BIMB’s commitment to sustainability extends to two key areas: the sustainability of our business and the sustainability of the environment and society. We remain focused on delivering long-term financial value as we progress towards a prosperous and sustainable future. In 2022, we surpassed expectations with a 6.1% increase in Profit Before Zakat and Tax (PBZT) year-over-year. Our star products, Personal Financing and Home Financing, experienced impressive growth of 9.6%. We are proud to report that our SME portfolio outperformed our target by a remarkable 70.7%, thanks to the tireless efforts of our dedicated sales force and their approach towards targeted sectors. Our sustained ROE of 11.3%, Return on Assets (ROA) of 0.9%, and asset growth and net financing growth of 12.1% and 11.6%, respectively, demonstrate our continued dedication to excellence. Additionally, we achieved a Current, Saving and Transactional Investment Account (CASATIA) ratio of 36.8% and a NIM of 2.31%. Despite a 35.5% decline (at Group level) in NFBI due to losses in Unit Trust, Forex, and investment, we are delighted to see higher income from eChannels and Bancatakaful in our Consumer Banking sector, resulting in higher NFBI by 22.8% year over year. Our GIF ratio remains well below industry standards at 1.27%, and our LCR is well above the regulatory requirement of >100% at 170.4%. While our CIR increased to 59.8%, we are actively making progress on cost management. Sustainable Prosperity: Continuous Sound Financial Performance 1 PROPELLING OUR STRATEGIC TRANSFORMATION BIMB has been actively working towards its LEAP25 targets, which are focused on being the bank that advances prosperity for all and provides solutions that deliver value. This five-year roadmap aims to deliver the promise of technology and redefine growth while addressing unprecedented challenges. By 2025, the Group aspires to be a champion in offering ShariahEnvironmental, Social, and Governance (ESG) total financial solutions with leadership in digital banking and social finance. Two years into LEAP25, we have made significant progress and are on track to achieving our 2025 targets, including more than doubling ESG-rated financing assets with a green financing portfolio of RM2.9 billion, creating impact for over 10,545 beneficiaries through social finance, and improving employee engagement and change readiness index to 88%. While sustaining an ROE was 11.3%, LEAP25 aims to increase NFBI contribution and reduce CIR to below 50% by 2025. Our progress and achievements in LEAP25 are based on the strides made in our six key strategic pillars, as elaborated below. In addition to strong financial results, we made significant headway in our sustainability journey. Within our operations, we continued to improve our environmental footprint through the GoGreen-Energy Efficiency initiative. Under this initiative, we established the country’s first environment-friendly branch in Malaysia, located in Temerloh, Pahang. The green branch uses solar energy as a clean, renewable energy source, installing solar panels on the roof. In addition, it also uses a rainwater harvesting system to collect and reuse natural resources to promote the efficient use of water. As a financial institution, our most significant impact and influence lie in where we channel our money. We are proud to have committed to doubling our green financing growth by 2025. As of 2022, we have approved RM2.9 billion in green financing and are on track to achieve our target. Additionally, we recognise the urgent need to protect our business, customers, and society from social and environmental issues. To this end, we have embedded ESG risk in our risk management framework, marking a significant milestone in our efforts. This year, we have fully implemented the BNM Climate Change and Principles-based Taxonomy (CCPT), assessed the ESG risk and performance of our business financing customers and piloted the inclusion of ESG action plans and criteria in selected financing applications that involve high-risk sectors. Integrated Report 2022 22 Group Chief Executive Officer Statement
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