OUR FINANCIAL YEAR IN REVIEW Our Performance Bank Islam Malaysia Berhad (“BIMB” or “the Group”) recorded revenue of RM3.2 billion for the year under review, which is 5.2% lower than in 2020. The lower figure reflects the impact of the subdued economic environment, the slowdown in the property sector and margin compression. Through the effective execution of operational and financial measures, the Group was able to deliver a Profit Before Zakat and Tax (PBZT) of RM704.2 million for the financial year ended 31 December 2021. This represents a 3.3% decline from the previous financial year and translates to earnings per share of 21.87 sen for 2021. Our softer performance is attributable to a combination of lower non-fund based income and increased expenses during the year. The Group’s non-fund based income declined by RM175.5 million, mainly due to lower investment income, particularly a lower net gain from the sale of investment securities. These reductions were offset by a lower modification loss arising from the financing moratorium granted to customers. The Group recognised a significantly lower modification loss of RM48.9 million in 2021, compared to RM136.4 million in the previous year. Our Net Income Margin (NIM) declined slightly to 2.38% from 2.41% in 2020, reflecting the impact of the low interest-rate environment that prevailed throughout the financial year. PERFORMANCE REVIEW SEGMENTAL PERFORMANCE BIMB has three operating segments, which are Consumer Banking; Corporate and Commercial Banking; and Treasury. Our Consumer Banking segment encompasses retail. Our Corporate and Commercial Banking encompasses non-retail. Treasury encompasses trading and investment book. Consumer Banking reported a net income of RM1.2 billion for the financial year ended 31 December 2021, 13.4% higher than the previous year, attributed mainly to a higher net fund-based income. Gross financing for Consumer Banking as at end December 2021 stood at RM44.5 billion. This marks a year-on-year growth of 7.5% which was driven, mainly, by growth in house financing. Corporate and Commercial Banking recorded a net income of RM415.6 million, a rise of 6.5% from the previous year, with the increase mainly due to higher net fund-based income. Total gross financing for the segment stood at RM14.7 billion. Treasury registered a net income of RM241.4 million for the period, which is 47.1% lower than the previous year. The softer performance was, mainly, due to a lower net gain from sale of investment securities. Treasury assets stood at RM20.0 billion. 73 Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information INTEGRATED ANNUAL REPORT 202 1
RkJQdWJsaXNoZXIy NDgzMzc=