Bank Islam Integrated Annual Report 2021

C O V E R R AT I O N A L E
As the first full-fledged pure-play Islamic financial

institution in the country, Bank Islam Malaysia
Berhad (“BIMB”) is committed to advancing
prosperity and progress for all our customers.
Despite the unprecedented challenges presented

by COVID-19, BIMB demonstrated its leadership by
mobilising resources, leveraging on digitalisation
to ensure business continuity, as well as reaching
out to provide solutions to help those most
impacted. From enhancing access to our services,
providing f inancial help to SMEs as well as
restructuring financings, we helped to alleviate
f inancial diff iculties and ensured livelihoods
were preserved.
BIMB is also embarking on a five-year strategy

roadmap, LEAP25 to deliver the promise of
technology, redefine growth by fortifying our
f ive business drivers: Social Finance, Wealth
Management, Enterprises and Wholesale
Banking, and Digital Bank. This will enable us
to achieve organic growth as well as provide
leadership in digital banking and social finance.
Moving forward, BIMB will continue to focus on

integrating the principles of Shariah, Value-based
Intermediation (“VBI”) and ESG considerations
to remain resilient in its pursuits.
The cover design highlights BIMB’s reach –

advancing prosperity to customers across all
walks of life and economic segments. It also
reflects BIMB’s foray into digitalisation of its
products and services.
I N T EG R AT ED A N N UA L R EP O R T 2 0 2 1
THE BANK
THAT
ADVANCES
PROSPERITY
FOR ALL
As part of our efforts to create greater accessibility
through technology, and in line with environmental
efforts to go paperless, scan the QR Code with your
smartphone to view this integrated annual report online.
DEAR SHAREHOLDERS,
WELCOME TO BANK ISLAM
M A L AY S I A B E R H A D ’ S
2 0 2 1 I N T E G R AT E D R E P O R T
ABOUT
THIS REPORT
SCOPE AND BOUNDARY OF REPORTING
This Integrated Annual Report (IAR) is produced and published

CORPORATE BOOK
annually and covers our financial and non-financial performance
for the reporting period of 1 January 2021 to 31 December
CONTENTS
2021 unless otherwise stated.
• Provides a comprehensive overview
of the Group’s performance for 2021 The report provides a complete and balanced review of primary
and the outlook for 2022 activities of the Group, namely our overall performance and the
delivery of initiatives towards achieving our goals, providing material
R E G U L AT I O N S C O M P L I E D information relating to our strategy and business model, operating
environment, material risks, stakeholder interests, performance,
• Malaysian Financial Reporting
governance and prospects.
Standard
• Companies Act 2016
• Bursa Malaysia’s Sustainability The boundary of the report extends beyond financial reporting
Reporting Guide and includes non-financial performance, opportunities, risks and
• FTSE4Good Bursa Malaysia outcomes attributable to/or associated with our key stakeholders,
• Global Reporting Initiative G4 which have a significant influence on our ability to create value.
• Malaysian Code on Corporate
Governance (MCCG 2021)
REPORTING FRAMEWORKS
BIMB’s integrated reporting process, as well as the contents of

this report are guided by the principles and requirements of the
following:
• International Integrated Reporting Framework (IIRF)

• Malaysian Code on Corporate Governance (MCCG 2021) by
Securities Commission Malaysia
• Bank Negara Malaysia Corporate Governance Policy
Our f inancial s tatement s for the Financial Year Ended

31 December 2021 have been prepared in accordance with:
• Malaysian Financial Reporting Standards (MFRS)
• International Financial Reporting Standards (IFRS)
This report is supplemented by disclosures that can
be accessed online via www.ba nkisla m.com
• Bank Negara Malaysia Policy Documents and Guidelines
• Islamic Financial Services Act 2013
CAPITALS STRATEGIC PILLARS MATERIAL MATTERS
SP RE CC
Financial Manufactured Sustainable Real Customer- Responsible Talent Inclusive

Prosperity Economy Centricity Finance Enrichment Growth
VBC CE D
Human Intellectual
Values-based Community Digitalisation Ethical Practice & Islamic Finance &

Culture Empowerment Reporting Knowledge Sharing
Natural Social and

Relationship
MATERIALITY AND MATERIAL MATTERS FORWARD-LOOKING STATEMENTS
This report aims to disclose information about matters that This IAR contains certain forward-looking statements relating to
substantively affect our ability to create value over the short, BIMB’s future performances and prospects. These statements
medium and long-term and to deliver on our core purpose. and forecasts are based on current assumptions, judgements
A thorough assessment on material issues to BIMB was and involve uncertainties as circumstances may change. Various
conducted in 2019. Material issues were identified based on an factors may cause actual results to differ materially from those
evaluation of how we create value, the impact of the external expressed or implied by these forward-looking statements such
operating context on the value creation, the material interests as a number of emerging risks as well as other factors that
of our stakeholders and the principal risks facing the Group. could adversely impact our business and financial performance.
As such, these forward-looking statements should not be
The content of this report focuses on the issues, opportunities
construed as guarantees to BIMB’s future performance.
and challenges that are material to both our stakeholders and
our business, which consequently impacts our performance.
APPROVAL BY THE BOARD
By applying the principle of materiality into our reporting
BIMB’s Board acknowledges its responsibility in ensuring the
disclosures, we present vital topics that influence the Group’s
integrity of this IAR, which in the Board’s opinion addresses
strategy in creating long-term value for our key stakeholders.
material issues to the Group’s ability to create value and fairly
presents BIMB’s performance for the year 2021.
COMBINED ASSURANCE
This Annual Report for the year ended 31 December 2021
The report development process is supported by our robust
was approved by the Board on 15 April 2022, and signed on
internal control and good governance practices. Assurance
its behalf by:
for this report is provided by our Board of Directors (Board),
supported by external verification by PwC Malaysia, our
auditors for financial information and providers of limited
assurance on selected non-financial information.
Tan Sri Dr. Ismail Haji Bakar

Chairman
H o w To N a v i g a t e O u r R e p o r t
KEY RISK STAKEHOLDERS
Credit Market Liquidity Operational Investors Employees Government

Risk Risk Risk Risk & Regulators
Information Shariah Non- Regulatory/ Climate Customers Local

Technology Compliance Compliance Risk Communities
(IT) Risk (SNC) Risk Risk
inside this
report
01
KEY MESSAGES
6 Message from the Chairman

12 Message from the Group
Chief Executive Officer
02
OVERVIEW OF BANK ISLAM
22 Vision | Mission | TAAT Values

23 Who We Are
24 Our Presence
25 How We Are Structured:
Group Corporate Structured
26 What We Do: Core Businesses
28 2021 Key Highlights
28 Financial Highlights
29 Business Highlights
30 Awards & Recognition
32 Our Competitive Advantage
34 Significant Events 2021
03
VALUE CREATION AT BANK ISLAM
36 Our Approach to Value Creation

38 Realising VBI
39 Harnessing Capitals
42 Our Value Creating Business Model
44 Stakeholder Engagement
04 07
MANAGEMENT DISCUSSION AND ANALYSIS ACCOUNTABILITY
A. STRATEGIC REVIEW 160 Corporate Governance Overview Statement

186 Additional Compliance Information
46 Operating Environment & Key Market
187 Board Audit & Examination Committee Report
Trends
193 Statement on Risk Management and
54 Material Matters
Internal Control
58 Key Risks and Opportunities
209 Statement on Directors’ Responsibility
62 Strategic Roadmap: LEAP25
64 Strategic Performance Review
B. PERFORMANCE REVIEW 08
72 Financial Review from the Group Chief FINANCIAL STATEMENTS
Financial Officer
76 5-Year Financial Summary 211 Directors’ Report
77 5-Year Financial Highlights 218 Statement by Directors
78 Financing by Contract 219 Report of the Shariah Supervisory Council
79 Financing by Segment 225 Statutory Declaration
80 Simplified Statements of Financial Position 226 Independent Auditors’ Report
81 Statement of Value Added & Distribution 230 Statements of Financial Position
82 Quarterly Performance 231 Statements of Profit or Loss
83 Financial Calendar 232 Statements of Other Comprehensive Income
233 Consolidated Statement of Changes in Equity
C. BUSINESS REVIEW 237 Statements of Cash Flow
84 Consumer Banking 241 Notes to the Financial Statements
87 Deposits and Cash Management 375 Pillar 3 Disclosure
90 Commercial Banking
09
93 SME Banking
96 Treasury and Markets
97 Corporate Banking
100 BIMB Investment Management ADDITIONAL INFORMATION
103 BIMB Securities
435 Shareholdings’ Analysis
438 Properties Owned by BIMB Group
05 439 Directory
439 Directory of Main and Regional Offices
SUSTAINABILITY 446 Ar-Rahnu Branches
447 SME Hub
448 Bureau De Change
106 Sustainability Statement
449 Vehicle Financing Sales Hub
450 Subsidiaries of BIMB Group
06
LEADERSHIP 10
ANNUAL GENERAL MEETING
134 Corporate Information
136 Board Composition
451 Notice of the 39th Annual General Meeting
137 Board of Directors’ Profile
458 Statement Accompanying
143 Shariah Supervisory Council’s Profile
Notice of the 39th Annual General Meeting
146 Management Team’s Profile
459 Administrative Guide
155 Heads of Subsidiaries’ Profile
• Proxy Form
156 Regional Managers’ Profile
158 Organisation Structure
B A N K I S L A M M A L AY S I A B E R H A D
Message
from the
Chairman
6
Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information
I N T H E N AM E O F AL L A H MOS T
G R AC I O U S AN D M O S T MER C IFUL .
AN D S ALAM S EJ A HTER A
IN 2021, WE BECAME THE

ONLY PUBLIC-LISTED,
FULL-FLEDGED ISLAMIC
FINANCIAL INSTITUTION
IN MALAYSIA.
TAN SRI DR. ISMAIL HAJI BAKAR

Chairman
7
MESSAGE FROM THE CHAIRMAN
Dear Shareholders, ADVANCING PROSPERITY FOR ALL

On behalf of the Board of Directors, it gives me great pleasure At BIMB, we are confident of our ability to create sustainable
to present to you Bank Islam Malaysia Berhad’s (BIMB) first value for all our stakeholders. Central to this are our clear
Integrated Annual Report. This is my first statement for BIMB focus on meeting customers’ expectations, our strong
as a listed entity, since the completion of our restructuring market position and a full suite of Shariah-compliant product
exercise from our former parent company, BIMB Holdings offerings. We have taken a considered approach in the
Berhad (BHB). BIMB is now accorded full autonomy in development and delivery of products and services, taking
undertaking and pursuing our corporate and business into account societal needs, while ensuring the efficiency of
strategies, as Malaysia’s first full fledged pure-play Islamic our operations to continuously improve customer experience.
financial institution on the Main Market of Bursa Malaysia.
We continue to enhance our offerings and services, in line
This is an exciting moment for BIMB as the listing provides with the evolving banking landscape. In 2021, we launched
an advantageous position for BIMB to capitalise on the the DuitNow QR function on BIMB’s GO Mobile Banking
growth in Islamic finance and the Islamic capital market, App and GO Biz by Bank Islam, an app targeted at Small
and reinforces our efforts to expand our customer base. and Medium Enterprise (SME) and Micro, Small and Medium
With a market capitalisation of RM6.2 billion, we are well Enterprise (MSME) customers. Sharp shifts in consumer
positioned to deliver our five-year business strategy roadmap, preference to transact online have prompted us to further
LEAP25, which would redefine our growth and enable us accelerate our ongoing digitalisation initiatives.
to work in new ways to create stakeholder value.
Our efforts were recognised when we were awarded the Most
2021 was a year of renewed optimism, as well as uncertainties. Helpful Bank during COVID-19 in Malaysia and fifth in Asia
What was expected to be a year of recovery has brought Pacific, by The Asian Banker in May 2021. We also ranked
the world to a halt with new waves of COVID-19 variants fourth out of 55 Malaysian brands on KPMG’s Customer
weighing down on the crucial veins of the economy. Experience Excellence Survey 2021.
From uneven economic recovery to unequal access to
vaccines, from widening income inequalities to disruptions
in education, the pandemic had a disproportionate impact
on the vulnerable in 2021. Aligned with our vision as a Bank DEFERMENT AND ASSISTED
that Advances Prosperity for All, BIMB responded to the REPAYMENT SCHEMES
challenges faced by our customers and the community by
going beyond financial performance, standing alongside
each of them, offering them aid to ease their difficulties.
Prihatin
PEMULIH Flood
COMMENDABLE FINANCIAL PERFORMANCE Relief
Programme
During the year under review, BIMB delivered a commendable
performance on the back of higher fund based income
and lower impairment losses. We recorded a Group Profit
URUS Targeted
Before Zakat and Taxation (PBZT) of RM704.2 million, a
Repayment
decline of 3.3% mainly due to lower non-fund-based income
Assistance
and higher operating expenses. The Group has declared an
interim dividend of 10.93 sen per share for the year.
Our performance translates into an Earnings Per Share (EPS)

of 21.87 sen and a Net Return on Equity (ROE) of 8.4% (after PROVIDED ASSISTANCE TO OVER
tax and zakat). Our sustained dividend payout is reflective of
our unwavering efforts to withstand the year’s challenges, 154,000 CUSTOMERS
as we continue to leverage on our strong fundamentals to
achieve significant milestones. RM23
INVOLVING BILLION
8
Throughout 2021, to facilitate recovery from the pandemic, during the COVID-19 pandemic, when the use of digital
BIMB also provide assistance to its affected customers platforms for banking transactions became a necessity.
through various deferment and assisted repayment schemes,
such as PEMULIH, Targeted Repayment Assistance, URUS While we work to enhance our systems’ capability and stability,
and our Prihatin Flood Relief Programme. Through these as well as making inroads into improving our customers’
various deferment schemes and measures, BIMB supported access to our digital platforms, we have also taken measures
over 154,000 customers, involving RM23 billion, to help
to prevent unauthorised access to our customers’ personal
them get back on their feet.
information, ensuring they stay protected from unwarranted
actions by undesirable parties. BIMB constantly reviews its
BIMB also continued its focus on the socio-economic well-
security implementation to assess the vulnerabilities and
being of the country by sustaining income generation and
the financial resilience of the B40 segment and asnaf-owned control effectiveness, in addition to monitoring the latest
businesses facing the effects of the COVID-19 pandemic developments in the information security threat landscape.
via our iTEKAD and BangKIT micro financing programmes. We have made significant investments in updating our
I am proud to highlight that we have exceeded our initial technology systems and platforms, and taken steps to
goal under LEAP25 helping 4,765 beneficiaries through establish the necessary policies, processes and procedures
our Islamic social finance initiatives within the first year. to enhance our general effectiveness in providing a truly
secure banking experience for our customers.
BIMB’s Sadaqa House has continued to make inroads among
the public and its participating partners with more than We also took the necessary steps to inculcate strong
RM3.3 million collected for the benefit of various causes security awareness among our employees through frequent
and social projects. In 2021, we disbursed more than RM3.6 information security training programmes as an essential
million in aid to 4,905 beneficiaries. To this end, we have
part of BIMB’s security effort.
played our role in helping Malaysians bounce back from
a challenging climate, and we stand ready to do more in
For BIMB to remain relevant and competitive in this digital
2022 and beyond.
age, we have been proactive in addressing the concerns
of our customers and eliminating any threats that might
compromise their interest. We continue to keep abreast of
KEEPING CUSTOMERS SAFE ONLINE
the latest local and global trends, as we seek to become a
BIMB’s continued focus on digitalisation and automation of digitally-enabled bank, capable of providing innovative yet
its banking operational processes means that information secure digital banking solutions, and superior customer
security remains our priority. It gained particular urgency experience.
GREEN FINANCING OUTLOOK

UNDER LEAP25 STRATEGY, WE AIM
TO RAISE GREEN FINANCING TO
10 - 12%
OF TOTAL PORTFOLIO BY 2025.
9
MESSAGE FROM THE CHAIRMAN
COMMITTING TO SUSTAINABILITY We are also helping our customers to transition to greener

lifestyles, by increasing financing to areas not within the
Building on our core strength as a pioneer in the Islamic conventional definition of Green Financing, ranging from
banking and finance industry, we have been on a journey the purchase of electric vehicles to financing for households
incorporating principles of Shariah, Value-based Intermediation and small businesses that are switching to solar power.
(VBI) and ESG considerations in our products and service
offerings. We are committed in the mobilisation of our six Our approach to sustainability, Green Financing and
strategic objectives of Sustainable Prosperity, Values-based ESG-compliant financing and investing is part of our
Culture, Community Empowerment, Customer Centricity, comprehensive approach to growth, which recognises that
Real Economy and Digitalisation to position us in our next embracing ESG is not just the right thing to do, but it is
phase of growth and transformation. also good for business.
During the year, we took major steps to cement our

leadership in the areas of Green Financing and Shariah- ENHANCING CORPORATE GOVERNANCE
compliant ESG Investing, both identified as growth-drivers for
our business. BIMB already has one of the highest exposures BIMB is committed to upholding the highest standards of
to Green Financing within the Malaysian banking industry, corporate governance, in line with the strong values that we
with Green Financing accounting for approximately 4% of hold as a company. During the year, we implemented several
our total financing, which is well above the 1-2% recorded key policies and measures to not only align with regulatory
by most Malaysian banks. We are working to further build requirements but also to meet the high expectations of
on this strength under our LEAP25 strategy, to raise this to our stakeholders.
10-12% of our current portfolio by 2025, establishing BIMB as
a dominant player in Malaysia’s growth in Green Financing. As part of Board’s commitment to effective stewardship,
we undertook a comprehensive review of the Board Charter
and the Terms of Reference of the Board and the Board
Committees to ensure that they are up-to-date and in
line with the latest recommendation of the Securities
Commission’s Malaysian Code of Corporate Governance
(MCCG). We welcome the 2021 update of the MCCG for
companies to integrate sustainability considerations into their
strategy, which is very much in line with our commitment
to strengthen our sustainability governance, our corporate
strategy and our determination to play a larger role as a
responsible corporate citizen.
We carried out a review of the Board succession-planning

for the Group to ensure we meet the recommended best
practices on the tenure of Independent Directors and the
composition of Independent Directors. We also recently
signed up as a Corporate Advocate of the Malaysian chapter
of the 30% Club, a network of corporations that are working
together to increase women’s participation in the boardroom.
Our corporate advocacy in the Club will help us to leverage
on best practices in implementing new diversity, equity, and
inclusion (DEI) policies, in knowledge sharing and setting
diversity targets, while contributing to the larger plan of
promoting DEI in the Malaysian Islamic finance industry.
PEOPLE AT THE CORE OF OUR

TRANSFORMATION JOURNEY
Our colleagues, from those in our head office to those at
the frontlines of serving our customers and communities,
remain our most valuable asset. BIMB’s Live Well programme
which was introduced to promote our colleagues’ mental &
10
emotional wellness in 2020, was expanded to include physical, mobility efforts. All these are supported with continuous
spiritual and financial wellness last year. The programme learning programmes of blended learning modules that
was established to assist employees in addressing their go beyond the classroom.
personal and work-related challenges that may adversely
affect their job performance and personal well-being.
ACKNOWLEDGEMENTS
By providing all 4,731 BIMB employees access to Naluri, a
digital and customisable health solution, we have empowered At the end of a highly eventful year for BIMB, I would like
our colleagues to manage their own mental and physical to take this opportunity to express my deepest gratitude
health in the most effective ways. BIMB has also offered to BHB’s Board members and employees for their service
support by providing employees the solutions, insights, tools, and contribution over the years. They have played a vital
and access to relevant experts for them to seek professional role in maintaining BHB’s position as the premier and
help for their problems. successful Islamic financial holding company in Malaysia,
before handing over the torch to BIMB in October 2021.
The prolonged pandemic also presented us with an BHB’s investments and pioneering legacy have left an
opportunity to embrace a hybrid workplace model that indelible mark in the Islamic financial industry, which has
seamlessly combines remote and office work. We are been the stepping-stone for BIMB to shape its future as a
committed to investing in technology to enable better leading Islamic financial institution.
efficiency and accessibility to services that will produce
a more conducive working environment. HUMANE, our My sincere appreciation to my colleagues on the Board and
human capital management system introduced in 2021 has to BIMB’s senior leadership team. I speak for the entire Group
accommodated our evolving workforce needs. Being cloud that we are saddened by the loss of our beloved member
based, it allows efficient access to data and information, of the Board, Puan Noraini Che Dan. Her contributions to
streamlining our human capital management process, BHB and BIMB were invaluable and integral to the successful
contributing to better talent recruitment, and improved listing of the Group. My gratitude also goes out to Encik
learning and development experience for employees. Zahari @ Mohd Zin Idris who retired from the Board during
the year, for his service and unwavering commitment.
The Group’s efforts to improve internal capabilities have
been continuous. Our current focus on developing internal To all our stakeholders who have been an important part of
digital, leadership and professional certification aims to fill our journey thus far, I thank you for your continued support
our people development gaps, helping to upskill and re- and trust. And finally, my deepest appreciation goes to all
skill them to keep abreast with the latest requirements of our employees for the remarkable commitment they have
the finance industry. shown to BIMB, living our TAAT values and setting us in a
good position for our exciting journey ahead.
We accelerated digital literacy and adoption through an
in-house Digital Upskilling Programme with the intention
of nurturing our talent pool. With the establishment of our
Digital Academy in 2021, we will continue to identify and
build capabilities among our high potential talents, which Tan Sri Dr. Ismail Haji Bakar
will contribute to our succession planning and internal talent Chairman
11
Message
from the
Group Chief
Executive
Officer
BUILDING ON OUR CORE
STRENGTHS, BIMB AIMS TO BE
A CHAMPION IN OFFERING SHARIAH
ENVIRONMENTAL, SOCIAL AND
GOVERNANCE (SHARIAH-ESG)
TOTAL FINANCIAL SOLUTIONS
MOHD MUAZZAM MOHAMED

Group Chief Executive Officer
12
13
MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER
Dear Shareholders, resurgence of COVID-19 cases and the

banking industry itself continuing to
Bank Islam Malaysia Berhad (“BIMB undergo a fundamental transformation.
or “the Group”) continues to evolve
as a business and 2021 was a pivotal The year began with forecasts of robust
THE MALAYSIAN year for us. In October, we became economic growth at the domestic
ECONOMY EXPANDED a public-listed company, giving the and international levels. Bank Negara
Malaysian public their first opportunity
BY 3.1%; SUPPORTED to invest in Malaysia’s only public-listed,
Malaysia (“BNM”) projected that
Malaysia’s GDP would grow by 6% -
BY BNM MAINTAINING full-fledged Islamic banking group. 7.5%, in 2021, a marked turnaround
THE INTEREST RATE 2021 also marked the completion of f rom the 5.6% contraction in 2020.
the first year of our LEAP25 corporate The recovery was underpinned by
AT A RECORD LOW OF strategy that sets-out our goals and rising vaccination rates, the easing of
1.75% THROUGHOUT pathway for delivering sustainable value movement restrictions, the rebound in
for our shareholders as we navigate economic activity and the continued
THE YEAR, WITH what is increasingly being called the impact of the government’s stimulus
THE LOW COST OF Next Normal. spending.
FUNDING SUPPORTING
This favourable scenario was projected
A REBOUND IN OPERATING ENVIRONMENT to support the performance of the
CONSUMPTION AND Our transformation journey in 2021 Malaysian banking sector. However,
the strong growth in the domestic
BUSINESS INVESTMENT continued against a challenging
backdrop, as the Malaysian economy economy was undermined by the
faced renewed headwinds f rom the emergence of the highly-infectious
Delta and Omicron variants of COVID-19
in the second-half of the year. The
resulting restrictions on movement
and economic activity led to softer
economic conditions. Despite these
challenges, the Malaysian economy
expanded by 3.1% for the year as a
whole.
The expansion was supported by

BNM maintaining the interest rate
at a record low of 1.75% throughout
the year, with the low cost of funding
supporting a rebound in consumption
and business investment. However,
the low-rate environment has also led
to compressed interest rate margins
across the banking industry, which
has negatively impacted the banking
sector’s profitability.
Notwithstanding these challenges, the

Malaysian banking industry showed
remarkable resilience during the year.
Financing growth in 2021 returned to
pre-pandemic levels, rising by 4.1%, up
from the 3% financing growth the year
14
be a champion in offering Shariah

Environmental, Social and Governance
(“Shariah-ESG”) total financial solutions
and to establish its leadership in social
Sustainable Values-based finance and digital banking.
Prosperity Culture
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,
SIX of growing our asset size to over
Community RM100 billion, doubling our ESG-rated
Digitalisation PILLARS Empowerment financing, sustaining superior industry
OF LEAP25 Return-on-Equity, increasing our non-
fund-based income contribution,
creating a positive social impact and
retaining high-performing talent.
These targets are anchored by the

six pillars of Sustainable Prosperity,
Real Customer- Values-based Culture, Community
Economy Centricity Empowerment, Customer-Centricity,
Real Economy and Digitalisation. To
achieve this aim, we are configuring
our business around delivering cutting-
edge products, enhancing customers’
experience, accelerating our digital
initiatives and deepening our strategic
before. At the same time, the ratio Alongside the unique challenges collaborations.
of non-performing financings in the caused by the COVID-19 pandemic,
Malaysian banking sector also declined we have seen the acceleration of larger As we navigated the challenging
to 1.4% in 2021, from the 1.6% recorded trends that are reshaping the banking backdrop of 2021, we actively executed
the year before. The improvement was industry itself. The shift to digital growth strategies that are aligned
driven by the household segment as banking, the disruption caused by the with our LEAP25 targets. During
banks continued to support viable rise of FinTech firms and the growing the year, we expanded our Green
borrowers facing temporary financial pressure for financiers to incorporate Financing portfolio, actively pursued
diff iculties by offering repayment ESG considerations into their lending the non-Muslim consumer market and
practices are reshaping the banking accelerated digitalisation across all
assistance packages.
landscape itself. areas of our business and operations.
BIMB continued to outperform the The effective execution of our strategy
banking sector as a whole in both key had a visible impact on our business
STRATEGY AND performance and we aim to pick up
areas. Our non-performing financing
ratio for the year stood at 0.96%, even TRANSFORMATION the pace of transformation going
forward.
as our financing growth for the year At the heart of our strategy is our
rose by 6.4%. The strength of our commitment to our values and purpose
While we have now entered a new
performance in these areas reflects as an Islamic banking institution. The
phase of our growth strategy, our
the effectiveness of the LEAP25 growth strong ethical framework gives us a
intention remains the same – to create
strategy that we have implemented. major asset as the world embraces
sustainable value for our shareholders
values-based f inancing. Building on
and delivering on our aim of being the
our core strengths, BIMB aims to
Bank that Advances Prosperity for All.
15
OUR PERFORMANCE SEGMENTAL NET INCOME simplifying our financing process by

implementing the Consumer Financing
I am pleased to share with you that
CONSUMER BANKING: Process Review. We also intensif ied
RM1.2
BIMB delivered a commendable set
digitalisation for lead generation
of operational and f inancial results,
via digital platforms to deliver more
billion
despite the challenging operating
convenient and personalised services
environment and growing digital
to customers.
disruption in the banking landscape.
Total revenue for the year stood at Our Consumer Banking saw minimal
RM3,167.8 million. This marked a demand for assistance under the
CORPORATE & COMMERCIAL
RM415.6
decline of 5.2% from 2020, reflecting Financial Management and Resilience
the subdued economic environment Programme (“URUS”) programme during
million
and the continued impact of low the year. As massive floods hit the
interest rates. country in late November 2021, BIMB
responded by launching its Prihatin
For 2021, we achieved a Profit Before Programme for Flood and Disaster Relief
Tax and Zakat (PBZT) of RM704.2 Facility (“DRF”) to assist flood-affected
million, which was 3.3% lower than the TREASURY individuals and business f inancing
previous year. The decrease in PBZT
during the year was mainly due to RM241.4 customers in need of help. In line with
our values, we will continue to offer
lower non-fund-based income, which
was attributable to lower net gain from
million financial support to customers in need,
as parts of society continue to feel the
the sale of investment securities, and strain from the impact of COVID-19.
higher operating expenses. The higher
operating expenses were inevitable Our Corporate and Commercial Banking
driven, mainly, by higher net fund-based business delivered a strong performance
as we increased our investment in
income during the year. as our customer-centric approach,
technological inf rastructure for our
digitalisation agenda. This was offset by strong commercial relationships and
Our Consumer Banking business focus on growth sectors allowed us
a lower modification loss arising from
continued to build on its core strengths, to capitalise on improvements in the
the financing moratorium granted to
with our market share rising from 4.7% to national economy. Net income for the
customers. 4.8%. Growth in our Consumer Banking year rose by 6.5% to RM415.6 million.
financing portfolio was driven, mainly, by
the rise in home financing and this trend Throughout the year, Commercial
SEGMENTAL PERFORMANCE is set to continue. Malaysia has a young, Banking acted decisively to support
The impact of our transformation favourable demographic that supports our existing customers affected by the
strategy was visible across all areas of continued household formation, which pandemic, including through assistance
our business segments during the year, will underpin demand for our Islamic in instalment deferment, as well as by
as we continue to focus on capturing home financing products. the rescheduling and restructuring
new markets, delivering a truly engaging of facilities. These measures were
customer experience and leveraging on Our strategy for Consumer Banking in line with the f inancial assistance
technology to drive growth. recognises that we need to continue programm es introduced by th e
diversifying our offerings to keep Government to support the national
Our Consumer Banking business delivering growth. Among the key economy. The performance of our
grew strongly, despite the challenging strategies that we implemented in 2021 Commercial business was negatively
environment. Consumer Banking was to expand our targeting of the non- impacted by the overhang in the
remains our biggest earner and we Muslim market segment and actively property market in 2021. However, we
have continued to innovate in this work to grow our Green Financing continued to develop new opportunities
area, driving its continued growth. Net portfolio. Competition for these markets in property f inancing by targeting
income for the segment rose by 13.4% remains intense and we implemented growing sectors, such as affordable
to RM1.2 billion in 2021. The rise was key measures to drive growth, including housing. We also expanded our Green
16
Financing initiatives beyond renewable

energy and towards the wider green
technology and green economy
ecosystem. These will remain key growth
areas for our Corporate and Commercial
Banking business as we move forward.
Commercial Banking will continue to
build on our existing strengths while
executing strategies to capture market
share in selected high-value and high-
growth target segments.
Our Treasury business registered net

income of RM241.4 million for the
period. The f igure was 47.1% lower
than the previous year, reflecting the
impact of the challenging economic
environment. The decline in Treasury’s
net income for 2021 was attributable
to lower net gain f rom the sale of
investment securities.
Going forward, Treasury will maintain a

cautious approach to trading activities
and remain prudent in its investment
portfolio management and rebalancing
activities. Our focus will be on growing
GO by Bank Islam
fund-based income potential and
implementing strategies to enhance TOTAL NUMBER OF
yield pick-up. NUMBER OF FINANCIAL TRANSACTIONS
ACTIVE USERS
849,000 47
million
ACCELERATING DIGITAL
TRANSFORMATION 79%
Digitalisation is one of the six pillars
supporting our LEAP25 growth strategy
and we are focused on enhancing our
digital offerings, so that we are not just The banking landscape is evolving rapidly with the growth of online banking,
on par with our peers and competitors e-payment systems and the rise of the FinTech companies, as consumers
but emerge as a clear leader in digital embrace online banking and e-commerce. The shift towards online transactions
banking. Central to our digital strategy has been greatly accelerated by the pandemic and is forcing businesses to
is the effective leveraging of the vast develop new strategies that adapt to and anticipate the changes, and BIMB has
amounts of data that we generate, in taken decisive action to capitalise on this opportunity.
order to deliver a seamless and hyper-
personalised customer experience This shift in consumer preference and the enhancements that we have already
across all our channels. made to our digital offerings have driven rapid growth in our digital operations,
with more than 90% of our transactions now conducted through electronic
channels. The number of customers using our internet banking rose by 22%
during the year, to 1.5 million, while the number of internet banking transactions
grew even faster, rising by 50%.
17
The growth in our mobile banking Our digital growth strategy goes far beyond collaborations and enhancements. In
services has been even more impressive. 2020, we established the Centre of Digital Experience, or CDX, to drive innovation
Our multiple award-winning GO by by experimenting with new business models and technology, and to assess the
Bank Islam mobile banking app saw feasibility of their adoption by BIMB. CDX has embraced the opportunities for
massive growth as we continued to roll- disruptive innovation that have arisen during the pandemic. We recognise that
out new features. The number of active the shift to new technologies carries execution and security risks and we have
users on GO by Bank Islam increased acted to minimise these risks by ring-fencing CDX from the rest of BIMB.
by 79% in 2021, to reach 849,000. At
the same time, the total number of We have also continued to leverage on digitalisation to drive operational efficiency
transactions on GO by Bank Islam across our company through increased process automation. A key initiative during
tripled to reach 47 million, far exceeding the year was the accelerated implementation of Robotics Process Automation,
our target of 21 million transactions for which has allowed our staff to automate business processes on their own, cutting
the year. As we move forward, we will down on the number of work hours spent on routine tasks.
continue to build on this momentum
by accelerating the roll-out of new
features on GO by Bank Islam.
We further extended our mobile

banking offerings with the launch of
the GO Biz by Bank Islam mobile app
in July, which is targeted at SMEs and
micro businesses. The app allows small
merchants to manage their day-to-day
business quickly and securely f rom
their mobile devices. The app has been
well-received and we on-boarded more
than 7,000 merchants by the end of
the year.
Even as we have grown our digital

banking services, we have seen the
traditional banking and financial model
face serious disruption from the rise of
the FinTech start-ups. The FinTech’s
have rapidly leveraged on their
greater agility and an accommodating
regulatory landscape to drive innovation
in the industry. At BIMB, we see this
as an opportunity and we have actively
embraced collaboration with selected
FinTech’s in order to sharpen our own
digital delivery. We aim to amplify
the impact of these collaborations by
leveraging on our unique advantages,
credibility, large customer base, access
to huge amounts of data and financial
resources. Above all, we aim to enhance
the impact of these collaborations by
leveraging on the unique branding
and position that we hold as Malaysia’s
leading Islamic bank.
18
LOOKING AFTER OUR PEOPLE and keep the right people. To that end, we continue to work hard on positioning
AND THEIR DEVELOPMENT BIMB as an employer of choice and our success in this area is seen in the
consistently high rankings that BIMB receives in graduate employment surveys.
Our ability to effectively execute our
growth and transformation strategy is
dependent on having the right people EMBEDDING SUSTAINABILITY
in our workforce. To deliver on this, INTO OUR BUSINESS
we have aligned our overall workforce
strategy with the aspirations of the Our commitment to sustainability is deeply embedded in our business model as
Group’s LEAP25 strategic plan. For an Islamic bank and value-based intermediary. Islamic finance and ESG investing
offer complementary capital-raising and investment approaches with many shared
BIMB to progress and remain relevant
principles, such as being a good steward to society and the environment. This
in the face of the ever-challenging
strong confluence of principles allows us to use a market-based approach to
environment and increasingly
supporting our sustainability goals. As a key part of delivering this goal, BIMB is
competitive marketplace, developing
working to integrate a comprehensive ESG framework into our credit assessment
our peoples’ capabilities, as well as
process, which we aim to implement in 2022.
creating the appropriate culture and
values are of utmost importance. One of the key drivers for our business growth and achieving our sustainability
goals is our focus on growing our Green Financing portfolio, which stood at more
Digitalisation is at the heart of our than RM2 billion at the end of 2021. Much of this financing has been directed to
corporate transformation and to ensure the Renewable Energy Green Building sector, thus far. As we move forward, we
that our people are armed with the are now actively aiming to expand our presence in the wider green economy
right skills to continue contributing to ecosystem, with a focus on mini-hydro and solar farm projects.
the continued growth of the bank, we
have stepped-up investment in digital
training. In 2021 we established our in-
house Digital Academy and expanded
our Digital Upskilling Programme, which
offers training and certification, as we
work to build a workforce that is both
customer-focused and digitally-savvy.
Digitalisation is also the key in us being

able to better serve our employees.
The implementation of HUMANE is
specifically geared towards fulfilling our
human capital needs via a cloud-based
self-service digital platform. With a user-
friendly interface, the platform gives
our employees the ability to manage
their training progression as well as
access career-related details such as
payroll information, benefits and leave
entitlements.
Competition for top talent remains

fierce, and BIMB continues to refine
our recruitment and reward structures
to ensure that we are able to attract
19
A key concern of Islamic finance is to

eliminate poverty and serve human
welfare, which aligns strongly with
the objectives of the UN’s Sustainable
Development Goals (“UNSDG”). We
took a landmark step in this direction
during the year, when BIMB Investment
launched Malaysia’s first Waqf Featured
Unit Trust Fund in March 2021. The Fund
is an inclusive economic instrument
based on philanthropic principles
that aims to provide underserved
members of society with access to
quality essential services and is
recognised as a Qualified Sustainable
and Responsible Investment (“SRI”)
Fund under the Securities Commission
(SC) Guidelines on Sustainable and
Responsible Investment Funds. With
its launch, BIMB Investment became
the first fund management company
to structure and design a waqf unit
trust fund following the introduction of
the Waqf-Featured Fund Framework by
the SC in November 2020. As we move
forward, we will continue to innovate
in the area of social finance, not just
because it makes good business sense,
but also because it is an essential part
of our identity as an Islamic banking
BNM forecasts the Malaysian economy to grow at 5.5% - 6.5% in 2022. The growth
and financial group.
of the economy will be supported by the pump-priming impact of Budget
Alongside integrating ESG considerations 2022. The total budget of RM332.1 billion, which includes targeted spending
into our business, we are also working programmes, will have a strong multiplier effect across key sectors of the
to reduce the negative environmental economy. Additionally, the further reopening of international borders will also
impact of our operations. We have boost Malaysia’s vital tourism industry, with strong positive spillover effects on
launched a green branch initiative that other key sectors of the economy.
will see the introduction of solar panels,
rainwater harvesting, energy efficient In addition, the launch of the government’s 12th Malaysian Plan will further
lighting systems and auto sensors at catalyse growth over the period 2021 to 2025. The plan emphasises growth in
selected BIMB branches. The concept high impact projects in infrastructure, technology, and efforts towards greening
will be trialled at our Temerloh branch. the economy. Under the Plan, the contribution of renewable energy within the
national energy mix is set to increase, which will support our push to expand
our Green Financing portfolio.
OUTLOOK
BIMB anticipates a stronger performance The national economy will also continue to benefit from the prevailing low
in the year ahead, supported by a interest rate environment. Many analysts expect BNM to maintain its Overnight
rebound in the Malaysian economy Policy Rate (“OPR”) at the current record low of 1.75% throughout the first-half
and higher growth in our targeted of 2022, and see the growing possibility of a rate-hike in the second half of the
financing areas and we have actively year, in line with the global trend towards monetary tightening.
positioned ourselves to capitalise on
the continuing recovery.
20
The projected rebound, however, will customer-centricity at the heart of

not mean a return to the status-quo- our business, widening our offerings
ante and BIMB is actively positioning and embedding digitalisation into all
itself to capitalise on key trends that areas of our business and operations.
will define the next normal. This is how we will unlock new growth
opportunities and this is how we will
continue building sustainable value for
Sustainability considerations will
our stakeholders.
continue to move to the centre of
business and f inance, with the SC
integrating them into their latest
updates to the Malaysian Code of ACKNOWLEDGEMENTS
Corporate Governance and BNM placing Firstly, I wish to thank our customers
the transition to a greener economy at
for the support that they have shown
the heart of its new five-year Financial
us as we continue our transformation
Services Blueprint 2022 – 2026. We
journey. I would also like to express
welcome these initiatives as they play
my appreciation to our shareholders,
to our strengths and are aligned with
who have placed their trust in us. We
our own business strategy. Competition
in the area of Green Financing will will continue working to be worthy of
intensify as banks increase the target their confidence.
size of their green portfolios. However,
we believe that our strong track record I wish to express my particular gratitude
in Green Financing, deep network of to our Chairman and Board of Directors
relationships in the Malaysian corporate for their effective stewardship of
world and our established position our company as we navigated the
as a values-based lender gives us a challenges of the last year. I also wish
competitive edge in this area. to thank my colleagues in the BIMB
leadership team for the excellent job
One of the most lasting impacts of that they have done. I look forward
the COVID-19 pandemic has been the to continuing to work with you in the
Malaysia’s economic rebound will also be
growth of digitalisation. The digital year ahead.
supported by continued global growth, economy accounted for 22.6% of
with the International Monetary Fund Malaysia’s GDP by the end of 2021,
Finally, I wish to express my gratitude
(IMF) projecting that world economy but is projected to grow to 25.5%
to all members of our extraordinary
will grow by 4.4% in 2022. Key domestic of GDP by 2025, driven by a rise in
workforce. It is your dedication that
industries, such as manufacturing and e-commerce and digital finance. To
drives our success.
services, are set to benefit from the capitalise on this opportunity we will
global economic recovery as Malaysia continue to invest in ensuring that
is highly integrated into global supply we have the right people, the right
chains. Questions about the strength technology and the right strategy to
deliver the customised solutions that MOHD MUAZZAM MOHAMED
of the global recovery persist, though.
digital customers demand. Group Chief Executive Officer
The ongoing disruption in global supply
chains, rising inflation and energy prices,
and growing geopolitical tensions In conclusion, as we move forward,
centred on Eastern Europe all add BIMB is focused on our goal of
being The Bank that Advances
elements of uncertainty to the global
Prosperity for All. To deliver on this,
growth projections. Notwithstanding
we will continue to accelerate the
these risks, 2022 looks set to be a year
transformation of our company in line
of continued recovery.
with our LEAP25 strategy by putting
21
VISION
THE BANK THAT
ADVANCES
PROSPERITY
MISSION
TO PROVIDE
FOR ALL SOLUTIONS THAT
DELIVER VALUE
OUR BRAND ASSURING TRUST

PROMISE DELIVERING VALUE
TAAT Values
Think Act with Advance Take
Customer Integrity Beyond Charge
•• We ensure customer •• We adhere to our •• We strive to •• We are self-driven

value is central to all religious, moral and constantly improve and will always step
the decisions we make ethical principles and innovate all parts up to overcome any
•• We serve our •• We strive to do what of our business challenges
customers with is right at all times in •• We respond and •• We work as one and
integrity, care and accordance with laws adapt quickly to make things happen
consideration and regulations possibilities together
•• We aim to exceed our •• We treat each other •• We embrace curiosity, •• We act responsibly
customers’ with respect and learning and new and with courage
expectations honesty ideas
22
Key Message Overview Value Creation MDNA Sustainability Leadership Accountability Financial Additional Information
WHO
WE ARE
BIMB is Malaysia’s first public listed Islamic Bank on the Main Market of Bursa
Malaysia Berhad. Established in July 1983 as Malaysia’s first Islamic Bank, BIMB
has 141 branches and more than 900 self-service terminals nationwide. As a full-
fledged and pure-play Islamic bank, BIMB provides banking and financial solutions
that strictly adhere to the Shariah rules and principles and are committed to
the ideals of sustainable prosperity and ESG values. The core subsidiaries of the
BIMB Group are pioneers in various Islamic financial services, including investment
and stockbroking, namely BIMB Investment Management Berhad and BIMB
Securities Sendirian Berhad.
At BIMB, we are driven by our purpose to create opportunities and make lives
better for everyone. We do this by offering end-to-end financial solutions that
fulfil our customers’ diverse needs and provide the platform for our stakeholders,
including our people, investors and communities, to prosper.
As the leading and pioneering Islamic Bank in Malaysia, we bring a unique

perspective to the financial landscape, with a commitment to nurturing responsible
growth and progress. Using our capability, expertise and experience, we help
those we serve achieve success and ultimately build a sustainable future for all.
TOTAL EMPLOYEES
MARKET
4,731
CAPITALISATION employees
RM6.2 TOTAL CUSTOMERS
billion
4.4
million
REVENUE
RM3.2 DIVIDEND PAID

billion
10.93
sen
PROFIT BEFORE
ZAKAT & TAX
RM704.2
million
23
OUR
PRESENCE
The first Islamic Bank

Northern
Region established in Malaysia
29 Eastern and Southeast Asia
Branches Region
27
Branches 141
Branches
Southern
Region
26
Branches
Central
Region
46
Branches East
Malaysia
13
Branches
Total of Self-service
Cash Recycler Automated
Terminals (SST)
Machines Teller Machines
Nationwide
947 496 451
24
HOW WE ARE STRUCTURED

AS AT 31 MARCH 2022
48.28% 13.52% 6.63% 4.40% 27.17%

TABUNG HAJI
OTHER
LEMBAGA EMPLOYEES AMANAH SAHAM PERMODALAN SHAREHOLDERS
TABUNG HAJI PROVIDENT FUND BUMIPUTERA NASIONAL BERHAD
BOARD
BANK ISLAM
MALAYSIA BERHAD
100% 100% 100% 100%
BIMB INVESTMENT BANK ISLAM TRUST

AL-WAKALAH NOMINEES FARIHAN CORPORATION COMPANY (LABUAN) LTD
MANAGEMENT BERHAD (TEMPATAN) SDN BHD
SENDIRIAN BERHAD
100% 100% 100%
BIMB
HOLDINGS (11 2 3 3 0 -P )
SDN BHD BIMB SECURITIES SYARIKAT AL-IJARAH

(HOLDINGS) SDN BHD SENDIRIAN BERHAD
51.0% 100%
BIMB
securities OFFSHORE
BIMB SECURITIES 49.0% COMPANY
SDN BHD MANAGEMENT
SERVICES
SDN BHD
100% 100%
BIMSEC BIMSEC
NOMINEES NOMINEES
(ASING) (TEMPATAN)
SDN BHD SDN BHD
25
WHAT WE DO
CORE BUSINESSES
CONSUMER Strengths and Differentiation:
BANKING Substantial public impression for

Competitive
Comprehensive suite of services financing rates Al-Awfar product that
that include deposit and in the market generates good returns
through attractive prizes.
personal investment products,
bank card solutions, financing
products including personal,
home and vehicle, and
Convenience for Award-winning debit
transactional banking services.
financing customers card solutions with
through our appealing co-branding
“Doorstep initiative.
Banking” service
COMMERCIAL Strengths and Differentiation:
AND SME Customised Strong rapport with

BANKING financing facilities strategic partners for
that cater to comprehensive
A wide range of business differing client financial solutions
financing facilities, catering to needs
commercial vendors and SMEs,
which include vendor financing,
Innovative Provision of special
business premises financing
offers for different programmes to
and contract financing service.
customer appetite. nurture SME
entrepreneurs
26
CORPORATE Strengths and Differentiation:
BANKING
Solid experience
AND TREASURY
Highly ranked team of
qualified in facilitating projects as
professionals with the Lead Arranger
Full range of wholesale banking
required competency to and Book Runner
solutions including investment
deliver the desired
banking and financing facilities,
financial results
money and capital markets,
currency conversion and Technical expertise in structured and project
advisory services. financing, especially in the green and
renewable energy sector.
BIMB Strengths and Differentiation:
INVESTMENT bank-backed asset management

The only
MANAGEMENT company in Malaysia to offer comprehensive
(SUBSIDIARY) Shariah-ESG funds and investment solutions.
A full-fledged fund management

company with a comprehensive
BIMB Arabesque-i Global Dividend Fund 1
range of investment solutions,
consistently ranked first for the past three years
in terms of Total Overall Returns and Consistent Return,
including advisory.
and currently the largest Shariah-ESG Global
Sustainable and responsible
Equity fund in Malaysia.
investment solutions that are fully
compliant with Shariah rules and advanced AI technology and Big
Adoption of
regulations, and in accordance Data analytics methodology makes for efficient
with ESG principles. management of funds, leading to consistently better
returns and responsible investment portfolio.
27
2021
KEY HIGHLIGHTS
FINANCIAL HIGHLIGHTS
PROFIT BEFORE TOTAL

ZAKAT AND TAX ASSETS
RM704.2
million
RM80.2
billion
(2020: RM 728.2 million) (2020: RM 74.6 Billion)
RETURN ON CASATIA
EQUITY RATIO
11.1%
(2020: 12.1%)
39.6%
(2020: 36.1%)
GROSS IMPAIRED ASSET

FINANCING RATIO GROWTH
0.96%
(2020: 0.67%)
7.4%
(2020: 10.4%)
REVENUE FINANCING
CONTRACTION GROWTH
-5.2%
(2020: -8.3%)
6.4%
(2020: 10.5%)
28
BUSINESS HIGHLIGHTS
HUMANE, became the first

bank in Malaysia to
cloud
-based implement a cloud-based
self-service human capital
management solution
Launch of GO Biz by
Bank Islam app for
business users
Crowned as the Strongest

Islamic Retail Bank in Malaysia
2021 by Cambridge IFA
Expansion of BangKIT
microfinancing facility to
youth and university
students entrepreneurs
First bank in Malaysia to

deploy mobile onboarding
(MOB) channel for retail
customers
29
BUSINESS/SUSTAINABILITY/CORPORATE SOCIAL RESPONSIBILITY (CSR)

RELATED
• Halal Financial Excellence Award, World Halal Excellence Awards 2021
• Best Islamic Finance Awards 2021
• Best Islamic Asset & Fund Manager
• Best Risk-Adjusted Returns
(ESG Principle Investments Only)
• Malaysia National Business Awards 2021
• Global Finance - World’s Best Islamic Digital Banks 2021
• Global Banking & Finance - Most Innovative Islamic Retail Banking
App Malaysia 2021
30
AWARDS &
RECOGNITION
• Payments Network Malaysia (PayNet) 2021 EMPLOYER/EMPLOYEE RELATED
• Best FPX Bank • 2021 Most Preferred Graduate Employer,
• Best FPX Acquirer Graduates’ Choice Award
• Best JomPAY Acquirer • Top 5 in Banking
• Best FinTech Robo Mobile Applications Malaysia, • Malaysia’s Most Preferred Employer, Graduan
The Asset ASEAN Awards Brand Awards 2021
• Best Invest Mobile Application • 2nd Runner Up, Banking & Finance
• Lead Manager Award 2020, RAM Ratings • Most Inspiring Leader, Employee Experience
Awards 2021
• The Company of The Year Awards for
Outstanding Community Support 2021,
CSR Malaysia
31
Banking on
Shared Success:
Advancing
Prosperity for
All
The Region’s
First Full-
OUR Fledged
COMPETITIVE Islamic Banking
ADVANTAGE Institution
Robust
Shariah
Governance
Framework
32
Sizeable Green Dedicated Centre

Financing Portfolio, of Social Finance
targeted to double - Group Financial
Shariah-ESG assets
Inclusion
by 2025
Malaysia’s World’s 3rd Largest Global

Strongest Shariah-ESG Equity Fund
Islamic Retail
Bank
for 2021
(accorded by
Cambridge IFA)
Malaysia’s Largest
Network of Dedicated
Islamic Banking Channels
Values-based Strong balance sheet

Culture, with and performance
emphasis on track record, with a
Shariah Goals and AA3/Stable/P1 rating
VBI Principles by RAM Ratings
33
SIGNIFICANT
EVENTS 2021
8 14 17
11 Feb Feb Feb
Jan
Deployment of MoU signing Appointment of
Contribution of RM400,000
end-to-end mobile ceremony with Noor TM ONE as digital
from Sadaqa House’s fund
onboarding Luminous to offer partner to accelerate
for humanitarian and flood
channel to provide banking facilities BIMB’s digital
relief efforts in several
door-step banking through digital transformation.
affected states.
experience. application called
TheNoor.
24 8 2 6
Aug Oct Dec Dec
Virtual MoU signing BIMB became the first Launch of “Pay MoU signing ceremony
ceremony on pure-play, full-fledged & Win with DD with the Bumiputera
the collaboration Islamic financial institution (DirectDebit)” Agenda Steering Unit
between BIMB listed on the Main Market campaign in (“TERAJU”) for the Awqaf
and SME Corporation of Bursa Malaysia, taking collaboration with Ummah Financing
Malaysia. over the listing status PTPTN. Programme for the
from BHB. provision of waqf project’s
financing.
34
22 25 5 9
Mar Mar Apr Apr
Launch of MoU signing ceremony Launch of BIMB Launch of JKMPay,

BIMB–ARABESQUE with Malaysian Youth Investment’s a cashless
Global Shariah Council to extend Makmur MyWakaf payment assistance
Sustainable Equity BangKIT microfinance Fund. project by Social
Fund (BGSEF). facility to the youth Welfare Department
entrepreneur segment. (“JKM”).
29 9 22
June May Apr
MoU Signing Ceremony Contribution of 11 housing units to Media briefing on the

with Halal Development selected asnaf in Kuala Lumpur progress of
Corporation Berhad for the through Baiti Jannati (My Home, My the Group’s restructuring
introduction of GO Halal Paradise) programme in collaboration plan and LEAP25 five-
Fund. with Kuala Lumpur City Hall (“DBKL”) year business strategy.
and the Ministry of Federal Territories.
MoU signing ceremony

31 with Malaysia External
Dec Collaboration Trade Development
with Universiti Corporation (MATRADE)
Teknologi Malaysia for the provision of
(UTM) to provide customised solutions
solar-powered for SMEs and exporters
electric supply to a in conjunction with
fishing community Malaysia
International Halal
in Johor.
Showcase
31 (“MIHAS”) 2021.
Dec
35
OUR APPROACH
TO VALUE CREATION
1
ANALYSE
OPERATING ENVIRONMENT See pages 46 to 53 STAKEHOLDER ENGAGEMENT See pages 44 to 45
We constantly monitor and evaluate our operating We conduct regular engagements with stakeholders in order
environment to understand what is needed to enable us to gain insights into their key needs and interests and to
to thrive in today’s dynamic banking environment. Key respond accordingly.
market trends affecting BIMB’s business are:
• Moderate Economic Recovery Customers Local Communities

• Interest Rates and Other Financial Consequences
• Digitalisation Employees Investors
• Workforce Challenges
• Sustainability Concerns and Climate Change
Government &
• Geopolitics Regulators
2
FORMULATE
MATERIAL MATTERS See pages 54 to 57
We apply the principle of materiality by focusing on the issues, challenges and opportunities that materially impact
our business and our ability to create value for our stakeholders.
Responsible Finance Ethical Practice and Reporting
Inclusive Growth Islamic Finance and Knowledge Sharing
Talent Enrichment
3
EXECUTE
CAPITAL RESOURCES See pages 42 to 43
Financial Intellectual
We drive capital appreciation for sustainable growth We promote a values-driven culture and develop
by reinvesting income and earnings that we knowledge-based intangible assets that sustain our
generate back into our core business. competitive edge in the market.
Manufactured Human
We develop and manage a broad range of physical Our people are at the heart of our organisation. We
assets and channels that enable us to deliver nurture the skills and knowledge of our employees
financial services and meet our stakeholders’ needs. and have built an inclusive culture that enables them
to drive our growth.
36
Our success as a business is closely linked to the progress of the people, communities and businesses we serve; and as a
stakeholder-centric organisation, BIMB strives to create value for everyone impacted by our business. We deliver this through
our integrated model that recognises the connectivity and interdependency of the many factors that impact our ability to
create stakeholder value, both now and into the future. This section describes our value creation story, which encompasses
a range of factors, including our operating environment, stakeholder expectations, the capitals we utilise, our responses to
the risks and opportunities that arise, and the overarching strategy that we have implemented.
RISKS & OPPORTUNITIES See pages 58 to 61
We maintain a robust risk management framework that enables us to mitigate risks and capitalise on the opportunities
that we encounter in the course of business, and which underpins our effective value creation model.
Risks identified:
Credit Information Technology (IT)
Market Shariah Non-Compliance (SNC)
Liquidity Regulatory/Compliance
Operational Climate
Sustainable Community
STRATEGY See pages 62 to 71
Prosperity
SP CE
Empowerment
We have develop e d a
comprehensive corporate Values-based Real
strategy that incorporates our Culture
VBC RE
Economy
b u s in e s s o b j e c t i v e s an d
stakeholder needs, as well as
clear performance benchmarks,
to drive our growth and create Customer-
CC D Digitalisation
sustainable value. Centricity
4
VALUE CREATION
WE CREATE SUSTAINED
Social and Relationship VALUE FOR ALL OUR
We build strong stakeholder relationships that are
critical to our business success, while contributing STAKEHOLDERS,
meaningfully to the communities in which we
operate ENABLING US TO REALISE
Natural
OUR STRATEGIC VISION
We work to minimise our environmental impact by OF LEAP25.
optimising the use of the natural resources required
for our operations.
37
SUSTAINABLE PROSPERITY
•
Emphasis on strong financial results across the board
•
Focus on fee-based business activities and growing wholesale banking
portfolio
•
Implementation of Integrated Wealth Management Business Model
•
Grow green economy portfolio with incorporation of ESG considerations
•
Enforce cost management, optimisation and savings Initiatives
DIGITALISATION
•
Active digitalisation
through various CUSTOMER-
programmes covering CENTRICITY
channel, data
governance and •
Promote proactive
business growth service culture with
•
Enhance mobile focus on customers’
banking proposition satisfaction at all points
with GO by Bank Islam •
Transformation journey
mobile app to towards superior
incorporate additional customer experience
functions to cater to the •
Emphasis on all-
broadening customers’ encompassing wealth-
need and segments creation solutions for
REALISING
•
Strengthen the core retail customers
enabler and IT •
Deliver operational
infrastructure excellence
•
Centre of Digital
Excellence to provide VBI •
Develop analytics
capability
novel digital banking •
Communicating with
proposition empathy, reinforcing
•
Engaging and adopting trust and establishing
new ways of working credibility with
through deployment of customers during
new and emerging challenging times
technologies
VALUES-BASED CULTURE
COMMUNITY
•
Agility and adaptation to new
EMPOWERMENT
ways of working in light of
•
Uplift social finance current environment
nurturing through •
Strengthening the talent pool
application of waqf, zakat, REAL ECONOMY and leadership bench
sadaqah and other related •
Reinforcing risk and compliance
•
Promote programmes
instruments within the culture
and collaborations to
financial landscape •
Organisational construct to
make inroads in the focus
•
Focus on community- deliver through widening of the
areas
based projects workforce capability, from
•
Grow financing portfolio
•
Increase strategic conceptualisation and execution
in the Halal economy
alignment and impact of of business strategies and
•
Enhance growth enablers
BIMB’s CSR initiatives deliverables
through expansion of the
•
Emphasis on partnerships •
Create holistic development
businesses’ reach and
with beneficial programmes for the employees in
touch points as well as
organisations and line with the mission and vision
improved processes
institutions to effect •
Inspiring new ways of business
•
Delivery of platforms that
positive socio-economic and conducts through a process
provide business insights
impact of unlearning and relearning
as well as training for the
lead generation
38
HARNESSING
CAPITALS
Capitals are stocks of value we depend on as the inputs to our business model, and which are increased, decreased or
transformed through our business activities and outputs.
Our capitals are the resources and relationships that are essential to our business. We create value and deliver on our
strategy by transforming the various capitals. We seek to operate and grow inclusively, responsibly and sustainably, thereby
maximising value creation and minimising any negative impacts.
Hence, our long-term relevance as a business depends on these capitals’ availability, utilisation, and consequent value
delivered. When deciding how to manage our business, we consider the trade-offs between capitals: we aim to maximise
positive outputs and outcomes and limit negative impacts.
Capitals key to our long-term value creation include Financial Capital, Manufactured Capital, Intellectual Capital, Human
Capital, Social & Relationship Capital and Natural Capital.
FINANCIAL CAPITAL
To stay resilient within the current banking landscape, strong financial

HIGHLIGHTS
capital is necessary. Our financial capital enables us to sustain
business operations, create and manage shareholder value and give Common Equity Tier-1 Ratio – 13.2%
back to our nation and society. Total Equity – RM6.4 billion
Total Deposit – RM67.4 billion
HOW WE CREATE VALUE:
BIMB depends on robust equity and revenue to sustain and grow
its business. We have in place prudent strategies to mitigate risks
and meet industry liquidity requirements. We provide savings,
investment and other forms of client-specific products. We manage
and execute all our client interactions with the highest professionalism,
ethics and transparency.
MANUFACTURED CAPITAL
Our manufactured capital allows us to grow financial value through

an expanded reach and uplift societal value by catalysing inclusivity HIGHLIGHTS
of underserved communities.
141 Bank Islam branches nationwide
HOW WE CREATE VALUE: with 451 ATMs
We provide several access points and banking methods to facilitate 17 SME Hubs
options and to improve customer experience. We strive to introduce 7 Bureau de Change outlets
new operation channels adopting latest advances in technology. 9 Ar-Rahnu outlets
RM15.7 million investment in IT
infrastructure
39
HARNESSING CAPITALS
INTELLECTUAL CAPITAL
Our intellectual capital enables us to advance

industry value through the creation of new HIGHLIGHTS
Islamic banking possibilities and sustain
Strong franchise value as the nation’s only public-listed,
Malaysia’s standing as an Islamic financial
full-fledged Islamic banking group with reputation as a
services hub.
pioneer in the field and the industry’s source of reference,
and provider of an extensive suite of diversified and fully
HOW WE CREATE VALUE: Shariah-compliant products and services.
Our reputation as a pioneering leader in Islamic Enhanced value propositions through growing strategic
banking and finance has been a product of partnerships with key institutions, organisations and public
Islamic knowledge expertise and continuous agencies
product innovations over the years coupled
In addition to Sadaqa House, the introduction of Waqf
with effective risk management and strong House Financing facility and microfinancing initiatives
governance framework. We have built a strong have strengthened BIMB’s role as a major player within
brand franchise as a result. As one of the the social finance sphere.
flagbearers, we lead industry best practices
Continuous growth of ESG-compliant fund that incorporated
and provide technical assistance in the shaping
the novel Artificial Intelligence (AI) features
of Islamic financial institutions globally. We
also share market-leading knowledge on
Islamic finance with the industry and public
to ensure increased understanding.
HUMAN CAPITAL
Our success is determined by the quality of

our human capital. Our human capital is vital HIGHLIGHTS
in delivering financial value and enhancing
social value by serving our community better. Diversified composition of 4,731 employees
More than RM8.8 million invested in employees’ capability
HOW WE CREATE VALUE: and capacity enhancement
To maintain a conducive working environment Highly qualified professionals certified to operate in the
with performance-based culture, we have field of Islamic finance
incorporated the TAAT values in all of our
Strong governance and compliance culture with emphasis
employees’ working aspects. We invest in our
on Islamic values that promote trust, integrity and
people with training and development
acceptable working culture
programmes to attract, cultivate and retain
talent. We implement initiatives to grow
internal talent for upward mobility.
40
SOCIAL AND RELATIONSHIP CAPITAL
A social license to operate ensures smooth business operations

and sustainability. Our social and relationship capital delivers HIGHLIGHTS
value to our nation, people and the marginalised communities. More than 4.4 million customers
Proponent of enterprises for societal well-
HOW WE CREATE VALUE:
being with strong CSR and social finance
We are committed to build positive relationships with our initiatives
network of partners, vendors, customers and the community
Commitment towards sustainability with
at large through effective products and services, policies,
compliance with the principles of ESG and
and contributions. Through our AMAL and Sadaqa House
initiatives, we aim to become a force of good to realise UN SDG
positive impact for all of our stakeholders.
NATURAL CAPITAL
Our focus on natural capital impacts our operational costs

as well as sustains business value and environmental well- HIGHLIGHTS
being. Continued focus on facilitating financing for
corporations inves ting in green and
HOW WE CREATE VALUE: renewable energy solutions with more than
As a financial institution, we can positively impact the RM2.2 billion of financing approved under
environment in the communities and ecosystems where we Green Financing
operate through our operations as well as businesses that BIMB Invest Management achieved a total
utilise our product and service innovations. We promote ESG-compliant fund size of RM1.43 billion
environmental principles, alongside social and governance (Asset Under Management)
aspects in our customer screening. We have an increasing Continuous commitment in realising the
Green Financing portfolio to ensure sufficient financial Sustainability and VBI agenda that include
support to the renewable energy market. We also adopt the preservation of the planet’s biodiversity
sustainable practices as far as possible both internally and for the good of all
externally reducing our overall carbon footprint.
Climate change and resource use strategies
that guide both BIMB and our customers
to positively manage the environmental
impacts from business and operations
41
OUR VALUE CREATING Our business model demonstrates how we leverage our
six capitals to create value in the form of outputs and
BUSINESS MODEL outcomes and how we ensure the sustainability of our

business for our stakeholders.
O U R C A P I TA L S . . . . . . E N A B L E V A L U E - A D D I N G ... ACTIVITIES
INPUTS MARKET TRENDS
FINANCIAL CAPITAL Stringent Market

Digitalisation
• Total Assets: RM80.2 billion
Regulations Competition
• Total Equity: RM6.4 billion Global Economic
• Total Customer Deposit: RM67.8 billion Uncertainties Slowdown
• Total Asset Under Management: RM1.43 billion
• Liquidity Coverage Ratio: 180.1%
• Market Capitalisation: RM6.2 billion
INTELLECTUAL CAPITAL
• S trong brand value with almost 40 years of sustained BUSINESS
success as the pioneering, pure, full-fledged Islamic
S T R AT E G I C P R I O R I T I E S
ACTIVITIES
financial institution
• Strong reputation as the GLOBAL source of reference for
the Islamic financial industry
• Strong value proposition through partnerships with key
Sustainability Prosperity
Values-based Culture
1
organisations, institutions, and public agencies
Customer-Centricity
CONSUMER
BANKING
HUMAN CAPITAL Community Empowerment
2
• A diversified workforce of 4,731 employees nationwide, Digitalisation
made-up of 2,437 males and 2,294 females Real Economy
• An agile, performance-based, purpose-led culture driven
by TAAT values DEPOSITS
• Over RM8.8 million invested in upskilling employees AND CASH
through training and development programmes KEY RISKS MANAGEMENT
MANUFACTURED CAPITAL
3
Credit Risk Regulatory /
• D edicated network of 141 branches and 947 self-service
terminals nationwide Market Risk Compliance Risk
• Concentrated effort to enhance delivery of digital Liquidity Risk Shariah Non- COMMERCIAL
solutions and deployment of automated processes
Operational
Compliance BANKING
through major investment in IT development and (SNC)
Risk
infrastructure, including cyber-security Climate Risk
• Continuous investment in promoting mobile IT Risk
applications and online channels including GO mobile
banking app, Sadaqa House and Internet Banking
4
SME
SOCIAL AND RELATIONSHIP CAPITAL BANKING
M AT E R I A L M AT T E R S
• M ore than 4.4 million customers served
• Beneficial engagements with government, regulators
Responsible Finance
and NGOs to strengthen relationships and contribute to VBI
the betterment of the industry and society Inclusive Growth
• Adoption of sustainable practices based on realising the Talent Enrichment
UN SDGs and ESG objectives Community
Ethical Practice & Reporting Empowerment
NATURAL CAPITAL Islamic Finance &
• C ontinued commitment to Green Financing effort, which Knowledge Sharing
Entrepreneurial
focuses on financing within the renewable energy, green Mindset
technology, and waste management sectors
• Emphasis on corporate and social initiatives that promote
positive environmental impact
• Electricity usage of 1,900,000 kWh (reduction of
80,000 kWh from 2020)
• 10,363 reams of paper (reduction of 8,721 reams
from 2020)
42
VISION MISSION
The Bank that Advances Prosperity for All To provide solutions that deliver value
T H AT C R E AT E . . . . . .VA L U E F O R O U R S TA K E H O L D E R S .
OUTCOMES
TA AT VA L U E S
CUSTOMERS
Think Act with Advance Take • RM979 million in profits paid to depositors and
Customer Integrity Beyond Charge investment account holders
• More than RM5 billion provided for new personal
financing
• More than RM3 billion provided in new home
financing
• More than RM209.7 million provided in new vehicle
financing
• More than RM2.2 billion approved in new Green
OUTPUTS
Financing projects
• Ranked 4th in customers experience score within
◆ Providing solutions the banking industry as conducted by KPMG
5
that deliver value Malaysia
◆ Serving individuals,
TREASURY we improve access EMPLOYEES
to financial services • RM698 million paid in salaries and benefits
AND MARKETS and enhance quality • 423 employees promoted with 258 obtaining
of life professional certifications
6
• Employee retention rate of 96.62%
◆ Serving SMEs and
• Flexible working arrangement to enable remote
large corporations,
and virtual engagements that prioritise workers’
CORPORATE we contribute to
safety
BANKING economic growth,
• Most preferred employer in Malaysia awards
job creation and
industry innovation (Graduan Brand Awards 2021)
◆ Serving the nation, INVESTORS
7 we support national
goals and ensure
• RM366.5 million paid out in dividend
• 8.4% return on equity
BIMB stability and • Earnings per share of 21.87 cents
progress of the
INVESTMENT nation’s financial COMMUNITIES
MANAGEMENT standing • A total of RM2.8 million invested in AMAL activities
◆ Serving the • A total of RM11.8 million of Zakat paid out to 14 Zakat
8 community, we
improve financial
authorities
• More than RM3.6 million disbursed through Sadaqa
BIMB literacy, promote House for the well-being of the beneficiaries
inclusiveness and • RM1.6 million worth of BangKIT micro financing
SECURITIES contribute towards a distributed to help the micro-entrepreneurs in
sustainable future addition to training programmes
DRIVERS REGULATORS & GOVERNMENT

• Compliance with all regulatory requirements
• Guidance and alignment towards industry-
Good Self- led sustainability practices with continuous
Governance commitment towards VBI
• Participation in the creation of ESG book as
commitment towards ESG incorporation in all
Best business initiatives
Conduct • Contribution of RM228 million in corporate tax
Premised on the Shariah Principles, we commit

UNDERPINNED BY to upholding the highest level of integrity in our
everyday decisions and actions, in our efforts to
OUR OVERARCHING GOVERNANCE
uplift our communities and our nation.
43
STAKEHOLDER
ENGAGEMENT
Regular engagements with our keys stakeholders help us understand. We gain insights
that help us shape sound strategies and effectively implement initiatives by having
discussions and collaborating with them.
CUSTOMERS
Stakeholders How We Engage
We interact with customers to better Myriad of channels that include
understand their needs and find the Digital touchpoints: Contact centre
right financial solutions for them. Internet Banking Brick and mortar:
Corporate Website 141 branch networks
Topics of Relevance Mobile applications 17 SME Hubs
including GO by Bank 12 Vehicle Financing Sales Hub
Products and services viability and Islam; GO Biz by Bank 9 Ar-Rahnu branches
access Islam; SMExpert; BEST 7 Bureau De Change
Ef fe c tivene s s of s olutions in Invest and BISOnline; 947 Self-service Terminals
addressing needs especially during Social media platforms including Facebook, Instagram, YouTube and Twitter
the pandemic Customer surveys and focus groups
Financial assistance in coping with Webinars and online discussion forums
tough times
Quality of service delivery Value Created
Solutions’ security
RM979 million in profits paid to depositors and investment account holders
Rollout of digital solutions
Disbursed more than RM5 billion in new personal financing; more than RM3
billion in new home financing and more RM209.7 million in new vehicle
financing
Expansion of iTEKAD (iTEKAD 2.0) and BangKIT micro financing
Formed strategic partnerships with Universiti Malaysia Kelantan (UMK) and
Majlis Belia Malaysia (MBM) to support youth entrepreneurs.
Launched Makmur myWakaf fund, a multi-currency, Shariah-compliant global
mixed asset fund
Financial assistance packages rendered via various packages including Enhanced
Targeted Repayment Assistance (ETRA), Targeted Repayment Assistance (TRA),
PEMULIH Repayment Assistance (PRA), Financial Management and Resilience
Programme (URUS), Flood Relief Assistance, etc.
Continuous improvement and addition of new features to GO Mobile Banking
app
EMPLOYEES
We keep our employees informed of Internal communication channels including the internal portal, HUMANE
our strategic priorities and guiding portal (Online Human Capital Management System), SAPJAM platform and
principles, and engage with them to e-mail communication
learn of their concerns. Digital town hall and discussion sessions with the senior management
Online training and development programmes
Topics of Relevance Internal activities and initiatives among the Group’s workforce
Employee Engagement Survey
Career-planning and advancement
Concerns on the pandemic effect Value Created
on the Group’s performance
Paid more than RM698 million in employee remuneration
Personal development initiatives Delivered more than 264,530 training hours for employees
to for addressing work-life balance Created more than 26 new employment opportunities
Knowledge of the Group’s strategic Promoted 423 employees
direction during this volatile period Sponsored more than 258 employees to obtain Professional Certificates
Recorded an employee retention rate of 96.62%
Proclamation of a clear policy commitment on workforce diversity
44
GOVERNMENT & REGULATORS

We contribute to the nation’s economy Industry meetings, discussions and dialogues with relevant agencies
and help advance the industry through Provision of thought leadership and insights within the industry
a combination of b e s t busine s s Participation in government-led as well as global initiatives and programmes
practices and sound governance.
Value Created
Topics of Relevance
Continued commitment towards economic recovery efforts and socio-
economic progress via roll-out of various initiatives designed to help
Business resiliency that ensures the businesses and people impacted by the pandemic.
stability of the financial system Continuous commitment towards VBI implementation so as to realise the
Regulation and reporting updates sustainability and ESG objectives
Support for the national agenda Involved in JKMPay as pioneer partner to the solution
Payment gateway provider for MyBayar Saman with Royal Malaysian Police
(PDRM)
MATRADE, HDC and SME Corp partnerships to enhance support for SMEs.
S upporting BNM’s initiatives including financial assistance and micro
financing.
Facilitated the social finance agenda
Paid RM228 million in corporate taxes to the Government
LOCAL COMMUNITIES
We seek to engage with communities Maintaining relationships with the Non-governmental organisations (NGOs)
to effectively address their issues and and other relevant organisations
Reaching out to the marginalised communities to gather information and
needs, and better understand our role better understand their plights
in contributing to the society’s health Partnerships with relevant institutions and organisations to gain insight in
and wealth. tackling current concerns or issues for better sustainability efforts
CSR initiatives
Topics of Relevance
Value Created
Growing expectation on the Group’s
1,000 tablets distribution to underprivileged students nationwide.
contribution to the overall well-being Flood relief efforts
of the marginalised communities Solar panel installation at Tg Surat, Johor
Economic concerns and social issues RM1.6 million financing for entrepreneurs via BangKIT micro financing
Financial education and knowledge Wacana Selasa webinar on Facebook Live, every Tuesday, discussing various

issues with esteemed panelists.
Handed over 11 housing units to selected asnaf under the “Baiti Jannati” or
“My Home, My Paradise” programme, in partnership with the Kuala Lumpur
City Hall (DBKL) and the Ministry of Federal Territories.

