At BIMB, we have proactively promoted our ESG capabilities, spearheading a Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF) Sectoral guide on waste management, which places us ahead of other industry peers. Our efforts have not gone unnoticed. In 2022, we were honoured with four prestigious awards at The Asset Triple A Award ceremony, including The Best SRI Sukuk as Principal Adviser, Lead Arranger, Lead Manager, and Shariah Adviser. Our subsidiary, BIMB Investment Management Berhad (BIMB Investment), was named ESG Asset Manager of the Year for the third time. At the Sustainability & CSR Malaysia Awards 2022, organised by CSR Malaysia, BIMB was recognised for Long-Standing Excellence in Sustainability and Bank of the Year (Islamic Banking) for Excellence in Flood and COVID-19 Relief Efforts. These accolades are a testament to our unwavering commitment to sustainability and social responsibility. CREATING TRUST AMONGST OUR STAKEHOLDERS BIMB’s practice of stakeholder economy is centred on creating value for all stakeholders. As a responsible and credible bank, we are committed to serving the needs of our customers, employees, communities, and shareholders. We recognise that employees are key to our success and growth. To future-proof the workforce, the Bank has implemented several measures to ensure that employees have the necessary skills and knowledge to co-evolve with the bank. This year, we launched BIMB’s Digital Academy, a one-stop centre for our employees to access learning programmes grounded in practical application to real-world business challenges. Our learning pathways guide their upskilling journey, and we also provide them with references to subject matter experts in digital capabilities and updates on the latest digital skill courses. Additionally, we remain steadfast in empowering communities, as reflected in LEAP25’s strategic theme of “Enriching Communities”. Our social initiatives to provide financial access and support to underserved communities through the Sadaqa House charity fund is a testament to our commitment to financial inclusion. We have set a target to channel RM1 billion in funds into Sadaqa House Orphan Fund by 2040, enabling us to support orphans from cradle to graduation. Since 2018, Sadaqa House had raised RM17.4 million in funds, benefitting 16,009 beneficiaries. While we focus on creating value for all stakeholders, we also maintain our commitment to delivering sustainable and strong returns to our shareholders. We are pleased to report that our shareholders have shown their trust and support by reinvesting their dividends into the bank through our Dividend Reinvestment Plan (DRP), with an almost 90% participation rate. This demonstrates their confidence in our business and our ability to deliver long-term value. OUTLOOK & ACKNOWLEDGEMENTS Despite the challenges from 2022 spilling over into the upcoming financial year, BIMB is confident in the country’s diverse economic structure and sound fundamentals to cushion growth headwinds in 2023. While a slowdown is inevitable, timely policy interventions can mitigate its impact. However, a moderation in global economic growth coupled with a higher interest rate environment may slow growth momentum and weigh on Islamic Banks’ asset quality in 2023. Nonetheless, BIMB has ensured adequate impairment provisioning levels to manage asset-quality deterioration. Given the improving labour market and still-expanding economy, the growth rate is expected to outpace Conventional Banking performance, with GDP projected to grow by 4.5% during the year. The Board will continue to guide the Group to remain on track with our transformation strategy. BIMB will remain flexible and agile in a dynamic market. The focus will be on building digital capabilities to become a customer-centric digital bank that offers seamless and innovative products and services. We will also use our financial strength to influence positive environmental and social outcomes towards a sustainable future. In closing, I would like to express my gratitude to all our stakeholders for their unwavering support. I would like to extend a special thank you to Encik Ridza, our longest-serving board member, for his invaluable contributions to the Bank over the years. We are also grateful to Dato’ Sri Khazali for his guidance during the chairmanship of the Board Nomination and Remuneration Committee (BNRC). I would also like to welcome the latest addition to our Board of Directors, the esteemed Dato’ Prof Dr Noor Inayah Yaakub. As our newest Independent Non-Executive Director, she brings a wealth of knowledge and experience to the table. With her appointment, we have made significant progress towards our goal of greater gender diversity, with women now making up 30% of the Board. TAN SRI DR ISMAIL HAJI BAKAR Chairman Integrated Report 2022 18 From the Desk of the Chairman
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