By end-2024, we had recorded over 1.3 million registered users for BIMB Mobile and 249 million overall mobile transactions, up from 129 million in 2023. The activation of our Deposit Task Force in August 2023 has also played a crucial role in optimising deposit composition in 2024 by reducing exposure to high-cost corporate deposits and improving funding cost management. Additionally, we reinforced our efforts in social finance and financial inclusion by integrating innovative credit assessment models to support microentrepreneurs. This ensured continued financial access for underserved communities while mitigating risk. These initiatives underscore our longterm commitment to sustainable cost efficiencies, ensuring profitability while continuing to invest in technology, customer experience and strategic growth. RETAIL AND INSTITUTIONAL BANKING PERFORMANCE Group Retail Banking (GRB) delivered a remarkable performance, recording a net income of RM1,755.3 million, an increase of 20.5% compared to 2023. This was achieved through higher fundbased income and non-fund-based income. Net fund-based income saw a 5.1% y-o-y increase to RM2.2 billion, supported by y-o-y investment securities and financing growth. Strong performances in Home Financing-i (HFA-i), Personal Financing-i (PF-i), and Vehicle Financing-i (VF-i) contributed significantly to GRB’s growth. The Group also recorded a higher fee and commission growth of 11.2% y-o-y. However, non-fund-based income declined 2.2% y-o-y from 2023, mainly due to reduced net gains from foreign exchange transactions and lower investment income. Group Institutional Banking (GIB) achieved 10.1% y-o-y growth to record a net income of RM839.5 million, underpinned by higher net fund-based income. This performance was driven by a 6.7% y-o-y expansion in commercial financing and the Treasury’s investment in capital securities. However, corporate financing declined by 12.0% y-o-y as corporate clients increasingly turned to the Sukuk market to benefit from more favourable profit rates for refinancing. Anticipating this shift, we recalibrated our strategies by growing our financial assets at amortised costs (AC) to sustain our financing income from the corporate segment. DIGITAL TRANSFORMATION AND OPERATIONAL EXCELLENCE Digitalisation remains a core pillar of our business transformation strategy. Our investments in automation, cloud technology and AI-driven analytics have both improved the customer experience and delivered measurable financial efficiencies. The launch of BIMB Mobile and BIMB Web in November 2024 was a significant milestone, providing customers with a fully digital, cloud-native banking experience. By end-2024, we had recorded over 1.3 million registered users for BIMB Mobile and 249 million overall mobile transactions, up from 129 million in 2023. Integrating advanced cybersecurity measures reduced fraudrelated losses by 24%, strengthening consumer trust in our digital platforms. Strategic adoption of AI and Machine Learning (ML) has also resulted in significant cost savings and operational enhancements. By leveraging AI and ML in our Pre-Due Strategy, we successfully reduced early delinquency risks by making reminder calls to customers at risk of missing payments. The initiative has reduced the early delinquency of accounts for the year by 0.09% for PFi, 0.23% for HFA-i, and 0.21% for VF-i. This proactive approach to credit risk management ensured that our Gross Impaired Financing Ratio remained at a strong 1.06%, well below the industry average of 1.44%. AI-driven processes have not only strengthened our asset quality but also improved operational efficiency, realising RM140,000 in annual cost savings through workforce optimisation. Looking ahead, our continued investments in automation and predictive analytics will further streamline operations, improve credit and risk management, and scale our digital offerings to meet evolving customer expectations. CREATING VALUE FOR OUR SHAREHOLDERS AND SOCIETY We remain dedicated to delivering consistent value to our shareholders through disciplined capital management and financial planning. Total dividends paid in 2024 amounted to RM345.0 million, maintaining a consistent payout ratio of 60% of Profit After Zakat and Tax (PAZT) in line with our dividend policy. Supported by strategic capital optimisation measures, our Common Equity Tier I (CET I) ratio stood at 13.8% with a medium-term target of 14%. We intend to continue pursuing investment accounts as a capital-raising mechanism, providing flexibility while maintaining a robust capital position that balances growth with shareholder value creation. Gross Impaired Financing Ratio 1.06% well below the industry average of 1.44%. Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2024 28 Financial Review by the GCFO
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