INVESTORS
We provide updated and detailed Annual General Meetings, Extraordinary General Meeting, Court Convened
disclosures that allow investors to make Meeting and Analysts Briefings
informed investment decisions, and seek Participated in relevant conferences, roadshows, e-conferences, e-forums
their input on our performance and and webinars
strategic decisions. Constant meetings and discussions with business analysts and fund
managers
Topics of Relevance
Value Created
The pandemic impact on the
Group’s f inancial per formance 11.1% Return On Equity
including its business outlook 0.9% Return On Asset
Deliverance of the expected financial 18.56% total capital ratio
performance in light of the listing RM366.5 million of dividends paid to shareholders
exercise
Addressing the wider sustainability
and ESG concerns
45
OPERATING ENVIRONMENT
& KEY MARKET TRENDS
BIMB’s ability to continue creating value for our stakeholders is strongly tied to our
ability to navigate the fast-evolving operating environment. Our external operating
context has a direct impact on our profitability, the risks that we face and our strategic
decision-making.
TRENDS DESCRIPTION IMPACT
The Malaysian economy returned to growth in 2021, • The subdued economic growth in
despite the ongoing challenges arising from the pandemic. 2021 and weak consumer sentiment
Trend 1 The recovery came with a high degree of uncertainty, in the first half of the year resulted
though, as the government imposed various measures in a less-supportive environment
MODERATE throughout the year to halt a resurgence in the number for the banking industry than had
ECONOMIC of COVID-19 cases. The government’s reimposition of a originally been forecast.
RECOVERY total lockdown in the middle of the year hit economic • The shifting economic outlook
growth, undermining BNM’s original forecast of a 6% to throughout the year had a strong
7.5% expansion in GDP for the year. The gradual lifting impact on consumer sentiment and
of movement restrictions and the resumption of most behaviour. The Consumer Sentiment
economic activity, as well as the acceleration of the Index (CSI) remained below the
National COVID-19 Immunisation Programme, continued 100-point threshold level, which
government stimulus and the spillover effect of the global indicates optimism, throughout the
economic recovery, supported a pick-up in growth, and first half of the year, as consumers
remained cautious due to the
the country saw a GDP expansion of 3.1% for the year.
continued impact of COVID-19. The
GDP Growth (%) CSI fell to a low of 64.3 points in
6 the second quarter of the year,
5 5.8 48 following the reimpositon of the
4.4
4 4.4 3.1 Movement Control Order (MCO)
3
in May. The gradual reopening of
2
1
the economy led to a rebound
0 in consumer conf idence in the
-1 second half of the year, with the CSI
-2 rising to 101.7 in the third quarter of
-3
2021. This marked the first time the
-4
-5
index had risen above the 100-point
-5.6 optimism threshold since the third
-6
‘16 ‘17 ‘18 ‘19 ‘20 ‘21 quarter of 2018.
In direct response to the pandemic, BNM progressively • Low interest rates led to margin
reduced the interest rate to a record low of 1.75% in 2020 compression, which has impacted
and maintained it at that level all through 2021. The top line performance throughout
Trend 2 record low rate supported a rebound in consumption the banking sector.
INTEREST and business investment but also led to compressed
• Conversely, the low cost of funding
interest rate margins across the banking industry, which
RATES AND has negatively impacted the banking sector’s profitability. encouraged businesses and
OTHER consumers to seek new loans.
Financing growth in Malaysia rose
BNM’s sharp rate cuts and decision to maintain low
FINANCIAL interest rates is in line with the actions of central banks to 4.1% in 2021, similar to the pre-
CONSEQUENCES around the world. The low rate environment has supported pandemic figure in 2019.
a global economic recovery but has also led to growing
• Inflationary pressure rose in 2021
inflationary pressure in the international financial system.
and became more prominent in
the second half of the year due
to a combination of easy-money
policies, rebounding consumer
demand and growing production
and logistics bottlenecks.
46
STRATEGIC REVIEW
The impact of the COVID-19 pandemic remained pervasive across all areas of our operating environment in 2021, but
society and businesses have effectively adapted to the new reality. At BIMB, the robust measures that we instituted in
response to COVID-19 in 2020 proved adequate to allowing us to manage the continued impact of the pandemic in 2021.
As always, the new year offered both new challenges and new opportunities. This section sets-out how we managed the
former and worked to capitalise on the latter in 2022.
HOW WE RESPONDED OUTLOOK LINK TO
• We targeted our business towards areas of BNM projects that the Malaysian economy Capital
the economy that offered strong growth will grow by 5.5% in 2022, driven by a recovery
prospects during the year. Our Consumer in domestic demand and stronger growth in
Banking business continued to focus the external sector. The recovery will be Stakeholders
on demand from the household sector. supported by the shift to the endemic phase
Our Corporate and Commercial business of COVID-19, the pump-priming impact of
expanded in areas including finance for Budget 2022, a stronger labour market, the Material Matters
affordable housing and Green Financing. gradual reopening of international borders
and strong global growth, all of which will
• We worked closely with our customers
be supportive of a stronger performance by
and clients to ensure that they had the
BIMB. The growth prospects for the economy
necessary support, including by offering
come with downside risk, though. Disruption
financing deferrals and the restructuring
to global supply chains, rising inflation and
of facilities.
energy prices, and growing geopolitical
• We continued to provide social finance tensions add a high degree of uncertainty
and forms of direct support to vulnerable and BIMB will maintain a prudent stance as
segments of society that remained affected we move forward.
by the challenging economic conditions.
• BIMB continued to diversify our non- We expect BNM to maintain the current Capital
interest income as a hedge against interest record low interest rate of 1.75% throughout
rate movements. the first half of 2022. We see a higher possibility
of a rate hike in the second-half of the year, Stakeholders
• We tapped into the growing demand for
in order to curb inflationary pressure, but the
financing from consumers and businesses
timing or actual occurrence of any rate hike
eager to take advantage of lower interest
will be subject to prevailing economic Material Matters
rates, resulting in our f inancing book
conditions.
growing by 6.4% in 2021, which is
considerably above the industry average.
47
OPERATING ENVIRONMENT & KEY MARKET TRENDS
The banking and financial services landscape is rapidly being • Banks have had to respond
reshaped by digital technology with the growth of online banks, to the surge in demand
Trend 3 e-payment systems and the rise of the FinTech companies, f o r o n l i n e s e r v i c e s by
as consumers embrace online banking and e-commerce. The developing new strategies
DIGITALISATION COVID-19 pandemic has rapidly accelerated the shift towards and products and increasing
online transactions as consumers demanded non-touch options their capacity to handle
and movement restrictions made online shopping a more digital transactions.
convenient option.
• The rapid shift to digital
f inance drove strong
The traditional banking model also continued to face disruption
demand for our online and
from the rise of the FinTech’s start-ups, which have continued
mobile offerings. More than
to drive innovation in the industry by leveraging on their
90% of BIMB’s transactions
greater agility and a regulatory landscape that has fast-evolved
are now conducted through
to accommodate them.
electronic channels. The
number of our Internet
Rapid digitalisation has also seen a rise in cybersecurity risks,
Banking users rose by
with the total number of cyber-attacks reaching a new global
22%, to 1.5 million during
all-time high in 2021, as criminals developed new attack tools
the year, with the total
and exploited the rapid shift to online services.
number of internet banking
transactions rising by 50%.
Total Non-Financial Transaction Volume (Million)
• Our GO by Bank Islam
GO BY BANK ISLAM MOBILE BANKING APP mobile banking app saw a
20’ 167 79% surge in user numbers,
21’ 454 to reach 849,000 users,
and the total number of
INTERNET BANKING
transactions on the app
20’ 484 tripled to reach 47 million.
21’ 584
• Malaysia, like many other
countries, saw a rise in the
Total Financial Transaction Volume (Million) number and intensity of
GO BY BANK ISLAM MOBILE BANKING APP cyber threats during the
20’ 14 year. National cybersecurity
agency, MyCert, received
21’ 47
more than 10,000 reports
INTERNET BANKING of cybersecurity incidents
20’ 98 in 2021, with 71% of them
21’ 147 related to fraud.
Total Financial Transaction Value (Billion)

GO BY BANK ISLAM MOBILE BANKING APP
20’ 5.7 5.7
21’ 16.5
INTERNET BANKING
20’ 28.8
21’ 40.1
Note:
1. Non-Financial Transaction involves no monetary movement e.g.
balance enquiry, add favourite account, change password, change
transaction limit, download e-statement, etc.
2. Financial Transaction involves monetary movement e.g. transfer
to own account, DuitNow Transfer, TH transfer, SSPN transfer, etc.
48
STRATEGIC REVIEW
• Digitalisation is one of the six pillars • Malaysia’s digital economy is projected Capital
supporting our LEAP25 growth strategy to grow from 22.6% of GDP at the end
and we continued to invest heavily in of 2021 to 25.5% of GDP by 2025 and
our digital infrastructure and services in banks will have to continue adapting to Stakeholders
2021. This included spending to harden the accelerating shift by governments,
our cybersecurity defences in order to businesses and consumers towards online
ensure the integrity of our systems and and digital transactions. This fundamental Material Matters
to safeguard our customers’ data. shift will continue driving demand for our
digital services.
• We rolled-out a range of enhancements
to our GO by Bank Islam app and online
banking services to meet the evolving • The award of five (5) digital banking licenses
needs of our customers. by BNM in 2022 will drive innovation and
excite the industry as consumers will soon
• We introduced GO Biz by Bank Islam
have a breadth of options to choose from
app to capture growth in the small and
in how they transact and manage their
micro-entrepreneur market and launched
finances.
a collaborative effort with target micro-
entrepreneur groups to help them migrate
their transactions online.
• In 2020, BIMB Invest launched its Shariah

Sustainability Robo-Intelligence digital
investment platform called "BEST Invest" to
help investors build their portfolios, offering
a range of Shariah-ESG unit trust funds.
The award-winning app has garnered
more than 15,000 users at the end of 2021.
BIMB Invest shall continue to enhance
the app from time to time for better user
experience.
49
It is essential that we have the right • The massive changes in

No. of Employees
people in our workforce in order to the operating environment
Trend 4 deliver on our growth strategy and
4,568 4,489 4,635
4,758 4,731 since the beginning
execute our corporate transformation o f t h e pa n d e m i c h ave
WORKFORCE plans. Competition for talent remains revealed gaps in skills and
CHALLENGES intense, though, and the labour market preparedness in the human
has also faced disruption as a result resources base across the
of the COVID-19 pandemic, which has economy, as businesses
seen many qualified individuals opt for were forced to adapt to
gig jobs and remote working, rather labour disruptions, new ways
than traditional corporate careers. As of working and increased
a values-based financier, we face the digitalisation.
added dimension of ensuring that our
people are aligned with our strong 17’ 18’ 19’ 20’ 21’
corporate values.
Concerns around sustainability matters and environmental • A key development over

stewardship continue to move to the centre, as awareness the last several years has
Trend 5 about the threat from climate change continues to grow. This been the strong growth in
has led to the lending practices of banks, including BIMB, appetite for climate-aligned
SUSTAINABILITY coming under increased scrutiny, with growing demand for and net-zero investment
CONCERNS transparency about their environmental impact from regulators, opportunities across Asia,
AND CLIMATE clients, investors and other stakeholders. On the domestic with many investors now
regulatory front, both the SC and BNM released rules and conducting carbon footprint
CHANGE analysis. This mirrors the
guidelines during the year that emphasised the need for
companies to integrate sustainability considerations into global growth in demand for
corporate strategy and corporate governance. This marks ESG-compliant investments.
another step towards the emergence of a green economy • T i g h te r e n v i r o n m e n t a l
framework for the nation. regulations are gradually
changing lending practices
Number of Green Technology Customers as banks start to incorporate
ESG considerations into
5 Corporate
‘17 their f inancing evaluation
4
processes.
Commercial
7
‘18 7 SME
10 Treasury
19
‘19
1
2
15
30
‘20
4
3
15
‘21 31
8
3
50
STRATEGIC REVIEW
• We strengthened our human resources The challenge of being able to attract and Capital
policy to align it closely with our LEAP25 retain the right people will remain constant,
growth and transformation strategy. To as the nature of the skills needed by BIMB
build the workforce that we need, we and our peers and competitors will continue Stakeholders
intensif ied investment in our human to evolve as we seek to stay ahead of the
capital to ensure that we are able to rapid changes that are reshaping the business
recruit and retain the right people, and and banking landscape. Accordingly, we will Material Matters
continued upskilling our existing workers. continue to look at our recruitment and
We sharpened digital skills training across reward practices to ensure that we remain
our workforce so that our people can better an employer of choice for the people that
deliver on our goal of customer-centricity, we are seeking to attract.
as well as to achieve productivity gains in
a tight labour market.
• As the global effort to tackle climate Moving forward, we are optimistic about the Capital
change grows, BIMB is moving rapidly growing opportunities the transition to a
to take a leading role in contributing to low-carbon economy will present for BIMB,
Malaysia’s transition to a lower-carbon including through increased green and Stakeholders
economy. Under our LEAP25 strategy, we sustainable infrastructure finance capabilities.
aim to double our Shariah-ESG financing
from the current 4% of total financing by Material Matters
2025.
• Additionally, we continued to expand

our range of Shariah-ESG investment
products to capitalise on growing demand
for sustainable investments.
• We are also working to integrate a

comprehensive ESG framework and deeper
climate change analysis into our credit
evaluation process by mid-2022.
51
The banking industry is strongly affected by geopolitical • In Malaysia, the change

developments, which have implications for our operating of government and the
Trend 6 environment. Beyond the regulatory and policy changes and accompanying changes in
other direct impacts that might result from political changes, various policies, including
GEOPOLITICS political volatility also influences customer and client needs the easing of movement
and behaviour. On the domestic front, Malaysia saw a change restrictions and continued
of government in September, with a period of uncertainty pump-priming were
leading-up to that change. On the international stage, the supportive of economic
biggest development was the inauguration of the new Biden growth, and the new
administration in the United States, which has led to a series government’s more clearly
of changes in economic and strategic policies that have had def ined policies to grow
global ramifications. the green economy play to
BIMB's strengths.
• Globally, the economy and

wider operating environment
continued to be impacted by
a range of issues including
the continuing trade
tensions between the US
and China, the decision to
restrict oil production by
the OPEC+ group and rising
tensions in Eastern Europe.
52
STRATEGIC REVIEW
• BIMB continuously ref ines our risk The geopolitical outlook for the year ahead Capital
management f ramework, which has and the medium-term beyond remains highly
allowed us to mitigate the impact of unpredictable. Geopolitical tensions centred
geopolitical risks that manifest through on Eastern Europe have the potential to be Stakeholders
various channels. This includes the use of highly disruptive to the economic recovery
currency hedging strategies to manage that had been projected to gather pace in
the effects of volatility in international 2022. On the domestic front, investors and Material Matters
exchange rates. businesses will continue to take note of
political developments ahead of a general
• We embraced the opportunity to further
election that must be called by May 2023.
grow our Green Financing portfolio offered
As we move forward, BIMB will continue
by the new Malaysian government’s
to monitor and strengthen the prudential
increased emphasis on the green economy
safeguards that we have in place.
under Budget 2022 and the 12th Malaysia
Plan.
53
MATERIAL
MATTERS
Our material issues are those that matter most to our stakeholders and have an impact on our sustainability and ability
to create value in the short, medium and long-term.
These Material Matters influence how the Board and Management steer the Group forward. Our ability to create value
is impacted by a multitude of factors, including the operating environment, our responses to the risks and opportunities
presented by these material matters and our strategy.
With an in-depth understanding of our material matters, we can better define our strategies and resource allocation
plans, thereby positioning our Group to implement meaningful actions and anticipate sustainability challenges. Identifying
the Group’s material issues is the first step toward understanding the internal and external factors that affect our business.
while promoting the alignment of our strategy with the interests of our stakeholders.
The Group identified five material matters, namely, Responsible Finance, Inclusive Growth, Talent Enrichment, Ethical
Practice and Reporting and Islamic Finance and Knowledge Sharing.
Developing ethical products and

services that bring positive
economic, social and
environmental benefits.
Anchoring our
Ensuring that all
practices and
layers of community
decisions on
grow along with us
Islamic rules and
through inclusive
principles and
Responsible offerings.
contributing to a
Finance
hub of expertise
and knowledge
that will drive our
nation’s standing
Islamic Finance
as a leader in the Inclusive
and Knowledge
Islamic financial Growth
Sharing
industry.
Ou r
M aterial
Ensuring that our
M atters
practices are
governed by our Growing our
core values, and employees to
that social and become
Ethical Practice
environmental Talent valuable assets
and
considerations are Enrichment and be the best
Reporting
consistently our top they can be.
priorities.
54
STRATEGIC REVIEW
In championing the Group’s Material Matters, MATERIAL MATTERS IDENTIFICATION PROCESS:

we designed various programmes and initiatives
at the organisation level based on relevant
business and stakeholder issues and expectations.
Where possible and necessary, we engaged our IDENTIFICATION
stakeholders to drive clear outcomes. Such We identify matters that may impact the execution of
outcomes are also aligned to local regulations our strategy. This is a group-wide effort taking into
and industry best practices. We have mapped account input from all business and support units, and
the outcomes to our organisational strategies incorporating feedback from stakeholders.
and VBI principles and the globally recognised
United Nations Sustainable Development Goals
or the UN SDGs.
At BIMB, we believe that the role of Banks as PRIORITISATION

intermediaries go beyond access and affordability From the list of identified matters, we prioritise those
of finance, including catalysing financing that most significantly impact our ability to successfully
solutions to mitigate universal problems such execute our strategy and deliver long-term value to our
as poverty, inequalities and social justice, and stakeholders.
environmental well-being. Our process includes
raising awareness of how our customers and
our network of stakeholders can address some
of these issues through responsible business
practices and responsible investments. Through VALIDATION
VBI and Shariah-compliant financing, we will
Those matters that are material to value creation are
continue to strengthen our orientation to the integrated into our balanced scorecard, which is used to
SDGs relevant to Malaysia and where our local set objectives, drive behaviours, measure performance and
industry and leaders can meaningfully make a determine the remuneration of our people.
difference.
Responsible Finance
We commit ourselves to upholding societal and environmental UN SDGs

responsibilities by bringing to the market solutions that promote
economic and social benefits. We make a conscious decision to design
ethical products and incorporate integrity into our services for the good
of all. We support ethical projects and customers in catalysing a multiplier
effect to the positive impact they bring.
55
MATERIAL MATTERS
Inclusive Growth
We believe in equal opportunity for all by empowering the community. UN SDGs

We invest in making our financial products and services accessible to
all. We ensure that our social initiatives can reach out to the
disadvantaged and underserved communities and, in the process,
enhance our relationships and contribute to socio-economic progress
for the long term.
Talent Enrichment
We are focused on supporting our employees throughout their UN SDGs

professional lives by conducting various training sessions and
development programmes, as well as promoting values that engender
conducive working environment and performance-based culture. We
listen to our staff to determine their needs, and value their skills and
contributions through fair remuneration and career advancement
initiatives.
56
STRATEGIC REVIEW
Ethical Practice and Reporting
We are committed to doing the right thing and stand by our stakeholders UN SDGs
in almost any circumstances. We are accountable and serve their best
interest through good business practices that uphold integrity,
transparency and responsible products.
Islamic Finance and Knowledge-Sharing
We have an intrinsic objective to grow knowledge and awareness of UN SDGs

the Islamic banking and finance industry. We are also committed to
advance the industry, and increase the uptake of our brand of Islamic
banking and finance solutions beyond the region.
57
KEY RISKS AND

OPPORTUNITIES
1 CREDIT RISK
Definition
Risk of loss of revenue and/or principal arising from the inability of an obligor to fulfil its financial obligation
in accordance with agreed terms.
Mitigation
• Maintain a robust and prudent credit risk policy and limits to ensure credit default and losses are within the
approved Risk Appetite.
• Credit evaluation by the business is independently reviewed and constructively challenged by credit analysts
prior to submission to Management and Board Committees for approval.
• Independent post-credit review and post-mortem analysis is conducted regularly to assess and ensure asset
quality standards are maintained.
• Proactive and vigilant management at account level to prevent deterioration in asset quality. This includes
granular portfolio risk reviews and monitoring.
• All exposure and non-compliances, including emerging risk, are reported to Management & Board Committees.
2 MARKET RISK
Definition
Risk of losses in on-and off-balance sheet positions arising from adverse movements in market prices/rates.
Mitigation
• Maintain a robust market risk policy and limits based on best practices.
• Proactive monitoring, analysis and reporting to ensure that management of market risk is within the approved
Risk Appetite.
• Proactive review of all market risk parameters in line with the current economic environment.
• Market Risk Limits/Management Action Triggers are reviewed regularly to ensure effective management of
the risk.
• All exposures and non-compliances are reported to Management & Board Committees promptly.
58
STRATEGIC REVIEW
3 LIQUIDITY RISK
Definition
Risk of adverse impact to the financial condition of the Group, or the soundness of the Group being adversely
affected by an inability (or perceived inability) to meet its contractual obligations.
Mitigation
• Maintain a comprehensive liquidity risk policy and limits based on best practices.
• Proactive monitoring, analysis and reporting to ensure the management of liquidity risk is within the approved
Risk Appetite.
• Liquidity risk limits are reviewed regularly to ensure effective management of this risk factor.
• Proactive review of all liquidity risk parameters in line with regulatory requirements and current economic
environment.
• Preserve high quality liquid assets and well-diversified sources of funds as liquidity risk buffer under both
business-as-usual (“BAU”) and stress conditions.
• All exposures and non-compliances are promptly reported to Management & Board Committees.
4 OPERATIONAL RISK
Definition
The risk of loss resulting from inadequate or failed internal processes, people and systems or from external
events, which includes legal risk and Shariah Non-Compliance risk.
Mitigation
• Maintain and actively manage operational risk in line with the Group’s operational risk policy and approved
Risk Appetite.
• Risk & Compliance Units are established within significant activities and risk controllers are appointed in every
division to enhance and ensure active monitoring of operational risks in the Group.
• Proactive review of critical business operations’ resilience to risks arising from challenges posed by COVID-19
pandemic.
• Operational risk is embedded as a key area in the assessment of risks within the Group’s products, services,
processes, and systems.
• Various ORM tools, comprising proactive and reactive tools, are applied to provide a robust and consistent
approach in managing Group-wide operational risk.
• All operational risk issues and incidents are reported to Management and Board Committees with detailed
root cause analysis and action plan.
59
KEY RISK AND OPPORTUNITIES
5 INFORMATION TECHNOLOGY (IT) RISK
Definition
Any potential adverse outcome, damage, loss, violation, failure, disruption, theft or breach arising from the
use of or reliance on computer hardware, software, electronic devices, systems, applications and networks or
the existence of vulnerabilities such as software defects, capacity inadequacies, network vulnerabilities and
control weaknesses.
Mitigation
• Establish internal process and controls, which include among others, proper systems development and project
management approach and methodology, change management, security tool implementation, proactive
security monitoring and system backup & recovery.
• Continuous assessment and review of security vulnerabilities and security control effectiveness.
• Enhanced monitoring of cybersecurity arising from challenges posed by the COVID-19 pandemic.
• Close monitoring of rectification progress by the relevant working-level and management committees.
• Where relevant, IT-related issues and incidents are escalated to the Board Risk Committee or Board IT
Committee.
6 SHARIAH NON-COMPLIANCE (SNC) RISK
Definition
Risk of legal or regulatory sanctions, financial loss or non-financial implications, including reputational damage,
which the Group may suffer arising from failure to comply with the rulings of BNM’s Shariah Advisory Council
(SAC), standards on Shariah matters issued by BNM, or decisions or advice of the Group’s Shariah Supervisory
Council.
Mitigation
• Ensure the soundness of Shariah governance framework through four dedicated functions - Shariah Research
& Advisory, Shariah Risk Management, Shariah Compliance and Shariah Audit - as required under BNM Shariah
Governance Framework.
• All policies, products, services and processes are subject to Shariah assessment.
• Operational risk management tools such as Risk Control Self-Assessment (including validation), Key Risk
Indicators and Loss Event Management are extended and enhanced for the management of SNC risk.
• All SNC issues and incidences are reported to the Management, Board and Shariah Committee with detailed
root cause analysis and action plans.
60
STRATEGIC REVIEW
7 REGULATORY/COMPLIANCE RISK
Definition
Risk of legal or regulatory sanctions, material financial loss, or reputational loss suffered as a result of failure
to comply with the laws, regulations, rules, related self-regulatory organisation standards, and codes of conduct
applicable to BIMB’s banking activities.
Mitigation
• The deployment of Business Compliance Officers at Business and Support Units to facilitate the identification
and management of Compliance Risks.
• Formulation of Compliance Risk Assessment (CRA) methodology to assist in identifying and measuring the
Compliance risks level, i.e. Critical, High, Medium and Low.
• Formulation of Compliance Review Plan for both Compliance Monitoring & Testing and Shariah
Compliance Review to prioritse the resources.
• Implementation of the Institutional Risk Assessment (IRA) to strengthen and address the ML/TF risks at
branches and business units.
• Adoption of Robotic Processing Automation in managing the AML System alert.
• Formulation of Corruption Risk Management (CRM) to identify potential corruption risks, and assess the
identified risks in terms of likelihood and impact.
• Establish internal threshold limits for monitoring of customer transactions.
8 CLIMATE RISK
Definition
Risk of losses resulting from adverse climate change impacts arising from physical and transition risk including
extreme weather events, sea level rise, droughts and floods, and policy changes such as carbon taxes.
Mitigation
• Develop and implement an ESG Risk Framework covering identification, mitigation and monitoring of climate
change risk.
• Implementation of the BNM Climate Change Principles-based Taxonomy (CCPT) to classify financing
exposures according to severity of climate risk.
• Conducting ESG due diligence of new and existing financing customers that carry elevated climate risk
indicators based on sector and business activity.
• Maintain robust and prudent climate risk policy and limits in-order to reduce and minimise exposure to
sectors with the highest climate risk exposure, i.e. coal power generation and mining.
• Climate risk exposures and mitigation efforts are reported to the Management and Board Committees.
61
STRATEGIC ROADMAP:
LEAP25
BIMB aims to be a champion in
Our roadmap for delivering on these goals is laid-out
offering Shariah Environmental, Social in our new LEAP25 corporate strategy, which sets clear
targets to be reached by 2025 of:
and Governance (Shariah ESG) total
financial solutions and to establish
its leadership in social finance and
Growing our asset size to over
digital banking. RM100 billion
Doubling our ESG-rated financing
Reducing our cost-to-income

ratio below 50%
Sustaining superior industry

Return-on-Equity of above 15%
Increasing our non-fund-based

income contribution
Creating a positive social impact
Nurturing and retaining

high-performing talent
The LEAP25 strategy is anchored on six strategic pillars

that are rooted in and reinforce BIMB’s status as a
Values-Based Intermediary (VBI). The strategies aligned
with these six pillars provide us with the resilience
to navigate the uncertain post-pandemic operating
environment that is increasingly being referred to as
the next normal.
62
STRATEGIC REVIEW
OUR SIX PILLARS
Ensuring the long-term

sustainability of the Group
and creating value for our
stakeholders.
Upholding Shariah goals
and the principles of VBI.
Sustainable
Prosperity
Values-based
Culture
Spearheading
the development
of a Halal digital
community and
empowering our Digitalisation
customers to
engage with us Placing our
in the way that customers at the
they want to. Customer- heart of all our
Centricity planning and
decision-making.
Real
Economy
Community
Empowerment
Growing wealth in the
economy on equitable
Becoming the community ’s
terms.
preferred Islamic finance provider
and delivering on our responsibilities
as a committed corporate citizen.
Our strategic pillars are tightly integrated and their components are complementary, with benefits from improvements
in one reinforcing progress across the others. For example, to better meet our clients’ needs, we increased our focus on
digitalisation and expanded our product offerings. This, in turn, improves the Group’s resilience, supports diversification,
drives efficiency and reduces cost and operational risk, while providing an improved experience for our customers.
Our continued growth will be driven by our transformation as we implement the strategies defined by these six
pillars, cementing our aspiration towards leadership in digital banking and social finance.
63
STRATEGIC
PERFORMANCE REVIEW
STRATEGIC PILLARS 1: SUSTAINABLE PROSPERITY
BIMB’s commitment to delivering sustainable prosperity is With the impact of the record-low interest rate environment
both a growth opportunity and a values-based obligation. being felt on the performance of the entire Malaysian
The pillar encompasses both the actions that we take to banking industry, we continued to pursue strategies to
strengthen the financial position of the Group and our grow our fee-based income as an effective hedge and to
commitment to growing sustainable finance business. strengthen future income streams, resulting in a sustained
non-fund-based income ratio of 11.1% for the year.
The effectiveness of the strategies implemented to strengthen
our financial position saw us sustaining performance on Across the Group, we implemented effective strategies to
a range of key targets, including Return on Equity (ROE), diversify our revenue streams and build a more sustainable
Return on Assets (ROA) and above-industry growth in our income model. This includes strategies to embark on an
deposits, financing and assets. A fuller discussion of our Integrated Wealth Management Business model, such as
strong performance across our key financial metrics can be developing capabilities in big data, customer segmentation
found in our GCFO’s Statement on pages 72 to 75. and group cross-selling synergy. Since the SME division was
carved out and established in 2018, the Bank has stayed the
Our sustainable prosperity initiatives are closely tied to our course to advance from a financing-centric to ecosystem
LEAP25 targets of growing our non-fund-based income play in terms of its Enterprises portfolio, leveraging on the
contribution and doubling our ESG-rated f inancing by Halal platform. Through its Wholesale Banking proposition,
2025. Despite the continued challenges of the operating the Bank intends to promote purposeful mobilisation of
environment in 2021, we took substantial steps towards capital to help clients achieve sustainable growth. This means
delivering on these targets during the year, both in terms a higher business portfolio growth f rom Corporate and
of diversifying our income streams and on growing our
Green Financing.
64
STRATEGIC REVIEW
Commercial Banking of RM324.9 million (2.36% growth) and Under our LEAP25 strategy, we aim to double our Shariah-
correspondingly higher net income of RM415.6 million (6.5% ESG rated financing assets by 2025, establishing us as a
y-o-y). Initiatives have been put in place for greater business dominant player in Malaysia’s Green Financing industry. We
synergy such as account planning and synchronisation of have already made substantial progress towards this goal.
digital capabilities. At the end of 2021, our Green Financing stood at RM2.2
billion, accounting for 4% of our total financing portfolio,
Our Consumer Banking Division continued to strengthen and about 2.8% of our total assets. Analysts see this well
collaboration with various professional associations, as well above the 1% to 2% of most other banks in the country.
as running targeted promotions aimed at government With the Malaysian government giving greater priority to
servants. By offering products and services tailored to these the green economy under the 12th Malaysia Plan (2022-2026),
specific segments, we aim to grow our market penetration the degree of competition in the Green Financing market is
of the more resilient mass-affluent sector. At the same set to intensify. BIMB believes that we will maintain a strong
time, our Corporate Banking Division continued to pursue competitive advantage though, backed by our sustained
growth by focusing on supporting the essential economic track record in Green Financing, our strategic relationships
areas of Healthcare, Food, Infrastructure, Plantations, Green in the Malaysian corporate world and our leading position
Technology and Renewable Energy. By maintaining a focus as a values-based financier.
on strategic partnerships and strong customer service, it aims
to cultivate, nurture and grow high-quality new customers It is not just demand for Green Financing that is set to drive
in the targeted sectors in order to maintain the strength growth in our sustainable finance operations; the appetite for
of its asset quality and income streams. ESG-compliant investments has also risen sharply. Building
on our strength as a global leader in Shariah-ESG investment
The examples above are just some of the many measures funds, we have continued to grow the number and size of
that BIMB is taking in-order to increase our resilience and sustainable investment products that we offer. As of 2021,
ensure the sustainability of our business. A fuller description Shariah-ESG funds accounted for more than 65% of our
of the specific actions in this direction taken by our various total RM1.43 billion in assets under management, and we
business divisions can be found in the Business Review have continued to drive innovation in this area. In 2021, for
section of this report on pages 84 to 105. example, we launched Malaysia’s first Waqf Featured Unit
Trust Fund in March 2021. We also continued to capitalise
The continued evolution of the Malaysian economy will be on the demand for ethical and Shariah-compliant financing
impacted by advances in sustainable technologies and the instruments by serving as lead manager or joint lead manager
rising demand for sustainable financing options. This will on 15 sukuk issues that qualified for an ESG rating in 2021.
require BIMB, and the Malaysian banking sector, to keep Moving forward, we will continue to push the frontiers in
adapting to be able to support new, emerging, industries the Shariah-ESG investments industry in line both with our
and help customers in impacted industries transition. BIMB growth strategy and with our values as an Islamic bank.
has already taken substantial steps in this direction and our
success in these areas is measurable.
65
STRATEGIC PERFORMANCE REVIEW
STRATEGIC PILLARS 2: VALUES-BASED CULTURE
At BIMB, our growth strategy and corporate culture are performance workforce. The 8 Conducts are anchored by our
underpinned by our strong values as an Islamic banking TAAT (Think Customer, Act with Integrity, Advance Beyond,
institution and VBI. Our Shariah governance framework Take Charge) values, integrated into the Group’s policies,
establishes our form as an Islamic Bank, but it is our guidelines and frameworks. To inculcate the 8 Conducts
commitment to our values that enables us to achieve the in the Group’s work culture, we have carried-out awareness
intended outcomes of Islamic Finance. and engagement programmes continuously throughout the
year, and integrated these behavioural competencies into
We believe that our robust ethical framework will be a our employees’ annual performance reviews. We have also
major asset as the world increasingly embraces values-based acted to strengthen the risk and compliance culture at BIMB
financing and investment practices, and us embedding through a series of programmes to drive the internalisation
them it into every aspect of our business and operations of compliance culture amongst our workforce at all levels.
and at the very heart of our growth strategy. Accordingly,
we have aligned our overall Human Resources strategy with Recognising the very human side of the work experience,
our LEAP25 strategy, where our people’s capabilities, culture we established the Bank Islam Live Well Programme, which
and values are of the utmost importance. Putting these offers our people a holistic wellness programme that supports
values into action, as part of the restructuring exercise that their physical, emotional, mental, spiritual, and financial
has seen BIMB emerge as an independent and public listed well-being. We also provide employees with education, tools
company in 2021, we are undertaking a concerted effort to and access to relevant experts, enabling them to receive
ensure that the BIMB Group develops a cohesive common professional help for their issues confidentially. The value
culture centred around our core values. and effectiveness of the programme was proven by the
crucial support provided to many of our employees during
In March, we introduced the 8 Conducts Behavioural the COVID-19 pandemic and it will remain a key part of
Competencies to employees bank-wide. These are eight our approach to strengthening the values-based-corporate
fundamental traits and behaviours that will serve as a culture as we move forward.
moral compass for our people as we seek to build a high-
66
STRATEGIC REVIEW
STRATEGIC PILLARS 3: CUSTOMER-CENTRICITY
Our customers are at the very heart of our business and Even as we accelerate the rollout of our digital customer
our ability to keep growing depends on our ability to meet solutions, we have maintained our focus on improving
not just their needs, but their ever-increasing expectations. customer experience at our branches. We have continued
Strengthening customer-centricity is, therefore, at the very to invest in training frontline staff and new technology
core of our LEAP25 strategy. For BIMB, this means embedding to improve customer experience and deliver a seamless
a customer first mind-set in all our planning and configuring service between our physical and digital channels. We also
our business around a customer-centric approach. continued to strengthen services for our business customers
at branches, with the launch of five new SME Hubs. The
With more than 90% of our transactions now going through new launches bring the number of Hubs to 16, covering all
electronic channels, increased digitalisation will be critical regions, thus increasing the number of customer touchpoints
to delivering on this goal, but our approach goes well and allowing us to better-serve our customers’ needs.
beyond that, encompassing the customer experience at our
physical branches, the quality of our client relationships and Commitment to delivering on customer-centricity is a key
integrating customer-centricity into our corporate culture. part of our HR strategy and we have continued to invest in
ensuring that our people understand, and have the skills to
Our digital initiatives have included the development of deliver on our customer first approach. Our digital upskilling
specific apps that are tailored to the needs of individual programme, which we are expanding across our company,
customer segments, such as the GO by Bank Islam mobile includes a strong customer-focused component. We have
banking app for our retail customers, BEST Invest for mutual also continued investing in training and upskilling the staff
fund investors and GO Biz by Bank Islam mobile app for SME/ at our SME Banking Division, enabling them to provide our
MSME customers. To ensure that we continue to deliver a high business customers with the heightened level of service they
level of service, we have continued to enhance the functionality require in the fast-evolving business landscape.
of these apps to deliver greater convenience for our customers
and keep-up with their evolving needs. To further integrate The steps we took during the year are key to our goal of
digitalisation into our customer-centric approach, we are enhancing customers’ experience. However, our focus on
also leveraging on developing our data analytics capability customer-centricity goes beyond any particular initiative;
to provide customers with more personalised and satisfying rather it represents a major shift in the way that we will
services and experiences. approach our business as we move forward.
67
STRATEGIC PILLARS 4: COMMUNITY EMPOWERMENT
In a year when society and the country continued to feel Staying true to our values as an Islamic bank, we also
the impact of the global pandemic, BIMB continued to raise continued to provide repayment assistance for our customers
the bar on our community empowerment initiatives, both in need, under the Financial Management and Resilience
through our social finance initiatives and by maintaining Programme (URUS) during the year. However, the demand
our focus on financing community-based projects. for assistance under the scheme declined sharply during
the year as the economy gradually recovered.
During the year, we raised a total of RM3.31 million through
Sadaqa House, our principal social f inance vehicle, and In addition to our direct social f inance initiatives, we
disbursed a total of RM2.0 million in 2021, to more than continued to support national development and community
4.700 beneficiaries among the more vulnerable sections of empowerment through increased financing for affordable
society. Sadaqa House has continued to innovate in the way home projects in strategic locations that are targeted at the
that it works to empower communities, and in the way that B40 and M40 segments by providing bridging financing
it allows donors to extend their support, by strengthening for the developments. In 2021, we approved RM138.9 million
digital channels, continuing to forge strategic partnerships in financing for five affordable housing projects, which far
and developing new structures. exceeded our target for the year of two projects with total
financing of RM50 million. Likewise, we also surpassed our
Additionally, we expanded our iTEKAD and BangKIT affordable financing target for infrastructure and public facility projects
micro-f inance programmes to assist small and micro- by approving a total of RM111.9 million for eight projects
entrepreneurs through one of the most difficult periods in 2021, which, once again, exceeded our target of RM50
they have faced by providing them with start-up capital or million for the year.
financing for business expansion. The schemes continue to
provide a pathway for unbanked and underbanked micro-
entrepreneurs to move into the formal banking sector, thus
building longer-term prosperity.
68
STRATEGIC REVIEW
STRATEGIC PILLARS 5: REAL ECONOMY
Through building strategic partnerships, sharing knowledge As the Malaysian business landscape adapted to the new
and providing our clients with customised financial solutions, reality during the pandemic, we continued to help our clients
BIMB continues to play a catalytic role in the development build the resilience needed to navigate the post-pandemic
of Malaysia’s economy, particularly in the SME segment and next normal, by providing them with access to financing and
the Halal Industry. resources to embrace digital and technological solutions to
remain competitive. To support their growth, we introduced
During the year, we continued to build new strategic a range of new financing programmes specifically catering
partnerships and strengthen existing ones, including with to the needs of SMEs, including the Go Halal SME Financing,
key government agencies, such as the Halal Development with a portfolio size of RM100 million; the SME Automation
Corporation (HDC), SME Corporation Malaysia (SME Corp. & Digitalisation Facility (ADF); and the All Economic Sectors
Malaysia), Malaysia External Trade Development Corporation Facility (AES) schemes.
(MATRADE). Our collaboration with these agencies allows
us to leverage on their strengths and offerings to build As we move forward, BIMB will continue to support
the capacity of our clients in the SME and Halal industry the development of the SMEs and the Halal Industry in
sectors, including by helping them access government- accordance with the national economic agenda and as key
backed credit guarantee schemes like the SJPP and CGC growth-drivers for the Bank under our LEAP25 strategy.
Guarantee Scheme.
The Malaysian economy has, repeatedly, proven its resilience

but many entrepreneurs in the SME segment and the Halal
Industry remain unaware of the opportunities and support
available to them. To raise awareness and help them build
capacity as they adapted to the pandemic conditions, we
organised a series of webinars with our strategic partners
to provide information and insights on growth opportunities
and financial management.
69
STRATEGIC PILLARS 6: DIGITALISATION
Digitalisation will be a critical driver in allowing us to

achieve our targets under the LEAP25 growth strategy and
emerge as a leader in Malaysia’s digital banking landscape.
To that end, throughout 2021, we continued to invest in
developing new digital products and services, forged strategic
collaborations with digital innovators and re-oriented our
work culture to embrace digitalisation at every level. At the
heart of digital strategy is our aim of delivering a seamless
and hyper-personalised customer experience across all of
our physical and digital assets. 2021 was a year of major
accomplishments for us in these areas as we accelerate
a bank-wide transformation of the way that we work and
deliver our services.
The banking landscape continued to evolve rapidly during the

year, as the ongoing pandemic continued to see customers
shift to online banking and e-commerce as they embraced
contactless options. The investments made in our digital
services and infrastructure over the last two years left us
well-positioned to capitalise on this shift. Throughout 2021,
we saw strong growth in user numbers and transactions
across all our key digital platforms, with more than 90% of
transactions being conducted through electronic channels
by the end of 2021. Our Internet Banking users recorded
a more than 20% rise to 1.5 million users, during the year,
with the total number of Internet Banking transactions
rising by 50%.
Even more encouraging was the growth in numbers for

our GO by Bank Islam mobile banking app. The number of
active users for the app surged by 79% to reach 849,000
and the total number of transactions almost tripled to
reach 47 million, which far exceeded our goal of 21 million
transactions for the year. The growth in the number of
users and transactions was driven not only by the changing
consumer behaviour caused by the pandemic but also by the
roll-out of new features on the platform to meet customers'
rapidly changing needs. GO by Bank Islam is central to our
digital growth strategy and as we move forward, we will
accelerate the rollout of additional features and functionality
to position it as a super app.
70
STRATEGIC REVIEW
As part of our increasingly ref ined digital strategy, we During the year, we also laid the groundwork to disrupt the
also developed specialised and carefully targeted apps Malaysian Islamic banking market with the planned launch
for different areas of our business. We continued to drive of our new digital banking proposition for 2022. The digital
digital innovation in Islamic finance with BIMB Investment’s infrastructure for the new digital banking proposition is
award-winning BEST Invest App that utilises robo-intelligence developed and tested by our dedicated Centre of Digital
to assist investors in goals-based investing and has now Experience Division, demonstrating the capacity that we
garnered more than 15,000 transacted users. We also took a have built to undertake large and complex digital projects
step to strengthen our position in another key market area with accelerated timelines. The launch of the new digital
with the launch of the Halal Digital Ecosystem for SMEs, or banking proposition will mark a major push by BIMB into
SMEXpert mobile app, to support their growth by enabling establishing our leading position in Malaysia’s digital Islamic
wider networking and knowledge enhancement. Financial Industry.
We further extended our mobile banking offerings for SMEs Achieving our digital ambitions will also require us to integrate
and micro businesses by launching the GO Biz by Bank technology more thoroughly into all our operations in order
Islam mobile app in July. The app allows small merchants to drive efficiencies and remain competitive. During the
to manage their day-to-day business quickly and securely year, we took measures to strengthen our digital core by
through their mobile devices and we successfully on- digitalising our HR and recruitment processes and upgrading
boarded more than 7,000 active users. We see vast potential key infrastructure, such as our cheque clearing system and
for expanding the GO Biz by Bank Islam user base and our Digital Vendor Financing Platform (VFP) that services our
during the year we initiated a project to tie-up with small customers under Petronas and Sarawak Energy Bhd. Critically,
traders at the famous Pasar Besar Siti Khadijah market we also accelerated the digital upskilling of our workforce
in Kota Bharu, which has seen some 400 of the market's with the launch of our in-house Digital Academy and by
1,300 traders migrating from cash to digital payments via expanding our digital training and certification programme.
the DuitNow QR offered through GO Biz by Bank Islam.
We aim to migrate the remaining traders in the market in These initiatives form the first steps of our digital strategy
successive phases and the project will serve as a blueprint under LEAP25. As we move forward, digitalisation is set
for our focused expansion into the micro-business market. to emerge as a key engine of our future growth and for
delivering on our goal of becoming a customer-centric
The banking sector continues to face potential disruption organisation.
f rom other increasingly digital intermediaries such as
FinTech’s. BIMB has embraced the challenge and the
opportunity that this provides. In 2021, BIMB initiated
collaboration with selected FinTech’s in order to leverage on
their agility and innovation while utilising our credibility as
a leading Islamic bank, our customer base and our financial
resources to scale-up the results.
71
Financial Review from the

Group Chief
Financial Officer
BIMB DELIVERED A COMMENDABLE SET OF RESULTS FOR
THE FINANCIAL YEAR 2021. OUR PROFIT BEFORE ZAKAT
AND TAX STANDS AT RM704.2 MILLION AND THE GROUP
HAS DECLARED AN INTERIM DIVIDEND OF 10.93 SEN PER
SHARE FOR THE YEAR.
Dear Shareholders,
2021 remained a year of challenges as the economy continued to feel the

PROFIT BEFORE ZAKAT
impact of the COVID-19 pandemic and faced new headwinds from global
AND TAX (PBZT)
RM704.2
supply chain disruptions and rising inflationary pressure. As we navigated the
challenges of the year, we stayed true to our values as an Islamic bank by
extending support to our customers in need, while maintaining an effective
balance between financial prudence and investing in our future growth.
Million
The operating environment remained challenging, with the Malaysian banking 2020: RM728.2 million
sector continuing to face margin compression as BNM maintained its
benchmark OPR rate at a record-low of 1.75% in order to support the economy.
3.3%
However, the overall economy also continued to benefit from the government’s
RM530 billion in stimulus measures which supported a rebound in business
activity and financing growth. At the same time, the banking sector as a
whole also continued to raise provisions against potential credit losses as the EARNINGS PER
financing moratoriums introduced over the last two years begin to wind-
SHARE
21.9
down in the first half of 2022. Industrywide provisions stood at 1.9% of total
banking system financing at the end of 2021 (2020: 1.7%).
The year under review was also a pivotal one for BIMB as we assumed listed
status on 8 October 2021. The relentless effort at garnering both existing and
Sen
potential investors resulted in a highly-successful bookbuilding exercise at 2020: 22.0 sen
BIMB Holdings Berhad in April 2021, with our shares being oversubscribed,
which underscores investors’ confidence in the future of our Group as they
look beyond the short-term challenges.
72
PERFORMANCE REVIEW
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.
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
FINANCIAL REVIEW FROM THE GROUP CHIEF FINANCIAL OFFICER
Maintaining Our Focus on Growth that we have made in response to the challenging credit
Despite the volatile operating environment, the Group’s environment. Our total impaired financing rose from RM373
Total Assets increased by 7.4% during the year, to reach a million in 2020, to RM568 million in 2021.
record high of RM80.2 billion. Growth in total assets was
underpinned by encouraging growth in our consumer Additionally, we have continued to maintain our Financing
banking segment. Net Financing grew by 6.4% (2020: Loss Coverage ratio at well above industry levels. Our ratio
10.5%), which was well-above the industry’s average of 4.1% stood at 187.2% at the end of 2021, in contrast to the industry
in 2021. Our financing growth continues to be driven by average of 129.0%.
our attractive products and customer preference for our
Effective Liquidity Management
differentiated offerings.
We continued to strengthen our liquidity buffers during the
The Group’s total deposits and investment accounts grew by year, with our Liquidity Coverage Ratio (LCR) rising by 35.2%
6.8% to RM67.8 billion during the year. Total current, savings to 180.1%, which is significantly above the industry average
accounts and transactional investment accounts (CASATIA) of 153.7%.
reached a record high ratio of 39.6% of total deposits and
At the same time, our Net Stable Fund Ratio rose to 113.1%
investment accounts, up from the 36.1% recorded in 2020,
as at December 2021, up from 110.4% the year before. This
and above the industry average of 32.4%. The total value
year-on-year increase in long-term liquidity was, mainly, the
of our CASATIA stood at RM26.8 billion at the end of 2021.
result of a RM2.5 billion increase in retail and SME deposits.
Maintenance of High Asset Quality While the Group has maintained its existing stance on
credit management, we have also adopted a more cautious
By effectively managing our credit risk, BIMB has consistently
and selective approach, with more granular forward-looking
maintained one of the lowest Gross Impaired Financing (GIF)
assessments that incorporate ESG considerations. In addition,
ratios in the industry. Our GIF ratio stood at 0.96% at the
we recalibrated our credit scorecard to factor-in the heightened
end of 2021, up from 0.67% in 2020, but still well below the risks from the pandemic. We have also stepped-up client
industry average of 1.44% for the year under review. The rise engagements and monitoring to reduce the likelihood of
in our GIF ratio is mainly due to the pre-emptive provisions credit risk incidents materialising.
TOTAL ASSETS INCREASED TO TOTAL DEPOSITS AND
RM80.2
INVESTMENT ACCOUNTS
ROSE TO
Billion RM67.8
(2020: RM74.6 Billion)
Billion
NET FINANCING GREW TO TOTAL CAPITAL RATIO
RM58.2
LOWER AT
Billion 18.6%
(2020: 19.8%)
74
PERFORMANCE REVIEW
Strong Capital Position OUTLOOK

BIMB maintains a strong capital base. Our total capital ratio of The outlook for the year ahead is projected to be more
18.6% (2020: 19.8%) provides an ample buffer for loss absorption supportive of our performance. BIMB forecasts that the
and business growth. Malaysian economy will grow by 5.3% in 2022, almost double the
rate achieved in 2021. Our optimism for the year ahead comes
Pre-tax Return-on-Equity (ROE) for the year stood at 11.1% with a degree of caution though, as the evolving economic
(2020: 12.1%). Our ROE after zakat and tax stands at 8.4% for and geo-political scenario carries considerable downside risk.
2021. Return on Assets (ROA) before zakat and tax declined
slightly from 1.0% in 2020 to 0.9% in the year under review. Nevertheless, as we move forward, we are confident that our
ample pre-emptive provisions, the high quality of our assets
Investing in Growth and Optimising Costs and our healthy capital level leave us well-positioned to navigate
Our cost-to-income ratio (CIR) rose to 57.0% (2020: 53.8%). The through challenging market conditions and continue delivering
rise in CIR reflects the higher operating expenses we have value for our shareholders.
incurred as we invest in our workforce and infrastructure.
Among the expenses are the improvements that we are Notwithstanding the continued challenges, the business
making to digital infrastructure. environment in the year ahead presents a more favourable
prospect, with rising expectations of an economic recovery
Cost optimisation remains a key priority as we move forward, helping spur growth in the Malaysian business sector. These
in line with our LEAP25 strategy which sets a clear target of strong growth expectations are underpinned by BNM’s
bringing our cost-to-income ratio down. In the year ahead, continued maintenance of low interest rates, the move to the
our expenditure will, increasingly, be directed to earnings- endemic phase of COVID-19 and the reopening of Malaysia’s
accretive targets. borders. We believe that BIMB is well-positioned to capitalise
on these opportunities.
EFFECTIVE RISK MANAGEMENT Moving forward, our growth will continue to be driven by our
principles as a VBI. This commitment aligns us with the growth
BIMB conducts its business in accordance with the principle of
strategy for the Malaysian financial sector laid-out in BNM’s
al-ghunm bi al-ghurm, or that one is entitled to a gain if one
Financial Sector Blueprint (FSB) 2022-2026. The FSB sets out
is willing to bear the loss. Accordingly, we maintain a robust
the development priorities for Malaysia’s financial industry to
risk management framework that addresses both the general
promote a smooth transition to green economy and integrate
risks inherent in the operating environment and those that
climate risk management into banks’ internal functions &
are particular to our core business. In the current operating
operations. The FSB aims to deliver on these goals through
environment, we recognise credit risk due to the uncertainty
five key thrusts: Fund Malaysia’s economic transformation;
in the current economic environment and operational risk
Elevate the financial well-being of households & businesses;
arising from changes in consumer behaviour, with a shift
Advance digitalisation of the financial sector; Position the
to digital banking, as the key risks that the Group faces.
financial system to facilitate an orderly transition to a greener
Additionally, we recognise that cyber risk is a growing challenge
economy; and Advance value-based finance through Islamic
as we embrace an increasingly digital future and we have
finance leadership. These five thrusts, which will now set the
invested in hardening our systems and providing our people
direction for the Malaysian financial industry, are aligned with
with the necessary skills to mitigate the threat from cyber risk.
BIMB’s LEAP25 roadmap which places VBI at the heart of our
business model.
A full discussion on our key risks and risk management policy
can be found on pages 58 to 61 and 193 to 208 of this report.
AZIZAN ABD AZIZ

Group Chief Financial Officer
75
5-YEAR
FINANCIAL SUMMARY
Financial Year Ended 31 December 2021 2020 2019 2018 2017
Operating Results (RM'000)

Total Revenue 3,167,757 3,342,202 3,644,696 3,336,502 3,008,181
Income Attributable to Depositors
and Investment Account Holders 978,815 1,228,505 1,551,945 1,383,834 1,208,337
Profit Before Zakat and Tax ("PBZT") 704,221 728,213 843,480 810,258 767,053
Profit After Zakat and Tax ("PAZT") 534,305 564,954 627,609 593,887 566,118
Key Statements of
Financial Position Items (RM'000)
Total Assets 80,156,214 74,637,022 67,593,802 63,938,733 57,742,914
Total Financing 58,153,769 54,670,635 49,472,522 45,680,680 42,113,420
of which:
Gross Impaired Financing 568,383 373,234 433,001 425,937 398,277
Investment in Securities 15,535,542 13,739,191 12,809,708 11,719,258 9,633,608
Deposits from Customers 57,338,834 51,077,262 47,408,738 49,895,232 46,192,910
Investment Accounts of Customers 10,452,902 12,368,528 10,240,373 5,176,819 4,260,185
CASATIA 26,845,680 22,907,392 18,860,995 17,668,839 17,466,618
Shareholders' Equity 6,399,938 6,285,699 5,714,453 5,276,407 4,959,704
of which:
Share Capital 3,445,757 3,306,118 3,012,368 3,012,368 2,869,498
Ratio Analysis
Return on Equity (based on PBZT) (%) 11.10 12.14 15.35 15.83 16.42
Return on Assets (based on PBZT) (%) 0.91 1.02 1.28 1.33 1.35
Return on Equity (based on PAZT) (%) 8.42 9.42 11.42 11.60 12.12
Return on Assets (based on PAZT) (%) 0.69 0.79 0.95 0.98 1.00
Cost Income Ratio (%) 57.01 53.81 53.56 52.97 57.26
Financing to Available Fund Ratio (%) 79.00 79.24 78.99 77.71 81.41
CASATIA Ratio (%) 39.60 36.11 32.72 32.08 34.62
Gross Impaired Financing Ratio (%) 0.96 0.67 0.86 0.92 0.93
Financing Loss Coverage (%) 187.19 248.63 179.32 187.75 159.98
Total Capital Ratio (%) 18.56 19.82 18.66 17.77 16.44
Earnings Per Share (sen) 21.87 22.19 25.00 23.96 23.27
Gross Dividend Per Share (sen) 10.93 10.92 12.45 11.86 11.50
Net Assets Per Share (RM) 3.08 2.42 2.28 2.10 2.01
76
5-YEAR
PERFORMANCE REVIEW
Total Revenue Income attributable to depositors Profit before Zakat and Tax
(RM Million) and investment account holders (RM Million)
(RM Million)
1,552
843
3,645 810
3,342 1,384 767
3,337 728
3,168 1,229 704
3,008 1,208
979
‘17 ‘18 ‘19 ‘20 ‘21 ‘17 ‘18 ‘19 ‘20 ‘21 ‘17 ‘18 ‘19 ‘20 ‘21
Total Assets Total Financing Gross Impaired Financing

(RM Million) (RM Million) (RM Million)
80,156 58,154 568

74,637 54,671
67,594 49,473
63,939 45,681
57,743 42,113 426 433
398
373
‘17 ‘18 ‘19 ‘20 ‘21 ‘17 ‘18 ‘19 ‘20 ‘21 ‘17 ‘18 ‘19 ‘20 ‘21
Deposits from Customers Investment Accounts Shareholders’ Equity

(RM Million) of Customers (RM Million)
(RM Million)
12,369 6,286 6,400
57,339
5,714
49,895 51,077 10,453
47,409 10,240 5,276
46,193
4,960
5,177
4,260
‘17 ‘18 ‘19 ‘20 ‘21 ‘17 ‘18 ‘19 ‘20 ‘21 ‘17 ‘18 ‘19 ‘20 ‘21
77
FINANCING
BY CONTRACT
2021
0.1% 5.6%
0.2% 3.6%
0.2% Bai’ Bithaman Ajil
Murabahah
Bai’ Al-Dayn
Bai’ Al-Inah (0%)
At-Tawarruq
Ijarah Muntahiah Bit-Tamleek
Istisna’
90.3%
2020
0.2% 6.8%
0.2%
3.7%
0.1% Bai’ Bithaman Ajil
Murabahah
Bai’ Al-Dayn
Bai’ Al-Inah (0%)
At-Tawarruq
Ijarah Muntahiah Bit-Tamleek
Istisna’
Ar-Rahnu (0%)
89%
78
FINANCING
PERFORMANCE REVIEW
BY SEGMENT
2021
3.7%
12.1%
Consumer
9.2% Commercial
Corporate
SME
75.1%
2020
3.2%
12.5%
Consumer
9.9% Commercial
Corporate
SME
74.4%
79
SIMPLIFIED STATEMENTS
OF FINANCIAL POSITION
as at 31 December 2021
TOTAL ASSETS
0.3% 1.2% 6.5% 0.3% 1.1% 7.0%
19.4% 18.4% Cash and short-term funds
Investment in securities
RM80.2 billion RM74.6 billion
Financing, advances and others
as at as at
31 December 31 December Statutory deposits with
2021 2020 Bank Negara Malaysia
Other assets
72.6% 73.2%
TOTAL LIABILITIES AND EQUITY
8.0% 8.4%
2.4% 2.3%
2.5% 2.3%
2.5% 2.0% Customers' deposits &
investment accounts
Recourse obligations on
RM80.2 billion RM74.6 billion financing sold to Cagamas
as at as at
Subordinated Sukuk Murabahah
31 December 31 December
2021 2020 Other liabilities
Equity
84.6% 85.0%
80
STATEMENT OF
PERFORMANCE REVIEW
VALUE ADDED & DISTRIBUTION

STATEMENT OF VALUE ADDED
2021 2020
RM’000 RM’000
Net income derived from investment of depositor’s funds 1,441,384 1,497,534

Net income derived from investment account funds 337,411 291,908
Net income derived from investment of shareholder’s funds 459,058 460,635
Net allowance for impairment on financing and advances, net of recoveries (190,738) (208,671)
Loss on modification of financial assets (48,911) (136,380)
Net allowance for impairment on other financial assets (7,406) 2,757
Direct expenses (10,938) (13,660)
Finance cost (89,887) (91,458)
Overhead expenses excluding personnel and depreciation (402,697) (354,539)
1,487,276 1,448,126
DISTRIBUTION OF VALUE ADDED

2021 2020
RM’000 RM’000
To employees:
Personnel expenses 723,830 663,367
To the government and zakat authority:
Taxation and zakat 169,916 163,259
To providers of capital:
Dividend to shareholders 226,893 281,536
To reinvest to the Group:
Depreciation 59,225 56,546
Retained earnings 307,412 283,418
1,487,276 1,448,126
81
QUARTERLY
PERFORMANCE
Financial year ended 31 December 2021
RM million Q1 Q2 Q3 Q4 Year
Total revenue 771 834 746 817 3,168
Net income before impairment 532 591 501 565 2,189
Profit before overheads, zakat and tax 521 557 460 453 1,991
Profit before zakat and tax 214 261 153 76 704
Profit after zakat and tax 159 194 102 79 534
Earnings per share (sen) 6.10 7.44 4.08 3.84 21.87
Dividend per share (sen) – – 10.93 – 10.93
Financial year ended 31 December 2020
RM million Q1 Q2 Q3 Q4 Year
Total revenue 924 783 876 759 3,342
Net income before impairment 546 466 591 511 2,114
Profit before overheads, zakat and tax 516 442 436 514 1,908
Profit before zakat and tax 222 167 137 202 728
Profit after zakat and tax 164 121 103 177 565
Earnings per share (sen) 6.55 4.82 3.99 6.81 22.19
Dividend per share (sen) – 5.55 – 5.37 10.92
82
FINANCIAL
PERFORMANCE REVIEW
CALENDAR
Transfer of Listing
8 OCTOBER 2021 (Friday)

Bank Islam – Listed And First Trading Day
Extraordinary General Meeting
19 NOVEMBER 2021 (Friday)

39th Annual
Extraordinary General Meeting General Meeting
Financial Results Announcements
29 NOVEMBER 2021 (Monday) VENUE

FULLY VIRTUAL
Quarterly report on consolidated results for the financial period
At Broadcast Venue
ended 30 September 2021
Level 10
Menara Bank Islam
22 Jalan Perak
28 FEBRUARY 2022 (Monday) 50450 Kuala Lumpur
Quarterly report on consolidated results for the financial period
ended 31 December 2021
DATE
Analyst Briefing 23 MAY 2022 (Monday)
10.00 a.m.
1 MARCH 2022 (Tuesday)

Briefing on FY2021 Financial Results
Dividend
Interim Dividend of 10.93 Sen Per Share
Notice 10 December 2021 (Friday)

Entitlement 24 December 2021 (Friday)
Payment 20 January 2022 (Thursday)
83
CONSUMER
BANKING
WHO WE ARE
Consumer Banking is the largest division within Bank Islam and we accounted for 56% of the Group’s net income in
2021. We offer a full range of consumer banking products and services, distinguished by our status as a full-fledged
Islamic bank. The range and quality of our products and services saw our share of the competitive Malaysian consumer
banking market rise from 4.66% to 4.79% in 2021. Our Total Assets increased by 7.5% to RM44.6 billion during the year,
exceeding our target of 6% growth.
KEY INITIATIVES
Sustainable Prosperity
We grew our sustainable revenue streams by expanding our reach and offerings, and by pursuing strategic
collaborations with targeted bodies and organisations.
• Engaged in continuous collaborative engagements with Professional Associations to promote our financial
solutions.
• Launched the WinBig campaign targeted at Government & Package Employers.
• Established a strategic partnership with Managepay in PLUS through deployment of our terminals
• Opened four new sales hubs under our Farihan business.
• Established a new merchant acquiring business model, called STAR (Strategic Acquiring Partner) which
acquired PDRM as an e-Commerce merchant.
• Launched the My Dream Home campaign and Ar-Rahnu Jom Tambah Duit Campaign to accelerate the
growth of our financing portfolio.
• Extended our Professional Programme to Home Financing.
Customer-Centricity
We continued to enhance customer experience by deploying digital solutions and simplifying processes
across a range of services.
• Increased convenience in the Amanah Saham Bumiputera (ASB) financing process by accepting
documentation via digital image
•
Improved Consumers’ risk appetite by revising the financing amount eligibility and removing the imposition
of capping against monthly income for Personal Financing, as well as revision of DSR and the submission
of application documents via digital platform.
• Expanded payment channels for Ar-Rahnu to include ATM/CDM and Internet Banking options.
Digitalisation
We applied digital solutions to pursue new customer acquisition and improve operational efficiency.
• Utilised a sales gamification campaign to mobilise for a customer lead generation campaign through the
Leads2Win app.
• Pursued customer leads online via the EzXcess digital platform.
• Expanded our digital marketing through key social media platforms, such as Facebook, Instagram and
via Google Search under our Digital First initiative.
• Automated reporting across seven areas through Robotic Process Automation (RPA).
84
BUSINESS REVIEW
CHALLENGES IN 2021 OPPORTUNITIES IN 2021
• The prolonged nationwide MCO required branches • We pursued a promising new growth market by
to remain closed during the lockdowns and also increasing financing for the Non-Bumiputera
saw the closure of various offices that are vital to customer segment.
the efficient functioning of the banking system, • Effectively utilised digital channels for customer
such as lawyers’ offices and government Land lead generation, both through online platforms
Offices, which impacted the speed and number of and through virtual engagements with the Packaged
transactions. Employer segment.
• A range of customers showed diminished appetite • We improved operational efficiency and raised
for our financial product offerings as they faced employee productivity at Consumer Banking by
financial pressure, with some seeking support under implanting Robotic Task Automation for a range
the Repayment Assistance programme. of routine tasks.
44,583.46 2,207.52
Asset Growth: 41,459.23
7.5%
1,964.03 1,956.43
37,230.69
(2020: 11.4%)
Fee-Based Income:
5.2%
(2020: -4.1%)
Total Income:
RM1,956.43 million 19’ 20’ 21’ 19’ 20’ 21’

(2020: RM1,964.03 million)
Total Outstanding Total Income
(RM Million) (RM Million)
85
CONSUMER BANKING
PRODUCT HIGHLIGHTS
Grew our non-national Implemented a Extended the target market for

vehicle financing portfolio to Consumer ourPersonal Cash
16.4%, up from Financing Line-i personal
14.3% the year before. Process Review, financing to
the removal of capping & professionals
revised DSR in Oct 2021 in Oct 2021
Switched our Ar-Rahnu contracts Straight-

Expanded our
to aTawarruq Through-Processing
Structure in March (STP) mechanism to ten
Package Employers, simplifying the
2021, to improve loan application process.
efficiency
OUTLOOK AND STRATEGIC PLANS FOR 2022
Competition will remain intense in the consumer banking market as banks target high-growth and higher net worth
consumer segments. Uncertainties still remain as the Malaysian economy continues to recover, with the impact of the
pandemic still ongoing and many retail customers facing financial challenges once finance repayment moratoriums end.
The consumer banking landscape has also evolved with customers shifting to online and other self-service channels.
Despite the challenges, BIMB aims to grow our financing by 8% to RM47.5 billion in 2022 through implementing a range
of strategies, including:
• Growing our Green Financing portfolio through ESG initiatives such as hybrid & electric vehicle financing and financing
for home solar panels.
• Sustaining growth in our Packaged Segment and Secured Financing portfolios.
• Growing our customer base of young graduates through our GradONE programme.
• Broadening our market presence by opening 20 new Ar-Rahnu branches, 10 new Vehicle Sales Hubs and 4 new
Farihan Sales Hubs
• Leveraging on digitalisation in key areas, including deploying analytical tools for customer insights, improving customer
communications and offering more efficient card management via Internet Banking and our GO mobile banking app.
• Improving loan applicants’ experience by simplifying our consumer financing process review and vehicle flow process
review.
• Maximising productivity by automating daily tasks and analytical tools for business insights, allowing us to focus on
and deliver a better customer experience.
86
DEPOSITS AND
BUSINESS REVIEW
CASH MANAGEMENT
WHO WE ARE
Deposits & Cash Management drives Bank Islam’s strategic initiatives to achieve sustainable deposits growth. By developing
viable strategies suited to the evolving business and economic environment, we reduce BIMB’s cost of funds by achieving
the right balance between short-term and long-term funding strategies. We have a particular focus on growing CASATIA,
which forms one of the essential sources of funds that contributes to a stable liquidity adequacy ratio for the Bank. To
drive deposit growth we develop innovative new products and customer solutions suited to the contemporary economic
and business environment. During the year, we continued to develop strategies to capture new customer segments, and
have increasingly leveraged on the power of digitalisation, utilising social media to reach new target markets. We have
also developed a range of new financial solutions suited to the current economic environment, with distinct solutions
for particular market segments.
KEY INITIATIVES
•
Increase individual and non-individual CASATIA through a range of marketing initiatives, campaigns and
promotions.
•
Executed product campaigns to push for deposits growth for existing products and attract new customer
segments such as non-Bumiputera, SMEs and corporate bodies.
•
Increase collaboration with government agencies and universities to promote Bulk Account Opening for
their employees and students. Other collaborative efforts include co-branding debit cards with targeted
partners to increase new account subscriptions.
•
Offering Cash Management solutions to cooperatives, mosques, healthcare companies, schools and legal
firms, as well as enhancement of eBanker through Soft Token for conglomerates and companies.
•
Introduced the iGain Corporate transactional investment account for new corporate customers.
•
Increased lead generation from social media to enhance marketing reach and increase growth of CASATIA
•
Leveraged on SnapNPay platform to cater for e-contributions relating to State Religious Council/Zakat/
NGOs, for local authorities and for mosques.
Customer-Centricity
We undertook a range of new initiatives to introduce new products and simplify transactions for our customers
•
Providing ePayment and eCollection services to State Religious Council and Zakat Collections agency
•
Promotion of Charity Link and special campaigns
•
Encouraged companies to switch to online transactions by promoting subscriptions to SnapNPay via
SnapNPay Campaign/Package.
Real Economy
Continued to support the growth of the national economy and SME sector by offering solutions that widen
financial access and improve transactional efficiency.
•
Introduced our Cashline for Awfar and SME Hybrid products to widen customers’ financing options and
drive growth in our Al Awfar & iGain offerings, as part of our retention strategy for high net worth customers.
Digitalisation
•
Implemented Robotic Process Automation digital initiatives to increase efficiency.
87
DEPOSITS AND CASH MANAGEMENT
• Continued uncertainty due to the COVID-19 • We explored strategies to tap the non-Bumi
pandemic and the transition to a new government segment in-order to grow deposits.
in Malaysia impacted economic performance and • To capture higher deposits from SMEs, we initiated
household incomes and dampened deposit growth. a dedicated team focusing on SMEs at Head Office
• Against the evolving backdrop, we faced the and in the Regions.
challenge of ensuring that we had the right • Strengthened collaboration with government
infrastructure to meet customers’ changing needs agencies to secure their main account, as well as
and expectations and remained on par with our their staff salary transfer and cash management
peers and competitors. solutions.
• The economic environment increased the challenge
of penetrating new market segments and we
adopted a strategy of strengthening Best Fit
Delivery Channels to reach target groups. We also
strove to retain customer loyalty by managing
customer’s expectation through effective marketing
platforms.
Overall Deposit & Investment: Overall CASATIA grew by Overall Non-CASATIA grew by
RM3,984.8 million RM416.8 million

grew by
RM4,401.6 million in 2021( up 17.5% against Dec 20) (3.1% against Dec 20)
in 2021 (up by 12.2% against
Dec 20)
TOS (RM Million) GROWTH (RM Million)
5,482
40,572
36,170
4,402
30,688 3,933 3,985
3,694
26,780
22,795,
18,863 2,378
13,375 13,792
11,825 1,550
1,316
417
19’ 20’ 21’ 19’ 20’ 21’
CASATIA Non CASATIA Overall
88
BUSINESS REVIEW
AWARDS
• Bank Islam was the Gold Winner in ‘Anugerah Pilihan Pengguna Majlis
Tindakan Pengguna Negara 2020/21’ through collaboration between Deposit
& Cash Management and Austin Height Branch.
• Bank Islam received 3 awards at the ‘Malaysian e-Payments Excellence

≠Awards 2021’:
i. Best FPX Bank

ii. Best JomPay Acquirer
iii. Best FPX Acquirer (Bank).
The outlook for the year ahead is more positive, as economic growth accelerates. However, real challenges will remain.
The SME and micro-enterprise sectors look set to benefit from higher growth and increased employment, but also face
risks from labour shortages and rising inflationary pressure. Larger corporations, with more than RM100 million in earnings
also face the additional prospect of higher taxes from the one-off Cukai Makmur, which may result in a slight decline in
savings. While households will start rebuilding their savings, a considerable number of individuals and micro-enterprises
may face pressure as the finance moratoriums end in March 2022. Consumers’ investment preference may also be more
restrained and skewed towards mutual funds, insurance savings and property. Against this backdrop, we are focused on
maintaining a strong liquidity position through increasing deposits. To continue growing in 2022 and beyond, we are
implementing a series of strategic plans to:
• Drive growth in the Individual market and SME segments

• Maintain the Individual CASATIA ratio at above 80% of the overall portfolio.
• Continue to strengthen and promote our products & business solutions.
• Implement continuous process improvements to raise operational efficiency.
• Strengthen collaboration with business partners.
• Continue supporting BIMB’s VBI initiatives
89
COMMERCIAL
BANKING
WHO WE ARE
Our mission is to provide a wide range of Shariah-based financial solutions to Commercial Banking customers. We are
committed to promoting best practices and ensuring efficient service delivery to all customers, guided by our principles
as a values based intermediary. Our greatest strength is our Business Team, that maintains nationwide coverage, offering
our clients the support that they need, whenever and wherever necessary.
KEY INITIATIVES
We aim to increase our fee-based business activities in order to improve profitability. Our key growth drivers
will include:
• Trade fee-based products, such as our ez Bank Guarantee (ezBG), which is an irrevocable written obligation
issued by BIMB to assure payment on demand by the beneficiary, and that offers an easy approval process
for clients.
• Focus on growing our bancatakaful products, both by penetrating new markets segments and onboarding
new clients, as well as by increasing takaful contributions from existing customers.
• Expanding our Green Financing in key growth areas, including green energy, waste management, water
management and other ESG-aligned industries.
Community Empowerment
Contributing to the well-being of the nation.
• Focus on financing of affordable home projects by providing bridging finance for developments in strategic
locations, and which offer a promising take-up rate. This is in line with the Government’s initiative to
provide more affordable homes for the B40 and M40 segments.
• Financing of infrastructure and public facility projects: We will leverage on the Contract Financing structure
to provide working capital to private sector developers who have been awarded infrastructure and other
public projects by the government and government-linked companies.
Real Economy
Support national development goal and catalyse growth in the Halal Industry SME sector.
• We will support our clients’ growth and operations by providing vital structured financing services, including
contract financing, vendor financing and bridging financing. Payment risk to BIMB will be mitigated by
maintaining effective control mechanisms.
• Continue to leverage on the government-backed SJPP/CGC Guarantee Scheme to provide our SME clients
with the liquidity and financial credibility that supports their growth.
Digitalisation
Leveraging on digitalisation to deliver efficiencies and increased customer convenience.
• Development of our Digital Vendor Financing Platform and our Digital BG 1:1 platform to facilitate and
simplify transactions for customers, including by enabling digital submissions and faster service delivery
by BIMB.
• Optimising our credit processing and assessment via our Digital Credit Assessment tool.
90
BUSINESS REVIEW
Repayment Assistance Improved Asset Quality
• We channelled extensive financial assistance to our • To avoid deterioration in our asset quality position,
existing customers who were affected by the we continued diligent monitoring to ensure that
pandemic, by tapping the various relief schemes any potential loan distress issues were duly
introduced by the government. addressed during the repayment assistance period.
• In total we assisted 191 customers, with total • As a result, our delinquent and impaired loan
exposure of RM2.0 billion. This included assistance position has been lower than the industry averages,
through instalment deferment, as well as the at 0.49% and 1.99% respectively as at Dec’21
rescheduling and restructuring of facilities.
Selective Project Financing
Property Overhang
In funding affordable home development projects, we
• The soft economic conditions resulting from the worked only with reputable developers with strong
COVID-19 pandemic saw a continued overhang in track records under established schemes, such as
the property market. The overall value of overhang PR1MA, PPA1M, RUMAWIP. In addition we maintained
property, which includes those unsold and under tight pre-sale conditions prior to disbursement and
construction, increased by 7.4% as at end of H1 focused only on projects in strategic locations.
2021 to RM109 billion in the space of just six months.
(source: NAPIC).
• Excess supply of non-residential & commercial
property e.g. office space & shopping complex
remains uncertain.
Restrictions on SCEL with TNB
• We face difficulties in growing our exposure in

renewable energy despite the huge opportunity,
due to nearly reaching our Single Counterparty
Exposure Limit (SCEL) with TNB Group
• We pursued additional green opportunities by
shifting our focus to the wider green technology
and the green economy ecosystem.
91
COMMERCIAL BANKING
OUTLOOK AND STRATEGIC

FINANCIAL HIGHLIGHTS PLANS FOR 2021
As the economy resumes its growth trajectory,

7.00 7.14
Income from trade we will not be returning to business as usual.
6.56
fee based products: The operating environment has changed, and
RM14.9 million Commercial is evolving to stay ahead of the

changes. On the operational front, much of our
current focus is on leveraging on digitalisation.
This will involve strengthening our digital
backbone to improve operational efficiency;
Income from employing data monetisation strategies; and
bancatakaful products: developing advanced digital assets to better-
19’ 20’ 21’

RM1.15 million serve our clients. On the business front, our key
objective in 2022 will be to grow sustainable
assets in our financing book by targeting the
Asset Growth
following segments:
(RM Billion)
• Green Financing: Focus on increasing Green
Green Financing Financing and the financing of ESG-aligned
394
approved:
sectors, such as renewable energy, and
332.9
306.7 RM31.8 million socially and environmentally responsible
businesses.
(5 projects)
• Property Development: Our focus will be on
financing affordable home developments in
strategic areas, undertaken by reputable
Financing of affordable developers.
home projects • Government Public Projects: Financing the
approved: capital requirements of private sector
RM138.9 million
corporates that have been awarded
19’ 20’ 21’
development contracts by the government
(5 projects) and government-linked companies (GLCs).
Income Growth • Oil and Gas: Continue collaborating with
(RM Million) Petronas by offering financing and assistance
to their vendors. To date, we have approved
2.7 Financing of a total of RM411.8 million to 100 vendors
Infrastructure & under the Petronas Vendor Financing
2.3
Public Facility Program. We aim to remain the preferred
1.99 projects approved: bankers of Petronas’ vendors.
RM111.9 million • Telecommunications: Increase our exposure

in ICT above the RM44 million achieved by
(8 projects)
the end of 2021 by focusing on the Capex
requirements of telcos, in order to support
the National Digitalisation Agenda.
• Healthcare: Providing financing for capex, as
Structured
well as offering supply chain financing, in
Financing approved:
21’
the wider ecosystem that supports the
RM284.6 million
19’ 20’
healthcare system. This includes the hospital,
Asset Quality Position
pharmaceutical and medical devices
(%) (46 contracts/projects)
industries.
92
SME
BUSINESS REVIEW
BANKING
WHO WE ARE
As the Small and Medium Enterprises (SME) arm of Bank Islam, SME Banking provides comprehensive Shariah-compliant financing
solutions with the mission to support the growth of SMEs and the SME sector. We offer a wide range of products and services
that can be tailored to meet individual customers’ needs at every stage of their growth journey. With our comprehensive range
of products and services and established track-record, we aim to be the partner of choice for SMEs in the Halal Economy sector.
KEY INITIATIVES
Increase reach to targeted and untapped segments to grow our business and strengthen the Malaysian SME
ecosystem. Strengthening our market presence by growing our financing portfolio in the Halal economy.
• Introduced the Go Halal SME Financing programme, exclusively for SMEs registered under the Halal Integrated
Platform, to enable them to embark on Halal certified businesses. The scheme has a total portfolio of RM100
million.
• Forged strategic collaborations with business associations, government agencies and the private sector to
assist SMEs in capacity building, provide financial guidance and relief, and to grow the number of Malaysian
SME exporters.
• Engaged with universities, business associations and the private sector to raise awareness of available SME
financing and BNM-initiated funds targeted at these specific sectors.
• Forging partnerships with non-Bumiputera business associations in order to introduce and promote Islamic
financing solutions to the non-Bumiputera segment.
Customer-Centricity
Bridge and strengthen customer relationships through deeper engagement with stakeholders.
• Expanding SME Banking footprint with 5 new Hubs, for a total of 16 SME Hubs across all regions nationwide,
to increase customer touchpoints and improve customers’ experience.
• Conduct campaigns to promote engagement between customers and consumers.
• Conduct staff training exercises to produce well-informed staff capable of delivering exceptional customer
service and improved customer experience.
Real Economy
Support the national agenda of developing the Small and Medium Enterprises (SME) sector and the Halal
Industry.
• Roll-out of new programmes to meet SMEs’ needs, including the Go Halal SME Financing, the SME Automation
& Digitalisation Facility (ADF) and the All Economic Sectors Facility (AES).
• Widened outreach and offerings to SMEs by forging strategic partnerships with business associations and
key government agencies, thus developing synergies and supporting the growth of the SME sector.
• Conducted joint webinar sessions with Strategic Partners to provide business insights and knowledge on
financial management and solutions.
Digitalisation
Establishing the Halal Digital Ecosystem for Small and Medium Enterprises.
• Launched the SMEXpert mobile app to facilitate business growth, knowledge enhancement and wider
networking among Malaysian SMEs.
• Optimised digital marketing tools to improve customer reach, increase product awareness and accelerate
lead acquisition.
93
SME BANKING
COVID-19 Movement Restrictions • Deployment of digital avenues and platforms to

improve communications with customers, strengthen
Limited or total absence of physical interactions with
customers and target markets impacted the quality market outreach and deepen support for SMEs.
of customer engagement and acquisition, requiring •
Strengthened partnerships with government
innovative new ways to reach target audiences. agencies, business and professional associations,
and a wide range of private sector players to increase
Disruptions to SME Businesses outreach to targeted and untapped market segments.
• Implemented various financial assistance programmes
SMEs faced various disruptions arising from the
to help relieve customers’ financial burden, thus
COVID-19 Movement Restrictions and natural disasters,
which impacted their business performance including forging stronger long-term relationships.
workers’ and proprietors’ livelihoods. • Introduced new financing programmes and business
development initiatives, including targeted sector-
specific programmes, to promote the growth and
sustainability of SMEs and to grow our client base.
101.8
Fund-Based Non-Fund Gross Impaired

28.6 Income Based Income Financing
414% 202% 1.46%

2020: 5.3% 2020: 5.8% 2020: 3.24%
20’ 21’
Net Asset Growth (%)
94
BUSINESS REVIEW
PRODUCT HIGHLIGHTS
New Financing Programmes introduced in 2021 included:
GO HALAL SME ALL-ECONOMIC SECTOR

FINANCING PROGRAMME FACILITY (AES) – a BNM-
(GHF) initiative fund that aims to enhance
access to financing for SMEs across
Tapping into the Halal Segment by various sectors to support growth.
providing a multi-financing product
package tailored to SMEs’ needs.
SME AUTOMATION AND DISASTER RELIEF

DIGITALISATION FACILITY FACILITY (DRF)
(ADF) – a BNM-initiative fund that – a BNM-initiative fund aimed at
aims to encourage SMEs to automate alleviating the financial burden on
processes and digitalise operations. SMEs affected by the recent floods.

AWARDS
As Malaysia moves to the endemic phase of COVID-19, many SMEs are looking to move
beyond the survival stage and have shown increased desire to pursue growth and expansion.
The rapid digital acceleration and technological advancements during the pandemic have
opened up new markets, and created new business opportunities for SMEs, both locally
and internationally. To meet the evolving needs of SMEs as they seek to capitalise on these
opportunities, SME Banking will focus on:
World Halal • Introduction of more attractive SME financing products and programmes that are tailored
Excellence to the evolving needs of SMEs, including targeted financing to promote digitalisation.
Awards 2021 • Expanding and strengthening our strategic collaborations with key government agencies,
- Halal Financial GLCs, private sector corporates, and various Bumiputera and Non-Bumiputera business
Excellence associations to support the growth of the SME Halal ecosystem.
Award • Deepening engagement with SMEs, particularly through the resumption of face-to-face
meetings facilitated by our strategic partners.
• Develop attractive product bundling packages that add value for our clients.
95
TREASURY
AND MARKETS
WHO WE ARE
The Treasury & Markets (T&M) Division provides Shariah-compliant treasury solutions to meet the business needs of our
clients across multiple segments. Our products and services include Money Market, Foreign Exchange (FX), Fixed Income
Markets, and structured products.
The year under review saw continued volatility in global financial markets as well as disruptive business conditions from
multiple pandemic lockdowns. Enhancements in internal risk metrics and compliance also added rigour to the day to
day management of the Bank’s profit rate, FX, and liquidity risk. We nevertheless remained focused and consistent in
meeting our clients’ requirements and expectations in providing reliable and quality services, products and solutions.
Despite restrictions in corporate activity and cross border funds flows, FX sales volume in 2021 continued to grow from
the previous year, but intense competition has resulted in significant margin erosion. The US Dollar maintained its strength
throughout 2021 on the back of expectations that the US Federal Reserve (Fed) will raise interest rates aggressively in
2022 and into 2023. The Dollar Index increased by 6.4% in 2021. Against this index, the Ringgit fared better, weakening
by 4.1%. Against the Euro and Japanese Yen, however, the Ringgit emerged stronger by 4.2% and 6.7% respectively. This
was supported by improved sentiment from the easing of COVID-19 restrictions and accelerated COVID-19 vaccine booster
inoculations. The Ringgit was weaker against most Asian currencies with exception of the Thai Baht in 2021.
There was steady and significant growth in total deposits for the Bank throughout the year. However, wholesale funding
costs continued to be elevated due to intense competition, contributing to margin compression for both Treasury
investments and Financing assets. The Bank’s liquidity metrics, nevertheless, improved further in 2021.
Bank Negara Malaysia (BNM) maintained the Overnight Policy Rate (OPR) at 1.75% throughout 2021, maintaining an
accommodative stance in support of business activities whilst cushioning the negative impact on household incomes
affected by the pandemic. Short term Islamic interbank rates were capped within a steady range with overnight rates
trading between 1.68% to 1.77%, 1 week between 1.76% to 1.79% and 1 month between 1.85% to 1.91%.
Fixed income investments continued to deliver on both fund based and trading income whilst Sukuk distribution activities
were commendable for the year despite a steepening in the Ringgit yield curve and tepid secondary trading liquidity
conditions. The Bank was appointed as Lead Manager/Joint Lead Manager for 15 ESG-rated sukuk distribution deals and
continued to perform an active role as Islamic Principal Dealer (iPD). The fixed income team achieved a Top 5 ranking
in Bloomberg’s Malaysian Ringgit Islamic Sukuk League Table for 2021.
T&M’s contribution to the Bank’s profitability from Asset Liability Management/Money Market, FX Sales and Trading, and
Fixed income investment activities was much lower compared to the previous year but still significant at just below 30%.
OUTLOOK AND STRATEGY FOR 2022
We expect volatility in the financial markets and the challenging business operating environment to persist in 2022 due
to the continued uncertainties around COVID-19, rising oil prices, supply chain disruptions and geopolitical risks. Growing
inflationary pressures will pressure the Fed to hasten rate normalisation and balance sheet reduction. On the local front,
BNM is expected to remain cautious in its rate normalisation path in view of the growing external risk factors and market
uncertainties. Most forecasts anticipate one hike in the OPR in 2022 and a likelihood of 4 hikes in 2023.
We believe that it will take some time for the FX and Rates markets to stabilise. Continued improvements in the overall
liquidity metrics of the Bank and generation of non-volatile trading income from sales and distribution will be the main
focus areas for T&M in 2022. This will entail strategies of short-duration investments, further diversification of the Bank’s
wholesale funding base and emphasis on customer service excellence.
96
CORPORATE
BUSINESS REVIEW
BANKING
WHO WE ARE
We are a reliable Corporate Banking Team providing comprehensive financing solutions guided by Shariah principles,
which are central to our VBI approach, in catering to corporates, government agencies and GLCs. We offer strong branding
and technical expertise, coupled with value-added advisory propositions in structured and project financing, especially
in green technology and the renewable energy sector. We focus on offering fully Shariah-compliant financing products
and bring strong competencies in both products coverage and service delivery.
KEY INITIATIVES
• Leverage on existing strong and established relationships with preferred customers, with mutual prospects
for growth.
• Cultivated, nurtured and grew new-to-bank customers via sectorial focus, in order to preserve asset quality
and income contribution. Our focus is, principally, on the Healthcare, Food, Infrastructure, Plantation, Green
Technology and Renewable Energy sectors.
• Maintained anti-attrition strategy via:
- Defending assets by maintaining close professional relationships built on trust and delivering excellent
customer service
- Encouraging clients’ utilisation of revolving facilities by offering competitive rates and elevated services
levels.
• Grew product offerings and developed new revenue source via the purchase of Unrated Sukuk, driven by
a new team of professionals.
• Capitalised on potential synergies with Bank Islam’s major shareholders to increase financing activity and
explore other cross-selling opportunities within the Group.
Customer-Centricity
“Think Customer” is central to the culture of the Corporate Banking team.
• Provided customised financing solutions and banking services tailored to clients’ needs, which support
the growth of their businesses.
• Cultivated long term business relationships by building trust and delivering excellent customer service.
• Responded swiftly to customers’ requests for finance moratoriums and financial assistance to weather
the COVID-19 pandemic.
97
CORPORATE BANKING
• Challenging operating environment marked by • Grew our unrated Sukuk activity to facilitate
subdued economic growth due to lower government financing assets growth and generate fund-based
spending and continued uncertainties arising from and fee-based income for the Bank.
the COVID-19 pandemic. The prevailing record low • Continued refinancing opportunities due to the
interest rates (OPR) in Malaysia also led to net income low interest rate environment.
margin compression across the banking industry. The • Supporting existing customers impacted by the
challenging operating environment in 2021 had a pandemic through repayment moratoriums,
strong impact on our performance: rescheduling and restructuring, as well as minimising
- We experienced Negative Fund-Based Income expected credit losses of customers by reducing
Growth in 2021, due to the low-yield environment unutilised facility lines.
across the globe and the massive cost-cutting • Exploring financing opportunities with potential
measure businesses undertook to survive the customers under the Government’s Prihatin
pandemic. programmes.
- Non-fund-based Income declined due to low use • Supplementing Non-Fund-Based Income with
of Bank Guarantees and Letters of Credit during advisory services and operational charges.
the year. Additionally, income from processing & • Expanding the reach of Green Financing beyond
arrangement fees is still pending due to the high the utilities and energy sectors, to areas including
number of Pending Acceptance, Pending the green building segment of the property sector,
Documentation and Pending Disbursement cases. sustainable plantations and ESG-aligned industries,
- Our Impairment increased by RM228.6m as at such as the installation of solar panels.
Dec 2021, due to a new account being classified • Improving our asset composition ratio in favour of
as impaired in Dec 2021. This raised our impairment term facilities, as a buffer against fluctuating assets
ratio to 3.52%. such as trade and revolving facilities.
• Higher business operating costs due to implementation
of the minimum wage, additional taxes, delayed
subsidy claims, renegotiation of concessions contracts
and disruptions in the supply chain.
98
BUSINESS REVIEW
7 296.0 14.9 14.8

6.8
266.9
6.1
240.3
8.9
19’ 20’ 21’ 19’ 20’ 21’ 19’ 20’ 21’
Asset (TOS) Growth Total Actual Total Actual

(RM Billion) Fund-Based Income Non-Fund-Based Income
(RM Million) (RM Million)
Asset Quality: Asset Quality: Overall Impaired

There is no Past Due Non Ratio as at Dec 2021 stood at
Impaired recorded as at
Dec 2021.
3.52%
The outlook for 2022 is marked by uncertainty, even as the country enters the endemic phase of COVID-19. Markets will
remain volatile as economies return to growth but face headwinds from geopolitical factors, supply chain disruptions
and other uncertainties. The prevailing low interest rate has continued to compress margins but is expected to encourage
corporate refinancing exercises. We will also continue to monitor credit markets for signs of fragility as the prolonged
repayments assistance measures begin to wind-down.
Moving forward, we will continue to build upon the strategies and initiatives that we began in 2021:
• We will support the growth of ESG-aligned businesses by providing responsible financing. Our sectorial focus will
remain on infrastructure, construction, green energy and power, plantations, healthcare, oil & gas and property
development.
• Acquiring new-to-bank customers and refinancing via Unrated Sukuk Programme.
• Maintain our client coverage approach under the Wholesale Banking initiative.
• Leveraging on existing customers and growing deposits from our portfolio customers.
• Increase our participation in syndicated financing & refinancing of large exposure.
• Strengthening our customer relationships by providing proactive banking services to support their growth potential.
99
BIMB
INVESTMENT MANAGEMENT
WHO WE ARE
BIMB Investment is the fund management arm of BIMB and a United Nations Principles of Responsible Investment
(UNPRI) signatory. With a track record of more than 28 years in Islamic Fund Management, we have been a pioneer in
the industry on Shariah-ESG investing since 2015 and we continue to push the boundaries of innovation. In 2021, we
launched Malaysia’s first SRI Waqf fund, the Makmur MyWakaf fund. Our global shariah-ESG equity fund and the global
ESG Sukuk fund continue to be the largest global shariah ESG equity fund and global Sukuk fund in Malaysia respectively.
We are a leader in Shariah-ESG investment in Malaysia, with Shariah-ESG funds now making-up 65% of our assets under
management with the the widest shariah-ESG funds across asset classes. BIMB Investment currently manages 27 Shariah
Funds across various strategies, geographical locations and asset classes. These account for 15% to the total net asset
value of the SRI Fund Management Industry and 34% of the total net asset value of Islamic SRI Funds in Malaysia.
Additionally, we have continued our pioneering role with the growing integration of artificial intelligence (AI) into our
investment strategies. As we move forward, BIMB Investment is set to emerge as global leader in Shariah-ESG asset
management through our strategic partnership with London-based, Arabesque Asset Management. On 15 April 2022, the
Securities Commission Malaysia approved Arabesque Asset Management’s 49% equity shareholding in BIMB Investment.
KEY INITIATIVES
BIMB Investment continues to be a leader in the growing Shariah-ESG space. In 2021, we launched three
new Shariah-ESG funds. Our excellence in this space has led to multiple international awards and recognitions,
including a string of wins in 2021. We have also been used as a case study on Shariah-ESG by the United
Kingdom Islamic Finance Council (UKIFC). Additionally, our prowess in building sustainable prosperity led to
an invitation for BIMB Investment to speak at the Islamic Finance and SDGs Global Summit in conjunction
with the 76th United Nations General Assembly, New York, in September 2021.
Customer-Centricity
We aim to deliver seamless and exceptional customer service, both in-person and through the digital platforms
that play an increasingly important role in our business. As part of that commitment, we launched the BEST
Invest App in April 2020. The robo-intelligence app made goals-based investing, easily available and affordable
to retail investors. The app garnered more than 15,000 investors and continues to see strong growth, proving
that it meets the evolving needs of our customers.
Digitalisation
• igital acceleration and the effective execution of our digital strategy are keys to driving our growth, both
D
by offering customers a seamless investing experience and by using AI and Big Data to provide better
investment insights. To ensure that our digital strategy is in line with global best practices, we have
established a strategic partnership with London-based, Arabesque Asset Management.
• We see almost unlimited growth potential for our digital business. Our award-winning BEST Invest App
captured a total of RM13.88 million sales in 2021, exceeding its target of RM10 million, despite only having
scratched the surface of its potential market.
100
BUSINESS REVIEW
COVID-19 Pandemic
Growing Private Mandates
The continuing COVID-19 pandemic affected market
performance and impacted the fund management BIMB Investment is focused on building-up its private
industry by limiting the opportunities for physical mandate business to complement its strength in the
meetings between managers and clients, and between retail sector, and the range and sophistication of our
consultants and potential clients. Shariah-ESG products makes this a natural growth
area for us. In 2021, we successfully secured our first
private mandate, with its first tranche of USD10 million
Removal of Tax Exemptions for Money Market Funds
being invested in August 2021. Moving forward, we
and for Foreign Income
will leverage on this strong start to pursue further
•
Under the Finance Bill 2021, the Malaysian Government expansion.
has made changes with regards to the way tax is
imposed on Retail Money Market Funds (RMMF). Unique Value Proposition Through Strategic
With the exception of individuals receiving income Partnership
from RMMF, unit holders will be subject to a Our strategic partnership with Arabesque Asset
withholding tax of 24% with effect from 1 January Management has allowed us to develop a unique
2022. The change affects the entire unit trust value proposition for the Shariah-ESG market, powered
industry. For BIMB Investment, the change will be by AI and Machine Learning. By leveraging on
felt, specifically, on our BIMB Dana Al-Fakhim fund. Arabesque’s AutoCIO and ESG Book platforms, we will
•
Additionally, the Finance Bill 2021 will also remove have access to ESG data on over 25,000 companies
the current exemption on Foreign Source Income globally and be able to develop and back-test an
(FSI) over the course of 2022. FSI will now be taxed almost unlimited number of investment strategies,
at 3% from 1 January 2022 and at 24% from 1 July with the support of advanced AI. Collaboration will
2022. This change will impact some of our funds be a key growth driver for BIMB Investment by putting
invested in foreign securities. The precise impact us ahead of our peers in investment strategies creation,
it will have on our performance and growth remains product development and portfolio management.
uncertain. Going forward, we aim to offer customised investment
strategies and services to high net-worth individuals
and institutions with a strong ESG appetite.
Strengthened Risk Management and Compliance

