2. Value-based Culture In 2023, we focused on strengthening the organisation’s culture and driving sustainable behavioural change across all staff levels, affirming our commitment for a workplace culture that reflects our shared values. We launched a comprehensive Behavioural Study in January 2023 to better understand and shape organisational culture through effective interventions to integrally change behaviour. The initiative aimed to dissect the corporate psyche and pinpoint factors influencing staff behaviour by applying behavioural science principles. This effort supports us in building effective risk management to prevent future undesired behaviour, and in doing so, staying ahead of regulatory requirements. Our risk and compliance culture are bolstered by ongoing training and awareness programmes encompassing root cause analysis, operational risk management, and Shariah risk awareness. The update of Group policies and the introduction of frameworks like the Partnership Model and Learning Deliverables & Effectiveness frameworks have been instrumental in enhancing compliance and ethical leadership across the Bank. On preparing our people to be future-ready, we conducted the Future Skills Study in January to identify and cultivate the skills needed to further drive the Bank’s strategy. The high completion rate of Individual Development Plans (IDPs) by 93% of our employee is a testament to our commitment to self-improvement and skill development. We also conducted two BITI-Pulse surveys to gain insights on employee perceptions and engagement level, allowing us to take actionable steps for improvement. These surveys explored themes on enabling environment and infrastructure, Diversity, Equity and Inclusion (DEI), work-life balance, mental resilience, flexible working arrangement and integrity. The overall positive responses for both pulse surveys were encouraging at 78% with a bank-wide response rate of 72%. The year’s Employee Engagement Index (EEI) stood at 78%, signifying strong alignment of employees’ personal values with Bank Islam’s initiatives for shaping the future of work in the organisation. The high completion rate of Individual Development Plans (IDPs) by 93% of our staff is a testament to our commitment to self-improvement and skill development. 1. Sustainable Prosperity The introduction of new investment account funds diversified our financial portfolio. The successful launch of the Ihsan Sustainability Investment Account (ISIA), with a substantial investment amount of over RM1 billion, underscores our aggressive pursuit of asset growth and our commitment to sustainability. Our total assets increased primarily due to growth in financing and investment securities, offset by a decrease in cash and short-term funds. Gross financing, particularly in the Retail sector, experienced growth, reaffirming our strategic market positioning and the strength of our assets quality. Our total deposits and investment accounts also grew, contributing to a solid financial base. Furthermore, our ROE and NFBI ratio exceeded forecasts, thanks to gains from various financial activities. In addition to resilient financial outcomes, we made significant progress in sustainability integration. We continued strengthening our position in green financing, particularly in renewable energy, energy efficiency, waste management, and water sector financing, aligning with the government’s energy transition roadmap. Our capability to draw on deposits and investment accounts has enabled us to offer innovative financing solutions, as evidenced by the successful launch of the ISIA focusing on impact investing aligned with the UN Sustainable Development Goals. By the end of 2023, we had mobilised over RM1 billion of investment fund through ISIA. We aim to be at the forefront of providing clients with Islamic-led alternative funding structures, such as this, that will support clients’ growth and contribute to the nation’s economic agenda. We had mobilised over RM1 billion of investment fund through ISIA. As detailed below, our advancement in the LEAP25 initiative is underscored by progress across our six strategic pillars. 22 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 From the Desk of the GCEO
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