2022 has been another year of strong financial performance for BIMB, despite the persistent market uncertainties and volatility. Our solid growth is partly attributed to the OPR hikes implemented by Bank Negara Malaysia (BNM), which we could leverage due to our highest floating rate financing ratio in the industry. Additionally, we pursued new business opportunities by directly engaging with various professional bodies, further diversifying our portfolio. As a responsible financial institution, we also prioritised engaging with customers facing difficulties servicing their financing, offering options for restructuring or rescheduling their financing terms. These efforts aim to ensure the sustainability of our profitability and income as we move forward with our LEAP25 Strategy. SEGMENTAL PERFORMANCE BIMB's business segments recorded solid performance in FY2022, reflecting our strength across the Group. Consumer Banking reported a net income of RM1.4 billion, a 12.2% increase from the previous year, mainly driven by higher net fundbased income and non-fund-based income. Corporate and Commercial Banking recorded a net income of RM531.8 million, a 28.0% increase, mainly due to higher net fund-based income. Treasury's net income, however, decreased by 81.9% to RM43.7 million due to lower net gain from the sale of financial assets at FVOCI, higher net loss from foreign exchange transactions, and higher net loss on revaluation of financial assets at fair value through profit or loss (FVTPL). Nonetheless, the segment's assets remained strong at RM21.9 billion. SOLID FINANCIAL POSITION Our total assets increased by RM9.7 billion, reaching RM89.9 billion, driven by increased net financing and financial assets at amortised cost. Despite the challenging economic conditions, our gross impaired financing ratio remained low at 1.27% while our net impaired financing ratio improved significantly to -0.32%, reflecting our commitment to maintaining a healthy credit portfolio. Our deposits from customers and investment accounts also increased by RM7.4 billion to reach RM75.2 billion, a testament to the trust and confidence placed in us by our valued customers. Although our current, savings and transactional investment accounts (CASATIA) ratio decreased to 36.8%, we remain committed to maintaining a strong liquidity position. We also recorded a slight increase in our equity to RM6.8 billion, mainly contributed by the current period profit and increased share capital from Dividend Reinvestment Plan (DRP). Additionally, our Total Capital Ratio also increased to 19.4%, reflecting our strong capital position. KEY FINANCIAL PRIORITIES We maintain high-quality assets, resulting in a low Gross Impaired Financing ratio and requiring less provision. As of 31 December 2022, our gross impaired financing ratio was 1.27%, which remains better than the industry average of 1.7%. We closely monitor our Cost-to-Income Ratio, which deteriorated to 59.8% YoY due to various factors. These challenges include Foreign Exchange (FX) revaluation loss, unit trust revaluation loss, and lack of opportunity to monetise investment papers amid the increasing interest rate environment, all of which are in line with the economic and market landscape. Additionally, we incurred elevated costs due to our investment in new capabilities and infrastructure for future revenue uplift, including higher IT-related expenses of RM14.5 million (+12.4%) compared to FY2021. However, the benefits of these investments will be seen in the next two to three years. 1 2 Quality of Assets Cost-to-Income Ratio Integrated Report 2022 28 Financial Review by the Group Chief Financial Officer
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