We continued to take steps to strengthen our risk
management framework, both through enhancing
BIMB Investments’ internal policies and by adopting
the Group’s policies. Robust risk management
framework provides a strong foundation to protect
BIMB Investment’s capital base and earnings while
promoting sustainable growth.
101
BIMB INVESTMENT MANAGEMENT
FINANCIAL HIGHLIGHTS AWARDS
Total Assets Under BEST INVEST APP:

Management of
RM13.8
RM1.43 MILLION
billion IN SALES/ • Alpha Southeast Asia Awards
40% GROWTH - Best Risk-adjusted Returns:
ESG Principle Investment
2021
- Best Islamic Asset & Fund
Manager 2021
Revenue: • The Asset Triple A Islamic

Total Number Finance Awards
of Shariah-Esg RM24.3 - Best FinTech Robo Mobile
Application 2021 (BEST
Funds:
million Invest)
27 2020: RM22.9 million
• Annual Global Business
Outlook 2021
- Best Islamic ESG Practices
– Malaysia 2021
The year ahead is an exciting one, as we prepare to rebrand as BIMB-Arabesque as part of our transformation strategy
that will see us emerge as a leading, global, Shariah-ESG fund house. The new brand, BIMB-Arabesque is set to become
the hub for Islamic, sustainable and quantitative investment solutions globally. The company will be a pioneer in Big
Data analytics and deep Machine Learning capability in fund construction and investment process. At the local level, this
will position BIMB-Arabesque as Malaysia’s first Shariah Robo-Advisory platform and allow us to accelerate the mainstreaming
of Shariah-ESG investments across all investor groups.
To deliver on these goals we will:

• Enhance collaboration with Bank Islam Wealth Management through alignment in sales targets and marketing, as
well as developing exclusive client-centred products. We will work with BIMB’s other business units to tap into their
large client base to cross-sell products and services and pursue other synergies.
• Strengthen collaboration with Malaysia’s 12 existing Institutional Unit Trust Advisors by providing additional, unique,
solutions to fill their product gaps.
• Strengthen the agency business by enhancing its infrastructure.
• Step-up focus on digital business in 2022, targeting growth in AUM from the current RM10 million and implement
our Growth Acceleration Plan for the BEST Invest App.
102
BIMB
BUSINESS REVIEW
SECURITIES
WHO WE ARE
BIMB Securities is a full-fledged Shariah-compliant stockbroking company that has distinguished itself in the market
through offering personalised services at competitive rates. We provide an avenue for clients to invest in Shariah-compliant
listed companies, based on the List of Approved Shariah Compliant Securities issued by the Shariah Advisory Council of
the SC. We offer a range of services, including stockbroking services to institutional and retail clients, Shariah Advisory
Services, share margin financing and investment research.
KEY INITIATIVES
Reducing our over-reliance on Institutional Dealing by growing other business segments, including retail
dealing and fee-based income to sustain our long-term growth.
• We upgraded our offerings to retail investors and expanded our Share Margin Financing facility, which
has led to a steady increase in both our retail brokerage and profit margin.
• Garnered Underwriting and Placement income as part of our plan to increase fee-based income.
Customer-Centricity
We continued to focus on digital solutions and improved customer outreach in order to support our retail
and institutional clients.
• Developed a new mobile application that will offer retail clients online trading beginning in Q12022 and
launched a Chatbox helpdesk to support retail clients.
• Our Research teams utilised social media platforms to reach-out to our retail clients in order to provide
thematic investment updates and enable live interaction.
• Ensured that we maintained a minimum Tier-2 rating with Institutional Platinum clients and also extended
our Shariah advisory services to include a wider range of fund management products.
• Our Retail and Institutional divisions conducted webinars directed at their respective clients throughout
the year, providing information and insights into the volatile markets.
Digitalisation
The COVID-19 pandemic has accelerated our digital initiatives to facilitate clients’ online trading and provide
them with increased levels of service and convenience.
• We integrated the FPX internet payment gateway into our Online Trading platform, enabled digital signing
capability for retail clients and simplified the procedure for new clients to open accounts digitally
with us.
• Rolled out BISonline, our new online trading mobile app with advanced features, to selected clients in
the fourth-quarter and it will be available to all clients by Q12022.
103
BIMB SECURITIES
• Our income remains under pressure as Institutional • We will pursue higher fee-based income through
clients move away from domestic capital markets to our share margin financing facilities and through
fixed income and international markets. IPO financing opportunities.
• Cost increment as we invest in the systems, • Pursuing underwriting and placement income
technological advancements and maintenance opportunities through collaborations and networking
necessary to support our digitally-driven growth. with investment banks and stockbroking companies
• Attracting new talent and retaining high performers with boutique corporate finance services.
will remain difficult as our company is constrained • Widening our Shariah Advisory Services offerings
by losses and rising costs. to a broader client range.
Retail Dealing Income Institutional Dealing Commissioned Dealers

was up Income Income
9% in 2021 down by 16% down by 47%
in 2021 in 2021
Share Margin Financing Other fee-based, Shariah Money Market

Income up Advisory and Placement down by
183% compared to
Underwriting/Placement
up by
39% in 2021
2020
134% in 2021
104
BUSINESS REVIEW
The outlook for 2022 remains challenging but we will maintain our focus on the growth opportunities that have been
identified and leverage on the strength of the BIMB Group as a whole. Going forward, we aim to expand our revenue
base, defend our institutional business, and implement a comprehensive growth strategy for our retail business. Our
focus is increasingly on higher margin businesses, including strengthening our position within the equity capital markets
(ECM) industry as we work to grow fee-based income. To deliver on these targets, we will pursue deeper Group-wide
collaboration to build synergies between our complementary products, services and client bases, including through the
following key initiatives:
• Cultivating BIMB’s high net worth client base with the goal of acquiring 200 – 300 of them as new clients for our
brokerage business.
• Co-servicing GLC clients together with other units of the Group to offer a wider range of securities, financial and
advisory services.
• Commencing our foreign equity brokerage business in collaboration with BIMB Invest and onboarding Lembaga
Tabung Haji (LTH) as an anchor foreign brokerage client.
• Strengthening ESG coverage and developing ESG-compliant products in alignment with the Group-wide ESG approach.
105
106
Introduction to
Sustainability
at BIMB
AT BIMB, WE BELIEVE THAT WE CAN AND SHOULD MAKE A
POSITIVE DIFFERENCE TO THE SOCIETY AND ENVIRONMENT.
PUTTING OUR IDEALS INTO ACTION, BIMB HAS COMMITTED
TO SUSTAINABLE BANKING PRACTICES IN LINE WITH OUR
SHARIAH BANKING COMMITMENTS AS THE FIRST PURE-PLAY,
FULL-FLEDGED ISLAMIC FINANCIAL INSTITUTION LISTED ON
BURSA MALAYSIA’S MAIN MARKET.
BIMB has practised sustainable finance through its long-standing products and services that encourage Shariah-compliant
banking for businesses and consumers. The Value-based Intermediation Assessment Framework (“VBIAF”) has been a
core reference for BIMB in developing its products and services and providing sustainable banking for all its customers.
In 2021, BIMB committed to further strengthening its sustainable finance implementation by initiating the development
of the ESG Risk Framework. The key aim of the Framework is to incorporate climate-related risks and impacts into
the Group’s overall Risk Management Framework. This project is being carried out over two phases, beginning in 2021
where we carried out an ESG assessment and gap analysis of the existing ESG risk management framework. The project
continues into 2022 where we aim to have a comprehensive ESG Risk Framework that embeds climate risk management
into all aspects of banking including how we extend financing and encourage sustainable banking opportunities towards
all our customer segments.
107
SUSTAINABILITY
GOVERNANCE
BIMB has developed and implemented a sustainability governance structure to provide oversight and strategic direction
over the Group’s sustainable finance initiatives. While the ESG Risk Framework allows us to effectively identify, manage,
and monitor ESG risk across our business, the Framework is part of an overall Sustainability Plan and Roadmap that
guides our actions as a financial institution in implementing sustainable finance.
The highest implementation committee for BIMB is the Management Sustainability Committee (“MSC”) where the
Group CEO and senior management members are permanent members who are entrusted to implement the Group
Sustainability Plan and Roadmap internally and externally across the various business segments. The MSC reports to
the Board Strategic & Sustainability Committee (“BSSC”) that provides strategic direction and oversight on sustainability.
The Board Risk Committee (“BRC”) and Management Risk Control Committee (“MRCC”) provides oversight and strategic
direction on the Group’s ESG Risk Framework that focuses on how BIMB manages and mitigates key ESG risks and
impacts including climate change, environmental and social risks across its portfolio.
In 2022, further enhancements to the governance structure are planned including the formalisation of Board-level
committees and working groups to ensure implementation of our sustainability commitments are carried out efficiently
across the various business segments.
STAKEHOLDER ENGAGEMENT MATERIAL ESG ASPECTS

BIMB values all its stakeholders and has made BIMB aspires to align our business operations and
significant efforts to engage its various stakeholders growth with the UN Sustainable Development
to understand the material areas of interest and Goals (“UN SDGs”). The UN SDGs were matched to
align our sustainability actions and strategy towards our, i.e. BIMB’s material matters with the purpose
areas of sustainable finance that bring most near- of serving the best interest of our stakeholders,
term and long-term impact. and ensure that our actions are leaving no one
behind and will create impact that leads to socio-
To this end, we have engaged regulators, customers, economic progress of our business, the nation and
investors, NGOs and civil society in terms of ESG society while ensuring the protection of the natural
through various methods including meetings, environment and biodiversity. For a discussion on
responding to queries and annual surveys as well as how the Group’s material matters are identified,
participating in collaborative efforts on sustainable please see pages 54 to 57 of this report
finance.
108
SUSTAINABILITY
STRATEGY
BIMB views climate change as a high priority area of impact BIMB’s strategic direction is anchored by a five (5) year plan.
that needs to be tackled by businesses in all sectors, Premised on our alignment to VBI, namely, Sustainable
including banking and finance. Prosperity, Values-based Culture, Community Empowerment,
Customer Centricity, Real Economy and Digitalisation.
BIMB has put in place an overarching sustainability strategy
by considering areas of sustainable finance including climate a. The first pillar, Sustainable Prosperity, is to focus on
risk management, internal sustainability actions, training “Responsibly Create Value to Shareholders and Other
and capacity building, and external engagement. Stakeholders in Ensuring Sustainable Strength” while
“Diversifying revenue streams and sustaining growth
The initial building blocks of our sustainability strategy momentum”.
focused on managing the direct climate and ESG risk
arising from our business activities including the provision of b. The fifth pillar, Real Economy, envisions how BIMB is
banking and financing services for business and consumers. focused on making a positive difference to the Real
Economy (“RE”), by responsibly growing our SME
BIMB’s LEAP25 strategy includes consideration of sustainability banking portfolio; assisting MSMEs and promoting RE
through our targets and priority areas. programmes as a responsible financial intermediary.
The 6 strategic objectives continue to support and govern the Bank’s agenda and shape its key priorities
and building blocks as a direct focused effort towards the Bank’s 5-year aspiration
Our Vision 6 Strategic Its BIMB

& Mission Pillars Meaning Sustainability Plan
Vision Continuous
Sustainable Champion in Shariah-
THE BANK sound financial
Prosperity ESG total financial
E
THAT performance solution with leadership
ADVANCES in digital banking and
PROSPERITY Values-based Doing the right social financing
TO ALL ENVIRONMENTAL
Culture thing
• More than double ESG-
rated financing assets
Communities
Community • Impact creation to 3000
thriving
S
Mission Empowerment beneficiaries through
with us
TO PROVIDE social finance
SOLUTIONS • Employee engagement
THAT Providing the SOCIAL score at par with
Customer
DELIVER best experience Malaysia’s Best Employer
Centricity norm
VALUE for our customers
• Achieve ROE of above
20%
Producing goods
G
Real Economy • Sustain non-fund
and services
Assuring based income (NFBI)
contribution of 10%
Trust Technology helps GOVERNANCE • ROE and Capital
Delivering Digitalisation us in realising Investment (CI) ratio of
Value our purpose 40%
109
SUSTAINABILITY STRATEGY
In developing a framework for managing ESG risk, we engaged with recognised partners to implement a range of
activities to better provide clarity on our ESG risk exposures and determine the most effective ways to monitor and
mitigate these risks.
In 2021, we completed Phase 1 of key activities in implementing the ESG risk framework. By utilising the gap assessments
conducted internally and through our engagement with external stakeholders including investors, NGOs, civil society
and specialised subject matter experts, we have identified the key ESG risks in our internal operations and those that
arise from external customers and vendors.
CONVERGING SHARIAH VALUES AND ESG

Since 2018, the Value-based Intermediation (“VBI”) checklist has been used to guide our businesses and operations on
the broad compliance of activities that covers Shariah principles, environmental impact, workforce equality and corporate
governance during the credit evaluation for on-boarding of financing and also used annual review of existing financing.
The VBI checklist for preliminary financing assessment covers broad compliance to:
• Workforce equality that

ensures a conducive working
environment and fair
opportunities for all employees.
• Our businesses and
• Ethical activities that promote
operations are to adhere
our values and the trust of our
strictly the principles and
stakeholders.
values of Shariah where
we do not engage in
activities that are related
to weapons, liquor and
gambling. 04
03 • Corporate
Governance
that ensures the
01 06 integrity of our
05 businesses and
operations.
02
• Focus on minimising
environmental impact
through our businesses,
as well as promoting • Complete non-participation
activities that lead to in non-ethical activities
environmental awareness such as human trafficking
and conservation. and child labour, and
those that result in
adverse labour relations.
110
SUSTAINABLE
FINANCE
BIMB views sustainable finance as a key priority for the Group and has aimed to increase financing of sustainable and
green products and services, while implementing robust controls to manage potential climate and sustainability risk
arising from our provision of banking products and services.
BIMB understands the role that banks need to play in ensuring that positive climate and sustainability outcomes are
realised through our business activities. As key implementers of Shariah-based banking principles, we understand that
long-term sustainability includes caring for the environment and society while supporting businesses and consumers
to achieve their financial goals.
Overview: Holistic Implementation of Sustainable Finance
ESG Framework: Holistic Approach to Sustainability

Managing Risk and Expanding Opportunities
Governance and Oversight Long term

Board-level Sustainability Sponsor, Working
aspiration:
Groups, Approval of Sustainability Policy
Embed and
Operationalise
Sustainable
Raising Awareness and Developing
Practices
Champions
Onboard and include Product Owners and
Business Units in development of ESG
Framework Position the
Bank as a Islamic
Banking leader
Core ESG Stakeholder Engagement
Disclosure
in Sustainable
Phases Identify and engage with key stakeholders, and
Finance
assess material sustainability issues Reporting
Measure and
report progress
based on
Risk Identification and Baseline Metrics
Identify key risks tied to the Bank, internationally-
establish baseline metrics for recognised
performance monitoring standards and
benchmarks
Target
Risk Mitigation and Creating leadership position
Opportunities for sustainable
Develop sustainability risk mitigation products and
controls, sector-specific requirements
services
In delivering on our sustainable finance goals, we have prioritised managing and mitigating sustainability risk while
expanding on current and future opportunities for financing of climate-positive and environmentally and socially-conscious
economic activities and projects.
111
SUSTAINABLE FINANCE
ESG Value Creation: Mitigating Risks and Creating Opportunities
• Ensure key internal stakeholders are engaged

Internal
in implementing ESG Framework
Creating Value Engagement
through ESG
Key to the • Onboarding enhancement and sector-specific
effective ESG Risk risk mitigation policies
implementation Controls
of the ESG
Framework is
• Working Groups on sectors and products
ensuring Risk
Working • Enhance current offerings
Management is
Groups • Expand offerings to encourage commitment
complementary
towards sustainability
to development
of ESG-Linked
Products and ESG Value
Creation • Establish sustainability as key value driver and
Services
KPI for product owners
BIMB’S KEY SUSTAINABLE FINANCE OBJECTIVES
1. To align our financing portfolio towards the targeted RM4 billion in Green Financing by FY2025
We intend to achieve this by prioritising climate-positive financing across corporate, commercial, SME and
retail financing products and services, including but not limited to areas such as renewable energy, green
buildings, electric and hybrid vehicles, sustainable public transportation, sustainable agriculture, low-carbon
power generation, low-emission manufacturing, and others.
2. To manage and limit financing towards carbon-intensive sectors, where we have started by committing
to phase out and end financing of coal-related activities by 2030
We intend to achieve this by identifying carbon-intensive exposures through our financing activities and
develop mitigation plans that will include an orderly transition to improve the climate risk profile of our
financing portfolio. This will include engaging clients to improve their climate policies and commitments to
reduce carbon emissions in sectors including but not limited to oil & gas, mining and quarrying, agriculture,
manufacturing, real estate and construction, and others.
3. To encourage climate-positive initiatives, commitments and projects through our ESG roadmap and
stakeholders engagement
We intend to achieve this by continuing to engage with various stakeholders, including regulators, government,
customers, industry bodies and NGOs on sustainable practices, climate-friendly commitments and targets
and supporting climate-positive projects. This may include engaging with progressive proponents of climate-
friendly strategies including efforts to reduce forest and biodiversity impacts, encourage marine conservation,
improve social outcomes, reduce carbon emissions and align with stronger ESG commitments and practices
by corporates and SMEs.
112
BIMB ESG RISK FRAMEWORK

BIMB has developed and is currently at the early phase of implementation of its overall ESG Risk Framework that is
targeted to enable us to better identify, monitor and manage its ESG risk exposures across its areas of business.
ESG Risk Area ESG Impacts Mitigation Strategies
Internal Operations Internal material impacts including A s s e s sing our carb on fo otprint ,
carbon emissions from electricity, travel, planning carbon mitigation strategies,
paper and water usage implementing energy ef f icienc y,
adopting best practices, and technology
External Environmental and Social Environmental and social risk including ESG risk management framework,
Footprint deforestation, waste management, sector guidelines, onboarding checklist,
(i.e. Financing customers, investment fossil fuel usage, displacement of portfolio mapping, stress testing and
advisory, vendors, fund management) indigenous people CCPT
External Governance Risk Ethical business, Anti-Money Laundering Policies and controls on ethics and
Act (AMLA), Politically Expased Personas governance
(i . e . R et ail cu s to m e r s , ve n d o r s , (PEPs)
depositors, investment advisory, fund
management)
Phase 1: Where we are now in our journey

In 2021, BIMB embarked on a multi-phase plan to develop and implement a comprehensive ESG risk management
framework covering all aspects of our sustainable finance activities. The implementation plan covers two (2) phases,
where Phase 1 was completed in 2021 and Phase 2 is currently ongoing.
Key Milestones:
ESG Assessment
BIMB has measured and assessed its ESG performance including the physical and transition risk arising from
against best practices in sustainable finance, including long-term climate impacts, as well as the business and
reference to the UN SDG, and global standards on operational risks arising from our business relationships
sustainable finance. The assessment of our baseline ESG with customers. Knowledge of these risks has enabled
performance was guided by a detailed exercise with us to better understand key priorities in managing our
our key knowledge partner, and was complemented direct and indirect climate impacts.
by other assessments and benchmarks including the
widely-accepted FTSE4Good, WWF Sustainable Banking Scenario Analysis and Stress Testing
Assessment, and other queries raised through our
In Phase 1 of the project implementation, BIMB obtained
stakeholder engagement activities with investors and
an initial view of the potential climate scenarios and
regulators.
its impacts to the Group. The key output was utilising
forward-looking climate adjusted scenarios to determine
Portfolio Profiling and Physical Risk Identification
impacts to the Bank’s portfolio under different Network
Through the activities with our knowledge partners, for Greening the Financial System (“NGFS”) baseline
BIMB has gained insight into the climate vulnerability scenarios. These serve as building blocks towards a
of our internal and external assets and operations and more comprehensive view of various climate scenarios
better identified the key ESG risks that exist in our and how the Bank may adapt and prioritise actions in
financing portfolio. These risks are varied in nature, view of long-term transition risk.
113
SUSTAINABLE FINANCE
Phase 2: Planned Expansion of ESG Risk Framework

By Q3 2022, BIMB will incorporate more details into its Framework, including the development of ESG Scorecards and
further implementation of portfolio profiling and stress testing.
IDENTIFYING AND ASSESSING CLIMATE AND ESG RISK

BIMB has undertaken a set of gap assessments through its engagement with knowledge partners internally, and through
external responses to regulators, investors and by participating in recognised sustainability benchmarks and indices.
Through these assessments, BIMB has determined certain areas where risk management systems and controls are
currently being developed and improved upon.
Due Diligence of Customers
BIMB performs due diligence of business financing as part of pilot initiatives in line with BIMB’s ESG Risk Framework
that is currently in development. These due diligence assessments are carried out to determine environmental, social and
governance risk related to new and existing customers that may affect the bank in terms of climate and sustainability
impact.
Customers that are subjected to the ESG due diligence process are prioritised based on the following factors:
Exposure to sectors with relatively high environmental or

social impact including power generation, mining, oil & gas,
forestry, palm oil, heavy manufacturing, water supply, and
others deemed high risk at time of customer onboarding.
High materiality to the Bank in terms of

financing exposure (RM value)
Extreme outliers i.e. companies that score

in the top or bottom 10% of customers
based on the ESG scoring
Companies with known or detected ESG-

related controversies or grievances in the
last 12 months
114
The following is a summary of the key data and metrics used to validate the ESG performance of our business customers:
Entity Information:
Customer Disclosures Sustainability reports, roadmaps, strategy, action plans, ESG-related press releases,
media statements, announcements
Main Operating Locations The company’s headquarters and main areas of operations i.e. factories, plantations,
sites, facilities
Nature of Business The main and subsidiary economic activities or sectors the company is involved in
Project Being Financed Applicable if the financing is for a specific project by the company i.e. a new
manufacturing facility or new development
Controversies and grievances in last Any involvement by the company in issues including environmental, social or
12 months governance-related negative coverage. Information on this is obtained through
online searches on specialised ESG news providers, general media, social media,
financial news outlets, and others.
Financing Type and Amount Overview of the company’s financing facilities with BIMB including financing
type and RM value.
Overview of ESG risks and controls:
Governance
License to Operate Does the company have the necessary government and/or regulatory approvals
required to carry out business activities, especially those related to environmentally
and socially sensitive aspects, i.e. plantations, construction, mining, oil & gas,
forestry, and others.
ESG Policies Does the company have policy commitments to monitor and mitigate ESG-
related risks, i.e. safety and health, waste management, biodiversity, community
impacts, etc.
Certifications and Standards Does the company possess general or industry-specific certifications? Examples
include RSPO, CIDB, FSC, PEFC, ISO, OHSAS, etc.
Social
Health and Safety Does the company have systems and controls to ensure workplace safety and
health?
Labour Does the company have systems and controls to ensure labour standards are
upheld i.e. on minimum wages, working hours, no forced, bonded or child labour?
Community Impacts Does the company have systems and controls to monitor and mitigate impacts
of the operations on nearby communities?
115
SUSTAINABLE FINANCE
Environmental
Forest Risk Does the company have systems and controls to ensure no illegal deforestation
takes place in the course of their operations?
Biodiversity Risk Does the company have systems and controls to ensure biodiversity is protected
in areas of their operations?
Waste Management Does the company have systems and controls to monitor and dispose of waste
in accordance with regulatory requirements?
Post-operations Remediation Does the company have systems and controls to ensure their facilities are properly
dismantled and no harmful or hazardous waste is left on site post-operations?
MANAGEMENT AND MITIGATION OF ESG RISK

BIMB is currently in the process of developing detailed sector guidelines and assessment criteria for all sectors that it
may be exposed to. As part of this, further requirements for high sustainability risk sectors will be defined in FY2022.
While the development of the ESG Framework is in progress, we begun to assess new financing applications for ESG
risks where there are elevated concerns on ESG based on industry-specific context.
Key sectors where ESG due diligence would be carried out include large-scale agriculture, oil & gas, forestry, large-scale
manufacturing projects, large-scale residential and industrial developments, mining and quarrying, among others.
5% Financial Services
6%
Construction
23%
6% Real Estate
Public Administration
7%
Water, Sewerage and Waste
Electricity, Gas, Steam Supply

7% Information and Communication
19% Manufacturing
8% Agriculture
Wholesale and Retail Trade

8%
11%
BIMB Sector Exposure (as of Dec 2021)
116
In FY2021, BIMB has committed to phase out and end financing of coal-related activities by 2030. BIMB also carried
out deep-dive validation of certain financing cases that were deemed highly material or carrying relatively higher
environmental or social risks.
Sector Key Highlights
Agriculture (Palm Oil) Clients involved in agriculture may be involved in specific activities, such as plantation
development or in the entire value chain of palm oil production, including refining and
distribution. BIMB has undertaken ESG due diligence of these customers in view of known risks
in terms of environmental impacts related to potential illegal deforestation, development on
peatland, use of chemicals, loss of biodiversity, and social impacts including labour practices,
health and safety of workers and impacts on local communities and smallholders.
In FY2021, BIMB did not detect major violations relating to environmental and social risks
among the customers assessed. In some cases, there were legacy risks identified but these
were sufficiently managed through time-bound action plans carried out by the customer.
Oil & Gas Clients involved in oil & gas include those that are focused on extractive activities, such as
upstream and those that are involved in downstream refining and distribution. BIMB has
undertaken ESG due diligence of these clients in view of known risks in terms of environmental
impacts on marine biodiversity and resources, carbon emissions, and release of potentially
hazardous waste; and social impacts including health and safety of workers and impacts on
local communities in coastal areas.
among the customers assessed in this sector.
Heavy Manufacturing Clients involved in heavy manufacturing were chosen based on several material factors
including the environmental impact of the manufactured end-product and the scale and
vicinity of the operations to environmental features including forest, rivers and marine areas,
and its impacts to biodiversity and local communities.
Real Estate Development Clients involved in real estate or construction were chosen based on the scale of development
& Construction projects and location of the projects based on vicinity to environmental features including
forest, rivers and marine areas, and its impacts to biodiversity and local communities.
Other Sectors Various other sectors were selected based on material value of exposure to BIMB, including
education and financial services providers. In general, these customers were assessed for
environmental and social impacts internal to their operations and externally in their supply
chain and in terms of end-consumer dealings.
117
SUSTAINABLE FINANCE
BIMB’S IMPLEMENTATION OF THE CLIMATE CHANGE PRINCIPLES-BASED TAXONOMY (CCPT)

Introduction
The CCPT Classification exercise enables financial institutions to understand the extent of their portfolio exposure to
climatic impacts and risks. In line with this, BIMB has obtained an initial view of climatic risk exposure based on the
classification guidance provided by Bank Negara Makaysia. As per the Guiding Principles as stated in the CCPT Guidance
Document, the data is intended to be used to determine areas where opportunities for sustainable financing may arise as
well as sectors or market segments that may be risk-weighted in future to manage and mitigate negative climatic impact.
BIMB is using a combined methodology utilising data and references from multiple sources to form a basis for application
of the CCPT guidelines.
Excerpt from the CCPT (BNM, April 2021)
The CCPT aims to introduce a principle-based taxonomy for Financial Institutions (FIs) to assess and categorise
economic activities according to the extent to which the activities meet climate objectives and promote the
transition to a low-carbon economy. The taxonomy also incorporates the consideration of broader environmental
outcomes through the principle of no significant harm, with specific regard to how business operations affect
pollution, biodiversity and resource efficiency. In supporting an orderly transition, the taxonomy recognises
remediation measures and introduces a progressive system of transition categories to acknowledge concrete
efforts and commitments by businesses to adopt sustainable practices.
The CCPT also aims to facilitate standardised classification and reporting of climate-related exposures to support
risk assessments at the institution and systemic levels, strengthen accountability and market transparency, and
encourage financial flows towards supporting climate objectives. FIs can also leverage on the taxonomy in the
design and structuring of green finance solutions and services to accelerate development of green sectors and
activities, and decarbonisation efforts.
BIMB recognises that sustainability data is currently not BIMB’s Interpretation of the CCPT Guidance Document
fully comprehensive and does not cover the entire financing
BIMB recognises the impacts of climate change on the
portfolio for all segments. These limitations are mainly
environment and society as well as the importance of
concerning the SME and retail segments where current data
ESG-related governance systems to enable businesses to
on climate and sustainability impacts are lacking.
improve on and implement robust systems and controls
over their sustainability footprint.
BIMB views the CCPT exercise as a promising and useful
endeavour for financial institutions to apply and contribute
The role of banks in financing businesses and consumers
towards continual improvement of the financial industry in
contribute them to participate in various economic activities
terms of ESG and will continue to implement this as part
that may impact the environment and society in terms
of the Bank’s sustainability practice.
of climate change and sustainability. The implementation
of CCPT enables BIMB to obtain an overview of how
key financing assets are tied to climate risk and identify
opportunities for more sustainable financing channelled
towards climate-positive economic activities.
118
The CCPT details the assessment of existing and prospective customers by applying Guiding Principles (GPs) through
dual perspectives. The GPs applied are in accordance with the CCPT Guidance Document and are summarised below.
Overview of Classification Exercise for Companies:
C1 C2 C3 C4 C5
CCPT
Classification
Climate
Transitioning Watchlist
Supporting
Company Company Company Company Company

has ESG has has has not has no
policies and implemented implemented implemented significant
action plans ESG-related ESG-related ESG-related ESG policies
and the remedial remedial policies and the
CLASSIFICATION transaction actions actions but the transaction
OVERVIEW is climate and the however, transaction is climate
positive. transaction the is climate negative.
is climate transaction positive.
positive. is climate
negative.
ENTITY-
LEVEL ESG GP3 GP4 GP4 None Negative
POLICIES AND OR
PRACTICES GP5
TRANSACTION-
LEVEL ESG GP1/2 GP1/2 Negative GP1/2 Negative
IMPACT
119
SUSTAINABLE FINANCE
1. At a transactional level
Including upon origination and extension of credit, investment in financial assets, and structuring of capital market
transactions.
In assessing the climate risk of a transaction, BIMB conducts due diligence of the potential use of proceeds of a
new or existing financing facility. The use of proceeds may be tied to certain GPs based on the climate impact of
the economic activity.
Broad Limitations:
For company (corporate, commercial or SME) financing, this is generally clear for term financing. For
certain financing products where the use of proceeds is tied to working capital requirements that
are not clearly defined at the onset, continuous monitoring at annual review intervals are required
to ensure that the Bank has knowledge on the use of proceeds.
For retail financing, there is generally no provision to limit the use of personal financing, for example,
to certain use cases. Where the Bank has structured certain products, i.e. solar financing for a specific
use case, this may be tied to GP1. In cases where there are no specific use limitations, the financing
is tied to GP3 if no clear environmental harm is identified.
2. At an entity level
Including an overall assessment of a business customer’s sustainability policies, action plans, implementation of
sustainability roadmaps, and issues or incidents related to ESG.
In assessing the climate impact of a business entity, BIMB assesses the customer’s disclosures including, but not
limited to, the following;
Certification Grievances and

Sustainability and Third-party Complaints
Policies Verified Action related to the
Plans Entity/Group
Carbon
Emissions
Sustainability Reporting and
Roadmaps Reduction
Targets
120
The assessment is conducted based on industry-specific norms and standards especially pertaining to certification
but also including ESG action plans that address the industry-specific impacts of the company’s activities.
The assessment enables BIMB to obtain an overview of the climate impacts of the customer in terms of GP1, 2 and
3 and any remedial activities the customer may carry out in terms of GP4.
Broad Limitations:
For company (corporate, commercial or SME) financing, entity-level policies and action plans are
generally made available by companies with large asset sizes or are public-listed entities that are
required to disclose on sustainability as per regulatory and stakeholder requirements. However, for
most SME and commercial-scale entities, these disclosures may not be visible. Collating data for these
segments entail a much bigger resource-intensive challenge and thus a proxy and model-based
assessment is conducted to determine the applicable GPs.
For retail financing, there is generally little to no data on the personal profile of a customer to apply
the GPs on a similar basis as a business entity. As such, the main assessment conducted on retail
customers is to monitor engagement in prohibited activities and encourage environmentally-friendly
uses where applicable.
121
PILLAR 1:
POSITIVE
IMPACT
FINANCING
BIMB aims to deploy finance responsibly,

supporting people and businesses that contribute
to the common good and social, economic and
environmental sustainability. To that end, we have
continued to increase the amount of financing that we
have dedicated to ESG-rated projects and have set even more ambitious financing
targets as we move forward. We will also continue to innovate in the solutions that
we offer to borrowers and investors, to ensure that we continue to meet their evolving
needs and demands as they seek to transition to more sustainable models of business
and investing.
122
SUSTAINING LEADERSHIP IN GREEN FINANCING

BIMB has continued to strengthen its position as a leader in sustainable financing. At the end of 2021, Green Financing
accounted for RM2.2 billion, or 4%, of our total financing portfolio. This puts us well ahead of the Malaysian banking
industry’s average of 1% to 2%. As we move forward under our LEAP25 strategy, we aim to double the Green Financing
book to RM4 billion by 2025. Achieving this target will require us to broaden the range of financing areas beyond the
Renewable Energy Green Building sector that we have focused on, towards the wider green economy, which finances
not just renewable energy but sustainable agriculture, low-carbon power generation and low-emission manufacturing,
electric and hybrid vehicles, sustainable public transportation and the necessary infrastructure. We also aim to expand
Shariah-ESG financing to between 12% and 15% of our total financing, thus offering complete Islamic solutions across
the Malaysian economy.
We have also cemented our leading position in the fast-growing area of green sukuk. The potential for ESG-rated sukuk
goes well beyond the market for green sukuk, with the emergence of new products such as blue sukuk and transition
sukuk. As companies and governments, increasingly, embrace the sustainability agenda, demand for transition sukuk
that help fund their shift to a decarbonised economic model is expected to grow. With the ASEAN region continuing
to dominate global issuance of ESG sukuk, the Group sees strong potential for further growth in this area.
DRIVING INNOVATION IN SHARIAH-ESG INVESTING

In line with both our commitment to ESG principles and our goal of growing our wealth management business, we have
continued to launch new funds that offer new asset classes and investment strategies to attract new investors into our
SESG funds. In March 2021, for example, we launched Malaysia’s first Waqf Featured Unit Trust, helping bring essential
services to marginalised sections of society. We are also leveraging on digitalisation and our strategic partnership with
Arabesque Asset Management to vastly expand the investible universe for our SEGS funds, which will provide a much
wider range of options to investors with a strong ESG appetite.
123
POSITIVE IMPACT FINANCING
FOR THE COMMON GOOD: OUR COMMITMENT TO SOCIAL FINANCE

BIMB has worked hard to play its part in helping our We have also continued to strengthen Sadaqa House, our
customers and society bounce back after the challenges of platform for philanthropic social finance through zakat
the last two years, but we want to do more. Social finance and waqf, by diversifying and magnifying the channels
has always been one of the Group’s key strengths and we through which it can positively impact the community. In
aim to expand our reach and impact as we move forward. 2021, we continued to diversify collection channels through
Under the LEAP25 strategy, BIMB set a target of reaching digitalisation and strengthened strategic partnerships with
3,000 social finance beneficiaries by 2025. The strength of government bodies and private sector players. Sadaqa House
demand for our social finance services and the effectiveness collected RM3.3 million in new funds during the year, and
of our delivery, however, have already seen us exceed that disbursed a total of RM3.6 million, to 4,765 beneficiaries.
target in 2021 and we have now revised the goal for 2025 Since its launch in 2018, Sadaqa House has collected more
to 5000 recipients. than RM9.0 million and we aim to raise the figure to RM40
million by 2025.
One of the most impactful ways in which we have been
able to support vulnerable or financially underserved We are also working to strengthen our contribution to
members of society has been through our iTekad and the waqf, or Islamic endowments, sector. Our Makmur
BangKIT microfinance programmes. The innovative iTEKAD MyWakaf investment fund contributed RM80,000 to the
programme, which was established by BNM in 2020, myWakaf initiative of the Association of Islamic Banking and
combines social finance instruments, microfinancing and Financial Institutions Malaysia (“AIBIM”). This collaboration
capacity building assistance to help B40 micro-entrepreneurs will be strengthened in the year ahead with the launch of
generate a sustainable income. During the year, we launched myWakaf 2.0. Additionally, we launched the Awqaf Ummah
BangKIT, BIMB’s own microfinance and capacity building Financing Programme to provide financing for affordable
programme. These schemes provide an important pathway housing schemes in cooperation with the various State
for unbanked micro-entrepreneurs to move into the formal Islamic Religious Councils (“SIRCs”).
banking sector.
As BIMB moves forward, we aim to build on our strength
in social finance, both through expanding the quantum of
funding and widening the channels and products through
which we are able to reach the underserved.
124
Social Finance at BIMB
BIMB established the Centre of Social Finance in January 2020 to provide clearer direction and
more effective implementation of our social finance agenda by connecting existing banking
products, services and initiatives with traditional Islamic social finance instruments. Prior to its
establishment, our social finance agenda was nurtured within the Shariah Division of the Group.
Our clear approach to social finance is defined as follows:
“SOCIAL FINANCE IS AN APPROACH

TO STRATEGICALLY OFFER BANKING
PRODUCTS, SERVICES AND INITIATIVES
BEYOND TRADITIONAL BANKING
WHICH DELIVER SOCIAL IMPACTS
AND ECONOMIC RETURNS, WITH THE
UNDERLYING FOCUS TO NURTURE THE
UNBANKED TO BECOME BANKABLE.”
125
PILLAR 2:
DELIVERING ON
OUR COMMITMENT
TO PEOPLE AND
THE PLANET:
CORPORATE SOCIAL
RESPONSIBILITY
AT BIMB
Our success is judged not only by

our financial performance but by
the impact that we have on society,
the environment and the actions that
we take for the common good over the
long-term. In order to deliver on these
commitments, BIMB established its AMAL arm
to institutionalise the Group’s Corporate Social
Responsibility initiatives. Through our initiatives
and programmes, and through our collaborations with
strategic partners, we work to further the goals of social
inclusion and environmental well-being. Our commitment to these goals reflects our values as
an Islamic bank and values-based institution.
In working to support the betterment of the society, we utilise funds from our AMAL CSR allocations,
our zakat funds, and the contributions that we raise through our Sadaqa House social finance
vehicle. The impact of our initiatives is amplified by the strategic partnerships and collaborations
that we establish and by the commitment of our own people. Throughout 2021, we continued
to build on existing, successful programmes, responded to needs and worked to establish new
initiatives that will allow us to keep contributing to the society and the environment. This section
shares some of the key initiatives we undertook during the year and the outcomes that they
produced.
126
CONTINUING OUR COVID-19 RELIEF EFFORTS

As society continued to feel the impact of the COVID-19 pandemic for a second year, BIMB continued to offer
support to a wide range of organisations and bodies to which we were able to make a positive contribution.
Over the course of the year, BIMB found opportunities to make contributions which benefitted more than 19,600
people in total.
Supporting Hospitals
The resurgence of COVID-19 cases during the year tested the resilience of the public healthcare system and BIMB
acted to support these vital medical facilities and our frontliners. We supported the immediate needs of COVID-19
hospitals by contributing RM200,000 worth of supplies of vital items such as Personal Protective Equipment
(“PPE”), isolation gowns, hand sanitisers, face masks, boots and head covers to five hospitals across the nation,
which benefitted more than 16,000 individuals. Additionally, we supported a group of five COVID-19 hospitals in
different parts of the country by providing them with the much-needed oxygen regulators as they dealt with
the sharp rise in the number of patients being admitted. Each of the five selected hospitals received 10 oxygen
regulators under our Prihatin COVID-19 initiative. BIMB also donated RTK COVID-19 test kits to Hospital USM in
Kubang Kerian, Kelantan, which benefitted 300 members of B-40 families who needed to remain at the hospital
to look after loved ones.
127
FOR THE COMMON GOOD
Supporting the Vulnerable
Throughout what remained a challenging year for many, Bank Islam actively worked to share benefits with those
in society who are less fortunate and with those who continue to serve on the frontlines of the pandemic. In
the holy month of Ramadan, we distributed Iftar packed food for 750 frontliners from the police force, the fire
brigade, the National Cancer Institute and the armed forces as an expression of our gratitude for their service.
We also channelled contributions to other groups in society that had been affected by the pandemic:
• BIMB’s Sadaqa House social finance vehicle continued to play its part in supporting the vulnerable by
making collections from the public that were channelled to asnaf who are directly affected by COVID-19.
In total, Sadaqa House distributed RM201,262 in partnership with JAKIM and PERKIM.
• A total of RM50,000 from Sadaqa House and our CSR fund was contributed to the Ministry of Defence
(“MINDEF”) Prihatin Fund to support members of the B-40 group and military veterans who were impacted
by COVID-19. A total of 300 food baskets were distributed to needy armed forces families across Malaysia.
• We contributed RM100,000 to a joint initiative between Kelab Bank Islam (“KBI”) and YADIM to provide
support to 366 asnaf, both Muslim and non-Muslim, nationwide. The beneficiaries included a wide range
of people whose livelihoods had been impacted by the pandemic, including taxi drivers, buskers, artists
and trishaw drivers. We also provided support to vulnerable groups like single mothers, the disabled, and
mualaf. Each of them received a food basket worth RM100 and RM150 in cash.
• We donated RM12,000 to provide packs of essential food items to 150 B-40 families residing at the PPR
Seri Mulia flats to ease their burden during the pandemic.
RM1,562,562
WAS CONTRIBUTED TO COVID-19
RELIEF EFFORTS IN 2021
128
SUPPORTING STUDENTS AND EDUCATION

We worked closely with a range of partners to support students whose education was disrupted due to the
shift to online lessons during the national lockdown or when their schools were forced to close as a result of
COVID-19 outbreaks. As part of our Prihatin COVID-19 initiatives during the year, we provided 1,000 asnaf students
nationwide, of all races, with electronic devices such as tablets and free internet access (4 months Celcom Data
Plan), ensuring that these students from underprivileged families would not be left behind. A total of RM627,000
was contributed towards the project.
Our former parent company, BHB, also acted to support the Government’s effort by supplying 150,000 tablet
computers to 500 schools across the country through the Ministry of Finance. BHB supplied laptops to 166
underprivileged students at two schools in the state of Sarawak, complete with a 12 month data plan, under the
Cerdik CSR project, with our total contribution being RM300,000.
We continued with the implementation of our flagship ‘Jom Ke Sekolah’ programme, an annual initiative where
children from the B40 segment are provided with schooling supplies and essentials. We provided school necessities
to 62 underprivileged children from Rumah Kebajikan Anak Yatim Mary, KL, Pertubuhan Kebajikan Rumah Anak -
Anak Yatim dan Miskin Al-Taqwa, Baling and vulnerable members of the community from PPR Mulia in Batu Caves.
Each child was given school essentials, including new school uniforms, school shoes, socks, a stationery set, pencil
case, school bag and colour pencils. Priority was given to families with children starting primary school in 2022.
129
FOR THE COMMON GOOD
OUR FLOOD RELIEF EFFORTS SK Labohan Dagang in Kuala Langat, Selangor, where
we provided relief to 400 flood victims.
Malaysia experienced its most devastating floods in
decades in December of 2021, with more than 70,000 With the Group’s nationwide presence, it was inevitable
people being displaced. Bank Islam recognised our that some members of our own staff and their families
obligations to society and the nation, making a variety would also be affected by the floods and BIMB took
of contributions that benefitted more than 6,400 people measures to provide them with the needed relief and
through our AMAL Prihatin Flood Relief Programme. support. A total of 49 people, comprising staff and their
family members each received RM3,000 from BIMB’s
We provided a range of basic necessities to 5,000 flood CSR fund.
victims in the states of Pahang, Johor, Sabah, Terengganu
and Perak, in areas that had experienced some of the We also engaged our customers and provided various
worst flooding. We also contributed to repairing the digital channels for our customers to donate directly to
surau and musolla of schools that had been damaged those in need through the Sadaqa House crowdfunding
by the floodwaters. A total of RM362,640 in aid was platform via BangKIT microfinancing.
channelled in cooperation with MINDEF, and Pertubuhan
Dakwah Islamiah Sekolah-sekolah Malaysia (“PEKDIS”).
Focusing on the immediate needs of those displaced
RM570,000
by the flooding, we made contributions of essential
items and dry food supplies to flood victims being
housed at the temporary flood relief centres (“PPS”)
in a variety of locations. Working with MINDEF, we IN TOTAL WAS CONTRIBUTED TO
channelled RM41,572 in relief supplies to seven PPS in FLOOD RELIEF EFFORTS IN 2021
Pahang, which benefitted 1,000 people. We carried-out
a similar effort at the PPS SK Bukit Changgang and
130
INVESTING IN THE ENVIRONMENT

Our AMAL untuk Alam initiative to support environmental causes and sustainable farming continues to show
good progress. For the second year in a row, we collaborated with the Jasin Correctional Prison in Melaka and
Farmers’ Organisation Authority (Lembaga Pertubuhan Peladang) on a sustainable urban farming project run by
prison inmates in Jasin, Melaka. The project has been a success, benefitting approximately 600 inmates and 40
families in the area. Inmates grow a range of produce using hydroponic techniques, which require no soil, less
water and reduced chemicals, making them safer to eat. To put the project on a more sustainable basis, in 2021
we expanded the range of produce being cultivated, adding the higher-end options of rock melons and Japanese
cucumber in addition to the leafy green vegetables that we started in 2020.
Under our Jejak AMAL initiative which supports sustainable agriculture, we made an essential contribution to
a farmer to help him start a hydroponic & fertigation project with Pertubuhan Peladang Kawasan Maras Batu
Rakit. BIMB provided the seeds, saplings, fertiliser and farm equipment, with the training and coaching provided
by LPP Terengganu. We carried out the project in cooperation with Pertubuhan Peladang Kawasan Maras Batu
Rakit.
Additionally, on the island community of Tanjung Surat in Johor, we successfully worked to provide a community
of underprivileged fishermen families with access to renewable solar energy for their boat houses.
We have also continued to raise public awareness of environmental issues through social media and direct
engagement. In January, for example, our ‘Interesting Facts about Hydroponics’ post on Facebook and Instagram
rapidly gained attention, crossing the 40,000 views mark. We also continued to use our social media presence
to raise awareness of events like Earth Day and World Environment Day. On the direct engagement front, we
distributed 1,500 AMAL reusable tote shopping bags to the community during our CSR events in an effort to
raise public awareness of the need to reduce single use plastic waste.
131
FOR THE COMMON GOOD
SHARING BENEFITS AND GOODWILL

Providing Better Living
BIMB’s ‘Projek Bantuan Rumah, Baiti Jannati’ programme,

which was launched in 2008, sees us working with a network
of stakeholders to identify vulnerable members of society who
are in need of proper housing infrastructure. In 2021, we worked
with Dewan Bandaraya Kuala Lumpur (“DBKL”) to provide better
living conditions for 11 families in the capital by providing the
funds for home ownership and repair costs. BIMB contributed a
total of RM600,000 in zakat and AMAL funds towards the project.
Since its launch in 2008, the programme has provided more than
300 houses, accommodating poor families across the country,
with our total contribution exceeding RM9 million.
AMAL Ihtimam Ramadan
As many members of society continued to feel the impact of the COVID-19 pandemic, BIMB continued to support
our frontliners and vulnerable members of society, both through direct donations and by working to share benefits
and goodwill.
Under our AMAL Ihtimam Ramadan 2021, we made cash contributions to 20 asnaf during a bubur lambuk distribution
event at the Masjid Jamek Kampung Baru, as well as making a RM5,000 zakat contribution to the mosque itself.
We also distributed a further 4,500 packets of bubur lambuk to frontliners, members of the public, BIMB staff and
members of the media during the holy month. Additionally, we shared the joy with 1,500 students and staff at the
Islamic Centre of USM by contributing to an Iftar event at the university.
We also facilitated the provision of canopies and other needed equipment to the Surau Ahmad Dawjee Dhadabhoy
(“SWADD”) during the month of Ramadan. The Group had supported the Iftar Fest @ SWADD since 2018. Due to the
strict COVID-19 related SOPs, a total of 300 Iftar food packs were distributed daily to KL city workers to break their fast.
132
AMAL Ihtimam Korban HELPING WHERE WE CAN

In 2021 we, once again, organised an AMAL Ihtimam Beyond our contributions to targeted programmes
Korban programme in conjunction with Hari Raya Korban. and collaborations, BIMB continues to look for ways
We distributed a total of RM23,000 in zakat funds at to support the betterment of society in general. In
the Kem Kementah, army camp in Kuala Lumpur. This 2021, we made contributions to a variety of events
included contributing RM20,000 to 100 asnaf and a
and programmes, including a RM10,000 donation
RM3,000 contribution to the Masjid Al Fatih mosque at
to the Tabung Kebajikan Jabatan Siasatan dan
the camp. Additionally, BIMB contributed three heads
of cattle for sacrifice as Lembu Korban, with the meat Penguatkuasaan Trafik (“JSPT”) benefitting those
being distributed to 250 recipients. In all, BIMB made who help ensure road and traffic safety. We also
a contribution of RM38,000 in zakat and AMAL funds collaborated with the Kuantan Municipal Council on
for the event. a CSR project that benefitted 250 homeless people.
Raising Awareness Additionally, we contributed approximately RM30,000

Additionally, to raise awareness and understanding of to support the MYLady Assistance Scheme to empower
the Islamic religion, we made a contribution of RM5,000 single mothers and young women living with HIV and
towards the contest to create an animated video to raise to Malaysian AIDS Foundation’s (“MAF”) 100,000 Steps
understanding of Islam (Pertandingan Merekacipta Video to End AIDS virtual walk event last year. The initiative
Animasi Kefahaman Islam), thereby also supporting the provided a platform for 100 of our staff participants
local content-creation and creative industries. to not only maintain a healthy lifestyle but also to
directly advocate for the HIV cause through social
media. The funds raised through the charity walk
will help MAF to expand their life-saving efforts by
providing more people living with HIV with access
to treatment.
133
CORPORATE
INFORMATION
AS AT 31 MARCH 2022
BOARD AUDIT AND OARD NOMINATION AND
B
BOARD OF DIRECTORS EXAMINATION COMMITTEE REMUNERATION COMMITTEE
Chairman Chairman
Chairman
TAN SRI DR. ISMAIL HAJI BAKAR Datuk Bazlan Osman Dato’ Sri Khazali Ahmad
(Appointed w.e.f. 7 January 2022) (Appointed w.e.f. 3 September 2021)
Independent Non-Executive Director
Members Members Members

• AZIZAN AHMAD • Mohd Yuzaidi Mohd Yusoff • Azizan Ahmad
Senior Independent Non-Executive (Appointed as interim Chairman w.e.f.
3 September 2021 until 7 January 2022)
• Datuk Nik Mohd Hasyudeen Yusoff
Director
(Appointed w.e.f. 20 September 2021)
• MOHAMED RIDZA MOHAMED • Mohamed Ridza Mohamed Abdulla
• Noraini Che Dan
ABDULLA • Dato’ Sri Khazali Ahmad (Deceased on 26 August 2021)
Non-Independent Non-Executive
Director • Nuraini Ismail • Zahari @ Mohd Zin Idris
(Appointed w.e.f. 7 January 2022) (Retired w.e.f. 20 September 2021)
• DATUK NIK MOHD HASYUDEEN
YUSOFF • Noraini Che Dan
Non-Independent Non-Executive (Deceased on 26 August 2021)
OARD FINANCING
B
Director • Zahari @ Mohd Zin Idris
REVIEW COMMITTEE
• DATO’ SRI KHAZALI AHMAD (Retired w.e.f. 20 September 2021)
Independent Non-Executive Director Chairman
• Mashitah Haji Osman
(Appointed w.e.f. 3 September 2021 Datuk Nik Mohd Hasyudeen Yusoff
• MOHD YUZAIDI MOHD YUSOFF
and ceased to be a member on (Appointed w.e.f. 1 June 2021 and
7 January 2022) re-designated as Chairman w.e.f.
• MASHITAH HAJI OSMAN 20 September 2021)
• Datuk Nik Mohd Hasyudeen Yusoff
(Appointed w.e.f. 20 September 2021 Members
• DATO’ SRI AMRIN AWALUDDIN and ceased to be a member on • Azizan Ahmad
Non-Independent Executive Director 7 January 2022)
(Appointed w.e.f. 10 September 2021) • Mashitah Haji Osman
• MOHD ASRI AWANG • Mohd Asri Awang

BOARD RISK COMMITTEE (Appointed w.e.f. 1 October 2021)
(Appointed w.e.f. 1 October 2021) Chairman • Zahari @ Mohd Zin Idris
• DATUK BAZLAN OSMAN Azizan Ahmad (Retired w.e.f. 20 September 2021)
Independent Non-Executive Director Members
(Appointed w.e.f. 7 January 2022)
• Mohd Yuzaidi Mohd Yusoff
• NURAINI ISMAIL
• Mashitah Haji Osman
(Appointed w.e.f. 7 January 2022) • Datuk Nik Mohd Hasyudeen Yusoff
(Appointed w.e.f. 1 June 2021)
• NORAINI CHE DAN
(Deceased on 26 August 2021) • Mohd Asri Awang
(Appointed w.e.f. 1 October 2021)
• ZAHARI @ MOHD ZIN IDRIS
(Retired w.e.f. 20 September 2021) • Noraini Che Dan
(Deceased on 26 August 2021)
• Zahari @ Mohd Zin Idris

(Retired w.e.f. 20 September 2021)
134
OARD STRATEGIC &

B SHARIAH ADVISORY AUDITORS
SUSTAINABILITY COMMITTEE COMMITTEE, BIMB PricewaterhouseCoopers PLT
Chairman INVESTMENT MANAGEMENT (LLP0014401-LCA & AF 1146)
BERHAD Level 10, 1 Sentral
Mohd Yuzaidi Mohd Yusoff
Jalan Rakyat, Kuala Lumpur Sentral
Members Chairman PO Box 10192
Ustaz Dr. Ahmad Shahbari @ 50706 Kuala Lumpur
• Mohamed Ridza Mohamed Abdulla
Sobri Salamon Tel : 03-2173 1188
• Mashitah Haji Osman Fax : 03-2173 1288
Members
• Datuk Nik Mohd Hasyudeen Yusoff • Associate Professor Dr. Asmak
(Appointed w.e.f. 26 January 2021) Ab Rahman
REGISTERED OFFICE
• Noraini Che Dan • Dr. Shamsiah Mohamad
(Deceased on 26 August 2021) Bank Islam Malaysia Berhad
(Registration No. 198301002944
SHARIAH ADVISORY [98127-X])
OARD INFORMATION
B COMMITTEE, BIMB 32nd Floor, Menara Bank Islam
SECURITIES SDN BHD No 22, Jalan Perak
TECHNOLOGY COMMITTEE
50450 Kuala Lumpur
Chairman
Chairman Tel : 03-2088 8000
Ir. Dr. Muhamad Fuad Abdullah Fax : 03-2088 8033
Mohamed Ridza Mohamed Abdulla
Members Web : www.bankislam.com
Members
• Professor Dr. Asmadi Mohamed
• Dato’ Sri Khazali Ahmad Naim
SHARE REGISTRAR
• Azizan Ahmad • Dr. Shamsiah Mohamad
Boardroom Share Registrars Sdn. Bhd.
• Mohd Yuzaidi Mohd Yusoff
(Registration No: 199601006647
CHIEF EXECUTIVE OFFICERS [378993-D])
IN THE GROUP 11th Floor, Menara Symphony
HARIAH SUPERVISORY
S No. 5, Jalan Prof. Khoo Kay Kim
• Mohd Muazzam Mohamed
COUNCIL, BANK ISLAM Group Chief Executive Officer Seksyen 13
MALAYSIA BERHAD Bank Islam Malaysia Berhad 46200 Petaling Jaya
Selangor Darul Ehsan
Chairman • Najmuddin Mohd Lutfi
Chief Executive Officer Tel : 03-7890 4700
Professor Dato’ Dr. Ahmad Hidayat BIMB Investment Management Berhad Fax : 03-7890 4670
Buang
• Kamaruzaman Abdullah
Members Chief Executive Officer
BIMB Securities Sdn Bhd
STOCK EXCHANGE LISTING
• Associate Professor Dr. Yasmin
Hanani Mohd Safian • Masdayana Md Setamam Main Market of Bursa Malaysia
Chief Executive Officer Securities Berhad
• Professor Dr. Asmadi Mohamed Bank Islam Trust Company (Labuan) Ltd Listing Date : 8 October 2021
Naim Stock Name : BIMB
• Dr. Shamsiah Mohamad Stock Code : 5258
COMPANY SECRETARIES
• Sahibus Samahah Datu Haji Kipli
Haji Yassin • Maria Mat Said
(LS0009400) (SSM Practicing Certificate
No. 202008002449)
• Norhidayati Mohamat Salim

(MIA 27364) (SSM Practicing Certificate
No. 202008002356)
135
BOARD
COMPOSITION
TENURE
9%
27%
< 3 YEARS
3 TO 9 YEARS
> 9 YEARS
64%
BOARD 73% AGE
COMPOSITION INDEPENDENT
45%
DIRECTORS
50 TO 60
YEARS OLD
61 TO 70
YEARS OLD
27%
55%
NON-
INDEPENDENT
DIRECTORS DIVERSITY
18%
MALE
FEMALE
82%
136
BOARD OF DIRECTORS’
PROFILE
Academic and Professional Qualifications Previous
• Bachelor of Economics, B. Econs (Hons) in Applied Economics, • Chief Secretary to the Government of Malaysia
• Secretary General of the Ministry of Agriculture &
University of Malaya
Agro Based Industry
• Diploma in Public Administration, National Institute of Public
• Secretary General of the Ministry of Transport
Administration (INTAN) • Director of National Budget, National Budget Office,
• Masters of Business Administration, University of Hull, United Treasury, the Ministry of Finance
Kingdom • Director of National Strategic Unit, Treasury, the
• PHD, University of Hull, United Kingdom Ministry of Finance

• Deputy Secretary General (Policy), the Ministry of
Areas of Expertise Defence
• Senior Advisor to the Executive Director (SEA Group),
• Economic and Financial Management
the World Bank
Work Experience & Positions • Head of Section, Government Procurement, the
Present Ministry of Finance

• Head of Planning, Research and Policy, Government
• Company Director
Procurement, the Ministry of Finance
• Principal Assistant Secretary, Economic and
International Division (Public Finance Section), the
Ministry of Finance
• Assistant Secretary, Economic and International
Division (Capital Market, Money Market and Banking
Section), the Ministry of Finance
• Assistant Secretary, Economic and International
Division (External Trade and Balance and Payment),
the Ministry of Finance
• Assistant Director, Anti Narcotic Task Force
• Assistant Secretary, Contract and Supply Division,
the Ministry of Finance
Directorship in Other Public Companies
• Nil
Membership of Board Committees in BIMB

• Nil
Meeting Attendance
14 of 14 Board Meetings held in the Financial Year
Ended 31 December 2021
Declaration of Interest
He has no conviction for offences within the past five
years. He has no family relationship with any director
and/or major shareholder of BIMB and no conflict of
interest in BIMB.
Tan Sri Dr. Ismail Haji Bakar

Chairman/Independent Non-Executive Director
Nationality Malaysian
Age/Gender 62, Male
Date of Appointment 1 August 2020
BOARD OF DIRECTORS’ PROFILE
Academic and Professional Qualifications • Group Legal Advisor, Arab Malaysian

• LLB (First Class Honours), International Corporation Berhad
Islamic University Malaysia • Advocate and Solicitor, Corporate
• Institute of Chartered Secretaries and Department, Messrs. Rashid & Lee
Administrators (London) (ICSA)
• Fellow, Institute of Chartered Secretaries Directorship in Other Public Companies
and Administrators (FCIS) • BIMB Investment Management Berhad
• Fellow, Malaysian Society of Adjudicators • KPJ Healthcare Berhad
• Associate Member, Chartered Institute • Sime Darby Property Berhad
of Arbitrators (ACI Arb)
Membership of Board Committees in
Areas of Expertise BIMB
• Legal, Corporate, Islamic Finance and • Chairman, Board Information Technology
FinTech Committee
Work Experience & Positions • Member, Board Audit and Examination
Mohamed Ridza Mohamed Present Committee
Abdulla • Managing Partner, Mohamed Ridza & Co • Member, Board Strategic & Sustainability
• Chairman, BIMB Investment Management Committee
Non-Independent Non-Executive Director
Berhad
• Member of YAPEIM Governance Committee Meeting Attendance
Nationality Malaysian • Advocate & Solicitor High Court of Malaya 14 of 14 Board Meetings held in the
• Member of Bar Council Malaysia Financial Year Ended 31 December 2021
Age/Gender 53, Male • Fellow Member ICDM Declaration of Interest
Date of Appointment 1 December 2010 • Board Member, OIC Arbitration Centre
He has no conviction for offences within
(Istanbul) the past five years. He has no family
Previous relationship with any director and/or major
• Partner, Zaid Ibrahim & Co shareholder of BIMB and no conflict of
• General Legal Counsel, Technip Asia Pacific interest in BIMB.
Academic and Professional Qualifications Directorship in Other Public Companies

• M e m b e r, M a l a y s i a n I n s t i t u t e o f • Al Hijrah Media Corporation
Accountants (MIA) • USAS Berhad
• Fellow, CPA Australia • Petron Malaysia Refining & Marketing
• Ad v ance d B u s ine s s Managem ent Bhd.
Program, IMD International, Switzerland
• Bachelor of Business, Curtin University Membership of Board Committees in
BIMB
of Technology, Australia
• Chairman, Board Financing Review
Areas of Expertise Committee
• Accounting • Member, Board Risk Committee
• Member, B oard Nomination and
Work Experience & Positions
Remuneration Committee
Present • Member, Board Strategic & Sustainability
• Director, Malaysian Professional Accountancy
Datuk Nik Mohd Hasyudeen Committee
Centre (Limited by Guarantee)
Yusoff Meeting Attendance
Non-Independent Non-Executive Director Previous
• Group Managing Director and Chief 14 of 14 Board Meetings held in the
Financial Year Ended 31 December 2021
Executive Officer, Lembaga Tabung Haji
Nationality Malaysian • Executive Director, Market and Corporate Declaration of Interest
Age/Gender 57, Male Supervision, Securities Commission He has no conviction for offences within
Malaysia the past five years. He has no family
Date of Appointment 1 October 2016 • Executive Chairman, Audit Oversight relationship with any director and/or
Board, Securities Commission Malaysia major shareholder of BIMB and no conflict
• Chief Executive Officer, Inovastra Sdn. of interest in BIMB.
Bhd.
• Chairman, Khairuddin, Hasyudeen & Razi,
Chartered Accountants
138
Academic and Professional Qualifications • Credit Manager/Senior Credit Manager,

• Diploma in Agriculture, Universiti Putra Maybank Berhad
Malaysia • Credit Officer/Senior Credit Officer,
Maybank Berhad
Areas of Expertise
• Banking and Credit Management Directorship in Other Public Companies
• Nil
Present Membership of Board Committees in
• Company Director BIMB
• Chairman, Board Risk Committee
Previous
• Principal Consultant for School of Credit, • Member, Board Nomination and
Agrobank Remuneration Committee
• Member, Board Information Technology
• Executive Vice President, President/CEO
Committee
Office, Agrobank
• Member, Board Financing Review
Azizan Ahmad • Chief Credit Officer, Agrobank
Committee
Senior Independent Non-Executive Director • Chief Commercial Officer, Agrobank
• E xe cu ti ve V i c e Pre s i d e nt , Cre di t Meeting Attendance
Management Division, Bank Muamalat 14 of 14 Board Meetings held in the
Nationality Malaysian Malaysia Berhad Financial Year Ended 31 December 2021
Age/Gender 67, Male • General Manager, Human Resource
Division, Maybank Berhad Declaration of Interest
Date of Appointment 2 January 2018 • General Manager, Credit Control Division, He has no conviction for offences within
Maybank Berhad the past five years. He has no family
• Regional Manager, Maybank Berhad relationship with any director and/or major
shareholder of BIMB and no conflict of
interest in BIMB.
Academic and Professional Qualifications • Assistant Director, International Trade

• Master Degree (Econs) (Oklahoma), University Division, Ministry of International Trade
of Central of Oklahoma, USA and Industry
• Bachelor of Economy (Hons) (Agricultural • Principal Assistant Secretary, Ministry of
Economy), Universiti Kebangsaan Malaysia Health
• Diploma in Public Administration, National • Education Attache, Malaysia Student
Institute of Public Administration (INTAN) Department, High Commission of Malaysia,
London
Areas of Expertise • A s sis tant Dire c tor, Public S er vice
• Economy, Finance and Tax Management
Department
Work Experience & Positions Directorship in Other Public Companies
Present • Shangri-La Hotels (Malaysia) Berhad
• Company Director • Favelle Favco Berhad
Previous • Muhibbah Engineering (M) Berhad
• Director General of Customs, Royal Malaysia • Cuscapi Berhad (Executive Director)
Dato’ Sri Khazali Ahmad Customs
Independent Non-Executive Director • Sabah Federal Secretary, Prime Minister’s Membership of Board Committees in BIMB
• Chairman , B oard Nomination and
Department
• Deputy General of Customs (Management), Remuneration Committee
Nationality Malaysian • Member, Board Audit and Examination
Royal Malaysia Customs
• Special Functions Officer to Chief Secretary Committee
Age/Gender 67, Male
• Member, Board Information Technology
to the Government of Malaysia, Prime
Date of Appointment 2 January 2018 Committee
Minister’s Department
• Section Chief, Tax Analysis Division, Ministry Meeting Attendance
of Finance 14 of 14 Board Meetings held in the Financial
• Principal Assistant Director, Tax Analysis Year Ended 31 December 2021
Division, Ministry of Finance
• Malaysia Trade Commissioner to Beijing, Declaration of Interest
Ministry of International Trade and Industry He has no conviction for offences within the
• Principal Assistant Director, International past five years. He has no family relationship
Trade Division, Ministry of International Trade with any director and/or major shareholder
and Industry of BIMB and no conflict of interest in BIMB.
139
Academic and Professional Qualifications Directorship in Other Public Companies

• M Sc. Business Administration, San • Chairman, Muslim Professionals Forum
Diego State University, USA Berhad
• B Sc. Computer Science, Northern • Board of Trustee, PADU Corporation
Illinois University, USA
Areas of Expertise BIMB
• Digital Economy • C h a i r m a n , B o a r d S t r a t e g i c &
• Strategic Planning Sustainability Committee
• Risk and Quality Management • Member, Board Audit and Examination
• Business Process Management Committee
Work Experience & Positions • Member, Board Risk Committee
Present • Member, Board Information Technology
• Company Director Committee
• Member ICDM
Independent Non-Executive Director Meeting Attendance
Previous 14 of 14 Board Meetings held in the
• Independent Non-Executive Director, Financial Year Ended 31 December 2021
Malaysia Digital Economy Corporation
Age/Gender 59, Male Declaration of Interest
Sdn. Bhd.
• Group Chief Strategy and Corporate He has no conviction for offences within
Date of Appointment 1 July 2019 the past five years. He has no family
Governance Officer, PST Ventures Sdn.
Bhd. relationship with any director and/or major
• Co-Founder and Managing Director, shareholder of BIMB and no conflict of
Clear Minds Sdn. Bhd. interest in BIMB.
• Senior Manager, Accenture
Academic and Professional Qualifications • Unit Head of Institutional and Islamic

• Bachelors of Business Administration Financing, Corporate Banking, RHB
(Hons), Universiti Kebangsaan Malaysia Sakura Merchant Bankers Bhd.
• Master of Business Administration, • Officer to Senior Manager, Corporate
University College of Wales Aberystwyth, Banking, RHB Sakura Merchant Bankers
United Kingdom Bhd.
Areas of Expertise Directorship in Other Public Companies

• Corporate and Corporate Investment • Radiant Globaltech Berhad
Banking
Work Experience & Positions BIMB
Present • Member, Board Risk Committee
• Company Director • Member, Board Strategic & Sustainability
Mashitah Haji Osman Previous
Committee
Independent Non-Executive Director • Member, Board Financing Review
• Chief Operating Officer in Business, Bank
Committee
Muamalat Malaysia Berhad
Nationality Malaysian • Director/Head, Corporate Investment Meeting Attendance
Banking, Bank Islam Malaysia Berhad 14 of 14 Board Meetings held in the
Age/Gender 64, Female
• First Senior Vice President/Senior General Financial Year Ended 31 December 2021
Date of Appointment 1 October 2020 Manager, RHB Sakura Merchant Bankers
Bhd. Declaration of Interest
• General Manager/Head, Islamic Finance She has no conviction for offences within
(Islamic Capital Markets), RHB Sakura the past five years. She has no family
Merchant Bankers Bhd. relationship with any director and/or major
• Member of RHB Capital Syariah Council, shareholder of BIMB and no conflict of
RHB Sakura Merchant Bankers Bhd. interest in BIMB.
140
Academic and Professional Qualifications • Chief Executive Officer, Kewangan Bersatu

• BA (Economics), Macquaire University Sydney, Berhad
Australia • General Manager, Treasury Division, BSN
Commercial Bank (M) Berhad
Areas of Expertise • Vice President/Treasurer, Chase Manhattan
• Treasury, Banking and Enterprise Risk
Bank, Kuala Lumpur
Management • A s sis tant General Manager, Funds
Work Experience & Positions Management, Amanah Merchant Bank
Present Berhad
• Company Director • Senior Manager, Treasury, Amanah Chase
Merchant Bank Berhad
Previous • Money Market & Foreign Exchange Trader,
• Chief Operating Officer, Bank Muamalat
Bank Bumiputra Malaysia Berhad
Malaysia Berhad
• Chief Risk Officer, Bank Muamalat Malaysia Directorship in Other Public Companies
Mohd Asri Awang Berhad Nil
Independent Non-Executive Director • Executive Vice President, Wholesale Banking,
Membership of Board Committees in BIMB
Bank Muamalat Malaysia Berhad
• Member, Board Risk Committee
• Head, Special Projects, Bank Muamalat
Nationality Malaysian • Memb er, B oard Financing Rev iew
Malaysia Berhad
• Chief Executive Officer, Malaysian Rating Committee
Age/Gender 66, Male
Corporation Berhad Meeting Attendance
Date of Appointment 1 October 2021 • Head, Group Corporate Services, Amanah 3 of 3 Board Meetings held in the Financial
Capital Partners Berhad/MIDF Berhad Year Ended 31 December 2021
• CEO Designate, Malaysian Financial
Guarantee Insurance, Amanah Capital Declaration of Interest
Partners Berhad He has no conviction for offences within the
• General Manager, Treasury and Southern past five years. He has no family relationship
Region, BSN Commercial Bank (M) Berhad with any director and/or major shareholder
of BIMB and no conflict of interest in BIMB.
Academic and Professional Qualifications • Manager Planning and Budgeting,

• Fellow, the Association of Chartered Petronas
Certified Accountants (ACCA), United • Manager Group Budget, Petronas
Kingdom • Manager Accounts Services, Petronas
• Senior Executive, Accounts Services,
Areas of Expertise
Petronas
• Finance
• Corporate Planning Executive, Maybank
• Corporate Finance
Finance
• Audit and Governance
• Loans Rehabilitation Executive, Bank
• Financial Risk Management
Bumiputera Berhad
• Treasury
• Corporate Finance Executive, Bumiputera
Work Experience & Positions Merchant Bankers
Present • Audit Team Leader, Azman Wong & Salleh
• Company Director • Executive, Accountants General Office
Nuraini Ismail Previous Directorship in Other Public Companies

• Vice President Treasury, Finance, Petronas • GDEX Berhad
• Senior General Manager, Group Treasury,
Petronas
Nationality Malaysian • General Manager, Finance and Accounts BIMB
• Member, Board Audit and Examination
Services, Malaysian International Trading
Age/Gender 59, Female Committee
Company
• General Manager, Commercial Services, Declaration of Interest
Date of Appointment 7 January 2022
Malaysian International Trading Company She has no conviction for offences within
• Senior Manager Finance and Accounts the past five years. She has no family
Services, Malaysian International Trading relationship with any director and/or major
Company shareholder of BIMB and no conflict of
• Manager Value Based Management, interest in BIMB.
Petronas
141
Academic and Professional Qualifications • Acting Group Chief Executive Officer,

• Fellow, Association of Chartered Certified Telekom Malaysia Berhad
Accountants (ACCA), United Kingdom • Deputy Group Chief Executive Officer,
• Chartered Accountant, Malaysian Institute Telekom Malaysia Berhad
of Accountants (MIA) • Group Chief Financial Officer, Telekom
• Diploma in Accounting, Polytechnic of Malaysia Berhad
North London, United Kingdom • Chief Financial Officer, Celcom (Malaysia)
Berhad
Areas of Expertise • Senior Vice President, Finance/Company
• Finance and Accounting Secretary, Kumpulan FIMA Berhad
Work Experience & Positions • Manager, Accounting and Financial Control,
Present American Express (M) Sdn. Bhd.
• Project Accountant, Sime Engineering Sdn.
• D i r e c t o r, M a l a y s i a n P r o f e s s i o n a l
Bhd., PETRONAS 2nd Refinery Melaka
Accountancy Centre (Limited by Guarantee) • Acting Accounts and Administration
• Vice President, MIA
Manager, Sime Hogg Robinson (S) Pte Ltd
• Chair, ACCA Malaysia Advisory Committee • Accountant, Sime Darby Berhad
Datuk Bazlan Osman Previous • Auditor, Hanafiah Raslan & Mohamad
Independent Non-Executive Director • Non-Executive Chairman/Director, GITN Directorship in Other Public Companies
Sdn Bhd • Bursa Malaysia Berhad
• Independent Non-Executive Director, • FIMA Corporation Berhad
Citibank Berhad • Glomac Berhad
Age/Gender 57, Male • Director, Universiti Utara Malaysia • Syarikat Takaful Malaysia Keluarga Berhad
• Director, VADS Berhad
Date of Appointment 7 January 2022 • Director, Malaysia Digital Economy Membership of Board Committees in BIMB
Corporation Sdn Bhd • Chairman, Board Audit and Examination
• N o n - E x e c u t i v e D i r e c t o r, L a b u a n Committee
Reinsurance (L) Ltd
• Commissioner, PT XL Axiata Tbk Declaration of Interest
• Independent Non-Executive Director, He has no conviction for offences within the
Nationwide Express Holdings Berhad past five years. He has no family relationship
• Executive Director, Telekom Malaysia with any director and/or major shareholder
Berhad of BIMB and no conflict of interest in BIMB.
Academic and Professional Qualifications • Group Chief Financial Officer, Media Prima
• Char tered Institute of Management Berhad
Accountants (CIMA), United Kingdom • Chief Financial Officer, Sistem Televisyen
• Malaysian Institute of Accountants, Malaysia Malaysia Berhad
(MIA) • Chief Operating Officer, Putera Capital
• Masters of Business Administration, Berhad
University of Hull, United Kingdom • Head of Corporate Finance, Malaysia
• Bachelor of Business Administration (Hons), Resources Corporation Berhad
Acadia University, Nova Scotia, Canada
Areas of Expertise • Al Hijrah Media Corporation
• Accounting • Taliworks Corporation Berhad
• TH Plantations Berhad
Present Membership of Board Committees in BIMB
Dato’ Sri Amrin Awaluddin • Group Managing Director and Chief • Nil
Executive Officer, Lembaga Tabung Haji
Non-Independent Executive Director Meeting Attendance
Previous 4 of 4 Board Meetings held in the Financial
• Executive Officer, Armed Forces Fund Board Year Ended 31 December 2021
• Executive Director/Group Managing Director,
Age/Gender 56, Male Boustead Holdings Berhad Declaration of Interest
• Group Managing Director and Executive He has no conviction for offences within the
Date of Appointment 10 September 2021 Director, Media Prima Berhad past five years. He has no family relationship
• Chief Executive Officer, Sistem Televisyen with any director and/or major shareholder
Malaysia Berhad of BIMB and no conflict of interest in BIMB
except by virtue of being a nominee Director
of Lembaga Tabung Haji.
142
SHARIAH SUPERVISORY
COUNCIL’S PROFILE
Professor Dato’ Dr. Ahmad Hidayat Buang Professor Dr. Asmadi Mohamed Naim
Chairman Member
60, Male, Malaysian 52, Male, Malaysian
Date of Appointment: 1 April 2015 Date of Appointment: 3 February 2020
• Professor at Department of Shariah and Law, Academy • Vice Chancellor/Chief Executive of Universiti Islam
of Islamic Studies, University of Malaya and also a Antarabangsa Sultan Abdul Halim al-Mu’adzam Shah
(UniSHAMS) and Professor at the Islamic Business
Senate Member of the University
School (IBS), UUM College of Business, Universiti Utara
• Chairman, Shariah Supervisory Council, Amanah Raya Malaysia (secondment to UniSHAMS)
Berhad • Member, Shariah Advisory Council Securities Commission
• Shariah Lawyer, Federal Territories Shariah Courts of Malaysia since 2014
• Chairman, Sun Life Takaful Malaysia Berhad, since
1 April 2021
Qualifications • Member, Fatwa Committee of Kelantan (Jamaah Ulama
• Doctor of Philosophy (Laws), School of Oriental and African Kelantan) since 2018
• Member, Shariah Expert Panel, JAKIM since 2019
Studies, London University, UK • Member, Wakaf Council of Pahang since October 2020
• Master of Law (LLM), School of Oriental and African Studies • Member, Lembaga Zakat Negeri Kedah since July 2021
SOAS, London University, UK • Member, Royal Commission of Inquiry on TH w.e.f.
• Bachelor of Shariah, University Malaya, Kuala Lumpur January 2022 (6 months)
Experience Qualifications
• Director, Academy of Islamic Studies, University of Malaya • Chartered Islamic Finance Professional
(October 2006 to January 2011) • PhD (Fiqh and Usul Fiqh), International Islamic University
• Deputy Director (Research and Development), Academy of Malaysia
Islamic Studies, University of Malaya in 2006 as well as Head • Master (Fiqh and Usul Fiqh), International Islamic University
Malaysia
of Department of Shariah and Law from 1997 to 1999 and • Bachelor of Shariah (Hons) (al-Fiqh wa al-Tasyri’) University
from 2016 to 2019 of Jordan
• Shariah Advisor, CIMB Bank Berhad, OCBC Bank, Commerce
Experience
Tijari Bank, Amanah Raya Unit Trust Management Sdn. Bhd.,
• Member, Shariah Advisory Council Bank Negara Malaysia
ASM MARA Unit Trust Management Berhad, I-Free Capital (2013-2019)
Pte Ltd (Singapore), Bumiputra Commerce Trustee Sdn. • Member, Kedah Zakat Council from 2013 to 2015
Bhd. and Perbadanan Usahawan Nasional Berhad • Professor, Islamic Business School, Universiti Utara Malaysia,
• Member, Shariah Working Committee of Islamic Banking College of Business
• Member, Muamalat Expert Panel JAKIM (2016-2018)
and Takaful for Bank Negara Malaysia • Board Member, Sintok Agro Sdn. Bhd. (2018-2019)
• Member, Islamic Education Coordination Advisory Council • Internal Consultant, Hong Leong Islamic Bank (2008-2010)
for the Council of Rulers Malaysia • Member, Shariah Council, Hong Leong Islamic Bank (2011-
2013)
• Grand Council Member, Chartered Institute of Islamic Finance
Directorship in Other Public Companies Professional (2018-2020)
• Nil • Member of various councils such as Ministry of Higher
Education Committee of Malaysia for Islamic Finance, Takaful
and Muamalat Administration Curriculum

• Nil
143
SHARIAH SUPERVISORY COUNCIL’S PROFILE
Associate Professor Dr. Yasmin Hanani Mohd Safian Dr. Shamsiah Binti Mohamad
Member Member
45, Female, Malaysian 55, Female, Malaysian
Date of Appointment: 1 April 2015 Date of Appointment: 3 February 2020
• Associate Professor, Faculty of Shariah and Law, • Shariah adviser and Shariah Committee Member of
Universiti Sains Islam Malaysia various institutions including Association of Islamic
• Member, Majlis Agama Islam Selangor (MAIS) Banking Institutions Malaysia, Pertubuhan Peladang
• Member, Federal Territories Syarak Consultative Kebangsaan, Lembaga Zakat Selangor, Bursa Malaysia,
Committee Medic IG Holdings and Shariah Advisory Council
• Member, Economic Development Committee, MAIS Member for Securities Commission Malaysia
• Deputy Chairman, Dakwah Committee, MAIS
• Board Member, Teraju Ekonomi Asnaf Sdn. Bhd.
Qualifications
• Member, Shariah Committee Universiti Sains Islam
• Doctor of Philosophy in Foundation of Jurisprudence (Fiqh
Malaysia
and Usul Fiqh), University of Jordan
• Member, Shariah Committee Co-opbank Pertama
• Master of Shariah, University of Malaya
• Bachelor of Shariah (First Class Honors), University of Malaya
Qualifications
• Doctor of Philosophy in Islamic Studies, University of Exeter, Experience
United Kingdom • Senior Researcher, International Shari’ah Research Academy
• Master in Islamic Studies, University of Birmingham, United for Islamic Finance
Kingdom • Associate Professor, Department of Fiqh and Usul, Academy
• Bachelor of Shariah Islamiyyah, Al-Azhar University, Egypt of Islamic Studies, University of Malaya
• Shariah Specialist, Islamic Capital Market Department,
Experience Securities Commission, Malaysia
• Chairman, Committee of Non-Government Islamic • Member, Shariah Advisory Council Bank Negara Malaysia
Organisation, MAIS (2017-2020) • Member, Shariah Expert Panel, JAKIM
• Member, Aqidah Restriction Committee MAIS (2017-2020)
• Published several books and articles on Islamic Economics,
• Panel Member Standards Development Committee on the
Banking and Finance, Profit on Islamic Jurisprudence, Pawn
National Occupational Skill Standard Islamic Banking (2017)
Broking in Islam. Her areas of expertise include Islamic
• Member of Shariah Committee Affin Islamic (2011-2015)
Jurisprudence (Shariah) and Islamic Finance
• Committee of Malaysian Halal Certification Advisory
• International Professional Halal Trainer for the United States
Agency for International Development (USAID)/IHRAM Directorship in Other Public Companies
• Dean, Faculty of Shariah and Law, Universiti Sains Islam • Nil
Malaysia (2012-2014)
• Deputy Dean, Postgraduate School, Universiti Sains Islam
Malaysia (2011-2012)
• Halal Certified Trainer, JAKIM

• Teraju Ekonomi Asnaf Sdn. Bhd.
144
Sahibus Samahah Datu Haji Kipli Haji Yassin Ustaz Saiful Anuar Hambali
Member Secretary
55, Male, Malaysian 49, Male, Malaysian
Date of Appointment: 1 January 2021 Date of Appointment: 23 January 2017
Qualifications
• State Mufti of Sarawak • Certified Shari’a Adviser and Auditor, Accounting and Auditing
• Member of Majlis Kebangsaan Hal Ehwal Ugama Islam Organisation for Islamic Financial Institutions, Bahrain
Malaysia • Certified Shariah Advisor, Association of Shariah Advisors in
• Member, Muzakarah of the Fatwa Committee, National Islamic Finance, Malaysia
Council of Islamic Religious Affairs Malaysia
• Certificate in Commercial Credit, Moody’s Analytics
• Member, Fatwa Research and Management Committee,
JAKIM • Certificate (Distinction) in Internal Auditing for Financial
• Member, Board of Control and Licensing for al-Quran Institutions, Asian Institute of Chartered Bankers
Text Printing, Ministry of Home Affairs • Certified Qualification in Islamic Finance, Islamic Banking &
• Steering Committee Member of National Human Rights Finance Institute Malaysia
Action Development Plan
• Ex-Officio, Majlis Islam Sarawak • Master of Business Administration (MBA) in Islamic Banking
• Member, Board of Baitulmal and Wakaf & Finance from International Islamic University Malaysia
• Chairman, Malaysian Shariah Committee of Islamic • Bachelor of Shariah (Hons) from University of Malaya
Accounting Standards
• Member, Baitulmal Finance and Investment Committee,
Experience
Sarawak Islamic State Council
• Member, Audit Committee in Sarawak Islamic State • Has over 24 years of experience in the banking and Islamic
Council financial industry
• Member, Sarawak’s Welfare Trust Board • Appointed as Head of Shariah on 1 January 2020
• Member, Board of Sarawak’s Institute of Islamic Skills • He is also the Secretary of Shariah Supervisory Council of
• Fellow, Panel Advisor Islamic Information Centre
• Member, National Council for Islamic Affairs Malaysia Bank Islam since 23 January 2017
(MKI) • Prior to joining Bank Islam, he was the Head of Shariah
Supervisory Department, Affin Islamic Bank Berhad
Qualifications Directorship in Other Public Companies

• Certificate In Training and Assessment, Australia
• Nil
• Certificate In Special Islamic Course (Muslim College), London
• Master of Usuluddin (Islamic Thought), University of Malaya
• Bachelor of Islamic Studies (Usuluddin) (Hons.), University
of Malaya
Experience
• Tutor, Islamic Philosophy, University of Malaya (1992-1993)
• Assistant Secretary, Sarawak Islamic State Council (1993-2006)
• Head, Deputy Director (Human Resources) (2007)
• Deputy Mufti, Sarawak Mufti Office (2007-2008)
• Director, Kipli Yassin Resources (2009-2010)

• Nil
145
MANAGEMENT TEAM’S
PROFILE
Academic and Professional Qualifications
• Member of the Chartered Institute of Islamic
Finance Professionals (CIIF)
• Member of the Malaysian Institute of
Accountants (MIA)
• Member of the Malaysian Institute of Certified
Public Accountants (MICPA)
• Member of the Chartered Institute of Public Fi
nance and Accountancy (CIPFA)
• Bachelor of Accounting, International Islamic
University Malaysia
Area of Expertise
Finance, Audit and Consulting
Work Experience & Position

