Page 33 - Full Book_24.4.2021

In Retrospect

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The Will to Suceed

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Resiliently responding to the year’s challenges, our subsidiaries leveraged strong
fundamentals to chart significant achievements. The Bank Islam Group’s
(“Bank Islam” or “the Bank”) assets portfolio quality remained strong,
recording a lower gross impaired financing ratio than the banking system, Achieving a Leading Repute
at 0.67%. Net financing remained robust at 10.5% year-on-year (“Y-o-Y”)
growth, and the Total Capital Ratio was a strong 19.8%. Riding on these results,
Bank Islam had been reaffirmed as AA3/Stable/P1 by RAM Ratings in 2020. |
[198301002944 (98127-X)]
Syarikat Takaful Malaysia Keluarga Berhad (“Takaful Malaysia”) sustained PBZT
its market-leading position in the Family Takaful business with a 23% market
share. It maintained the second largest market share in the General Takaful RM 728.2 MILLION Paving the Way for a Sustainable Future
business, recording a 2% increase in PBZT of RM426.8 million and a 14%
increase in total assets to RM11.8 billion during the year under review. NET FINANCING

BIMB Securities Sdn. Bhd. (“BIMB Securities”) grew its Retail Dealing income 10.5%
in 2020 with an increase of 264% in Gross Brokerage (including Remisiers)
as compared to 2019. The Company also continued to improve its income
generation from the Non-Dealing activities, in line with the target to increase
the fee-based income, with a 26% increase in the year under review. However, 29
Institutional Dealing business remained to be uncertain with Institutional
investors in the likes of Government-Linked Investment Companies (“GLIC”)s
and Government-Linked Companies (“GLC”)s shifting their portfolios into the
Global equities and fixed income that resulted in a 27% decline in brokerage
revenue in 2020. The Company recorded a smaller Loss Before Zakat and Tax
(“LBZT”) of RM2.36 million as compared to the LBZT of RM3.94 million recorded
in 2019. Adhering to the Best Governance Practices
[198401019089 (131646-K)]
Both Bank Islam and Takaful Malaysia continued to be recognised with industry PBZT
awards and recognitions that reflect the maturity they have attained in their RM
respective businesses. These are clear indications that they are capable and ready 426.8 MILLION |
to forge their paths of strength and progress as independent entities.
2%
More details on the financial performance of Bank Islam, Takaful Malaysia and
BIMB Securities are noted in the Management Discussion and Analysis section from
page 81 to 88. Laying the Foundation for Financial Growth

CONTINUED DIVIDENDS FOR OUR SHAREHOLDERS

With BHB’s healthy after-tax Return on Equity (“ROE”) at 12.8%, earnings per
share were solid at 40.21 sen though lower when compared to FY2019’s 44.75 |
sen. Net asset per share improved to RM3.63 at the end of 2020 compared with
RM3.34 in 2019.

We continue to uphold a dividend pay-out policy of at least 50% of net profit
attributable to its ordinary shareholders. Whilst the Board believes in rewarding [199401004484 (290163-X)] Additional Information & Disclosure Summary
the Company’s shareholders with a steady return on their investment, the Board
is also mindful of retaining adequate reserves for the Company’s future growth. GROSS BROKERAGE (RETAIL)

On 30 November 2020, the Board declared an interim dividend of RM225.9
million or 12.60 sen per ordinary share in BHB for 2020, of which approximately 264% |
9% or RM 20.4 million was distributed as cash dividend. The remaining 91%
amounting to RM205.5 million was reinvested to subscribe for 60,986,700 new
ordinary shares at RM3.37 each via the Dividend Reinvestment Plan. 24 th AGM Information