Page 85 - Full Book_24.4.2021

In Retrospect

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SUBSIDIARIES’ The Will to Suceed

OPERATIONS REvIEW |

Achieving a Leading Repute
PERFORMANCE SUMMARY

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The Bank Islam group’s assets portfolio quality remained strong
as reflected in the low gross impaired financing ratio of 0.67% at
the end of 2020, lower than the 1.57% registered by the banking
system. Total gross impaired financing was RM373.2 million compared to
RM433.0 million at the end of 2019. Paving the Way for a Sustainable Future
As of 31 December 2020, the Bank’s net financing reached RM54.7 billion,
a healthy 10.5% year-on-year (“Y-o-Y”) growth of RM5.2 billion. This is
above the 2020 KPI target of 5%, and was contributed by higher growth
from both consumer and business financing growth at 11.36% and 9.22%
[198301002944 (98127-X)] respectively. In particular, this relates to financing in supply chain for selected
industries/customers within Halal Economy, the Bank continue to replicate 81
successful vendor financing programme business models, such as with vendors of
PETRONAS, TNB, Sarawak Energy and most recently, TM Malaysia.
Customer deposits and investment accounts rose 10.1% or RM5.8 billion Y-o-Y to RM63.4
billion. Total current, saving accounts and transactional investment accounts (“CASATIA”)
composition is at a healthy level of 36.1% of total customer deposits and investment accounts.
With a Total Capital Ratio of 19.8% as of 31 December 2020, the Bank is in a strong capital position
to facilitate the targeted assistance to affected customers, and support continued business growth. Adhering to the Best Governance Practices
At this juncture, Bank Islam has been persevering in producing sustainable financial results
that are within the industry’s average, cognisant of and leveraging on the low-interest-rate
environment. The Bank reported a PBZT of RM728.2 million for the FY2020, 13.7%
lower compared to 2019. The decline was mainly due to lower net financing |
Laying the Foundation for Financial Growth
income arising from multiple downward revisions of the OPR, the recognition
of modification loss due to the moratorium exercise, targeted assistance
programme and pre-emptive impairment provision in consideration
of the challenging economic environment.

Awards and Achievements 2020: |
• Digital Wallet Initiative of the Year (KipleUni Programme) by Asian Banking & Finance 2020
• Strategic Partnership of the Year (eJamin) by Asian Banking & Finance 2020
• Best FPX Bank by Malaysian e-Payments Excellence Awards 2020
• Telekosang Hydro One RM470 Million Asean Green SRI Sukuk – Best Renewable Energy Sukuk – Hydro Malaysia by The Asset Additional Information & Disclosure Summary
Asian Awards 2020 Islamic Finance
• Malaysian Deal of the Year 2019 for Urusharta Jamaah’s RM27.56 Billion Sukuk by Islamic Finance News Awards
• The Strongest Islamic Retail Bank in Malaysia 2020 at the 6 Islamic Retail Banking Awards by Cambridge IFA
th
• Graduates’ Choice Award 2020 for Banking sector organised by Talentbank Award |
24 th AGM Information
• Al-Mansor Excellence in Islamic Financial Services Award at the Islamic Excellence Awards 1441H/2020
• 5-Year RM1.2 billion Syndicated Commodity Murabahah Term Facility by Serba Dinamik