Present
• Group Chief Executive Officer, Bank Islam
Malaysia Berhad
• Council Member, Association of Islamic Banking
and Financial Institutions Malaysia
• Council Member, Malaysian Institute of Certified
Public Accountants
• Chairman, Islamic Finance Committee, Malaysian
Institute of Accountants
Previous
• Chief Executive Officer, BIMB Holdings Berhad
• Chief Financial Officer, Bank Islam Malaysia
Berhad
• Director, BIMB Securities Sdn. Bhd.
• Director, BIMB Securities (Holdings) Sdn. Bhd.
• Alternate Director, Amana Bank PLC (Sri Lanka)
• Director, Al-Wakalah Nominees (Tempatan)
Sdn. Bhd.
• Partner, KPMG Malaysia
• Executive Director, KPMG Management Consulting

Mohd Muazzam Mohamed Nil
Group Chief Executive Officer
Bank Islam Malaysia Berhad Declaration of Interest
He has no convinction for offences within the
past five years. He has no family relationship with
Age/Gender 48, Male any director and/or major shareholder of BIMB,
Date of Appointment 5 December 2018 and has no conflict of interest in BIMB.
146
BUSINESS UNITS
Mizan Masram Zamree Mohamed Rizal Mohd Yusof

Group Chief Business Officer – Retail Head, Consumer Banking Head, SME Banking
49, Male, Malaysian 55, Male, Malaysian 44, Male, Malaysian
Date of Appointment: 1 January 2020 Date of Appointment: 1 August 2018 Date of Appointment: 13 July 2020
Qualifications Qualifications Qualifications

• Diploma in Business Studies • Master in Business Administration • Master’s in Business Administration,
majoring in Business, Association (MBA) UiTM Strategic Management, Universiti
of Business Executives, United • Bachelor of Business Administration Teknologi Malaysia, Cranfield School
Kingdom (UK) (Marketing) (Hons), (BBA) UiTM of Management
• Bachelor of Business Administration,
Multimedia University
Experience Experience
• H a s m o r e t h a n 2 5 y e a r s o f • Has 27 years of experience in the
Experience
experience in the finance industry banking industry
• Has over 20 years of experience in
• Joined Bank Islam in 2009 as Head, • At Regional Office Level as the
the banking industry particularly in
Recovery & Rehabilitation Division Regional Consumer Business the areas of Strategic Planning, SME
before being appointed as Chief Manager in Johor for eight (8) years and Commercial Banking
Business Officer on 1 January 2020 • Joined Bank Islam in 2004 and has • Held several capacities at the Regional
• Appointed as the Group CBO - served in various positions at and Head Office for SME and
Retail on 7 February 2022 upon the Branches including Branch Manager Commercial Banking Sales
listing of Bank Islam • Appointed as the Head of Consumer Distribution at various banking
• Currently responsible for the overall Banking on 1 August 2018 institutions, including in Sales and
positioning and strategic formulation Business Execution
of three (3) main business divisions, Directorship in Other Public Companies • Joined Bank Islam in 2020 as Head
namely Consumer Banking, Deposit • Nil of SME Banking on 13 July 2020
& Cash Management and SME • He also serves as the Adjunct
Professor in University Malaysia
Banking Declaration
Terengganu in Faculty of Business,
• Does not have any conflict of
Economics & Social Development and
Directorship in Other Public Companies interest or any family relationship
Centre of Foundation & Continuing
• Nil with any Director and/or major Education
shareholders of the Bank
Declaration • Has not been convicted of any Directorship in Other Public Companies
• Does not have any conflict of offence within the past five (5) years • Nil
interest or any family relationship nor has he been imposed any
with any Director and/or major public sanction or penalty by any Declaration
shareholders of the Bank relevant regulatory bodies during • Does not have any conflict of interest
• Has not been convicted of any the financial year ended 2021 or any family relationship with any
offence within the past five (5) years Director and/or major shareholders
nor has he been imposed any of the Bank
public sanction or penalty by any • Has not been convicted of any offence
relevant regulatory bodies during within the past five (5) years nor has
the financial year ended 2021 he been imposed any public sanction
or penalty by any relevant regulatory
bodies during the financial year
ended 2021
147
MANAGEMENT TEAM’S PROFILE

BUSINESS UNITS
Mohd Noor Jab Adi Asri Baharom Ahmad Haliman Abdul Halim
Head, Deposits & Cash Management Head, Treasury & Markets Head, Commercial Banking
Date of Appointment: 18 April 2019 Date of Appointment: 2 January 2018 Date of Appointment: 1 April 2019

• Bachelor’s Degree (Honours) in • Master of Business Administration • Certified Business Credit Professional
Business Administration (Finance) (Finance), San Francisco State by Asian Institute of Chartered
Universiti Utara Malaysia University, USA Banker
• Master in Business Administration,
Experience Experience Winthrop University, South Carolina,
• H a s m o r e t h a n 3 0 y e a r s o f
• Has served in various positions at USA
experience in commercial/
Branch and Regional Office levels, • Bachelor’s Degree in Finance,
investment banking and corporate
primarily in Retail Sales University of North Carolina, USA
advisory encompassing Treasury
• Was Head of Credit Administration
and Debt Capital Markets, Risk
for Northern Region for two (2) Management, Investments, Experience
years, Regional Consumer Business Corporate Finance, Project Finance • Has 23 years of experience in the
Manager Perak for (six) 6 years and and Strategic Planning banking industry
Regional Manager Southern Region • Has held various senior management • Joined Bank Islam in 2014 as Head
for five (5) years positions at Malaysian Rating of Business in Commercial Banking
• A p p o i n t e d H e a d o f B r a n c h Corporation Berhad PT Bank • A p p o i n t e d a s t h e H e a d o f
Operation & Supervision in 2018 Bumiputera Indonesia Tbk, PT Commercial Banking on 1 April 2019
• Appointed Head Deposit & Cash Danareksa, and Perwira Affin Bank
Management on 18 April 2019 Berhad. Started his career at Amanah Directorship in Other Public Companies
Merchant Bank Berhad • Nil
Directorship in Other Public Companies • Was the Executive Vice President,
Treasury and Capital Markets at
• Nil Declaration
Bank Muamalat Malaysia Berhad
prior to joining Bank Islam
Declaration interest or any family relationship
• Appointed as the Head of Treasury
• Does not have any conflict of & Markets on 2 January 2018 with any Director and/or major
interest or any family relationship shareholders of the Bank
with any Director and/or major Directorship in Other Public Companies • Has not been convicted of any
shareholders of the Bank • Nil offence within the past five (5) years
• Has not been convicted of any nor has he been imposed any
offence within the past five (5) years Declaration public sanction or penalty by any
nor has he been imposed any • Does not have any conflict of relevant regulatory bodies during
public sanction or penalty by any interest or any family relationship the financial year ended 2021
relevant regulatory bodies during with any Director and/or major
the financial year ended 2021 shareholders of the Bank
• Has not been convicted of any
offence within the past five (5) years
nor has he been imposed any public
sanction or penalty by any relevant
regulatory bodies during the
financial year ended 2021
148
Zaharin Mohd Ali

Head, Corporate Banking
52, Male, Malaysian
Date of Appointment: 1 January 2015
Qualifications
• Bachelor of Accountancy, University
of Central England, UK
Experience
• Has 25 years of experience in the
banking industry
• Has served in various departments
primarily in sales and services-
related functions
• Joined Bank Islam in 2010 as Head
of Business in Commercial Banking
where he was entrusted to drive
the performance-based sales
culture within the division
• Appointed as the Head of Corporate
Banking on 1 January 2015

• B I M B O f f s h o r e C o m p a n y
Management Services Sdn. Bhd.
• Bank Islam Trust Company (Labuan)
Ltd.
Declaration
interest or any family relationship
with any Director and/or major
shareholders of the Bank
nor has he been imposed any
public sanction or penalty by any
relevant regulatory bodies during
the financial year ended 2021
149

CORPORATE SERVICES & SUPPORT UNITS
Mohd Nazri Chik Mohamed Iran Moriff Mohd Shariff Azizan Abd Aziz
Group Chief Financial Inclusion Officer Group Chief Operating Officer Group Chief Financial Officer
Date of Appointment: 1 January 2020 Date of Appointment: 1 June 2017 Date of Appointment: 27 May 2019

• Member of Institute of Corporate • Chartered Banker (AICB) • Member, Malaysian Institute of
Directors Malaysia • Member, Association of Chartered Accountants (Chartered Accountant)
• Member of the Chartered Institute of Certified Accountants (ACCA) • Fellow, Association of Chartered
Islamic Finance Professionals (CIIF) • Masters in Business Administration, Certified Accountants (ACCA)
• Certified Shariah Advisor (ASAS) Strathclyde Business School, Glasgow, • Bachelor of Accounting and Finance,
• Certified Shariah Advisor and Auditor Scotland, UK University of Plymouth, UK
(AAOIFI) • Bachelor in Accountancy, University
• Certified Professional Shariah Auditor of East Anglia, Norwich, UK Experience
• Master Degree in Shariah, University • Before working in Malaysia, he was
of Malaya Experience attached with KPMG United Kingdom
• Started his career at Messrs. and Channel Islands, holding a
Experience PriceWaterhouse, specialising in the position of Senior Manager in KPMG’s
• Has over 19 years of experience in audit of banks and financial Financial Services Division
Shariah management of an Islamic • Prior to joining Bank Islam, he was
institutions before furthering his
bank an Equity Partner in Deloitte
studies and subsequently working in
• Joined Bank Islam in June 2004 before Southeast Asia, leading the M&A
the UK for ten (10) years
leaving in 2009 to take up another Transaction Services practice for
• Joined the Consumer Banking
position at an investment arm of Deloitte Malaysia
Division of Bank Islam in October
Dubai government. He rejoined Bank • Joined Bank Islam on 27 May 2019
2009
Islam in January 2011 to lead the as the Chief Financial Officer and
Shariah Division and subsequently the • Appointed as the Chief Internal
Auditor in May 2014 and as Chief also served as the Group Chief
Strategic Relations Division on Financial Officer for BIMB Holdings
1 January 2020 Operating Officer on 1 June 2017
Berhad
• Appointed as Group Chief Financial • Appointed as the Group Chief
• Appointed as the Group Chief
Inclusion Officer on 1 October 2021 Operating Officer on 1 February
Financial Officer on 8 October 2021
2022 upon the listing of Bank Islam
upon the listing of Bank Islam
• Terengganu Incorporated Sdn. Bhd. Directorship in Other Public Companies
• TEKUN Nasional • Nil
• BIMB Investment Management
• Amana Bank PLC, Sri Lanka Berhad
Declaration
Declaration • Does not have any conflict of interest
Declaration
• Does not have any conflict of interest or any family relationship with any
• Does not have any conflict of interest
or any family relationship with any Director and/or major shareholders
or any family relationship with any
Director and/or major shareholders of of the Bank
Director and/or major shareholders
the Bank • Has not been convicted of any of the Bank
• Has not been convicted of any offence offence within the past five (5) years • Has not been convicted of any
within the past five (5) years nor has nor has he been imposed any public offence within the past five (5) years
he been imposed any public sanction sanction or penalty by any relevant nor has he been imposed any public
or penalty by any relevant regulatory regulatory bodies during the financial sanction or penalty by any relevant
bodies during the financial year ended year ended 2021 regulatory bodies during the financial
2021
year ended 2021
150
Iskandar Shah Zulkarnain Zainal Azlan Zainudin Noor Farilla Abdullah

Group Chief Human Resources Officer Group Chief Technology Officer Group Chief Strategy Officer
40, Male, Malaysian 52, Male, Malaysian 45, Female, Malaysian
Date of Appointment: 14 October 2019 Date of Appointment: 1 August 2016 Date of Appointment: 22 January 2019

• Masters in Business Administration, • Chartered Professional in Islamic • Bachelor’s Degree in Economics,
Universiti Utara Malaysia Finance (CPIF) accorded by the University of Warwick, UK
• Bachelor of IT, Multimedia University, Chartered Institute of Islamic
Malaysia Experience
Finance Professionals (CIIF)
• Started her career in Accenture, a
• INSEAD Leadership Programme
Experience leading global professional services
• Has over 15 years of experience in • Bachelor’s Degree in Computer
company where she consulted with
managing human resources for Science (Honours), Universiti agencies and organisations involved
corporations and banks Kebangsaan Malaysia in the Multimedia Super Corridor
• Prior to joining Bank Islam, he was implementation
the Director of Human Resources Experience • Has more than 15 years of experience
of Al Rajhi Bank Malaysia • Has over 22 years of experience in in the financial services industry
• He brings with him professional the banking industry including with a leading bank,
experience in strategic human driving work in merger integration,
• Has worked at leading financial
resources management and has strategy formulation and
institutions in Malaysia including
delivered many key HR projects implementation
during his tenures at Al Rajhi, HSBC Maybank, CIMB Bank, Phileo Allied
• Has spent most of her professional
Amanah, Maybank, Shell and Bank prior to joining Bank Islam career in business transformation,
Telekom Malaysia • Joined Bank Islam in August 2016 programme management and
• Joined Bank Islam on 14 October and has held various leadership complex project implementation
2019 as the Chief Human Resources p os i t i on s i n I T S t rat e g y an d • Joined Bank Islam as Chief Strategy
Officer and also served as the Head Operations Officer on 22 January 2019
of Group Human Capital for BIMB • Appointed as the Group Chief • Appointed as the Group Chief
Holdings Berhad Technology Officer on 8 October Strategy Officer on 8 October 2021
• Appointed as the Group Chief upon the listing of Bank Islam
2021 upon the listing of Bank Islam
Human Resources Officer on
8 October 2021 upon the listing of Directorship in Other Public Companies
Bank Islam Directorship in Other Public Companies
• Nil • Nil
Directorship in Other Public Companies Declaration

• Nil Declaration
• Does not have any conflict of interest or any family relationship
Declaration interest or any family relationship with any Director and/or major
• Does not have any conflict of with any Director and/or major shareholders of the Bank
interest or any family relationship shareholders of the Bank • Has not been convicted of any
with any Director and/or major offence within the past five (5) years
shareholders of the Bank nor has she been imposed any
• Has not been convicted of any public sanction or penalty by any
offence within the past five (5) years nor has he been imposed any
public sanction or penalty by any relevant regulatory bodies during
nor has he been imposed any the financial year ended 2021
public sanction or penalty by any relevant regulatory bodies during
relevant regulatory bodies during the financial year ended 2021
151

CORPORATE SERVICES & SUPPORT UNITS
Maria Mat Said Mohd Ariff Moideen Kutty

Group Chief Legal Officer & Company Head, Recovery & Rehabilitation
Secretary 50, Male, Malaysian
55, Female, Malaysian Date of Appointment: 1 January 2020
Date of Appointment: 29 January 2009
Qualifications
Qualifications • Associate Member, Asian Institute
• Licensed Company Secretary, of Chartered Bankers
Companies Commission of Malaysia • Bachelor’s Degree in Business
• Bachelor of Law, University of Administration, Universiti Utara
Malaya Malaysia
Experience Experience
• Has 30 years of experience in the • Has over 22 years of experience in
banking industry performing mainly the Islamic banking industry
legal functions and 23 years as a • Served as Head, Corporate Recovery
company secretary Department responsible for
• Joined Bank Islam in August 2005 managing and overseeing the
and has served the Bank as the Bank’s overall collection and
Company Secretary since 29 recovery activities for Corporate,
January 2009 Commercial, SME including Labuan
• Subsequently appointed as the Offshore and Treasury portfolio
Group Company Secretary of BIMB before assuming his current
Holdings Berhad on 31 December position
2009 • Appointed as the Head of Recovery
• Appointed as the Group Chief Legal & Rehabilitation on 1 January 2020
Officer & Company Secretary on 8
October 2021 upon the listing of Directorship in Other Public Companies
Bank Islam • Nil
Directorship in Other Public Companies Declaration

• Nil • Does not have any conflict of
interest or any family relationship
Declaration with any Director and/or major
• Does not have any conflict of shareholders of the Bank
interest or any family relationship • Has not been convicted of any
with any Director and/or major offence within the past five (5) years
shareholders of the Bank nor has he been imposed any
• Has not been convicted of any public sanction or penalty by any
offence within the past five (5) years relevant regulatory bodies during
nor has she been imposed any the financial year ended 2021
public sanction or penalty by any
152
INDEPENDENT UNITS
Khairul Muzamel Perera Alina Sylvia Appoo Nik Azmir Nik Anis
Group Chief Credit Officer Group Chief Risk Officer Group Chief Compliance Officer and
63, Male, Malaysian 48, Female, Malaysian Group Chief Integrity & Governance
Date of Appointment: 1 January 2015 Date of Appointment: 1 August 2017 Officer
49, Male, Malaysian
Qualifications Qualifications Date of Appointment: 1 January 2015
• Associate Member of the Institute • Certificate in Business and Climate
of Chartered Secretaries & Change: Towards Net Zero Emission, Qualifications
Administrators, London • Attended the Advance Compliance
University of Cambridge Institute
• Chartered member of the Chartered Academy Certification Programme
for Sustainability Leadership offered by University of California,
Institute of Islamic Finance
• Certified Professional in Islamic Berkeley, USA
Professionals, Malaysia.
Finance accorded by the Chartered • Certified Professional in Anti-Money
Experience Institute of Islamic Finance Laundering/Counter Financing of
• Has over 35 years of banking related Professionals Terrorism by the International
Compliance Association, UK
experience including stints at a debt • Bachelor’s Degree in Mathematics
• Certified Professional in Islamic
rating agency and a national asset (Honours), Universiti Sains Malaysia Finance (CPIF) accorded by the
management institution Chartered Institute of Islamic Finance
• Joined the Risk Management Division Experience Professionals
of the Bank in April 2009, heading • Masters in Business Administration,
• Has over 22 years of banking
the Credit Risk Management unit. He Nottingham Trent University, UK
experience focusing predominantly
sits as a Bank nominated Director on • Bachelor of Arts in Economics,
the Board of Amana Bank Ltd (Sri on Market Risk in Malaysia and the
University of Pittsburgh, USA
Lanka) and also serves as the Chairman Asian region
of the Underwriting and Investment • Has held key leadership and Experience
Committee at the Bank and the management positions in related • Has over 25 years of banking
Investment Committee at BIMB fields at various local banks prior experience in the areas of
Investment Management Berhad to joining Bank Islam Compliance, Integrity & Governance,
• Appointed as the Group Chief Credit • Joined Bank Islam in 2012 as Head Anti-Money Laundering, Banking
Officer on 8 October 2021 upon the Operations and Operational Risk
of Market & Operational Risk and Management
listing of Bank Islam, and is currently
was appointed as Chief Risk Officer • Assumed the role of Chief Compliance
overseeing the Credit Management
Division which covers Credit Analysis, on 1 August 2017 Officer in Bank Islam on 1 January
Credit Analytics, Valuation, the Central • Appointed as the Group Chief Risk 2015
Financing Processing function and Officer on 8 October 2021 upon the • Appointed as the Group Chief
in 2021 a newly formed ESG Unit in listing of Bank Islam Compliance Officer and Group Chief
Bank Islam Integrity & Governance Officer on 8
October 2021 upon the listing of
Directorship in Other Public Companies Bank Islam
Directorship in Other Public Companies • Nil
• Nil Directorship in Other Public Companies
Declaration • Nil
Declaration
• Does not have any conflict of Declaration
interest or any family relationship interest or any family relationship
• Does not have any conflict of interest
with any Director and/or major with any Director and/or major or any family relationship with any
shareholders of the Bank shareholders of the Bank Director and/or major shareholders
• Has not been convicted of any • Has not been convicted of any of the Bank
offence within the past five (5) years offence within the past five (5) years • Has not been convicted of any
nor has he been imposed any public nor has she been imposed any offence within the past five (5) years
sanction or penalty by any relevant public sanction or penalty by any nor has he been imposed any public
regulatory bodies during the sanction or penalty by any relevant
financial year ended 2021 regulatory bodies during the financial
the financial year ended 2021 year ended 2021
153

INDEPENDENT UNITS
Zalfitri Abd Mutalip Azmi Samuri Saiful Anuar Hambali

Group Chief Internal Auditor Group Chief Information Security Officer Group Chief Shariah Officer
Date of Appointment: 1 January 2019 Date of Appointment: 1 March 2017 Date of Appointment: 1 January 2020

• Certificate in Internal Auditing for • Certified Information Security • Certified Shari’a Adviser and Auditor,
Financial Institutions (CIAFIN) Manager (CISM) from ISACA Accounting and Auditing Organisation
• Chartered Professional in Islamic • Bachelor’s Degree in Computer for Islamic Financial Institutions, Bahrain
Finance (CPIF) accorded by the Science, University of Manchester, • Certified Shariah Advisor, Association of
Chartered Institute of Islamic Shariah Advisors in Islamic Finance,
Finance Professionals (CIIF) Institute of Science and Technology, Malaysia
• Bachelor of Science in Business UK • Certificate in Commercial Credit, Moody’s
Administration (Finance), Denver Analytics
University, USA Experience • Certificate (Distinction) in Internal
• Has over 22 years of experience in Auditing for Financial Institutions, Asian
Experience the field of Information Technology Institute of Chartered Bankers
• Has over 26 years of audit experience and Information Security • Certified Qualification in Islamic Finance,
in the banking industry • Worked at several technology Islamic Banking & Finance Institute
• Started his career in 1994 and has Malaysia
companies, including a regional IT
gained extensive audit experience • Master of Business Administration (MBA)
service provider and has had stints
in management, operations and in Islamic Banking & Finance from
credit involving the branches, at Bank Negara Malaysia (BNM) International Islamic University Malaysia
regional offices, automobile serving multiple departments, • Bachelor of Shariah (Hons) from University
financing centres and head office including Technology Risk Specialist of Malaya
departments/divisions including Unit, Banking Supervision and IT
investigation audit Supervision prior to joining Bank Experience
• Joined Bank Islam in October 2007 Islam • Has over 24 years of experience in the
and has served as the Head of • Joined Bank Islam in May 2015 and banking and Islamic financial industry
Branch Audit, Head of Head Office • Prior to joining Bank Islam, he was the
has served the Bank as the Chief
Audit and Head of Credit Audit prior Head of Shariah Supervisory Department,
to his current appointment Information Security Officer since Affin Islamic Bank Berhad
• Assumed the role of Chief Internal 1 March 2017 • Appointed as Head of Shariah on
Auditor on 1 January 2019 • Appointed as the Group Chief 1 January 2020
• Appointed as the Group Chief Information Security Officer on • He is also the Secretary of Shariah
Internal Auditor on 8 October 2021 8 October 2021 upon the listing of Supervisory Council of Bank Islam since
upon the listing of Bank Islam Bank Islam 23 January 2017
• Appointed as the Group Chief Shariah
Directorship in Other Public Companies Officer on 8 October 2021 upon the listing
• Nil of Bank Islam
• Nil
Declaration Directorship in Other Public Companies
Declaration
• Does not have any conflict of • Nil
interest or any family relationship • Does not have any conflict of interest
with any Director and/or major or any family relationship with any Declaration
shareholders of the Bank Director and/or major shareholders • Does not have any conflict of interest or
• Has not been convicted of any of the Bank any family relationship with any Director
offence within the past five (5) years • Has not been convicted of any and/or major shareholders of the Bank
nor has he been imposed any offence within the past five (5) years • Has not been convicted of any offence
public sanction or penalty by any nor has he been imposed any public within the past five (5) years nor has he
relevant regulatory bodies during been imposed any public sanction or
sanction or penalty by any relevant
the financial year ended 2021 penalty by any relevant regulatory bodies
regulatory bodies during the during the financial year ended 2021
financial year ended 2021
154
HEADS OF SUBSIDIARIES’
PROFILE
Najmuddin Mohd Lutfi Masdayana Md Setamam Kamaruzaman Abdullah

Chief Executive Officer Chief Executive Officer/Principal Officer Chief Executive Officer/Executive
BIMB INVESTMENT MANAGEMENT BANK ISLAM TRUST COMPANY Director
BERHAD (LABUAN) LTD BIMB SECURITIES SDN. BHD.
47, Male, Malaysian 40, Female, Malaysian 56, Male, Malaysian
Date of Appointment: 27 April 2015 Date of Appointment: 13 October 2017 Date of Appointment: 12 November 2020

• Master in Business Administration, • Bachelor’s Degree in International • ACCA from Emile Woolf College,
University of Missouri-St. Louis, Business, University Malaysia Sabah London
United States of America • A certified Trust Officer licensed by
• Bachelor of Science in Business Labuan Financial Services Authority Concurrent Roles
Administration, University of • A certified Anti-Money Laundering & • Chief Executive Officer/Executive
Counter Financing of Terrorism Director, BIMB Securities Sdn. Bhd.
Missouri-St. Louis, United States
Compliance Officer by the Asian
of America Institute of Chartered Bankers
• Alumni of the Judge Business Experience
School Advanced Leadership • Head of Dealing, BIMB Securities
Concurrent Roles
Program of the University of Sdn. Bhd.
• CEO, Bank Islam Trust Company
Cambridge, United Kingdom (Labuan) Ltd • Head of Equity Market Dealing,
• Registered with the Federation of • Head, Labuan Offshore Business, Bank MIDF Amanah Investment Bank
Investment Managers Malaysia Islam Malaysia Berhad Berhad
• Manager and authorised officer, BIMB • H e a d o f D e a l i n g , M a y b a n k
• S e c u r i t i e s C o m m i s s i o n ’ s
Offshore Company Management Investment Berhad
Capital Markets Services
Services • Manager, Mayban Securities Sdn.
Representative’s License Holder
Bhd.
Experience • Fund Manager, Abrar Unit Trust
Concurrent Roles • Over 17 years of experience in Offshore Management Berhad
• D i r e c t o r , B I M B I n v e s t m e n t Trust and financial industry and holds • Research Analyst, UMBC Securities
Management Berhad since 2015 various positions including Compliance (later known as Sime Securities)
Manager, Business Continuity • Assistant Accountant, Wayss &
Experience Management Division Coordinator as Freytag
• Has 20 years of experience in the well as Business Risk Officer. Well • Corporate Banking Executive, Bank
financial services industry versed in the areas of strategic planning, of Commerce (M) Berhad (now
• Was formerly with a central bank sales & marketing, cashflow known as CIMB Bank)
and local and foreign asset management, regulatory compliance,
• Internal Auditor, Mayban Finance
management companies product development, risk management
Bhd.
and relationship management coupled
with a vast network of high net worth
Directorship in Other Public Companies clients Directorship in Other Public Companies
• Nil • Nil
Declaration • Nil Declaration
• Does not have any conflict of • Does not have any conflict of
interest or any family relationship Declaration interest or any family relationship
with any other Director and/or • Does not have any conflict of interest with any other Director and/or
major shareholders of the Bank or any family relationship with any major shareholders of the Bank
• Has not been convicted of any other Director and/or major • Has not been convicted of any
shareholders of the Bank offence within the past five (5)
offence within the past five (5)
• Has not been convicted of any offence years nor has he been imposed
years nor has he been imposed within the past five (5) years nor has
any public sanction or penalty by any public sanction or penalty by
she been imposed any public sanction
any relevant regulatory bodies any relevant regulatory bodies
or penalty by any relevant regulatory
during the financial year ended during the financial year ended
bodies during the financial year ended
2021 2021 2021
155
REGIONAL MANAGERS’
PROFILE
Rosmawati Mohamed Zin

Regional Manager, Eastern Region
Qualification
• Bachelor in Resources Economic from Universiti Putra Malaysia
(UPM)
Experience
• Started career in banking industry in 1992 at D&C Bank
• Joined Bank Islam since January 2010 and served as Branch
Manager
• Moved to Commercial Banking division from 2015-2017
• Served the Deposit & Cash Management division for about 3 years
Eastern Region
• 27 branches
Abdullah Ibrahim
Regional Manager, Southern Region
Qualification
• Master of Business Administration (MBA) from University Utara
Malaysia
Experience
• >35 years of experience in banking
• Joined Bank Islam in January 1987
• Held Branch Manager positions at Batu Pahat, Pasir Gudang, Johor
Bahru and Shah Alam
• Appointed as Regional Consumer Manager from 2011 until 2017
Southern Region
• 27 branches
Abdul Malek Abdullah

Regional Manager, East Malaysia Region
Qualification
• Diploma in Banking Studies from Universiti Teknologi MARA
Experience
• Joined Bank Islam in 2006
East Malaysia Region

• 13 branches
156
Mohd Fadzil Ajmain

Regional Manager, Northern Region
Qualification
• Diploma in Accountancy, Universiti Teknologi MARA
Experience
• 28 years in Banking & Auto Finance Industry
Northern Region
• 29 branches
Zameran Jusoh
Regional Manager, Central Region 1
Qualification
• Master’s Degree in Business Administration (International Management)
from RMIT University, Melbourne, Australia
Experience
• >16 years of experience in banking and >15 years in the Oil and Gas
industry
• Joined Bank Islam in 2004 as a Commercial Business Development
Manager
• Appointed as Kemaman Branch Manager and Regional Consumer
Business Manager (Terengganu) in 2006 and 2013 respectively
• Promoted as Head of Central Regional Office in October 2019
Central Region 1
• 22 branches
Mohamed Zaki Atip

Regional Manager, Central Region 2
Qualification
• B achelor of Business Administration (Marketing) from Universiti
Teknologi MARA (UiTM)
• Diploma in Public Administration from Institut Teknologi MARA (ITM)
Experience
• Began career with Mayban Finance Berhad (wholly-owned subsidiary
of Malayan Banking Berhad) in August 1990
• Joined BBMB Leasing Berhad (wholly-owned subsidiary of Bank
Bumiputra Malaysia Berhad) in February 1996
• Joined CIMB Bank Berhad in 2002
• Joined Bank Islam as Branch Manager of Muar Branch in June 2012
• Appointed as State Deposit Manager (Negeri Sembilan/Melaka) in
March 2016
Central Region 2
• 24 branches
157
ORGANISATION
STRUCTURE
SHARIAH SUPERVISORY COUNCIL
BOARD STRATEGIC & BOARD FINANCING

BOARD RISK COMMITTEE
SUSTAINABILITY COMMITTEE REVIEW COMMITTEE
GROUP RISK MANAGEMENT

Group Chief Risk Officer
GROUP CREDIT MANAGEMENT

Group Chief Credit Officer
GROUP COMPLIANCE
Group Chief Compliance Officer and
Group Chief Integrity & Governance Officer
GROUP INFORMATION
SECURITY & GOVERNANCE
Group Chief Information Security Officer
GROUP SHARIAH
Group Chief Shariah Officer
RETAIL COMMERCIAL BANKING

Group Chief Business Officer - Retail Head
CONSUMER BANKING CORPORATE BANKING

Head Head
SME BANKING TREASURY & MARKETS

Head Head
DEPOSITS & CASH MANAGEMENT

Head
BUSINESS MARKETING
Head
158
BOARD OF DIRECTORS
BOARD INFORMATION BOARD NOMINATION & BOARD AUDIT &

TECHNOLOGY COMMITTEE REMUNERATION COMMITTEE EXAMINATION COMMITTEE
GROUP CHIEF EXECUTIVE OFFICER

Mohd Muazzam Mohamed
GROUP FINANCIAL INCLUSION

Group Chief Financial Inclusion Officer
GROUP INTERNAL AUDIT
Group Chief Internal Auditor
PRODUCT MANAGEMENT
Head
Group Chief Operating Officer GROUP FINANCE

Group Chief Financial Officer GROUP LEGAL & SECRETARIAL
Group Chief Legal Officer
& Company Secretary
e-CHANNELS
Head GROUP TECHNOLOGY
Group Chief Technology Officer
GROUP HUMAN RESOURCES
Group Chief Human Resources Officer
BRANCH OPERATIONS
& SUPERVISION GROUP STRATEGIC MANAGEMENT
Head Group Chief Strategy Officer
GROUP CORPORATE
COMMUNICATIONS
Head
BUSINESS SUPPORT RECOVERY & REHABILITATION
Head Head
CORPORATE SUPPORT
Head
159
CORPORATE GOVERNANCE
OVERVIEW STATEMENT
GOVERNANCE, ETHICS AND INTEGRITY
Good corporate governance is key to the Group value creation and business
excellence. The Group upholds the highest standards of integrity and ethics in
the conduct of its business. Its continuous commitment to embed a culture of
integrity and ethical behaviour underpins its ability to remain a resilient organisation.
Guided by our best practices, we aim to create continued sustainable value for
our stakeholders. Good governance in the Group is about ethical and effective
leadership of the Board. The Board promotes and embraces value-creating
governance to ensure sustainable long-term performance, long-term economic
value and growth of the Group.
The Board acknowledges that good governance is a critical social inequities and economic insecurities. It brought to
component of strong financial institutions and plays a key the fore the importance of good governance and a resilient
role in maintaining public confidence in the financial system. Board leadership where focus is placed on business resilience,
Sound governance practices form the cornerstone of an ability to manage the crisis, facilitate recovery, rebound and
effective and responsible organisation. Driven by its leverage on the opportunities to be ahead of competitors.
responsibility to shareholders and a broader group of
stakeholders, the Board provides judicious leadership and We are pleased to present this Corporate Governance
strategic guidance to safeguard value-creation within a Overview Statement (CG Statement) for the financial year
framework of rigorous and vigorous controls. In this regard, ended 31 December 2021. The CG Statement has made
the Board is responsible in ensuring that the Group maintains reference to the three (3) key Corporate Governance Principles
effective governance on risk, internal controls and compliance in the Malaysian Code on Corporate Governance 2021 (MCCG
2021) which saw the introduction of new best Practices and
with applicable laws and regulations.
further guidance to strengthen corporate governance culture
of listed issuers.
On 8 October 2021, BIMB achieved a significant milestone,
where it took over the listing status of its parent company,
The Board considers that this CG Statement has also complied
BIMB Holdings Sdn Bhd (Formerly known as BIMB Holdings
with the statutory requirements, principles and best practices
Berhad) (BHB). As a listed entity, our governance processes
set out in the Companies Act 2016, Bank Negara Malaysia
will continue to be strengthened so that we are aligned with
(BNM) Corporate Governance Policy (BNM CG Policy) and
the principles of good governance and recommended best following its listed status, with the Main Market Listing
practices and that our approach to disclosure remains timely Requirements (MMLR) of Bursa Malaysia Securities Berhad
and transparent. (Bursa Malaysia).
The Board has ultimate accountability and responsibility for This CG Statement shall be read together with the Corporate
the performance and affairs of the Group and ensures that Governance Report (CG Report) published on BIMB’s website
its employees, shareholders, regulators, clients, suppliers, the at www.bankislam.com. The CG Report provides the details
environment and communities in which the Group operates, of how BIMB has applied each Practice as well as departures
adhere to high standards of ethical behaviour. and alternative measures in place within BIMB during the
financial year 2021.
The financial year under review has been marked by
unprecedented challenges. 2021 was another disruptive year This CG Statement takes into consideration the features of
as the world grappled with the COVID-19 pandemic that the MCCG 2021 and the adoption by BIMB of the new best
fundamentally changed the way businesses operate globally. Practices and how they have been applied, explains departures
The crisis has posed extraordinary risks and further revealed if any and alternative Practices implemented.
160
CORPORATE GOVERNANCE FRAMEWORK accountability and responsibility from the performance and
affairs of BIMB and ensures that BIMB adheres to high
As an organisation driven by its responsibility to shareholders standards of ethical behaviour.
and a broader group of stakeholders, good governance
practices are integrated across the Group and are imperative In executing its governance responsibility, the Board has
to its long-term success. embraced the following best governance practices:
BIMB’s governance structure and practices create value for Board Charter that sets out the roles of the Chairman,
all its stakeholders by: Chief Executive Officer, and Non-Executive Directors
(NEDs).
accentuating greater transparency, accountability and Board Charter that sets out the principles on the Code
responsibility; of Ethics, Conflicts of Interest, External Professional
balancing the autonomy of various operating entities Commitment and Whistle-blowing Policy.
within BIMB with the appropriate checks and balances; The positions of the Chairman and the Chief Executive
and Officer are held by two (2) different individuals.
inculcating ethical business conduct and desired A formal and transparent process for the appointment
behaviours based on our core values. of new Directors and re-appointment of Directors.
Annual Independent Directors’ Review to appraise
The Board is accountable to the shareholders in creating independence of Independent NEDs.
and delivering sustainable value through oversight of the The Chairman of the Board does not sit on any Board
management of the Group’s business, approving strategic Committees.
plans, monitoring their implementation and providing the The Chairman of the Board and key Board Committees1
necessary support for their successful execution. is an Independent NED.
The composition of the Board and key Board Committees1
The Board discharges its responsibilities within a clearly
comprised majority independent NEDs.
defined governance framework and robust mechanisms in
place. Through this framework, the Board, without abdicating The number of directors with common directorship
its responsibilities, delegates its governance responsibilities within the Group is kept at the minority.
to key committees of the Board and other Management Ongoing training and development for directors to ensure
committees. The effective functioning of the Board relies they are equipped with the necessary skills and knowledge
on the clarity of the various roles and responsibilities of the to discharge their duties and responsibilities.
committees. There is a clear division of responsibilities Regular review of the Board succession plan.
between the leadership of the Board and the executive
leadership of BIMB’s business. The Board retains ultimate 1 Refers to Board Audit & Examination Committee, Board Risk
Committee and Board Nomination & Remuneration Committee.
The table below illustrates BIMB’s governance structure, an overview of the Board, Board Committees and Management
Executive Committees.
SHAREHOLDERS
Shariah
Engagement BOARD OF DIRECTORS Supervisory
Council
Board
Board Board Board Board Board
Oversight Board
Audit & Nomination & Financing Strategic & Information
and Risk
Examination Remuneration Review Sustainability Technology
Engagement Committee
Committee Committee Committee Committee Committee
GROUP CHIEF EXECUTIVE OFFICER

Engagement
and
Reporting
MANAGEMENT EXECUTIVE COMMITTEES
161
CORPORATE GOVERNANCE OVERVIEW STATEMENT
SECTION A: HOW THE BOARD OPERATES

PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS
Within a framework of prudent and effective controls, the Board is collectively responsible for the overall BIMB leadership,
for promoting long-term sustainable growth, financial soundness, providing direction and oversight to the Management
of the business and operations.
The Board safeguards value-creation and plays a critical role in setting the right tone at the top. The Board ensures that
the strategic plan of the Group supports long-term value creation and includes strategies on economic, environmental,
social and governance (ESG) considerations thereby strengthening the integration of sustainability in the Group’s operations.
The Board Charter
The Board is guided by the Board Charter in discharging its duties and responsibilities effectively. The Board Charter sets
out the principles and guidelines that are to be applied by the Board. The Board Charter authorises the Board to delegate
the exercise of its powers to Board Committees. The delegation of authority as set out in the Board Charter is clear and
ensures that the line of authority is in line with the legal and regulatory requirements.
The delegation does not absolve the Directors from their duty to supervise the discharge of the delegated acts.
The Board Charter is reviewed and updated from time to time to reflect relevant changes to the policies, procedures
and processes as well as amendments to rules and regulations to ensure the document remains relevant and consistent
with the applicable rules and regulations and recommended best practices.
Aside from clearly identifying the respective roles and responsibilities of the Board, its Committees and Management
and what is expected of them in terms of commitment, the Board Charter outlines the issues and decisions reserved
for the Board.
The Board Charter and the Terms of Reference (TORs) of the Board and the Board Committees are available on BIMB’s
corporate website, www.bankislam.com.
Matters Reserved for the Board
The Board Charter and the Board of Directors’ TOR prescribe that the following matters are specifically reserved for the
Board:
Strategic policy matters; Major acquisition of capital expenditure;

Financial results and declaration of dividends; A ppointment and remuneration of Directors,
Significant operating and credit policies; Shariah Supervisory Council (SSC) members, the
Group Chief Executive Officer (Group CEO) and
Risk appetite setting;
key Senior Management officers;
Capital management plan;
Entry into any related party transaction; and
Authority limits;
Any new outsourcing proposals.
Any corporate exercise which involves acquisition
or divestment or strategic interest;
162
The Board’s 2021 Activities and Priorities
The table below shows the key areas of focus and strategic matters considered by the Board which appear as items on
the Board’s agenda at the respective meetings throughout the financial year under review.
Area of Focus
STRATEGY, FINANCIAL AND BUSINESS PERFORMANCE
Strategic Directions, Business Plan and Budget of BIMB for the next five (5) years – 2022 to 2026
Corporate Exercise proposal in relation to the internal reorganisation and the listing of BIMB
Corporate scorecards and Key Performance Indicators (KPI)
Audited financial statements for the financial year ended 31 December 2020 as well as the quarterly
and half yearly unaudited interim financial statements
Forecast for the financial year ending 31 December 2021
BIMB’s business performance based on the financial reports presented to the Board
Establishment of Dividend Reinvestment Plan post listing
Payment of final dividend for shareholder’s approval
Re-appointment of external auditors
Digitalisation initiatives
Proposals for new and review of products and services to ensure BIMB’s offering remains relevant
and competitive
Outsourcing related proposals and Outsourcing Plan for 2021
The development of Phase 2 of the IT Blue Print
RISK MANAGEMENT & COMPLIANCE
Group Risk Appetite Statement Policy 2022

Risk management related policies, credit policies and other significant operational policies which
include review of Stress Testing Policy and Authority Limit Policy
Review the implementation of Internal Capital Adequacy Assessment Process (ICAAP)
Response to BNM Composite Risk Rating 2020
Risk Management and Credit Management Dashboard
Compliance related policies which include Group Compliance Policy, Group Compliance Risk Assessment
Policy, Group Anti-Bribery Policy, Group Corruption Risk Management Policy and Group AML/CFT
Policy
Rectification Plan for Shariah Non-Compliance events
163
Area of Focus
GOVERNANCE
Harmonisation of Group Governance practices to ensure alignment of governance practices within

the Group pursuant to the listing of BIMB, where BIMB became the Bank Holding company
Board Succession Plan for the Group to ensure an effective board is in place to support the Group
strategic direction
Harmonisation of Remuneration for Directors and SSC members of the Group
Review of Nominee Directors and Principal Officers in BIMB subsidiaries in line with the harmonisation
of group governance
Board Evaluation and SSC Evaluation for 2020
Review of Board Charter and TORs of the Board and Board Committees to incorporate the Group
oversight function as well as the requirements of Bursa Malaysia and recommendations of the MCCG
2021
Adoption of new Constitution for BIMB to align with the MMLR of Bursa Malaysia following the listing
of BIMB
Corporate Governance Disclosure in BIMB Integrated Annual Report 2020
Gap Analysis on the status of compliance with the MCCG 2021 recommendations
Appointment of three (3) new Independent Non-Executive Directors (INEDs) to fill the vacancy
following the retirement and demise of existing directors
Re-designation of one (1) Non-Independent Executive Director (NIED) to Non-Independent Non-
Executive Director (NINED) and appointment of one (1) new NIED following the change in leadership
in the ultimate holding company
Appointment of one (1) new SSC member to fill potential vacancy in 2022 and re-appointment of
two (2) SSC Members
Review of the Board Committees’ composition
Review of Approval Authority Limits for Financing Committees
HUMAN CAPITAL
Review of Human Resources Policy

Continuous Development plan and succession plan
Introduction of 8 Conducts as Key Behavioural Indicator Assessment for Performance Management
Recruitment and Appointment of new Heads of Division for key positions
Renewal of contract of service of Senior Management and their remuneration
Performance review of Corporate KPIs for 2020
Annual reward for Senior Management based on their performance and KPIs
164
Key Focus Areas and Future Priorities
The Board has identified the following key areas for future priority:-
1. Effective delivery of key strategic priorities which are developed based on the six (6) strategic pillars; namely Sustainable
Prosperity, Values-based Culture, Community Empowerment, Customer Centricity, Real Economy and Digitalisation.
2. Addressing sustainability risks in an integrated and strategic manner to support BIMB’s long-term strategy.
3. Implementing effective succession planning for the NEDs and Senior Management within the Group.
4. Strengthening the Group culture and governance.
Board Leadership
An effective Board is key to the establishment and delivery of a company’s strategy. The Board therefore continually seeks
to improve its effectiveness by providing direction to the Management, demonstrating ethical stewardship and creating a
performance culture that drives value-creation among others. Through effective leadership and overall oversight of
Management, the Board ensures robust monitoring of performance and conformance capabilities in the organisation.
All Board members discharge their duties and responsibilities at all times as fiduciaries in the best interest of BIMB. They
act with integrity, led by example, exercise their powers for a proper purpose and in good faith. In directing or managing
BIMB’s business and affairs, they exercise reasonable care, skill and diligence by applying their knowledge, skill and experience.
Imperative to the Board’s oversight responsibility is its commitment to the Group’s long-term strategy and agenda for the
integration of sustainability into the Group’s corporate strategy governance and decision-making. Together with Management,
the Board takes responsibility for the governance of sustainability in the Group.
Board’s Responsibilities and Duties
The Board is entrusted with the overall governance of BIMB, the responsibility to exercise reasonable and proper care of
BIMB’s resources in the best interests of its shareholders as well as to safeguard its assets. The Board directs and oversees
the business and affairs of the Group by periodically reviewing and approving the overall strategies and significant policies
of the Group. In discharging its collective responsibilities, the Board provides BIMB with stewardship, counsel and a broad
range of expertise to the Management, champions good governance, high ethical standards and practices.
The Directors are aware of their collective and individual responsibilities to the shareholders for the manner in which the
affairs of BIMB are managed, controlled and operated. Based on the results of the Board Effectiveness Evaluation 2021, the
Board is satisfied that it has fulfilled these duties and obligations during the financial year under review.
The Board acknowledges that the long-term success of the Group and continued relevance hinge on the prosperity and
trust of the communities it serves and the well-being of the environment it operates in. This is crucial to the Board due
to the increasing impact of sustainability and the ability of the Group to create sustainable value and maintain the confidence
of its stakeholders. The Board remains committed to improving the Group’s sustainability practices beyond the minimum
regulatory requirements.
The Board has been closely monitoring the impact of COVID-19 on the global economy and the Group’s financial performance
since its onset in 2020. The pandemic presents to the Board a complex new reality that changes the governance model
which has guided the Board and Management through the years. New pressures and demands from stakeholder groups
together with the general welfare of the Group’s employees were some of the challenges the pandemic presented.
165
The key roles and responsibilities of the Board are as follows:
Oversee the implementation of BIMB’s governance framework,

risk and internal control framework, and periodically review
whether these remain appropriate and relevant
Ensure that there is an Oversee BIMB’s

appropriate succession compliance with any
plan for members of the regulatory requirements
Board and the Senior as imposed by the
Management. relevant regulatory
authorities
romote a sound corporate

P
Promote sustainability through culture within the Group which
appropriate environmental, reinforces high level of integrity
social and governance and ethical practices, prudent
considerations in the Group’s and professional behaviour and
business strategies cultivate a transparent culture
towards anti-bribery and
corruption
The above roles and responsibilities are clearly set out in the Board Charter.
Board Balance and Composition
The Board comprises eleven (11) Directors as of the date of this Statement.
An effective Board is important to the long-term prospects and strategic objectives of BIMB. This is made possible through
a strong, transparent and open working relationship between the Directors.
The Board’s size ensures that the purpose, involvement and participation of the Directors are not jeopardised and that
it achieves the correct balance to realise BIMB’s strategic objectives. Additionally, it ensures diversity and inclusiveness
in views and perspectives as well as facilitates sound decision-making and constructive deliberation during meetings.
The balance on the Board ensures that no individual or small group of Directors can dominate the decision-making
process and that the interests of the shareholders are protected.
During the financial year 2021, the Board also approved the policy on the maximum age of director, which is capped at
70 years. This is to preserve the effectiveness of a director in discharging his/her duties and responsibilities.
The Board saw changes to its composition during the financial year under review with four (4) new appointments to the
Board. The Board welcomed Dato’ Sri Amrin Awaluddin as a Non-Independent Executive Director on 10 September 2021,
Mohd Asri Awang as an Independent Non-Executive Director on 1 October 2021, Nuraini Ismail and Datuk Bazlan Osman
as Independent Non-Executive Directors on 7 January 2022.
166
During the financial year also, Zahari @ Mohd Zin Idris retired as a Non-Independent Non-Executive Director on 20
September 2021, after serving BIMB for 19 years. During his tenure with BIMB, Zahari @ Mohd Zin Idris demonstrated
his dedication and commitment in discharging his role as BIMB’s director.
It was with sadness that the Board bade farewell to Noraini Che Dan who passed away on 26 August 2021. The late
Noraini Che Dan, who joined BIMB on 1 October 2016, was a valuable member of the Board. She had served the Board
with great commitment and was a strong advocate of good governance.
Following the above new appointments, the Board now comprises as follows:
Eight (8) Independent NEDs including the Chairman;

Two (2) Non-Independent NEDs; and
One (1) Non-Independent ED.
All Board members are persons of high integrity and calibre with diverse professional backgrounds, sound knowledge
and understanding of BIMB’s business and provide a diversity of breadth in demographics, skills and experience.
Eight (8) of the NEDs, including the Chairman, are independent, in line with the requirements of the BNM CG Policy.
The Independent NEDs play a significant role in bringing objectivity and scrutiny to the Board’s deliberations and decision-
making. All Directors must exercise their judgement independently at all times, irrespective of status. Whilst there are
three (3) non-independent directors, i.e., two (2) being non-executive and one (1) an Executive Director, the two (2)
NINED were initially Independent Directors but one (1) was re-designated due to long tenure beyond nine (9) years and
the other was re-designated due to an executive position that he held and subsequently relinquished in a related company.
The NIED does not hold an executive position in BIMB. He is designated as a NIED by virtue of the Islamic Financial
Services Act 2013. Hence these NINED and NIED similarly serve the Board and play a role to ensure decisions are made
in the best interest of BIMB.
The profile of each member of the Board is presented on pages 137 to 142 of this Integrated Annual Report.
Board Committees
As part of its efforts to ensure the effective discharge of its duties, the Board has delegated certain functions to Board
Committees with their TOR. The delegation of power does not absolve the Directors from the duty to supervise the
discharge of the delegated acts. The Directors are aware that they cannot leave the management of BIMB’s affairs to
these Committees without committing a breach of duty and that they remain responsible for the exercise of such powers.
The functions and TORs of Board Committees as well as authority delegated by the Board to these Committees are
reviewed from time to time to ensure that they remain relevant and are up-to-date.
The six (6) Board Committees are as follows:
BAEC : Board Audit & Examination Committee

BRC : Board Risk Committee
BNRC : Board Nomination and Remuneration Committee
BFRC : Board Financing Review Committee
BSSC : Board Strategic & Sustainability Committee
BITC : Board Information Technology Committee
The activities of the BAEC, BRC, BNRC, BFRC, BSSC and BITC during the financial year under review can be found in the
CG Report.
167
Board Diversity The oversight of the overall composition of the Board and
Board Committees resides within the BNRC. The BNRC is
The Board recognises the importance of diversity and
guided by the following criteria when assessing the suitability
inclusivity and hence will continue to leverage differences
of Directors for nomination:
in thought, perspective, knowledge, skill, regional and industry
experience and gender, to ensure that BIMB retains its

Appropriate size and the balance between INEDs and
competitive advantage.
NINEDs

Skills, background and experience
Diversity is equally important to ensure BIMB remains

Diversity
relevant, resilient and sustainable in the evolving and
competitive business environment.
The BNRC is empowered to review and evaluate the
composition and performance of the Board annually, as
The Board currently has two (2) women Directors or 18% of
well as to assess qualified candidates to occupy Board
the total Board composition. The Board is committed to
positions.
bringing the number of women directors close to 30% of
the total Board composition by 2023 to meet the MCCG
The following diagram provides an overview of the Board’s
2021 recommendation.
diversity in terms of independence, gender, age, tenure
and skills/expertise and composition:
COMPOSITION GENDER DIVERSITY AGE DIVERSITY
Non-
Independent Female 61 to 70
Director 18% years
27% 45%
Male 50 to 60
Independent 82% years
Director 55%
73%
Non- Male Female
8 3 9 2 6 5
Independent 50 to 60 61 to 70
Independent
Director years years
Director
BOARD TENURE BOARD SKILLS/AREA OF EXPERTISE

Above 11
9 years Legal (9%)
9% Banking (27%)
Risk Management (36%)
3 to 9 Treasury (18%)
years Accounting, Audit & Tax
Less 27%
5 5 (45%)
than
3 years 4 Economy & Finance (45%)
64% 3
Information Technology/
2 Digitalisation (9%)
Less than 3 to 9 Above 1 1
Management, Leadership &
3 years years 9 years
Strategy (100%)
7 3 1
168
The BNRC’s 2021 Activities
The BNRC consists of a majority INEDs and was chaired by Noraini Che Dan who is an INED, until her demise on 26
August 2021. Thereafter, Dato’ Sri Khazali Ahmad, who is an INED assumed the role of the BNRC Chairman. The BNRC
assists the Board in the process of nomination, remuneration and succession plan of the Board, Board Committees, SSC,
the Group CEO and key Senior Management personnel of BIMB. The BNRC also provides oversight on the Group succession
plan and appointment of directors and CEO of BIMB subsidiaries. The detailed roles and responsibilities of the BNRC are
set out in its TOR, which was last reviewed on 5 October 2021 and is available on the Company’s website at www.
bankislam.com.
The BNRC composition and the members’ meeting attendance can be found in the CG Report.
Among the key activities of the BNRC during the financial year 2021 include the following:
Board Composition and Appointment of Directors and Appointment and Succession

Succession Plan SSC Member Planning for Senior Management
R e v i e w e d t h e B o a r d Assessed the fit and proper Reviewed the succession plan

succes sion plan of BIMB status of potential candidates framework and potential
taking into consideration the for appointments on the Board successor for key critical
size of the Board composition, of BIMB and the Board of its senior positions in BIMB
the number of women subsidiaries Reviewed the suitability of
directors and the maximum Conduc ted engagement potential candidates for the
age of directors sessions to assess the appointment of key senior
R e v i e w e d t h e B o a r d suitability of potential positions in BIMB
succession plan for the Group candidates to be appointed to Reviewed the proposals to
taking into consideration the the Board of BIMB and the renew the contract of
existing skillsets and tenure Board of its subsidiaries employment of the Group
of the INED Assessed the fit and proper CEO and the Senior Officers
R e v i e w e d t h e B o a r d status of a potential candidate Reviewed the development
Committees’ composition for appointment as the SSC plan for individuals identified
Reviewed the Nominee member of BIMB for the Senior Management
Direc tors and Principal Considered the re-appointment succes sion plan and the
Officers in BIMB subsidiaries of SSC members of BIMB Group CEO
Remuneration & Benefits Board and SSC Evaluation Performance Management
R e v i e w e d t h e H u m a n Reviewed the results of the Board R ev iewe d th e Co rp o r ate

Resources Policy which covers Evaluation exercise for FY2020 Scorecard for 2020
the employees’ benefits and and FY2021 and recommended Reviewed and recommended
code of conduct the proposed action items for to the Board the introduction
Reviewed and recommended improvement of 8 Conduc t s as Key
Reviewed the results of the SSC Behavioural Indicator
the bonus payout and salary
Evaluation exercise for FY2020 Assessment for Performance
increment for the employees
and FY2021 and recommended Management
the proposed action items for Reviewed performance
improvement appraisal for 2020 on the
Reviewed the action plans arising d i v i s i o n a n d b a n k- w i d e
from the Board engagement performance as well as the
sessions individual Head of Division.
169
Board Commitment The Chairman is primarily responsible for the stewardship

and smooth functioning of the Board and the fulfilment of
The Board commits itself and its Directors to ethical and
its obligations to BIMB. In fulfilling this role, the Chairman
lawful conduct, including proper use of authority and must:-
appropriate decorum when acting as Board members. The
Board is of the view that the provisions of the Companies
Act 2016 are adequate to ensure commitment by the
Directors to perform their duties responsibly and that each Ensures appropriate procedures are in place
Director is able to commit his/her time sufficiently to the to govern the Board’s operation, decisions
Company. are taken on a sound and well-informed
basis including discussions on all strategic
The Board Charter stipulates that the maximum number and critical issues;
Leads the Board to achieve the key
of external professional commitments of each Director must
objectives;
not exceed ten (10), of which the number of directorships
Encourages healthy discussion and ensure
in listed companies should not exceed five (5) unless with
that dissenting views can be freely expressed
prior approval of the Board. As of the date of this report, and discussed; and
all Directors have complied with these requirements and Leads efforts to address the Board’s
the Board is satisfied that the total number of professional development needs.
commitments held by the Directors have not impaired their
ability or judgement in discharging their roles and
responsibilities.
The Chairman will have an annual one-to-one engagement
The Directors’ commitment in discharging their duties and session with each Director to solicit their views and
responsibilities is further reflected by their attendance at suggestions for improvement and effectiveness of the Board
meetings of the Board and Board Committees held during and generally the sustainability and growth of BIMB’s
the financial year under review. The Board is satisfied with business.
the level of commitment given by the Directors towards
fulfilling their roles and responsibilities. The Group CEO is responsible for the overall operations of
BIMB’s business, its day-to-day management, organisational
Separate roles of Chairman and Group Chief Executive effectiveness and the implementation of BIMB’s policies
Officer (Group CEO) and strategies.
The Board is helmed by Tan Sri Dr. Ismail Haji Bakar, who Key roles and responsibilities of the Group CEO include:
is an INED. The Board delegates responsibility for the overall
business and day-to-day management of BIMB to the Group
CEO, Mohd Muazzam Mohamed. The roles and responsibilities
of the Chairman and the Group CEO are separated by a Develops, formulates, implements and
clear division of responsibilities which are defined and oversees BIMB’s long-term strategy,
approved by the Board in line with best practices to ensure strategic direction, corporate policies and
the appropriate supervision of management. The clear business plan;
hierarchical structure with its focused approach facilitates Ensures that the Board’s decisions are
efficiency and expedites informed decision-making. implemented and the Board’s decisions
are responded to;
The Chairman does not sit on any Board Committees. Ensures that the Board is fully informed
of all important aspects of BIMB’s operations
and sufficient information is provided to
the Board members; and
Provides strong leadership and effectively
communicates BIMB’s vision and
management strategies to the employees.
The respective roles and responsibilities of the Chairman

and Group CEO can be viewed under the Board Charter
on BIMB’s website, www.bankislam.com.
170
Separation of Powers between the Board and Management In line with the recommendation of the MCCG 2021, BIMB
has adopted a tenure policy whereby an INED’s total tenure
The Group CEO is assisted by various management executive
on the Board is capped at nine (9) years. The Board may
committees which include the Management Committee,
decide to retain a member as an INED beyond the nine (9)
Management Risk Control Committee and Asset & Liability
years, subject to the approval of the shareholders and BNM.
Management Committee in managing the business of BIMB
on a day-to-day basis.
During the financial year under review, all INEDs had declared
and affirmed their independence. Each INED has also an
The management executive committees ensure that effective
ongoing obligation to inform the Board of any circumstances
systems, controls and resources are in place to execute
which could impair his or her independence.
business strategies and decisions taken by the Board and/
or the Group CEO.
Appointment of new Directors
Board Independence In considering new appointments to the Board, the Board

through the BNRC, takes into account corporate leadership
The INEDs play a significant role in bringing objectivity and
skills, experience and expertise required to advance the
scrutiny to the Board’s deliberations and decision-making.
strategic direction of BIMB. Consideration is given to the
current composition of the Board and the tenure of each
The Board acknowledges the important contributions that
Director on the Board to determine whether there is a need
INEDs make to good corporate governance. All Directors,
to bring new skills and perspectives to the board as well
regardless of their independent status, are required to act
as whether the Director can act independently of Management.
in the best interests of BIMB and to exercise unfettered
The BNRC ensures that the Board has the right balance of
and independent judgement. To date, all eight (8) INEDs
skills, experience, independence and business knowledge
satisfy the following criteria:
necessary to discharge its responsibilities in keeping with
the highest standards of governance while providing
a) ability to act independently in character and judgement
meaningful contributions to the business of BIMB.
and free from any association or circumstances that may
interfere with or impair his/her independent judgement
BIMB maintains a formal and transparent procedure for the
or the ability to act in the best interests of BIMB;
appointment of new Directors. The search for potential
b) tenure of not more than nine (9) years; and
NEDs may also be made through the engagement of an
c) not involved in any significant business or contractual
independent recruitment firm or recommendations from
relationship with a value of above RM1.0 million.
existing Board members or Management and through
external sources such as the Directors’ Register by FIDE
The assessment of the independence of INEDs is undertaken
FORUM, BNM and PIDM in identifying suitably qualified
in the following circumstances:
candidates to fill the vacant positions.
Prior to the appointment of NEDs

In its selection of suitable candidates, the BNRC determines
The independence of each candidate is reviewed and whether the candidates satisfy the requisite skills and core
determined by the Board based on the recommendation competencies in accordance with BIMB’s Policy on Fit and
of the BNRC. Proper Criteria, BNM CG Policy, MMLR of Bursa Malaysia,
Annual review MCCG 2021 and BNM’s Policy Document on Fit and Proper
Criteria. Once a potential candidate has been shortlisted
Every INED has to provide an annual declaration to for a recommendation, the Company Secretary will conduct
confirm the status of his/her independence. comprehensive background checks, including checks on
Notice of change in circumstances financial and character integrity.
Every INED has an obligation to notify the BNRC of any

change in circumstances that may affect his/her
independence status. Once the notification is given, the
Board reviews and determines the INED’s independence
status based on the recommendation of the BNRC.
171
All potential candidates are first considered by the BNRC, Succession Planning
taking into account the mix of skills, competencies, experience,
The Board has a Board succession plan to assist them in
integrity, personal attributes and time commitment required particular, the BNRC, in ensuring the orderly identification
to effectively discharge his or her role as a director. The and selection of new NEDs in the event of an opening on
BNRC will have an interview session with the candidate to the Board, whether such opening exists by reason of an
gauge the suitability of the candidate before making a anticipated retirement, an unanticipated departure, the
recommendation to the Board. Following selection by the expansion of the size of the Board, or otherwise. Such a
Board, an application for the proposed appointment as a structured succession plan addresses the composition and
Director is submitted to BNM for approval and the term of effectiveness of the Board. In addition to the succession
appointment shall be as specified by BNM. plan for Directors, the BNRC also oversees the appointment
and succession planning for key Senior Management of
BIMB.
Directors’ Re-appointment and Re-election
The BNRC is responsible for assessing the performance of During the financial year under review, the Board has also
Directors whose current term of appointment as approved reviewed the Board Succession Plan for the Group as part
by BNM is due to expire and for forwarding its recommendation of the group harmonisation initiatives. This exercise was
to the Board for the decision to submit the application to carried out to ensure that an effective Board is put in place
at all subsidiaries to support the Group’s strategic direction.
BNM on the proposed re-appointment of the respective
Directors.
Board Meetings and Attendance
In assessing the candidates’ eligibility for re-appointment, The Board schedules its meetings at least six (6) times a
the BNRC considers their competencies, commitment, year. Additional meetings are held to discuss specific issues
contribution and performance based on the Board that require deliberation in between the scheduled meetings.
The Board may also consider and approve matters via
Effectiveness Evaluation (BEE) and their ability to act in the
written resolutions. All Directors’ written resolutions passed
best interest of BIMB. Following the Board’s approval, a
by the Board are tabled at the next Board meeting for
submission is made to BNM for approval three (3) months notation.
prior to the expiry of the Director’s tenure.
The meetings of the Board and its Committees for the
In accordance with Article 133 of BIMB’s Constitution, one- financial year 2021 were pre-scheduled at the end of 2020
third of the Directors for the time being shall retire by to facilitate the Directors in planning ahead and ensure full
rotation at an Annual General Meeting (AGM) of BIMB attendance of the Board meetings.
provided always that all Directors, shall retire from office at
least once in every three (3) years but shall be eligible for The Board ensures that key transactions or critical decisions
re-election at the AGM. A Director retiring at the AGM shall are deliberated and decided by the Board in a meeting.
The Board also ensures that decisions, including any
retain office until the close of the meeting whether adjourned
dissenting views, are made known and properly minuted.
or not. According to Article 142 of BIMB’s Constitution and
The Board practices active and open discussions at Board
the Companies Act 2016, Directors appointed to fill a casual meetings to ensure that opportunities are given to all
vacancy or as an addition to the Board of Directors shall Directors to participate and contribute to the decision-
hold office only until the conclusion of the next AGM and making process. Robust discussions and vigorous deliberations
shall be eligible for re-election. at Board and Board Committee meetings ensure that
constructive and healthy dialogues are satisfactorily achieved
For the forthcoming AGM, the Board has agreed for Datuk and quality decision making.
Nik Mohd Hasyudeen Yusoff and Mohd Yuzaidi Mohd Yusoff
to be considered for re-election pursuant to Article 133 of Due to the COVID-19 crisis, all the Board and Board Committee
BIMB’s Constitution. Meanwhile, Dato’ Sri Amrin Awaluddin, meetings were conducted online during the financial year
under review. The papers of the Board meetings are
Mohd Asri Awang, Nuraini Ismail and Datuk Bazlan Osman
disseminated via an online platform and accessed via the
will be considered for re-election pursuant to Article 142 of
devices provided to the Directors. Although the minimum
BIMB’s Constitution. These Directors have given their consent quorum for a Board meeting is 50% of the total number of
for the re-election. directors, all directors (save for Noraini Che Dan) have
recorded 100% attendance for all Board and Board Committees
meetings in 2021.
172
All proceedings of the Board meetings are duly recorded in the minutes of meeting and the signed minutes of each
Board meeting are properly kept by the Company Secretary. The minutes of each Board meeting are circulated in a
timely manner to all Directors for their perusal prior to the minutes being tabled for confirmation at the next Board
meeting.
In ensuring the transparency and integrity of decision-making, Directors are required to immediately declare if they have
any interest in transactions that are to be entered into directly or indirectly with BIMB. They must disclose the extent
and nature of their interest at a Board meeting or as soon as practicable after they become aware of the conflict of
interest. They must abstain from participating in the deliberation and Board decision on the matter as he/she is an
interested parties.
Directors are also required to declare their interest annually in line with the requirements on the disclosure of Director’s
interest in BIMB’s Audited Financial Statements.
The Chairman of the SSC attends the Board meeting as a permanent invitee to facilitate and assist the Board when
deliberating issues relating to Shariah. Meanwhile, the Group CEO also attends the Board meeting as a permanent invitee
and if required, relevant members of the Senior Management and external advisers are invited to attend the Board
meetings to report and advise the Board on matters pertinent to their respective areas of responsibility.
In the event a Director is unable to attend a meeting, his/her views are sought in advance and put to the meeting to
facilitate a comprehensive discussion. Essentially, each Director, therefore, makes himself/herself available to fellow Directors
and may contribute to all major decisions that the Board has to make.
BOARD BAEC
Number of Total Average Number of Total Average

meetings Meeting Time Spent meetings Meeting Time Spent
in 2021 Hours on Each in 2021 Hours on Each
Meeting Meeting
14 36.6 2.6 8 25.7 3.2
hours hours hours hours
BRC BNRC

Meeting Meeting
13 50.3
hours
3.9 9 11.6
hours
1.3
hours hours
BFRC BSSC

Meeting Meeting
14 22.9
hours
1.6 11 34.7
hours
3.2
hours hours
173
BITC TOTAL BOARD AND BOARD COMMITTEES
Number of Total Average Total Board Total Average

Meetings Meeting Time Spent & Board Meeting Time Spent
in 2021 Hours on Each Committees Hours on Each
Meeting Meetings Meeting
7 18.5 2.6 in 2021 200.3 2.6
hours hours hours hours
76
All Directors complied with the minimum attendance requirement of at least 75% of Board and Board
Committees’ meetings held during the financial year under review pursuant to the BNM CG Policy.
The Board is satisfied with the level of commitment given The Board believes that the ESG agenda is critical to our
by the Directors during the financial year under review brand marketability as investors and stakeholders have
towards fulfilling their roles and responsibilities. This is become insistent that ESG practices are subsumed into an
reflected in the 2021 Board Effectiveness Evaluation results organisation’s investment decision-making process. The
as disclosed in the CG Report. Board together with Management takes the responsibility
for the governance of sustainability in BIMB. Performance
The composition of the Board and Board Committees and against sustainability strategies, priorities and targets are
the meeting attendance of each member can be found in communicated to the BIMB’s external and internal
the CG Report. stakeholders. The Board has designated senior personnel
who is tasked with managing the Group’s sustainability
Directors’ Indemnity governance and integrating sustainability considerations
into our operations.
BIMB continues to provide and maintain indemnification
for its Directors throughout the financial year as allowed
The Board will take into account BIMB’s performance in
under the Companies Act 2016 to the extent it is insurable
managing material sustainability risks and opportunities
under the Directors’ and Officers’ Liability Insurance (D&O).
when determining the appropriate level of remuneration
Directors and Officers are indemnified against any liability
for Directors and Senior Management. The Board will also
incurred by them in discharging their duties while holding
ensure that performance evaluations of the Board and
office as Directors and Officers of BIMB.
Senior Management will include a review of their performance
in addressing BIMB’s material matters, including the risks
Sustainability Commitment
and opportunities.
BIMB has in place a Sustainability Governance Framework
which defines the roles and responsibilities of the Board Our sustainability agenda aims to make us more resilient
and Management in fulfilling the Group’s responsibility to to disruptions, flexible to change and accountable to the
ensure that sustainability-related risks are effectively identified, ‘triple bottom line’ principle of benefitting the People and
assessed and managed in a timely manner, while enhancing Planet while ensuring Prosperity for all stakeholders. We view
transparency through disclosures and reporting to promote sustainability as an ongoing journey where the Group is
accountability. committed to continuously delivering value to its stakeholders.
The Board acknowledges that BIMB’s long-term success Professional Development and Continuous Education for
and continued relevance are dependent on the prosperity Directors
and trust of the communities we serve and the environment All new Directors appointed to the Board receive a
we operate in. Our financial outcomes are inexorably linked comprehensive induction programme with the Management,
to our ability to manage ESG risks and opportunities. covering key areas of the business and operations, including
among others, an overview of BIMB’s financial risk
management processes, its strategies, business segments,
the internal audit function, innovation and technology and
174
the corporate governance structure within BIMB and key The Company Secretary ensures that discussions and
risks. The induction programme will take about 20 hours deliberations at the Board and Board Committee meetings
(five (5) sessions) and it provides the opportunity for the are well documented and subsequently communicated to
newly onboarded Director to be familiar with the business, the relevant Management for appropriate actions. The Board
operations, governance, culture and strategic direction of is satisfied with the performance and support rendered by
BIMB. This helps to facilitate the Director to contribute to the Company Secretary to the Board in discharging their
the Board and BIMB in general in an effective manner. functions in the financial year under review. This is reflected
in the outcome of the 2021 BEE which is disclosed in the
The Board recognises the importance of ensuring that CG Report.
Directors are continuously being developed to acquire or
enhance the requisite knowledge and skills to discharge The Company Secretary constantly keeps herself abreast
their duties effectively. Similarly, Directors acknowledge the with the evolving regulatory changes and developments in
importance and value of attending conferences, training corporate governance through continuous training. List of
programmes and seminars to keep themselves abreast with trainings attended by the Company Secretary in 2021 can
the development and changes in the industry in which be found in the CG Report.
BIMB operates, as well as to update themselves on new
legislative and regulatory requirements. Board Effectiveness Evaluation
The Group conducts an annual BEE to assess the objective

All directors are required to complete a core training programme
of assessing the performance of the Board as a whole, Board
under the Financial Institutions Directors’ Education Program
Committees, members of the Board and Board Committees
(FIDE Forum), Mandatory Accreditation Programme (MAP)
as well as identifying any gaps or areas of improvement,
pursuant to MMLR and Islamic Finance for Board of Directors
where required.
under the International Shari’ah Research Academy (ISRA)
within two (2) years upon their appointment to the Board. In
Under the purview of the BNRC, a formal evaluation is
addition, each director is required to complete their Individual
undertaken to assess the effectiveness of the following:
Development Plan (IDP) which consists of a minimum of three
(3) training on technical knowledge and one (1) training on (a) The Board as a whole and the Board Committees;
leadership/soft skills. (b) Contribution of each individual Director; and
(c) Independence of Independent Directors.
During the financial year under review, the Directors attended
and participated in seminars, conferences and workshops The BEE for year 2021 was conducted internally and focused
that covered areas of corporate governance, leadership, ESG, on maximising the effectiveness and performance of the
Shariah, anti-money laundering/counter financing terrorism Board and Board Committees in the best interests of BIMB.
(AML/CFT), relevant industry updates and global business The BEE also assessed the fitness and properness, contribution
developments. Most of these training programmes were and performance, calibre and personality of the Directors.
conducted virtually. A list of training attended by the Directors The BEE for year 2021 also took into consideration evaluation
in 2021 can be found in the CG Report. made by some Senior Management. Results of the 2021
BEE can be found in the CG Report.
The BNRC will review the training and development needs
of the Directors on an annual basis, taking into consideration Going forward, the Board may engage an independent
the Group’s strategy for the next several years and the expert/consultant to assess the performance of the Board,
current combined skills on the Board. During the period for greater objectivity.
under review, all Directors (save for newly appointed directors)
have fulfilled their IDP as well as the mandatory training. The Board, through the BNRC reviewed the results of the
2021 BEE and was satisfied with the overall conduct of the
Qualified and Competent Company Secretary Board and Board Committees, participation by the members,
the effectiveness of the Chairman of the Board and Board
The Company Secretary, Maria Mat Said, is qualified to act
Committees as well as the performance of the INEDs.
as a company secretary in accordance with Section 235 of
the Companies Act 2016. The Company Secretary has 23
Pursuant to the feedback from the BEE, the Management
years of experience in handling corporate secretarial and
legal matters. The Company Secretary acts as an advisor to also arranged for a one-to-one engagement session between
the Board, particularly with regard to BIMB’s Constitution, the Chairman and individual Board members, with the
policies and procedures and its compliance with regulatory presence of the Group CEO and the Company Secretary.
requirements, codes, guidelines and legislations. The outcome from this session was presented to the Board
together with the action plans.
175
Directors’ Remuneration
BIMB’s remuneration structure for Directors which is aligned with our strategic objectives, allows us to attract, motivate
and retain high calibre talent. The design of our fees architecture complies with regulatory requirements, and embraces
market practices and trends.
The Board has established a formal and transparent Directors’ Remuneration Framework which comprises directors’ fees,
sitting fees and benefits-in-kind. A review of the Directors’ remuneration is carried out every three (3) years to ensure
that it remains relevant and competitive with the industry. During the period under review, there was no revision to the
Directors’ remuneration of BIMB. The remuneration framework for the NEDs is as follows:-
TOTAL AMOUNT OF DIRECTORS’ FEES (PER ANNUM) (RM)

BOARD BRC BAEC BNRC BFRC
Chairman 144,000.00 90,000.00 48,000.00 18,000.00 24,000.00
Member 72,000.00 72,000.00 36,000.00 12,000.00 18,000.00
SITTING FEES (PER MEETING) (RM)
Chairman Member
5,000.00 3,000.00
OTHER EMOLUMENTS (PER ANNUM) (RM)
Allowance Medical Leave Passage
Chairman 120,000.00 18,000.00 30,000.00
Member 24,000.00* 18,000.00 25,000.00
*only for Senior INED
Details of Directors’ remuneration during the year under review are as follows:
Directors’ Other Benefits-in-

Fees Emoluments5 kind6 Total
Non-Executive Directors (RM) (RM) (RM) (RM)
Tan Sri Dr. Ismail Haji Bakar 144,000.00 195,000.00 20,833.00 359,833.00
Azizan Ahmad 198,000.00 200,000.00 75,000.00 473,000.00
Mohamed Ridza Mohamed Abdulla 108,000.00 140,000.00 50,000.00 298,000.00
Datuk Nik Mohd Hasyudeen Yusoff 130,000.00 136,000.00 25,000.00 291,000.00
Dato’ Sri Khazali Ahmad 114,000.00 105,000.00 65,000.00 284,000.00
Mohd Yuzaidi Mohd Yusoff 184,000.00 190,000.00 89,413.00 463,413.00
Mashitah Haji Osman 156,000.00 168,000.00 35,000.00 359,000.00
Dato’ Sri Amrin Awaluddin1 24,000.00 15,000.00 – 39,000.00
Mohd Asri Awang 2
36,000.00 27,000.00 25,000.00 88,000.00
Zahari @ Mohd Zin Idris3 162,000.00 180,000.00 134,793.00 476,793.00
Noraini Che Dan4 140,000.00 124,000.00 100,000.00 364,000.00
TOTAL 1,396,000.00 1,480,000.00 620,039.00 3,496,039.00
Notes:
1 Appointed as NIED on 10 September 2021
2 Appointed as INED on 1 October 2021
3 Retired as NINED on 20 September 2021
4 Deceased as INED on 26 August 2021
5 Other Emoluments include Sitting Fees and Vehicle Allowance for Chairman
6 Benefits-in-kind include token of appreciation, leave passage and farewell gift.
The remuneration received by the Directors in the financial year 2021 at the Group level can be found in Note 32 on
page 305 of BIMB’s Financial Statements.
176
Remuneration Policy for Senior Management Team (SMTs) and Material Risk Takers (MRTs)
The Board is of the view that the disclosure of the remuneration of the top five (5) Senior Management on a named
basis in bands of RM50,000 as required under Practice 8.2 of MCCG 2021 is not in BIMB’s best interest considering the
competitive market for talent in the industry. The top five (5) remuneration of SMTs and MRTs (including the Group CEO)
during the financial year 2021 falling within the following bands are as follows:
Bands (RM) – Total Remuneration

(Basic salary, fixed allowances and bonus) No of SMTs and MRTs (Top 5)
1,000,001 up to 1,250,000 3
1,250,001 up to 1,500,000 1
1,500,001 and above 1
The remuneration policy for SMTs/MRTs applies to all SMTs and MRTs within BIMB promotes transparent and adequate
remuneration. The Policy sets forth appropriate governance around the Total Rewards of BIMB’s SMTs/MRTs for their
contributions to BIMB, taking into account their roles and responsibilities from the perspective of performance excellence,
risk management, compliance and sustainability.
Components of Remuneration
Remuneration Component Approach

Basic wage paid to an employee as a guarantee for
Base Salary
service/work rendered to the company.
Guaranteed cash paid under various classifications to

Fixed Allowance(s)
compensate for miscellaneous job-related expenses.
Non-wage remuneration provided in addition to other

Benefits
cash compensation.
Annual non-guaranteed, performance-based cash

Variable Pay
payments/bonus and profit sharing awards.
Rewards system designed to enhance individual long-

Long-Term Incentive
term performance by providing rewards tied to BIMB’s
annual performance and/or growth.
177
Deferred Cash Mechanism & Pool Setting Approach
Mechanism Approach
Total Cash Benchmark Variable Pay in the form of Performance Bonus or equivalent Short-Term Incentive
may be awarded to BIMB’s SMTs/MRTs as compensation for driving superior
performance throughout the performance year or term of employment (Full-
Term Contract or otherwise gainfully employed).
Determination of Amount Deferred The deferment of payment of a portion of variable pay will be adopted in view
of managing any financial risk associated with SMTs/MRTs compensation, while
adhering to necessary compliance with legislations set forth by BNM.
Pool Setting Approach Funding of the BIMB’s determined Variable Pay and the subsequent Cash Deferral
for the SMTs/MRTs, where applicable, is simulated taking into account market
competitiveness, funding rates and overall affordability.
Mandatory deferral – Bonuses (short-term incentives) can be deferred over time subject to forfeiture or adjustment.
Bonus Malus – Refers to the part of the deferred bonus that has not yet been paid out and can be ‘reclaimed’ because,
for example, an acquisition’s due diligence is not carried out thoroughly.
Clawback – This is applied to a bonus that has already been paid out. It can be reclaimed by the employer in, for example,
cases of gross negligence or non-compliance.
The breakdown of the total amount of remuneration awards in respect of SMTs and MRTs (including the Group CEO) in
2021 is as follows:
Element No of SMTs and MRTs Total Amount

Basic Salary, Fixed Allowance & Bonus 39 RM30.31 million
Benefits-in-Kind and Other Emolument 39 RM6.25 million
Percentage Fixed vs Percentage Variable
29.18% Fixed Remuneration
70.82% Variable income (Bonus)
178
PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT Whilst it is not possible to completely eliminate risks of
failure in achieving the Group’s objectives, the system of
The Board is responsible for determining both the nature
internal controls is designed to mitigate these risks by
and extent of the Group’s risk management and internal
identifying, managing and controlling risks, including
control framework to ensure the Group remains resilient
operational risks.
and sustainable. The Board Audit & Examination Committee
and the Board Risk Committee assist the Board in discharging
Board Risk Committee (BRC)
these duties.
The Board has established an effective risk management
Accountability and Audit and internal control framework within the Group. The BRC
and the Management Risk Control Committee (MRCC) are
The Board is committed to providing a fair and objective
responsible for ensuring the adequacy and effectiveness of
assessment of the financial position and prospects of BIMB
the Group’s risk management framework and policies. The
in the quarterly financial results, annual financial statements,
BRC is established by the Board and comprises five (5)
Annual Reports and all other reports or statements to
members, four (4) of whom are INEDs. The BRC is chaired
shareholders, investors and applicable regulatory authorities.
by Azizan Ahmad, who is an INED. Two (2) members of the
SSC of BIMB also attend the BRC as permanent invitees.
Board Audit & Examination Committee (BAEC)
The BAEC is established by the Board and comprises five The BRC assists the Board in meeting the expectations on
(5) members, a majority of whom are INEDs. The Chairman risk management as set out by BNM and oversees the
of the BAEC is Datuk Bazlan Osman, who is appointed by Management activities in managing the various risks the
the Board and is not the Chairman of the Board. Group is subjected to and ensuring the effectiveness of the
risk management process. Further details on BRC’s key
None of the BAEC members is a former key audit partner. activities during the financial year 2021 can be found in the
CG Report.
Collectively, the BAEC members have a wide range of
relevant skills, knowledge and industry experience in The Statement on Risk Management and Internal Control
discharging their duties. They provide sound advice to the provides an overview of the Group’s risk management and
Board on financial reporting, internal audits and the state internal control framework as well as the adequacy and
of the Group’s risk and internal control environment. effectiveness of the framework. Further details can be found
on pages 193 to 208 of this Integrated Annual Report.
The BAEC also assists the Board, among others, to oversee
the Group’s external and internal audit functions, and the
relevant procedures to ensure compliance with the MMLR PRINCIPLE C: BOARD INTEGRITY IN CORPORATE REPORTING
of Bursa Malaysia. AND MEANINGFUL RELATIONSHIPS WITH STAKEHOLDERS
Communicating effectively with Stakeholders
Further details on the BAEC, its key activities and focus
areas during the financial year under review are set out BIMB acknowledges the importance of conducting effective
under the BAEC Report on pages 187 to 192 of this Integrated and open communication with stakeholders to improve
Annual Report. disclosure and transparency.
Risk Management and Internal Control Framework The corporate website provides easy access to comprehensive
and updated information on BIMB.
The Board acknowledges its responsibility to maintain a
sound risk management and internal control system to
As a listed issuer, the focus of BIMB’s engagement efforts
manage and mitigate significant risks across the Group.
will be on building confidence and maintaining strong
transparent relationships with the investing community.
To this end, the Board continues to be involved in determining
This is done via the corporate website, half yearly briefings
the Group’s level of risk appetite and identifying, assessing
as well as other regular engagements and general meetings.
and monitoring key risks to safeguard shareholders’
investments and the Group’s assets in a manner that enables
the Group to meet its strategic objectives.
For this purpose, the Board has established governance

and processes for reviewing the effectiveness, adequacy
and integrity of the Group’s internal controls and risk
management.
179
General Meetings Authority
The Board ensures that shareholders are given sufficient The SSC has the authority to do the following:
notice to consider resolutions that will be discussed and
decided at the General Meetings. The General Meeting
notice includes details of the resolutions proposed along
with any relevant information and reports. Upon its listing Decide on Shariah related matters referred
in October 2021, BIMB held its first Extraordinary General to the SSC by taking into consideration of
Meeting (EGM) as a listed company on 19 November 2021. the published rulings of the Shariah Advisory
The EGM was held fully virtual as per the Guidance and Council (SAC) of BNM. In the event where
FAQs on the Conduct of General Meetings for Listed Issuers the decision given by the SSC is different
issued by the Securities Commission. from the ruling given by the SAC, the
rulings of the SAC shall prevail. However,
The Chairman of the EGM provided fair opportunity and the SSC is allowed to adopt a more stringent
time to all shareholders to exercise their rights to raise Shariah decision;
questions and make recommendations. The proceedings of
the EGM were recorded in the minutes of the meeting and Decide on Shariah related matters referred
made available on BIMB’s website at www.bankislam.com. to the SSC without undue influence that
would hamper the SSC from exercising
objective judgment in deliberating issues
THE SHARIAH SUPERVISORY COUNCIL (SSC) brought before them;
The SSC forms an important part of the governance structure Ensure that decisions made by the SSC
of BIMB, and functionally reports to the Board. are duly observed and implemented by
BIMB. Decisions made by the SSC should
Composition not be set aside or modified without its
consent;
The SSC has five (5) members until 31 December 2021, in
compliance with the requirement of paragraph 13.2 of the Access to accurate, timely and complete
Shariah Governance Policy Document (SGPD) which requires information from the Management
an Islamic financial institution to have at least five (5) including but not limited to all relevant
members. records, transactions, or manuals as required
by them in performing their duties. If the
Members of the SSC have diverse backgrounds, experience information provided is insufficient, the
and knowledge. Each SSC member is an expert in his/her SSC may request for additional information
respective specialised field such as Islamic law, Islamic which shall be duly provided by BIMB; and
banking, capital market, takaful, waqf, zakat, fatwa, halal Inform the Board of any case that the SSC
industry etc. Their qualification in Islamic jurisprudence (usul has reason to believe that BIMB has been
al-fiqh) and Islamic commercial laws (fiqh al-mu’amalat), carrying on Shariah non-compliant activities
expertise and vast experience in the academia as well as and to recommend suitable measures to
in the industry support the depth and breadth of the SSC rectify the situation. In cases where Shariah
deliberations on Shariah related matters. non-compliant activities are not effectively
or adequately addressed or no rectification
Duties and Responsibilities measures are made by BIMB, the SSC shall
In addition to the Board’s oversight accountability on Shariah inform BNM of the fact. In this case, the
compliance, the SSC was established to perform an oversight SSC will not be regarded as breaching the
role on all Shariah matters and to advise BIMB in ensuring confidentiality and secrecy code if the
its business affairs and activities comply with Shariah. The confidential information is disclosed to
SSC’s primary duties and responsibilities are outlined in the BNM in good faith.
Charter and Terms of Reference which are available on
www.bankislam.com.
180
Code of Conduct
In accordance with its Code of Conduct, SSC members are expected to possess good character, competence, diligence
and capability of making sound judgment. To ensure the quality and consistency of the decisions, the SSC has formulated
the Methodology and Means of Decision Making to arrive to a decision on a given issue by applying the usul fiqh discipline
and making reference to Shariah standards, fatwa and resolutions of Shariah authority councils and fiqh academies. It
also enables the SSC and BIMB to review previous decisions at the request of BIMB or on its own initiative.
Responsibilities of BIMB Towards Shariah Compliance
The Management works with the SSC to ensure that all business activities, products, services and operations of BIMB
are in compliance with Shariah rules and principles. While the SSC is responsible for forming and expressing decisions
on BIMB’s compliance with Shariah, the ultimate responsibility for compliance rests with the Management. Therefore, it
is the responsibility of BIMB to perform including but not limited to the following:
establish a management structure and reporting arrangement that provides a clear scope of accountability
between the business lines and the internal control functions that are involved in managing Shariah
non-compliance risks, including the accountability of the senior officer’s leading Shariah related functions;
implement effective Shariah governance policies, procedures and practices;
implement the rulings of the SAC of BNM and the decision or advice of the SSC;
implement an effective communication policy that supports a sound understanding of Shariah matters
across BIMB;
conduct regular assessment to evaluate the quality of operational support provided to the SSC and
address any inadequacies arising thereof; and
report to the Board and SSC on a timely basis any potential or actual Shariah non-compliance events.
Appointment and Re-Appointment of Members
The Board, on the recommendation of the BNRC, decides on the appointment and re-appointment of the SSC members,
subject to BNM’s written approval. The Board ensures that the SSC members have the necessary credibility, integrity and
calibre and the required skills and knowledge.
The appointment and re-appointment of the SSC members is subject to the Fit and Proper Criteria adopted by BIMB
as required by paragraph 12 of the SGPD and Fit and Proper policy document issued by BNM.
181
SSC Meetings
Summary of SSC meetings attendance and time spent in 2021 are set out below:
SHARIAH SUPERVISORY COUNCIL (SSC)

