2024 was a significant year for sustainability at Bank Islam. We actively integrated ESG principles into financial offerings and governance, and our efforts secured four awards at The Edge Malaysia ESG Awards, including recognition for the Makmur myWakaf Fund, highlighting our impact-driven approach to Islamic finance. During the year, we launched our ESG Risk Management Framework to manage climate and sustainability risks and introduced the Ihsan Sustainable Investment Account 2.0 (ISIA 2.0), a value-based impact investment mechanism. Additionally, we introduced the NOMURA Global Shariah Sustainable Equity Fund, an SRI-aligned fund supporting responsible investing. Our commitment to green financing also remained strong. Shariah-ESG financing exceeded our LEAP25 target, and institutional banking ESG transactions grew significantly, reinforcing our leadership in sustainable Sukuk and ethical finance. We also prioritised capacity building by implementing the Sustainability and Climate Risk Capability Development Framework, ensuring our employees are equipped to drive ESG goals. In addition, we conducted 23 sustainability training sessions for 1,263 staff, totalling 305 training hours. The financial strength and resilience of our business underscores these achievements. During the year, our revenue and profit increased steadily, bolstered by higher net fund-based income and lower net expected credit losses on financing, while we maintained a robust capital position with high asset quality and ample liquidity. Meanwhile, to future-proof our revenue streams, we strengthened our position in Islamic capital markets, bancatakaful, wealth management and other fee-based income streams, enabling us to drive consistent growth even when net income margins are low. Sustainable Prosperity 01 Our commitment to financial inclusion and sustainable socioeconomic development continued to expand, with iTEKAD disbursing RM30 million to over 1,200 microentrepreneurs. This initiative is vital in strengthening economic resilience and fostering financial accessibility for underserved communities. Meanwhile, our Employee Engagement Index (EEI) score reached 91%, driven by investments in digital upskilling, leadership development, and well-being initiatives. These achievements reinforce our position as a future-ready organisation that is agile, resilient, and primed for long-term success in an increasingly dynamic banking environment. STRATEGIC PROGRESS We maintained strong operational momentum despite macroeconomic challenges, including global trade uncertainties and fluctuating profit rates. Our emphasis on fee-based income growth – particularly from investment banking, wealth management, and advisory services – has diversified our revenue streams, reducing reliance on net fund-based income. The six pillars of LEAP25 continued to guide our strategic direction in 2024, aligning our objectives with stakeholder priorities, global sustainability goals, and long-term value creation. Our progress across these pillars is detailed below. We also prioritised capacity building by implementing the Sustainability and Climate Risk Capability Development Framework, ensuring our employees are equipped to drive ESG goals. In addition, we conducted 23 sustainability training sessions for 1,263 staff, totalling 305 training hours. Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 22 From the Desk of the GCEO
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