Page 74 - Full Book_24.4.2021

MANAGEMENT
DISCUSSION & ANAlYSIS

Easing financial burdens of customers

During the year, the Bank and Takaful Malaysia were among
the first to announce and implement loan moratoriums,
repayment assistance and premium payment deferments
for customers and businesses who were economically
affected by COVID-19 or the MCO regulations.
These initiatives were part of the Group’s efforts to protect
INTEGRATED ANNUAL REPORT 2020 time.
our customers’ financial security during this exceptional

The Bank has assisted more than 350,000 individuals
and businesses impacted by the COVID-19 pandemic
through financial relief assistance with financing amount
outstanding of approximately RM37.9 billion, from 1 April
to 31 December 2020. The targeted repayment assistance
for those who have lost their employment or have a reduced
monthly income, has been extended to 30 June 2021 and
communication with parties are on-going to determine the
70 best assistance going forward.
RESPONSIBLE Takaful customers were offered a COVID-19 Relief
FINANCE
Programme that provided a deferment period of
BIMB HOLDINGS BERHAD 199701008362 (423858-X) Results impacted by pandemic measures Takaful participants with difficulties meeting their regular
three months to pay the regular premiums of their life
insurance policies or Family Takaful certificates. Family
contributions were provided alternatives to either discuss
their repayment options, choose to reduce their sum
covered or remove some add-on riders to reduce their
BHB posted a Group Profit Before Zakat and Tax (“PBZT”) of
regular contribution amounts. Instalment plans were
RM1.1 billion for the financial year ended 31 December 2020
offered to selected General Takaful corporate clients to
(“FY2020”). The impact of lower net financing income arising from
alleviate the financial burdens of those who faced short-
multiple downward revisions of the Overnight Policy Rate (“OPR”),
the recognition of modification loss due to moratorium exercise and
targeted assistance programme and pre-emptive impairment provision
in consideration of the challenging economic environment caused the term financial liquidity issues.
Group PBZT to be RM107.7 million lower than the same period in The Group fosters responsible
2019. Net profit declined RM67.5 million to RM867.9 million, however
the Group’s after-tax Return on Equity (“ROE”) remained healthy at environmental protection
12.8%, while earnings per share valued at 40.21sen. Group net assets to reduce the impact of our
per share improved to RM3.63 as of 31 December 2020, compared to
RM3.34 as of 31 December 2019. business operations on the
Notwithstanding the reduction in revenue and profits, the Group environment, as well as
was steadfast and proactive as a responsible corporate citizen in tactically integrate sustainability
implementing government mandated supportive measures, providing
aid to the communities in need, and innovating new products and into our subsidiaries’ business
services to meet new needs through our main subsidiaries. Throughout
the period, we continue to communicate important information operations in an economically,
and measures related to public safety and operations via targeted environmentally, and socially
communiques to customers and business partners. The information
was also made available on the respective subsidiaries’ corporate sustainable manner.
websites, online portals and social media platforms. Our customers
and business partners continued to enjoy uninterrupted access to our
selected essential services during the phased lockdowns.