BIMB Integrated Annual Report 2019

BANK ISLAM: ON STEADY PATH FOR PROGRESSIVE GROWTH Expanded Breadth of Offerings that Drive Sustainability We are committed to delivering relevant products and services that help our customer segments meet their needs for inclusive growth. This is a reflection of our value creating business model with its fundamentals embedded in the Value-Based Intermediation (“VBI”) principles that aims to contribute and impact the real economy while elevating societal needs. For the year in review, Bank Islam continued its focus on green financing, social finance and impacting the real economy by supporting the Small and Medium Enterprises (“SME”). Record-Breaking Profit Performance Bank Islam recorded an increase in net profit of 5.7% to RM627.6 million as revenue rose 9.2% to surpass RM3.6 billion for the first time ever, which contributed to our best profit performance to date. The higher total income was driven by strong net financing growth of 8.3% and an increase in investment securities of 9.3% . As at 31 December 2019, deposits and investment accounts (“IA”) saw a year-on-year increase of RM2.6 billion or 4.7% . The Bank’s capital position remained healthy to support continuous business growth with a Total Capital Ratio of 18.7% as at end 2019. 114 Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance MANAGEMENT DISCUSSION & ANALYSIS SUBSIDIARIES’ OPERATIONAL REVIEW