Bank Islam Integrated Annual Report 2020

SCOPE AND BOUNDARY This Integrated Annual Report (IAR) is produced and published annually and covers our financial and non-financial performance ǹɁɨ ɽȃǉ ɨǉɥɁɨɽȈȶǼ ɥǉɨȈɁǁ Ɂǹ Ѵ °ƃȶʍƃɨʰ ѵѳѵѳ ɽɁ ѶѴ Aǉƺǉȴƹǉɨ ѵѳѵѳ ʍȶȢǉɰɰ ɁɽȃǉɨʥȈɰǉ ɰɽƃɽǉǁӝ The report provides a complete and balanced review of primary activities of the Group, namely our overall performance and the delivery of our initiatives towards achieving our goals, providing material information relating to our strategy and business model, operating environment, material risks, stakeholder interests, performance, governance and prospects. The boundary of the report extends beyond financial reporting and includes non-financial performance, opportunities, risks and outcomes attributable to/or associated with our key stakeholders, which have a significant influence on our ability to create value. MATERIALITY This report aims to disclose information about matters that substantively affect our ability to create value over the short, medium and long-term and to delivering on our core purpose. A thorough assessment on material issues to Bank Islam was ƺɁȶǁʍƺɽǉǁ Ȉȶ ѵѳѴѼӝ ÃƃɽǉɨȈƃȢ Ȉɰɰʍǉɰ ʥǉɨǉ ȈǁǉȶɽȈǹȈǉǁ ƹƃɰǉǁ Ɂȶ an evaluation of how we create value, the impact of the external operating context on the value creation, the material interests of our stakeholders and the principal risks facing the Group. These material issues were then evaluated, prioritised and included under the material matters of our parent company, BIMB Holdings Berhad (BHB). The content of this report focuses on the issues, opportunities and challenges that are material to both our stakeholders and our business, which consequently impacts our performance. By applying the principle of materiality into our reporting disclosures, we present vital topics that influence the Group’s strategy in creating long-term value for our key stakeholders. OUR CAPITALS Our relevance today and in the future, and our ability to create long-term value are interrelated and fundamentally dependent on the forms of capital available to us, how we use them, our impact on them and the value we deliver. In our reporting, key content elements, including Capitals, are represented by navigational icons for easy reference of users and to reflect the interconnectivity and interdependencies between the content elements. REPORTING FRAMEWORKS Bank Islam’s integrated reporting process, as well as the contents of this report are guided by the principles and requirements of the following: • International Integrated Reporting Framework (IIRF) • Malaysian Code on Corporate Governance (MCCG) by Securities Commission Malaysia • :ɁȴɥƃȶȈǉɰ ƺɽ ѵѳѴѹ • Bank Negara Malaysia Corporate Governance Policy Our financial statements for the Financial Year Ended ѶѴ Aǉƺǉȴƹǉɨ ѵѳѵѳ ȃƃʤǉ ƹǉǉȶ ɥɨǉɥƃɨǉǁ Ȉȶ ƃƺƺɁɨǁƃȶƺǉ ʥȈɽȃӖ • Malaysian Financial Reporting Standards (MFRS) • International Financial Reporting Standards (IFRS) • :ɁȴɥƃȶȈǉɰ ƺɽ ѵѳѴѹ • 9ƃȶȟ ÇǉǼƃɨƃ ÃƃȢƃʰɰȈƃ ĀɁȢȈƺʰ AɁƺʍȴǉȶɽɰ ƃȶǁ {ʍȈǁǉȢȈȶǉɰ • ɰȢƃȴȈƺ yȈȶƃȶƺȈƃȢ ČǉɨʤȈƺǉɰ ƺɽ ѵѳѴѶ CORPORATE BOOK CONTENTS • Provides a comprehensive overview of the Group’s ɥǉɨǹɁɨȴƃȶƺǉ ǹɁɨ ѵѳѵѳ ƃȶǁ ɽȃǉ ɁʍɽȢɁɁȟ ǹɁɨ ѵѳѵѴ REGULATIONS COMPLIED • :ɁȴɥƃȶȈǉɰ ƺɽӗ ѵѳѴѹ • Bank Negara Malaysia Corporate Governance Policy • ÃƃȢƃʰɰȈƃȶ :Ɂǁǉ Ɂȶ :ɁɨɥɁɨƃɽǉ {Ɂʤǉɨȶƃȶƺǉ ѵѳѴѺ ABOUT THIS REPORT