BIMB Integrated Annual Report 2019

earnings per share increased to 44.75 sen (2019) compared to 40.36 sen (2018) With the strong performance charted by BHB in 2019, earnings per share increased to 44.75 sen compared to 40.36 sen in the previous financial year, while our Return On Equity (“ROE”) stood strongly at 15.7%. ANOTHER RECORD-BREAKING FINANCIAL PERFORMANCE For the year in review, the Group showcased another record-breaking performance amid a challenging operating environment, due to our strong adherence to disciplined business management that is well balanced with progressive strategic initiatives for growth. For the financial year ended December 2019, the Group posted PBZT of RM1.2 billion , an increase of 13.1% driven by higher-than-expected earnings from Bank Islam and Takaful Malaysia. Profit After Tax (“PAT”) increased 16.7% to RM935 million in 2019 against RM801 million in the previous corresponding period. Islamic Banking Bank Islam’s PBZT for 2019 increased by 4.1% to RM843.5 million . This was driven by an increase in total income due to strong net financing growth of 8.3% which is more than double the industry’s average financing growth of 4.1% (as at December 2019), as well as an increase of 9.3% in investment securities. Net financing stood at RM49.5 billion while investment securities was at RM12.8 billion . Despite the strong financing growth, asset quality remained strong and resilient in 2019 against a robust credit risk assessment framework and prudent credit management practices. This was reflected by the low gross impaired financing ratio of 0.86% at end December 2019 which was lower than the 1.51% registered by the banking system during the same period. Integrated Annual Report 2019 Group Overview Sustaining The Group Management Discussion & Analysis Group Governance 50