AZIZAN ABD AZIZ Group Chief Financial Officer Our net profit grew by 3.3% year-onyear (y-o-y) to RM571.1 million, while Profit Before Zakat and Tax (PBZT) increased by 3.5% to RM773.1 million. This growth was primarily supported by higher net fund-based income and lower net expected credit losses on financing, offset by lower non-fundbased income and higher overhead costs. A key focus area in FY2024 was managing our Net Income Margin (NIM) amid rising funding costs and industry-wide competition for deposits. We maintained a NIM of 2.13%, through prudent balance sheet management and a strategic shift towards low-cost Current, Savings, and Transactional Investment Accounts (CASATIA), which accounted for 39.7% of total deposits. Despite macroeconomic pressures of rising inflation and subsidy rationalisation, we strengthened our financial position. Our total assets grew by 6.4% to RM96.8 billion while we maintained a strong Total Capital Ratio of 20.0%, ensuring stability and continued shareholder value creation. STRATEGIC FINANCIAL MANAGEMENT AND COST DISCIPLINE Recognising that maintaining profitability requires a balanced approach to revenue generation and cost containment, we remained steadfast in our commitment to cost efficiency throughout 2024. We recorded a cost-to-income ratio (CIR) of 64.5%, reflecting our focus on cost discipline and sustaining net income growth while investing in digitalisation and operational enhancements. A key enabler of our cost-efficiency efforts is the CORE programme, through which we aim to reduce our operating costs by RM100 million by 2026. During the year, we have implemented several cost saving and optimisation initiatives, such as streamlining software subscription redundancies and upskilling teams to drive greater efficiency. In the first year of implementation, this has resulted in realised cost savings of more than RM20 million, a significant achievement for a mid-sized bank. Through the expansion of Artificial Intelligenceenabled (AI) operational efficiency measures such as automation, we are targeting further savings of RM35 million in 2025 and RM40 million in 2026. ‘’In the name of Allah, the Most Compassionate, the Most Merciful All praise is due to Allah, the Lord of the Worlds, and peace and blessings be upon the Prophet Muhammad, whom Allah send as mercy to the universe, which Allah make him a guiding and a rightly guided man, and an illuminating lamp. And peace and blessing on his family and companions, and those who followed them benevolently until the Day of Judgment and then after. May Allah’s peace, mercy and blessings be upon you.’’ Bank Islam demonstrated its resilience, adaptability and commitment to financial discipline during 2024. In a highly competitive banking environment characterised by continued deposit pricing pressures and shifting corporate financing trends, we delivered stable earnings growth to maintain our standing as a leading Islamic financial institution in Malaysia. 27 w w w . b a n k i s l a m. c o m 01 02 KEY MESSAGES 03 04 05 06 07 08 09 Financial Review by the GCFO
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