Bank Islam Integrated Annual Report 2022

GROWTH OPPORTUNITIES Opportunities Our Approach Greater awareness of Socially Responsible Investments (SRI) and ESG portfolio As a responsible financial intermediary, the Bank explored value creation and promoted sustainability initiatives in new business areas. To increase the take-up rate of green technology products, we grew our ESG portfolio through hybrid and electric vehicle financing, and solar panels within home financing packages to offer a sustainable cost-effective energy solution. The Bank also pursues a financial inclusion by empowering first-time homebuyers to obtain financing through Skim Rumah Pertamaku (SRP) & First Time Homebuyers Scheme. KEY RISKS & CHALLENGES Risks & Challenges Mitigation Strategies Challenging economic outlook with the rise in inflation, provision, and post-pandemic COVID-19 impacts Focused and sustained our secure payment financing (package employers; ASB financing; government sectors and professional associations). We maintained our asset quality with an agile strategy of enhancing the collections process and recovery intensity. Digital competition is expected to intensify in 2023 with new digital bank offerings to launch We expect to commence digital consumer credit card onboarding with the delivery of FOS (Phase 2) while streamlining our systems and operations to prepare for the mid-to long-term digitalisation play. OUTLOOK AND STRATEGIC PLANS Short-Term We will focus on secured payment financing for retail assets to rebalance our portfolio and extend our product penetration into relevant target segments, particularly Professionals. To increase our reach and market coverage, we will also pursue growth in the underserved market sector (i.e., non-Bumi). The Bank will continue to expand its secured payment financing, including working with package employers, the public sector, and professional associations. Our strategic partnership with Yayasan Pembangunan Ekonomi Islam Malaysia (YaPEIM) will launch a new business line by introducing Gold Investment Products under our Ar-Rahnu portfolio. Medium- to Long-Term In line with our 2023 strategic intent to adopt a segment-led approach, we will promote our Young Graduate proposition with a structured, packaged approach to nurture this emerging mass affluent segment over its lifecycle. We will also continue to optimise our data analysis efforts to identify value-creation opportunities, such as performance analysis of business insights to understand customer demands and formulate effective business strategies. To decrease turnaround time and enhance the overall customer experience, we will re-evaluate appropriate specifications to develop a straight-through application for the disbursement procedure. Integrated Report 2022 74 BUSINESS REVIEW Consumer Banking

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