Our commitment to social finance remains unwavering and steadfast. In 2024, Bank Islam Malaysia Berhad fulfilled its zakat obligation, with a total of RM11.4 million zakat paid to the State Islamic Religious Councils (SIRCs) across all states in Malaysia. Additionally, last year, RM19.4 million was distributed to assist 1,433 beneficiaries among unbanked, underbanked and underserved segment. From the total amount distributed, RM12.3 million was allocated to blended social finance programs, benefitting 413 micro-entrepreneurs. In addition, the Sadaqa House Orphan Fund raised RM2.4 million to benefit education, welfare and infrastructure initiatives. These efforts reinforce our role in wealth distribution and social responsibility while complementing our broader ESG and sustainability financing goals as part of a holistic approach to value creation. We exceeded our internal LEAP25 target for green financing, achieving RM4.9 billion in total approved financing in 2024. We continued to leverage Shariah-compliant mixed funds to drive ESG investments, with Shariah-SRI funds accounting for RM496.5 million, representing 49.2% of our total Assets Under Management (AUM). We diversified our green financing portfolio across multiple sectors, achieving RM763 million in total approved financing for renewable energy, waste management and water management, representing a 16% y-o-y increase. We also grew our Hybrid and Electric Vehicle (HEV) financing portfolio, disbursing RM131.2 million in 2024 compared to RM99 million in 2023 while refining our strategy to focus on clients with larger ticket sizes and lower risk profiles. We further expanded responsible investment opportunities by launching the Ihsan Sustainability Investment Account (ISIA) 2.0. This account offers investors access to UNSDG-aligned financing assets with a fund size exceeding RM661 million. Additionally, we grew our ESG research capabilities by integrating thematic ESG reports into our stock research coverage. Collaborations with government bodies and zakat institutions allowed us to support public infrastructure projects. Approved financing of RM13.0 million in affordable housing and RM26.5 million in public infrastructure financing represented y-o-y increases of 3% and 6%, respectively. Overall, in 2024, our Sukuk issuance with a positive ESG impact grew to RM13.1 billion in sustainability-linked transactions, accounting for 80% of our total issuance of RM16.4 billion. 2025 OUTLOOK: STRONG AND SUSTAINABLE GROWTH Malaysia’s GDP is expected to grow by 4.5%-5.5% in 2025, supported by economic recovery and policy-driven stimulus. However, global macroeconomic uncertainties and domestic subsidy rationalisation remain key challenges. Inflation is expected to range between 2.0%-3.5% as cost-of-living pressures persist. In response, we are taking proactive steps in financial inclusion initiatives, prudent cost management and ongoing digital transformation. Bank Islam’s 2025 strategic priorities include a target of 7-8% financing growth with an expanded focus on green and sustainability-linked financing reinforced by an ambitious target of RM28 billion. Our growing Wealth Management and Sukuk advisory services will drive an expansion of our fee-based income streams. Strengthening cost efficiency and resource allocation through automation and process optimisation will remain a core focus in stabilising our CIR. Meanwhile, we will continue to invest in our technology infrastructure and workforce upskilling to remain agile and responsive. Refining our BIMB Mobile and BIMB Web platforms will cater to the increasing demand for digital-first financial solutions. By focusing on outcome-driven initiatives that deliver meaningful impact, we are well-positioned to navigate the dynamic financial landscape while creating longterm value for our shareholders, our customers and our communities. AZIZAN ABD AZIZ Group Chief Financial Officer Additionally, last year, RM19.4 million was distributed to assist 1,433 beneficiaries among unbanked, underbanked and underserved segment. Sukuk issuance with a positive ESG impact RM13.1 billion Total Sukuk issuance RM16.4 billion 29 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
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