During the financial year, our rating was reaffirmed as follows: Rating Agency Date Reaffirmed Ratings RAM Rating Services Berhad 27 November 2024 Long-term rating: AA3 Short-term rating: P1 Outlook: Stable Analyst Coverage As of end December 2024, Bank Islam’s stock (Bursa: 5258) was covered by a total of eight local research houses, listed below in alphabetical order: No Research House 1 AmInvestment Bank 2 Apex Securities Berhad 3 CGS International Securities 4 Hong Leong Investment Bank 5 Kenanga Investment Bank 6 Maybank Investment Bank 7 MIDF Amanah Investment Bank 8 RHB Research Total Analysts BUY HOLD 8 4 4 Summary of Investor Interest/Focus Areas during Engagement with Investors No Focus Areas Our Response 1 Compression of Net Income Margin (NIM) Preserving NIM through balance sheet management. 2 Income and growth drivers • Expanding Ar-Rahnu service counters nationwide. • Introducing wealth management initiatives and a Gold Investment Account. 3 Cost management Implementing the Cost Reduction and Resource Efficiency (CORE) Programme to reduce operating costs by RM100 million by 2026. 4 Financing growth and segmentation • Modest financing growth in 2024, partly due to large repayments from institutional clients who refinanced via Islamic capital markets as a cheaper alternative. • Growth driven by Retail, particularly Home Financing and Personal Financing. 5 Asset quality • Asset quality remained robust and below the industry average. • Proactive management of early delinquent accounts to maximise recoveries while minimising expected credit loss. • Refining our collection strategies and increasing recovery and collections activities. 6 Financial returns Robust and consistent financial returns, with a dividend policy sustained at up to 60% of Profit After Zakat and Tax. 7 Digitalisation • Launched BIMB Mobile and BIMB Web on 21 November 2024, transitioning to a cloud-native digital solution for enhanced speed, new features, and improved security. • Achieved branchless digital banking capabilities through Be U by Bank Islam. 8 ESG adaptability Maintaining a fair balance between financial performance and ESG contributions through the progressive delivery of our sustainability commitments. 91 w w w . b a n k i s l a m. c o m 01 02 03 04 MD&A – PERFORMANCE REVIEW 05 06 07 08 09
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