OUTLOOK As we look ahead to 2024, we remain positive about our growth prospects and financial solidity, even amidst anticipated challenges. Our focus will be on identifying and capitalising on strategic market opportunities, while adhering to prudent asset quality management to ensure sustained financial health. Key to our forward-looking strategy is a commitment to capital preservation and thoughtful reinvestment approaches, which are integral to fostering growth and enhancing shareholder value. In parallel, we plan to diversify our client solutions beyond conventional financing, aiming to empower our clients’ financial progress and value creation. This diversification will include innovative options like listing assistance and private equity fundraising initiatives. Furthermore, we aim to augment our non-fund-based income and achieve financing growth that surpasses industry averages, all while upholding exemplary asset quality. We intend to expand our wealth management services and maintain a strong presence in the retail market. Growth in CASATIA, through strategic partnerships and support for cashless transactions, particularly in the retail and SME sectors, will remain a focal point. We also expect better earnings growth with a bigger volume of financing. NIM is projected to stabilise due to continued efforts and expectations that the OPR will stay unchanged in 2024. The main focus will continue to be managing NIM via rebalancing our funding composition. Bank Islam’s financing growth this year will be driven by both the retail and nonretail portfolios. In summary, 2024 is viewed with optimism as we aim to leverage our core strengths, adapt to market dynamics, and continue our trajectory of sustainable growth and financial stability. Performance Outlook Over the Short and Medium-Term Metric Short-Term Medium-Term Return on Equity (based on PAZT) 8.0% 9.0% to 10.0% Cost-to-Income Ratio 58.0% to 59.0% 57.0% Financing growth (year-on-year) 7.0% to 8.0% Gross Impaired Financing Ratio < 1.1% Common Equity Tier I (CET I) Capital Ratio 13.9% 14.2% Total Capital Ratio 20.4% 21.2% 29 1 2 3 4 5 6 7 8 9 www.bankislam.com KEY MESSAGES
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