GROWTH OPPORTUNITIES Opportunities Our Approach 1. Increase in share margin financing request by shareholders of public listed companies (PLCs) and high-net worth clients 1. Provide attractive rates and speed in processing of financing 2. Increase in Shariah Advisory services 2. Increase Shariah funds and maintain good rapport with Shariah Advisory clients while capturing other segments such as PLCs that require Shariah Advisory services 3. Increase in visibility to Institutional clients – BIMB recorded an improvement in gross brokerage of 6% in 2022 compared to 2021 3. Increased stock coverage to 60 by end of 2022 compared to 36 in December 2021 OUTLOOK AND STRATEGIC PLANS In 2023, BIMB Securities is bracing for a challenging year due to the anticipated increase in interest rates. However, we remain optimistic about the future and if the expected reduction occurs in the following year, we will consider returning our liquidity into equities. We are committed to increasing our overall visibility by enhancing our stock coverage to 100 and improving the quality of our reporting by the end of 2023. This will help us attract more clients in the Upper Tier 2 bracket and increase our visibility with Institutional clients. Additionally, through our Wealth Management platform, we plan to target 200-300 quality clients from BIMB Branches and Regional Offices. To capture more fee-based income, we are exploring Bank-wide offerings such as underwriting and placement income. We also intend to leverage BIMB’s Group Institutional Banking capabilities to co-service GLC clients. Our commitment to innovation is demonstrated by the development of a comprehensive mobile application platform with new features such as Chart Nexus Stock Alert. Internally, we are automating certain processes such as trading limits in ECOS and BTX via iTradeSS and automatically sending of dormant account notices to clients. We are also partnering with regional brokers to offer foreign trading services to all Institutional clients and provide regional coverage for selected sectors. ESG is anticipated to dominate investment strategies in the years ahead and investors will be heavily influenced by the geopolitical concerns in a dynamic and often volatile, global environment. BIMB Securities aspires to become an established Top 10 broking partner for GLICs and GLCs and target to obtain an Upper Tier 2 ranking as an EPF investment platform. Additionally, we are considering to establish a CF team within the Group’s Institutional Banking Division to work alongside the Bank in providing Corporate Finance (CF) and Equity Capital Markets (ECM) services. Finally, we shall also explore the niche and feasibility of becoming a fully Shariah-compliant investment bank. Management Discussion & Analysis Bank Islam Malaysia Berhad 107 01 05 03 07 02 06 09 04 08
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