Bank Islam Integrated Annual Report 2020

1. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION The Bank is principally engaged in Islamic banking business and the provision of related financial services. The principal activities of its subsidiaries are as disclosed in Note 13 to the financial statements. The Bank is a limited liability company, incorporated and domiciled in Malaysia. The address of its registered office and principal place of business is as follows: Level 32, Menara Bank Islam No. 22, Jalan Perak, 50450 Kuala Lumpur. The immediate holding company of the Bank is BIMB Holdings Berhad, a public limited liability company incorporated in Malaysia and is listed on the Main Board of Bursa Malaysia Securities Berhad. The ultimate holding entity is Lembaga Tabung Haji (“LTH”), a hajj pilgrims’ funds board established under the Tabung Haji Act, 1995 (Act 535). The consolidated financial statements comprise the Bank and its subsidiaries (together referred to as the “Group”). These financial statements were approved by the Board of Directors on 26 March 2021. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The accounting policies set out below have been applied consistently to the periods presented in these financial statements and have been applied consistently by Group entities, unless otherwise stated. 2.1 Basis of preparation (a) Statement of compliance The financial statements of the Group and of the Bank have been prepared in accordance with the applicable Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards (“IFRS”), the requirements of Companies Act 2016 in Malaysia and Shariah requirements. This is the first set of the Group’s and of the Bank’s annual financial statements in which the impact of COVID-19 (“pandemic”) was considered. The Government has introduced certain measures to assist customers experiencing temporary financial constraints due to the pandemic. The key measures affecting regulatory and accounting treatment and classifications are as follows: (i) Moratorium repayment on financing: • • The Bank has granted an automatic repayment moratorium on all individuals’ and small-medium enterprises’ (“SMEs”) financing (except for credit card balances) for a period of six months from 1 April 2020. The automatic moratorium applied to financing not in arrears exceeding 90 days as at 1 April 2020 and denominated in Malaysian Ringgit. This measure is extended beyond 1 October 2020 to viable customers on a case-to-case basis. • • For credit card balances, the Bank offered the option to convert the balances to term financing. • • For corporate customers, the Bank granted assistance through repayment moratorium or additional working capital or rescheduling and restructuring of existing facilities. This is to enable viable corporations in preserving jobs and resuming economic activities when conditions stabilise and improve. The financial impact of the moratorium repayment is disclosed in Note 2.17. BANK ISLAM MALAYS IA BERHAD INTEGRATED ANNUAL REPORT 2020 199 NOTES TO THE FINANCIAL STATEMENTS for the financial year ended 31 December 2020