Number of Meeting held in 2021 9
Meeting
Name Attendance %
Existing Members
Professor Dato’ Dr. Ahmad Hidayat Buang (Chairman) 9/9 100
Associate Professor Dr. Yasmin Hanani Mohd Safian 9/9 100
Professor Dr. Asmadi Mohamed Naim 9/9 100
Dr. Shamsiah Mohamad 9/9 100
Sahibus Samahah Datu Haji Kipli Haji Yassin 9/9 100
SSC
Number of Total Average All SSC members have complied with
Meetings Meeting Time Spent the attendance requirement under the
in 2021 Hours on Each
BNM Shariah Governance Framework
Meeting
9 32.2 3.6 of not less than 75%
hours hours
Nine (9) meetings were held during the financial year ended 31 December 2021, in compliance with the requirement of
paragraph 11.2 of the SGPD that requires the meeting to be held at least once in every two (2) months. The meetings
are also attended by one (1) Director, the Group CEO, the Group Chief Financial Officer, the Group Chief Internal Auditor,
the Group Chief Compliance Officer, the Group Chief Financial Inclusion Officer, Head of Operational Risk and Head of
Product Management as permanent invitees. Their presence at the meetings improves the quality of engagement
between the Board and Management members with SSC members, and increases their appreciation towards Shariah
deliberations and decisions. However, the Board members’ presence does not affect the independent deliberation by the
SSC members in their informed decision making. The Board receives regular updates on significant matters deliberated
during the SSC meetings and minutes of the SSC meetings are circulated to the Board.
Training
In line with Section 6 of the SSC Charter, SSC members undergo continuous training to keep abreast with the development
in the banking industry and enhance their skills and knowledge in discharging their responsibilities effectively.
During the financial year under review, two (2) SSC members were participating in the Certified Shariah Advisor program
(CSA) awarded by the Association of Shariah Advisors in Islamic Finance Malaysia (ASAS). The certification is commissioned
by BNM to motivate professionalism among Shariah advisors. This initiative by ASAS was mentioned in the Malaysian
Financial Blueprint 2011-2020 under Agenda 3.2 to develop Malaysia as reference centre for Islamic financial transactions.
182
Trainings attended by the SSC members in 2021 are as follows:
Name of SSC
Members Organiser Training Programme
Professor Dato’ Dr. BIMB 1. Emerging Risk Trends & Integrated Risk Management
Ahmad Hidayat 2. Culture Journey
Buang 3. Dinamika Dalam Fiqh Muamalat
4. Analytics and Agiles for Banks by Boston Consulting Group (BCG)
5. Anti Money Laundering and Countering the Financing for Terrorism
(AML/CFT)
Associate Professor KLIFF 1. 16th Kuala Lumpur Islamic Finance Forum 2021
Dr. Yasmin Hanani ISRA 2. Muzakarah 2021 : Industri Kewangan Islam Pasca Pandemik
Mohd Safian BIMB 3. Emerging Risk Trends & Integrated Risk Management
4. Maqasid Shariah
Professor Dr. Asmadi KLIFF 1. 16th Kuala Lumpur Islamic Finance Forum 2021
Mohamed Naim ISRA 2. Muzakarah 2021 : Industri Kewangan Islam Pasca Pandemik
BIMB 3. Culture Journey
(AML/CFT)
Dr. Shamsiah KLIFF 1. 16th Kuala Lumpur Islamic Finance Forum 2021
Mohamad ASAS 2. CSA Module : Module Legal Regulatory Framework
3. CSA Module : Principles of Economics
BIMB 4. Emerging Risk Trends & Integrated Risk Management
5. Culture Journey
6. Maqasid Shariah
(AML/CFT)
Sahibus Samahah KLIFF 1. 16th Kuala Lumpur Islamic Finance Forum 2021
Datu Haji Kipli Haji ASAS 2. CSA Module : Principles of Accounting & Finance
Yassin 3. CSA Module : Principles of Economics
4. CSA Module : Code of Ethics & Professional Conduct
BIMB 5. Emerging Risk Trends & Integrated Risk Management
183
Remuneration
The remuneration structure for the SSC members is sufficient to attract, retain and remunerate for their contribution to
BIMB. The remuneration structure takes into consideration the relevant factors which include the function, workload,
responsibilities and time spent for the preparation of the SSC meetings. A higher rate (premium) is given to the Chairman
of the SSC in view of his additional role in guiding and managing the SSC. The remuneration includes monthly fees,
meeting allowances and other benefits such as training fund.
SSC Evaluation
In line with paragraph 9.6 of the SGPD and Section 7 of the SSC Charter, SSC evaluation is carried out annually to assess
the performance and effectiveness of the SSC members whether they deliver and support a sound Shariah governance
system. This includes the SSC Peer Evaluation, SSC Collective Assessment and Internal Evaluation by the appointed
management members being permanent invitees to the SSC meeting.
The assessment looks into among others at aspects such as SSC composition, meeting operations, training adequacy,
accessibility, understanding of roles and responsibilities, interaction, productivity and quality in contribution, etc.
The results of the assessments are tabled and reviewed in the BNRC meeting prior to deliberation in the Board meeting.
CONCLUSION
The Board considers that BIMB has complied and applied the Principles of the MCCG 2021 during the financial year,
except for the following:-
Practice 4.4 : Performance evaluations of the board and senior management include a review of the
performance of the board and senior management in addressing the company’s material
sustainability risks and opportunities.
Practice 5.9 : The board comprises at least 30% women directors.
Practice 8.2 : The board discloses on a named basis the top five senior management’s remuneration
component including salary, bonus, benefits-in-kind and other emoluments in bands of
RM50,000.
Practice 13.1 : Notice for an Annual General Meeting should be given to the shareholders at least 28 days
prior to the meeting.
The Board has identified those Practices where there is a departure and this departure will be addressed as follows:
An explanation for the departure;

Disclosure of alternative practice adopted and how the alternative practice achieves the intended outcome;
Actions which BIMB has taken or intends to take; and
The timeframe required to achieve application of the prescribed Practice.
184
Practice 4.4
BIMB is just embarking upon our sustainability journey. BIMB in its 5-year strategic direction has put in place a plan to
embed ESG incorporating climate risk in credit assessment process and endeavors to put in place a broad-based framework
before the end of 2022. BIMB has also embarked to put in place a bankwide Sustainability Plan.
Practice 5.9
The Board currently comprises eleven (11) Directors, of whom two (2) is a woman, or 18% female representation.
The Board is mindful of appointing Directors who have diverse skills, experience, age and gender, and remains committed
to achieving at least 30% female representation on the Board whilst ensuring that overall diversity remains a central
feature.
The Board is taking the necessary steps to have at least 30% woman directors. The succession plan include consideration
to achieve more representation of woman directors.
Practice 8.2
The Board decided not to disclose on a named basis, the top five (5) Senior Management’s remuneration components
including salary, bonus, benefit-in-kind and other emoluments in bands of RM50,000. The Board viewed that such
disclosure would be disadvantageous to the Group’s business interests, in which the disclosure of that sensitive information
may result in excessive competition for talent in the banking industry.
The Company will closely monitor developments in the market in respect of such disclosure for future consideration.
Practice 13.1
BIMB’s 38th Annual General Meeting (38th AGM) was held on 31 May 2021. The Notice of the 38th AGM was issued to the
shareholders on 7 May 2021, i.e., 21-days before the AGM. The Notice was in line with the 21-days requirement under the
Companies Act 2016 and the Company’s Constitution.
The Company endeavours and is taking the necessary steps to ensure that the Notice of the AGM is issued 28-days prior
to the date of the AGM. For the 39th AGM in 2022, the Notice of the 39th AGM is issued 28-days prior to the AGM.
This Corporate Governance Overview Statement was approved by the Board of Directors of BIMB on 15 April 2022.
Further information in the application of the practices captured in the Principles of MCCG 2021 during the financial year,
please refer to the Corporate Governance Report 2021 which can be found in the Company’s website www.bankislam.com
185
ADDITIONAL COMPLIANCE
INFORMATION
1. SHARE BUYBACKS
BIMB did not purchase any of its own shares during the financial year ended 31 December 2021.
2. OPTIONS, WARRANTS OR CONVERTIBLE SECURITIES
BIMB did not issue any Options, Warrants or Convertible Securities in respect of the financial year ended 31 December
2021.
3. AMERICAN DEPOSITORY RECEIPT (ADR) OR GLOBAL DEPOSITORY RECEIPT (GDR)
BIMB did not sponsor any ADR or GDR programme in the financial year ended 31 December 2021.
4. LIST OF PROPERTIES
The list of BIMB’s properties is set out on page 438 of the Integrated Annual Report 2021.
5. MATERIAL CONTRACTS INVOLVING DIRECTORS, CHIEF EXECUTIVE OFFICER AND MAJOR SHAREHOLDERS
Save for the related party transactions disclosed in Note 44 of the Financial Statements, no other material contract
entered into by BIMB or its subsidiary companies involving Directors and/or major shareholders’ interest was still
subsisting at the end of the financial year or entered into since the end of the previous financial year.
6. IMPOSITION OF SANCTIONS AND/OR PENALTIES
There was no public sanctions and/or penalties imposed on the Company or its subsidiaries, Directors or Management
arising from any significant breach of rules/guidelines/legislations by the relevant regulatory bodies during the financial
year under review.
7. UTILISATION OF PROCEEDS RAISED FROM CORPORATE PROPOSALS
Net proceeds raised from the Dividend Reinvestment Plan (DRP) (after deducting estimated expenses of the DRP)
during FY2021 were utilised for the purpose of funding the continuing growth and expansion of the BIMB Group.
186
BOARD AUDIT &

EXAMINATION COMMITTEE REPORT
CHAIRMAN
Datuk Bazlan Osman
(appointed w.e.f. 7 January 2022)
MEMBERS MEMBERSHIP
Mohd Yuzaidi Mohd Yusoff In 2021, the BAEC was chaired by Noraini Che Dan, an
Independent Non-Executive Director Independent Non-Executive Director until her demise on
(appointed as Interim Chairman w.e.f. 3 September 2021 26 August 2021. Subsequently, Zahari @ Mohd Zin Idris, a
until 7 January 2022) Non-Independent Non-Executive Director also retired on 20
September 2021. Pursuant to this, the BAEC composition
Dato’ Sri Khazali Ahmad
was reviewed to ensure compliance with the Main Market
Listing Requirements (MMLR) of Bursa Malaysia Securities
Berhad (Bursa Malaysia) which prescribes that the BAEC
Nuraini Ismail
must consist of at least three (3) members with the Chairman
(appointed w.e.f. 7 January 2022) and a majority of the members being independent non-
executive directors.
Non-Independent Non-Executive Director Mohd Yuzaidi Mohd Yusoff, who is an existing BAEC member
was elected by the Board to assume the Chairman position
on an interim basis pending the appointment of a new
FORMER MEMBERS WHO SERVED IN 2021 Chairman with qualified accounting background. Datuk Nik
Mohd Hasyudeen Yusoff, a Non-Independent Non-Executive
Noraini Che Dan
Director, who is a member of the Malaysian Institute of
Accountants and Fellow CPA Australia, was appointed as
(Deceased on 26 August 2021)
an interim member to provide support on any financial
Zahari @ Mohd Zin Idris accounting related matters. In addition, Mashitah Haji Osman
Non-Independent Non-Executive Director was also appointed as a BAEC member on an interim basis
(retired w.e.f. 20 September 2021) to comply with the requirement for majority Independent
Non-Executive Directors in the BAEC.
Mashitah Haji Osman
Independent Non-Executive Director On 7 January 2022, Datuk Bazlan Osman was appointed
(appointed w.e.f. 3 September 2021 and ceased as the new Chairman of the BAEC. He is a member of the
to be a member on 7 January 2022) Malaysian Institute of Accountants and Fellow ACCA, United
Kingdom. Nuraini Ismail, a newly appointed director was also
Datuk Nik Mohd Hasyudeen Yusoff appointed as a new BAEC member. With the appointment
Non-Independent Non-Executive Director of Datuk Bazlan Osman and Nuraini Ismail, both Datuk Nik
(appointed w.e.f. 20 September 2021 and ceased Mohd Hasyudeen Yusoff and Mashitah Haji Osman ceased
to be a member on 7 January 2022) to be the BAEC members whilst Mohd Yuzaidi Mohd Yusoff
remains as a member of the BAEC.
187
BOARD AUDIT & EXAMINATION COMMITTEE REPORT
Roles and Responsibilities
The BAEC assists the Board in ensuring a reliable and transparent financial reporting process and internal control system
are in place within the Group and provides an independent oversight on the effectiveness of the internal and external
audit functions. The detailed roles and responsibilities of the BAEC are set out in its Terms of Reference, which was last
reviewed on 5 October 2021 and is available on BIMB’s website at www.bankislam.com.
The BAEC of BIMB is committed to its role of ensuring strong corporate governance practices and providing independent
oversight on the Group’s financial reporting and internal control system. This report provides an insight into the activities
of the BAEC during the financial year under review.
MEETINGS
During the financial year under review, eight (8) BAEC meetings were held. This satisfies the BAEC Terms of Reference,
which requires the BAEC to meet at least four (4) times a year.
The Group Chief Executive Officer (Group CEO), the Group Chief Internal Auditor (GCIA), the Group Chief Compliance
Officer, the Group Chief Operating Officer, the Group Chief Human Resources Officer and the Group Chief Legal Officer
and Company Secretary, who is also the Secretary to the BAEC, attend the BAEC meetings. In addition, the Group Chief
Financial Officer and any Management representatives were invited to the meeting, where required, to present and
facilitate the deliberation on any specific issues arising from the relevant reports presented.
The External Auditors were also invited to the meeting to present the audited financial statements, the half-yearly unaudited
financial reports, the Management Letters, the Audit Plan and other relevant matters. During the financial year 2021, the
BAEC had two (2) private sessions with the auditors without the presence of the Management to review the scope and
adequacy of BIMB’s audit process, the annual financial statements and their audit findings.
In addition, all BAEC members have given their full commitment to the BAEC meetings held in 2021 as indicated in their
satisfactory meeting attendance record shown below:-
Meeting
Name %
Attendance
Noraini Che Dan

Independent Non-Executive Director/Chairman 5/5 100
• Deceased on 26 August 2021

Independent Non-Executive Director 8/8 100
• Appointed as Interim Chairman w.e.f. 3 September 2021

8/8 100
Non-Independent Non-Executive Director

8/8 100
Zahari @ Mohd Zin Idris

Non-Independent Non-Executive Director 5/5 100
• Retired w.e.f. 20 September 2021
Mashitah Haji Osman

Independent Non-Executive Director 3/3 100
• Appointed w.e.f. 3 September 2021 and ceased to be a member on 7 January 2022
Datuk Nik Mohd Hasyudeen Yusoff

Non-Independent Non-Executive Director 3/3 100
• Appointed w.e.f. 20 September 2021 and ceased to be a member on 7 January 2022
188
THE BAEC ACTIVITIES IN 2021
Areas of Focus Matters Considered
Internal Audit • Reviewed and approved the revised Internal Audit Plan and Budget for the Financial Year (FY) 2021 arising
from the continued movement restriction and physical distancing requirement as per the Standard
Operating Procedures (SOP) on COVID-19 pandemic. The number of audits performed for FY2021 were
143 (or 108%) against the approved revised audit plan of 133. 29 audits were performed due to regulatory
requirements.
• Reviewed and approved the 2022 Internal Audit Plan and Budget which includes the scope, procedures
and frequency as well as adequacy and competency of internal audit resources.
• Reviewed and approved the review of the Internal Audit Division Manual.
• Deliberated 81 Internal Audit Reports on the Head Office, Regional Offices, the branches and identified
critical units of BIMB, which amongst others focused on the effectiveness and adequacy of governance,
risk management and internal control, audit rating and recommendations.
• Deliberated 24 Internal Audit Reports on Information System Audit which assessed the adequacy of the
information system controls, security including cyber security and the necessary back-up systems to cover
for contingencies or disaster.
• Deliberated 11 Shariah Audit Reports on compliance with the Shariah rulings.
• Reviewed the progress of rectification effort on unresolved audit findings to ensure appropriate corrective
actions were taken by Management in a timely manner to address control weaknesses, policies and other
areas identified by the Internal Auditors and other control functions.
• Reviewed and noted the analysis and trend of audit rating and audit findings of branches from the
FY2017 to FY2020.
• Reviewed the updates by the Internal Audit on the state of internal controls for the second half of the
FY2021.
• Reviewed the performance and achievements of the Internal Audit Division for the FY2020 and the first
half of the FY2021.
• Reviewed and noted 34 investigation reports by Internal Audit Division which cover cases for staff
negligence and potential disclosure of customers information.
• Reviewed and noted the report by Internal Audit Division on verification of non-audit services fees incurred
by external auditors.
• Reviewed and noted the report from Institute of Internal Auditors Malaysia (IIAM) on External Quality
Assessment Review (QAR) for BIMB’s Internal Audit Division.
• Reviewed and noted the minutes of meeting of the Management Audit Committee.
External Audit • Reviewed and deliberated the external auditor’s 2021 audit plan encompassing the audit approach, the
areas of audit emphasis and audit fees.
• Reviewed and deliberated the External Auditors reports on:
(i) the audited financial statements for the financial year ended 31 December 2020, which include the key
focus area of the audit and internal control matters, on 22 January 2021;
(ii) limited review of the unaudited financial statements for the financial period ended 30 September 2021,
on 25 October 2021; and
(iii) the audited financial statements for the financial year ended 31 December 2021, which include the key
focus area of the audit and internal control matters, on 27 January 2022.
• Evaluated the independence and objectivity of the external auditor by reviewing the fees and the list of
non-audit services provided by the external auditor.
• Reviewed and recommended to the Board the re-appointment of external auditor. The BAEC’s evaluation
was based on the performance, independence and suitability of the external auditors. It also covers the
assessment on the external auditor’s ability in meeting BIMB’s requirements, business insights and ideas,
service efficiency and effectiveness as well as value management.
189
Areas of Focus Matters Considered
Financial • Reviewed and recommended to the Board the audited financial statements for the financial year ended
Reporting 31 December 2020 and the financial year ended 31 December 2021.
• Reviewed the unaudited quarterly and half yearly financial result of BIMB and the Group.
• Recommended to the Board the proposed final single tier dividend for the financial year ended
31 December 2020 upon being satisfied with the solvency test.
Related Party
• Reviewed related party transactions as disclosed in the financial statements.
Transaction
Integrity & • Reviewed and deliberated the updates on Corruption Risk Management Report and approved the
Governance implementation of divisional Corruption Risk Management as well as the risk action plan.
• Reviewed and approved the implementation of Corruption Risk Management Review Plan.
• Reviewed and deliberated the Integrity & Governance Division Reports, which include report on the
investigation of fraud cases and whistleblowing cases.
• Approved the creation of whistleblowing reporting channel for the subsidiaries.
• Reviewed and deliberated the development of BIMB’s Organisational Anti-Corruption Plan (OACP).
• Reviewed and noted the status of the implementation of Adequate Procedures to protect BIMB from
Corporate Liability under Section 17A of MACC Act 2009 (Amendment 2018).
TRAINING AND DEVELOPMENT

All BAEC members have a wide range of relevant skills, knowledge and industry experience in discharging their duties.
They are financially literate and able to understand, analyse and challenge the Management on matters deliberated in the
meeting including the financial reporting process. The BAEC members are expected to devote sufficient time to update
their knowledge and enhance their skills through appropriate continuing education programmes. During the year, the BAEC
members attended several seminars and training conferences to keep abreast with the latest developments
Details of the seminars and training programmes attended by each Director in 2021 can be found in the CG Report.
PERFORMANCE REVIEW OF THE BAEC

Based on the annual evaluation on the effectiveness of the Board, its Committees and the members of the Board, the Board
is satisfied with the performance of the BAEC and its members. The BAEC has discharged its duties in accordance with its
Terms of Reference and in line with the requirements of MCCG, BNM CG Policy and MMLR. Result of the annual evaluation on
the BAEC for the financial year 2021 can be found in the CG Report.
RELATIONSHIP WITH EXTERNAL AUDITORS

The Board maintains a transparent and professional relationship with the External Auditors through the BAEC. The BAEC
reviews and assess the suitability, objectivity and independence of the External Auditors annually. The appointment or re-
appointment of the External Auditors is carried out in accordance with the requirements set out by BIMB to ensure the
independence and objectivity of the External Auditors as statutory auditors are not compromised.
The External Auditors also provide non-audit services to BIMB. For engagement of the External Auditors to perform non-audit
services, the BAEC has to be satisfied that the External Auditors are suitable, independent and objective in the provision of
such services, there is no element of conflict of interest and the fees chargeable are within the allowable threshold set.
190
The BAEC was satisfied with the quality of audit, performance, The annual audit plan is reviewed and approved by the BAEC
competency and sufficient resources provided to BIMB by prior to the beginning of each financial year. The audit plan
the External Auditors during the financial year under review. adopts a risk-based approach in determining the auditable
The BAEC was also satisfied that the provision of non-audit units and frequency of the audits which focussed on the
services to BIMB by the External Auditors did not impair their following three (3) components:-
objectivity and independence as External Auditors of BIMB.
i. Impact and likelihood of the inherent risk;
The amount of audit fees and non-audit fees paid by BIMB ii. The respective controls in place; and
and the Group can be found on page 303 of Notes 31 of the iii.
Existence of effective risk transfer and loss impact
Financial Statements. reduction practices in minimising potential losses from
negligence or fraud.
INTERNAL AUDIT FUNCTION IAD adopts the standards and principles outlined in the
Internal Control Framework of Committee of Sponsoring
BIMB has an in-house internal audit function which is
Organization of the Treadway Commission (COSO) and
carried out by the Internal Audit Division (IAD). The IAD
the objectives set by the Institute of Internal Auditors’
undertakes the audit on entities within BIMB, its subsidiaries
International Professional Practices Framework which
and related parties of BIMB. During the financial year
comprises the core principle for the Professional Practice
under review, the audited entities include BIMB Investment
of Internal Auditing, the definition of Internal Auditing and
Management Berhad, BIMB Securities Sdn Bhd, Syarikat
Code of Ethics.
Al-Ijarah Sendirian Berhad and BIMB Securities (Holdings)
Sdn Bhd. The IAD is primarily responsible to undertake
The results of the audit conducted, including its risks, root-
regular and systematic reviews in conformance with the
cause and recommendations are reported to the BAEC
Institute of Internal Auditors’ International Professional
on a regular basis. Resolution of the audit findings and
Practices Framework and the Internal Audit Charter so as
recommendations are performed by the Management and
to provide reasonable assurance that the risk management
closely observed by the Management Audit Committee
process, internal controls and governance practices of BIMB
whose members comprised the senior management
and its Group are operating satisfactorily and effectively and
members. In addition, Shariah audit reports including
are in line with the Group’s goals and objectives. In view of
their findings, risks, root-cause and recommendations are
the implementation of the movement control order, some of
notified and deliberated at the Shariah Supervisory Council
the audit works were performed offsite.
meetings.
Responsibility, Scope and Methodology

Resources
The BAEC oversees the performance and effectiveness
The overall costs incurred to maintain the internal audit
of the Internal Audit function based on the approved key
function in the Group for the Financial Year 2021 was
performance indicators, assesses the competency and
approximately RM7.9 million (Financial Year 2020: RM7.1
experience of the Internal Audit staff as well as the adequacy
million), consists mainly of salaries and other audit related
of resources in order for the Internal Audit function to carry
expenditures. As at 31 December 2021, the IAD has a staff
out its work effectively. The BAEC also ensures that the
strength of 43 auditors, all of whom are equipped with the
Internal Audit staff have the authority to discharge their role
relevant experience and qualifications. 27 auditors had
objectively and independently, free from any relationship or
obtained the required certification, namely, Certification for
conflict of interest.
Bank Auditors (CBA) and/or CIAFIN. In 2021, three (3) staff
had obtained CBA, and one (1) staff each had obtained the
To reflect the independence of Internal Audit, the GCIA
Certified Information System Auditor (CISA) and Digital
reports functionally to the Board through the BAEC and
Risk Manager (DRM) certification. Due to the continued
administratively to the Group CEO. The GCIA is Zalfitri Abd
movement control order and the need for social distancing,
Mutalip who has a degree in Bachelor of Science in Business
the training and development of the auditors’ skillset and
Administration (Finance), a Certificate in Internal Auditing for
competencies were mostly done via the virtual platform.
Financial Institution (CIAFIN) and is a Chartered Professional
in Islamic Finance (CPIF). He has extensive experience in
The IAD is committed to provide an independent, objective
auditing in the financial industry and has helmed the IAD of
assurance and advisory services that will add value and
BIMB since 2017.
improve the Group’s operations.
191
IAD Activities in 2021

Prepare the Audit Plan and Budget for
Report to the BAEC the adequacy, reliability,
approval of the BAEC. The Audit Plan was integrity and compliance of:
developed based on assessment of the
significant potential risk exposure of the
risk management, internal controls and
auditable areas. governance processes;

Information Technology, stress testing

P rovide independent assessment and procedures and practices and the back-
objective assurance on the adequacy and up system to cover for contingencies
effectiveness of internal controls and disaster; and
implemented to mitigate the risk exposures.
R egulatory reporting, accounting
Prepare audit report consisting of records, financial reports and
observations, improvement opportunities, management information.
root-cause, management responses which
include the corrective actions by the
Review compliance with relevant legal,
respective stakeholders, deadline for regulatory and internal policies as well as
resolution and person responsible for in compliance with Shariah rules and
implementation of corrective actions. principles as determined by the Shariah
Supervisory Council and Shariah Compliance
F
ollow-up on the Management corrective Policy.
actions on audit issues raised by the IAD.
Determine whether corrective actions taken
Provide independent assessment on the
have generally achieved the desired results effectiveness of the Business Continuity
to mitigate the risk exposures. Plan/Disaster Recovery Plan to ensure
resumption of business activities is not

Report to the BAEC, the final audit report hampered.
highlighting the audit plan coverage, audit
scope and risks covered, audit rating,
Review, update and enhance the Internal
significant audit findings, findings escalated Audit Division Manual by incorporating
for Management’s immediate action, root- among others, the updated Heat Map
cause and status of corrective actions. tables, Non-Financial Risk Impact Matrix
A total of 143 audits (against the approved and Structured Training and Certification
audit plan of 133) were conducted for the Plan for Internal Auditors.
Group in FY2021.

Engage the Institute of Internal Auditors
Malaysia (IIAM) to conduct the External
Quality Assessment Review (QAR). The IAD
was assessed as “Generally Conforms” to
the Institute of Internal Auditors’ International
Standards for the Professional Practice of
Internal Auditing (IPPF/Standards).
192
STATEMENT ON RISK MANAGEMENT

AND INTERNAL CONTROL
INTRODUCTION
PURSUANT TO PARAGRAPH 15.26(B) OF THE LISTING REQUIREMENTS OF

BURSA MALAYSIA SECURITIES BERHAD, THE BOARD OF DIRECTORS
(BOARD) IS PLEASED TO PROVIDE THE FOLLOWING RISK MANAGEMENT
AND INTERNAL CONTROL STATEMENT (THE STATEMENT) WHICH OUTLINES
THE NATURE AND SCOPE OF RISK MANAGEMENT AND INTERNAL CONTROLS
OF THE GROUP DURING THE FINANCIAL YEAR ENDED 31 DECEMBER 2021.
This Statement has been made in line with the Statement on Risk Management & Internal Control: Guidelines for Directors
of Listed Issuers.
The Board is committed and acknowledges its responsibility to oversee the system of risk management and internal
controls within the Group, including reviewing the adequacy, integrity and effectiveness to safeguard shareholders’
investments and the Group’s assets. In anticipation of the listing of BIMB where it became the Bank Holding Company,
BIMB has established a Group Harmonisation Committee that has carried out the initiatives to streamline and strengthen
the group governance practices including the risk management and internal controls within the Group. Such initiatives
enable BIMB to have an oversight of the subsidiaries within the Group.
The Board has received assurance from BIMB’s Group CEO and the Group Chief Financial Officer that the Group’s risk
management and internal control systems are operating adequately and effectively, in all material aspects, during the
financial year under review and up to the date of this Statement.
Taking into consideration assurances from the Management and the input from the relevant assurance providers, the
Board is of the view that the systems of risk management and internal control are performing satisfactorily and are
adequate to safeguard the shareholders’ investments, customers’ interest and the Group’s assets. The Group will continue
to implement new measures to strengthen its internal control and risk management environment.
193
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL
BOARD RESPONSIBILITY
The Board affirms its overall responsibility and oversight in establishing a sound risk management and internal control
system in the Group as well as reviewing its adequacy, integrity, and effectiveness. Such a system is designed to manage
the Group’s risk appetite within the established risk tolerance set by the Board and the Management, minimising the
risk of failure rather than total elimination of risks to achieve the Group’s business objectives. Acknowledging that the
system only provides reasonable and not absolute assurance against the occurrence of any material misstatement, loss
or fraud; controls and processes have been put in place to contain the limitations inherent in the system such as human
error and potential impact of external events beyond the Management’s control.
The Board constantly keeps abreast with the developments in areas of risk and governance. The Board is assisted by the
Board Risk Committee (BRC) which has been delegated with the primary oversight responsibilities on the Group’s risk
management and internal control systems. The Board is also supported by the Board Audit & Examination Committee
(BAEC) which provides independent oversight of the Group’s reporting process and internal control systems that facilitates
appropriate checks and balances within the Group. Periodic summary reports are provided by the Committees to keep
the Board informed of their work, key deliberations and decisions on delegated matters.
The Board is of the view that the internal control framework that has been instituted throughout BIMB is sufficient to
safeguard the shareholder’s investment, customers’ interest and BIMB’s assets. The governance structure established
further ensures that there is effective oversight of risks and internal controls in the Group at all levels. The Board remains
responsible for the governance of risk and internal control, as well as all the actions of the Board Committees with regard
to the execution of the delegated oversight responsibilities. Reviews are continuously carried out to ensure effectiveness
of the system. The Group regularly reviews and improves all controls, processes and response plan arising from the
challenges of the COVID-19 pandemic and any other emerging risks that may arise.
The Group has established processes to ensure the adequacy and integrity of its internal control system and manage
the existing and potential risks with control and governance processes.
MANAGEMENT RESPONSIBILITY
The Management is accountable to the Board and is overall responsible for the effective implementation of the Board’s
policies and procedures on risk management and internal control. This is done by identifying and evaluating the risks
faced by the Group and designing, operating and monitoring the risk management and internal control system to
mitigate and control risks for consideration by the Board. This includes taking appropriate and timely corrective actions
as required. The Management has assured the Board that the Group’s risk management and internal control systems
are operating adequately and effectively, in all material aspects, based on the risk management framework and internal
control systems adopted by the Group.
194
The Management’s responsibilities in respect of risk management and internal control include:
(a)
Monitoring and assessing the overall risk profile of the Group including emerging risks in credit risk,
market risk, liquidity risk, operational risk, Shariah non-compliance risk, regulatory/compliance risk,
contagion risk, IT & cyber risk, and sustainability risk (including climate-related risk);
(b)
Reviewing and recommending to the BRC relevant policies, guidelines, and procedures to manage risks
in accordance with the Group’s strategic vision and overall risk appetite;
(c)
Designing, implementing and monitoring the effective implementation of risk management and internal
control system; and
(d)
Reporting in a timely manner to the Board on any material changes to the risks together with the
corrective and mitigation actions taken.
RISK MANAGEMENT
The Board recognises that sound risk management and internal control forms an integral part of the Group’s business
operations and decision-making process and are critical in ensuring the Group’s success and sustainable growth.
The Enterprise Risk Management (ERM) Framework is the foundation of the control mechanisms within the Group. It
consists of an ongoing process to identify, assess, measure, manage, control and report material risks affecting the
achievement of the Group’s strategic business objectives.
The key elements of the internal control system which is guided by the Group’s ERM framework consists of the following:
Risk
Risk Risk Risk
Management
Governance Appetite Culture
Process
195
Risk Governance
The Group’s risk governance provides a formal, transparent and effective governance structure that promotes the active
involvement of the Board and Senior Management in the risk management process to ensure a uniform view of risks
across the Group. The following Risk Committees have been established to facilitate the implementation of the Risk
Management Framework.
BOARD OF DIRECTORS
The Group’s ultimate governing body which plays a critical role in ensuring sound and prudent policy and practices in the
Group. It provides an effective check and balance mechanism in the overall management of the Group.
BOARD COMMITTEES
Board Financing Board Risk Committee (BRC) Board Strategic &

Review Committee Sustainability Committee
(BFRC) Responsible for: (BSSC)
• Overseeing the Group’s activities in managing the
Responsible for: following risks: Responsible for:
• Reviewing all • Overseeing, supervising
• Credit Risk • Business Continuity Risk
investment and and monitoring the
• Market & Liquidity Risk • Sustainability Risk (including
financing/credit implementation of
• Operational Risk climate-related risk)
related proposals identified key strategic
• Compliance Risk • Any other relevant risks
above specified matters and any corporate
• IT and Cyber Risk
limits exercises
MANAGEMENT EXECUTIVE COMMITTEES
Financing Market Risk Control Committee (MRCC) Asset & Liability

Committees Management
Responsible for: Committee
Responsible for: • Performing the oversight functions to ensure effective risk management (ALCO)
• Assessing/ of key issues relating to the overall risk management of the Group
approving credits Responsible for:
and investment/ • Overseeing and
capital market deliberating key
proposals Operational Recovery Data Rescheduling issues relating to
Risk Control Management Management & Group’s asset and
Committee Committee Committee Restructuring liability
(ORCC) (RMC) (DMC) Oversight management and
Committee
Business market risk
Responsible Responsible Responsible (R&ROC)
Continuity
Management for: for: for:
Responsible
Committee • Facilitating • Overseeing • Overseeing
for:
(BCMC) MRCC in the recovery Data
• Overseeing
management issues and Management
the
Responsible for: of key issues related initiatives and
management
• Reviewing the on operational establish
of key issues
Group’s BCM issues operational strategies on appropriate
related to
and making risk recovery action plan to
post
appropriate resolve issues
moratorium
recommendation on data
credit matters
management
196
The Group’s risk governance approach is premised on the 3-Lines of Defence Approach by placing accountability and
ownership of risks to where they arise while maintaining the level of independence among risk taking units, risk control
units and independent assurance unit in managing risk. The 3-Lines of Defence is used in implementing the ERM
Framework and providing risk management accountability across the Group.
THREE LINES OF DEFENCE APPROACH
Responsible for providing Independent assurance to

3 Board and Senior Management that Risk Management
Internal Processes and Tools are effectively implemented
Audit
Responsible for establishing and maintaining Risk

2 Management framework; developing Risk Management
Risk Control Tools; assessing, monitoring, reporting and controlling
Units* risk; and promoting risk awareness across the Group
1 Responsible for ongoing oversight of risk & control at day

Risk Owner or Risk to day work level and promoting strong risk culture within
Taking Units business/support unit
*C
onsists of Group Risk Management Division (including Shariah Risk Management), Group Credit Management Division,
Group Compliance Division (including Shariah Compliance) and Group Information Security & Governance Division.
Risk Appetite
The risk appetite defines the levels of risk that the Group is willing to assume within its risk capacity. It is a critical
component of the Group’s ERM Framework, which enables the Board and Management at all levels to communicate,
understand and assess the types and levels of risks that the Group is willing to accept in pursuit of its strategic and
business goals while taking into consideration the constraints under a stressed environment. The Group’s risk appetite
has been integrated into its Corporate Direction and Business Plan and remains dynamic and responsive to the changing
external and internal drivers such as the business and market conditions. It is determined based on the following elements:
01 02 03
Risk Capacity Risk Tolerance Risk Appetite
• What is the maximum • How much risk is the • What level of risk is
limit of risk the Group can Group prepared to deemed acceptable
withstand without causing take per risk type or by the Board in
its failure? business unit? pursuing its stategy?
The Group takes steps to ensure that trigger levels, limit structures and delegated authorities are re-aligned, and potential
risk appetite implications are considered in all major resource allocation decisions. In setting the risk appetite of the
Group and to enhance the Group’s risk adjusted returns, the discussion of risks is from the point of view of optimising
the Group’s risk-return profile instead of ‘loss minimising’.
Guided by these principles, our risk appetite is articulated through a set of Risk Appetite Statements across the Group
to ultimately balance the strategic objectives of the Group.
197
Risk Management Process The Group’s risk culture has evolved over time and is a
reflection, amongst others, of Senior Management actions,
A standard risk management process has been adopted
effective enforcement of policies and guidelines and
by the Group to ensure that Group-wide risks are properly
communication strategies. Additionally, the Group perceives
identified and managed across all products and activities
risk management as an important means of enhancing
are undertaken in a structured, systematic and consistent
competitiveness, performance and operational resilience.
manner. The risk management process is as follows:
Shariah Non-Compliance Risk
Shariah Non-Compliance Risk (SNCR) is part of operational

Step 1: risk and is defined as “the risk of legal or regulatory sanctions,
Risk financial loss or non-financial implications including
Identification reputational damage, which the Group may suffer arising
from failure to comply with the rulings of the Shariah
Advisory Council of Bank Negara Malaysia (SAC), standards
on Shariah matters issued by BNM or decisions or advice
Step 2:
of the Group’s Shariah Supervisory Council. The responsibility
Risk
of managing SNCR is spearheaded by the Group’s Shariah
Risk Assessment
Risk Management Unit that is guided by the Risk Management
Management
framework and Operational Risk Management (ORM)
Step 4: Process
Guideline. The documents detail out the Shariah risk
Risk Monitoring
management processes and tools in order to provide a
& Reporting
consistent framework for managing SNCR across the Group.
Shariah risk management is a discipline that systematically

identifies, measures, monitors and controls SNCR to mitigate
Step 3:
the occurrence of SNC events within the Group. Being part
Risk Control &
of operational risk, it leverages on the same principles,
Mitigation
processes and tools of operational risk. However, the tools
are modified to suit the regulatory requirements on Shariah
governance in order to provide a robust and consistent
approach in managing SNCR.
Under this approach, active involvement of the Board, Senior
Management and staff of all levels are required in the risk
Information Technology Risk
management process to ensure a uniform view of risks
across the Group. Information Technology (IT) risk (including cyber risk) is the
business risk associated with the use, ownership, operation,
Risk Culture influence, involvement and adoption of technology within
the Group. It also consists of technology related events that
Risk culture is a vital component in strengthening risk
could potentially impact the business. Banking industry
governance and forms a fundamental principle of strong
heavily relies on technology and BIMB is no exception. Such
risk management. It is key to the long-term effectiveness
reliance exposes the Group to IT related risks such as cyber-
of the Group’s risk management strategy. As encapsulated
attacks and system disruptions. To mitigate this, BIMB has
in the Group’s Risk Management Tagline, “Managing Risk
established the relevant framework and policy and has also
is Everyone’s Business”, building a strong risk culture is the
put in place appropriate control measures and processes
responsibility of the Board, Senior Management and all
that are continuously being reviewed and enhanced. The
employees of the Group. To ensure this, the risk management
Group also continues to invest in the latest IT infrastructure
process and approach has been embedded in all the Group’s
and tools as well as human capital development.
core business processes, functions and activities.
198
The responsibility for managing IT risk is spearheaded by the Group Information Security & Governance Division (GISGD).
While it is responsible for establishing, maintaining and enforcing IT risk policies and guidelines, it also works closely with
the Group IT Division (GITD), especially in identification, assessment, mitigation, monitoring and reporting of IT risk in the
Group. In managing IT risk, the Group is taking among others, the following steps:
i. Implementing IT risk management strategy that reflects the culture, appetite and tolerance levels of
the Group, taking into consideration technology capabilities, budgets and regulatory requirement;
ii. Designing policies and internal controls – policies and internal controls are designed and enforced to
reduce technology related risks to an acceptable level and the effectiveness of those controls are
monitored;
iii. Monitoring process – reviews are conducted to ensure controls are adequately implemented and gaps
are highlighted and rectified;
iv. Performing review and risk assessment – frequent review and assessment exercise is performed to
identify risk, vulnerabilities and threats as well as its mitigation measures. The areas covered includes
but not limited to third party service providers and those related to emerging technologies such as
cloud-based project implementation; and
v. Reporting – IT and cyber risk related reports are periodically presented to Management committees and
the Board for deliberation.
COMPLIANCE MANAGEMENT
Financial Crime Compliance (FCC)
BIMB addresses and tackles financial crimes by developing typologies and red flags for financial flows, training frontline
staff to identify potential suspicious transactions, and participating in public-private partnerships to share intelligence
and good practices.
BIMB has established comprehensive controls to anticipate, prevent, detect and respond to any money laundering and
terrorist financing activities. The AML/CFT policy outlines the roles and responsibilities and clear accountability of the
Board of Directors, Senior Management and its employees.
We actively contribute to the industry by taking lead in various initiative including preparing a Standard Operating
Procedure (SOP) for Law Enforcement Agency (LEA) process. BIMB continues to support the industry combating financial
crime by conducting training and providing certification to compliance officers across the industry on financial crime
risks and AML topics.
To mitigate the risk of financial crime, particularly money laundering, BIMB established several monitoring rules which
are designed to identify and investigate transactions of potential crime. In 2021, we adopted technology in addressing
financial crime by leveraging the Robotic Process Automation. To further improve the quality of transaction monitoring,
FCC Department applied a Standard Deviation approach in AML System aiming to improve the analyst productivity and
reduce false positive.
Addressing AML risk does not stop at the Bank level only. As part of managing money laundering/terrorist financing risk
at subsidiary level, a consultant was assigned to conduct an Institutional Risk Assessment (IRA) at BIMB Investment
Management Berhad and at BIMB Securities Sdn Bhd. The team had kicked start a project to implement Fraud and
AML System which will be launched in March 2022.
199
KEY COMPLIANCE INITIATIVES FOR FY2021
• Focus on the AML remediation works and addressing gaps in Institutional Risk
Assessment exercise.
AML • The remediation shall protect the Bank and its customers in combating money
REMEDIATION laundering/terrorism financing and other financial crimes.
• Revised the AML/CFT rules and parameters to reduce false positive and provide
effective transactions monitoring controls.
• Adoption of technologies, i.e., Robotic Process Automation (RPA) in transaction
monitoring process.
STRENGTHEN • Applying statistical method, i.e., Standard Deviation in the transaction monitoring
AML process and obtain accurate and effective result during the transaction
CONTROLS monitoring review.
• Conducted Risk Assessment at BIMB Investment to identify and address the
money laundering/terrorist financing risk at subsidiary level.
• Successful issuance of Compliance related Group Policies, i.e.:
1) Group Compliance Policy;

2) Group AML/CFT Policy;
3) Group e-KYC Policy;
4) Group Sanctions Policy;
GROUP 5) Group Personal Data Protection Policy;
POLICIES 6) Group Anti Bribery and Corruption Policy;
7) Group Compliance Risk Assessment Policy;
8) Group Corruption Risk Assessment Policy; and
9) Group Gift Policy.
• Produced new method of e-learning by segregating generic modules into a

cluster of smaller topics.
• Bite size e-learnings for AML/CFT and Preserving Banking Secrecy and Customer
Information were rolled out in 2021 which consisted of four (4) modules each.
E-LEARNING & • Improved staff competency through certification (AICB/ABS, ICA, ACAMS, ACFE
CERTIFICATIONS and other regulatory compliance certification). Over 62 staff undertook 17
professional certificates in 2021.
200
• Continuous education on AML/CFT and regulatory training for staff, i.e., in-house
training, external training (virtual engagement and sharing session with LHDN,
PDRM & KPMG).
• 17 webinars and virtual sessions were attended by the staff.
AML/CFT & • 36 refresher courses and intensive trainings were conducted bank wide.
REGULATORY • Introduced 2 new Compliance Programmes to inculcate a strong compliance
TRAINING culture mindset within Compliance Division.
• 4 Essential skills of a Compliance Officer and 5 Coffee with Compliance sessions.
• Publication of learning and awareness materials through Communiqués to all

staff at branches and business units.
• 14 publications and 3 videos were issued in 2021.
COMMUNIQUÉ
• 225 Manual & Policy reviews were conducted on Business Units processes
which required AML/CFT checks and as part of Institutional Risk Assessment
(IRA) action plan.
MANUAL &
• It is to ensure that the processes & products issued by Business Units were
POLICY
aligned with AML/CFT and sanctions requirement.
REVIEW
Key Compliance Achievements and Activities for FY2021
Accredited with the Best Independent Assessment for Retail Standalone Category 2021 by PayNet.
This has been made successful attributed by the adoption of a structured risk-based review
methodology which facilitated the overall review process.
Established a dedicated Group Thematic Review team under Compliance Monitoring & Testing
Department to support the Group Harmonisation Plan in enabling BIMB to be a public listed company.
The team had also leveraged on data analytics tools to further supplement the review methodology
performed.
Conducted 107 compliance reviews comprising of mandatory, risk-based and thematic reviews for
Regulatory and AML/CFT areas, resulting in 79 areas for improvement to further strengthened the
internal controls.
201
Accomplished the Annual Shariah Compliance Review Plan FY2021 as approved by the relevant
authorities encompassing mandated regulatory, risk-based review and thematic review. Besides, a
strategic alliance was achieved with the other internal control functions, i.e., Shariah Risk Management
and Shariah Audit in performing an ad-hoc Shariah compliance review on the common areas. The
objectives of these reviews are to provide assurance on the net compliance risk and identify the
Shariah Non-Compliance (SNC) risk in designated controls, and where necessary to recommend
appropriate mitigation measures.
Becomes the reference point in performing an in-depth review and/or investigation on any reported
incidents that may give implications to the Shariah compliance status of the Bank’s operations,
business, affairs and activities. The decision is crucial as the result will determine the state of purity
of the income to be further recognised by the Bank. The process involves scrutinising the details of
the issues raised and proposing remedial action plan which may entail corrective and preventive
measures.
In building up the Shariah compliance culture within the Bank, a continuous collaboration amongst
the Shariah governance and control functions was established via series of Shariah Townhall. The
programme served as a catalyst to heighten the awareness level and intensify compliance with the
current and relevant Shariah rules and regulations so as to curb any possible SNC event.
In view of the hardship faced by Malaysians due to the COVID-19 pandemic and recent floods, BNM’s
focus will be towards championing the plight formulising measures to aid the impacted sectors.
BIMB will continue to develop its products and services to suit our customers’ need including catering
for unserved/underserved market by improving our digital outreach. We remain vigilant in disseminating
the regulations given by BNM to ensure BIMB’s strategies are in tandem with the National Agenda.
While outsourcing is necessary for operational efficiency, we continue to instil strict governance in
reviewing each outsourcing party to uphold the zero tolerance principle particularly on corruption,
bribery and adverse media. Effective collaboration with our service providers will create synergy and
improve our service deliveries and spurring “Real Economy” as part of our VBI initiatives.
In safeguarding customers’ information and data, we have instilled the Compliance Culture by
creating awareness amongst our staff and service providers on the importance of preserving banking
secrecy and confidentiality. Any incidents are detected through our review process and thoroughly
investigated to ensure the appropriate remedial actions are taken to avoid recurrence. We do not
tolerate any unethical practices and any transgression are severely dealt with by imposing consequence
management action to the parties involved.
202
INTERNAL CONTROL SYSTEM • Oversight by Other Board Committees
The Board has established an internal control system to There are other Board Committees established to assist
provide an effective governance and oversight, which include the Board in discharging its overall governance
the following key components:- responsibilities and oversight functions. These Board
Committees are the Board Nomination & Remuneration
• Organisational Structure Committee (BNRC), the Board Financing Review
Committee (BFRC), the Board Strategic & Sustainability
An organisational structure with clear defined lines of
Committee (BSSC) and the Board IT Committee (BITC).
responsibility and accountability has been established
The Board has mandated these Board Committees the
in line with the business and operating requirements to
authority to review all matters within the scope defined
support a strong control environment.
in their respective Terms of Reference and make the
relevant recommendations to the Board.
• Annual Business Plan and Budget
ll key operating divisions are involved in the preparation
A • Management Executive Committees
of the annual business plan and budget taking into
The Management has set up various Management
consideration the established risk appetite. They will
Executive Committees to assist and support the various
have to go through a challenge session with the
Board Committees in overseeing the relevant areas of
Management before the proposal is deliberated by the
business operations and controls. This includes
Board for approval. The Board will regularly review the
Management Committee, Management Risk & Control
performance achievements and any revision to the
Committee, Asset & Liability Management Committee,
business plan and budget will be re-tabled for the Board’s
Management Audit Committee, Management IT
approval.
Committee, Business Continuity Management Committee
and Financing Committees.
• Authority Limits
The Board has approved the Authority Limits document • Policies and Guidelines
which outline the approving authority and the approving
Several policies and guidelines governing the Group’s
limits to the respective Management Committees as
business and operations have been put in place and are
well as to the relevant Head of Division.
made available to employees via the intranet portal for
reference and compliance. These policies and guidelines
•
Oversight by the Board Audit & Examination Committee
are regularly reviewed and updated by the respective
(BAEC)
business and support units to cater for any changes in
The BAEC is established to assist the Board in ensuring laws and regulations as well as changes to the business
a reliable and transparent financial reporting process and operating environments.
and internal control system are in place within the Group
and provide an independent oversight on the effectiveness • Performance Review
of the internal and external audit functions. Material
The Board is regularly apprised on the key financial
control lapses are escalated to the BAEC for deliberation.
position of BIMB and its major subsidiaries at every Board
The BAEC also deliberates any unresolved audit findings
meeting and where necessary, the Board may instruct
to ensure the Management undertakes the relevant
the Management to take necessary actions to resolve
remedial actions within the timeline.
any issues identified in a timely manner.
• Oversight by the Board Risk Committee (BRC)

• Regular Updates on Risk Management Report
The BRC assists the Board in ensuring that a sound and
Risk Management frameworks, policies, guidelines, tools
robust risk management framework as expected by BNM
and methodologies are regularly reviewed and updated
is in place and effectively implemented. The BRC provides
to ensure relevance to the current business environments
an independent oversight on the Management’s activities
and regulatory requirements. The risk management
in managing credit risk, market risk, liquidity risk,
report of the Bank and its major subsidiaries are also
operational risk (which includes legal risk, compliance
regularly deliberated at the BRC, where any key risk
risk, Shariah non-compliance risk, IT risk and business
issues will be highlighted for discussion.
continuity risk), sustainability risk (including climate-
related risk) and other relevant risk and to ensure that
the risk management process is in place and functioning
for the Group.
203
• Regular Updates on Compliance Report • Whistle Blowing Policy

Regular review on Compliance frameworks, policies, The Whistleblowing Policy has been put in place to
guidelines, tools and methodologies are carried out to provide an avenue for all employees of the Group and
ensure it remains relevant to the business requirements members of the public to disclose any unethical or
and the applicable laws and regulations. All Compliance improper conduct within BIMB Group and to provide
activities undertaken by the Group are regularly reported protection for employees and members of the public
and deliberated at the BRC. who report such allegations.
• Human Resources Management • Anti-Bribery Corruption Policy

The effectiveness of the risk management and internal The Group’s Anti-Bribery and Corruption Policy (ABCP)
control system of the Group relies on the responsibility, was developed as part of BIMB’s commitment to integrity
integrity and sound judgment of its employees. Hence, and sustainable way of doing business. The ABCP is
the Group has established policies and procedures aligned with all relevant laws and regulations, including
governing the recruitment, appointment, performance the National Anti-Corruption Plan (NACP) and Malaysian
management and rewards as well as procedures relating Anti-Corruption Commission (MACC) Act 2009. The ABCP
to discipline, termination and dismissal for the employees. underpins a zero-tolerance approach and guides BIMB
Human capital development, talent management and to ensure that all opportunities on corruption and any
succession planning are given priority to ensure action in relation to bribery, conflict of interest, malpractice,
sustainability. abuse of power could be effectively and efficiently
addressed as well as ensuring compliance with all
• Code of Ethics applicable anti-corruption policy.
The Code of Ethics has been established by the Group
to ensure a high standard of ethical and professional • Independent Assurance by the Internal Auditors
conduct is upheld by all employees in performing their The Board has established the Internal Audit function
duties and responsibilities. New recruits are briefed on to provide independent assurance on the adequacy and
the Code of Ethics and they have to sign a declaration effectiveness of the governance, risk management and
upon joining the organisation. internal control. The Internal Audit is headed by the
Group Chief Internal Auditors who report functionally to
• Fraud Management the BAEC and administratively to the Group CEO. The
Special Investigation Unit (SIU) has been established internal audit process and activities adopt the standards
within the Integrity and Governance Department of and principles outlined in the Internal Control Framework
Group Compliance Division and it is responsible for of Committee of Sponsoring Organisation of the Treadway
assessing complaints received, detection and investigation Commission (COSO) and the objectives set by the Institute
of any possible internal or external fraud reported. SIU of Internal Auditors’ International Professional Practices
strives to maintain absolute transparency of reporting Framework which comprises the core principle for the
and independence of investigation without influence Professional Practice of Internal Auditing, the definition
from any internal or external parties. The SIU function of Internal Auditing and Code of Ethics.
is overseen by the BAEC and where it involves high
profile and/or whistleblowing cases, the Chief Integrity
& Governance Officer (CIGO) reports directly to the
Designated Independent Non-Executive Director who is
also the Chairman of the BAEC.
204
CORRUPTION RISK MANAGEMENT (CRM)
As reported in the preceding annual report, the Group has completed its maiden CRM exercise in FY2020 in which the
Group has zero critical risks identified and, overall, the residual corruption risks were rated as satisfactory without any
major concerns. Since the completion of CRM, the Group has formalised the CRM framework into a holistic policy known
as the Group Corruption Risk Management Policy (GCRMP) in FY2021.
In brief, the GCRMP provides the principles and methodology for carrying out the corruption risk assessment for the
Group and sets out the CRM review requirement. The policy reflects the Group’s commitment to upholding the highest
standards of integrity and ethics, in keeping with the Group’s zero-tolerance stance to all types of bribery and corruption,
as well as a commitment to conducting business with integrity, honesty, and respect.
CRM Review
The Group, through the Governance & Integrity Unit (GIU) of the Integrity & Governance Department (IGD), Group
Compliance Division, has begun a CRM Review to meet the need for Adequate Procedures1 - Principle IV: Systematic
Review, Monitoring, and Enforcement.
Key
To validate the current controls Objectives To assess for gaps in the
and their effectiveness as of CRM control
identified by each stakeholder Review
In this respect, the BAEC has, in FY2021 approved a three-year CRM Review plan that outlines the selection and priority
review criteria for better deployment of resources. Under the CRM Review Plan, high-risk stakeholders are reviewed within
one (1) year, whilst medium and low-risk stakeholders will be reviewed within two (2) and three (3) years, respectively.
Most of
the current controls
In FY2021, GIU Its findings There were no
were attested to give
completed ten were reported 'poor' ratings reasonable assurance
(10) reviews to the BAEC assigned by in mitigating the
the review identified
corruption risk
Adequate Procedures refers to the statutory defence against corporate liability prosecution as accorded under Section
1
17A (4) of the MACC Act 2009.
205
Organisational Anti-Corruption Plan (OACP) 2022-2025
The National Anti-Corruption Plan 2019-2023 (NACP), which was officially launched by the Prime Minister on 29 January
2019 suggested OACP as an anti-corruption document at the organisational level to manage corruption issues. In 2021,
BIMB continued to undertake significant work to enhance its corporate governance and integrity initiatives to be in line
with the NACP. The work culminated in the development of BIMB’s OACP, 2022-2025, which will serve as the foundation
for all BIMB’s initiatives in this area in the coming years.
Key Steps of OACP Development

BIMB’s OACP was developed with a vision towards a corrupt-free organisation and a mission to address problems and
weaknesses of governance, integrity and anti-corruption in related areas and activities in the organisation. Five (5) key
steps were involved in developing BIMB’s OACP based on the TRUST principles (Top Level Commitment, Risk Assessment,
Undertake Control Measure, Systematic Review and Training & Communication) recommended by the Guidelines on
Adequate Procedures issued pursuant to the MACC Act.
01 02 03 04 05
TOP LEVEL DATA ANALYSIS CORRUPTION ACTION PLAN MONITORING &

COMMITMENT RISK EVALUATION
Analyse data in • Prepare
MANAGEMENT
Establishment the form of strategic • Monitor,
(CRM)
of Anti- reports of the objective & evaluate and
Corruption real state of Process of action plan to report progress
Committee and governance, identifying risk adress issues of of the OACP.
formation of integrity and and weaknesses corruption, • Monitor
OACP anti-corruption that lead to governance implementation
Development weaknesses: opportunities of and integrity. of OACP action
Committee • MACC/RMP corruption to • Milestone as an plan and ensure
(ODC). records; occur. indicator to compliance to
• Staff’s measure the plan.
disciplinary achievement. • Coordinate and
records; and Department to engage
• Internal Audit/ be responsible stakeholders.
Compliance and
report. accountable for
the initiatives
assigned.
It is important to establish the ‘tone from the top’ where BIMB implemented clear policies to address corruption risks
and proper reporting channels for any suspected and/or actual corruption incidents. IGD also carried out data analysis
and CRM exercise to identify potential risk and weakness which may lead to occurrence of corruption activities in the
organisation. Subsequently, IGD, through its role as the OACP Development Committee (ODC) Secretariat conducted
discussions with the potential corruption risk owners, relevant departments and stakeholders to develop strategic objectives
and clear action plans to address these potential corruption, governance and integrity issues. Benchmarking exercises
against ministries, government agencies and other corporations were also carried out to ensure BIMB’s OACP is relevant
and achieves the highest level of standard expected from a premier financial institution.
206
Monitoring and implementation of the OACP action plan and initiatives is done through two (2) main reporting structures,
where IGD reports on the OACP implementation to the Management Committee and BAEC twice a year and to the
relevant regulators on the progress, as and when required.
OACP Overview
Tailored to Bank Based on CRM

Islam’s needs Outcome
Formulated Based on our
through focused yet
consultation with comprehensive
our experienced CRM exercise
external which considers
consultant and 11 past data and
5 future 161
various internal STRATEGIC
CHAPTERS possibilities. INITIATIVES
discussions. OBJECTIVES
53
Covering all aspects 4 Adopting National Collaborative
POTENTIAL
Chapters were STRATEGIES Anti-Corruption efforts
RISKS
developed in line Plan (NACP) Initiatives were
with the Malaysian recommendations developed
Anti-Corruption Testament of through
Academy (MACA) commitment from several
Certified Integrity BIMB to achieve workshops and
Officer (CeIO) our vision as the discussions.
modules and preferred Islamic Challenge
benchmarking financial institution session was
exercise against other with the highest also conducted
organisations. standards of to determine
integrity, the viability of
governance and the initiatives
accountability to all proposed.
our stakeholders.
The OACP covers four (4) main priority areas, namely Business, Branch Operations, Administration & Support and
Governance. IGD reviewed processes involved at BIMB for all departments and divisions and a total of 161 initiatives are
included covering short, medium and long term to ensure BIMB is free from corruption to be in line with the goals of
the NACP. This plan will be constantly reviewed and updated according to BIMB’s changes and organisation strategic
requirements.
Three (3) IGD staff have also completed the Certified Integrity Officer (CeIO) programme administered by the Malaysian
Anti-Corruption Commission Academy (MACA). Briefings, workshops and awareness programmes on integrity, anti-corruption
initiatives and the Bank’s internal policies are consistently carried out to cover all levels of operation at BIMB.
It is hoped that the OACP will minimise misconduct involving integrity and corruption among BIMB staff, creating a
work environment that emphasises team spirit, harmony, morality, ethics and having a first-class mind. In turn, the
continuous improvement of our processes and procedures will increase customer confidence in our services for the
common well-being and prosperity. BIMB will continue to be vigilant to ensure our processes and practices foster good
governance and integrity.
207
REVIEW OF THE STATEMENT BY EXTERNAL AUDITORS
The external auditors have reviewed this Statement on Risk Management and Internal Control pursuant to the scope set
out in the Audit and Assurance Practice Guide 3 (AAPG 3) (Revised 2018), Guidance for Auditors on Engagements to Report
on the Statement on Risk Management and Internal Control included in the Annual Report issued by the Malaysian Institute
of Accountants (MIA) for inclusion in the Annual Report of the Group for the financial year ended 31 December 2021.
Based on the review conducted, the external auditors have reported to the Board that nothing has come to their attention
that would cause them to believe that this Statement:
(a) has not been prepared in accordance with the disclosures required by paragraphs 41 and 42 of the
Statement on Risk Management and Internal Control: Guidelines for Directors of Listed Issuers; or
(b) is factually inaccurate.
AAPG 3 (Revised 2018) does not require the external auditors to consider whether the Directors’ Statement on Risk
Management and Internal Control covers all risks and controls, or to form an opinion on the adequacy and effectiveness
of the Group’s risk management and internal control system including the assessment and opinion by the Board of
Directors and Management thereon. The auditors are also not required to consider whether the processes described to
deal with material internal control aspects of any significant problems disclosed in the Annual Report will, in fact, remedy
the problems.
This statement is made in accordance with the resolution of the Board dated 15 April 2022.
208
STATEMENT ON DIRECTORS’
RESPONSIBILITY
This statement is prepared pursuant to the Companies Act, 2016 and the Main Market Listing Requirements of Bursa
Malaysia Securities Berhad. The Directors are required to prepare financial statements which give a true and fair view of
the state of affairs of the Group and the Company as at the end of each financial year and of their cash flows for that
year then ended.
In preparing the financial statements for the year ended 31 December 2021, the Directors have:
• adopted suitable accounting policies and applied them consistently;

• made judgments and estimates that are reasonable and prudent;
• ensured applicable Financial Reporting Standards have been followed; and
• prepared the financial statements on a going concern basis.
The Board has the overall responsibility to take all steps as are reasonably necessary to safeguard the assets of the Group
to prevent and detect fraud and other irregularities.
This statement is made in accordance with a resolution of the Board dated 15 April 2022.
209
FINANCIAL
STATEMENTS
211 Directors’ Report
218 Statement by Directors
219 Report of the Shariah Supervisory Council
225 Statutory Declaration
226 Independent Auditors’ Report
230 Statements of Financial Position
231 Statements of Profit or Loss
232 Statements of Other Comprehensive Income
233 Consolidated Statement of Changes in Equity
237 Statements of Cash Flow
241 Notes to the Financial Statements
375 Pillar 3 Disclosure
210
DIRECTORS’
REPORT
for the financial year ended 31 December 2021
The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Bank
for the financial year ended 31 December 2021.
PRINCIPAL ACTIVITIES
The Bank is principally engaged in Islamic banking business and the provision of related services. The principal activities
of the subsidiaries are as stated in Note 13 to the financial statements. There has been no significant change in the nature
of these activities during the financial year.
The address of the registered office of the Bank is Level 32, Menara Bank Islam, No. 22, Jalan Perak, 50450 Kuala Lumpur.
During the current financial year, BIMB Holdings Sdn. Bhd. (formerly known as BIMB Holdings Berhad) (“BHB”), the former
holding company of the Bank have undertaken an internal reorganisation as disclosed in Note 46 to the financial
statements respectively.
SUBSIDIARIES
The details of the Bank’s subsidiaries are disclosed in Note 13 to the financial statements.
RESULTS
Group Bank
RM’000 RM’000
Profit before zakat and tax 704,221 710,625

Zakat and tax expense (169,916) (169,478)
Profit for the year 534,305 541,147
RESERVES AND PROVISIONS

There were no material transfers to or from reserves or provisions during the financial year under review except as
disclosed in the financial statements.
DIVIDENDS
Since the end of the previous financial year, the amount of dividends paid by the Bank were as follows:
RM’000
In respect of the financial year ended 31 December 2020 as reported in the Directors’ Report of that
year:
Final dividend of approximately 5.37 sen per ordinary share paid on 4 June 2021 139,639
In respect of the financial year ended 31 December 2021:

Interim dividend of approximately 10.93 sen per ordinary share paid on 20 January 2022^ 226,893
366,532
^ The dividend is based in number of shares after consolidation as disclosed in Note 46(v)(ii).
The Directors do not recommend final dividend to be paid for the financial year ended 31 December 2021.
211
DIRECTORS’ REPORT
DIRECTORS OF THE BANK

Directors of the Bank who served during the financial year until the date of this report are:
Tan Sri Dr. Ismail Hj. Bakar (Chairman)
Azizan Ahmad
Datuk Nik Mohd Hasyudeen Yusoff
Mashitah Haji Osman
Dato’ Sri Amrin Awaluddin (appointed on 10 September 2021)
Mohd Asri Awang (appointed on 1 October 2021)
Datuk Bazlan Osman (appointed on 7 January 2022)
Puan Nuraini Ismail (appointed on 7 January 2022)
Zahari @ Mohd Zin Idris (retired on 20 September 2021)
Noraini Che Dan (deceased on 26 August 2021)
DIRECTORS OF THE SUBSIDIARIES

Directors of the subsidiaries who served during the financial year until the date of this report are:
Name of Company Directors
Dr. Mohd Afzanizam Abdul Rashid (Chairman) (appointed

Al-Wakalah Nominees (Tempatan) Sendirian Berhad on 1 January 2022)
Sazrin Mohd Razak (appointed on 1 January 2022)
Maria Mat Said (resigned on 1 January 2022)
Mohamad Jamali Haron (resigned on 1 January 2022)
BIMB Investment Management Berhad Mohamed Ridza Mohamed Abdulla

Najmuddin Mohd Lutfi
Dr. Mohd Hatta Dagap
Azizan Abd Aziz
Datin Maznah Mahbob
Dato’ Dr. Mohamad Zabidi Ahmad (appointed on
8 October 2021)
Dato’ Ghazali Awang (resigned on 31 October 2021)
Bank Islam Trust Company (Labuan) Ltd. Zahari @ Mohd Zin Idris (Chairman)
and its subsidiary: Maria Mat Said
BIMB Offshore Company Management Services Maria Mat Said (Chairman)
Sdn. Bhd. Zaharin Mohd Ali (appointed on 31 December 2021)
Zahari @ Mohd Zin Idris (retired on 3 January 2022)
Ahmad Haliman Abdul Halim (Chairman)

Farihan Corporation Sdn. Bhd. (appointed on 1 January 2022)
Iskandar Shah Zulkarnain (appointed on 1 January 2022)
Zaharin Mohd Ali (resigned on 1 January 2022)
Maria Mat Said (resigned on 1 January 2022)
212
DIRECTORS OF THE SUBSIDIARIES (CONTINUED)
Name of Company Directors
BIMB Holdings Sdn. Bhd. (converted status from Mohamed Iran Moriff Mohd Shariff (Chairman) (appointed
BIMB Holdings Berhad on 15 November 2021) on 30 October 2021)
Said Mohd Jawahir Said Bahari (appointed on
30 October 2021)
Tan Sri Ambrin Buang (retired on 1 November 2021)
Datuk Nik Mohd Hasyudeen Yusoff (retired on
1 November 2021)
Zahari @ Mohd Zin Idris (retired on 1 November 2021)
Mohd Muazzam Mohamed (resigned on 1 November 2021)
Noraini Che Dan (deceased on 26 August 2021)
BIMB Securities (Holdings) Sdn. Bhd. Mohamad Jamali Haron (appointed on 24 February 2022)
Sarina Mohd Ali (appointed on 24 February 2022)
Zahari @ Mohd Zin Idris (retired on 3 January 2022)
Adi Asri Baharom (resigned on 25 February 2022)
Kamaruzaman Abdullah (appointed on 31 December 2021
and resigned on 25 February 2022)
Subsidiary of BIMB Securities (Holdings) Sdn. Bhd.

BIMB Securities Sdn. Bhd. Adi Asri Baharom
Dr. Mohd Hatta Dagap
Kamaruzaman Abdullah
Muhamad Lukman Musa @ Hussain (appointed on
1 February 2022)
Dr. Normazilah Mahzan (appointed on 1 February 2022)
Zahari @ Mohd Zin Idris (retired on 31 December 2021)
Mustapha Hamat (retired on 31 December 2021)
Subsidiaries of BIMB Securities Sdn. Bhd.

BIMSEC Nominees (Tempatan) Sdn. Bhd. Aida Sharini Abdul Wahab
Adam Abdul Aziz (appointed on 31 December 2021)
BIMSEC Nominees (Asing) Sdn. Bhd. Kamaruzaman Abdullah (resigned on 3 January 2022)
Roziah Jais (resigned on 3 January 2022)
Syarikat Al-Ijarah Sdn. Bhd Mohamad Jamali Haron (appointed on 31 December 2021)
Mohd Zamri Hassan (appointed on 31 December 2021)
Salih Amaran Jamiaan (retired on 3 January 2022)
Khairudin Idris (retired on 3 January 2022)
None of the Bank and subsidiaries’ Directors holding office as at 31 December 2021 had any interest in the ordinary shares
of the Bank and of its related corporations during the financial year.
213
DIRECTORS’ REPORT
DIRECTORS’ BENEFITS
Since the end of the previous financial year, no Director of the Bank has received nor become entitled to receive any
benefit (other than those fees and other benefits included in the aggregate amount of remuneration received or due and
receivable by Directors as shown in the Note 32 to financial statements or the fixed salary of a full time employee of the
Bank) by reason of a contract made by the Bank or a related corporation with the Director or with a firm of which the
Director is a member, or with a firm in which the Director has a substantial financial interest.
There were no arrangements during and at the end of the financial year which had the object of enabling Directors of
the Bank to acquire benefits by means of the acquisition of shares in or debentures of the Bank or any other body
corporate.
DIRECTORS’ INTERESTS IN SHARES AND DEBENTURES

According to the Register of Directors’ Shareholdings required to be kept under Section 59 of the Companies Act 2016,
none of the Directors who held office at the end of the financial year held any shares or debentures in the Company or
its subsidiaries during the financial year.
ISSUE OF SHARES AND DEBENTURES

During the financial year, the Bank has issued 42,966,054 new ordinary shares at a consideration of RM3.25 each arising
from the Dividend Reinvestment Plan. As disclosed in Note 46 to the financial statements, the Bank has completed a
consolidation of its ordinary shares into 2,075,872,514 Bank Islam shares to match BHB’s outstanding shares in issue so
that the distribution of the Bank shares will be on a one-for-one basis. There were no debentures issued during the
financial year.
OPTIONS GRANTED OVER UNISSUED SHARES

No options were granted to any person to take up unissued shares of the Bank during the financial year.
INDEMNITY AND TAKAFUL COSTS

During the financial year, the Bank maintained on group basis, a Directors’ and Officers’ Liability Takaful of up to an
aggregate limit of RM50 million against any legal liability incurred by the Directors and Officers in the discharge of their
duties while holding the office. The Directors and Officers shall not be indemnified by such takaful for any deliberate
negligence, fraud, intentional breach of law or breach of trust proven against them. The amount of premium paid was
RM207,575 with certain reimbursement made by the Directors and Officers.
In previous financial year, through the former immediate holding company, BIMB Holdings Berhad has maintained a
Directors’ and Officers’ Liability Takaful for the Directors and Officers of BIMB Holdings and its subsidiaries (excluding
Syarikat Takaful Malaysia Keluarga Berhad and its subsidiaries) of up to an aggregate limit of RM50 million against any
legal liability incurred by the Directors and Officers in the discharge of their duties while holding the office. The Directors
and Officers shall not be indemnified by such takaful for any deliberate negligence, fraud, intentional breach of law or
breach of trust proven against them. The amount of premium paid was RM231,372 with certain reimbursement made by
the Directors and Officers.
214
OTHER STATUTORY INFORMATION

Impaired financing
Before the financial statements of the Group and of the Bank were made out, the Directors took reasonable steps to
ascertain that proper actions had been taken in relation to the writing off of bad financing and the making of impairment
provisions for impaired financing, and have satisfied themselves that all known bad financing have been written-off and
adequate impairment provisions made for impaired financing.
At the date of this report, the Directors are not aware of any circumstances that would render the amount written-off for
bad financing, or amount of impairment provisions for impaired financing in the financial statements of the Group and of
the Bank, inadequate to any substantial extent.
Current assets
Before the financial statements of the Group and of the Bank were made out, the Directors took reasonable steps to
ascertain that any current assets, other than financing, which were unlikely to be realised in the ordinary course of
business at their values as shown in the accounting records of the Group and of the Bank have been written down to
their estimated realisable value.
At the date of this report, the Directors are not aware of any circumstances that would render the values attributed to the
current assets in the financial statements of the Group and of the Bank to be misleading.
Valuation methods
At the date of this report, the Directors are not aware of any circumstances which have arisen which would render
adherence to the existing methods of valuation of assets or liabilities of the Group and of the Bank to be misleading or
inappropriate.
Contingent and other liabilities

At the date of this report, there does not exist:
(a) any charge on the assets of the Group or of the Bank which has arisen since the end of the financial year and which
secures the liabilities of any other person, or
(b) any contingent liability in respect of the Group or of the Bank that has arisen since the end of the financial year other
than those incurred in the ordinary course of business.
No contingent or other liability of any company in the Group has become enforceable, or is likely to become enforceable
within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may
substantially affect the ability of the Group and of the Bank to meet their obligations as and when they fall due.
215
DIRECTORS’ REPORT
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 expectations on financial reporting

In the preparation of the financial statements, the Directors have taken reasonable steps to ensure that Bank Negara
Malaysia (“BNM”)’s expectations on financial reporting have been complied with, including those as set out in the Financial
Reporting for Islamic Banking Institutions and Circular on the Application of MFRS.
2022 BUSINESS PLAN AND OUTLOOK

Business Plan, Strategy and Future Outlook
Economic recovery is expected in FY2022 with Gross Domestic Product (“GDP”) of 5.3%, despite downward revision of 2021
GDP to 3.0% (previous projection: 4.2%). This is in light of gradual normalisation of domestic economic activities amid higher
vaccination rates and easing restrictions on production capacity which will bolster GDP expansion alongside improving
global trade.
The domestic banking sector is expected to stay resilient in 2022 amid the challenges of the Covid pandemic. Even as
impairments begin to surface in the coming year, credit losses will be amply cushioned by healthy earnings accretion,
comfortable provisioning buffers and solid capitalisation. Driven by household segment with mortgages as the main driver,
overall sentiments shall remain positive for banking sector with continued support to viable consumers facing temporary
financial difficulties through repayment assistance packages. In addition, Bank Negara Malaysia (“BNM”) has released a new
five-year Financial Services Blueprint 2022 – 2026 in January this year. The blueprint is anchored on 4 key thrusts in
fostering greater market dynamism and advancing the sustainability agenda to support the transition towards a greener
economy.
We have gone into the first year of LEAP25. Our 5-year aspiration of LEAP25 is to increase the asset size and ESG-rated
financing assets, reduce Cost-to-Income ratio, sustain superior industry Return-to-Equity (“ROE”), increase our non-fund
based income (“NFBI”) contribution, create positive social impact and retain high-performing talents. The Bank’s targets are
anchored by the six pillars namely Sustainable Prosperity, Value Based Culture, Community Empowerment, Customer
Centricity, Real Economy and Digitalisation.
Gearing up for 2022 as the economy moves into the recovery period, the Bank will be focusing on the goal and ensuring
effective execution of our strategies. Our customers will always be at the heart of our strategy execution. Cost rationalisation
will remain our focus and spending will be allocated to our priority areas.
216
2022 BUSINESS PLAN AND OUTLOOK (CONTINUED)

Business Plan, Strategy and Future Outlook (continued)
The Bank is currently approaching the tail end of its IT Blueprint Phase 1, which was started in the middle of 2021. As we
move into the Phase 2 of the IT Blueprint, we are positive that this will escalate the digitalisation of the Bank’s operations.
In addition, the Bank is gearing towards the launch of its own digital channel in 2022, which is expected to further improve
customer experience.
Subsequent the completion of the restructuring in Q4 2021, the Bank has become the first pure-play full-fledged Islamic
financial institution listed on the Main Market of Bursa Malaysia. Consequently, the Bank will have access to a wider and
more diverse capital base, allowing for a greater opportunity for future expansion programmes and business growth.
RATINGS ACCORDED BY EXTERNAL RATING AGENCY

During the financial year, the Bank’s rating was re-affirmed as follows:
Rating agency Date re-affirmed Ratings
RAM Rating Services Berhad 10 December 2021 Long-term rating: AA3

Short-term rating: P1
Outlook: Stable
AUDITORS
The auditors, PricewaterhouseCoopers PLT (LLP0014401-LCA & AF1146), have indicated their willingness to accept
reappointment.
The auditors’ remuneration is disclosed in Note 31 to the financial statements.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tan Sri Dr. Ismail Hj. Bakar

Director

Director
Kuala Lumpur,
Date: 7 March 2022
217
STATEMENT BY
DIRECTORS
pursuant to Section 251(2) of the Companies Act 2016
In the opinion of the Directors, the financial statements set out on pages 230 to 374 are drawn up in accordance with
Malaysian Financial Reporting Standards, International Financial Reporting Standards, and the requirements of the
Companies Act 2016 in Malaysia, and Shariah requirements so as to give a true and fair view of the financial position of
the Group and of the Bank as of 31 December 2021 and of their financial performance and cash flows for the financial
year then ended.
Signed on behalf of the Board of Directors in accordance with a resolution of the Directors:
Tan Sri Dr. Ismail Hj. Bakar

Director

Director
Kuala Lumpur,
Date: 7 March 2022
218
REPORT OF THE SHARIAH

SUPERVISORY COUNCIL
‘Salam Sejahtera’
In carrying out the roles and responsibilities of the Shariah Supervisory Council (SSC) as prescribed in the Shariah
Governance Policy Document (SGPD) issued by Bank Negara Malaysia (BNM), and in compliance with our letter of
appointment, we hereby submit our report for the financial year ended 31 December 2021.
The Bank’s management ensures that its conducts, operations, business, affairs, and activities follow the relevant Shariah
rules and principles. Our responsibility is to form an independent opinion based on the review of conduct and businesses
of the Bank in producing this report.
We had convened nine (9) meetings during the financial year in which we reviewed, among others, products, transactions,
services, processes and documents of the Bank.
In performing our roles and responsibilities, we had obtained all the information and explanations which we considered
necessary in providing us with sufficient evidence to give a reasonable assurance that the Bank has complied with the
applicable Shariah rules and principles.
At the management level, the Group Chief Shariah Officer (cum Secretary of the SSC), who functionally reports to the SSC,
oversees the conduct and effectiveness of Group Shariah Division’s (GSD) functions that carry out the roles and
responsibilities related to the Shariah secretariat, research and advisory. The control functions further confirm the Bank’s
Shariah governance comprising of Shariah Risk Management, Shariah Compliance and Shariah Audit that resides in the
Group Risk Management Division, Group Compliance Division, and Group Internal Audit Division, and reports directly to
the Group Chief Risk Officer, Group Chief Compliance Officer, and Group Chief Internal Auditor respectively.
The following are the significant developments that took place during the financial year, which reside under our purview:
APPROVALS
To ensure smooth and timely execution of our business operation, we empower the Group Chief Shariah Officer (GCSO)
and Senior Manager of Group Shariah Division to approve a non-substantial variation of Shariah related matters. The
approvals are then reported to us periodically as notification. Concurrently, the GCSO or his representative is also sitting
as a member in the following committees to advise the Bank on matters relating to Shariah rules and principles:
i) Management Committee;
ii) Sadaqa House and Zakat Committee (Vice Chairman);
iii) Management Risk Control Committee;
iv) Operational Risk Control Committee;
v) Underwriting and Investment Committee;
vi) Product Development Oversight Steering Committee;
219
Report of the Shariah Supervisory Council
APPROVALS (CONTINUED)
vii) Rescheduling & Restructuring Oversight Committee;
viii) Financing Committee A;
ix) Financing Committee B;
x) iTEKAD Asnaf Assessment Committee; and
xi) Tender Evaluation Committee for Vendor Management.
SHARIAH GOVERNANCE
We had approved in our meetings several initiatives undertaken by the Bank in strengthening its Shariah governance,
including the review of the Shariah Compliance Policy and Shariah Compliance Guideline of Bank Islam Labuan Offshore
Branch (BILOB), Charity Fund Management Guideline and Business Zakat Guideline for subsidiaries, i.e. Farihan Corporation
Sdn Bhd and Al-Wakalah Nominees (Tempatan) Sdn. Bhd. that aims, among others, to set out the Shariah governance
framework within the Bank and ensure our business operations are in line with the Shariah rules and principles.
SHARIAH RISK MANAGEMENT

We observed that the Bank continuously implemented appropriate measures in managing its Shariah non-compliance
(SNC) risk.
Firstly, the implementation of Risk Control Self-Assessment (RCSA) aims to assess the significance of identified SNC risks
and the effectiveness of the controls in the respective functional areas.
Since the introduction of RCSA, a continuous process of identifying and assessing SNC risks at various functional areas
have been carried out by all Risk Controllers (RCs). The RCs are also responsible for driving and implementing appropriate
controls to mitigate any SNC events while achieving the business objectives of their respective areas. The semi-annually
RCSA result, specifically the SNC risk exposures of the Bank, is also tabled in the Management Risk Control Committee
and our meetings for monitoring and oversight purposes.
Secondly, this year we continue our initiatives in establishing checklists to assist frontliners and relevant functions in
managing SNC. For instance, in 2020, the Bank established the Shariah Related Complaint Checklist to guide complaint
handlers and product owners to identify Shariah-related complaints lodged by customers. This year, the Bank has
extended the initiative by establishing the Shariah Non-Compliant Issues Checklist to identify Shariah related litigation
cases.
Finally, the Operational Risk Integrated System (ORIS) launch covers the Shariah compliance elements on top of
Operational Risk and Business Continuity Management. This platform can manage risk profiles for all business and
support units more effectively, thus reducing the probability of SNC or Shariah-related events.
220
SHARIAH REVIEW & SHARIAH AUDIT

The Shariah Review and Shariah Audit functions play a vital role in ensuring Shariah compliance by evaluating and
assessing activities in the Bank. Shariah Compliance Department performs shariah review under Group Compliance
Division, which conducts regular assessment and validation on the Bank’s compliance with Shariah in its operations,
business, affairs and activities, including new products and services implementation alongside adherence with relevant
regulatory requirements. Shariah Audit Department carries out Shariah Audit under Group Internal Audit Division which
provides an independent assurance to add value and improve the degree of Shariah compliance concerning such
activities.
Both Shariah Review and Shariah Audit plans for the financial year were reviewed and approved by us for their
implementation. Their reports were deliberated in our meetings to confirm that the Bank has complied with the applicable
rulings issued by the Shariah Advisory Council (SAC) of Bank Negara Malaysia, the SAC of Securities Commission (for
capital market-related matters) and our decisions. Throughout the year, the Shariah review and Shariah audit functions
have been conducted by the Bank, covering the following entities/areas:
Shariah Audit Shariah Review
1) Trade Operations Department 1) Trade Tawarruq-i (TTQ-i)
2) Consumer Collections Department and 2) Ar Rahnu Tawarruq

Consumer Recovery Department
3) Corporate Recovery Department 3) Personal Financing-i Asnaf
4) Consumer Banking Division 4) Takaful – 3rd Party New Products:
a) Takaful myWealth Plus; and

b) Takaful Tunai Ehsan.
5) Shariah Risk Management 5) Unit Trust - 3rd Party New Products:
a) BIMB Shariah IncomePlus Fund (BSIF);

b) Bank Islam Premier Fund (BIPF);
c) Eastspring Investments Dana Al-Islah;
d) Eastspring Investments Islamic Income Fund;
e) Eastspring Investments Dinasti Equity Fund;
f) Eastspring Investments Islamic Small-Cap Fund; and
g) Eastspring Investments Islamic Equity Income Fund.
6) Shariah Compliance Department 6) ASB Financing-i
7) Treasury & Markets Division 7) Targeted Repayment Assistance (TRA) (joint review)
8) Corporate Support Division 8) Annual Shariah Compliance Review on Compliance with

Labuan Financial Services Authority’s Guidelines on Shariah
Governance for Labuan Islamic Financial Institutions
(joint review)
9) Group Shariah Division 9) Assessment on the Implementation of Bank Negara

Malaysia’s Guidelines on Late Payment Charges for Islamic
Financial Institutions
10) Financial Inclusion Division 10) Assessment on the Implementation of Bank Negara
Malaysia’s Policy Document on Credit Card-i
221
SHARIAH REVIEW & SHARIAH AUDIT (CONTINUED)
Shariah Audit Shariah Review
11) Human Resources Division 11) Review on Trade Products Against the Bank Negara
Malaysia’s Shariah Policy Documents of Murabahah
12) Bank Islam Labuan Offshore Branch (BILOB)^ 12) Review on Term Deposit-i (Tawarruq) (TDT-i) and TDT-i
Special Against Bank Negara Malaysia’s Policy Document
of Tawarruq
13) 53 Bank Islam Branches^ 13) Qard Micro Financing (BangKIT)
14) Commodity Trading Platform – Bursa Suq al-Sila’ (BSAS)

(joint review)
15) Dynamic Hedging
16) Site Visit Verification on TPG Oil & Gas SB (Follow-Up

Review on Ableace Raakin’s Commodity Supplier)
(joint review)
^ Only Shariah related findings were escalated for deliberation and decision.
SHARIAH TRAINING & AWARENESS

During the year, various Shariah training and awareness programmes were designed and organised for the Bank Group’s
Board of Directors (BOD) and the Bank’s staff nationwide. These include:
a) Two (2) sessions for the BOD on ‘Maqasid Shariah in Islamic Banking’ and ‘Dinamika Dalam Fiqh Muamalat’ by
Professor Dato’ Dr Ahmad Hidayat Buang and Dr Shamsiah Mohamad, respectively;
b) Three (3) sessions of Bicara SSC on prevalent Shariah topics for the Bank’s staff by Sahibus Samahah Datu Hj. Kipli
Hj. Yassin, Dr Shamsiah Mohamad and Prof. Dr Asmadi Mohd Naim;
c) Four (4) sessions of quarterly Shariah Ruling and Resolution Training (Shariah Townhall) for the Bank’s Risk Controllers
provided by Group Shariah Division (GSD), Shariah Risk Management Department and Shariah Compliance
Department;
d) Shariah e-learning of Module 1 and Module 2 for the Bank’s staff with requirements to pass a specific test at the end
of the session and to complete both Modules by the end of July, August and September 2021. These Modules equip
the Bank’s staff with fundamental knowledge of Fiqh al-Muamalat (Islamic Law of Transactions), which is applied in
the practice of Islamic banking, requirements of Shariah governance within the industry and types of Shariah
contracts used for the Bank’s products and services;
e) Four (4) sessions of quarterly online Shariah training by the GSD personnel to further enhance the Shariah knowledge
in addition to Shariah e-learning Modules;
f) Shariah Online Quiz consisting of five (5) Modules, another platform for the Bank’s staff to assess their level of Shariah
knowledge in understanding the fundamental concepts and principles of Islamic banking with the issuance of a
certificate of achievement for each Module;
g) Six (6) Shariah awareness sessions conducted during induction programme for new Bank’s staff;
h) Two (2) Shariah risk sessions were conducted at head office as part of Operational Risk Management training, and
two (2) sessions at branch level targeted Risk Controller (RC) to increase awareness and Shariah risk culture among
staff. In addition to virtual training, the Shariah Risk e-learning module, which is part of Operational Risk Management
e-learning, is provided to staff as a mandatory course.
222
SHARIAH TRAINING & AWARENESS (CONTINUED)

The Bank has also continued to elevate Shariah and Islamic banking knowledge of its SSC members and relevant staff by
engaging relevant bodies such as Islamic Banking & Finance Institute Malaysia (IBFIM) and Association of Shariah Advisors
in Islamic Finance (ASAS). The SSC members and relevant staff attend the following certification programmes and
courses, among others:
1. Certified Shariah Advisors (CSA).

