OVERVIEW OF BUSINESS ENVIRONMENT Uncertain Macroeconomic Environment The global economic landscape remains uncertain, influenced by persistent inflationary pressures, high profit rates and volatile market conditions. Despite these challenges, we remain steadfast in our commitment to resilience and adaptability. Against this uncertain backdrop, we have continued to focus on enhancing productivity, strengthening risk oversight, and delivering superior client experiences. Additionally, we have adopted a proactive approach to balance sheet management, ensuring strong asset quality and liquidity. Regulatory and Sustainability Imperatives Regulatory frameworks continue to evolve, with increased emphasis on sustainability and responsible financing. To meet this challenge, we have implemented sustainabilitydriven strategic initiatives to ensure sustainable growth and expand UNSDG-aligned assets across customer segments and economic sectors. At the same time, we are stepping up as a responsible investment intermediary through initiatives like the Ihsan Sustainable Investment Account (ISIA) while driving Value-based Intermediation through our various financing programs such as the Vendor Financing Programme (VFP). At the same time, we remain committed to creating positive social impact amongst underserved groups through our social finance solutions, which target MSMEs which otherwise might struggle to access vital financial services. Technological Advancement and Digital Innovation Advancements in technology are reshaping client expectations and driving demand for innovative financial solutions. With this in mind, we are focused on driving digital transformation to enhance operational efficiency, improve client experiences, and maintain our competitive edge in a rapidly changing market environment. During FY2024, we have continued to invest in our digital enablers, such as our new credit origination platform, REVEX, and our cash management platforms. These initiatives underscore our goal of transforming the banking experience and reinforcing our position as a trusted partner for our clients’ financial needs. KEY HIGHLIGHTS FINANCIAL AND BUSINESS HIGHLIGHTS Overall total financing for Group Institutional Banking stood at RM15.4 billion, reflecting a slight y-o-y decline of -4%. The reduction primarily stems from natural portfolio movements, including full settlements, completed projects, and attrition rates. However, the Commercial segment saw a 7% growth, helping to offset the decline. For Corporate segment, attrition was driven by clients shifting to the capital markets, with most deals successfully captured by the Investment Banking and Advisory (IB and A) team. 16,532.8 2022 9,586.7 16,059.1 2023 CORPORATE Total COMMERCIAL Total 9,181.3 15,428.6 2024 8,090.9 6,877.8 7,337.6 6,946.1 TOTAL FINANCING Achievements Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 104 Business Review – Group Institutional Banking
RkJQdWJsaXNoZXIy NDgzMzc=