3 Total Capital Ratio We have a firm commitment from both the Board and management to sustain any pressure to profit or challenging outlook. As a result, our Total Capital Ratio remained strong at 19.4%, which is above the industry average of 17%-18%. RETURNS TO SHAREHOLDERS BIMB is proud to announce the successful declaration and payment of the First Interim Dividend of 10.40 sen per ordinary share for FY2022, which was disbursed on 30 January 2023 amounting RM224.1 million. Almost 90% of the dividend was reinvested by our shareholders via Dividend Reinvestment Plan (DRP) to subscribe for new ordinary shares which were listed on 31 January 2023. The strong support from our shareholders, for the DRP, speaks volumes about their trust in BIMB. This is further reinforced by the Bank’s unyielding commitment to stability and protection, exemplified by our impressively low Gross Impaired Financing (GIF) ratio of less than 1.3% at the end of 2022. Additionally, our steadfast approach to continuous dividend payment, even with DRP, and a healthy capital ratio despite the challenging times are all testaments to our resiliency. Furthermore, the Bank is pleased to declare a Second Interim Dividend of 3.40 sen per ordinary share for the financial year, bringing the total annual dividend to 13.80 sen per share for a payout ratio of 60%. The entire second interim dividend is applicable for the DRP. As we enter the year 2023, we recognise that we will face potential challenges, such as concerns about inflation and geopolitical conflicts. PERFORMANCE OUTLOOK Metric Short-Term (FY2023) Medium-Term (FY2025) (LEAP25) ROE (based on PBZT) 12%-13% Competitive to industry standard CET1 Capital Adequacy Ratio 13.0% 13.1% Total Capital Ratio 19.3% 19.2% Gross Impaired Financing Ratio <1.6% 1.3% We have identified several key priorities for the year ahead to achieve these targets. Our primary focus is on expanding our portfolio of quality financing assets, with a particular emphasis on SMEs, which we believe present significant growth opportunities. Secondly, we will continue to intensify our efforts to enhance the Bank's digitalisation aspirations, which include improving our mobile app and continuously upskilling our staff to serve our customers better. Finally, we plan to broaden our reach in Institutional Banking, further solidifying our market position. With these priorities in place, we are confident that we will sustain our robust financial performance and continue delivering value to all our stakeholders in OUTLOOK As we enter the year 2023, we recognise that we will face potential challenges, such as concerns about inflation and geopolitical conflicts. Nonetheless, we remain optimistic about our ability to achieve moderate growth supported by strong domestic demand, despite the anticipated slower growth of the global economy. To maintain our growth trajectory, we have set targets for the near to mid-term despite the uncertainties that may arise. 2023 and beyond. We are committed to maintaining our growth trajectory and achieving our targets, and we will remain agile and responsive to any challenges that may arise. AZIZAN ABD AZIZ Group Chief Financial Officer Leadership Insights Bank Islam Malaysia Berhad 29 01 05 03 07 02 06 09 04 08
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