2. Certified Shariah Practitioner (CSP) and
3. Certified Professional Shariah Auditor (CPSA),
4. Islamic Financial Planner (IFP) programme,
SHARIAH NON-COMPLIANT EVENTS & INCOME

Throughout 2021, we confirmed five (5) incidences of SNC events:
1. Four (4) of the events have occurred at branches that are related to non-execution of aqad; and
2. One (1) event occurred at head office related to incomprehensive product structure for refinancing products.
We were also informed of the causes of the incidence and noted that the Bank had taken necessary corrective and
preventive measures to avoid the same incident from recurring in the future. We also confirmed that the SNC event and
the rectification plan were presented to the Board of Directors and us and reported to BNM according to the prescribed
reporting requirement.
Within the financial year, the Bank has collected Shariah non-compliant income amounting to RM41,182.96. A total of
RM39,692.42 from the collected amount was purified and disposed to charitable causes upon our approval, as noted in
Note 23 (Sources and Uses of Charity Fund).
BUSINESS ZAKAT
In the financial year, the Bank has fulfilled its obligation to pay zakat on its business to state zakat authorities by adopting
the growth capital computation method, in compliance with the Banking Zakat Management Manual (Pengurusan Zakat
Perbankan) issued by the Wakaf, Zakat and Hajj Department (Jabatan Wakaf, Zakat dan Haji – JAWHAR). The Bank paid
the zakat on the Bank’s portion, i.e. shareholders’ fund and other funds received by the Bank excluding depositors’ fund
and Investment Account Holders’ fund.
Several zakat authorities had mandated distribution of a portion of the zakat paid by the Bank based on their agent
(wakil) for distribution to eligible beneficiaries (asnaf) as guided by the Business Zakat Guideline we approved.
SAFEGUARDING THE INVESTMENT ACCOUNT HOLDERS (“IAH”) INTEREST

In ensuring that the interest of IAH is protected, we confirmed that the profit allocation for the IAH is per Shariah rules
and principles where the profit computation formula has been duly presented and approved by us. The performance of
the Investment Account has also been disclosed and reported via issuance of Fund Performance Report (FPR), which was
already made available on the Bank’s website.
223
SADAQA HOUSE INITIATIVE

In protecting the objective of the Sadaqa House fund and the interest of its donors, we confirmed that the fund
management and distribution are implemented per the applicable Shariah rules and principles. We have approved the
Sadaqa House Management Guideline that governs the conduct and management of the Sadaqa House fund to ensure
it operates in line with Shariah rules and principles. The Sadaqa House and Zakat Committee that the Group Chief
Financial Inclusion Officer chairs are mandated to oversee the conduct of the Sadaqa House initiative to be in line with
the Sadaqa House Management Guideline.
We had also reviewed the financial statement of the Bank and confirmed that the financial statement complies with the
Based on the above, in our opinion:
1) The contracts, transactions and dealings entered into by the Bank, excluding the five (5) Shariah non-compliance
incidents mentioned above, during the financial year ended 31 December 2021 that were reviewed comply with the
applicable Shariah rules and principles;
2) The allocation of profit and charging of losses relating to Investment Account conformed to the basis that we have
approved;
3) The computation, payment and distribution of business zakat comply with the applicable Shariah rules and principles;
4) All earnings realised from sources or by means prohibited by the applicable Shariah rules and principles were
disposed to charitable causes and refunded to the deserving counterparties.
On that note, we, members of Shariah Supervisory Council of Bank Islam Malaysia Berhad, do hereby confirm that, in our
level best, the operations of the Bank for the year ended 31 December 2021 have been conducted in conformity with the
We bear witness only to what we know, and we could not well guard against the unseen! (Surah Yusuf, verse:81)
Allah knows best.
Professor Dato’ Dr. Ahmad Hidayat Buang Dr. Shamsiah Mohamad
Associate Professor Dr. Yasmin Hanani Mohd Safian Sahibus Samahah Datu Hj. Kipli Hj. Yassin
Professor Dr. Asmadi Mohamed Naim
Kuala Lumpur,
Date: 7 March 2022
224
STATUTORY
DECLARATION
pursuant to Section 251(1)(b) of the Companies Act 2016
I, Azizan Abd Aziz, the officer primarily responsible for the financial management of Bank Islam Malaysia Berhad, do
solemnly and sincerely declare that the financial statements set out on pages 230 to 374 are, to the best of my knowledge
and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the
provisions of the Statutory Declarations Act, 1960.
Subscribed and solemnly declared by the above named Azizan Abd Aziz, MIA CA (32474) in Kuala Lumpur on 7 March
2022.
Azizan Abd Aziz
Before me,
225
INDEPENDENT
AUDITORS’ REPORT
to the members of Bank Islam Malaysia Berhad
(Incorporated in Malaysia) (Company No. 198301002944 (98127-X))
OUR OPINION
In our opinion, the financial statements of Bank Islam Malaysia Berhad (“the Bank”) and its subsidiaries (“the Group”) give
a true and fair view of the financial position of the Group and of the Bank as at 31 December 2021, and of their financial
performance and their cash flows for the financial year then ended in accordance with Malaysian Financial Reporting
Standards, International Financial Reporting Standards and the requirements of the Companies Act 2016 in Malaysia.
WHAT WE HAVE AUDITED

We have audited the financial statements of the Group and of the Bank, which comprise the statements of financial
position as at 31 December 2021 of the Group and of the Bank, and the statements of profit or loss, statements of other
comprehensive income, consolidated statement of changes in equity, statement of changes in equity and statements of
cash flows of the Group and of the Bank for the financial year then ended, and notes to the financial statements, including
a summary of significant accounting policies, as set out on pages 230 to 374.
BASIS FOR OPINION

We conducted our audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing. Our responsibilities under those standards are further described in the “Auditors’ responsibilities for the audit of
the financial statements” section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
INDEPENDENCE AND OTHER ETHICAL RESPONSIBILITIES

We are independent of the Group and of the Bank in accordance with the By-Laws (on Professional Ethics, Conduct and
Practice) of the Malaysian Institute of Accountants (“By-Laws”) and the International Ethics Standards Board for
Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards)
(“IESBA Code”), and we have fulfilled our other ethical responsibilities in accordance with the By-Laws and the IESBA Code.
OUR AUDIT APPROACH

As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial
statements of the Group and of the Bank. In particular, we considered where the Directors made subjective judgements;
for example, in respect of significant accounting estimates that involved making assumptions and considering future
events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal
controls, including among other matters, consideration of whether there was evidence of bias that represented a risk of
material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the financial
statements as a whole, taking into account the structure of the Group and of the Bank, the accounting processes and
controls, and the industry in which the Group and the Bank operate.
KEY AUDIT MATTERS

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the
financial statements of the Group and of the Bank for the current financial year. These matters were addressed in the
context of our audit of the financial statements of the Group and of the Bank as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
226
KEY AUDIT MATTERS (CONTINUED)
Key audit matters How our audit addressed the key audit matters
Impairment of Financing, Advances and Others

Refer to Note 2.5 and 2.9 of the summary We tested the design and operating effectiveness of the controls over
of significant accounting policies and impairment of financing, advances and others. These controls covered:
Notes 8, 27 and 39 (b)(iii) of the Financial
•• Identification of financing, advances and others that have experienced
Statements.
significant increase in credit risk or objective evidence of impairment;
We focused on this area due to the size •• Governance over the impairment processes, including model development,
of the carr ying value of f inancing, model approval and model validation;
advances and others, which represented
•• Data used to determine the allowances for credit losses including the
72.6% of total assets of the Group.
completeness and accuracy of the key inputs and assumptions into
respective ECL models; and
In addition, impairment is a highly
subjective area as the Group exercised •• Review and approval of the ECL calculation.
significant judgement on the following
Our detailed testing over the financing, advances and others are as
areas:
follows:
Timing of identification of Stage 2 and
Stage 3 financing, advances and others Individual assessment
•• Assessment of objective evidence of •• Examined a sample of financing, advances and others particularly focused
impairment of financing, advances on customers identified by the Group as having lower credit quality,
and others based on mandatory and rescheduled and restructured, borrowers in high risk industries impacted
judgemental triggers. by Covid-19, and formed our own judgement as to whether there was a
significant increase in credit risk or any objective evidence of impairment.
•• Identification of financing, advances
and others that have experienced a •• Where objective evidence of impairment was identified by the Group and
significant increase in credit risk. impairment loss was individually calculated, we examined both the
quantum and timing of future cash flows used by the Group in the
Individual assessment impairment loss calculation, challenging the assumptions and comparing
estimates to external evidence where available. Calculations of the
Estimates on the amount and timing of
discounted cash flows were also re-performed.
futures cash flows based on realisation
of collateral or customer’s business cash
Collective assessment
flows.
•• Assessed the methodologies inherent within the collective assessment
Collective assessment ECL models applied against the requirements of MFRS 9, including the
basis used by the management to determine the key assumptions used in
Choosing the appropriate collective
respective ECL models;
assessment models and assumptions
for the measurement of ECL such as •• Assessed and tested the significant modelling assumptions, including the
expected future cash flows and forward basis or judgment used for management’s overlays;
– looking macroeconomic factors given
•• Assessed and considered reasonableness of forward-looking forecasts
the wide range of potential economic
assumptions; and
outcomes due to Covid-19.
•• Tested the accuracy of data inputs used in ECL models and checked the
calculation of ECL amount, on a sample basis.
Based on the procedures performed on individual and collective

assessment, we did not find any material exceptions to the Group’s
assessment on impairment of financing, advances and others.
227
INDEPENDENT AUDITORS’ REPORT

to the members of Bank Islam Malaysia Berhad
(Incorporated in Malaysia) (Company No. 198301002944 (98127-X))
INFORMATION OTHER THAN THE FINANCIAL STATEMENTS AND AUDITORS’ REPORT THEREON
The Directors of the Bank are responsible for the other information. The other information comprises the Directors’ Report,
Report of the Shariah Supervisory Council and Annual Report, which we obtained prior to the date of this auditors’ report,
and Annual Report, which is expected to be made available to us after that date. Other information does not include the
financial statements of the Group and of the Bank and our auditors’ report thereon.
Our opinion on the financial statements of the Group and of the Bank does not cover the other information and we do
not express any form of assurance conclusion thereon.
In connection with our audit of the financial statements of the Group and of the Bank, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with the financial statements
of the Group and of the Bank or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditors’
report, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
RESPONSIBILITIES OF THE DIRECTORS FOR THE FINANCIAL STATEMENTS

The Directors of the Bank are responsible for the preparation of the financial statements of the Group and of the Bank
that give a true and fair view in accordance with Malaysian Financial Reporting Standards, International Financial Reporting
Standards and the requirements of the Companies Act 2016 in Malaysia. The Directors are also responsible for such internal
control as the Directors determine is necessary to enable the preparation of financial statements of the Group and of the
Bank that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements of the Group and of the Bank, the Directors are responsible for assessing the Group’s
and the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the Directors either intend to liquidate the Group or the Bank or to
cease operations, or have no realistic alternative but to do so.
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

Our objectives are to obtain reasonable assurance about whether the financial statements of the Group and of the Bank
as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with approved standards on auditing in Malaysia and International Standards on Auditing will always detect
a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.
As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
(a) Identify and assess the risks of material misstatement of the financial statements of the Group and of the Bank,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
(b) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s
and of the Bank’s internal control.
228
AUDITORS’ RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS (CONTINUED)

As part of an audit in accordance with approved standards on auditing in Malaysia and International Standards on
Auditing, we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
(continued)
(c) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by the Directors.
(d) Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant
doubt on the Group’s or on the Bank’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial
statements of the Group and of the Bank or, if such disclosures are inadequate, to modify our opinion. Our conclusions
are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions
may cause the Group or the Bank to cease to continue as a going concern.
(e) Evaluate the overall presentation, structure and content of the financial statements of the Group and of the Bank,
including the disclosures, and whether the financial statements of the Group and of the Bank represent the
underlying transactions and events in a manner that achieves fair presentation.
(f) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the financial statements of the Group. We are responsible for the direction,
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships and other matters that may reasonably be thought to
bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with the Directors, we determine those matters that were of most significance in the
audit of the financial statements of the Group and of the Company for the current financial year and are therefore the key
audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about
the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our
report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
OTHER MATTERS
This report is made solely to the members of the Bank, as a body, in accordance with Section 266 of the Companies Act 2016
in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content of this report.
Pricewaterhousecoopers PLT Dato' Mohammad Faiz Bin Mohammad Azmi

LLP0014401-LCA & AF 1146 02025/03/2022 J
Chartered Accountants Chartered Accountant
Kuala Lumpur,
7 March 2022
229
STATEMENTS OF
FINANCIAL POSITION
Group Bank
2021 2020 2021 2020

Note RM’000 RM’000 RM’000 RM’000
ASSETS
Cash and short-term funds 3 5,222,848 5,216,737 5,204,364 5,216,280
Financial assets at fair value through profit or loss 4 1,582,494 1,181,200 1,550,700 1,175,440
Derivative financial assets 5 26,037 61,665 26,037 61,665
Financial assets at fair value through other
comprehensive income 6 12,604,204 12,557,991 12,605,067 12,558,729
Financial assets at amortised costs 7 1,348,844 – 1,348,844 –
Financing, advances and others 8 58,153,769 54,670,635 58,153,769 54,670,635
Other assets 9 312,954 207,349 257,080 196,588
Statutory deposits with Bank Negara Malaysia 10 264,050 192,425 264,050 192,425
Current tax assets 7,047 106,773 6,662 106,773
Deferred tax assets 11 193,214 1,511 191,773 –
Right-of-use assets 12 196,000 209,736 195,614 209,736
Investments in subsidiaries 13 – – 100,905 15,525
Property and equipment 14 244,753 231,000 241,952 230,516
Total assets 80,156,214 74,637,022 80,146,817 74,634,312
LIABILITIES AND EQUITY

Deposits from customers 15 57,338,834 51,077,262 57,363,926 51,095,451
Investment accounts of customers 16 10,452,902 12,368,528 10,561,601 12,368,897
Derivative financial liabilities 5 20,421 105,872 20,421 105,872
Bills and acceptance payable 20,112 29,621 20,112 29,621
Recourse obligations on financing sold to Cagamas 17 2,001,720 1,501,187 2,001,720 1,501,187
Subordinated Sukuk Murabahah 18 2,014,849 1,713,164 2,014,849 1,713,164
Other liabilities 19 1,570,602 1,136,863 1,538,375 1,121,885
Lease liabilities 12 303,448 312,429 302,984 312,429
Zakat and taxation 20 33,388 31,952 33,256 31,776
Deferred tax liabilities 11 – 74,445 – 74,445
Total liabilities 73,756,276 68,351,323 73,857,244 68,354,727
EQUITY
Share capital 21 3,445,757 3,306,118 3,445,757 3,306,118
Reserves 22 2,954,181 2,979,581 2,843,816 2,973,467
Total equity 6,399,938 6,285,699 6,289,573 6,279,585
Total liabilities and equity 80,156,214 74,637,022 80,146,817 74,634,312
Restricted investment accounts managed by the

Bank 16 849 11,915 849 11,915
Total Islamic banking assets owned and managed

by the Bank 80,157,063 74,648,937 80,147,666 74,646,227
Commitments and contingencies 42 18,764,994 20,189,496 18,764,994 20,189,496
The notes on pages 241 to 374 are an integral part of these financial statements.
230
STATEMENTS OF
PROFIT OR LOSS
Group Bank
2021 2020 2021 2020

Note RM’000 RM’000 RM’000 RM’000
Income derived from investment of depositors’ funds 24 2,260,072 2,504,013 2,260,072 2,504,013
Income derived from investment account funds 25 497,538 513,934 497,538 513,934
Income derived from investment of shareholders’
funds 26 458,750 460,059 430,950 436,313
Net allowance for impairment on financing and
advances, net of recoveries 27 (190,738) (208,671) (190,738) (208,671)
Loss on modification of financial assets (48,911) (136,380) (48,911) (136,380)
Net allowance for impairment on other financial
assets (7,406) 2,757 (7,406) 2,757
Direct expenses (10,938) (13,660) (10,938) (13,660)
Total distributable income 2,958,367 3,122,052 2,930,567 3,098,306

Wakalah fees from restricted investment accounts 16 308 576 308 576
Income attributable to depositors 28 (818,688) (1,006,479) (818,883) (1,006,700)
Income attributable to investment account holders 29 (160,127) (222,026) (160,643) (222,026)
Total net income 1,979,860 1,894,123 1,951,349 1,870,156

Personnel expenses 30 (723,830) (663,367) (701,784) (649,361)
Other overhead expenses 31 (461,922) (411,085) (449,062) (402,502)
794,108 819,671 800,503 818,293

Finance cost 34 (89,887) (91,458) (89,878) (91,457)
Profit before zakat and tax 704,221 728,213 710,625 726,836

Zakat (12,275) (11,770) (12,222) (11,815)
Tax expense 35 (157,641) (151,489) (157,256) (151,308)
Profit for the year 534,305 564,954 541,147 563,713
Earnings per share (sen) 36 21.87 22.19
231
STATEMENTS OF
OTHER COMPREHENSIVE INCOME
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Profit for the year 534,305 564,954 541,147 563,713
Other comprehensive income, net of tax:

Items that are or may be reclassified subsequently to
profit or loss
Currency translation differences in respect of foreign
operations (14,774) 7,198 (14,680) 7,214
Movement in fair value reserve (debt securities):
Net change in fair value (303,103) 248,060 (303,228) 248,060
Changes in expected credit loss (debt securities) (6,834) (138) (6,834) (138)
Net amount transferred to profit or loss (87,903) (271,311) (87,903) (271,311)
Income tax effect relating to components of other
comprehensive income 94,671 5,492 94,671 5,492
(317,943) (10,699) (317,974) (10,683)

Items that will not be reclassified to profit or loss
Movement in fair value reserve (equity instrument):
Net change in fair value 13,583 16,992 13,708 16,992
Other comprehensive income for the year, net of tax (304,360) 6,293 (304,266) 6,309
Total comprehensive income for the year 229,945 571,247 236,881 570,022
232
CONSOLIDATED STATEMENT OF
CHANGES IN EQUITY
Attributable to equity holders of the Bank
Non-distributable Distributable
Share Other Retained Total

capital reserves earnings equity
Group Note RM’000 RM’000 RM’000 RM’000
At 1 January 2021, restated 3,306,118 182,274 2,797,307 6,285,699
Profit for the year – – 534,305 534,305

Currency translation difference in respect of
foreign operations – (14,774) – (14,774)
Fair value reserve (debt instruments):
Net change in fair value – (303,103) – (303,103)
Changes in expected credit losses – (6,834) – (6,834)
Net amount transferred to profit or loss – (87,903) – (87,903)
Income tax effect relating to components of
other comprehensive income – 94,671 – 94,671
Fair value reserve (equity instruments):
Net change in fair value – 13,583 – 13,583
Total comprehensive income for the year – (304,360) 534,305 229,945
Effect on predecessor accounting – 111,187 – 111,187

Dividends paid on ordinary shares 37 – – (366,532) (366,532)
Issue of shares pursuant to Dividend
Reinvestment Plan 139,639 – – 139,639
At 31 December 2021 3,445,757 (10,899) 2,965,080 6,399,938
Note 22
233
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Group Note RM’000 RM’000 RM’000 RM’000
At 1 January 2020 3,012,368 107,265 2,594,820 5,714,453
Prior year adjustment on currency translation

difference in respect of foreign operations 47 – 93,716 (93,716) –

foreign operations – 7,198 – 7,198
Changes in expected credit losses – (138) – (138)
Total comprehensive income for the year – 6,293 564,954 571,247
Transfer from regulatory reserve 22 – (25,000) 25,000 –

At 31 December 2020 3,306,118 182,274 2,797,307 6,285,699
Note 22
234

Bank Note RM’000 RM’000 RM’000 RM’000

foreign operations – (14,680) – (14,680)
Net change in fair value – (303,228) – (303,228)
Changes in expected credit losses – (6,834) – (6,834)
Total comprehensive income for the year – (304,266) 541,147 236,881

At 31 December 2021 3,445,757 (121,843) 2,965,659 6,289,573
Note 22
235
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY


Bank Note RM’000 RM’000 RM’000 RM’000
At 1 January 2020 3,012,368 107,398 2,589,798 5,709,564
Prior year adjustment on currency translation

difference in respect of foreign operations 47 – 93,716 (93,716) –

foreign operations – 7,214 – 7,214
Changes in expected credit losses – (138) – (138)
Total comprehensive income for the year – 6,309 563,713 570,022
Transfer from regulatory reserve 22 – (25,000) 25,000 –

At 31 December 2020 3,306,118 182,423 2,791,044 6,279,585
Note 22
236
STATEMENTS OF
CASH FLOW
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Cash flows from operating activities

Profit before zakat and tax 704,221 728,213 710,625 726,836
Adjustments for:
Depreciation of property and equipment 59,225 56,546 58,803 56,341
Depreciation of right-of-use assets 18,197 18,348 18,042 18,317
Net gain on disposal of property and equipment (603) (3) (602) (3)
Property and equipment written-off 619 925 619 925
Allowance for impairment on financing, advances and
others 265,937 288,187 265,937 288,187
Losses on modification of financial assets 48,911 136,380 48,911 136,380
Net allowance for impairment on other financial assets 7,406 (2,757) 7,406 (2,757)
Net loss/(gain) on sale of financial assets at FVTPL 7,347 (528) 7,373 (528)
Net gain on sale of financial assets at FVOCI (87,903) (271,311) (87,903) (271,311)
Fair value (gain)/loss on FVTPL (16,497) 6,717 (16,350) 6,713
Dividends from subsidiary – – (800) (500)
Dividends from financial assets at FVTPL (11,677) (13,860) (11,326) (13,722)
Dividends from financial assets at FVOCI – (503) – (503)
Rebate on investment in unit trust (2,217) (979) (2,217) (979)
Net derivative loss (7) (31) (7) (31)
Finance cost on Subordinated Sukuk Murabahah 72,575 73,622 72,575 73,622
Profit expense on lease 17,312 17,836 17,303 17,835
Operating profit before changes in assets and liabilities 1,082,846 1,036,802 1,088,389 1,034,822
Changes in assets and liabilities:
Financing, advances and others (3,797,982) (5,622,680) (3,797,982) (5,622,680)
Statutory deposits with Bank Negara Malaysia (71,625) 977,711 (71,625) 977,711
Bills and other receivables (1,313,346) (87,545) (1,374,267) (81,439)
Deposits from customers 6,261,572 3,668,524 6,268,475 3,618,579
Investment accounts of customers (1,915,626) 2,128,155 (1,807,296) 2,128,524
Bills and acceptance payable (9,509) (19,463) (9,509) (19,463)
Other liabilities 100,097 214,455 104,148 259,327
Recourse obligation on financing sold to Cagamas 500,533 – 500,533 –
Cash generated from operations 836,960 2,295,959 900,866 2,295,381
Zakat paid (11,967) (10,862) (11,822) (10,795)

Tax paid (227,995) (100,444) (227,612) (100,261)
Net cash generated from operating activities 596,998 2,184,653 661,432 2,184,325
237
STATEMENTS OF CASH FLOW

Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Cash flows from investing activities

Purchase of property and equipment (71,155) (92,879) (70,862) (92,684)
Acquisition of subsidiaries – – (85,380) –
Acquisition of subsidiaries, net of cash acquired (14,793) – – –
Proceeds from disposal of property and equipment 609 5 607 5
Dividends from subsidiary – – 800 500
Dividends from financial assets at FVTPL 11,677 13,860 11,326 13,722
Dividends from financial assets at FVOCI – 503 – 503
Income from rebate on investment in unit trust 2,217 979 2,217 979
Net proceeds from disposal/purchase of securities (702,959) (670,896) (715,809) (670,757)
Net cash used in investing activities (774,404) (748,428) (857,101) (747,732)
Cash flows from financing activities

Issuance of Subordinated Sukuk Murabahah 300,000 1,100,000 300,000 1,100,000
Dividend paid on ordinary shares (139,639) (293,751) (139,639) (293,751)
Proceeds from issuance of ordinary shares pursuant to
Dividend Reinvestment Plan 139,639 293,750 139,639 293,750
Redemption of Subordinated Sukuk Murabahah – (700,000) – (700,000)
Finance cost paid on Subordinated Sukuk Murabahah (70,890) (69,152) (70,890) (69,152)
Payments of lease liabilities (30,818) (29,920) (30,676) (29,883)
Net cash generated from financing activities* 198,292 300,927 198,434 300,964
Net increase in cash and cash equivalents 20,886 1,737,152 2,765 1,737,557
Cash and cash equivalents at 1 January 5,216,737 3,472,386 5,216,280 3,471,509
Exchange difference on translation (14,775) 7,199 (14,681) 7,214
Cash and cash equivalents at 31 December 5,222,848 5,216,737 5,204,364 5,216,280
* Net cash (used in)/generated from financing activities are solely attributable to changes from financing cash flows.
238
RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES

The table below details changes in liabilities arising from financing activities, including both cash and non-cash changes.
Liabilities arising from financing activities are those for which cash flows were, or future cash flows will be, classified in
the Group’s and the Bank’s statements of cash flows from financing activities.
Subordinated sukuk
Murabahah
Finance
cost Lease
Nominal payable liabilities Total
Group RM’000 RM’000 RM’000 RM’000
At 1.1.2020 1,300,000 8,694 325,559 1,634,253

New acquisition 1,100,000 – 437 1,100,437
Redemption/reversal (700,000) – (1,472) (701,472)
Changes from financing cash flows – (69,152) (29,920) (99,072)
Finance cost for the year – 73,622 17,836 91,458
Effects of movement in exchange rates – – (11) (11)
At 31.12.2020 1,700,000 13,164 312,429 2,025,593
At 1.1.2021 1,700,000 13,164 312,429 2,025,593

New acquisition 300,000 – 4,512 304,512
Redemption/reversal – – – –
Effects of movement in exchange rates – – 13 13
At 31.12.2021 2,000,000 14,849 303,448 2,318,297
239
STATEMENTS OF CASH FLOW

RECONCILIATION OF LIABILITIES ARISING FROM FINANCING ACTIVITIES (CONTINUED)
Subordinated sukuk
Murabahah
Finance
cost Lease
Nominal payable liabilities Total
Bank RM’000 RM’000 RM’000 RM’000
At 1.1.2020 1,300,000 8,694 325,559 1,634,253

New acquisition 1,100,000 – 401 1,100,401
Redemption/reversal (700,000) – (1,472) (701,472)
Effects of movement in exchange rates – – (11) (11)
At 31.12.2020 1,700,000 13,164 312,429 2,025,593
At 1.1.2021 1,700,000 13,164 312,429 2,025,593

New acquisition 300,000 – 3,915 303,915
Redemption/reversal – – – –
Effects of movement in exchange rates – – 13 13
At 31.12.2021 2,000,000 14,849 302,984 2,317,833
240
NOTES TO THE
FINANCIAL STATEMENTS
1. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION

The Bank is principally engaged in Islamic banking business and the provision of related financial services. The
principal activities of its subsidiaries are as disclosed in Note 13 to the financial statements.
The Bank is a public limited liability company, incorporated and domiciled in Malaysia and is listed on the Main
Market of Bursa Malaysia Securities Berhad. The address of its registered office and principal place of business is as
follows:
Level 32, Menara Bank Islam

No. 22, Jalan Perak,
50450 Kuala Lumpur.
The consolidated financial statements comprise the Bank and its subsidiaries (together referred to as the “Group”).
These financial statements were approved by the Board of Directors on 7 March 2022.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to the periods presented in these financial
statements and have been applied consistently by Group entities, unless otherwise stated.
2.1 Basis of preparation

(a) Statement of compliance
The financial statements of the Group and of the Bank have been prepared in accordance with the
applicable Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting Standards
(“IFRS”), the requirements of Companies Act 2016 in Malaysia and Shariah requirements.
The Government has introduced certain measures to assist customers experiencing temporary financial
constraints due to the pandemic. The key measures affecting regulatory and accounting treatment and
classifications are as follows:
(i) Moratorium repayment on financing:
•• The Bank has granted an automatic repayment moratorium on all individuals’ and small-medium
enterprises’ (“SMEs”) financing (except for credit card balances) for a period of six months from 1 April
2020. The automatic moratorium applied to financing not in arrears exceeding 90 days as at 1 April
2020 and denominated in Malaysian Ringgit. This measure is extended beyond 1 October 2020 to
viable customers on a case-to-case basis, whose applications are received on or before 30 June 2021
via various repayment assistance. On 6 July 2021, BNM announced that individuals, microenterprise
customers and SMEs affected by the COVID-19 pandemic, may start applying for the six-month
moratorium from 7 July 2021 onwards, in line with the Government’s Pakej Perlindungan Rakyat dan
Pemulihan Ekonomi (PEMULIH). In addition to the moratorium, The Bank has offered a reduction in
instalments and other packages, including to reschedule and restructure financing and advances to
suit the specific financial circumstances of customers..
•• urthermore, the Bank and Agensi Kaunseling dan Pengurusan Kredit has introduced the Financial
F
Management & Resillience Programme (“URUS”) for individual customers who continued to be
affected by the COVID-19 pandemic whose applications are received from 15 November 2021 to 31
January 2022.
241
NOTES TO THE FINANCIAL STATEMENTS

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

2.1 Basis of preparation (continued)
(a) Statement of compliance (continued)
•• For credit card balances, the Bank offered the option to convert the balances to term financing.
•• For corporate customers, the Bank granted assistance through repayment moratorium or additional
working capital or rescheduling and restructuring of existing facilities. This is to enable viable corporations
in preserving jobs and resuming economic activities when conditions stabilise and improve.
The financial impact of the moratorium repayment is disclosed in Note 2.18.
(ii) Definition of defaulted exposures under the policy documents on Capital Adequacy Framework for
Islamic Banks for which assistance is granted:
•• The determination of “days past due” is based on the new repayment terms of rescheduled and
restructured financing.
•• Individuals or SMEs are not considered to be in default based on the “unlikeliness to repay” at the time
of when the assistance was granted, except for when customers are subject to bankruptcy action.
•• Corporates “unlikeliness to repay” are based on holistic assessment of all relevant factors and
information, not on the act of accepting assistance from the Bank.
The regulatory capital treatment above shall apply to financing denominated in Malaysian Ringgit that
meet the following criteria;
•• The principal or profit or both, is not in arrears exceeding 90 days at the application date of assistance.
•• The application is received on or before due date of the respective assistance programme.
The regulatory capital treatment would also be applicable to rescheduled and restructured financing
that are facilitated by Agensi Kaunseling dan Pengurusan Kredit, the Small Debt Resolution Scheme
and the Corporate Debt Restructuring Committee.
(iii) Classification in the Central Credit Reference Information System (“CCRIS”)
The following shall apply for rescheduled and restructured financing with arrears not exceeding 90 days
at the application date of assistance received:
•• The financing need not be reported as (R&R) in CCRIS; and

•• The financing need not be reported as credit-impaired in CCRIS
Customers under URUS shall be identified as enrolled in the programme to facilitate follow up and
monitoring by AKPK and the Bank in order to provide further support. The identification shall be
removed once the customers exit the programme or at the earliest, six months after enrollment date.
(iv) Bank Negara Malaysia (“BNM”) allows financial institutions to drawdown certain prudential buffers as
below:
•• Drawdown the capital conservation buffer of 2.5%;

•• Operate below the minimum Liquidity Coverage Ratio (“LCR”) of 100%;
•• Reduce the regulatory reserves held against expected credit losses to 0%; and
•• Minimum Net Stable Funding Ratio (“NSFR”) is lowered to 80% from 100% effective 1 July 2020.
BNM requires financial institutions to restore the minimum regulatory requirements by 30 September 2021.
242

(a) Statement of compliance (continued)
Bank Islam has kept abreast with the latest IBOR developments in Malaysia. A Task Force (“TF”) involving
key stakeholders has been formed, headed by Head of Treasury & Markets. There were five TF meetings held
to date, on 18 August 2020, 8 December 2020, 16 February 2021, 28 May 2021 and 1 November 2021
respectively. Progress on LIBOR transition against the industry signpost issued by BNM, was discussed at
the TF meetings, and tabled to the Asset & Liability Committee (“ALCO”), Board Risk Committee (“BRC”) and
Board of Directors (“BOD”) of the Bank for deliberation and to be monitored on a regular basis. The Bank
has ceased all new financing referenced to LIBOR, and have renegotiated the existing LIBOR financing, to
a new Reference Rate ie. USD COF. Bank Islam no longer has any LIBOR exposure w.e.f. 9 July 2021.
Other than as described above, the adoption of other accounting standards, interpretations and amendments
did not have any significant impact on the Group and the Bank.
The following are accounting standards, amendments and interpretations of the MFRS framework that have
been issued by the Malaysian Accounting Standards Board (“MASB”) but have not been adopted by the
Group and the Bank.
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2022
•• Annual improvements to MFRS Standards 2018-2020

•• Amendments to MFRS 3, Business Combinations
•• Amendments to MFRS 116, Property, Plant and Equipment
•• Amendments to MFRS 137, Onerous Contract – Cost of Fulfilling a Contract – Provisions, Contingent
Liabilities and Contingent Assets
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2023
•• mendments to MFRS 101, Presentation of Financial Statements – Classification of Liabilities as Current

A
or Non-current, Disclosure of Accounting Policies
•• MFRS 17, Insurance Contracts
•• Amendments to MFRS 17, Insurance Contract
•• Amendments to MFRS 108, Definition of Accounting Estimates
MFRSs, Interpretations and amendments effective for annual periods beginning or after a date yet to be
confirmed
•• Amendments to MFRS 112, Deferred Tax related to Assets and Liabilities arising from a Single Transaction
•• Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates
and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint
Venture
The Group and the Bank plan to apply the abovementioned standards, amendments and interpretations on
the respective effective dates.
The initial application of the accounting standards, amendments and interpretations are not expected to
have any material financial impacts to the current period and prior period financial statements of the Group
and the Bank.
243


(b) Basis of measurement
The financial statements have been prepared on the historical cost convention except for derivative financial
instruments, financial assets at fair value through profit or loss (“FVTPL”) and fair value through other
comprehensive income (“FVOCI”), which have been measured at fair value.
(c) Functional and presentation currency

The financial statements are presented in Ringgit Malaysia (“RM”), which is the Bank’s functional currency.
All financial information is presented in RM and has been rounded to the nearest thousand (RM’000), unless
otherwise stated.
(d) Use of estimates and judgement

The preparation of the financial statements requires management to make judgements, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities,
income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the financial
statements in the period in which the estimates are revised and in any future periods affected.
Significant areas of estimation, uncertainty and critical judgements used in applying accounting policies that
have significant effect in determining the amount recognised in the financial statements are described in Note
2.9 – Impairment.
2.2 Basis of consolidation

(a) Subsidiaries
Subsidiaries are entities, including structured entities, controlled by the Bank. The financial statements of the
subsidiaries are included in the consolidated financial statements from the date that control commences
until the date that control ceases.
The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with
the entity and has the ability to affect those returns through its power over the entity. Potential voting rights
are considered when assessing control only when such rights are substantive. The Group also considers it
has de facto power over an investee when, despite not having the majority of voting rights, it has the
current ability to direct the activities of the investee that significantly affect the investee’s return.
Investments in subsidiaries are measured in the Bank’s statement of financial position at cost less
impairment losses, if any. Where there is indication of impairment, the carrying amount of the investment
is assessed. A write down is made if the carrying amount exceeds its recoverable amount.
(b) Business combinations
Business combinations are accounted for using the acquisition method from the acquisition date, which is
the date on which control is transferred to the Group.
244

2.2 Basis of consolidation
(b) Business combinations
For new acquisitions, the Group measures the cost of goodwill at the acquisition date as:
•• the fair value of the consideration transferred; plus

•• the recognised amount of any non-controlling interests in the acquiree; plus
•• if the business combination is achieved in stages, the fair value of the existing equity interest in the
acquiree; less
•• the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
For each business combination, the Group elects whether it measures the non-controlling interests in the
acquiree either at fair value or at proportionate share of the acquiree’s identifiable net assets at the
acquisition date.
Transaction costs, other than those associated with the issue of debt or equity securities, that the Group
incurs in connection with a business combination are expensed as incurred.
The Group applies predecessor accounting to account for business combinations under common control.
Under predecessor accounting, assets and liabilities acquired are not restated to their respective fair values.
They are recognised at the carrying amounts from the consolidated financial statements of the ultimate
holding company of the Group and adjusted to conform with the accounting policies adopted by the Group.
The difference between any consideration given and the aggregate carrying amounts of the assets and
liabilities of the acquired entity is recognised as an adjustment to equity. No additional goodwill is recognised.
The acquired entity’s results, assets and liabilities are consolidated from the date on which the business
combination between entities under common control occurred. Consequently, the consolidated financial
statements do not reflect the results of the acquired entity for the period before the transaction occurred.
The comparative information is not restated.
(c) Loss of control
Upon the loss of control of a subsidiary, the Group derecognises the assets and liabilities of the former
subsidiary, any non-controlling interests and the other components of equity related to the former subsidiary
from the consolidated statement of financial position. Any surplus or deficit arising on the loss of control is
recognised in profit or loss. If the Group retains any interest in the former subsidiary, then such interest is
measured at fair value at the date that control is lost. Subsequently it is accounted for as an equity
accounted investee or as a financial asset at FVOCI depending on the level of influence retained.
(d) Transactions eliminated on consolidation
In preparing the consolidated financial statements, intra-group balances and transactions, and any unrealised
income and expenses arising from intra-group transactions are eliminated.
245


2.3 Foreign currency
(a) Foreign currency transactions
In preparing the financial statements of the Group entities, transactions in foreign currencies are translated
to the respective functional currencies of Group entities at exchange rates at the dates of the transactions.
Monetary assets and liabilities denominated in foreign currencies at the end of reporting date are retranslated
to the functional currency at the exchange rate at that date.
Non-monetary assets and liabilities denominated in foreign currencies are not retranslated at the end of the
reporting date, except for those that are measured at fair value are retranslated to the functional currency
at the exchange rate at the date that the fair value was determined.
Foreign currency differences arising on retranslation are recognised in profit or loss, except for differences
arising on the retranslation of FVOCI equity instruments or a financial instrument designated as a hedge of
currency risk, which are recognised in other comprehensive income.
(b) Foreign operations denominated in functional currencies other than Ringgit Malaysia (“RM”)
The results and financial position of all the Group entities and branch of the Bank (none of which has the
currency of a hyperinflationary economy) that have a functional currency different from the presentation
currency are translated into the presentation currency as follows:
•• the assets and liabilities of operations denominated in functional currencies other than RM, including fair
value adjustments arising on acquisition, are translated to RM at exchange rates at the end of the
reporting date;
•• the income and expenses of the foreign operations are translated to RM at average exchange rates for
the period; and
•• all resulting exchange differences are recognised as a separate component of other comprehensive
income.
On consolidation and at Bank, exchange differences arising from the translation of any net investment in
foreign entities and branch, and of borrowings and other financial instruments designated as hedges of
such investments, are recognised in other comprehensive income.
On the disposal of a foreign operation (that is, a disposal of the Group’s entire interest in a foreign operation,
or a disposal involving loss of control over a subsidiary that includes a foreign operation, a disposal involving
loss of joint control over a joint venture that includes a foreign operation, or a disposal involving loss of
significant influence over an associate that includes a foreign operation), all of the exchange differences
relating to that foreign operation recognised in other comprehensive income and accumulated in the
separate component of equity are reclassified to profit or loss, as part of the gain or loss on disposal. In the
case of a partial disposal that does not result in the Group losing control over a subsidiary that includes a
foreign operation, the proportionate share of accumulated exchange differences are re-attributed to non-
controlling interests and are not recognised in profit or loss. For all other partial disposals (that is, reductions
in the Group’s ownership interest in associates or joint ventures that do not result in the Group losing
significant influence or joint control) the proportionate share of the accumulated exchange difference is
reclassified to profit or loss.
246

2.4 Cash and cash equivalents
Cash and cash equivalents include cash and short-term funds, and deposits and placements with banks and
other financial institutions maturing within three month.
2.5 Financial instruments

Financial instruments are classified and measured using accounting policies as mentioned below. The Group and
the Bank have consider the impact of the pandemic and there is no changes to the Group’s and the Bank’s
business model for managing the financial instruments.
Initial recognition and measurement
A financial asset or a financial liability is recognised in the statement of financial position when, and only when,
the Group and the Bank becomes a party to the contractual provisions of the instrument.
A financial instrument is recognised initially, at its fair value plus, in the case of a financial instrument not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition or issue of the
financial instrument.
Classification and subsequent measurement
On initial recognition, a financial asset is classified and measured at: amortised cost; FVOCI - debt instrument;
FVOCI - equity instrument; or FVTPL.
Financial assets are not reclassified subsequent to their initial recognition unless the Group and the Bank change
its business model for managing financial assets, in which case all affected financial assets are reclassified on
the first day of the first reporting period following the change in the business model.
(a) Financial assets measured at amortised cost
A financial asset is measured at amortised cost if it meets both of the following conditions and is not
designated as at FVTPL:
•• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
•• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and
profit on the principal amount outstanding.
These assets are subsequently measured at amortised cost using effective profit rate method. These assets
are stated net of unearned income and any impairment loss.
Included in financial assets measured at amortised cost are financing, advances and others which consist
of sale-based contracts (namely Bai’ Bithaman Ajil, Bai Al-Inah, Murabahah, Bai Al-Dayn and At-Tawarruq),
lease-based contracts (namely Ijarah Muntahiah Bit-Tamleek, construction-based contract (Istisna’) and Ar-
Rahnu contract.
These financing contracts are recorded in the financial statements as financial assets measured at amortised
cost based on concept of ‘substance over form’ and in accordance with MFRS 9.
247


2.5 Financial instruments (continued)
Classification and subsequent measurement (continued)
(b) Financial assets at FVOCI
(i) FVOCI – debt instrument
A debt instrument is measured at FVOCI if it meets both of the following conditions and is not
designated as at FVTPL:
•• it is held within a business model whose objective is achieved by both collecting contractual cash
flows and selling financial assets; and
•• its contractual terms give rise on specified dates to cash flows that are solely payments of principal
and profit on the principal amount outstanding.
These assets are subsequently measured at fair value. Any gain or loss arising from a change in the fair
value is recognised in the fair value reserve through other comprehensive income except for profit
income, impairment losses and foreign exchange gains and losses arising from monetary items which
are recognised in profit or loss. On derecognition or disposal, the cumulative gains or losses previously
recognised in OCI is reclassified from equity into profit or loss. Profit calculated for a debt instrument
using the effective profit method is recognised in the profit or loss.
(ii) FVOCI – equity instrument
On initial recognition of an equity instrument that is not held for trading, the Group and the Bank may
irrevocably elect to present subsequent changes in the investment’s fair value in OCI. This election is
made on an investment-by-investment basis.
These assets are subsequently measured at fair value. Dividend are recognised as income in profit or
loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net
gains and losses are recognised in OCI and are never reclassified to profit or loss.
(c) Financial assets at FVTPL
All financial assets not measured at amortised cost or FVOCI as described above are measured at FVTPL.
This includes all derivative financial assets. On initial recognition, the Group and the Bank may irrevocably
designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at
FVOCI as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would
otherwise arise.
These financial assets are subsequently measured at their fair values and any gain or loss arising from a
change in the fair value will be recognised in the profit or loss.
248

Financial assets – Business model assessment
The Group and the Bank make an assessment of the objective of the business model in which a financial asset
is held at the portfolio level because this best reflects the way the business is managed and information is
provided to management. The information considered includes:
•• t he stated policies and objectives for the portfolio and the operation of those policies in practice. These
include whether management’s strategy focuses on earning contractual profit income, maintaining a
particular profit rate profile, matching the duration of the financial assets to the duration of any related
liabilities or expected cash outflows or realising cash flows through the sale of the assets;
•• how the performance of the portfolio is evaluated and reported to the management;
•• the risks that affect the performance of the business model (and the financial assets held within that
business model) and how those risks are managed; and
•• how managers of the business are compensated – e.g. whether compensation is based on the fair value of
the assets managed or the contractual cash flows collected.
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered
sales for this purpose, consistent with the Group’s and the Bank’s continuing recognition of the assets.
Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value
basis are measured at FVTPL.
Financial assets – Assessment whether contractual cash flows are solely payments of principal and profit
(“SPPI”)
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial
recognition. ‘Profit’ is defined as consideration for the time value of money and for the credit risk associated with
the principal amount outstanding during a particular period of time and for other basic lending risks and costs
(e.g. liquidity risk and administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and profit, the Group and the
Bank consider the contractual terms of the instrument. This includes assessing whether the financial asset
contains a contractual term that could change the timing or amount of contractual cash flows such that it would
not meet this condition. In making this assessment, the Group and the Bank consider:
•• contingent events that would change the amount or timing of cash flows;
•• terms that may adjust the contractual coupon rate, including variable-rate features;
•• prepayment and extension features; and
•• terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse features).

249


Financial assets – Assessment whether contractual cash flows are solely payments of principal and profit
(“SPPI”) (continued)
A prepayment feature is consistent with the SPPI criterion if the prepayment amount substantially represents
unpaid amounts of principal and profit on the principal amount outstanding, which may include reasonable
additional compensation for early termination of the contract. Additionally, for a financial asset acquired at a
discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount
that substantially represents the contractual par amount plus accrued (but unpaid) contractual profit (which may
also include reasonable additional compensation for early termination) is treated as consistent with this criterion
if the fair value of the prepayment feature is insignificant at initial recognition.
Derivative financial instruments
The Group and the Bank hold derivative financial instruments to hedge its foreign currency and profit rate
exposures. However, the Group and the Bank elect not to apply hedge accounting. Hence, foreign exchange
trading positions, including spot and forward contracts, are revalued at prevailing market rates at statement of
financial position date and the resultant gains and losses for the financial year are recognised in the profit or loss.
An embedded derivative is recognised separately from the host contract and accounted for as a derivative if, and
only if, it is not closely related to the economic characteristics and risks of the host contract and the host
contract is not categorised at fair value through profit or loss. In the event of an embedded derivatives, the host
contract that is not a financial assets are recognised separately and accounted for in accordance with the policy
applicable to the nature of the host contract.
Financial liabilities
All financial liabilities are subsequently measured at amortised cost other than those categorised as fair value
through profit or loss.
The financial liabilities measured at amortised cost are deposit from customers, investment accounts of
customers, recourse obligations on financing sold to Cagamas, bills and acceptance payables, Subordinated
Sukuk Murabahah and other liabilities.
Fair value through profit or loss category comprises financial liabilities that are derivatives or financial liabilities
that are specifically designated into this category upon initial recognition.
Financial liabilities categorised as fair value through profit or loss are subsequently measured at their fair values
with the gain or loss recognised in profit or loss.
250

Financial liabilities (continued)
(a) Investment accounts
Investment accounts are either:
(i) Unrestricted investment accounts
An unrestricted investment account (“UA”) refers to a type of investment account where the investment
account holder (“IAH”) provides the Bank with the mandate to make the ultimate decision without
specifying any particular restrictions or conditions. The UA is structured under Mudharabah and
Wakalah contracts.
Impairment allowances required on the assets for investment accounts are charged to and borne by
the investors.
(ii) Restricted investment accounts
Restricted investment account (“RA”) refers to a type of investment account where the IAH provides a
specific investment mandate to the Bank such as purpose, asset class, economic sector and period of
investment.
RA is accounted for as off balance sheet as the Bank has no risk and reward in respect of the assets
related to the RA or to the residual cash flows from those assets except for the fee income generated
by the Bank for managing the RA. The Bank also has no ability to exercise power over the RA to affect
the amount of the Bank’s return. The RA is structured under the Wakalah contract whereby the IAH
appoints the Bank as the agent to invest the funds provided by IAH to finance customers with a view
of earning profits and the Bank receives fees for the agency service provided.
Financial guarantee contracts
A financial guarantee contract is a contract that requires the Group and the Bank to make specified payments
to reimburse the holder for a loss it incurs because a specified debtor fails to make payment when due in
accordance with the original or modified terms of a debt instrument.
Fees and commissions arising from financial guarantee contracts are classified as deferred income and are
amortised to profit or loss using a straight-line method over the contractual period or, when there is no specified
contractual period, recognised in profit or loss upon discharge of the guarantee. Financial guarantee contracts
are initially measured at fair value and subsequently measured at the higher of:
•• the amount of the allowance for impairment; and

•• the premium received on initial recognition less cumulative income recognised in accordance with the
principal of MFRS 15.
251


Derecognition
A financial asset or part of it is derecognised when, and only when the contractual rights to the cash flows from
the financial asset expire or the financial asset is transferred to another party without retaining control or
substantially all risks and rewards of the asset. On derecognition of a financial asset, the difference between the
carrying amount and the sum of the consideration received (including any new asset obtained less any new
liability assumed) and any cumulative gain or loss that had been recognised in equity is recognised in profit or
loss.
A financial liability or a part of it is derecognised when, and only when, the obligation specified in the contract is
discharged or cancelled or expires. On derecognition of a financial liability, the difference between the carrying
amount of the financial liability extinguished or transferred to another party and the consideration paid, including
any non-cash assets transferred or liabilities assumed, is recognised in profit or loss.
Offsetting
Financial assets and financial liabilities are offset and the net amount presented in the statement of financial
position when, and only when, the Group currently has a legally enforceable right to set off the amounts and it
intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously.
2.6 Property and equipment

(a) Recognition and measurement
Items of property and equipment are measured at cost less accumulated depreciation and any accumulated
impairment losses.
Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs
directly attributable to bringing the asset to working condition for its intended use, and the costs of
dismantling and removing the items and restoring the site on which they are located. The cost of self-
constructed assets also includes the cost of materials and direct labour. For qualifying assets, borrowing
costs are capitalised in accordance with the accounting policy on borrowing costs. Cost also may include
transfers from equity of any gain or loss on qualifying cash flow hedges of foreign currency purchases of
property and equipment.
Purchased software and management information system under development that is integral to the
functionality of the related equipment is capitalised as part of that equipment.
The cost of property and equipment recognised as a result of a business combination is based on fair value
at acquisition date. The fair value of property is the estimated amount for which a property could be
exchanged between knowledgeable willing parties in an arm’s length transaction after proper marketing
wherein the parties had each acted knowledgeably, prudently and without compulsion. The fair value of
equipment is based on the quoted market prices for similar items when available and replacement cost
when appropriate.
252

2.6 Property and equipment (continued)
(a) Recognition and measurement (continued)
When significant parts of an item of property and equipment have different useful lives, they are accounted
for as separate items (major components) of property and equipment.
The gain or loss on disposal of an item of property and equipment is determined by comparing the
proceeds from disposal with the carrying amount of property and equipment and is recognised net within
“other income” and “other expenses” respectively in profit or loss.
(b) Subsequent costs
The cost of replacing a component of an item of property and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the component will
flow to the Group and the Bank, and its cost can be measured reliably. The carrying amount of the replaced
component is derecognised to profit or loss. The costs of the day-to-day servicing of property and equipment
are recognised in profit or loss as incurred.
(c) Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual
assets are assessed, and if a component has a useful life that is different from the remainder of that asset,
then that component is depreciated separately.
Depreciation is recognised in profit or loss on a straight-line basis over the estimated useful lives of each
component of an item of property and equipment. Leased assets are depreciated over the shorter of the
lease term and their useful lives unless it is reasonably certain that the Group and the Bank will obtain
ownership by the end of the lease term. Freehold land is not depreciated. Depreciation on management
information system under develoment commences when the assets are ready for their intended use. The
assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of each reporting
period.
The estimated useful lives for the current and comparative periods are as follows:
•• Long term leasehold land 50 years

•• Building improvement and renovations 10 years
•• Furniture, fixtures and fittings 2 – 10 years
•• Office equipment 6 years
•• Motor vehicles 5 years
•• Computer equipment 5 – 7 years
Depreciation methods, useful lives and residual values are reassessed at end of the reporting period, and
adjusted as appropriate.
253


2.7 Leases
Leases are recognised as Right-Of-Use (“ROU”) assets and corresponding liabilities at the date at which the
leased assets are available for use by the Group and the Bank. The right-of-use assets are depreciated over the
lease term on a straight-line basis.
The associated lease liabilities are measured at the present value of the remaining lease payments, discounted
using the interest rate implicit in the lease. If that rate cannot be readily determined, an incremental borrowing
rate is used in determining the discount rate which assumes the interest rate that the Group would have to pay
to borrow over a similar term, the funds necessary to obtain the asset. The weighted average incremental
borrowing rate applied for the Group and the Bank was at 5.7%.
Each lease payment is allocated between the lease liability and finance cost. The finance cost is charged to profit
or loss over the lease period so as to produce a constant periodic rate of profit on the remaining balance of the
liability for each period.
Payments associated with short-term leases are recognised on a straight-line basis as an expense in profit or loss.
Short-term leases are leases with a lease term of 12 months or less.
Lessee accounting
The Group and the Bank first consider whether a contract is, or contains a lease. A lease is defined as ‘a contract,
or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in
exchange for consideration’.
To apply this definition, the Group and the Bank assesses whether the contract meets three key evaluations
which are whether:
•• the contract contains an identified asset, which is either explicitly identified in the contract or implicitly
specified by being identified at the time the asset is made available to the Group and the Bank;
•• the Group and the Bank have the right to obtain substantially all of the economic benefits from use of the
identified asset throughout the period of use, considering its rights within the defined scope of the contract;
or
•• the Group and the Bank have the right to direct the use of the identified asset throughout the period of use.
The Group and the Bank assesses whether it has the right to direct ‘how and for what purpose’ the asset is used
throughout the period of use.
Measurement and recognition of leases as a lessee
At lease commencement date, the Group and the Bank recognises a right-of-use asset and a lease liability on
the statement of financial position. The ROU asset is measured at cost, which is made up of the initial
measurement of the lease liability, any initial direct costs incurred by the Group and the Bank, an estimate of
any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in advance
of the lease commencement date (net of any incentives received).
The Group and the Bank depreciates the ROU assets on a straight-line basis from the lease commencement date
to the earlier of the end of the useful life of the ROU asset or the end of the lease term. The Group and the Bank
also assesses the ROU asset for impairment when such indicators exist.
254

2.7 Leases (continued)
Lessee accounting (continued)
Measurement and recognition of leases as a lessee (continued)
At the commencement date, the Group and the Bank measures the lease liability at the present value of the
lease payments unpaid at that date, discounted using the profit rate implicit in the lease if that rate is readily
available or the Group’s or Bank’s incremental financing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in
substance fixed), variable payments based on an index or rate, amounts expected to be payable under a residual
value guarantee and payments arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for profit
expense. It is remeasured to reflect any reassessment or modification, or if there are changes in in-substance
fixed payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the ROU asset, or profit and
loss if the ROU asset is already reduced to zero.
The Group and the Bank have elected to account for short-term leases using the practical expedients. Instead
of recognising a ROU asset and lease liability, the payments in relation to these are recognised as an expense in
profit or loss on a straight-line basis over the lease term.
Lessor accounting
As a lessor, the Group and the Bank classifies its leases as either operating or finance leases. A lease is classified
as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of the underlying
asset, and classified as an operating lease if it does not.
Leases, where the Group and the Bank does not assume substantially all the risks and rewards of ownership are
classified as operating leases and, the leased assets are not recognised on the statement of financial position.
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of
the lease. Lease incentives received are recognised in profit or loss as an integral part of the total lease expense,
over the term of the lease. Contingent rentals are charged to profit or loss in the reporting period in which they
are incurred.
When the Group and the Bank are an intermediate lessor, it assesses the lease classification of a sublease with
reference to the ROU asset arising from the head lease, not with reference to the underlying asset. If a head
lease is a short-term lease to which the Group and the Bank apply the exemption described above, then it
classify the sublease as an operating lease.
2.8 Bills and other receivables

Bills and other receivables are stated at amortised cost less any allowance for impairment.
255


2.9 Impairment
Impairment of financial assets
(i) Impairment of financial assets
The Group and the Bank recognise allowance for impairment or allowance for expected credit losses “ECL”
on financial assets measured at amortised cost, financial guarantee contracts, financing commitments and
debt securities measured at FVOCI, but not to investments in equity instruments.
The Group and the Bank define a financial instruments that has objective evidence of impairment as default,
when it meets one or more of the following criteria;
Quantitative criteria;
i) Principal or profit of both is past due for more than 90 days/MIA 3

ii) Cross default
Qualitative criteria;
A financing is credit impaired when one or more triggers/criteria that have a detrimental impact on the
estimated future cash flow of the financial asset have occurred. The Group and the Bank consider the
following mandatory triggers;
i) Ceased operation
ii) Bankruptcy/wound up
iii) Fraud with investigation report duly confirmed as fraud
iv) Liquidator/R&M appointed
v) Deceased
Financial instruments that are credit-impaired with exposure more than RM1 million are assessed on
individual basis.
The Group and the Bank have considered the impact of the pandemic and has taken into account the
economic and financial measures announced by the Government in estimating the ECL on the financial
assets.
Under collective assessment, the Group and the Bank apply a three-stage approach to measuring ECL on
financial assets measured at amortised cost and FVOCI. Financial assets migrate through the following three
stages based on the change in credit quality since initial recognition:
i) Stage 1: 12 months ECL (“Stage 1”)
For exposures where there has not been a significant increase in credit risk since initial recognition and
that are not credit impaired upon recognition, the portion of lifetime ECL associated with the probability
of default events occurring within the next 12 months is recognised.
ii) Stage 2: Lifetime ECL – not credit impaired (“Stage 2”)
For exposures where there has been a significant increase in credit risk since initial recognition but that
are not credit impaired, a lifetime ECL is recognised.
256

2.9 Impairment (continued)
Impairment of financial assets (continued)
(i) Impairment of financial assets (continued)
iii) Stage 3: Lifetime ECL – credit impaired (“Stage 3”)
Financial assets are assessed as credit impaired when one or more events that have a negative impact
on the estimated future cash flows of that asset have occurred. For financial assets that have become
credit impaired, a lifetime ECL is recognised.
The Group and the Bank consider the economic and financial measures announced by the Government, i.e.
automatic moratorium as well as rescheduling and restructuring for eligible customers are granted as part
of an unprecedented government effort to support the economy amid the pandemic, rather than in
response to the financial circumstances of individual customers. Judgement is excercised in determining the
significant increase in credit risk for customers receiving relief assistance and do not automatically result in
a stage transfer.
When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating ECLs, the Group and the Bank consider reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the Group’s and the Bank’s historical experience, informed
credit assessment and including forward-looking information.
The Group and the Bank assume that the credit risk on a financial asset has increased significantly when it
is more than 30 days past due. The Group and the Bank also use its internal credit risk grading system and
external risk rating to assess deterioration in credit quality of a financial assets.
The Group and the Bank assess whether the credit risk on a financial asset has increased significantly on an
individual or collective basis. For the purposes of a collective evaluation of impairment, financial assets are
grouped on the basis of similar risk characteristics, taking into account the asset type, industry, geographical
location, collateral type, past-due status and other relevant factors. These characteristics are relevant to the
estimation of future cash flows for groups of such assets by being indicative of the counterparty’s ability to
pay all amounts due according to the contractual terms of the assets being evaluated.
(ii) Measurement of ECL
ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value
of all cash shortfalls (i.e. the difference between the cash flows due to the entity in accordance with the
contract and the cash flows that the Group and the Bank expect to receive).
ECLs are discounted at the effective profit rate of the financial asset.
257


(iii) Incorporation of forward-looking information
Relevant macroeconomic factors are incorporated in the risk parameters as appropriate. The key
macroeconomics variables (“MEV”) that are incorporated in determining ECLs include, Oil Price (“OP”), Gross
Domestic Product (“GDP”), House Price Index (“HPI”), and Kuala Lumpur Composite Index (“KLCI”).
Forward-looking macroeconomic forecasts are generated by the Group’s and the Bank’s Economist as part
of the ECL process. An economic forecast is accompanied with three economic scenarios: a base case (60%),
which is the median scenario, and two less likely scenarios, one upside (20%) and one downside (20%).
Selected MEVs are projected over the forecast period, and they could have a material impact in determining
ECLs. Forecasted MEVs are derived by Economist using time series econometrics. The data series are
procured from the official source such as Department of Statistics Malaysia (“DOSM”), BNM and other
government agencies. Prior to MEV forecast, Economist would gather his or her intelligence from discussion
with the policy makers, institutional investors and other news flow (main stream and social media) in order
to form an opinion. The opinion may cover the economic policies, business cycle and financial market
condition. This will be the main input before embarking MEV forecast exercise.
The methodology and assumptions including any forecasts of future economic conditions are reviewed
regularly.
(iv) Credit impaired financial assets
At each reporting date, the Group and the Bank assess whether financial assets carried at amortised cost
and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more
events that have a negative impact on the estimated future cash flows of the financial asset have occurred.
Certain mandatory and judgmental triggers that the Group and the Bank use to determine that there is
objective evidence of an impairment loss include:
•• significant financial difficulty of the issuer or obligor;

•• a breach of contract, such as default or delinquency in profit or principal payments;
•• the restructuring of a financing or advance by the Group and the Bank on terms that the Group and the
Bank would not consider otherwise;
•• it is probable that the borrower will enter bankruptcy or other financial reorganisation; or
•• based on external credit assessment institutions rating which indicates high likelihood of default.
(v) Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying
amount of the assets.
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in other
comprehensive income.
258

(vi) Restructured financing
A financing that is renegotiated is derecognised if the existing agreement is cancelled and a new agreement
made on substantially different terms or if the terms of an existing agreement are modified such that the
renegotiated financing is a substantially different instrument. Where such financing are derecognised, the
renegotiated contract is a new financing and impairment is assessed in accordance with the Group’s and
the Bank’s accounting policy.
Where the renegotiation of such financing are not derecognised, the gross carrying amount is recalculated
based on the revised cash flows with gain or loss on modification recognised in profit or loss. Impairment
continues to be assessed for significant increases in credit risk compared to the initial origination credit risk
rating.
(vii) Write-off
The gross carrying amount of a financial asset is written-off when the Group and the Bank have no
reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual
customers, the Group and the Bank have a policy of writing off the gross carrying amount when the
financial asset is 180 days past due based on historical experience of recoveries of similar assets. For
commercial and corporate customers, the Group and the Bank individually make an assessment with
respect to the timing and amount of write-off based on whether there is a reasonable expectation of
recovery. The Group and the Bank expect no significant recovery from the amount written-off. However,
financial assets that are written-off could still be subject to enforcement activities in order to comply with
the Group’s and the Bank’s procedures for recovery of amounts due.
Impairment of other assets
The carrying amount of other assets (except for current tax assets and deferred tax assets) are reviewed at the
end of each reporting period to determine whether there is any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated.
The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset.
An impairment loss is recognised if the carrying amount of an asset exceeds its recoverable amount. Impairment
losses are recognised in the profit or loss.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are
credited to the profit or loss in the year in which the reversals are recognised.
259


2.10 Bills and acceptances payable
Bills and acceptances payable represent the Group’s and the Bank’s own bills and acceptances rediscounted
and outstanding in the market.
2.11 Government grants

Grant from the government are recognised at their fair value when there is a reasonable assurance that the
grant will be received and the Group and the Bank will comply with all attached conditions.
Government grants relating to costs are recognised in the profit or loss over the periods to match the related
costs for which the grants are intended to compensate.
The benefit of a government loan at a below-market rate of interest is treated as a government grant. The loan
shall be recognised and measured in accordance with MFRS 9 Financial Instruments. The benefit of the below-
market rate of interest shall be measured as the difference between the initial carrying value of the loan
determined in accordance with MFRS 9 and the proceeds received. The benefit is accounted for in accordance
with MFRS 120. The Group and the Bank shall consider the conditions and obligations that have been, or must
be, met when identifying the costs for which the benefit of the loan is intended to compensate.
2.12 Provisions
A provision is recognised if, as a result of a past event, the Group and the Bank have a present legal or
constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits
will be required to settle the obligation.
The provisions are reviewed at each reporting date and if it is no longer probable that an outflow of resources
embodying economic benefits will be required to settle the obligation, the provision is reversed.
2.13 Contingent liabilities

Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is not recognised in the statements of financial position and is disclosed as a
contingent liability, unless the probability of outflow of economic benefits is remote. Possible obligations, whose
existence will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly
within the control of the Group and the Bank, are also disclosed as contingent liabilities unless the probability
of outflow of economic benefits is remote.
2.14 Contingent assets

A contingent asset is a possible asset that arises from past events whose existence will be confirmed by the
occurence or non-occurrence of one or more uncertain future events beyond the control of the Group and the
Bank. The Group and the Bank do not recognise contingent assets but discloses its existence where inflows of
economic benefits are probable, but not virtually certain.
2.15 Segment reporting

An operating segment is a component of the Group that engages in business activities from which it may earn
revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Group’s
other components. An operating segment’s operating results are reviewed regularly by the chief operating decision
maker, which in this case is the Chief Executive Officer of the Group, to make decisions about resources to be
allocated to the segment and to assess its performance, and for which discrete financial information is available.
260

2.16 Share Capital
Ordinary shares are classified as equity in the statement of financial position. Cost directly attributable to the
issuance of new equity shares are taken to equity as a deduction from the proceeds.
Dividend distribution
Liability is recognised for the amount of any dividend declared, being appropriately authorised and no longer at the
discretion of the Group, on or before the end of the reporting period but not distributed at the end of the reporting
period. Distributions to holders of an equity instrument is recognised directly in equity.
2.17 Recognition of income

Financing income
Financing income is recognised in the profit or loss using the effective profit rate method. The effective profit
rate is the rate that discounts estimated future cash payments or receipts through the expected life of the
financial instruments or, when appropriate, a shorter period to the net carrying amount of the financial
instruments. When calculating the effective profit rate, the Group and the Bank have considered all contractual
terms of the financial instruments but do not consider future credit losses. The calculation includes all fees and
transaction costs integral to the effective profit rate, as well as premium or discounts.
Income from a sale-based contract is recognised on effective profit rate basis over the period of the contract
based on the principal amounts outstanding whereas income from Ijarah (lease-based contract) is recognised
on effective profit rate basis over the lease term.
For credit-impaired financial assets the effective profit rate is applied to the net carrying amount of the financial
assets (after deduction of the loss allowance).
Fee and other income recognition
Financing arrangement, management and participation fees, underwriting commissions, brokerage fees and
wakalah performance incentive fees are recognised as income based on contractual arrangements. Fees from
advisory and corporate finance activities are recognised net of service tax, discounts on satisfaction of
performance obligations and completion of each stage of the assignment.
Dividend income from subsidiaries and other investments are recognised when the Group’s and the Bank’s
rights to receive payment is established.
2.18 Material profit or loss items

The Group and the Bank have identified item which is material due to the significance of their nature and/or
their amount. This is listed separately here to provide a better understanding of the financial performance of
the Group and of the Bank.
Group and Bank
2021 2020
RM’000 RM’000
Loss on modification of financial assets (48,911) (136,380)
261


2.18 Material profit or loss items (continued)
During the previous financial year, the Group and the Bank granted an automatic moratorium on certain
financing repayments (except for credit card balances), to individuals and small and medium enterprises (SMEs)
for a period of six months from 1 April 2020. The automatic moratorium was applicable to financing that are
not in arrears exceeding 90 days and denominated in Malaysian Ringgit. This measure was to assist customers
experiencing temporary financial constraints due to the COVID-19 pandemic.
Following the end of the six-month blanket moratorium, the Group and the Bank continue to support financing
customers that face difficulties in fulfilling their financial obligation, through various Repayment Assistance
(“RA”) programme.
As a result of the payment moratorium and TRA, the Group and the Bank recognised a one-off loss of
RM48,910,000 (2020: RM136,380,000 arising from the modification of the expected cash flows of the financing.
The following table includes a summary of information for financial assets with lifetime ECL whose cash flows
were modified during the financial year as part of the Group and Bank’s restructuring and rescheduling
activities and their respective effect on the Group and the Bank’s financial performance:
Group and Bank
2021 2020
RM’000 RM’000
Financing, advances and others:

Amortised cost before modification 1,247,366 1,881,218
Net modification loss 1,232,548 1,867,943
2.19 Income tax

Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit
or loss except to the extent that it relates to a business combination or items recognised directly in equity or
other comprehensive income.
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted by the end of the reporting period, and any adjustment to tax payable in
respect of previous financial years.
Deferred tax is recognised using the liability method, providing for temporary differences between the carrying
amounts of assets and liabilities in the statement of financial position and their tax bases. Deferred tax is not
recognised for the following temporary differences: the initial recognition of assets or liabilities in a transaction
that is not a business combination and that affects neither accounting nor taxable profit or loss. Deferred tax
is measured at the tax rates that are expected to be applied to the temporary differences when they reverse,
based on the laws that have been enacted or substantively enacted by the end of the reporting period.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realised simultaneously.
262

2.19 Income tax (continued)
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at the end of each
reporting period and are reduced to the extent that it is no longer probable that the related tax benefit will be
realised.
2.20 Zakat
This represents business zakat that is paid on the Bank’s portion. It is an obligatory amount payable by the
Group and the Bank to comply with the rules and principles of Shariah.
2.21 Employee benefits

Short-term employee benefits
Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave
are measured on an undiscounted basis and are expensed as the related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus and termination
benefits if the Group and the Bank have a present legal or constructive obligation to pay this amount as a result
of past service provided by the employee and the obligation can be estimated reliably.
The Group’s and the Bank’s contribution to the Employees Provident Fund is charged to the profit or loss in
the year to which they relate. Once the contributions have been paid, the Group and the Bank have no further
payment obligations.
2.22 Earnings per ordinary shares

The Group presents basic earnings per share data for its ordinary shares (“EPS”). Basic EPS is calculated by
dividing the profit or loss attributable to ordinary shareholders of the Group by the weighted average number
of ordinary shares outstanding during the year.
2.23 Fair value measurements

‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date in the principal or, in its absence, the most
advantageous market to which the Group and the Bank have access at that date. The fair value of a liability
reflects its non-performance risk.
When available, the Group and the Bank measure the fair value of an instrument using the quoted price in an
active market for that instrument. A market is regarded as active if transactions for the asset or liability take
place with sufficient frequency and volume to provide pricing information on an ongoing basis.
If there is no quoted price in an active market, then the Group and the Bank use valuation techniques that
maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The chosen
valuation technique incorporates all of the factors that market participants would take into account in pricing
a transaction.
263


2.23 Fair value measurements (continued)
The best evidence of the fair value of a financial instrument at initial recognition is normally the transaction
price – i.e. the fair value of the consideration given or received. If the Group and the Bank determines that the
fair value at initial recognition differs from the transaction price and the fair value is evidenced neither by a
quoted price in an active market for an identical asset or liability nor based on a valuation technique that uses
only data from observable markets, then the financial instrument is initially measured at fair value, adjusted to
defer the difference between the fair value at initial recognition and the transaction price. Subsequently, that
difference is recognised in profit or loss on an appropriate basis over the life of the instrument but no later than
when the valuation is wholly supported by observable market data or the transaction is closed out.
If an asset or a liability measured at fair value has a bid price and an ask price, then the Group measures assets
and long positions at a bid price and liabilities and short positions at an ask price.
Portfolios of financial assets and financial liabilities that are exposed to market risk and credit risk that are
managed by the Group on the basis of the net exposure to either market or credit risk are measured on the
basis of a price that would be received to sell a net long position (or paid to transfer a net short position) for a
particular risk exposure. Those portfolio-level adjustments are allocated to the individual assets and liabilities on
the basis of the relative risk adjustment of each of the individual instruments in the portfolio.
The fair value of a demand deposit is not less than the amount payable on demand, discounted from the first
date on which the amount could be required to be paid.
The Group and the Bank recognise transfers between levels of the fair value hierarchy as of the end of the
reporting period during which the change has occurred.
3. CASH AND SHORT-TERM FUNDS
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Cash and balances with banks and other financial

institutions 754,313 725,644 751,187 725,548
Money at call and interbank placements with
remaining maturity not exceeding three months 4,468,535 4,491,093 4,453,177 4,490,732
5,222,848 5,216,737 5,204,364 5,216,280
All bank balances are assessed to have low credit risk as they are held with reputable banking institutions and the
identified expected credit loss was immaterial.
Cash and bank balances of the Group includes restricted cash amounting to RM10,391,000 (2020: RM4,423,000) which
is attributed to the creation of units of the funds. Accordingly, amount due to trustee was recognised and disclosed
in Note 19 to the financial statements.
264
4. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS (“FVTPL”)
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Malaysian Government Investment Issues – 602,925 – 602,925

Unit trust 295,395 238,490 263,611 232,730
Malaysian Islamic Treasury Bills 1,131,574 243,618 1,131,574 243,618
Islamic Commercial Paper 145,300 30,051 145,300 30,051
Corporate Sukuk 10,225 66,116 10,215 66,116
1,582,494 1,181,200 1,550,700 1,175,440
5. DERIVATIVE FINANCIAL ASSETS/(LIABILITIES)

The following tables summarise the contractual or underlying principal amounts of derivative financial instruments
held at fair value through profit or loss. The principal or contractual amount of these instruments reflects the volume
of transactions outstanding at financial position date, and do not represent amounts at risk.
Trading derivative financial instruments are revalued on a gross position and the unrealised gains or losses are
reflected as derivative financial assets and liabilities respectively.
2021
Fair value
Notional
amount Assets Liabilities
Group and Bank RM’000 RM’000 RM’000
Forward contracts 7,505,850 25,120 (19,753)

Profit rate swaps 79,153 917 (668)
7,585,003 26,037 (20,421)
2020
Fair value
Notional
amount Assets Liabilities
Group and Bank RM’000 RM’000 RM’000
Forward contracts 8,518,422 59,494 (104,228)

Profit rate swaps 114,056 2,171 (1,644)
8,632,478 61,665 (105,872)
265

6. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (“FVOCI”)
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Financial assets at FVOCI:

(a) Debt instrument* 12,526,670 12,494,040 12,526,670 12,494,040
(b) Equity instrument 77,534 63,951 78,397 64,689
12,604,204 12,557,991 12,605,067 12,558,729
* Included in debt instruments are investment made in Malaysian Government Securities (“MGS”) and Malaysian Government Investment
Issues (“MGII”) amounting to RM600,000,000 (2020: RM600,000,000) as part of the Bank’s Statutory Reserves Requirements (“SRR”)
compliance.
(a) Debt instrument at FVOCI
Group and Bank
2021 2020
RM’000 RM’000
Malaysian Government Investment Issues 3,497,806 2,919,864

Corporate Sukuk 7,143,163 9,314,815
Malaysian Islamic Treasury Bills 962,313 –
Islamic Commercial Papers 923,388 259,361
12,526,670 12,494,040
Movement of allowance for impairment on financial assets at FVOCI:
Group and Bank
2021 2020
RM’000 RM’000
Stage 1
At 1 January 403 265
Net allowances made during the year 6,834 138
At 31 December 7,237 403
266
6.
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (“FVOCI”)
(CONTINUED)
(b) Equity instrument at FVOCI
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Quoted Shares
– outside Malaysia# 17,004 13,755 17,004 13,755
Unquoted Shares
– in Malaysia* 60,515 50,194 61,378 50,932
– outside Malaysia 15 2 15 2
60,530 50,196 61,393 50,934
77,534 63,951 78,397 64,689
The Group and the Bank designated certain investments as equity instrument at FVOCI. The FVOCI designation
was made because these instruments are either held for socio-economic purposes or not for trading purposes.
Equity instrument at FVOCI of the Bank mainly comprise the following significant individual investment:
Fair value Dividend income
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
#
Amana Bank Limited 17,004 13,755 – 503
*Payment Networks Malaysia Sdn Bhd 60,515 49,478 – –
7. FINANCIAL ASSETS AT AMORTISED COST (“AC”)
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Debt instrument at amortised cost:

Malaysian Government Investment Issues 802,446 – 802,446 –
Corporate sukuk 551,687 5,289 551,687 5,289
1,354,133 5,289 1,354,133 5,289

Less: Allowance for impairment
Stage 3
– Corporate sukuk (5,289) (5,289) (5,289) (5,289)
1,348,844 – 1,348,844 –
267

8. FINANCING, ADVANCES AND OTHERS

(a) By type and Shariah contract
Ijarah
Bai’ Muntahiah
Bithaman Bai’ Bai’ At- Bit-
Group and Bank Ajil Murabahah Al-Dayn Al-Inah Tawarruq Tamleek^ Istisna’ Total
2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cash line - - - 484 1,429,002 - - 1,429,486

Term financing
House financing 2,977,908 - - - 20,513,876 - 42,469 23,534,253
Syndicated financing - - - - 1,454,811 - - 1,454,811
Leasing financing - - - - - 96,020 - 96,020
Bridging financing - - - - - - 40,328 40,328
Personal financing - - - 3,734 18,071,544 - - 18,075,278
Other term financing 295,209 1,383,579 - 11,080,781 - 961 12,760,530
Staff financing 40,459 18,789 - - 398,071 - 6,553 463,872
Credit cards - - - - 445,839 - - 445,839
Trade bills discounted - 622,908 107,820 - 87,051 - - 817,779
Trust receipts - 4,415 - - - - - 4,415
Pawn broking - 95,124 - - - - - 95,124
3,313,576 2,124,815 107,820 4,218 53,480,975 96,020 90,311 59,217,735
Allowance for impairment on financing, advances and others

– Stage 1 (487,308)
– Stage 2 (303,998)
– Stage 3 (272,660)
Net financing, advances and others 58,153,769
^ Assets funded under Ijarah financing are owned by the Bank throughout the tenure of the Ijarah financing and ownership of the assets will be transferred to
customer at the end of financing tenure for a token consideration or other amount as specified in the Ijarah financing contract.
268
8. FINANCING, ADVANCES AND OTHERS (CONTINUED)

(a) By type and Shariah contract (continued)
Ijarah
Bai’ Muntahiah
Bithaman Bai’ Bai’ At- Bit-
Group and Bank Ajil Murabahah Al-Dayn Al-Inah Tawarruq Tamleek^ Istisna’ Ar-Rahnu Total
2020 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
At amortised cost
Cash line – – – 1,465 1,287,126 – – – 1,288,591
Term financing
House financing 3,238,398 – – – 18,280,073 – 45,780 – 21,564,251
Syndicated financing – – – – 1,459,016 – – – 1,459,016
Leasing financing – – – – – 114,300 – – 114,300
Bridging financing – – – – – – 47,380 – 47,380
Personal financing – – – 5,256 16,816,181 – – – 16,821,437
Other term financing 487,567 1,411,820 – 15 10,736,190 – 1,119 – 12,636,711
Staff financing 46,367 15,847 – – 307,861 – 7,584 – 377,659
Credit cards – – – – 447,471 – – – 447,471
Trade bills
discounted – 631,567 31,221 3,034 164,888 – – – 830,710
Trust receipts – 5,584 5 – – – – – 5,589
Pawn broking – – – – – – – 5,481 5,481
3,772,332 2,064,818 31,226 9,770 49,498,806 114,300 101,863 5,481 55,598,596
Allowance for impairment on financing, advances and others

– Stage 1 (653,983)
– Stage 2 (151,446)
– Stage 3 (122,532)
Net financing, advances and others 54,670,635
^ Assets funded under Ijarah financing are owned by the Bank throughout the tenure of the Ijarah financing and ownership of the assets will be transferred to
customer at the end of financing tenure for a token consideration or other amount as specified in the Ijarah financing contract.
269


(a) By type and Shariah contract (continued)
Included in financing, advances and others are house financing and personal financing that are used for the
underlying assets of Unrestricted Investment Accounts (“UA”) and financing sold to Cagamas with recourse to
the Group and the Bank. The details are as follows:
Group Bank
2021 2020 2021 2020

Note RM’000 RM’000 RM’000 RM’000
House financing
Unrestricted Investment Accounts 16 8,554,270 8,740,902 8,608,619 8,741,086
Sold to Cagamas with recourse 17 2,001,720 1,501,187 2,001,720 1,501,187
10,555,990 10,242,089 10,610,339 10,242,273
Personal financing
Unrestricted Investment Accounts 16 1,898,632 3,627,626 1,952,982 3,627,811
(b) By type of customer
Group and Bank
2021 2020
RM’000 RM’000
Domestic banking institutions 200,018 200,459

Domestic non-bank financial institutions 1,089,617 1,272,857
Domestic business enterprise 10,137,127 9,859,263
Small & medium enterprises 2,169,436 1,799,003
Government & statutory bodies 919,583 743,051
Individuals 44,451,160 41,353,603
Other domestic entities 21,676 102,008
Foreign entities 229,118 268,352
59,217,735 55,598,596
270

