https://www.bankislam.com MATERIALITY AND MATERIAL MATTERS This report aims to disclose information about matters that substantively affect our ability to create value over the short, medium and long-term and to deliver on our core purpose. A thorough assessment of material issues to Bank Islam was conducted in 2022, followed by refinements in 2023, to ensure the list remains current and reflects the evolving landscape. Identification of material issues was based on evaluating how we create value, the impact of the external operating context on the value creation, our stakeholders’ material interest, and the principal risks facing the Group. The content of this report focuses on the issues, opportunities and challenges that are material to both our stakeholders and our business, which consequently impacts our performance. By applying the principle of materiality to our reporting disclosures, we present vital topics that influence the Group’s strategy for creating long-term value for our key stakeholders. For more details, refer to Material Matters on pages 48-55. COMBINED ASSURANCE The 2023 IAR was compiled following strict internal controls and governance protocols. The non-financial data within the report underwent a thorough review and validation by the Group Internal Audit team. PwC Malaysia has also provided external assurance on the financial statements and the pertinent financial information included in the report. FORWARD-LOOKING STATEMENTS This IAR contains certain forward-looking statements regarding Bank Islam’s future performances and prospects. These statements and forecasts are based on current judgments, subject to uncertainties as circumstances evolve. Various factors may cause actual results to differ materially from those expressed or implied by these forward-looking statements, including emerging risks and other factors that might adversely impact our business and financial performance. Therefore, these forwardlooking statements should not be construed as guarantees to Bank Islam’s future performance. APPROVAL BY THE BOARD Bank Islam’s Board acknowledges its responsibility in ensuring the integrity of this IAR, in the Board’s assessment, addresses material issues to the Group’s ability to create value and fairly represents Bank Islam’s performance for the year 2023. This Integrated Annual Report for the Financial Year Ended 31 December 2023 was approved by the Board on 15 April 2024 and signed on its behalf by: Tan Sri Dr Ismail Haji Bakar Chairman CAPITALS FC Financial HU Human MF Manufactured IN Intellectual SR Social and Relationship NT Natural STRATEGIC FOCUS AREAS SP Sustainable Prosperity CE Community Empowerment CC Customer-centricity VBC Values-based Culture RE Real Economy D Digitalisation KEY RISKS CR Credit Risk ITR Information Technology (IT) Risk MR Market Risk SNC Shariah NonCompliance (SNC) Risk LR Liquidity Risk RCR Regulatory/Compliance Risk OR Operational Risk CR Climate-Related Risk STAKEHOLDERS IV Investors CU Customers EM Employees LC Local Communities GR Government and Regulators MATERIAL MATTERS SRF Sustainable and Responsible Finance CESF Community Empowerment and Social Finance CX Customer Experience SSC Sustainable Supply Chain TD Talent and Development CRO Climate Risks and Opportunities GGC Good Governance and Conduct EHS Employee Well-being, Health and Safety DPS Data Privacy and Security DI Diversity and Inclusion EEI Emissions and Environmental Impact UNSDGs
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