Maintaining Our Focus on Growth Despite the volatile operating environment, the Group’s Total Assets increased by 7.4% during the year, to reach a record high of RM80.2 billion. Growth in total assets was underpinned by encouraging growth in our consumer banking segment. Net Financing grew by 6.4% (2020: 10.5%), which was well-above the industry’s average of 4.1% in 2021. Our financing growth continues to be driven by our attractive products and customer preference for our differentiated offerings. The Group’s total deposits and investment accounts grew by 6.8% to RM67.8 billion during the year. Total current, savings accounts and transactional investment accounts (CASATIA) reached a record high ratio of 39.6% of total deposits and investment accounts, up from the 36.1% recorded in 2020, and above the industry average of 32.4%. The total value of our CASATIA stood at RM26.8 billion at the end of 2021. Maintenance of High Asset Quality By effectively managing our credit risk, BIMB has consistently maintained one of the lowest Gross Impaired Financing (GIF) ratios in the industry. Our GIF ratio stood at 0.96% at the end of 2021, up from 0.67% in 2020, but still well below the industry average of 1.44% for the year under review. The rise in our GIF ratio is mainly due to the pre-emptive provisions FINANCIAL REVIEW FROM THE GROUP CHIEF FINANCIAL OFFICER that we have made in response to the challenging credit environment. Our total impaired financing rose from RM373 million in 2020, to RM568 million in 2021. Additionally, we have continued to maintain our Financing Loss Coverage ratio at well above industry levels. Our ratio stood at 187.2% at the end of 2021, in contrast to the industry average of 129.0%. Effective Liquidity Management We continued to strengthen our liquidity buffers during the year, with our Liquidity Coverage Ratio (LCR) rising by 35.2% to 180.1%, which is significantly above the industry average of 153.7%. At the same time, our Net Stable Fund Ratio rose to 113.1% as at December 2021, up from 110.4% the year before. This year-on-year increase in long-term liquidity was, mainly, the result of a RM2.5 billion increase in retail and SME deposits. While the Group has maintained its existing stance on credit management, we have also adopted a more cautious and selective approach, with more granular forward-looking assessments that incorporate ESG considerations. In addition, we recalibrated our credit scorecard to factor-in the heightened risks from the pandemic. We have also stepped-up client engagements and monitoring to reduce the likelihood of credit risk incidents materialising. TOTAL ASSETS INCREASED TO RM80.2 Billion (2020: RM74.6 Billion) NET FINANCING GREW TO RM58.2 Billion (2020: RM54.7 Billion) TOTAL CAPITAL RATIO LOWER AT 18.6% (2020: 19.8%) TOTAL DEPOSITS AND INVESTMENT ACCOUNTS ROSE TO RM67.8 Billion (2020: RM63.4 Billion) 74 BANK I SLAM MALAYS IA BERHAD
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