Bank Islam Integrated Annual Report 2022

The banking system recorded healthy liquidity positions, with the aggregate Liquidity Coverage Ratio (LCR) at 154.1% in December 2022 due to sustained deposit growth supporting banks’ lending activities. BIMB’s LCR was above the industry average at 170.4%, which depicted sufficient liquidity and acted as a financial cushion in uncertain economic conditions. BIMB’s capital buffers remained strong, with a total capital ratio of the Group at 19.4% as of the end of December 2022, higher than the industry average, providing the Bank with a better capacity to handle unforeseen losses or financial downturns. BIMB experienced a deterioration in non-fund-based income (NFBI), primarily from higher marked-to-market losses on investment due to surging bond yields and higher forex revaluation losses caused by shifting market conditions. Nonetheless, the Bank’s stronger fees and commission income growth helped to offset the drag in NFBI. Overall, the domestic financial system is well-positioned to support economic recovery. BIMB remains focused on minimising adverse consequences during this period of uncertainty while proactively seeking growth opportunities. BIMB’s capital buffers remained strong, with a total capital ratio of the Group at 19.4% as of the end of December 2022, higher than the industry average, providing the Bank with better capacity to handle unforeseen losses or financial downturns. Green Financing portfolio grew to RM2.9 billion (2021: RM2.2 billion) OUR SEGMENTAL PERFORMANCE: KEY HIGHLIGHTS AND ACHIEVEMENTS BIMB's strong performance during the reporting year is reflected in the progress achieved across our various business segments, showcasing the effectiveness of our strategy and customer-centric approach. The Consumer Banking division saw significant growth in 2022, with a 9.3% increase attributed to the post-pandemic economic recovery and improved employment rates. This division is committed to helping lower-income customers achieve their dream of homeownership, and the innovative Home Financing-i with Bullet Payment plan has made it easier for customers to acquire residential properties with enhanced payment options, lower commitments, and broader financial eligibility. As part of our commitment to sustainability, Consumer Banking also introduced House Financing for Solar Panels and Hybrid & Electrical Vehicle (HEV) Financing, with RM17 million disbursed for 127 HEVs in 2022. With an increased penetration in the Non-National Vehicle portfolio of RM143.6 million, Consumer Banking remains dedicated to providing innovative and sustainable solutions for its customers. See page 70 for more information. Corporate and Commercial Banking segments focused on providing excellent customer service and tailored solutions to meet the unique needs of their clients. Despite the challenges posed by the pandemic, Corporate and Commercial Banking have actively captured and retained quality corporate customers by providing bespoke financing solutions and banking services tailored to their unique needs. Guided by the “Think Customer” Value, the segments responded quickly to accommodate customers’ requests for financing moratoriums and financial assistance to alleviate the pandemic’s impact. The segments have also utilised innovative non-fund-based instruments such as BG-i to structure facilities, improved its offering, and championed the Bank Guarantee issuance for faster turnaround times. By focusing on strategic sectors with increasing demand, Corporate Banking recorded a 36.1% asset growth to RM9.6 billion and a total gross income of RM298.5 million, with RM287.9 million from Fund-Based and RM10.6 million from Non-Fund-Based. In comparison, Commercial Banking saw a decrease in total assets by RM190.5 million (2.7%) to RM6.95 billion compared to 2021. However, there was an Integrated Report 2022 20 Group Chief Executive Officer Statement

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