BIMB Integrated Annual Report 2019

Green Financing As the green technology and renewable energy sectors continue to grow, Bank Islam stands alongside to support these efforts as drivers of sustainability based on Environment, Social and Governance (“ESG”) tenets through Green Financing. For 2019, we breached our internal RM1 billion target for Green Financing during the year, an increase of almost threefold to RM1.76 billion as compared to RM632 million from the previous year. We are proud to note that BIMB Investment Management Berhad (“BIMB Investment”), a wholly-owned subsidiary of Bank Islam was conferred as the ESG Asset Manager of the Year 2019 by The Asset Triple A Islamic Finance Awards 2019 for its significant contributions and achievements in ESG, sustainability and asset management in Asia. BIMB Investment manages more than RM1 billion of Shariah-ESG assets, making it the largest Shariah-ESG asset manager in Malaysia . Its Global Shariah- ESG equity fund is now the largest global equity fund in Malaysia and ranked the world’s third largest global equity Shariah-ESG fund. Social Finance We leveraged on fintech to develop Sadaqa House , a crowdfunding platform that allows anyone to donate to various social causes via online platforms. To ensure that real impact is delivered to the right target, all contributions undergo stringent monitoring and integrity process. In 2019, Sadaqa House collected RM1.4 million that has since been channelled to active change-makers including Institut Jantung Negara (“IJN”) Foundation, Yayasan Sultanah Bahiyah (“YSB”) and Universiti Teknologi Malaysia (“UTM”). This platform earned the Bank the accolade of the Best Social Finance Initiative 2019 at the 5 th Islamic Retail Banking Awards (“IRBA”). The Bank launched a myWakaf portal during the year to catalyse Wakaf contributions as part of the Association of Islamic Banking and Financial Institutions Malaysia’s (“AIBIM”) objective to promote Wakaf development in consultation with state Islamic Religious Councils. The portal enables easier, more effective and tax-exempt Wakaf contributions by individuals to selected projects like education, healthcare, investment and economic empowerment. SME Financing SME financing rose exponentially by 151% to RM178 million with a 65% increase in total assets for SME financing in 2019. Bank Islam intensified it support for SMEs through collaborations with Government Linked Corporations (“GLCs”) and other large corporations through vendor development and financing programmes. We also helped SMEs to improve their business skills and knowledge which go a long way towards making them more competitive. We worked with Universiti Utara Malaysia (“UUM”) and SME Corp on the SME Development Programme 2.0 , which had overwhelming response from participants, doubling in participation size from the year before. We extended support to women entrepreneurs and launched the Women in Business (“WinBiz”) programme that offers a comprehensive range of banking facilities that meet the working capital requirements and capital expenditures of private limited women-owned businesses. Moving Forward In the immediate term, Bank Islam places high priority on supporting customers who are affected by the COVID-19 pandemic through its Rescheduling & Restructuring (“R&R”) facility that aims to provide financial assistance to all individuals and business customers. The programme allows customers to pay lower monthly repayment so that they can better manage their cash flow. This is over and above supporting BNM’s relief plan which includes automatic deferment of all financing repayments for six months. The Bank is also implementing an SME Special Relief Facility (“SSRF”) to help alleviate the short-term cash flow predicament faced by SMEs during this period of volatility. For the next three years, the Bank remains focused on its clear strategy to deliver sustainable performance that impacts positively on the economy, community and environment premised on VBI principles. As always, we will continuously monitor, review and recalibrate where needed against primary drivers that include OPR and GDP, among others. We will continue to bank on initiatives that drive us towards operational, culture and digital excellence, as governed by the Bank’s core values and Shariah principles. We will harness digital innovation to create customer experiences that are relevant, convenient, reliable and safe; harness the capabilities of ecosystem partners to co-create new products and services; and help our customers improve their own businesses. Having set a strong foundation for growth, we are ready to take on the mantle as the leading full-fledged Islamic financial institution under the corporate restructuring exercise that has been proposed. Under this exercise, BHB will transfer its listing to Bank Islam that will allow the Bank to gain direct access to the equity capital market for its fund-raising activities to support its organic growth. 115 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary