment. Howe v e r , i n ke ep i ng w i t h ou r c omm i t me n t t o Va l u e - b a s e d Intermediation (VBI), we were able to effectively integrate various aspects of social finance such as zakat, waqf and sadaqah into supporting the vulnerable customers, including the Small and Medium Enterprises (SME). In addition, during the year under review, retail financing soared to an all-time high at ĄÃѷѴӝѷ ƹȈȢȢȈɁȶӗ ѴѴӝѴՐ ȃȈǼȃljɨ ɽȃƃȶ ʥȃƃɽ ʥƃɰ ƃƺȃȈljʤljǁ Ȉȶ ѵѳѴѼӝ ѵѳѵѳ ʥƃɰ ƃȢɰɁ ƃ ʰljƃɨ ʥȃljȶ ƹʍɰȈȶljɰɰ (globally) focus on sustainable and green financing solutions increased. At Bank Islam, our Green Financing also recorded ƃ ɥɁɰȈɽȈʤlj ѵѺՐ Ȉȶƺɨljƃɰlj ƺɁȴɥƃɨljǁ ɽɁ the previous year, whereby the Bank’s flagship social finance initiative, Sadaqa House, encouragingly collected more ɽȃƃȶ ĄÃѹ ȴȈȢȢȈɁȶ Ȉȶ ƺɁȶɽɨȈƹʍɽȈɁȶɰ ɰȈȶƺlj Ȉɽɰ Ȣƃʍȶƺȃ Ȉȶ ѵѳѴѻӝ REVENUE ӯǁljƺɨljƃɰlj љӝћՐӰ ě‰K ŽÃÃKAŽ ěK ě ȶ ě ‰ ÇA ŽÇ їѕїѕ Ś Č ěÝ KÇČĩĄK Č yKěť ÇA ĀĄÝAĩ:ěŽřŽěť Ýy ÝĩĄ PEOPLE; ENHANCE ACCESS ěÝ ÝĩĄ ČݸĩěŽÝÇČ ŽÇ K ȎÇ{ yŽÇ Ç:Ž ¸ 9ĩĄAKÇ ÇA ‰ ĄAȉŽĀČ Ýy ÝĩĄ :ĩČěÝÃKĄČӢ à ŽÇě ŽÇ ĄÝ9ĩČě 9 ¸ Ç:K ȉKKě ÇA ĀĄKČKĄřK ě‰K ř ¸ĩK Ýy ÝĩĄ 9ĩȎÇKČČ yÝĄ 9Ýě‰ ÝĩĄ ȉ ĄK‰Ý¸AKĄČ ÇA :ĄŽěŽ: ¸ Čě ¶K‰Ý¸AKĄČӝ RM 3.5 BILLION 14 MESSAGE FROM THE CHIEF EXECUTIVE OFFICER