before. At the same time, the ratio of non-performing financings in the Malaysian banking sector also declined to 1.4% in 2021, from the 1.6% recorded the year before. The improvement was driven by the household segment as banks continued to support viable borrowers facing temporary financial diff iculties by offering repayment assistance packages. BIMB continued to outperform the banking sector as a whole in both key areas. Our non-performing financing ratio for the year stood at 0.96%, even as our financing growth for the year rose by 6.4%. The strength of our performance in these areas reflects the effectiveness of the LEAP25 growth strategy that we have implemented. Alongside the unique chal lenges caused by the COVID-19 pandemic, we have seen the acceleration of larger trends that are reshaping the banking industry itself. The shift to digital banking, the disruption caused by the rise of FinTech firms and the growing pressure for financiers to incorporate ESG considerations into their lending practices are reshaping the banking landscape itself. STRATEGY AND TRANSFORMATION At the heart of our strategy is our commitment to our values and purpose as an Islamic banking institution. The strong ethical f ramework gives us a major asset as the world embraces values-based f inancing. Building on our core strengths, BIMB aims to be a champion in offering Shariah Environmental, Social and Governance (“Shariah-ESG”) total financial solutions and to establish its leadership in social finance and digital banking. Our roadmap for delivering these goals is laid-out in our LEAP25 corporate strategy plan, which was launched at the end of 2020. LEAP25 sets clear targets for the next f ive years, of growing our asset size to over RM100 billion, doubling our ESG-rated financing, sustaining superior industry Return-on-Equity, increasing our nonfund-based income contribution, creating a positive social impact and retaining high-performing talent. These targets are anchored by the six pillars of Sustainable Prosperity, Values-based Culture, Community Empowerment, Customer-Centricity, Real Economy and Digitalisation. To achieve this aim, we are configuring our business around delivering cuttingedge products, enhancing customers’ experience, accelerating our digital initiatives and deepening our strategic collaborations. As we navigated the chal lenging backdrop of 2021, we actively executed growth strategies that are aligned with our LEAP25 targets. During the year, we expanded our Green Financing portfolio, actively pursued the non-Muslim consumer market and accelerated digitalisation across all areas of our business and operations. The effective execution of our strategy had a visible impact on our business performance and we aim to pick up the pace of transformation going forward. While we have now entered a new phase of our growth strategy, our intention remains the same – to create sustainable value for our shareholders and delivering on our aim of being the Bank that Advances Prosperity for All. SIX PILLARS OF LEAP25 Sustainable Prosperity Values-based Culture Community Empowerment Digitalisation Customer- Centricity Real Economy INTEGRATED ANNUAL REPORT 202 1 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information 15
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