OTHER STATUTORY INFORMATION (CONTINUED) Change of circumstances At the date of this report, the Directors are not aware of any circumstances, not otherwise dealt with in this report or the financial statements which would render any amount stated in the financial statements of the Group and of the Bank misleading. Items of an unusual nature The results of the operations of the Group and of the Bank for the financial year were not, in the opinion of the Directors, substantially affected by any item, transaction or event of a material and unusual nature. There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature, likely to affect substantially the results of the operations of the Group or of the Bank for the current financial year in which this report is made. Compliance with Bank Negara Malaysia’s policy document on financial reporting In the preparation of the financial statements, the Directors have taken reasonable steps to ensure that the preparation of the financial statements of the Group and of the Bank are in compliance with the Bank Negara Malaysia’s Policy Documents on Financial Reporting for Islamic Financial Institutions. 2024 BUSINESS PLAN AND OUTLOOK Business Plan, Strategy and Future Outlook 2023 had been a challenging year amid global shockwaves which saw Malaysian Gross Domestic Product (“GDP”) grew moderately by 3.7%. Despite external headwinds, Bank Negara Malaysia (BNM) projects that the economy is well-positioned for a better growth performance, expanding between 4%-5% in 2024. Private consumption activities will continue to be the anchor of growth, owing to strong labour market conditions. Malaysian banking industry remained resilient despite uncertainty surrounding U.S. banking crisis. Asset quality remained sturdy with Gross Impaired Financing (“GIF”) stood at 1.65% in November 2023 given the prudent management and tight asset quality control. Going into 2024, analysts are projecting growth to stay between 4%-5% in 2024 mainly underpinned by strong domestic demand. The National Budget 2024 also lays the foundation to promote sustainable growth that could boost green financing moving forward. The Bank has placed strong emphasis on its core strengths while empowering environment, as well as prioritising sustainability agenda. This entails partnering with the targeted institutions and introducing advisory products to meet evolving customer demands alongside exploring potential product offerings through Group Retail Banking and Group Institutional Banking. The Bank has also introduced Ihsan Sustainability Investment Account to lead the evolution that advances prosperity for all. On the digital channel front, the exceptional growth in Internet Banking (“IB”) and GO is expected to persist. In light of this, the Bank will focus on improving system reliability and enhancing the customer experience for IB and GO in 2024. In advancing the Bank’s sustainability commitments, we have successfully achieved our Shariah-ESG asset target of RM4 billion earlier than expected. Furthermore, the Bank has successfully joined as a Participant of the United Nations Global Compact (“UNGC”). The Bank remains steadfast in our sustainability commitment to support customers in their transition to low carbon target and contribute to Malaysia’s net-zero ambitions as part of the Value-Based Intermediation initiatives. 252 Directors’ Report for the financial year ended 31 December 2023 Bank Islam Malaysia Berhad ◆ Integrated Annual Report 2023
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