SUSTAINABLE PROSPERITY Produce strong financial results for the bank. Focus on value-based businesses, products, or growth sectors. Increase fee-based business activities to improve profitability metrics. Preserve sustainability. Commit to a cost management and optimisation programme. Key Priorities Gained Board approval for the climate-adjusted credit risk report, enabling business units to identify high-risk customers and sectors. Established baseline data for Scope 1 and Scope 2 greenhouse gas emissions, a foundational step towards measuring and managing our environmental impact. Empaneled 29 new housing projects nationwide in December 2023, bringing the total to 599 new housing projects approved since January 2023. Leveraged Package Employer (Healthcare) communication channels to promote Personal Financing. This resulted in a total of 3,921 New Originations Agreements (NOA), amounting to RM485.89 million in Terms of Service (TOS). Launched My Dream Home Campaign 3.0. Launched 17 campaigns and 11 new products for Wealth Management business. Launched ISIA to deliver positive social and environmental impact through social finance. Collaboration with associations to increase the total number of non-Bumiputera customers. Launched the SMEXpert Lead Generator Campaign. Achieved a total of RM4,487.67 million in approved green financing by December 2023, a significant increase from RM2,921.7 million in December 2022. Performance Metrics 2020 2021 2022 2023 Total Assets (RM billion) 74.6 80.2 89.9 91.0 Total Capital (RM million) 8,352 8,741 9,131 9,871.0 Net Fund-Based Income (RM million) 1,580.9 1,831.6 2,078.8 2,070.0 Non-Fund-Based Income (RM million) 532.8 357.3 231.1 406.6 Gross Impaired Financing (RM million) 373 568 835 636.0 Total Deposits & Investments Accounts (RM billion) 63.4 67.8 75.2 76.1 Carbon Emissions (tCO2e) N/A 11,914.4 12,262.4 12,279.5 * Total Carbon Emissions in 2021 and 2022 have been restated due to the expansion of operational boundaries. Performance & Achievements Embedded ESG parameters into scoring models for both retail and non-retail. Initiated the implementation of ESG framework, which includes Climate Change and Principle-based Taxonomy (CCPT) classification and Credit Risk Solution Platform (CRiSP) enhancement with ESG data. Focused on customer engagement strategies to facilitate transitioning towards lower climate risk profiles. Expanded partnerships with housing developers, education, healthcare and medical sectors. Expanded coverage beyond solar to include waste management, water, utilities, and other renewable sectors, extending our sustainability focus. Initiatives Outlook & Future Priorities Maintain a focus on customer-centricity amidst evolving market conditions, employing innovative strategies to attract and retain funds. Explore new business models such as embedded finance. Drive the realisation of business model traction and impact through operating models in Group Institutional Banking (GIB) and Group Retail Banking (GRB), emphasising revenue uplift and value creation. Promote responsible growth by balancing profitability and asset growth. Take proactive measures for recovery, minimising losses, and strengthening long-term relationships beyond revenue generation. Foster purposeful sustainable impact by increasing traction in sustainability adoption and offering sustainability-based products and services, while embedding climate risk considerations into business operations. 62 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023 Strategic Performance Review
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