(c) By profit rate sensitivity
Group and Bank
2021 2020
RM’000 RM’000
Fixed rate
House financing 983,468 732,437
Others 4,645,157 3,859,673
Floating rate
House financing 23,238,913 21,485,764
Others 30,350,197 29,520,722
59,217,735 55,598,596
(d) By remaining contractual maturity
Group and Bank
2021 2020
RM’000 RM’000
Maturity within one year 4,117,569 3,660,883

More than one year to three years 1,731,612 1,516,856
More than three years to five years 3,136,006 3,272,167
More than five years 50,232,548 47,148,690
59,217,735 55,598,596
(e) By geographical distribution
Group and Bank
2021 2020
RM’000 RM’000
Central Region 26,946,146 25,745,132

Eastern Region 9,368,591 8,757,468
Northern Region 8,066,342 7,431,066
Southern Region 10,247,330 9,416,361
East Malaysia Region 4,589,326 4,248,569
59,217,735 55,598,596
271


(f) By sector
Group and Bank
2021 2020
RM’000 RM’000
Primary agriculture 960,757 1,044,451

Mining and quarrying 67,474 67,305
Manufacturing (including agro-based) 1,008,846 1,001,272
Electricity, gas and water supply 2,054,242 2,032,684
Wholesale & retail trade, and restaurants & hotels 956,449 951,149
Construction 2,864,869 2,736,468
Transport, storage and communications 726,341 681,659
Finance, insurance, real estate and business activities 4,735,590 4,557,954
Education, health and others 1,387,814 1,168,902
Household sectors 44,455,353 41,356,752
59,217,735 55,598,596
(g) By stages
Stage 1 Stage 2 Stage 3 Total

Group and Bank RM’000 RM’000 RM’000 RM’000
At 1 January 2020 48,265,712 1,525,256 433,001 50,223,969

Transfer to Stage 1 263,081 (237,179) (25,902) –
Transfer to Stage 2 (843,859) 876,712 (32,853) –
Transfer to Stage 3 (45,319) (68,566) 113,885 –
Financial assets that have been derecognised (7,012,865) (280,945) (16,214) (7,310,024)
New financial assets originated or purchased 12,410,241 480,762 13,992 12,904,995
Modification of contractual cash flows (104,033) – – (104,033)
Write-offs – – (112,675) (112,675)
Exchange differences (3,636) – – (3,636)
At 31 December 2020/1 January 2021 52,929,322 2,296,040 373,234 55,598,596

Transfer to Stage 1 607,206 (593,384) (13,822) –
Transfer to Stage 3 (308,485) (54,276) 362,761 –
Financial assets that have been derecognised (7,539,292) (491,190) (7,493) (8,037,975)
New financial assets originated or purchased 11,490,674 305,048 4,684 11,800,406
Modification of contractual cash flows (25,323) (5) – (25,328)
Write-offs – – (127,949) (127,949)
Exchange differences 9,985 – – 9,985
At 31 December 2021 56,543,861 2,105,491 568,383 59,217,735
272

(h) Movement in impaired financing and advances (“impaired financing”)
Group and Bank
2021 2020
RM’000 RM’000
At 1 January 373,234 433,001
Classified as impaired during the year 597,779 311,012

Reclassified as not impaired during the year (212,296) (190,989)
Amount repaid (62,386) (67,114)
Amount written-off (127,948) (112,676)
At 31 December 568,383 373,234
Gross impaired financing as a percentage of gross financing, advances and

others 0.96% 0.67%
The contractual amount outstanding on financing and advances that were written-off during the year are still
subject to enforcement activity.
(i) Impaired financing by geographical distribution
Group and Bank
2021 2020
RM’000 RM’000
Central Region 395,781 174,617

Eastern Region 68,146 86,291
Northern Region 74,751 78,220
Southern Region 17,458 19,167
East Malaysia Region 12,247 14,939
568,383 373,234
(j) Impaired financing by sector
Group and Bank
2021 2020
RM’000 RM’000
Manufacturing (including agro-based) 10,307 28,328

Wholesale & retail trade, and hotels & restaurants 76,992 89,812
Construction 285,246 36,220
Finance, insurance, real estate and business activities 5,932 6,141
Education, health & others 1,391 3,969
Household sectors 173,204 190,963
568,383 373,234
273


(k) Movement of allowance for impairment on financing, advances and others
Stage 1 Stage 2 Stage 3 Total

At 1 January 2020 431,135 148,115 172,197 751,447

Transfer to Stage 1 1,245 (1,179) (66) –
Transfer to Stage 3 (264) (7,659) 7,923 –
Changes in credit risk 134,059 13,592 60,558 208,209
New financial assets originated or purchased 139,295 6,403 686 146,384
Financial assets that have been derecognised (44,708) (18,334) (3,364) (66,406)
Write-offs – – (112,676) (112,676)
Exchange differences 1,003 – – 1,003
At 31 December 2020/1 January 2021 653,983 151,446 122,532 927,961

Transfer to Stage 1 2,461 (2,416) (45) –
Transfer to Stage 3 (167) (5,036) 5,203 –
Changes in credit risk (189,876) 164,283 277,396 251,803
New financial assets originated or purchased 98,862 8,326 2,029 109,217
Financial assets that have been derecognised (68,660) (21,431) (4,992) (95,083)
Write-offs – – (127,948) (127,948)
Exchange differences (1,984) – – (1,984)
At 31 December 2021 487,308 303,998 272,660 1,063,966
(l) Effect of modifications on the measurement of allowance for impaired financing, advances
and others
The following table discloses information on financing and advances that were modified but not derecognised
during the year, for which the allowance for impaired financing, advances and others were measured at a lifetime
ECL at the beginning of the year, and at the end of the year had changed to a 12-months ECL:
Group and Bank
2021 2020
RM’000 RM’000
Amortised cost before the modification 4,549 431

Net modification loss 5 439
274
9. OTHER ASSETS
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Other receivables 265,271 168,256 214,908 157,952

Deposit and prepayments 50,343 41,012 43,730 40,457
Related companies* 1,071 1,056 2,173 1,154
316,685 210,324 260,811 199,563

Less: Allowance for impairment
Stage 3
– Other receivables (3,731) (2,975) (3,731) (2,975)
312,954 207,349 257,080 196,588
* This relates to amounts due from subsidiaries and related companies that are unsecured, not subject to compensation charges for late
payment and repayment is neither fixed nor expected.
10. STATUTORY DEPOSITS WITH BANK NEGARA MALAYSIA

The non-interest bearing statutory deposits are maintained with Bank Negara Malaysia in compliance with Section
26(2)(c) of the Central Bank of Malaysia Act, 2009, the amount of which are determined as set percentages of total
eligible liabilities.
275

11. DEFERRED TAX ASSETS

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets
against current tax liabilities and when the deferred taxes relate to the same tax authority.
The components of deferred tax assets and liabilities during the financial year are as follows:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Deferred tax assets 193,214 1,511 191,773 –

Deferred tax liabilities – (74,445) – (74,445)
193,214 (72,934) 191,773 (74,445)
Deferred tax assets:

Provisions for expenses 26,301 32,505 26,393 32,520
Financing, advances and others 104,763 86,457 104,763 86,457
Lease liabilities 25,795 24,673 25,768 24,646
FVOCI Reserves 46,292 – 46,292 –
Tax losses 1,510 1,510 – –
Unabsorbed capital allowances 10 – – –
Offsetting (11,457) (143,634) (11,443) (143,623)
Total deferred tax assets 193,214 1,511 191,773 –
Deferred tax liabilities:

Property and equipment (11,457) (6,370) (11,443) (6,359)
FVOCI Reserves – (48,379) – (48,379)
Deferred income from moratorium – (163,330) – (163,330)
Offsetting 11,457 143,634 11,443 143,623
Total deferred tax liabilities – (74,445) – (74,445)
276
11. DEFERRED TAX ASSETS (CONTINUED)

The movement in temporary differences during the year are as follows:
Financing, Deferred
Provision advances Unabsorbed income Property
for and Lease Capital from Tax and FVOCI
expenses others liabilities Allowances moratorium losses equipment Reserves Total
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Group
At 1 January 2020 33,347 33,108 23,142 – – 1,510 (3,462) (53,871) 33,774
Recognised in profit or loss (842) 53,349 1,531 – (163,330) – (2,908) – (112,200)
Recognised in other
comprehensive income – – – – – – – 5,492 5,492
At 31 December 2020/
1 January 2021 32,505 86,457 24,673 – (163,330) 1,510 (6,370) (48,379) (72,934)
Acquisition of subsidiary – – – 10 – – – – 10
Recognised in profit or loss (6,204) 18,306 1,122 – 163,330 – (5,087) – 171,467
Recognised in other
At 31 December 2021 26,301 104,763 25,795 10 – 1,510 (11,457) 46,292 193,214
Bank
At 1 January 2020 33,347 33,108 23,142 – – – (3,458) (53,871) 32,268
Recognised in profit or loss (827) 53,349 1,504 – (163,330) – (2,901) – (112,205)
Recognised in other
At 31 December 2020/
1 January 2021 32,520 86,457 24,646 – (163,330) – (6,359) (48,379) (74,445)
Recognised in profit or loss (6,127) 18,306 1,122 – 163,330 – (5,084) – 171,547
Recognised in other
At 31 December 2021 26,393 104,763 25,768 – – – (11,443) 46,292 191,773
277

11. DEFERRED TAX ASSETS (CONTINUED)

Deferred tax assets have not been recognised in respect of the following items:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Unabsorbed capital allowance 131,819 131,819 131,784 131,784

Unutilised tax losses 1,251 1,251 – –
Deductible temporary differences 329 329 – –
133,399 133,399 131,784 131,784
Under the current tax legislation, the unutilised tax losses will expire in year 2025 where the unutilised capital
allowance do not expire.
The Bank’s unabsorbed capital allowances of RM131,784,000 (2020: RM131,784,000) is in respect of its leasing business,
whereby management considered it is uncertain whether the Bank is able to utilise the benefits in the future. As
such, deferred tax assets have not been recognised.
12. RIGHTS-OF-USE ASSETS AND LEASE LIABILITIES

The statement of financial position shows the following amounts relating to leases:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Right-of-use assets (Buildings)

As at 1 January 209,736 229,135 209,736 229,135
Addition 4,461 432 3,920 401
Reversal – (1,483) – (1,483)
Depreciation (18,197) (18,348) (18,042) (18,317)
As at 31 December 196,000 209,736 195,614 209,736
Lease liabilities
As at 1 January 312,429 325,559 312,429 325,559
Addition 4,512 437 3,915 401
Reversal – (1,472) – (1,472)
Payments of lease liabilities (30,818) (29,920) (30,676) (29,883)
Finance cost 17,312 17,836 17,303 17,835
Effects of movement in exchange rates 13 (11) 13 (11)
As at 31 December 303,448 312,429 302,984 312,429
278
12. RIGHTS-OF-USE ASSETS AND LEASE LIABILITIES (CONTINUED)

The statement of profit or loss shows the following amounts relating to leases:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Expenses relating to short-term leases (included in

other overhead expenses) 35,165 35,192 35,012 35,477
Total cash outflow of leases (including short-term leases) 65,983 65,112 65,688 65,360
The nature of the Group’s and the Bank’s leasing activities recognised in the statement of financial position are
described as below:
No. of
leases
Range of Average with
No. of remaining remaining termination
leases terms lease terms option
Right-of-use assets:
Buildings 8 0.5-14.4 years 14.2 years 8
Future minimum lease payments are as follows:
Minimum lease payment

due
Within
1 year 1 – 5 years > 5 years Total
RM’000 RM’000 RM’000 RM’000
Group
31 December 2021
Lease payment 29,956 113,434 309,264 452,654
Finance cost 17,536 59,931 71,739 149,206
Net present value 12,420 53,502 237,526 303,448
31 December 2020
Lease payment 30,639 109,103 338,038 477,780
Finance cost 17,203 62,552 85,596 165,351
Bank
31 December 2021
Lease payment 29,481 113,434 309,264 452,179
Finance cost 17,525 59,931 71,739 149,195
31 December 2020
Lease payment 30,639 109,103 338,038 477,780
Finance cost 17,203 62,552 85,596 165,351
279

13. INVESTMENTS IN SUBSIDIARIES
Bank
2021 2020
RM’000 RM’000
At cost
Unquoted shares in Malaysia 101,827 16,447
Less: Accumulated impairment loss (922) (922)
100,905 15,525
Movement of Investment in Subsidiaries

At 1 January 16,447 16,447
Acquisition via Proposed Internal Reorganisation (Note 46) 85,380 –
At 31 December 101,827 16,447
The principal place of business and country of incorporation of the subsidiaries is Malaysia unless stated otherwise.
Details of subsidiaries are as follows:
Effective ownership
interest
2021 2020
Name of Company Principal activities % %
Al-Wakalah Nominees (Tempatan) Sdn. Bhd. Provides nominee services 100 100
BIMB Investment Management Berhad Manages Islamic Unit Trust Funds 100 100
Bank Islam Trust Company (Labuan) Ltd. Provides services as a Labuan 100 100
and its subsidiary: registered trust company
BIMB Offshore Company Management Dormant 100 100
Services Sdn. Bhd.
Farihan Corporation Sdn. Bhd. Provides manpower services to the 100 100
Bank
BIMB Holdings Sdn. Bhd. (formerly known Dormant 100 –
as BIMB Holdings Berhad)^
BIMB Securities (Holdings) Sdn. Bhd.^ Investment holding 100 –
and its subsidiary:
BIMB Securities Sdn. Bhd.^ Stockbroking 100 –
and its subsidiaries:
BIMSEC Nominees (Tempatan) Sdn. Bhd.^ Provides nominee services 100 –
BIMSEC Nominees (Asing) Sdn. Bhd.^ Provides Nominee services 100 –
Syarikat Al-Ijarah Sdn. Bhd.^ Leasing of assets 100 –
^ Subsidiaries acquired during the financial year pursuant to the Proposed Internal Reorganisation (Note 46)
280
14. PROPERTY AND EQUIPMENT
Management
Building information
Long term improvements Furniture, Renovation system
leasehold Freehold Freehold and fixtures and Office Computer Motor work-in- under
land land building renovations fittings equipment equipment vehicles progress development Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2021 14,784 – – 36,033 136,648 102,585 480,558 943 3,987 56,675 832,213
From group reorganisation – 143 481 273 5 9 1,027 – 509 – 2,447
Additions – – – 508 2,419 3,407 13,502 – 815 50,504 71,155
Reclassifications – – – – – 29 36,506 – (45) (36,490) –
Disposals – – – – – (94) (6,222) (74) – – (6,390)
Written-off – – – (184) (823) (5,971) (21,694) – – – (28,672)
Exchange difference – – – – 11 10 12 – – – 33
At 31 December 2021 14,784 143 481 36,630 138,260 99,975 503,689 869 5,266 70,689 870,786
Accumulated depreciation
At 1 January 2021 2,348 – – 29,123 108,486 91,229 369,233 794 – – 601,213
Depreciation for the year 174 – 12 1,743 7,756 5,040 44,407 93 – – 59,225
Disposals – – – – – (92) (6,218) (74) – – (6,384)
Written-off – – – (86) (469) (5,840) (21,658) – – – (28,053)
Exchange difference – – – – 11 10 11 – – – 32
At 31 December 2021 2,522 – 12 30,780 115,784 90,347 385,775 813 – – 626,033
Net carrying amount

At 31 December 2021 12,262 143 469 5,850 22,476 9,628 117,914 56 5,266 70,689 244,753
281

14. PROPERTY AND EQUIPMENT (CONTINUED)
Management
Building Furniture, information
Long term improvements fixtures Renovation system
leasehold and and Office Computer Motor work-in- under
land renovations fittings equipment equipment vehicles progress development Total
Group RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2020 14,784 35,764 135,352 102,239 445,043 943 4,362 23,428 761,915
Additions – 646 2,370 4,478 32,100 – 2,130 51,155 92,879
Reclassifications – 372 1,782 351 17,908 – (2,505) (17,908) –
Disposals – – (81) (85) (903) – – – (1,069)
Written-off – (749) (2,770) (4,391) (13,584) – – – (21,494)
Exchange difference – – (5) (7) (6) – – – (18)
At 31 December 2020 14,784 36,033 136,648 102,585 480,558 943 3,987 56,675 832,213
At 1 January 2020 2,174 27,857 101,793 89,781 344,014 701 – – 566,320
Depreciation for the year 174 1,849 8,871 5,881 39,678 93 – – 56,546
Disposals – – (81) (85) (901) – – – (1,067)
Written-off – (583) (2,092) (4,342) (13,552) – – – (20,569)
At 31 December 2020 2,348 29,123 108,486 91,229 369,233 794 – – 601,213
Net carrying amount

At 31 December 2020 12,436 6,910 28,162 11,356 111,325 149 3,987 56,675 231,000
282
Management
Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2021 14,784 35,795 136,559 102,269 478,250 943 3,987 56,675 829,262
Additions – 508 2,419 3,305 13,374 – 752 50,504 70,862
Reclassifications – – – – 36,490 – – (36,490) –
Disposals – – – (48) (6,220) (74) – – (6,342)
Written-off – (184) (817) (5,947) (21,690) – – – (28,638)
Exchange difference – – 11 7 3 – – – 21
At 31 December 2021 14,784 36,119 138,172 99,586 500,207 869 4,739 70,689 865,165
At 1 January 2021 2,348 28,896 108,411 90,931 367,366 794 – – 598,746
Disposals – – – (47) (6,216) (74) – – (6,337)
Written-off – (86) (463) (5,816) (21,654) – – – (28,019)
Exchange difference – – 11 7 2 – – – 20
At 31 December 2021 2,522 30,513 115,706 90,106 383,553 813 – – 623,213
Net carrying amount

At 31 December 2021 12,262 5,606 22,466 9,480 116,654 56 4,739 70,689 241,952
283

Management
Bank RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Cost
At 1 January 2020 14,784 35,526 135,263 101,929 442,917 943 4,362 23,428 759,152
Additions – 646 2,370 4,470 31,913 – 2,130 51,155 92,684
Reclassifications – 372 1,782 351 17,908 – (2,505) (17,908) –
Disposals – – (81) (85) (903) – – – (1,069)
Written-off – (749) (2,770) (4,391) (13,584) – – – (21,494)
At 31 December 2020 14,784 35,795 136,559 102,269 478,250 943 3,987 56,675 829,262
At 1 January 2020 2,174 27,646 101,727 89,486 342,318 701 – – 564,052
Disposals – – (81) (85) (901) – – – (1,067)
Written-off – (583) (2,092) (4,342) (13,552) – – – (20,569)
At 31 December 2020 2,348 28,896 108,411 90,931 367,366 794 – – 598,746
Net carrying amount

At 31 December 2020 12,436 6,899 28,148 11,338 110,884 149 3,987 56,675 230,516
284
15. DEPOSITS FROM CUSTOMERS

(a) By type of deposit
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Savings Deposit
Qard 7,221,380 6,051,242 7,221,380 6,051,242
Demand Deposit
Qard 12,954,014 11,742,875 12,968,663 11,752,697
Term Deposit 37,044,548 33,163,038 37,054,991 33,171,405
Special Investment Deposit

Mudharabah – 3,662 – 3,662
General Investment Deposit

Mudharabah 149,833 176,359 149,833 176,359
Term Deposit-i
Tawarruq 35,721,908 31,496,106 35,732,351 31,504,473
Negotiable Islamic Debt Certificates (NIDC) 1,172,807 1,486,911 1,172,807 1,486,911
Others 118,892 120,107 118,892 120,107
Total Deposits 57,338,834 51,077,262 57,363,926 51,095,451
(b) Maturity structure of term deposits are as follows:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Due within six months 22,267,682 18,093,028 22,268,464 18,093,941

More than six months to one year 11,193,457 9,960,654 11,196,267 9,962,675
More than one year to three years 1,252,439 2,336,348 1,259,290 2,341,781
More than three years to five years 2,330,970 2,773,008 2,330,970 2,773,008
37,044,548 33,163,038 37,054,991 33,171,405
285

15. DEPOSITS FROM CUSTOMERS (CONTINUED)

(c) By type of customers
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Domestic non-bank financial institutions 6,059,847 6,901,831 6,084,939 6,920,020

Business enterprises 22,935,511 20,921,604 22,935,511 20,921,604
Government and statutory bodies 16,414,063 13,033,032 16,414,063 13,033,032
Individuals 7,864,062 7,042,432 7,864,062 7,042,431
Domestic banking institutions 976,873 718,962 976,873 718,962
Others 3,088,478 2,459,401 3,088,478 2,459,402
57,338,834 51,077,262 57,363,926 51,095,451
16. INVESTMENT ACCOUNTS OF CUSTOMERS

(a) By type and Shariah contract
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Unrestricted investment accounts

Without maturity:
Mudharabah 6,655,637 5,113,275 6,655,637 5,113,275
– Savings 5,343,189 4,446,643 5,343,189 4,446,643
– Demand 1,312,448 666,632 1,312,448 666,632
With maturity:
Wakalah 3,797,265 7,255,253 3,905,964 7,255,622
10,452,902 12,368,528 10,561,601 12,368,897
Restricted investment accounts (“RA”)

managed by the Bank^
With maturity:
Wakalah 849 11,915 849 11,915
^ Included in RA managed by the Bank is an arrangement between the Bank and Lembaga Tabung Haji where the Bank acts as
an investment agent to manage and administer the RA, with underlying assets amounting to RM849,000 (2020: RM11,915,000).
286
16. INVESTMENT ACCOUNTS OF CUSTOMERS (CONTINUED)

(b) By type of customers
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Individuals 5,745,138 4,840,308 5,745,138 4,840,308

Government and statutory bodies 2,437,046 4,385,196 2,437,046 4,385,196
Business Enterprises 1,267,853 1,130,539 1,267,853 1,130,539
Non-bank financial institutions 835,758 1,861,096 944,457 1,861,465
International Islamic Bank – – – –
Others 167,107 151,389 167,107 151,389
10,452,902 12,368,528 10,561,601 12,368,897
(c) Movement of investment accounts of customers
Restricted
Unrestricted investment accounts investment
accounts
Mudharabah Wakalah Total Wakalah
Group RM’000 RM’000 RM’000 RM’000
As at 1 January 2020 3,211,343 7,029,030 10,240,373 35,062
Funding inflows/outflows:
Net movement 1,891,324 – 1,891,324 –
New placement – 7,231,351 7,231,351 –
Redemption/Principal repayment – (7,216,546) (7,216,546) (23,849)
Income from investment 167,812 339,397 507,209 1,278
Bank’s share of profit:

Profit distributed to Mudharib (157,204) – (157,204) –
Wakalah fees – (127,979) (127,979) (576)
As at 31 December 2020/ 5,113,275 7,255,253 12,368,528 11,915

1 January 2021
Net movement 1,528,718 – 1,528,718 –
New placement – 7,534,543 7,534,543 –
Income from investment 209,529 282,542 492,071 26

Wakalah fees – (136,059) (136,059) (308)
As at 31 December 2021 6,655,637 3,797,265 10,452,902 849
287


(c) Movement of investment accounts of customers (continued)
Restricted
accounts
Bank RM’000 RM’000 RM’000 RM’000
As at 1 January 2020 3,211,343 7,029,030 10,240,373 35,062
Net movement 1,891,324 – 1,891,324 –
New placement – 7,231,720 7,231,720 –
Income from investment 167,812 339,397 507,209 1,278

Wakalah fees – (127,979) (127,979) (576)
As at 31 December 2020/ 5,113,275 7,255,622 12,368,897 11,915

1 January 2021
Net movement 1,528,718 – 1,528,718 –
New placement – 7,745,505 7,745,505 –
Income from investment 209,529 283,058 492,587 26

Wakalah fees – (136,059) (136,059) (308)
As at 31 December 2021 6,655,637 3,905,964 10,561,601 849
288

(c) Movement of investment accounts of customers (continued)
Restricted
accounts
RM’000 RM’000 RM’000 RM’000
Group
Investment portfolio:
2021
House financing 6,655,637 1,898,633 8,554,270 –
Personal financing – 1,898,632 1,898,632 –
Other term financing – – – 849
6,655,637 3,797,265 10,452,902 849
2020
House financing 5,113,275 3,627,627 8,740,902 –
Other term financing – – – 11,915
5,113,275 7,255,253 12,368,528 11,915
Bank
Investment portfolio:
2021
House financing 6,655,637 1,952,982 8,608,619 –
Other term financing – – – 849
6,655,637 3,905,964 10,561,601 849
2020
House financing 5,113,275 3,627,811 8,741,086 –
Other term financing – – – 11,915
5,113,275 7,255,622 12,368,897 11,915
289


(d) By maturity structures, profit sharing ratio and rate of return
Investment account holders
Average Average Bank’s

Total profit rate of wakalah
amount sharing ratio return fee
Group RM’000 (%) (%) (%)
2021
Unrestricted investment accounts:
Less than 3 months
– Mudharabah 6,655,637 2 0.24 –
– Wakalah 1,347,882 – 1.94 1.77
8,003,519
Between 3 to 12 months
– Wakalah 2,431,471 – 2.30 1.40
Between 1 to 2 years
– Wakalah 17,912 – 1.59 2.12
2,449,383
10,452,902
Restricted investment accounts:

Between 2 to 5 years 849 – 7.20 6.79
2020
Less than 3 months
– Mudharabah 5,113,275 2 0.25 –
– Wakalah 2,889,632 – 2.44 1.84
8,002,907
– Wakalah 4,337,062 – 3.03 1.24
– Wakalah 28,559 – 3.23 1.04
4,365,621
12,368,528

Between 2 to 5 years 11,915 – 3.70 2.36
290

(d) By maturity structures, profit sharing ratio and rate of return (continued)
Investment account holders
Average Average Bank’s

Total profit rate of wakalah
amount sharing ratio return fee
Bank RM’000 (%) (%) (%)
2021
Less than 3 months
– Mudharabah 6,655,637 2 0.24 –
– Wakalah 1,456,461 – 1.94 1.77
8,112,098
– Wakalah 2,431,471 – 2.30 1.40
– Wakalah 18,032 – 1.59 2.12
2,449,503
10,561,601

Between 2 to 5 years 849 – 7.20 6.79
2020
Less than 3 months
– Mudharabah 5,113,275 2 0.25 –
– Wakalah 2,889,632 – 2.44 1.84
8,002,907
– Wakalah 4,337,062 – 3.03 1.24
– Wakalah 28,928 – 3.23 1.04
4,365,990
12,368,897

Between 2 to 5 years 11,915 – 3.70 2.36
291

17. RECOURSE OBLIGATIONS ON FINANCING SOLD TO CAGAMAS

Recourse obligations on financing sold to Cagamas represents house financing accounts that are sold to Cagamas
with recourse. Under the agreement, the Bank undertakes to administer the financing on behalf of Cagamas and to
buy back any financing which are regarded as defective based on pre-determined and agreed-upon prudential
criteria with recourse against the Bank. Such financing transactions and the obligation to buy back the financing are
reflected as a liability on the statements of financial position. The financing are not de-recognised and are analysed
in Note 8. The details are as follows:
Nominal value Profit rate

Note RM’000 Issue date Maturity Date (% p.a.)
(a) 1,500,000 25 May 2018 25 May 2023 4.75
(b) 500,000 15 May 2021 15 May 2024 2.95
18. SUBORDINATED SUKUK MURABAHAH
Group and Bank
2021 2020
Note RM’000 RM’000
Issued under the RM1.0 billion Programme
Third tranche (a) 301,962 302,046
Issued under the RM10.0 billion Programme
First tranche (b) 302,286 302,243

Second tranche (c) 403,945 403,904
Third tranche (d) 704,971 704,971
Fourth tranche (e) 301,685 –
1,712,887 1,411,118
2,014,849 1,713,164
Finance cost on Subordinated Sukuk Murabahah 72,575 73,622
292
18. SUBORDINATED SUKUK MURABAHAH (CONTINUED)

The details of the issued subordinated Sukuk are as follows:
Nominal value Profit rate

Note RM’000 Issue date First call date* Maturity Date (% p.a.)#
(a) 300,000 13 November 2017 12 December 2022 12 November 2027 5.08
(b) 300,000 7 November 2018 7 December 2023 7 November 2028 5.15
(c) 400,000 26 March 2020 26 March 2025 26 March 2030 3.75
(d) 700,000 21 October 2020 21 October 2025 21 October 2030 3.60
(e) 300,000 12 November 2021 12 November 2026 12 November 2031 4.10
* Optional redemption date or any periodic payment date thereafter.

#
Accrued and payable semi-annually in arrears.
The Subordinated Sukuk Murabahah qualifies as Tier II capital for the computation of the regulatory capital of the
Bank in accordance with the Capital Adequacy Framework (Capital Components) for Islamic Banks issued by BNM.
19. OTHER LIABILITIES
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Other payables 877,901 357,571 848,589 344,347

Advance payment 575,288 680,508 575,288 680,508
Accruals 117,413 98,784 114,498 97,030
1,570,602 1,136,863 1,538,375 1,121,885
Included in other payables is amount due to trustee amounting to RM10,391,000 (2020: RM4,423,000) attributed to
the creation of unit trust funds.
Other payables are also include funds received by the Bank under various government funding schemes as part of
government support measure in response to COVID-19 pandemic for specific financing purposes amounting to
RM310,967,326 (2020: RM59,522,673) at concession rate.
293

20. ZAKAT AND TAXATION
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Zakat 12,307 11,999 12,227 11,827

Taxation 21,081 19,953 21,029 19,949
33,388 31,952 33,256 31,776
21. SHARE CAPITAL
Number of shares (units) Amount
2020 2019 2021 2020

Group and Bank ’000 ’000 RM’000 RM’000
Issued and fully paid

Ordinary shares
At 1 January 2,600,367 2,509,982 3,306,118 3,012,368
Consolidation of shares (Note 46) (567,460) – – –
Allotment of new ordinary shares 42,966 90,385 139,639 293,750
At 31 December 2,075,873 2,600,367 3,445,757 3,306,118
294
22. RESERVES
Group Bank
2021 2020 2021 2020

Note RM’000 RM’000 RM’000 RM’000
FVOCI reserve (a) (101,288) 188,298 (101,288) 188,298

Translation reserve^ (b) (20,798) (6,024) (20,555) (5,875)
Regulatory reserve (c) – – – –
Merger reserve (d) 111,187 – – –
Total other reserves (10,899) 182,274 (121,843) 182,423
Retained earnings^ 2,965,080 2,797,307 2,965,659 2,791,044
2,954,181 2,979,581 2,843,816 2,973,467
(a) The FVOCI reserve includes the cumulative net change in the fair value of financial assets FVOCI until the
financial asset is derecognised.
(b) The translation reserve comprises all foreign exchange differences arising from the translation of the financial
statements of the offshore banking operations in the Federal Territory of Labuan.
(c) The regulatory reserve represents the Bank’s compliance with BNM’s Guideline on Financial Reporting for Islamic
Banking Institution to maintain, in aggregate, loss allowance for non-credit-impaired exposures and regulatory
reserves of no less than 1% of total credit exposures, net of loss allowance for credit- impaired exposures. No
regulatory reserve recognised in 2021 and 2020.
(d) Merger reserve arising from the Proposed Internal Reorganisation and acquisition of two (2) new BHB ordinary
shares. See Note 46.
23. SOURCES AND USES OF CHARITY FUNDS

Movement of sources and uses of charity funds are as follows:
2021 2020
Group and Bank RM’000 RM’000
Undistributed funds as at the beginning of the financial year 11 3
Shariah non-compliance income:

Funds collected/received during the year 41 60
Uses of funds during the year:

Contribution to Public Benefit (40) (52)
Undistributed funds as at the end of the financial year 12 11
295

24. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS
Group and Bank
2021 2020
RM’000 RM’000
Income derived from investment of:

(i) General investment deposits 8,891 12,404
(ii) Term deposit-i 1,394,791 1,564,207
(iii) Savings and demand deposits 808,972 869,663
(iv) Other deposits 47,418 57,739
2,260,072 2,504,013
(i) Income derived from investment of general investment deposits
Group and Bank
2021 2020
RM’000 RM’000
Finance income and hibah

Financing, advances and others 7,713 10,088
Financial assets:
– fair value through profit and loss 49 85
– fair value through other comprehensive income 604 965
– other financial assets at amortised cost 38 2
Money at call and deposits with financial institutions 202 141
8,606 11,281
Other dealing income

Net (loss)/gain from sale of financial assets at fair value through profit or loss (25) 2
Net gain/(loss) on revaluation of financial assets at fair value through profit or
loss 15 (10)
(10) (8)
Other operating income

Net gain from sale of financial assets at fair value through other comprehensive
income 295 1,131
8,891 12,404
of which,
Financing income earned on impaired financing 102 103
Unwinding of modification loss 28 97
296
24. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS (CONTINUED)

(ii) Income derived from investment of term deposit-i
Group and Bank
2021 2020
RM’000 RM’000

Financing, advances and others 1,171,513 1,216,391
Financial assets:
– fair value through profit and loss 9,140 12,825
– fair value through other comprehensive income 114,824 146,921
– other financial assets at amortised cost 7,940 297
Money at call and deposits with financial institutions 37,770 18,178
1,341,187 1,394,612

Net (loss)/gain from sale of financial assets at fair value through profit or loss (4,481) 355
loss 3,414 (1,532)
(1,067) (1,177)

income 54,669 170,772
Other income
Gain on disposal of leased assets 2 –
1,394,791 1,564,207
of which,
Financing income earned on impaired financing 18,964 15,959
Unwinding of modification loss 10,615 15,684
297


(iii) Income derived from investment of savings and demand deposits
Group and Bank
2021 2020
RM’000 RM’000

Financial assets:
– fair value through profit and loss 5,287 7,134
– other financial assets at amortised cost 4,622 167
Money at call and deposits with financial institutions 21,920 10,029
778,556 777,094

Net (loss)/gain from sale of financial assets at fair value through profit or loss (2,673) 216
loss 1,949 (1,126)
(724) (910)

income 31,139 93,479
Other income
Gain on disposal of leased assets 1 –
808,972 869,663
of which,
Financing income earned on impaired financing 10,970 8,794
298

(iv) Income derived from investment of other deposits
Group and Bank
2021 2020
RM’000 RM’000

Financial assets:
– fair value through profit and loss 314 487
– other financial assets at amortised cost 248 12
Money at call and deposits with financial institutions 1,254 689
45,722 51,946

Net loss from sale of financial assets at fair value through profit or loss (194) (73)
loss 90 (63)
(104) (136)

Net gain from sale of financial assets at fair value through other
comprehensive income 1,800 5,929
47,418 57,739
of which,
Financing income earned on impaired financing 638 626
Unwinding of modification loss 601 464
25. INCOME DERIVED FROM INVESTMENT ACCOUNT FUNDS
Group and Bank
2021 2020
RM’000 RM’000
Finance income
– Mudharabah 209,367 167,693
– Wakalah 282,865 339,200
497,538 513,934
299

26. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000

Financing, advances and others 9,783 6,607 9,783 6,607
Financial assets:
– fair value through other comprehensive income 177,794 190,253 177,794 190,253
Money at call and deposits with financial institutions 131 40 – 3
187,708 196,900 187,577 196,863

Net gain from foreign exchange transactions 32,485 43,478 32,519 43,531
Net derivatives gain 7 31 7 31
Net gain from sale of financial assets at fair value
through profit or loss 26 – – –
Net gain/(loss) on revaluation of financial assets at fair
value through profit or loss 11,029 (3,986) 10,882 (3,982)
43,547 39,523 43,408 39,580

Dividend from financial assets at FVTPL 11,677 13,860 11,326 13,722
Dividend from subsidiary – – 800 500
Dividend from financial assets at FVOCI – 503 – 503
Sale of investment in unit trust – 28 – 28
Rebate on investment in unit trust 2,217 979 2,217 979
13,894 15,370 14,343 15,732
300
26. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS (CONTINUED)
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Fees and commission

Card fees and commission 78,655 74,466 78,655 74,466
Takaful service fees and commission 31,929 31,335 31,929 31,335
Financing fees 19,372 17,680 19,372 17,680
Sales charges on unit trust 13,150 11,856 – –
Unit trust management fees 16,835 16,786 – –
Commission on MEPS 7,854 2,108 7,854 2,108
Ar-Rahnu fees 63 6,815 63 6,815
Mobile banking fees 7,794 7,002 7,794 7,002
Corporate advisory fees 8,885 9,491 8,700 9,491
Deposit and payment service fees 3,819 4,629 3,819 4,629
Processing fees 3,790 9,732 3,648 9,732
Commission on bills payment system 1,815 1,331 1,815 1,331
Commission from wealth management services 188 110 5,706 4,712
Ta'widh Charges 1,555 1,387 1,554 1,387
Others 15,406 10,760 11,717 10,433
211,110 205,488 182,626 181,121
Other income
Rental income 1,631 2,549 2,308 2,931
Net gain on disposal of property and equipment 603 3 602 3
Other income 257 226 86 83
2,491 2,778 2,996 3,017
458,750 460,059 430,950 436,313
27. NET ALLOWANCE FOR IMPAIRMENT ON FINANCING AND ADVANCES
Group and Bank
2021 2020
RM’000 RM’000
Net allowance for impairment on financing, advances and others:

– Stage 1 (159,674) 228,646
– Stage 2 151,178 1,661
– Stage 3 274,433 57,880
Bad debts and financing recovered (75,199) (79,516)
190,738 208,671
301

28. INCOME ATTRIBUTABLE TO DEPOSITORS
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Deposits from customers:

– Mudharabah fund 2,109 4,758 2,109 4,758
– Non-Mudharabah fund 736,559 930,187 736,754 930,408
Deposits and placements of banks and other financial

institutions:
– Non-Mudharabah fund 36 421 36 421
Recourse obligation on financing sold to Cagamas 79,984 71,113 79,984 71,113
818,688 1,006,479 818,883 1,006,700
29. INCOME ATTRIBUTABLE TO INVESTMENT ACCOUNT HOLDERS
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000

– Mudharabah 13,644 10,609 13,644 10,609
– Wakalah 146,483 211,417 146,999 211,417
160,127 222,026 160,643 222,026
30. PERSONNEL EXPENSES
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Salaries and wages 443,849 387,121 429,717 378,437

Allowances and bonuses 120,910 108,688 118,317 106,875
Employees’ Provident Fund 80,482 75,992 78,019 74,534
Directors and Shariah Supervisory Council Members’
remuneration 8,150 7,040 6,473 6,012
Medical benefits 27,188 29,835 26,705 28,795
Staff sales commission 22,391 25,543 22,391 25,543
Others 20,860 29,148 20,162 29,165
723,830 663,367 701,784 649,361
302
31. OTHER OVERHEAD EXPENSES
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Promotion
Credit and debit card expenses 48,642 40,574 48,642 40,574
Advertisement and publicity 20,290 12,469 16,061 12,363
Others 16,680 14,824 7,314 5,189
85,612 67,867 72,017 58,126
Establishment
Depreciation of property and equipment 59,225 56,546 58,803 56,341
Depreciation of right-of-use assets 18,197 18,348 18,042 18,317
Office rental 29,215 29,136 29,186 29,499
Information technology expenses 72,490 56,133 72,490 56,133
Security services 8,877 9,442 8,877 9,442
Utilities 11,170 12,771 11,036 12,698
Office maintenance 10,216 10,847 9,973 10,635
Takaful 7,261 5,645 6,379 5,641
Rental of equipment 5,950 6,056 5,826 5,978
Others 320 320 320 320
222,921 205,244 220,932 205,004
General expenses
Outsourcing fees
– Management of self-service terminal 8,564 13,716 8,564 13,716
– Credit recovery – – 7,318 2,345
– Others 4,109 1,960 4,109 1,960
Office supplies 8,333 9,911 8,239 9,788
Licenses 12,551 9,957 12,551 9,957
Bank and service charges 8,240 7,418 8,207 7,389
General expenses 30,814 22,547 30,814 22,547
Security services for cash in transit 4,915 5,735 4,915 5,735
Postage and delivery charges 11,678 9,829 11,545 9,760
Management fees – – 6,839 7,686
Subscription fees 12,633 5,486 12,630 5,483
SMS service charges 19,647 14,274 19,647 14,274
Professional fees 15,267 11,199 13,396 10,956
Mobile banking expenses 1,923 2,011 1,923 2,011
Auditors’ remuneration
– Statutory audit 1,550 1,267 1,324 1,188
– Regulatory related 263 150 263 150
– Non-audit 345 312 345 312
Processing charges 1,030 1,201 1,030 1,201
Property and equipment written-off 619 925 619 925
Others 10,908 20,076 1,835 11,989
153,389 137,974 156,113 139,372
461,922 411,085 449,062 402,502
303

32.
CHIEF EXECUTIVE OFFICER, DIRECTORS AND SHARIAH SUPERVISORY COUNCIL MEMBERS’
REMUNERATION
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Chief Executive Officer:

Salaries and other remuneration, including meeting
allowances 2,814 2,663 2,814 2,663
Benefits-in-kind 38 34 38 34
2,852 2,697 2,852 2,697
Non-Executive Directors:
Fees 1,466 1,033 1,396 997
Other emoluments 1,627 1,668 1,480 1,649
Benefits-in-kind 621 259 621 259
3,714 2,960 3,497 2,905
Directors of subsidiaries
Executive Director:
Salaries and other remuneration, including meeting
allowances 946 810 – –
Fees 221 72 – –
Other emoluments 240 68 – –
461 140 – –
Total 7,973 6,607 6,349 5,602
Members of Shariah Supervisory Council (SSC)

– SSC of the Bank 797 712 783 703
– SSC of a subsidiary 39 14 – –
Total 836 726 783 703
Grand total (excluding benefits-in-kind) (Note 30) 8,150 7,040 6,473 6,012
304
32.
CHIEF EXECUTIVE OFFICER, DIRECTORS AND SHARIAH SUPERVISORY COUNCIL MEMBER’S
REMUNERATION (CONTINUED)
The total remuneration (including benefits-in-kind) of the Chief Executive Officer, Directors of the Bank is as follows:
Remuneration received
Remuneration received from the Bank from subsidiaries
Bank Group
Salary and Other Benefits-
Bonus Fees Emoluments in-kind Total Fees Others Total
31 December 2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Mohd Muazzam Mohamed 2,283 – 531 38 2,852 – – 2,852
Tan Sri Dr. Ismail Hj. Bakar – 144 195 21 360 – – 360
Azizan Ahmad – 198 200 75 473 – – 473
Mohamed Ridza
Mohamed Abdulla – 108 140 50 298 24 17 339
Datuk Nik Mohd
Hasyudeen Yusoff – 130 136 25 291 4 53 348
Dato’ Sri Khazali Ahmad – 114 105 65 284 – – 284
Mohd Yuzaidi Mohd Yusoff – 184 190 89 463 – – 463
Mashitah Haji Osman – 156 168 35 359 – – 359
Dato’ Sri Amrin Awaluddin
(appointed on
10 September 2021) 24 15 – 39 – – 39
Mohd Asri Awang
(appointed on
1 October 2021) 36 27 25 88 – – 88
Zahari @ Mohd Zin Idris
(retired on
20 September 2021) – 162 180 136 478 42 47 567
Noraini Che Dan
(deceased on
26 August 2021) – 140 124 100 364 – 30 394
– 1,396 1,480 621 3,497 70 147 3,714
2,283 1,396 2,011 659 6,349 70 147 6,566
305

32.
The total remuneration (including benefits-in-kind) of the Chief Executive Officer, Directors of the Bank is as follows:
(continued)
Remuneration received
Remuneration received from the Bank from subsidiaries
Bank Group
Salary and Other Benefits-
Bonus Fees Emoluments in-kind Total Fees Others Total
31 December 2020 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Mohd Muazzam Mohamed 2,183 – 480 34 2,697 – – 2,697
Tan Sri Dr. Ismail Hj. Bakar – 20 60 50 130 – – 130
Datuk Zamani Abdul
Ghani – 20 144 46 210 – – 210
Dato’ Sri Khazali Ahmad – 78 148 28 254 – – 254
Zahari @ Mohd Zin Idris – 222 266 15 503 12 8 523
Mohamed Ridza
Mohamed Abdulla – 119 158 25 302 24 11 337
Datuk Nik Mohd
Hasyudeen Yusoff – 36 119 – 155 – – 155
Noraini Che Dan – 154 260 25 439 – – 439
Azizan Ahmad – 170 235 50 455 – – 455
Mohd Yuzaidi Mohd Yusoff – 148 223 20 391 – – 391
Mashitah Haji Osman – 30 36 – 66 – – 66
– 997 1,649 259 2,905 36 19 2,960
2,183 997 2,129 293 5,602 36 19 5,657
306
32.
The total remuneration of the members of the Shariah Supervisory Council of the Bank is as follows:
Remuneration
received
Remuneration received from
from the Bank subsidiary
Bank Group
Other
Fees Emoluments Total Fees Total
RM’000 RM’000 RM’000 RM’000 RM’000
31 December 2021
Professor Dato’ Dr. Ahmad Hidayat Buang 72 108 180 – 180
Ustazah Dr. Yasmin Hanani Mohd Safian 66 71 137 – 137
Asmadi Mohamed Naim 66 72 138 – 138
Shamsiah Mohamad 66 36 102 6 108
Datu Haji Kipli Haji Yassin (appointed on
1 January 2021) 66 18 84 – 84
Ustaz Dr. Ahmad Shahbari @ Sobri Salamon
(retired on 31 March 2021) 17 64 81 8 89
Assistant Professor Dr. Uzaimah Ibrahim
(retired on 31 March 2021) 17 44 61 – 61
370 413 783 14 797
31 December 2020
Professor Dato’ Dr. Ahmad Hidayat Buang 72 95 167 – 167
Ustaz Dr. Ahmad Shahbari @ Sobri Salamon 66 32 98 6 104
Assistant Professor Dr. Uzaimah Ibrahim 66 36 102 – 102
Ustazah Dr. Yasmin Hanani Mohd Safian 66 69 135 – 135
Asmadi Mohamed Naim 61 35 96 – 96
Shamsiah Mohamad 61 14 75 3 78
Sahibus Samahah Dato' Dr. Haji Anhar
Haji Opir – 30 30 – 30
392 311 703 9 712
307

33. KEY MANAGEMENT PERSONNEL

Key management personnel are defined as those persons having authority and responsibility for planning, directing
and controlling the activities of the Group either directly or indirectly. The key management personnel include all the
Directors of the Group, and certain senior management members of the Group.
The compensation for key management personnel other than the Directors’ remuneration is as follows:
Group and Bank
2021 2020
RM’000 RM’000
Other key management personnel:

Short-term employee benefits 27,787 28,047
Number of employees categorised as key management personnel as at 31 December 2021 was 29 (2020: 30).
34. FINANCE COST
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Finance cost:
Subordinated Sukuk Murabahah 72,575 73,622 72,575 73,622
Profit expense on lease 17,312 17,836 17,303 17,835
89,887 91,458 89,878 91,457
35. TAX EXPENSE
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Malaysian income tax:

Current year 183,112 67,027 182,802 66,860
Under provision/(over provision) in prior year 145,996 (27,738) 146,001 (27,757)
329,108 39,289 328,803 39,103
Deferred tax expense relating to origination and reversal

of temporary differences arising from:
Current year (23,614) 110,077 (23,614) 110,077
(Over provision)/under provision in prior year (147,853) 2,123 (147,933) 2,128
(171,467) 112,200 (171,547) 112,205
157,641 151,489 157,256 151,308
308
35. TAX EXPENSE (CONTINUED)

A reconciliation of effective tax expense for the Group and the Bank are as follows:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Profit before tax 704,221 728,213 710,625 726,836
Income tax calculated using Malaysian tax rate of 24% 169,013 174,771 170,550 174,441
Income not subject to tax (4,806) (1,920) (4,713) (1,634)
Non-deductible expenses 5,182 6,844 3,242 6,721
Impact of Cukai Makmur (7,011) – (7,011) –
Zakat (2,880) (2,591) (2,880) (2,591)
Overprovision in prior years (1,857) (25,615) (1,932) (25,629)
157,641 151,489 157,256 151,308
36. EARNINGS PER SHARE

Basic earnings per share are calculated based on the net profit attributable to equity holders of the Group of
RM534,305,000 (2020: RM564,954,000) and the weighted average number of ordinary shares outstanding during the
year of 2,443,188,000 (2020: 2,546,005,000).
The Group has no dilution in its earnings per ordinary shares in the current and previous financial year as there are
no dilutive potential ordinary shares.
37. DIVIDENDS
Dividends paid by the Bank:
Total
Sen amount
per share RM’000 Date of payment
2021
Final 2020 5.37 139,639 4 June 2021
Interim 2021 10.93 226,893 20 January 2022
366,532
2020
Final 2019 6.05 151,854 29 June 2020
Interim 2020 5.55 141,897 18 September 2020
293,751
309

37. DIVIDENDS (CONTINUED)

From the Final 2020 dividend amount paid wholly in cash of RM139.639 million, RM139.639 million was reinvested to
subscribe for 42,966,054 new ordinary shares at RM3.25 each via the Dividend Reinvestment Plan.
The dividend was reinvested by former holding company (prior to the Group reorganisation), BIMB Holdings Berhad
to strengthen the Bank’s capital position to fund the business growth of the Bank.
During the financial year, the following dividend was declared and recognised in the financial position.
Total
Sen amount
per share RM’000
Interim 2021 ordinary dividend 10.93 226,893
38. OPERATING SEGMENTS

The Group’s reportable segments, as described below, can be classified into four segments. Each segment offers
different products and services. The following summary describes the operations in each of the segments:
•• Consumer Banking Includes financing, deposits and other transactions and balances with
retail customers
•• Corporate and Commercial Banking Includes corporate finance activities, financing, deposits and other
transactions and balances with corporate customers, commercial
customers and small & medium enterprises
•• Treasury Undertakes funding activities through borrowings and investing in liquid

assets such as short-term placements and corporate and government
debt securities
•• Shareholders unit Operates shareholders’ funds
Information regarding the results of each reportable segment is included below. Performance is measured based on
segment profit before allocation of overheads and income tax.
310
38. OPERATING SEGMENTS (CONTINUED)
Corporate
and
Consumer Commercial Shareholders Group
Banking Banking Treasury unit Elimination Total
2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Total Revenue (a) 1,929,505 609,975 582,957 67,426 (22,106) 3,167,757
Net fund based income (b) 1,079,038 382,804 111,097 258,653 – 1,831,592
Non-fund based income (c) 149,087 32,791 130,283 66,584 (21,395) 357,350
Net income 1,228,125 415,595 241,380 325,237 (21,395) 2,188,942

Net allowance for
impairment on financial
assets 37,290 (228,028) (6,650) (756) – (198,144)
Profit before overheads,

zakat and tax 1,265,415 187,567 234,730 324,481 (21,395) 1,990,798
Operating expenses (1,286,577)
Profit before zakat and
tax 704,221
Segment assets 44,032,459 14,121,310 19,983,824 385,141 (274,839) 78,247,895

Unallocated assets 1,908,319
Total assets 80,156,214
(a) Included in total revenue are income derived from investment of depositors’ funds, investment account funds,
investment of shareholders’ funds, loss on modification of financial assets, and wakalah fees from restricted
investment accounts.
(b) Net fund based income is derived after deducting the income attributable to depositors and income attributable
to investment account holders.
(c) Included in non-fund based income are fee and commission income that amounted to RM211,418,000, investment
income of RM99,270,000 and other non-fund based income that amounted to RM46,662,000.
311

38. OPERATING SEGMENTS (CONTINUED)
Corporate
and
Consumer Commercial Shareholders Group
Banking Banking Treasury unit Elimination Total
2020 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Total Revenue 1,854,908 652,036 784,963 66,123 (15,828) 3,342,202
Net fund based income 941,306 351,755 146,795 141,026 – 1,580,882

Non-fund based income 141,779 38,377 309,411 58,855 (15,607) 532,815
Net income 1,083,085 390,132 456,206 199,881 (15,607) 2,113,697

Net allowance for
impairment on financial
assets (125,989) (80,182) 257 – – (205,914)
Profit before overheads,

zakat and tax 957,096 309,950 456,463 199,881 (15,607) 1,907,783
Operating expenses (1,179,570)
Profit before zakat and
tax 728,213
Segment assets 40,874,237 13,796,398 18,286,566 54,179 (35,164) 72,976,216

Unallocated assets 1,660,806
Total assets 74,637,022
(a) Included in total revenue are income derived from investment of depositors’ funds, investment account funds,
investment of shareholders’ funds, loss on modification of financial assets, and wakalah fees from restricted
investment accounts.
(b) Net fund based income is derived after deducting the income attributable to depositors and income attributable
to investment account holders.
(c) Included in non-fund based income are fee and commission income that amounted to RM211,418,000, investment
income of RM99,270,000 and other non-fund based income that amounted to RM46,662,000.
312
39. FINANCIAL RISK MANAGEMENT

Overview
The Group’s and the Bank’s business activities involve the use of financial instruments which expose the Group and
the Bank to various financial risks, namely credit risk, market risk and liquidity risk.
The Group’s and the Bank’s financial risk management is guided by the Group’s Risk Appetite Statement and Risk
Management Policies/Guidelines and subject to the oversight by the Board of Directors (“Board”) via the Board Risk
Committee (“BRC”).
The BRC is assisted by the specific risk management committees namely the Management Risk Control Committee
(“MRCC”) and the Asset & Liability Management Committee (“ALCO”).
(a) Financial instruments by categories

The table in subsequent pages provides an analysis of financial instruments categorised as follows:
•• Fair value through profit or loss (“FVTPL”)

•• Financial assets at fair value through other comprehensive income (“FVOCI”)
•• Other financial assets at amortised cost (“AC”)
•• Financial liabilities measured at amortised cost (“FL”)
Carrying
Group amount FVTPL FVOCI AC
31 December 2021 RM’000 RM’000 RM’000 RM’000
Financial assets
Cash and short-term funds and deposits and
placements with financial institutions 5,222,848 – – 5,222,848
Financial assets at FVTPL 1,582,494 1,582,494 – –
Derivative financial assets 26,037 26,037 – –
Financial assets at FVOCI 12,604,204 – 12,604,204 –
Financial assets at AC 1,348,844 – – 1,348,844
Financing, advances and others 58,153,769 – – 58,153,769
Other financial assets at AC* 294,508 – – 294,508
Statutory deposits with Bank Negara Malaysia 264,050 – – 264,050
79,496,754 1,608,531 12,604,204 65,284,019
Deposits from customers 57,338,834 – – 57,338,834
Investment accounts of customers 10,452,902 – – 10,452,902
Derivative financial liabilities 20,421 20,421 – –
Bills and acceptance payable 20,112 – – 20,112
Recourse obligations on financing sold to
Cagamas 2,001,720 – – 2,001,720
Subordinated Sukuk Murabahah 2,014,849 – – 2,014,849
Other liabilities 1,570,602 – – 1,570,602
Lease liabilities 303,448 – – 303,448
73,722,888 20,421 – 73,702,467
* Excludes prepayment
313

39. FINANCIAL RISK MANAGEMENT (CONTINUED)

(a) Financial instruments by categories (continued)
Carrying
Group amount FVTPL FVOCI AC
Financial assets
74,073,227 1,242,865 12,557,991 60,272,371
Cagamas 1,501,187 – – 1,501,187
68,244,926 105,872 – 68,139,054
314

Carrying
Bank amount FVTPL FVOCI AC
Financial assets
Financial assets at AC 1,348,844 – – 1,348,844
79,392,088 1,576,737 12,605,067 65,210,284
Cagamas 2,001,720 – – 2,001,720
73,823,988 20,421 – 73,803,567
315


Carrying
Bank amount FVTPL FVOCI AC
Financial assets
Financial assets at FVOCI 12,558,729 – 12,558,729
74,057,215 1,237,105 12,558,729 60,261,381
Cagamas 1,501,187 – – 1,501,187
68,248,506 105,872 – 68,142,634
(b) Credit risk

Overview
Credit risk is the risk of a customer or counterparty failing to perform its obligations. It arises from all transactions
that could lead to actual, contingent or potential claims against any party, customer or obligor. The types of
credit risks that the Group and the Bank considers to be material include: Default Risk, Counterparty Risk, Credit
Concentration Risk, Residual/Credit Mitigation Risk, and Migration Risk.
316

(b) Credit risk (continued)
Credit risk governance
The management of credit risk is principally carried out by using sets of policies and guidelines approved by the
MRCC and/or BRC, guided by the Board of Directors’ approved Risk Appetite Statement.
The Group and the Bank have instituted two (2) levels of Financing Committees, which assess and approve
credits at their specified authority levels.
The MRCC is responsible under the authority delegated by the BRC for managing credit risk at strategic level.
The MRCC reviews the Group’s and the Bank’s credit risk policies and guidelines, aligns credit risk management
with business strategies and planning, reviews credit profile of the credit portfolios and recommends necessary
actions to ensure that the credit risk remains within established risk tolerance levels.
The Group’s and the Bank’s credit risk management governance includes the establishment of detailed credit
risk policies, guidelines and procedures which document the Group’s and the Bank’s financing standards,
discretionary powers for financing approval, credit risk ratings methodologies and models, acceptable collaterals
and valuation, and the review, rehabilitation and restructuring of problematic and delinquent financing.
Management of credit risk
The management of credit risk is being performed by Credit Management Division (“CMD”) and Risk Management
Division (“RMD”), and two other units outside of the CMD and RMD domain, namely, Credit Administration
Department and Recovery & Rehabilitation Division. The combined objectives are, amongst others:
•• To build a high quality credit portfolio in line with the Group’s and the Bank’s overall strategy and risk
appetite;
•• To ensure that the Group and the Bank is compensated for the risk taken, balancing/optimising the risk/return
relationship;
•• To develop an increasing ability to recognise, measure and avoid or mitigate potential credit risk problem
areas; and
•• To conform with statutory, regulatory and internal credit requirements.
The Group and the Bank monitors its credit exposures either on a portfolio or individual basis through annual
reviews. Credit risk is proactively monitored through a set of early warning signals that could trigger immediate
reviews of (certain parts of) the portfolio. The affected portfolio or financing is placed on a watchlist to enforce
close monitoring and prevent financing from turning impaired and to increase chances of full recovery.
A detailed limit structure is in place to ensure that risks taken are within the risk appetite as set by the Board
and to avoid credit risk concentration on a single customer, sector, product, Shariah contract, etc.
Credit risk arising from dealing and investing activities are managed by the establishment of limits which include
counterparty limits and permissible acquisition of private debt securities, subject to a specified minimum rating
threshold. Furthermore, the dealing and investing activities are monitored by an independent middle office unit.
317


Maximum exposure to credit risk
The following table presents the Group’s and Bank’s maximum exposure to credit risk of on-balance sheet and
off-balance sheet financial instruments, without taking into account any collateral held or other credit
enhancements. For on-balance sheet assets, the exposure to credit risk equals their carrying amount. For
financial guarantee contracts, the maximum exposure to credit risk is the maximum amount that the Group and
the Bank would have to pay if the obligations of the instruments issued are called upon. For credit commitments,
the maximum exposure to credit risk is the full amount of the undrawn credit facilities granted to customers.
Group
2021 2020
Cash and short-term funds and deposits and placements with

financial institutions 5,222,848 5,216,737
Financial assets at FVTPL* 1,287,099 942,710
Derivative financial assets (a) 26,037 61,665
Financial assets at FVOCI^ 12,526,670 12,494,040
Financial assets at AC 1,348,844 –
Financing, advances and others (b) 58,153,769 54,670,635
Other financial assets at AC@ 294,508 192,574
Sub-total 78,859,775 73,578,361
Credit related obligation:

Financial guarantee contracts (c) 1,822,909 1,941,791
Financing commitments # (d) 9,357,082 9,615,227
Sub-total 11,179,991 11,557,018
Total credit exposures 90,039,766 85,135,379
* Excludes unit trust

^ Excludes equity instruments
@
Excludes prepayment
#
Excludes derivative financial instruments
318

Maximum exposure to credit risk (continued)
Bank
2021 2020
Cash and short-term funds and deposits and placements with

financial institutions 5,204,364 5,216,280
Financial assets at FVTPL* 1,287,089 942,710
Derivative financial assets (a) 26,037 61,665
Financial assets at FVOCI^ 12,526,670 12,494,040
Financial assets at AC 1,348,844 –
Financing, advances and others (b) 58,153,769 54,670,635
Other financial assets at AC@ 239,257 182,041
Sub-total 78,786,030 73,567,371
Credit related obligation:

Financial guarantee contracts (c) 1,822,909 1,941,791
Financing commitments # (d) 9,357,082 9,615,227
Sub-total 11,179,991 11,557,018
Total credit exposures 89,966,021 85,124,389
* Excludes unit trust

^ Excludes equity instruments
@
Excludes prepayment
#
Excludes derivative financial instruments
(a) Derivative financial assets
In mitigating the counterparty credit risks from foreign exchange and derivatives transactions, the Group
and the Bank enter into master agreements that provide for closeout netting with counterparties, whenever
possible. A master agreement that governs all transactions between two parties, creates the greater legal
certainty that the netting of outstanding obligations can be enforced upon termination of outstanding
transactions if an event of default occurs.
(b) Financing, advances and others
Business and retail

Financing, advances and others will have levels of collateralisation depending on the nature of the product.
The general creditworthiness of a corporate and commercial customer tends to be the most relevant
indicator of credit quality of a financing extended to it.
The Group and the Bank manage its exposures to these customers by completing a credit evaluation to
assess the customer’s character, industry, business model and capacity to meet their commitments in a
timely manner. The Group and the Bank may take collateral in the form of a first charge over real estate,
floating charges over all corporate assets and other liens and guarantees.
319


(b) Financing, advances and others (continued)
The Group and the Bank routinely update the valuation of collateral held against all financing as it adopts
an annual internal valuation policy and a 2 years external valuation policy.
At 31 December 2021, the gross exposure of credit-impaired financing and advances to business customers
amounted to RM395,179,000 (2020: RM182,271,000) and the forced sales value of collateral held against those
financing and advances amounted to RM278,957,000 (2020: RM298,895,000).
House financing
The following table presents credit exposures from financing and advances that are credit impaired by
ranges of financing-to-value (“FTV”) ratio. FTV is calculated as the ratio of the gross amount of the financing,
or the amount committed for financing commitments - to the value of the collateral.
Group and Bank
2021 2020
FTV ratio RM’000 RM’000
Credit-impaired financing
Less than 51% 36,160 35,725
51-70% 8,303 6,842
More than 70% 88,708 91,517
Total 133,171 134,084
Vulnerable sectors
The Group and the Bank have also identified certain vulnerable sectors that are mostly impacted by the
pandemic, of which tighter assessment was made on the customers’ credit rating, credit risk, credit cost and
available financing.
Group and Bank

On balance sheet (net of
impairment)
2021 2020
Financing, advances and others RM’000 RM’000
Tourism, airlines, oil and gas, transportation, restaurant, hotel and others 10,667,494 10,189,233
% over total maximum exposure 18% 14%
320

Relief and support measures

As mentioned in Note 2.1(a)(i), the Government has introduced certain measures to assist customers
experiencing temporary financial constraints due to the pandemic. The table below summarised total
payment moratoriums and repayment assistances granted to the affected customers;
Matured and
repaying as
per revised Missed Total
schedules Extended payments granted
2021 RM’000 RM’000 RM’000 RM’000
Consumer 13,709,948 19,987,014 267,364 33,964,326

Mortgages 8,939,906 11,242,682 166,485 20,349,073
Hire purchase 50,421 446,387 12,971 509,779
Personal financing 4,719,621 8,297,945 87,908 13,105,474
Commercial 288,137 1,972,308 51,084 2,311,529

of which SME 207,125 1,065,715 34,177 1,307,017
Corporate 1,022,145 964,132 – 1,986,277
15,020,230 22,923,454 318,448 38,262,132
As a percentage of total:
Consumer 40.4% 58.8% 0.8% 100.0%
Mortgages 43.9% 55.2% 0.8% 100.0%
Hire purchase 9.9% 87.6% 2.5% 100.0%
Personal financing 36.0% 63.3% 0.7% 100.0%
Commercial 12.5% 85.3% 2.2% 100.0%

of which SME 15.9% 81.5% 2.6% 100.0%
Corporate 51.5% 48.5% – 100.0%
39.3% 59.9% 0.8% 100.0%
321


Relief and support measures (continued)
Matured and
repaying as
per revised Missed Total
schedules Extended payments granted
2020 RM’000 RM’000 RM’000 RM’000
Consumer 30,346,281 2,869,399 313,404 33,529,084

Mortgages 17,388,738 1,801,123 151,010 19,340,871
Hire purchase 1,247,353 131,952 23,764 1,403,069
Personal financing 11,710,190 936,324 138,630 12,785,144
Commercial 756,016 1,165,548 20,928 1,942,492

of which SME 657,724 468,414 20,928 1,147,066
Corporate 1,852,238 556,124 – 2,408,362
32,954,535 4,591,071 334,332 37,879,938
As a percentage of total:
Consumer 90.5% 8.6% 0.9% 100.0%
Mortgages 89.9% 9.3% 0.8% 100.0%
Hire purchase 88.9% 9.4% 1.7% 100.0%
Personal financing 91.6% 7.3% 1.1% 100.0%
Commercial 38.9% 60.0% 1.1% 100.0%

of which SME 57.3% 40.9% 1.8% 100.0%
Corporate 76.9% 23.1% – 100.0%
87.0% 12.1% 0.9% 100.0%
(c) Financial guarantee contracts (“FGC”)
FGCs mainly comprise guarantees to customers, standby or documentary letters of credit and performance
related contingencies. The Group and the Bank will typically have recourse to specific assets pledged as
collateral in the event of a default by a party for which the Group and the Bank have guaranteed its
obligations to a third party.
(d) Financing commitments
Financing commitments mainly comprise irrevocable financing commitments to finance a customer

provided there is no breach of any condition established in the contract. If such financing commitments are
drawn down by the customer there will typically be specific collateral requirements that will need to be
satisfied by the customer in order to access to credit facilities.
322

(i) Concentration of credit risk for Group and Bank
Cash and
short-term
funds and
deposits and
placements Financial Derivative Financial Financial Financing, On-Balance Financial
with financial assets at financial assets at assets at advances Other Sheet guarantee Financing
Group institutions FVTPL assets FVOCI AC and others assets Total contracts commitments*
2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Primary agriculture – – – 122,923 – 946,230 – 1,069,153 1,765 96,540

Mining and quarrying – – – – – 64,750 – 64,750 10,198 93,940
Manufacturing (including
agro-based) – – 4 47,066 – 908,794 – 955,864 110,587 564,756
Electricity, gas and water – 10,215 – 635,629 104,270 2,014,732 – 2,764,846 71,617 142,967
Wholesale & retail trade,
and hotels &
restaurants – – 11,505 – – 902,904 – 914,409 155,005 235,621
Construction – – 16 1,062,079 158,591 2,597,014 – 3,817,700 527,396 1,476,088
Transport, storage and
communications – – – 1,233,098 46,220 689,359 – 1,968,677 85,578 337,313
Finance, insurance, real
estate and business
activities 5,222,848 1,276,884 1,773 6,407,069 72,508 4,644,988 293,393 17,919,463 180,041 1,511,015
Education, health and
others – – 7,497 838,381 60,640 1,351,617 – 2,258,135 454,975 1,921,771
Household sectors – – – – – 44,033,381 – 44,033,381 – 2,273,312
Other sectors – – 5,242 2,180,425 906,615 – 1,115 3,093,397 225,747 703,759
5,222,848 1,287,099 26,037 12,526,670 1,348,844 58,153,769 294,508 78,859,775 1,822,909 9,357,082
* Financing commitments excluding derivative financial assets
323


(i) Concentration of credit risk for Group and Bank (continued)
Cash and
short-term
funds and
deposits and
placements Financial Derivative Financial Financing, On-Balance Financial
with financial assets at financial assets at advances Other Sheet guarantee Financing
Group institutions FVTPL assets FVOCI and others assets Total contracts commitments*
Primary agriculture – – – 77,621 1,025,569 – 1,103,190 2,082 186,286

Mining and quarrying – – – – 64,894 – 64,894 16,014 80,830
agro-based) – – 9 53,677 962,181 – 1,015,867 143,149 579,419
Electricity, gas and water – 16,074 – 1,277,590 1,966,976 – 3,260,640 64,469 148,676
Wholesale & retail trade, and
hotels & restaurants – – 37,921 – 897,828 – 935,749 128,968 401,704
Construction – – 393 906,545 2,632,171 – 3,539,109 515,506 1,679,249
communications – – – 1,384,140 642,844 – 2,026,984 91,714 106,633
Finance, insurance, real estate
and business activities 5,216,737 926,636 8,938 5,758,025 4,451,540 187,617 16,549,493 134,802 1,772,325
Education, health and others – – 746 870,928 1,152,752 – 2,024,426 515,978 1,837,248
Household sectors – – – – 40,873,880 – 40,873,880 – 946,401
Other sectors – – 13,658 2,165,514 – 4,957 2,184,129 329,109 1,876,456
5,216,737 942,710 61,665 12,494,040 54,670,635 192,574 73,578,361 1,941,791 9,615,227
324

Cash and
short-term
funds and
deposits and Other
placements Financial Derivative Financial Financial Financing, financial On-Balance Financial
with financial assets at financial assets at assets at advances assets Sheet guarantee Financing
Bank institutions FVTPL assets FVOCI AC and others at AC Total contracts commitments*
2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Primary agriculture – – – 122,923 – 946,230 – 1,069,153 1,765 96,540

Mining and quarrying – – – – – 64,750 – 64,750 10,198 93,940
agro-based) – – 4 47,066 – 908,794 – 955,864 110,587 564,756
Electricity, gas and water – 10,215 – 635,629 104,270 2,014,732 – 2,764,846 71,617 142,967
Wholesale & retail trade,
and hotels &
restaurants – – 11,505 – – 902,904 – 914,409 155,005 235,621
Construction – – 16 1,062,079 158,591 2,597,014 – 3,817,700 527,396 1,476,088
communications – – – 1,233,098 46,220 689,359 – 1,968,677 85,578 337,313
Finance, insurance, real
estate and business
activities 5,204,364 1,276,874 1,773 6,407,069 72,508 4,644,988 238,316 17,845,892 180,041 1,511,015
Education, health and
others – – 7,497 838,381 60,640 1,351,617 – 2,258,135 454,975 1,921,771
Household sectors – – – – – 44,033,381 – 44,033,381 – 2,273,312
Other sectors – – 5,242 2,180,425 906,615 – 941 3,093,223 225,747 703,759
5,204,364 1,287,089 26,037 12,526,670 1,348,844 58,153,769 239,257 78,786,030 1,822,909 9,357,082
325


Cash and
short-term
funds and
deposits and
placements Financial Derivative Financial Financing, On-Balance Financial
with financial assets at financial assets at advances Other Sheet guarantee Financing
Bank institutions FVTPL assets FVOCI and others assets Total contracts commitments*
Primary agriculture - - - 77,621 1,025,569 - 1,103,190 2,082 186,286

Mining and quarrying - - - - 64,894 - 64,894 16,014 80,830
agro-based) - - 9 53,677 962,181 - 1,015,867 143,149 579,419
Electricity, gas and water - 16,074 - 1,277,590 1,966,976 - 3,260,640 64,469 148,676
Wholesale & retail trade, and
hotels & restaurants - - 37,921 - 897,828 - 935,749 128,968 401,704
Construction - - 393 906,545 2,632,171 - 3,539,109 515,506 1,679,249
communications - - - 1,384,140 642,844 - 2,026,984 91,714 106,633
Finance, insurance, real estate
and business activities 5,216,280 926,636 8,938 5,758,025 4,451,540 177,207 16,538,626 134,802 1,772,325
Education, health and others - - 746 870,928 1,152,752 - 2,024,426 515,978 1,837,248
Household sectors - - - - 40,873,880 - 40,873,880 - 946,401
Other sectors - - 13,658 2,165,514 - 4,834 2,184,006 329,109 1,876,456
5,216,280 942,710 61,665 12,494,040 54,670,635 182,041 73,567,371 1,941,791 9,615,227
(ii) Collateral
The main types of collateral obtained by the Bank to mitigate the credit risk are as follows:
•• For residential mortgages – charges over residential properties

•• For commercial property financing – charges over the properties being financed
•• For vehicle financing under Ijarah Thumma Al-Bai – ownership claims over the vehicles financed
•• For other financing and advances – charges over business assets such as premises, inventories, trade
receivables and/or cash deposits
As at 31 December 2021 and 31 December 2020, there were no assets repossessed by the Bank as a result
of taking possession of collateral held as security, or by calling upon other credit enhancements.
326

(iii) Credit quality of financing, advances and others
The credit quality of the Bank’s financing, advances and others are summarised as follows:
Group and Bank Stage 1 Stage 2 Stage 3 Total

2021 RM’000 RM’000 RM’000 RM’000

Neither past due nor impaired (“NPDNI”):
– Excellent 53,198,963 774,614 – 53,973,577
– Satisfactory 3,178,361 778,566 – 3,956,927
– Fair 166,537 137,945 – 304,482
56,543,861 1,691,125 – 58,234,986
Past due but not impaired (“PDNI”) – 414,366 – 414,366

Impaired – – 568,383 568,383
Gross carrying amount 56,543,861 2,105,491 568,383 59,217,735
Financing commitments
NPDNI: 8,898,782 179,252 – 9,078,034
– Excellent 198,506 3,584 – 202,090
– Satisfactory 35,876 3,537 – 39,413
– Fair 9,133,164 186,373 – 9,319,537
PDNI – 5,499 – 5,499

Impaired – – 32,046 32,046
Gross exposure 9,133,164 191,872 32,046 9,357,082

Impairment allowances (463,844) (279,621) (272,660) (1,016,125)
Net exposure 65,213,181 2,017,742 327,769 67,558,692

NPDNI:
– Excellent 1,434,065 3,275 – 1,437,340
– Satisfactory 357,840 16,079 – 373,919
– Fair 428 172 – 600
1,792,333 19,526 – 1,811,859
PDNI – 11,045 – 11,045

Impaired – – 5 5
Gross exposure 1,792,333 30,571 5 1,822,909

Impairment allowances (23,464) (456) – (23,920)
Net exposure 1,768,869 30,115 5 1,798,989
327


(iii) Credit quality of financing, advances and others (continued)
The credit quality of the Bank’s financing, advances and others are summarised as follows: (continued)
Group and Bank Stage 1 Stage 2 Stage 3 Total

2020 RM’000 RM’000 RM’000 RM’000

NPDNI:
– Excellent 46,398,623 827,642 – 47,226,265
– Satisfactory 6,267,615 727,566 – 6,995,181
– Fair 263,084 112,065 – 375,149
52,929,322 1,667,273 – 54,596,595

PDNI – 628,767 – 628,767
Impaired – – 373,234 373,234
Gross carrying amount 52,929,322 2,296,040 373,234 55,598,596
Financing commitments
NPDNI:
– Excellent 7,924,991 33,371 – 7,958,362
– Satisfactory 1,431,364 105,542 – 1,536,906
– Fair 69,915 27,818 – 97,733
9,426,270 166,731 – 9,593,001

PDNI – 5,501 – 5,501
Impaired – – 16,725 16,725
Gross exposure 9,426,270 172,232 16,725 9,615,227

Impairment allowances (625,052) (151,067) (122,532) (898,651)
Net exposure 61,730,540 2,317,205 267,427 64,315,172

NPDNI:
– Excellent 1,691,570 583 – 1,692,153
– Satisfactory 232,950 15,669 – 248,619
– Fair 234 628 – 862
1,924,754 16,880 – 1,941,634

PDNI – – – –
Impaired – – 157 157
Gross exposure 1,924,754 16,880 157 1,941,791

Impairment allowances (28,930) (380) – (29,310)
Net exposure 1,895,824 16,500 157 1,912,481
328

No significant changes to estimation techniques or assumptions were made during the year.
Internal rating definition:-
Excellent to Good: Sound financial position with no difficulty in meeting its obligations.
Satisfactory: Adequate safety of meeting its current obligations but more time is required to meet the
entire obligation in full.
Fair: Higher risks on payment obligations. Financial performance may continue to deteriorate.
Classification of financing, advances and others:-
•• Neither past due nor impaired financing
Financing for which the customer has not missed a contractual payment (profit or principal) when
contractually due and is not impaired and there is no objective evidence of impairment.
•• Past due but not impaired financing
Financing for which its contractual profit or principal payments are past due, but the Group and the
Bank believe that impairment is not appropriate on the basis of the level of collateral available and/or the
stage of collection amounts owed to the Group and the Bank.
•• Impaired financing
In addition to Note 2.1(a)(ii), financing is classified as impaired/defaulted:
(i) where the principal or profit or both are past due for three months or more;
(ii) in the case of revolving credit facilities, where the outstanding amount has remained in excess of
the approved limit for a period of three months or more;
(iii) where the amount is past due or the outstanding amount has been in excess of the approved limit
for three months or less and the financing exhibits indications of significant credit weakness;
(iv) as soon as default occurs where the principal and/or profit repayments are schedule on intervals of
3 months or longer.
329


Past due but not impaired financing
Group and Bank
2021 2020
% to gross % to gross
RM’000 financing RM’000 financing
By ageing
Month-in-arrears 1 217,722 0.37 429,323 0.77
Month-in-arrears 2 196,644 0.33 199,444 0.36
414,366 0.70 628,767 1.13
Impaired financing
Group and Bank
2021 2020
RM’000 RM’000
By ageing
Month-in-arrears 0 279,211 38,464
Month-in-arrears 3 and above 276,424 306,481
568,383 373,234
Impaired financing of which rescheduled and restructured financing
Group and Bank
2021 2020
RM’000 RM’000
Consumer 26,791 23,608

Business 74,352 65,369
101,143 88,977
Rescheduled or restructured financings are financings that have been rescheduled or restructured due to
deterioration in the customers’ financial positions and the Bank has made concessions that it would not
otherwise consider. Once the financing is rescheduled or restructured, its satisfactory performance is
monitored for a period of six (6) months before it can be reclassified to performing.
330

Key macroeconomic variables
The following table shows certain key macroeconomic variables used in modelling the allowance for credit
losses for Stages 1 and 2. For the base, upside and downside scenarios, the projections are provided for the
next 12 months and for the remaining forecast period, which represents a medium-term view.
Base scenario Upside scenario Downside scenario
Remaining Remaining Remaining

Next 12 forecast Next 12 forecast Next 12 forecast
months period months period months period
(2022) (2023) (2022) (2023) (2022) (2023)
Oil Price (“OP”) 63.34 62.24 72.18 71.07 30.89 29.79

Gross Domestic
Production (“GDP”) 5.30% 4.50% 6.55% 5.75% -0.80% -1.50%
House Price Index
(“HPI”) 1.32% 1.43% 2.20% 2.31% 0.79% 0.90%
Kuala Lumpur
Composite Index
(“KLCI”) 1,750.0 1,827.0 2,199.9 2,276.9 871.5 925.9
An increase in unemployment rate or CPI will generally correlate with higher allowances for credit losses,
whereas an increase in the other macroeconomic factors (KLCI, HPI and GDP) will generally correlate with
lower allowances for credit losses. Due to the unprecedented nature of the pandemic, and the difficulty of
predicting reliably the forecast period, the Group and the Bank have applied certain management overlay
on the overall allowance for credit losses.
These overlays and post-model adjustments were taken to reflect the latest macroeconomic outlook not
captured in the modelled outcome and potential impact to delinquencies and defaults when the various
relief and support measures are expiring in 2022. The impact were estimated at portfolio level. Total overlays
for ECLs maintained by the Group and by the Bank as at 31 December 2021 are RM335,526,000 (31 December
2020: RM231,574,000).
331


(iv) Credit quality of other financial assets excluding cash, short-term funds and deposits
Credit quality of other financial assets by external rating is as follows:
Group Stage 1 Stage 3 Total

2021 RM’000 RM’000 RM’000
Financial assets at FVOCI

Debt instrument
Government bonds and GG 8,690,000 – 8,690,000
Sukuk:
Rated AAA 2,391,696 – 2,391,696
Rated AA1 to AA3 1,429,133 – 1,429,133
Lower than A 15,841 – 15,841
Gross carrying amount 12,526,670 – 12,526,670
Impairment allowances^ 7,237 – 7,237
Derivative financial assets

Bank and financial institution counterparties 16,044
Corporate 9,993
26,037
Financial assets at FVTPL

Government bonds and GG 1,131,574
Sukuk:
Rated AA1 to AA3 155,515
1,287,089
Financial assets at AC
MARC C – 5,289 5,289
Impairment allowance – (5,289) (5,289)
Net carrying amount 1,348,844 – 1,348,844
Other financial assets at AC

Other unrated financial assets 294,508 2,975 297,483
Impairment allowances – (2,975) (2,975)
Net carrying amount 294,508 – 294,508
^ The impairment allowances are recognised in OCI reserve.
332

(iv) Credit quality of other financial assets excluding cash, short-term funds and deposits (continued)
Credit quality of other financial assets by external rating is as follows: (continued)
Group Stage 1 Stage 3 Total

2021 RM’000 RM’000 RM’000

Debt instrument
Sukuk:
Rated AAA 3,020,792 – 3,020,792
Rated AA1 to AA3 1,519,327 – 1,519,327
Lower than A – 15,842 15,842
Gross carrying amount 12,478,198 15,842 12,494,040
Impairment allowances^ 403 – 403

Corporate 6,256
61,665

Sukuk:
Rated AAA 942,710

333


Bank Stage 1 Stage 3 Total

2021 RM’000 RM’000 RM’000

Debt instrument
Sukuk:
Rated AAA 2,391,696 – 2,391,696
Rated AA1 to AA3 1,429,133 – 1,429,133
Lower than A 15,841 – 15,841
Gross carrying amount 12,526,670 – 12,526,670
Impairment allowances^ 7,237 – 7,237

Corporate 9,993
26,037

Government bonds and treasury bills 1,131,574
Sukuk:
1,287,089
Financial assets at AC
MARC C – 5,289 5,289
Impairment allowance – (5,289) (5,289)
Net carrying amount 1,348,844 – 1,348,844

334

Bank Stage 1 Stage 3 Total

2020 RM’000 RM’000 RM’000

Debt instrument
Government bonds and treasury bills 7,938,079 – 7,938,079
Sukuk
Rated AAA 3,020,792 – 3,020,792
Rated AA1 to AA3 1,519,327 – 1,519,327
Lower than A – 15,842 15,842
Gross carrying amount 12,478,198 15,842 12,494,040
Impairment allowances^ 403 – 403

Corporate 6,256
61,665

Sukuk:

^ The impairment allowances are recognised in OCI reserve..
335


(c) Market risk
Overview
Market risk is the risk of adverse impact to the Group’s and the Bank’s arises from fluctuations of market prices
and rates. The following are the main market risk factors that the Group and the Bank are exposed to:
– Profit Rate Risk: also known as the Rate of Return Risk, is the potential impact on the Group’s and the
Bank’s profitability caused by changes in the rate of return due to general market movements or issuer/
customer specific reasons;
– Foreign Exchange Risk: the impact of exchange rate movements on the Group’s and the Bank’s currency
positions; and
– Equity Instrument Risk: the profitability impact on the Group’s and the Bank’s equity positions or
investments caused by changes in equity prices or values.
The Group and the Bank separates the market risk exposures into either trading book or banking book portfolios.
Trading book portfolios include those positions arising from market making, proprietary position taking and
other marked-to-market positions as per the Board-approved Trading Book Policy Statements. Banking book
portfolios primarily arise from the Group’s and the Bank’s profit rate management of the Bank’s assets and
liabilities and investment portfolio mainly for liquidity management.
Market risk governance
The management of market risk is principally carried out by using sets of policies and guidelines approved by
the ALCO and/or BRC, guided by the Board-approved Risk Appetite Statement.
The ALCO is responsible under the authority delegated by the BRC for managing market risk at strategic level.
Management of market risk
The objective is to manage market risk exposures in order to optimise return on risk while maintaining a market
risk profile consistent with the Group’s and the Bank’s approved risk appetite.
All market risk exposures are managed by Treasury, who has the necessary skills, tools, management and
governance to manage such risks. The management of market risk is guided by comprehensive limits, policies
and guidelines which are periodically reviewed.
The Market Risk Management Department (“MRMD”) is the independent risk control function that is responsible
for the implementation of market risk management framework. MRMD is also responsible for developing and
reviewing the Group’s and the Bank’s market risk management guidelines and policies, monitoring tools,
behavioural assumptions and limit setting methodologies. Escalation procedures are documented and approved
by the ALCO and/or BRC. In addition, the market risk exposures and limits are reported to the ALCO and the BRC.
Other controls to ensure that market risk exposures remain within tolerable levels include regular stress testing,
ad-hoc simulations and rigorous new product approval procedures. Stress test results are produced regularly to
determine the impact of changes in profit rates, foreign exchange rates and other risk factors on the Group’s and
the Bank’s profitability, capital adequacy and liquidity. The stress test provides the Management and the BRC
with an assessment of the financial impact of identified extreme events on the market risk exposures of the
Group and the Bank.
336

(c) Market risk (continued)
(i) Profit rate risk
The table below summarises the Group’s and the Bank’s exposure to profit rate risk. The table indicates
average profit rates at the reporting date and the periods in which the financial instruments are repriced or
mature, whichever is earlier.
Banking book
Effective
Up to 1 >1–3 >3–12 1–5 Over 5 Non–profit Trading profit
Group month months months years years sensitive book Total rate
2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 %
Assets
Cash and short-term funds and
deposits and placements with
financial institutions 4,468,535 – – – – 754,313 – 5,222,848 1.53
Financial assets at FVTPL – – – – – – 1,582,494 1,582,494 2.51
Derivative financial assets – – – – – – 26,037 26,037 0.34
Financial assets at FVOCI 748,201 200,402 2,227,959 6,755,240 2,672,402 – – 12,604,204 3.69
Financing, advances and others – – 50,529 1,288,203 10,112 – – 1,348,844 2.04
– non-impaired 46,991,212 4,788,799 1,040,059 1,251,679 3,656,933 920,670 – 58,649,352 4.24
– impaired net of allowances * – – – – – (495,583) – (495,583) –
Other financial assets at amortised cost – – – – – 294,508 – 294,508 –
Statutory deposits with Bank Negara
Malaysia – – – – – 264,050 – 264,050 –
Total assets 52,207,948 4,989,201 3,318,547 9,295,122 6,339,447 1,737,958 1,608,531 79,496,754
Liabilities
Deposits from customers 13,126,938 9,285,290 14,086,170 497,276 48,874 20,294,286 – 57,338,834 1.45
Investment accounts of customers 1,340,131 1,322,364 1,126,857 7,913 – 6,655,637 – 10,452,902 1.29
Derivative financial liabilities – – – – – – 20,421 20,421 0.27
Bills and acceptance payable – – – – – 20,112 – 20,112 –
Recourse obligations on financing sold
to Cagamas – – – 2,000,000 – 1,720 – 2,001,720 4.36
Subordinated Sukuk Murabahah – – – – 2,000,000 14,849 – 2,014,849 4.11
Other liabilities – – – – – 1,570,602 – 1,570,602 –
Lease liabilities 728 2,283 9,409 53,502 237,526 – – 303,448 –
Total liabilities 14,467,797 10,609,937 15,222,436 2,558,691 2,286,400 28,557,206 20,421 73,722,888
On-balance sheet profit sensitivity gap 37,740,151 (5,620,736) (11,903,889) 6,736,431 4,053,047 (26,819,248) 1,588,110 5,773,866
Off-balance sheet profit sensitivity gap
(profit rate swaps) – – – 79,153 – – – 79,153
Total profit sensitivity gap 37,740,151 (5,620,736) (11,903,889) 6,815,584 4,053,047 (26,819,248) 1,588,110 5,853,019
* This is arrived at after deducting impairment allowances from the outstanding gross impaired financing.
337


(i) Profit rate risk (continued)
Banking book
Effective
Group month months months years years sensitive book Total rate
Assets
– non-impaired 50,683,675 442,090 42,052 1,030,556 2,282,468 744,521 – 55,225,362 4.72
– impaired net of allowances * – – – – – (554,727) – (554,727)
Other financial assets at amortised cost – – – – – 192,574 – 192,574
Malaysia – – – – – 192,425 – 192,425
Total assets 55,254,200 1,120,495 1,269,007 7,756,414 6,129,448 1,300,798 1,242,865 74,073,227
Liabilities
Deposits from customers 12,210,156 8,395,068 10,787,258 1,735,439 35,117 17,914,224 – 51,077,262 1.99
Bills and acceptance payable – – – – – 29,621 – 29,621
to Cagamas – – – 1,500,000 – 1,187 – 1,501,187 4.74
Other liabilities – – – – – 1,136,863 – 1,136,863
Lease liabilities 1,409 2,267 9,760 46,551 252,442 – – 312,429 5.70
338

Banking book
Effective
Bank month months months years years sensitive book Total rate
Assets
Derivative financial assets – – – – – 26,037 26,037 0.34
Financial assets at amortised cost – – 50,529 1,288,203 10,112 – – 1,348,844 2.04
– non-impaired 46,991,212 4,788,799 1,040,059 1,251,679 3,656,933 920,670 – 58,649,352 4.24
– impaired net of allowances * – – – – – (495,583) – (495,583) –
Other financial assets at amortised cost – – – – – 239,257 – 239,257 –
Malaysia – – – – – 264,050 – 264,050 –
Total assets 52,193,453 4,989,201 3,318,547 9,295,122 6,339,447 1,679,581 1,576,737 79,392,088
Liabilities
Deposits from customers 13,127,720 9,286,497 14,094,624 497,276 48,874 20,308,935 – 57,363,926 1.45
Bills and acceptance payable – – – – – 20,112 – 20,112 –
to Cagamas – – – 2,000,000 – 1,720 – 2,001,720 4.36
Other liabilities – – – – – 1,538,375 – 1,538,375 –
Lease liabilities 683 2,191 9,082 53,502 237,526 – – 302,984 5.70
* This is arrived at after impairment allowances from the outstanding gross impaired financing.
339


Banking book
Effective
Bank month months months years years sensitive book Total rate
Assets
– non-impaired 50,683,675 442,090 42,052 1,030,556 2,282,468 744,521 – 55,225,362 4.72
– impaired net of allowances* – – – – – (554,727) – (554,727)
Other financial assets at amortised cost – – – – – 182,041 – 182,041
Malaysia – – – – – 192,425 – 192,425
Total assets 55,254,938 1,120,495 1,269,007 7,756,414 6,129,448 1,289,808 1,237,105 74,057,215
Liabilities
Deposits from customers 12,210,491 8,397,374 10,792,984 1,735,439 35,117 17,924,046 – 51,095,451 2.00
Bills and acceptance payable – – – – – 29,621 – 29,621
to Cagamas – – – 1,500,000 – 1,187 – 1,501,187 4.74
Other liabilities – – – – – 1,024,855 – 1,024,855
Lease liabilities 1,409 2,267 9,760 46,551 252,442 – – 312,429 5.70
340

Profit rate risk in the banking book portfolio
Profit rate risk in the banking book portfolio is managed and controlled using measurement tools known
as Earnings at Risk (“EaR”) and Economic Value of Equity (“EVE”).
The Group and the Bank monitor the sensitivity of EaR and EVE under varying profit rate scenarios (i.e.
simulation modeling). The model is a combination of standard and non-standard scenarios relevant to the
local market. The standard scenarios include the parallel fall or rise in the profit rate curve and historical
simulation. These scenarios assume no management action. Hence, it does not incorporate actions that
would be taken by Treasury to mitigate the impact of the profit rate risk. In reality, depending on the view
on future market movements, Treasury would proactively manage and strategise to change the profit rate
exposure profile to minimise losses and to optimise net revenues. The Bank’s hedging and risk mitigation
strategies range from the use of derivative financial instruments, such as profit rate swaps, to more intricate
hedging strategies to address inordinate profit rate risk exposures.
The table below shows the Group’s and the Bank’s profit rate sensitivity to a 150 basis points (2020: 100 basis
point) parallel shift as at reporting date.
Impact on profit after tax/reserves – Increase/(Decrease)
2021 2020
-150bps +150bps -100bps +100bps

RM million RM million RM million RM million
Group
Impact on EaR (206.6) 206.6 (131.4) 131.4
Impact on EVE 294.0 (294.0) 241.0 (241.0)
Bank
Impact on EaR (204.7) 204.7 (131.4) 131.4
Impact on EVE 293.6 (293.6) 240.9 (240.9)
On 30 June 2020, BNM issued the revised reporting requirements for EVE and EaR which come into effect
on 1 January 2021. One of the changes is to report both the EVE and EaR based on 150 basis point parallel
shift instead of 100 basis point parallel shift.
Another control to manage the profit rate risk in the banking book portfolio includes present value of 1 basis
point change (“PV01”) which measures the portfolio’s sensitivity to market rates movement.
341


(ii) Market risk in the trading book portfolio
Market risk in the trading book portfolio is monitored and controlled using Value-at-Risk (“VaR”). It is a
technique that estimates the potential losses that could occur on risk positions as a result of movements in
market rates over a specified time horizon and to a given level of confidence. The VaR model used by the
Group and the Bank are based on historical simulation which derives plausible future scenarios from past
series of recorded market rates and prices. The historical simulation model used by the Group and the Bank
incorporates the following features:
•• Potential market movements are calculated with reference to data from the past two years;
•• Historical market rates and prices are calculated with reference to foreign exchange rates and profit rates;
and
•• VaR is calculated using a 99 per cent confidence level and for a one-day holding period.
A summary of the VaR position of the Bank’s trading book portfolios at the reporting date is as follows:
1.1.2021 to 31.12.2021
As at
31.12.2021 Average Maximum Minimum
Bank RM million RM million RM million RM million
Profit rate risk 0.14 1.05 2.39 0.14

Foreign exchange risk 0.36 0.66 1.19 0.34
Overall 0.50 1.71 2.78 0.50
1.1.2020 to 31.12.2020
As at
31.12.2020 Average Maximum Minimum
Profit rate risk 2.76 1.88 3.32 0.01

Foreign exchange risk 0.42 0.47 1.02 0.23
Overall 3.18 2.36 3.89 0.36
In addition to VaR, the Group and the Bank has put in place the maximum loss limits, position limits, tenor
limits and PV01 limits in monitoring the trading book portfolio.
342

(iii) Foreign exchange risk
The Group and the Bank manages and controls the trading book portfolio’s foreign exchange risk by limiting
the net open exposure to individual currencies and on an aggregate basis. The Group and the Bank also has
in place the sensitivity limit. For the Bank-wide (trading book and banking book portfolios) foreign exchange
risk, the Group and the Bank manage and control by limiting the net open exposure on an aggregate basis.
Sensitivity Analysis
Assuming that other risk variables remain constant, the foreign currency revaluation sensitivity for the Group
and the Bank as at reporting date is summarised as follows (only net open position for major currencies are
shown in its specific currency in the table below. For other currencies, these exposures are grouped as
‘Others’):
Impact on profit after tax - Increase/(Decrease)
2021 2020
-1% +1% -1% +1%

Depreciation Appreciation Depreciation Appreciation
US Dollar vs RM 12,136 (12,136) 8,844 (8,844)

Euro vs RM 4,576 (4,576) 5,072 (5,072)
Others vs RM (193) 193 (194) 194
(d) Liquidity risk

Overview
Liquidity risk is the potential inability of the Group and the Bank to meet its funding needs and regulatory
obligation when they fall due, or will have to do it at excessive cost. This risk can arise from mismatches in the
timing of cash flows.
The Group and the Bank maintains a diversified and stable funding base comprising of retail and corporate
customer deposits. This is augmented by wholesale funding and highly liquid assets portfolios.
The objective of the Group’s and the Bank’s liquidity management is to ensure that all foreseeable funding
commitments and deposit withdrawals can be met when due and that wholesale market remains accessible and
cost effective.
Savings account, current account, investment accounts (IA) and term deposits form a critical part of the Group’s
and the Bank’s funding profile and the Group and the Bank place considerable importance on maintaining their
stability. The stability depends upon preserving depositor confidence in the Group and the Bank and the Group’s
and the Bank’s capital strength and liquidity, and on competitive and transparent pricing.
343


(d) Liquidity risk (continued)
Overview (continued)
The Group’s and the Bank’s liquidity management is primarily carried out in accordance with Bank Negara
Malaysia’s requirements and the internal limits are approved by the ALCO and/or BRC. The limits vary to take
account of the depth and liquidity of the local market in which the Group and the Bank operate. The Group and
the Bank maintain a strong liquidity position and manage the liquidity profile of its assets, liabilities and
commitments to ensure that cash flows are appropriately balanced and all obligations are met when due.
The management of liquidity risk is principally carried out by using sets of policies and guidelines approved by
ALCO and/or BRC, guided by the Board’s approved Risk Appetite Statement.
The ALCO is responsible under the authority delegated by the BRC for managing liquidity risk at strategic level.
Management of liquidity risk
All liquidity risk exposures are managed by Treasury, who has the necessary skills, tools, management and
governance to manage such risks. Limits and other risk controls are set to meet the following objectives:
•• Maintaining sufficient liquidity surplus and reserves to sustain a sudden liquidity shock;
•• Ensuring cash flows are relatively diversified across all maturities;
•• Ensuring deposit base is diversified and not overly concentrated to a relatively small number of depositors;
•• Maintaining sufficient borrowing capacity in the Interbank market
•• Maintain sufficient highly liquid financial assets;
•• Not over-extending financing activities relative to the deposit base; and
•• Not over-relying on non-Ringgit liabilities to fund Ringgit assets.
MRMD is also responsible for the implementation of liquidity risk management framework. It develops the
Group’s and the Bank’s liquidity risk management guidelines, monitoring tools, behavioural assumptions and
limit setting methodologies. Escalation procedures are documented and approved by the ALCO and/or BRC, with
proper authorities to ratify or approve any excess. In addition, the liquidity risk exposures and limits are reported
to the ALCO and the BRC.
Stress testing and scenario analysis are important tools used by the Group and the Bank to manage the liquidity
risk. Stress test results are produced regularly to determine the impact of a sudden liquidity shock. The stress
testing provides the Management and the BRC with an assessment of the financial impact of identified extreme
events on the liquidity and funding risk exposures of the Group and the Bank.
Another key control feature of the Group’s and the Bank’s liquidity risk management is the liquidity contingency
management plans. These plans identify the pre-emptive quantitative and qualitative indicators of stress
conditions arising from systemic or other crises and provide guidance on the actions to be taken in order to
minimise the adverse implications to the Group and the Bank.
344

Maturity analysis
The table below analyses assets and liabilities of the Group and the Bank based on the remaining period at the
end of the reporting period to the contractual maturity date in accordance with the requirement of Bank Negara
Malaysia Guidelines:
On
demand/
no
specific
maturity Up to >1 to 3 >3 to 6 >6 to 12 Over
Group date 1 month months months months 1 year Total
As at 31 December 2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Assets
financial institutions 754,313 4,468,535 – – – – 5,222,848
Financial assets at FVTPL 295,395 10,225 494,559 447,071 335,244 – 1,582,494
Derivative financial assets – 5,316 7,759 11,972 73 917 26,037
Financial assets at FVOCI 77,534 670,667 200,402 1,010,231 1,217,728 9,427,642 12,604,204
Financial assets at amortised
cost – – – 50,529 – 1,298,315 1,348,844
Financing, advances and others – 2,405,500 1,325,153 691,800 505,753 53,225,563 58,153,769
Other financial assets at
amortised cost 294,508 – – – – – 294,508
Statutory deposits with Bank
Negara Malaysia 264,050 – – – – – 264,050
Total assets 1,685,800 7,560,243 2,027,873 2,211,603 2,058,798 63,952,437 79,496,754
Liabilities
Deposits from customers 20,294,286 13,126,938 9,285,290 8,116,272 5,969,898 546,150 57,338,834
Investment accounts of
customers 6,655,637 1,340,131 1,322,364 907,940 218,917 7,913 10,452,902
Derivative financial liabilities – 5,176 7,565 6,387 625 668 20,421
Bills and acceptance payable 20,112 – – – – – 20,112
financing sold to Cagamas – – – – – 2,001,720 2,001,720
Subordinated Sukuk
Murabahah – – 3,945 10,904 – 2,000,000 2,014,849
Other liabilities 1,570,602 – – – – – 1,570,602
Lease liabilities – 728 2,283 3,461 5,948 291,028 303,448
Total liabilities 28,540,637 14,472,973 10,621,447 9,044,964 6,195,388 4,847,479 73,722,888
Net liquidity gap on statement

of financial position (27,227,766) (6,539,801) (8,593,574) (6,833,361) (4,136,590) 59,104,958 5,773,866
345


Maturity analysis (continued)
The table below analyses assets and liabilities of the Group and the Bank based on the remaining period at the
end of the reporting period to the contractual maturity date in accordance with the requirement of Bank Negara
Malaysia Guidelines: (continued)
On
demand/
no
specific
Group date 1 month months months months 1 year Total
Assets
financial institutions 725,644 4,490,732 – 361 – – 5,216,737
Financial assets at FVTPL 238,490 243,618 – 30,051 50,041 619,000 1,181,200
Derivative financial assets – 25,579 26,773 6,915 227 2,171 61,665
Financial assets at FVOCI 63,951 15,842 678,405 395,567 831,388 10,572,838 12,557,991
amortised cost 192,574 – – – – – 192,574
Negara Malaysia 192,425 – – – – – 192,425
Total assets 1,413,084 6,575,104 1,760,071 862,551 1,258,656 62,203,761 74,073,227
Liabilities
Deposits from customers 17,914,224 12,210,156 8,395,068 5,830,244 4,957,014 1,770,556 51,077,262
customers 5,113,275 2,482,295 2,231,737 1,913,851 620,569 6,801 12,368,528
Derivative financial liabilities – 29,422 56,599 17,269 938 1,644 105,872
Subordinated Sukuk
Murabahah – – 3,904 9,260 – 1,700,000 1,713,164
Other liabilities 978,556 – – – – 59,523 1,038,079
Lease liabilities – 1,409 2,267 3,323 6,437 298,993 312,429

346

On
demand/
no
specific
Bank date 1 month months months months 1 year Total
Assets
Financial assets at FVTPL 263,611 10,215 494,559 447,071 335,244 – 1,550,700
Derivative financial assets – 5,316 7,759 11,972 73 917 26,037
Financial assets at FVOCI 78,397 670,667 200,402 1,010,231 1,217,728 9,427,642 12,605,067
Financial assets at amortised
cost – – – 50,529 – 1,298,315 1,348,844
amortised cost 239,257 – – – – – 239,257
Negara Malaysia 264,050 – – – – – 264,050
Total assets 1,596,502 7,544,875 2,027,873 2,211,603 2,058,798 63,952,437 79,392,088
Liabilities
Deposits from customers 20,308,935 13,127,720 9,286,497 8,120,947 5,973,677 546,150 57,363,926
customers 6,655,637 1,371,739 1,399,335 907,940 218,917 8,033 10,561,601
Derivative financial liabilities – 5,176 7,565 6,387 625 668 20,421
Subordinated Sukuk
Murabahah – – 3,945 10,904 – 2,000,000 2,014,849
Other liabilities 1,538,375 – – – – – 1,538,375
Lease liabilities – 683 2,191 3,322 5,760 291,028 302,984

347


On
demand/
no
specific
Bank date 1 month months months months 1 year Total
Assets
Financial assets at FVTPL 232,730 243,618 – 30,051 50,041 619,000 1,175,440
Derivative financial assets – 25,579 26,773 6,915 227 2,171 61,665
Financial assets at FVOCI 64,689 15,842 678,405 395,567 831,388 10,572,838 12,558,729
amortised cost 182,041 – – – – – 182,041
Negara Malaysia 192,425 – – – – – 192,425
Total assets 1,397,433 6,575,104 1,760,071 862,190 1,258,656 62,203,761 74,057,215
Liabilities
Deposits from customers 17,924,046 12,210,491 8,397,374 5,832,265 4,960,719 1,770,556 51,095,451
customers 5,113,275 2,482,295 2,231,757 1,913,851 620,569 7,150 12,368,897
Derivative financial liabilities – 29,422 56,599 17,269 938 1,644 105,872
Subordinated Sukuk
Murabahah – – 3,904 9,260 – 1,700,000 1,713,164
Other liabilities 965,332 – – – – 59,523 1,024,855
Lease liabilities – 1,409 2,267 3,323 6,437 298,993 312,429

348

Contractual maturity of financial liabilities on an undiscounted basis
The table below present the cash flows payable by the Bank under financial liabilities by remaining contractual
maturities at the end of the reporting period. The amounts disclosed in the table are the contractual undiscounted
cash flows:
Up to >1 to 3 >3 to 6 >6 to 12 Over

Group 1 month months months months 1 year Total
As at 31 December 2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Financial Liabilities
Deposits from customers 32,567,363 10,079,216 7,855,452 6,427,787 614,697 57,544,515
customers 8,019,903 1,432,649 796,052 341,948 8,287 10,598,839
Derivative financial liabilities 5,239 9,929 13,915 31,208 136,957 197,248
Forward contract 4,995 7,746 6,387 625 – 19,753
Islamic Profit Rate Swap 244 2,183 7,528 30,583 136,957 177,495
Bills and acceptance payable 20,112 – – – – 20,112
financing sold to Cagamas 7,120 14,240 21,359 42,719 2,050,345 2,135,783
Subordinated Sukuk Murabahah – 7,479 33,843 41,810 2,593,902 2,677,034
Other liabilities 1,270,602 – – – 300,000 1,570,602
Lease liabilities 2,542 5,084 7,626 14,155 422,605 452,012
41,892,881 11,548,597 8,728,247 6,899,627 6,126,793 75,196,145
Commitments and
Contingencies
Financial guarantee contracts 205,501 144,324 132,935 365,503 974,646 1,822,909
205,501 144,324 132,935 365,503 974,646 1,822,909
349


Contractual maturity of financial liabilities on an undiscounted basis (continued)

Group 1 month months months months 1 year Total
Deposits from customers 30,022,422 8,429,037 5,879,065 5,061,386 1,919,877 51,311,787
customers 7,610,826 2,240,679 1,930,504 630,355 7,427 12,419,791
Derivative financial liabilities 256 2,183 7,528 30,583 349,233 389,783
Forward contract 11 – – – – 11
38,748,946 10,696,216 7,870,143 5,808,527 6,637,454 69,761,286
Commitments and
Contingencies
Financial guarantee contracts 136,040 154,767 154,596 339,429 1,156,959 1,941,791
136,040 154,767 154,596 339,429 1,156,959 1,941,791
350


Bank 1 month months months months 1 year Total
Deposits from customers 32,567,363 10,079,216 7,855,452 6,427,787 614,697 57,544,515
customers 8,019,903 1,432,649 796,052 341,948 8,287 10,598,839
Derivative financial liabilities 5,239 9,929 13,915 31,208 136,957 197,248
Forward contract 4,995 7,746 6,387 625 – 19,753
41,860,607 11,548,502 8,728,105 6,899,437 6,126,793 75,163,444
Commitments and
Contingencies
Financial guarantee contracts 205,501 144,324 132,935 365,503 974,646 1,822,909
205,501 144,324 132,935 365,503 974,646 1,822,909
351



Bank 1 month months months months 1 year Total
Deposits from customers 30,022,422 8,429,037 5,879,065 5,061,386 1,919,877 51,311,787
customers 7,610,826 2,240,679 1,930,504 630,355 7,427 12,419,791
Derivative financial liabilities 256 2,183 7,528 30,583 349,233 389,783
Forward contract 11 - - - - 11
Bills and acceptance payable 29,621 - - - - 29,621
Subordinated Sukuk Murabahah - 7,356 27,700 35,834 2,253,966 2,324,856
Other liabilities 1,094,136 - - - 59,523 1,153,659
38,765,742 10,696,216 7,870,143 5,808,527 6,637,454 69,778,082
Commitments and
Contingencies
Financial guarantee contracts 136,040 154,767 154,596 339,429 1,156,959 1,941,791
136,040 154,767 154,596 339,429 1,156,959 1,941,791
(e) Operational Risk

Overview
Operational risk is defined as the risk of loss arising from inadequate or failed internal processes, people and
systems and external events, which includes legal risk and Shariah compliance risk but excludes strategic and
reputational risk.
Management of operational risk
The Group and the Bank recognises and emphasises the importance of operational risk management (“ORM”)
and manages this risk through a control-based environment where processes are documented, authorisation is
independent, transactions are reconciled and monitored and business activities are carried out within the
established guidelines, procedures and limits.
352

(e) Operational Risk (continued)
Management of operational risk (continued)
The Group’s and the Bank’s overall governance approach in managing operational risk is premised on the Three
Lines of Defence Approach:
•• 1st line of defence – The risk owner or risk taking unit i.e. Business or Support Unit is accountable for putting
in place a robust control environment within their respective units. They are responsible for the day-to-day
management of operational risk. Head of Division/Department (“HOD”) are accountable for effective
management of operational risk within their respective divisions.
To reinforce accountability and ownership of risk and control, a Risk Controller for each risk taking unit is
appointed to assist in driving the risk and control programme for the Group and the Bank.
In addition, an Embedded Risk & Compliance Unit (“ERU”) has been established within the significant
business and support units (“BU/SU”). The ERU would assist in implementing and monitoring the ORM
activities within the BU/SU. The ERU’s relationship and knowledge of the business allow for a more focused
implementation and effective oversight of ORM within the BU/SU.
•• 2nd line of defence – Operational Risk Management Department (“ORMD”) is responsible for establishing and
maintaining the ORM Framework, developing various ORM tools to facilitate the management of operational
risk, monitoring the effectiveness of ORM via an integrated operational risk management system, assessing
operational risk issues from the risk owner and escalating the issues to the relevant governance level with
recommendations on appropriate risk mitigation strategies. In creating a strong risk culture, ORMD is also
responsible to promote risk awareness across the Group and the Bank.
Shariah Risk Management Department (“SRM”), Compliance Division which includes Shariah Compliance
Department (“SCD”) and Information Security Governance (“ISGD”) complement the role of ORMD as the
second line of defence. SRM is responsible for managing the Shariah compliance risk (“SCR”) by establishing
and maintaining appropriate SRM guidelines, facilitating the process of identifying, assessing, controlling and
monitoring SCR and promoting SCR awareness.
Compliance Division is responsible for ensuring effective oversight on compliance-related risks such as
regulatory compliance risk, compliance risk as well as money laundering and terrorism financing risks through
proper classification of risks and develops, reviews and enhances compliance-related training programmes as
well as conducts training that promotes awareness creation.
SCD of Compliance Division, is responsible for reviewing and monitoring Shariah compliance of the Group’s
operations, activities and services at BU/SU level.
ISGD is responsible in managing technology risk by establishing, maintaining and enforcing technology risk
policies and guidelines, as well as promoting Bank-wide awareness on technology risk. It also works closely
with Information Technology Division (“ITD”) in identifying, assessing, mitigating and monitoring of technology
risk in the Group and the Bank.
•• 3rd line of defence – Internal Audit provides independent assurance to the Board and senior management
on the effectiveness of the ORM process.
353


(f) Offsetting Financial Assets and Financial Liabilities
The Group and the Bank report financial assets and financial liabilities on a net basis on the balance sheet only
if there is a legally enforceable right to set off the recognised amounts and there is intention to settle on a net
basis, or to realise the asset and settle the liability simultaneously.
The following financial assets and liabilities are subject to offsetting, enforceable master netting arrangements
and similar agreements:
Gross Gross
amounts amounts
of of
recognised recognised Net
financial financial amount Related amounts not set
assets liabilities presented off in the statements of
in the in the in financial position
statement statement statement
of of of Financial
financial financial financial Financial collateral Net
position position position instruments received amount
RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
2021
Derivatives assets 26,037 – 26,037 (14,574) (130) 11,333

Derivatives liabilities – 20,421 20,421 (14,574) (130) 5,717
2020
Derivatives assets 61,665 – 61,665 (37,505) (130) 24,030
Derivatives liabilities – 105,872 105,872 (37,505) (130) 68,237
354
40. FAIR VALUE OF FINANCIAL INSTRUMENTS

Financial instruments comprise financial assets, financial liabilities and off-balance sheet instruments. Fair value is the
amount at which the financial assets could be exchanged or a financial liability settled, between knowledgeable and
willing parties in an arm’s length transaction. The information presented herein represents the estimates of fair values
as at the financial position date.
Quoted and observable market prices where available, are used as the measure of fair values. Where such quoted
and observable market prices are not available, fair values are estimated based on a range of methodologies and
assumptions regarding risk characteristics of various financial instruments, discount rates, estimates of future cash
flows and other factors. Changes in the assumptions could materially affect these estimates and the corresponding
fair values.
Fair value information for non-financial assets and liabilities such as investments in subsidiaries and taxation are
excluded, as they do not fall within the scope of MFRS 7, Financial Instruments: Disclosure and Presentation which
requires the fair value information to be disclosed.
The fair values are based on the following methodologies and assumptions:
Deposits and placements with banks and other financial institutions
For deposits and placements with financial instruments with maturities of less than six months, the carrying value is
a reasonable estimate of fair values. For deposits and placements with maturities six months and above, the
estimated fair values are based on discounted cash flows using prevailing Islamic money market profit rates at which
similar deposits and placements would be made with financial instruments of similar credit risk and remaining period
to maturity.
Financial assets measured at FVTPL and FVOCI
The estimated fair values are generally based on quoted and observable market prices. Where there is no ready
market in certain securities, fair values have been estimated by reference to market indicative yields or net tangible
asset backing of the investee.
The fair values are estimated by discounting the estimated future cash flows using the prevailing market rates of
financing with similar credit risks and maturities.
Deposits from customers and investment accounts of customers
The fair values of deposits and investment accounts are deemed to approximate their carrying amounts as rate of
returns are determined at the end of their holding periods based on the profit generated from the assets invested.
Deposits and placements of banks and other financial institutions
The estimated fair values of deposits and placements of banks and other financial institutions with maturities of less
than six months approximate the carrying values. For deposits and placements with maturities of six months or more,
the fair values are estimated based on discounted cash flows using prevailing money market profit rates for deposits
and placements with similar remaining period to maturities.
355

40. FAIR VALUE OF FINANCIAL INSTRUMENTS (CONTINUED)

Bills and acceptance payable
The estimated fair values of bills and acceptance payables with maturity of less than six months approximate their
carrying values. For bills and acceptance payable with maturities of six months or more, the fair values are estimated
based on discounted cash flows using prevailing market rates for borrowings with similar risk profiles.
Fair value hierarchy
MFRS 13 specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are
observable or unobservable. Observable inputs reflect market data obtained from independent sources and
unobservable inputs reflect the Group’s market assumptions. The fair value hierarchy is as follows:
•• Level 1 – Quoted price (unadjusted) in active markets for the identical assets or liabilities. This level includes listed
equity securities and debt instruments.
•• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). This level includes profit rate swaps and structured
debt. The sources of input parameters include BNM indicative yields or counterparty credit risk.
•• Level 3 – Inputs for asset or liability that are not based on observable market data (unobservable inputs). This level
includes equity instruments and debt instruments with significant unobservable components.
The table below analyses financial instruments carried at fair value and those not carried at fair value for which fair
value is disclosed, together with their fair values and carrying amounts shown in the statement of financial position.
The table does not include those short-term/on demand financial assets and financial liabilities where the carrying
amounts are reasonable approximation of their fair values.
356

Fair value hierarchy (continued)
Fair value
of financial
instruments
Fair value of financial instruments not carried
carried at fair value at fair value
Total Carrying
Group Level 1 Level 2 Level 3 Total Level 3 fair value amount
31 December 2021 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Financial assets
Financial assets at FVTPL – 1,582,494 – 1,582,494 – 1,582,494 1,582,494
Derivative financial assets – 26,037 – 26,037 – 26,037 26,037
Financial assets at FVOCI 17,004 12,526,670 60,530 12,604,204 – 12,604,204 12,604,204
Financial assets at AC – – – – 1,330,502 1,330,502 1,348,844
Financing, advances and others – – – – 61,303,303 61,303,303 58,153,769
Derivative financial liabilities – 20,421 – 20,421 – 20,421 20,421
to Cagamas – – – – 2,044,330 2,044,330 2,001,720
Subordinated Sukuk Murabahah – – – – 2,009,745 2,009,745 2,014,849
Fair value
of financial
instruments
Total Carrying
Group Level 1 Level 2 Level 3 Total Level 3 fair value amount
Financial assets
to Cagamas – – – – 1,577,805 1,577,805 1,501,187
357


Fair value hierarchy (continued)
Fair value
of financial
instruments
Total Carrying
Bank Level 1 Level 2 Level 3 Total Level 3 fair value amount
Financial assets
Financial assets at AC – – – – 1,330,502 1,330,502 1,348,844
to Cagamas – – – – 2,044,330 2,044,330 2,001,720
Fair value
of financial
instruments
Total Carrying
Bank Level 1 Level 2 Level 3 Total Level 3 fair value amount
Financial assets
to Cagamas – – – – 1,577,805 1,577,805 1,501,187
358

Unobservable inputs used in measuring fair value
The following tables show the valuation techniques used in the determination of fair values within Level 3, as well as
the key unobservable inputs used in the valuation models.
(a) Financial instruments carried at fair value
Inter-relationship between
Significant significant unobservable
unobservable inputs and fair value
Type Valuation technique inputs measurement
Financial assets Net tangible assets Net tangible assets Higher net tangible assets
measured at FVOCI results in higher fair value
(b) Financial instruments not carried at fair value
The following methods and assumptions are used to estimate the fair values of the following classes of financial
instruments:
(i) Other financial assets at amortised cost
The fair values of securities that are actively traded is determined by quoted mid prices. For non-actively
traded securities, the fair values are estimated using valuation techniques such as discounted cash flows
analysis. Where discounted cash flows technique is used, the estimated future cash flows are discounted
using applicable prevailing market or indicative rates of similar instruments at the reporting date.
(ii) Financing and advances
The fair values of variable rate financing are estimated to approximate their carrying values. For fixed rate
financing, the fair values are estimated based on expected future cash flows of contractual instalment
payments, discounted at applicable and prevailing rates at reporting date offered for similar facilities to new
borrowers with similar credit profiles. In respect of impaired financing, the fair values are deemed to
approximate the carrying values which are net of impairment allowances.
(iii) Subordinated Sukuk Murabahah and Recourse obligations on financing sold to Cagamas
The fair values of subordinated obligations are estimated by discounting the expected future cash flows
using the applicable prevailing profit rates for borrowings with similar risk profiles.
41. CAPITAL COMMITMENTS
Group and Bank
2021 2020
RM’000 RM’000
Property and equipment

Contracted but not provided for in the financial statements 205,214 149,391
359

42. COMMITMENTS AND CONTINGENCIES

(a) Commitment and contingencies
The off-Balance Sheet and counterparties credit risk for the Group and the Bank are as follows:
31 December 2021
Credit Risk
Principal Equivalent Weighted
Amount Amount Asset
Nature of item RM’000 RM’000 RM’000
Credit related exposures

Direct credit substitutes 501,511 501,511 503,088
Transaction related contingent items 903,458 451,729 438,976
Short-term self-liquidating trade related
contingencies 417,940 83,588 83,012
Other commitments, such as formal standby
facilities and credit lines, with an original
maturity of:
– exceeding one year 1,246,592 623,295 503,494
Any commitments that are unconditionally
cancelled at any time by the Bank without prior
notice or that effectively provide for automatic
cancellation due to deterioration in a borrower’s
creditworthiness 8,110,490 – –
11,179,991 1,660,123 1,528,570
Positive Fair
Value of Credit Risk
Principal Derivative Equivalent Weighted
Amount Contracts Amount Asset
RM’000 RM’000 RM’000 RM’000
Derivative Financial Instruments

Foreign exchange related contracts
– less than one year 7,505,850 25,120 114,431 66,277
Profit rate related contracts
– one year to less than five years 79,153 917 2,368 1,735
7,585,003 26,037 116,799 68,012
Total 18,764,994 26,037 1,776,922 1,596,582
360
42. COMMITMENTS AND CONTINGENCIES (CONTINUED)

(a) Commitment and contingencies (continued)
The off-Balance Sheet and counterparties credit risk for the Group and the Bank are as follows: (continued)
31 December 2020
Credit Risk
Principal Equivalent Weighted
Amount Amount Asset
Nature of item RM’000 RM’000 RM’000
Credit related exposures

Short-term self-liquidating trade related
contingencies 592,744 118,549 117,165
Other commitments, such as formal standby
facilities and credit lines, with an original
maturity of:
– exceeding one year 938,247 469,124 362,317
cancelled at any time by the Bank without prior
notice or that effectively provide for automatic
cancellation due to deterioration in a borrower’s
creditworthiness 8,676,980 – –
11,557,018 1,486,949 1,358,389
Positive Fair
Value of Credit Risk
Principal Derivative Equivalent Weighted
Amount Contracts Amount Asset
RM’000 RM’000 RM’000 RM’000

– one year to less than five years 114,056 2,171 5,414 4,045
8,632,478 61,665 148,631 64,632
Total 20,189,496 61,665 1,635,580 1,423,021
361

42. COMMITMENTS AND CONTINGENCIES (CONTINUED)

(b) Contingent liabilities
Perbadanan Harta Intelek Malaysia (“MyIPO” or “Plaintiff”) vide a Writ and Statement of Claim dated 18 October
2021, filed a claim against BIMB Investment Management Berhad (“BIMB Invest” or “First Defendant”), a wholly
owned subsidiary of the Bank and Ahmad Azwan Bin Aboo Mansor (“Second Defendant”)
The Plaintiff has filed a statement of claim that the Defendants are liable for loss and damage caused by
fraudulent misrepresentation, negligence, and breach of statutory duty in respect of placement of monies
amounting to RM85.5 million with the First Defendant upon representation made by Second Defendant.
BIMB Invest had on 8 December 2021 filed a Defense and subsequently, the Reply to Defense by the Plaintiff
was filed on 5 January 2022.
Case Management was fixed on 20 January 2022 and subsequently another Case Management has been fixed
on 22 February 2022 for First Defendant to inform the court on the status of the application for leave proceedings
in the Bankruptcy Court, so as to bring third party proceedings against Second Defendant.
During the Case Management held on 22 February 2022, the Plaintiff's application to serve the Writ and
Statement of Claim on the Second Defendant by way of substituted service was allowed by the Court and the
First Defendant to file and serve the Third Party Notice on the Second Defendant. The next case management
was fixed on 22 March 2022.
The potential liability of BIMB Invest if there was an adverse decision related to the claim is estimated to be
approximately RM71.3 million.
The possible obligation towards BIMB Invest to settle the litigation claim are subject to decision by the court and
as the case are still preliminary, the settlement to the litigation claim may not be probable at this juncture and
therefore no provision is recognised in the financial statements.
43. CAPITAL ADEQUACY

Total capital and capital adequacy ratios of the Group and the Bank have been computed based on Bank Negara
Malaysia (“BNM”)’s Capital Adequacy Framework for Islamic Banks (Capital Components) issued on 9 December 2020
and Capital Adequacy Framework for Islamic Banks (Risk-Weighted Assets) issued on 3 May 2019. The Group and the
Bank is required to meet minimum Common Equity Tier I (“CET I”), Tier I and Total Capital adequacy ratios of 4.5%,
6.0% and 8.0% respectively.
To ensure that banks build up adequate capital buffer outside period of stress, a Capital Conservation Buffer (“CCB”)
of 2.5% above the minimum capital adequacy was introduced by BNM. The CCB is maintained in the form of CET I
Capital above the minimum CET I Capital, Tier I Capital and Total Capital adequacy at 2.5% starting 1 January 2019
onwards.
Therefore, the minimum regulatory capital adequacy ratios requirement for CET I capital ratio, Tier I capital ratio and
Total Capital ratio are 7.0%, 8.5% and 10.5% respectively starting year 2019 onwards. The Group and the Bank have
adopted the Standardised Approach for Credit Risk and Market Risk and the Basic Indicator Approach for Operational
Risk.
362
43. CAPITAL ADEQUACY (CONTINUED)

The capital adequacy ratios of the Group and the Bank are set out below:
Group Bank
2021 2020 2021 2020
Common Equity Tier I

(“CET I”) Capital Ratio 13.179% 14.667% 12.799% 14.642%
Total Capital Ratio 18.561% 19.822% 18.203% 19.804%
The components of CET I, Tier I and Tier II capital:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Paid-up share capital 3,445,757 3,306,118 3,445,757 3,306,118

Retained earnings 2,965,080 2,797,307 2,965,659 2,791,044
Other reserves (10,899) 182,274 (121,843) 182,423
Less:
Deferred tax assets (193,214) (1,511) (191,773) –
Gain on financial instruments classified as FVOCI – (103,564) – (103,564)
Investment in subsidiaries – – (100,905) (15,525)
Total CET I and Tier I Capital 6,206,724 6,180,624 5,996,895 6,160,496
Sukuk Murabahah 2,000,000 1,700,000 2,000,000 1,700,000

Loss provisions ^ 534,465 472,256 532,094 472,005
Total Tier II Capital 2,534,465 2,172,256 2,532,094 2,172,005
Total Capital 8,741,189 8,352,880 8,528,989 8,332,501
^ Impairment allowances on non-impaired financing and regulatory reserve, subject to maximum of 1.25% of total credit risk-weighted
assets less credit absorbed by unrestricted investment accounts.
The breakdown of risk-weighted assets in the various categories of risk-weights are as follows:
Group Bank
2021 2020 2021 2020

RM’000 RM’000 RM’000 RM’000
Credit risk 50,180,739 46,862,577 50,080,971 46,842,825

Less: Credit risk absorbed by unrestricted investment
accounts (7,423,579) (9,082,114) (7,513,437) (9,082,416)
42,757,160 37,780,463 42,567,534 37,760,409

Market risk 489,559 638,925 489,559 638,925
Operational risk 3,847,886 3,719,636 3,797,811 3,675,867
47,094,605 42,139,024 46,854,904 42,075,201
363

44. RELATED PARTY TRANSACTIONS

Identity of related parties
For the purposes of these financial statements, parties are considered to be related to the Group if the Group has
the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial
and operating decisions, or vice versa, or where the Group and the party are subject to common control or common
significant influence. Related parties may be individuals or other entities.
Related parties that have material transactions and their relationship with the Bank are as follows:
Parties Relationship before reorganisation Relationship after reorganisation
Lembaga Tabung Haji Ultimate holding entity Major shareholder*
BIMB Holdings Sdn. Bhd. (formerly Holding company Subsidiaries

known as BIMB Holdings Berhad)
Syarikat Takaful Malaysia Berhad Subsidiary of holding company* Associate company of major
shareholder*
Subsidiaries of Bank Islam Malaysia Subsidiaries Subsidiaries

Berhad as disclosed in Note 13
Associate company of Lembaga Other related companies Other related companies

Tabung Haji
Koperasi Kakitangan Kumpulan BIMB Co-operative society in which the Co-operative society in which the
Holdings Malaysia Berhad employees have interest employees have interest
Related party transactions have been entered into in the normal course of business under normal trade terms.
* Balances are disclosed under other related companies
364
44. RELATED PARTY TRANSACTIONS (CONTINUED)

(a) The related party transactions of the Bank, other than key management personnel compensation, are as follows
(continued):
Transaction amounts for
2021 2020
RM’000 RM’000
Ultimate holding entity

Income
Wakalah fee 108 576
Office rental 48 66
Expenses
Income attributable to depositors 52,357 51,173
Income attributable to investment account holders 8,293 8,823
Finance cost on Subordinated Sukuk Murabahah 2,289 2,348
Office rental 946 1,252
Depreciation of right-of-use assets 9,895 13,193
Profit expense on lease 12,827 17,501
Other rental 266 383
Holding company
Income
Office rental 849 1,038
Others 1 129
Expenses
Income attributable to depositors 10 7
Income attributable to investment account holders 5,240 9,340
Office rental 60 23
365


(a) The related party transactions of the Bank, other than key management personnel compensation, are as follows
(continued):
Transaction amounts for
2021 2020
RM’000 RM’000
Subsidiaries
Income
Fees and commission 5,518 4,602
Office rental 677 382
Others 114 75
Expenses
Fees and commission 5,830 7,365
Income attributable to investment account holders 516 1
Office rental 119 –
Other related companies

Income
Income from financing, advances and others 116 239
Fees and commission income 342 203
Bancatakaful service fee 25,190 25,551
Others 2,240 1,970
Expenses
Income attributable to depositors 30,151 22,111
Income attributable to investment account holders 4,493 908
Finance cost on Subordinated Sukuk Murabahah 856 2,637
Office rental 3,505 3,109
Other rental 82 12
Depreciation of right-of-use assets 3,298 –
Profit expense on lease 4,216 –
Takaful fee 4,607 6,419
Co-operative society in which the employees have interest

Income
Income from financing, advances and others 2,550 2,897
Expenses
Income attributable investment account holders 10 17
Others 1,768 95
The inter-company charges of the Group and the Bank with related parties were mainly transacted in Central
region.
366

(b) The outstanding balances of the Bank with related parties, are as follows:
2021 2020
RM’000 RM’000
Ultimate holding entity

Amount due from
Right-of-use assets – 203,399
Other receivables – 23
Amount due to
Deposits from customers – 3,409,339
Investment account of customers – 200,000
Income payable to depositors – 14,656
Income payable to investment account holders – 1,405
Subordinated Sukuk Murabahah – 85,000
Finance cost payable on Subordinated Sukuk Murabahah – 604
Commitments and contingencies – 2,880
Lease liabilities – 305,465
Other payables – 136
Holding company
Amount due from
Other receivables – 1
Amount due to
Deposits from customers – 315
Investment account of customers – 317,269
Income payable to investment account holders – 729
Other payables – 132
Subsidiaries
Amount due from
Redeemable non-cumulative preference shares 2,417 2,292
Others 854 72
Amount due to
Deposits from customers 23,877 17,306
Investment account of customers 108,369 369
Income payable to investment account holders 330 1
Income payable to depositors 106 97
Other payables 10 12
367


(b) The outstanding balances of the Bank with related parties, are as follows (continued):
2021 2020
RM’000 RM’000
Other related companies

Amount due from
Financing, advances and others 4,002 –
Right-of-use assets 190,206 –
Other receivables 176 150
Amount due to
Deposits from customers 3,411,729 719,894
Investment account of customers 634,768 51,122
Income payable to depositors 26,797 5,603
Income payable to investment account holders 11,307 44
Subordinated Sukuk Murabahah 100,000 –
Finance cost payable on Subordinated Sukuk Murabahah 688 –
Commitments and contingencies 13,216 16,570
Lease liabilities 297,034 –
Co-operative society in which the employees have interest

Amount due from
Amount due to
Deposits from customers 119 119
Investment account of customers 581 569
Income payable to depositors 1 1
Income payable to investment account holders 4 4
368
45. CREDIT TRANSACTIONS AND EXPOSURES WITH CONNECTED PARTIES

Credit exposures with connected parties as per BNM’s revised Guidelines on Credit Transactions and Exposures with
Connected Parties are as follows:
Group and Bank
2021 2020
RM’000 RM’000
Outstanding credit exposures with connected parties 2,132,777 2,411,078
Percentage of outstanding credit exposures to connected parties as a proportion of

total credit exposures 3.24% 3.73%
Percentage of outstanding credit exposures with connected parties which is non-

performing or in default 0.00% 0.00%
The above disclosure on Credit Transaction and Exposures with Connected Parties is presented in accordance with
Para 9.1 of Bank Negara Malaysia’s Revised Guidelines on Credit Transaction and Exposures with Connected Parties.
46. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR

COVID-19 pandemic
The World Health Organisation declared the outbreak of Coronavirus disease (COVID-19) as a global pandemic in
March 2020. The direct and indirect effects of the COVID-19 outbreak have impacted the global economy, markets
and the Group's and the Bank’s counterparties and clients.
The COVID-19 effects have a material negative impact on the Group's and the Bank's results of operations. In
particular, the process to determine expected credit losses (“ECL”) requires numerous estimates and assumptions,
some of which require a high degree of judgement. Changes in the estimates and assumptions can result in
significant changes in ECL. The Group and the Bank are not able to predict the COVID-19’s potential future direct or
indirect effects other than as disclosed in Note 39(b)(iii). However, the Group and the Bank are taking actions to
mitigate the impacts, and will continue to closely monitor the impact and the related risks as they evolve.
Proposed placement, proposed scheme of arrangement (“SOA”), proposed internal reorganisation, proposed
distribution and capital repayment and proposed transfer of listing status (collectively referred to as the
'Proposals')
369

46. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED)

On 11 December 2019, the immediate holding, BIMB Holdings Berhad (“BHB”) had announced and proposed to
undertake the following proposals:
(i) Proposed placement
Proposed placement of new ordinary shares in BHB to raise gross proceeds of up to RM800 million. The
proceeds together with internal cash will be used to fully settle BHB’s outstanding sukuk.
(ii) Proposed scheme of arrangement
Proposed payment to the warrantholder of the outstanding warrants 2013/2023 of BHB by way of a scheme of
arrangement under section 366 of the Companies Act 2016 (“the Act”). The total warrants consideration to be
paid by BHB will be funded using internally generated funds of BHB.
(iii) Proposed Internal Reorganisation
The proposed internal reorganisation entails the disposal of BHB’s entire shareholdings in the identified
subsidiaries namely BIMB Securities (Holdings) Sdn. Bhd., BIMB Securities Sdn. Bhd. and Syarikat Al Ijarah Sdn.
Bhd. to the Bank to be fully settled in cash.
(iv) Proposed distribution and capital repayment
Proposed distribution of the entire shareholdings of BHB in the Bank and Syarikat Takaful Malaysia Keluarga
Berhad (“STMKB”) by way of distribution-in-specie via a reduction and repayment of the entire share capital of
BHB in accordance with Section 115 and Section 116 of the Act as well as using the retained earnings of BHB.
Prior to the proposed distribution and capital repayment, BHB will undergo a capital reduction and the Bank will
undertake a share consolidation. This is to match BHB’s outstanding shares so that the distribution of the Bank
shares will be on a one-for-one basis.
Concurrently with the completion of the proposed distribution and capital repayment, BHB will issue two (2) new
BHB shares to the Bank such that BHB will become a wholly-owned subsidiary of Bank Islam.
(v) Proposed transfer of listing
After the completion of the proposed distribution and capital repayment, the Bank will assume the listing status
of BHB. Accordingly, BHB proposed that the Bank be admitted to the official list of Bursa Securities in place of
BHB, with the listing and quotation of the entire consolidated the Bank shares on the main market of Bursa
Securities.
The Bank will emerge as the first pure-play full-fledged Islamic financial institution to be listed in the region and
enhance its corporate stature. The listing will allows Bank Islam to better position itself in the Islamic finance and
Islamic capital market and capitalise on the growth of both markets in its efforts to expand its customer base.
370

The proposed placement, proposed SOA, proposed internal reorganisation, proposed distribution and capital
repayment and proposed transfer of listing are not conditional upon each other, save for the following:
(i) The proposed distribution and capital repayment is conditional upon the proposed internal reorganisation and
proposed transfer of listing; and
(ii) The proposed transfer of listing is conditional upon the proposed internal reorganisation and proposed
distribution and capital repayment.
BHB has on 10 December 2020 announced that it has received the approval from the Minister of Finance (on the
recommendation of BNM), and BNM in relation to the Proposals.
On 23 February 2021, BHB has announced that it has received approval from Bursa Securities for the listing and
quotation of BHB shares to be issued pursuant to the proposed placements and admission of the Bank to the official
list of Bursa Securities and the listing of and quotation for the entire issued share capital of the Bank on the Main
Market of Bursa Securities pursuant to the proposed transfer of listing.
BHB on 13 April 2021 has announce that it has completed the book building exercise pursuant to the proposed
placement and has raised gross proceeds of RM795.6 million. The proceeds raised together with internal cash of BHB
has been used to fully redeem outstanding sukuk by BHB on 3 June 2021 with total redemption amount of RM988.4
million.
On 27 August 2021, BHB has announced the completion of scheme of arrangement following the payment to the
warrantsholders amounting RM162.15 million.
On 3 September 2021, the Bank has completed a consolidation of its ordinary shares into 2,075,872,514 Bank Islam
shares to match BHB’s outstanding shares in issue so that the distribution of the Bank shares will be on a one-for-
one basis.
No. of
Bank Islam’s
shares
(’000) RM’000
As at the Last Practicable Date (“LPD”) 2,600,367 3,306,118

Consolidated (567,460) –
Allotment of ordinary shares 42,966 139,639
After consolidation 2,075,873 3,445,757
371


The internal reorganisation which entailed the disposal by BHB of its entire shareholdings in BIMB Securities
(Holdings) Sdn. Bhd. (“BIMB SEC HOLDINGS”), BIMB Securities Sdn. Bhd. (“BIMB SEC”) and Syarikat Al Ijarah Sdn. Bhd.
(“SASB”) to the Bank was completed on 13 September 2021 following the payment made by the Bank.
Purchase
consideration
Identified companies Sale shares/% (RM’000)
5,000,000 ordinary shares and

BIMB SEC HOLDINGS 45,000,000 preference shares/100% 37,667
BIMB SEC 49,000,000 ordinary shares/49% 34,909
SASB 10,000,000 ordinary shares/100% 12,804
Total 85,380
The Group has adopted predecessor accounting and only incorporate the acquired entity’s results and statements of
financial position prospectively from the date on which the business combination between entities under common
control occurred. Accordingly, the corresponding amounts for the previous year are also not restated. The differences
between the consideration given and the aggregated carrying amounts of the assets and liabilities (as of the date of
transaction) of the acquired entities are recorded as an adjustment to equity. No additional goodwill/gain on bargain
purchased is recognised.
Transfer of the identified companies are as follows:
BIMB SEC
HOLDINGS BIMB SEC SASB
RM’000 RM’000 RM’000
ASSETS
Cash and short-term funds 16 41,693 105
Deposits and placements with financial institutions 1,342 25,575 –
Financial assets at fair value through profit or loss – 2,048 11,698
Other financial assets at amortised cost – 46,190 –
Current tax assets – 329 –
Right-of-use assets – 541 –
Property and equipment – 1,507 624
TOTAL ASSETS 1,358 117,883 12,427
LIABILITIES
Other liabilities 10 19,933 69
Lease Liabilities – 597 –
Zakat and taxation 1 – 3
TOTAL LIABILITIES 11 20,530 72
Net assets transferred to the Group 1,347 97,353 12,355

Total purchase consideration (37,667) (34,909) (12,804)
Difference between purchase consideration and the net assets
transferred to the Group (as at the date of transaction) recognised in
Equity) (36,320) 62,444 (449)
372

On 7 October 2021, the distribution and capital repayment, was completed following the distribution of BHB’s entire
shareholding in Bank Islam and Syarikat Takaful Malaysia Keluarga Berhad to its shareholders. Concurrently, BHB has
issued two (2) new ordinary shares to Bank Islam such that BHB is now a wholly-owned subsidiary of Bank Islam.
No. of
BHB
shares
(000) RM’000
As at LPD 1,853,651 4,617,787

Issued pursuant to Proposed Placements 222,222 800,000
2,075,873 5,417,787
Cancelled pursuant to the Proposed Distribution and Capital Repayment (2,075,873) (5,417,787)
Issued to Bank Islam * *
* *
* comprising two (2) new ordinary shares
Transfer of BHB as follows;
BHB
RM’000
ASSETS
Cash and short-term funds 28,773
Deposits and placements with financial institutions 50,000
Other financial assets at amortised cost 380
Deferred tax assets 10
Property and equipment 316
TOTAL ASSETS 79,479
LIABILITIES
Other liabilities (6,115)
Zakat and taxation 82
TOTAL LIABILITIES (6,033)
Net assets transferred to the Group 85,512

Difference between transfer consideration and net assets transferred
to the Group recognised in Equity 85,512
On 8 October 2021, the transfer of listing status has been completed following the de-listing of BHB from the Main
Market of Bursa Securities and the listing of and quotation for Bank Islam in its place.
373

47. PRIOR YEAR ADJUSTMENTS

The prior year adjustments are to restate the comparatives of the Translation Reserves and Retained Earnings
balances in relation to foreign exchange differences from prior periods arising from the Bank’s net investment in its
offshore banking operations in the Federal Territory of Labuan which should have been recognised in other
comprehensive income.
The effects of the restatement of the financial statements are summarised below:
As
previously
reported Adjustment Restated
RM’000 RM’000 RM’000
Group
1 January 2020
Translation reserves (106,938) 93,716 (13,222)
Retained earnings 2,594,820 (93,716) 2,501,104
Bank
1 January 2020
Translation reserves (106,805) 93,716 (13,089)
Retained earnings 2,589,798 (93,716) 2,496,082
374
PILLAR 3
DISCLOSURE
OVERVIEW
The Pillar 3 Disclosure for financial year ended 31 December 2021 for Bank Islam Malaysia Berhad (“the Bank”) and its
subsidiaries (“the Group”) describes the risk profile, risk management practices and capital adequacy position in
accordance with the disclosure requirements governed by Bank Negara Malaysia’s (“BNM”) “Capital Adequacy Framework
for Islamic Banks (“CAFIB”) – Disclosure Requirements (“Pillar 3”)”.
The Group adopts the following approaches in determining the capital requirements of Pillar 1 in accordance with BNM’s
Guidelines on CAFIB (Basel II – Risk Weighted Assets (“RWA”)) since January 2008:
•• redit and Market Risk – the Standardised Approach (“SA”); and

C
•• Operational Risk – the Basic Indicator Approach (“BIA”).
Under the Standardised Approach, standard risk weights are used to assess the capital requirements whilst under the
Basic Indicator Approach, the capital requirements are computed based on a fixed percentage over the Group’s average
gross income for a fixed number of quarterly periods.
As required under Pillar 2, the Group has also developed an Internal Capital Adequacy Assessment Process (“ICAAP”)
framework which closely integrates the risk and capital assessment processes and ensures that adequate levels of capital
are maintained to support the Group’s current and projected demand for capital under expected and stressed conditions.
The ICAAP was adopted in 2012 and has been fully implemented since 2013. The ICAAP is updated and approved on an
annual basis by the Management Committee, Board Risk Committee (“BRC”) and Board of Directors (“Board”).
BASIS OF DISCLOSURE
The Pillar 3 Disclosure is prepared in accordance with BNM’s Pillar 3 Disclosure Guidelines issued in July 2010 and the
Group’s internal policy on Pillar 3 Disclosure; which aims to enhance transparency on the risk management practices and
capital adequacy of the Bank and the Group. The disclosures include both qualitative and quantitative disclosures with
respect to capital adequacy, credit risk, market risk, liquidity risk, operational risk, management of Investment Account (IA)
and key aspects of Shariah governance.
Whilst this document discloses the Group’s assets both in terms of exposures and capital requirements, the information
disclosed herein may not be directly comparable with the information in the Full-Year Financial Statements 2021 published
by the Group.
These disclosures have been reviewed and verified by the Group Internal Auditor and attested by the Group Chief
Executive Officer.
MEDIUM AND LOCATION OF DISCLOSURE

The Group’s Pillar 3 Disclosure is made available at www.bankislam.com.
375
PILLAR 3 DISCLOSURE
MINIMUM REGULATORY CAPITAL REQUIREMENTS

The Group’s main activity is Islamic banking business which focuses on retail banking and financing operations. The
following tables show the minimum regulatory capital requirement to support the Group’s and the Bank’s risk weighted
assets.
31.12.2021 31.12.2020
Minimum Minimum
Risk- capital Risk- capital
weighted requirement weighted requirement
assets at 8% assets at 8%
Group RM’000 RM’000 RM’000 RM’000
Credit Risk 50,180,739 4,014,459 46,862,577 3,749,006

Less: Credit Risk absorbed by IA (7,423,579) (593,886) (9,082,114) (726,569)
Market Risk 489,559 39,165 638,925 51,114
Operational Risk 3,847,886 307,831 3,719,636 297,571
Total 47,094,605 3,767,569 42,139,024 3,371,122
31.12.2021 31.12.2020
Minimum Minimum
Risk- capital Risk- capital
weighted requirement weighted requirement
assets at 8% assets at 8%
Bank RM’000 RM’000 RM’000 RM’000
Credit Risk 50,080,971 4,006,478 46,842,825 3,747,426

Less: Credit Risk absorbed by IA (7,513,437) (601,075) (9,082,416) (726,593)
Market Risk 489,559 39,165 638,925 51,114
Operational Risk 3,797,811 303,825 3,675,867 294,069
Total 46,854,904 3,748,393 42,075,201 3,366,016
The Group does not have any capital requirement for Large Exposure Risk as there is no amount in excess of the lowest
threshold arising from equity holdings as specified in BNM’s CAFIB (Risk-Weighted Assets) Guideline.
1. SCOPE OF APPLICATION
The Pillar 3 Disclosure is prepared on a consolidated basis and comprises information on the Bank (including the
offshore banking operations in the Federal Territory of Labuan) and its subsidiaries.
There are no significant restrictions or impediments on the transfer of funds or regulatory capital within the Group.
There were no capital deficiencies in any of the subsidiary companies of the Group as at the financial year end.
376
2. CAPITAL ADEQUACY
2.1 Capital Management
The Group’s primary objectives when managing capital are to maintain a strong capital position to support
business growth and to maintain investors, depositors, customers, and market confidence. In line with this, the
Group manages its capital actively and ensures that the capital adequacy ratios which take into account the risk
profile of the Group, are above the regulatory minimum requirement.
To ensure that the Group has sufficient capital to support all its business and risk-taking activities, the Group has
implemented a sound capital management process in its management systems and processes. A comprehensive
capital management framework has been adopted by the Group as a key enabler for value creation which is
important to the long-term survival of the Group. This comprehensive capital management process includes
thorough risk assessment and risk management techniques that are embedded within the Group’s risk
governance.
The assessment is based on the approved business plan, its estimation of current risks inherent in the Group
and the impact of capital stress tests on the Group’s capital plan. The Group aims to achieve the following capital
management objectives:
•• eeting regulatory capital requirements;

M
•• Optimising returns to shareholders;
•• Maintaining adequate levels and an optimum mix of different sources of capital to support the underlying
risks of its business;
•• Ensuring adequate capital to withstand shocks and stress;
•• Ensuring sufficient capital to expand its business ventures and inorganic growth; and
•• Allocating an appropriate amount of capital to business units to optimise return on capital.
The Group’s capital management is guided by the Capital Management Plan, approved by the Board, to ensure
the management of capital is consistent and aligned with the Group’s Risk Appetite Statement and ICAAP
Document Policy.
The Group’s capital management processes comprise:
•• apital Structuring – ensuring that the amount of regulatory and statutory capital available is consistent with
C
the Group’s growth plan, risk appetite, and desired level of capital adequacy. Capital structuring focuses on
selecting appropriate, most cost-effective mix of capital instruments;
•• Capital Allocation – ensuring that the capital is employed efficiently across the Group based on risk-adjusted
return on capital; and
•• Capital Optimisation – seeking an optimal level of capital by facilitating the optimisation of the risk profile of
the balance sheet. This will be done through:
•• reshaping of the balance sheet;
•• capital planning, allocation and optimisation; and
•• a sound management of the capital buffer.
As such, the four fundamental components of a sound capital planning process include:
•• I nternal control and governance;

•• Capital policy and risk capture;
•• Forward-looking view; and
•• Management framework for preserving capital.
377
PILLAR 3 DISCLOSURE

2.1 Capital Management (continued)
The Group’s Capital Management Plan is updated annually and approved by the Board for implementation at
the beginning of each financial year. The capital plan is drawn up to cover at least a three-year horizon and takes
into account, amongst others, the Group’s strategic objectives and business plans, regulatory capital requirements,
capital benchmarking against the industry, available supply of capital and capital raising options, performance of
business sectors based on a Risk Adjusted Return on Capital (“RAROC”) approach, as well as ICAAP and stress
testing results.
The Group has fully issued Subordinated Sukuk Murabahah under its Subordinated Sukuk Murabahah Programme
of up to RM1.0 billion in nominal value (“Subordinated Sukuk Murabahah Programme”) which was approved by
the Securities Commission Malaysia (“SC”) on 7 October 2014. On 6 September 2018, the Group successfully
lodged with SC under Lodge and Launch Framework a new Sukuk Murabahah Programme of up to RM10.0
billion in nominal value, which allows issuances of Subordinated Sukuk Murabahah and Senior Sukuk Murabahah.
The purpose of the Subordinated Sukuk Murabahah issuance under both programmes is to enhance the capital
adequacy of the Group, in line with the requirements under the Basel III capital framework. Table below depicts
a summary of the Subordinated Sukuk Murabahah under both programmes which are qualified as Tier 2
regulatory capital of the Bank and the Group in accordance with BNM’s CAFIB (Capital Components) Guideline.
Capital
Capital Instrument Component Main Features
1) Subordinated Sukuk Murabahah Programme of up to RM1.0 billion (Programme 1)
a) Tranche 1: RM300 million at 5.75% •• he tenure of both programmes are as follows:

T
•• Issued on 22 April 2015 i. Programme 1 – up to thirty (30) years from the
•• Mature on 22 April 2025 date of the first issue under the Subordinated
Sukuk Murabahah Programme.
Note: Tranche 1 was called on
ii. Programme 2 – perpetual.
22 April 2020
•• The tenure of each issuance of the Subordinated
b) Tranche 2: RM400 million at Sukuk Murabahah under both programmes are as
5.50% follows:
•• I ssued on 15 December 2015 Tier 2 Capital i. Programme 1 – shall be not less than five (5)
•• Mature on 15 December 2025 years and up to thirty (30) years from the issue
Note: Tranche 2 was called on date and provided that the Subordinated Sukuk
15 December 2020 Murabahah matures on or prior to the expiry of
t h e te nure o f t h e S ub o rd in ate d S u k u k
c) Tranche 3: RM300 million at Murabahah Programme.
5.08% ii. Programme 2 – shall be not less than five (5)
•• I ssued on 13 November 2017 years from the issue date.
•• Mature on 12 November 2027
378

2.1 Capital Management (continued)
Capital
Capital Instrument Component Main Features
2) Sukuk Murabahah Programme of up to RM10.0 billion (Programme 2)
a) Tranche 1: RM300 million at 5.15% •• ach of the Subordinated Sukuk Murabahah may
E
have a call option to allow the Bank to redeem the
•• ype: Subordinated Sukuk
T
relevant tranche of the Subordinated Sukuk
Murabahah
Murabahah (in whole or in part) on any periodic
•• Issued on 7 November 2018
profit payment date after a minimum period of five
•• Mature on 7 November 2028
(5) years from the issue date of that tranche, subject
b) Tranche 2: RM400 million at to the relevant early redemption conditions being
3.75% satisfied.
•• ype: Subordinated Sukuk
T •• Unsecured.
Murabahah •• Subordinated Sukuk Murabahah shall be utilised to
•• Issued on 26 March 2020 finance the Bank ’s Islamic banking activities,
•• Mature on 26 March 2030 Tier 2 Capital working capital requirements and other corporate
purposes and/or, if required, to redeem any
c) RM700 million at 3.60%
outstanding Sukuk Murabahah issued under both
•• Type: Subordinated Sukuk
programmes . All utilisation shall be Shariah
Murabahah
Compliant.
•• Issued on 21 October 2020
•• Upon the occurrence of a Non-Viability Event, BNM,
•• Mature on 21 October 2030
jointly with PIDM, shall have the option to require
d) RM300 million at 4.10% the entire or part of the nominal value of the
•• Type: Subordinated Sukuk outstanding Subordinated Sukuk Murabahah, and
Murabahah all other amounts owing under the Subordinated
•• Issued on 12 November 2021 Sukuk Murabahah to be written off.
•• Mature on 12 November 2031 •• No Conversion into Equity.
Total outstanding Subordinated Sukuk Murabahah issued under both programmes which are qualified as Tier 2
regulatory capital of the Bank and the Group as of 31 December 2021 is RM2.0 billion.
2.2 Internal Capital Adequacy Assessment Process (“ICAAP”)

The Group has carried out the internal assessment process on capital as prescribed in BNM’s CAFIB – ICAAP
(“Pillar 2”) to complement its current capital management practices. The first ICAAP Document Policy was
formalised and approved by the Board in March 2013 and is being reviewed on an annual basis. The Group’s
ICAAP helps to suggest the minimum internal capital requirement for its current and future business strategies
and financial plans for the next three (3) years via a comprehensive risk assessment process on its portfolio risk
exposures, its risk management practices towards its material risks and potential capital planning buffer required
in the event of stress.
379
PILLAR 3 DISCLOSURE

2.2 Internal Capital Adequacy Assessment Process (“ICAAP”) (continued)
The Group’s ICAAP is conducted on a consolidated basis covering all the Bank’s legal entities as suggested by
BNM’s Pillar 2 Guideline.
The Group’s ICAAP methodology can be summarised as follows:
INTERNAL CAPITAL PLANNING
Internal
Material Initial Economic Capital
Capital Capital Capital
Risk Capital Capital Stress
Supply Demand Target
Assessment Assessment Definition Test
Ratio
INTERNAL AUDIT INVOLVEMENT
Under ICAAP, the following risk types are identified and measured:
•• isks captured under Pillar 1 (i.e. Credit Risk, Market Risk, and Operational Risk);
R
•• Risk not fully captured under Pillar 1 (e.g. Migration and Residual Risk); and
•• Risk not covered under Pillar 1 (e.g. Credit Concentration Risk, Profit Rate in the Banking Book, Shariah Non-
Compliance Risk, Regulatory/Compliance Risk, Contagion Risk, and IT Risk).
2.3 Stress Testing

Regular stress testing (including reverse stress testing) is performed to assess the Group’s ability to maintain
adequate capital under both normal business cycle and unfavourable economic conditions. The stress testing is
embedded within the risk and capital management process of the Group and is a key function of capital
planning and business planning processes. Stress Testing also plays an important role in:
•• I dentifying the possible events or future changes in the financial and economic conditions of the country and
globally that could potentially have unfavourable effects on the Group’s exposures;
•• Identifying the different portfolios response to changes in key economic variables (profit rate, foreign
exchange rate, GDP, etc);
•• Evaluating the Group’s ability to withstand such changes, i.e. its capacity in terms of its capital and earnings,
to absorb potentially significant losses; and
•• Analysing the Group’s ability to meet the minimum regulatory capital requirement at all times throughout a
reasonably severe economic crisis.
The Group has put in place a stress testing programme (including reverse stress testing) which has taken into
account all risks deemed material to the Group, namely credit risk, market risk, liquidity risk and operational risk
including Shariah non-compliance risk, regulatory compliance risk, contagion risk and IT risk.
In line with the Group’s Stress Testing Policy, ad-hoc and more frequent stress testing has been conducted to
assess the impact of deterioration on specific risk areas, in line with stressed macroeconomic variables. The
impact of COVID-19 pandemic outbreak such as repayment assistance, vulnerable portfolio and liquidity risk to
the Group were assessed to ensure the Group’s ability to maintain adequate capital under stressed condition.
380

2.4 Capital Adequacy Ratios
The Group is required to comply with the Common Equity Tier 1 (“CET 1”) Capital Ratio, Tier 1 Capital Ratio and
Total Capital Ratio (“TCR”) as prescribed by BNM. The Group has been in compliance with all prescribed capital
adequacy ratios throughout the period.
Total capital and capital adequacy ratios of the Group have been computed based on the updated BNM’s CAFIB
- Capital Components Guideline issued on 9 December 2020 and BNM’s CAFIB – RWA Guideline issued on 3 May
2019. The minimum regulatory capital adequacy ratios requirement for CET 1 capital ratio, Tier 1 capital ratio and
TCR including capital buffers i.e., Capital Conservation Buffers (“CCB”) are 7.0%, 8.5% and 10.5% respectively.
The CCB is intended to encourage the build-up of capital buffers by individual Islamic banking institutions during
normal times that can be drawn down during stress periods.
The table below shows the composition of the regulatory capital and capital adequacy ratios as of 31 December
2021, determined by the requirements of the CAFIB. The capital adequacy ratios of the Group and Bank are set
as per below:
(a) The capital adequacy ratios of the Group and of the Bank:
Group Bank
Before effect of IA 31.12.2021 31.12.2020 31.12.2021 31.12.2020
Before deducting proposed dividends

CET 1 Capital Ratio 11.39% 12.07% 11.03% 12.04%
Tier 1 Capital Ratio 11.39% 12.07% 11.03% 12.04%
After deducting proposed dividends

Group Bank
After effect of IA 31.12.2021 31.12.2020 31.12.2021 31.12.2020
Before deducting proposed dividends

After deducting proposed dividends

381
PILLAR 3 DISCLOSURE

2.4 Capital Adequacy Ratios (continued)
(b) CET I, Tier I and Tier II capital components of the Group and of the Bank (continued):
31.12.2021
Group Bank
RM’000 RM’000
Tier I Capital
Paid-up share capital 3,445,757 3,445,757
Share Premium – –
Retained earnings 2,965,080 2,965,659
Other reserves (10,899) (121,843)
Less: Deferred tax assets (193,214) (191,773)
Less: 55% of fair value – –
Less: Regulatory reserve attributable to financing – –
Less: Investment in subsidiaries – (100,905)
Total Common Equity Tier I Capital 6,206,724 5,996,895

Total Additional Tier I Capital – –
Total Tier I Capital 6,206,724 5,996,895

Subordinated Sukuk 2,000,000 2,000,000
Collective assessment allowance ^ 534,465 532,094
Total Tier II Capital 2,534,465 2,532,094
Total Capital 8,741,189 8,528,989
^ Collective assessment allowance on non-impaired financing and regulatory reserve, subject to maximum of 1.25% of total
credit risk-weighted assets after deducting IA as Risk Absorbent.
382

(b) CET 1, Tier I and Tier II capital components of the Group and of the Bank (continued):
31.12.2020
Group Bank
RM’000 RM’000
Tier I Capital
Paid-up share capital 3,306,118 3,306,118
Share Premium – –
Retained earnings 2,797,307 2,791,044
Other reserves 182,274 182,423
Less: Deferred tax assets (1,511) –
Less: 55% of fair value (103,564) (103,564)
Less: Regulatory reserve attributable to financing – –
Less: Investment in subsidiaries – (15,525)
Total Common Equity Tier I Capital 6,180,624 6,160,496

Total Additional Tier I Capital – –
Total Tier I Capital 6,180,624 6,160,496

Subordinated Sukuk 1,700,000 1,700,000
Collective assessment allowance ^ 472,256 472,005
Total Tier II Capital 2,172,256 2,172,005
Total Capital 8,352,880 8,332,501
^ Collective assessment allowance on non-impaired financing and regulatory reserve, subject to maximum of 1.25% of total
credit risk-weighted assets after deducting IA as Risk Absorbent.
383
PILLAR 3 DISCLOSURE

(c) The breakdown of risk-weighted assets by exposures in each major risk category is as follows:
(i) Group
Minimum
Risk- Capital
Gross Net Weighted Requirement
31 December 2021 Exposure Exposure Asset At 8%
Exposure Class RM’000 RM’000 RM’000 RM’000
Credit Risk
On-Balance Sheet Exposures
Sovereign/Central Banks 9,052,249 9,052,249 – –
Public Sector Entities 1,701,095 1,690,995 461,944 36,955
Banks, Developments Financial
Institutions (“DFIs”) and Multilateral
Development Banks (“MDBs”) 1,026,027 1,026,027 206,060 16,485
Corporate 19,388,649 19,013,390 10,336,801 826,944
Regulatory Retail 20,743,307 20,708,120 20,057,433 1,604,595
Residential Mortgages 23,669,331 23,662,639 15,511,861 1,240,949
Higher Risk Assets 3,173 3,173 4,760 381
Other Assets 1,937,277 1,937,277 991,753 79,340
Defaulted Exposures 1,128,766 1,089,559 1,013,545 81,084
Total for On-Balance Sheet Exposures 78,649,874 78,183,429 48,584,157 3,886,733
Off-Balance Sheet Exposures

Credit-related Exposures 1,623,839 1,614,088 1,478,572 118,286
Derivative Financial Instruments 116,795 116,795 68,005 5,440
Defaulted Exposures 36,288 36,278 50,005 4,000
Total for Off-Balance Sheet Exposures 1,776,922 1,767,161 1,596,582 127,726
Total On and Off-Balance Sheet

Exposures 80,426,796 79,950,590 50,180,739 4,014,459
Less: Credit Risk absorbed by IA (7,423,579) (593,886)
Long Short
Position Position
Market Risk
Benchmark Rate Risk 8,792,939 (7,505,740) 1,287,199 99,335 7,947
Foreign Exchange Risk 28,311 (390,224) (361,914) 390,224 31,218
Inventory Risk – – –
Total Market Risk 8,821,250 (7,895,964) 925,285 489,559 39,165
Operational Risk 3,847,886 307,831
Total RWA and Capital

Requirements 47,094,605 3,767,569
Note: As at 31 December 2021, the Group did not have any exposures under securitisation.
384

(c) The breakdown of risk-weighted assets by exposures in each major risk category is as follows
(continued):
(i) Group (continued)
Minimum
Risk- Capital
31 December 2020 Exposure Exposure Asset At 8%
Credit Risk
Development Banks (“MDBs”) 510,976 510,976 103,179 8,254
Corporate 19,584,934 19,226,882 10,505,419 840,434
Other Assets 1,802,897 1,802,897 939,663 75,173


Exposures 75,266,716 74,808,035 46,862,577 3,749,006
Long Short
Position Position
Market Risk
Benchmark Rate Risk 9,461,133 (8,518,693) 942,439 313,417 25,073

Requirements 42,139,024 3,371,122
Note: As at 31 December 2020, the Group did not have any exposures under securitisation.
385
PILLAR 3 DISCLOSURE

(continued):
(ii) Bank
Minimum
Risk- Capital
31 December 2021 Exposure Exposure Asset at 8%
Credit Risk
Development Banks (“MDBs”) 1,007,556 1,007,556 202,366 16,189
Corporate 19,388,649 19,013,389 10,336,801 826,944
Other Assets 1,846,888 1,846,888 895,679 71,654
Defaulted Exposures 1,128,766 1,089,559 1,013,545 81,084


Exposures 80,317,936 79,841,730 50,080,971 4,006,478
Long Short
Position Position
Market Risk
Benchmark Rate Risk 8,792,939 (7,505,740) 1,287,199 99,335 7,947

Requirements 46,854,904 3,748,393
Note: As at 31 December 2021, the Bank did not have any exposures under securitisation.
386

(continued):
(ii) Bank (continued)
Minimum
Risk- Capital
31 December 2020 Exposure Exposure Asset at 8%
Credit Risk
Development Banks (“MDBs”) 510,893 510,893 103,163 8,253
Corporate 19,584,934 19,226,882 10,505,419 840,434
Other Assets 1,786,255 1,786,255 919,927 73,594


Exposures 75,249,991 74,791,311 46,842,824 3,747,426
Long Short
Position Position
Market Risk
Benchmark Rate Risk 9,461,133 (8,518,693) 942,439 313,417 25,073
Inventory Risk – – – – –

Requirements 42,075,201 3,366,016
Note: As at 31 December 2020, the Bank did not have any exposures under securitisation.
387
PILLAR 3 DISCLOSURE
3. RISK MANAGEMENT
3.1 Overview
The Group’s mission with respect to risk management is to advance its risk management capabilities, culture
and practices so as to be in line with internationally accepted standards and practices.
In that regard, the specific objectives of managing risk are to:
•• Inculcate a risk-awareness culture throughout the Group;

•• Establish a standard approach and methodology in managing risks namely credit, market, liquidity,
operational, IT & cyber risk, compliance risks and contagion risk across the Group;
•• Clarify functional structures including objectives, roles and responsibilities;
•• Implement and use a risk management information system that meets the international standards on
confidentiality, integrity and its availability;
•• Develop and use tools, such as economic capital, value at risk, and stress testing to support the measurement
of risks and enhance risk-based decisions;
•• Ensure that risk policies and overall risk appetite are in line with business targets; and
•• Ensure that the Group’s capital can support current and planned business needs in terms of risk exposures.
3.2 Risk Management Functional and Governance Structure

The Group has aligned its organisational responsibilities with the objective of ensuring a common view of risks
across the Group. As a matter of prudence and good governance, the Group’s core risk management functions,
which report to the Board Risk Committee (“BRC”), are independent and segregated from the business divisions
and centralised at head office.
The following illustrates the Group’s governance structure:
Shariah
Supervisory Board of
Council Directors
(SSC)
Board Committees
Board Audit Board IT Board Board Boards

& Examination Committee Strategic & Financing Nomination &
Committee (BITC) Sustainability Review Remuneration Board Risk Committee (BRC)
(BAEC) Committee Committee Committee
(BSSC) (BFRC) (BNRC)
Group Chief
Management Committees
Executive
Officer
Management
Committee
(MANCO)
Sadaqa Management Management Sustainability Financing Bilob Tender Business Management Asset &
House Audit IT Committee Committees Oversight Committee Continuity Risk Control Liability
and Zakat Committee Committee (SC) (UIC,FCA, Committee (TECA/TECB) Management Committee Management
Committee (MAC) (MITC) FCB, RFC) (BOC) Committee (MRCC) Committee
(SHZC) (BCMC) (ALCO)
Rescheduling & Recovery Data Operational

Restructuring Management Management Risk Control
Oversight Committee Committee Committee
Committee (RMC) (DMC) (ORCC)
(R&R)
388
3. RISK MANAGEMENT (CONTINUED)

3.2 Risk Management Functional and Governance Structure (continued)
The Group recognises the fact that the essence of banking and financial services is centred on risk taking
activities. The Group therefore:
•• ecognises that it has to manage risks effectively to achieve its business targets;
R
•• Reaches an optimum level of risk-return in order to maximise stakeholders’ value; and
•• Ensures effective and integrated risk management processes that are commensurate with the size and
complexity of the current and future operations of the Group within its risk appetite and tolerance.
The Group has established the Group Risk Appetite Statement Policy that forms an integral part of the Group’s
strategy and business plans. Risk appetite is an expression of the maximum level of risk that the Group is
prepared to accept in support of a stated strategy, impacting all businesses from a credit, market and operational
risk viewpoint.
4. CREDIT RISK
4.1 Overview
Credit risk is the risk of a customer or counterparty failing to fulfil its financial obligations in accordance with
agreed terms. It arises from all transactions that could lead to actual, contingent or potential claims against any
party, customer or obligor (collectively referred to as counterparties). The types of credit risks that the Group
considers to be material include: Default Risk, Counterparty Risk, Credit Concentration Risk, Residual/Credit
Mitigation Risk and Migration Risk.
4.2 Credit Risk Governance

The management of credit risk is principally carried out by using sets of policies and guidelines approved by the
Management Risk Control Committee (“MRCC”) and/or BRC, guided by the Boards’ approved Group Risk
Appetite Statement Policy.
The Group has several levels of Financing Committees, which assess and approve credits at their specified
authority levels.
MRCC is responsible under the authority delegated by BRC for managing credit risk at strategic level. MRCC
reviews the Group’s credit risk policies and guidelines, aligns credit risk management with business strategies
and planning, reviews credit profile of the credit portfolios and recommends necessary actions to ensure that
the credit risk remains within established risk tolerance levels.
The Group’s credit risk management governance includes the establishment of detailed credit risk policies,
guidelines and procedures which document the Group’s financing standards, discretionary powers for financing
approval, credit risk ratings methodologies and models, acceptable collaterals and valuation, and the review,
rehabilitation and restructuring of problematic and delinquent financing.
389
PILLAR 3 DISCLOSURE
4. CREDIT RISK
4.3 Management of Credit Risk
The management of credit risk is being performed by the Group Credit Management Division (“CMD”) and Group
Risk Management Division (“RMD”) and two other units outside of CMD and RMD domain, namely, Credit
Administration Department and Recovery & Rehabilitation Division. The combined objectives are, amongst
others:
•• o build a high quality credit portfolio which is in line with the Group’s overall strategy and risk appetite;
T
•• To ensure that the Group is compensated for the risk taken, balancing/optimising the risk/return relationship;
•• To develop an increasing ability to recognise, measure and avoid or mitigate potential credit risk problem
areas; and
•• To conform with statutory, regulatory and internal credit requirements.
The Group monitors its credit exposures either on a portfolio basis or individual basis through annual reviews.
Credit risk is proactively monitored through a set of early warning signals that could trigger immediate reviews
of (a certain part of) the portfolio. The affected portfolio or financing is placed on a watchlist to enforce close
monitoring and prevent financing from turning impaired and to increase chances of full recovery.
A detailed limit structure is in place to ensure that risks taken are within the risk appetite as set by the Board
and to avoid credit risk concentration on a single customer, sector, product, etc.
Credit risk arising from dealing and investing activities are managed by the establishment of limits which include
counterparty limits and permissible acquisition of private entities’ instruments, subject to a specified minimum
rating threshold. Furthermore, the dealing and investing activities are monitored by an independent middle
office unit.
4.4 Capital Treatment for Credit Risk

The Group adopts the Standardised Approach to compute the credit risk capital requirement under BNM’s
CAFIB.
390
4. CREDIT RISK (CONTINUED)

4.5 Credit Quality of Gross Financing and Advances
The table below presents the Group’s and the Bank’s gross financing and advances analysed by credit quality:
Group and Bank
31.12.2021 31.12.2020
RM’000 RM’000
Neither past due nor impaired 58,234,986 54,596,595

Past due but not impaired 414,366 628,767
Impaired 568,383 373,234
59,217,735 55,598,596
Gross Impaired Financing as a percentage of Gross Financing and Advances 0.96% 0.67%
(a) Neither Past Due nor Impaired
Financings classified as neither past due nor impaired are financings of which the customers have not
missed contractual payments (profit or principal) when contractually due and are not impaired as there is
no objective evidence of impairment in the financings.
The credit quality of gross financing and advances which are neither past due nor impaired is as follows:
Group and Bank
31.12.2021 31.12.2020
RM’000 RM’000
Excellent to Good 52,111,710 47,226,265

Satisfactory 5,813,008 6,995,181
Fair 310,268 375,149
58,234,986 54,596,595
Internal rating definition:
•• xcellent to Good: Sound financial position of the customer with no difficulty in meeting its obligations.
E
•• Satisfactory: Adequate safety of the customer meeting its current obligations but more time is required
to meet the entire obligations in full.
•• Fair: High risks on payment obligations. Financial performance may continue to deteriorate.
391
PILLAR 3 DISCLOSURE

4.5 Credit Quality of Gross Financing and Advances (continued)
(b) Past Due but Not Impaired
Financings classified as past due but not impaired are financings of which their contractual profit or
principal payments are past due, but the Group and the Bank believe that impairment is not appropriate
on the basis of the level of collateral available and/or the stage of collection amounts owed to the Group
and the Bank.
Analysis of the past due but not impaired financing and advances by ageing:
Group and Bank
31.12.2021 31.12.2020
By ageing RM’000 RM’000

414,366 628,767
Analysis of the past due but not impaired financing and advances by sector:
Group and Bank
31.12.2021 31.12.2020
RM’000 RM’000
Primary agriculture – –
Mining and quarrying – 3,615
Manufacturing (including agro-based) 9,910 761
Electricity, gas and water – –
Wholesale & retail trade, and hotels & restaurants 667 23,195
Construction 342 8,215
Real estate – 136
Finance, insurance and business activities 183 8,228
Education, health and others 27 2,424
Household sectors 377,701 543,823
Other sectors – –
414,366 628,767
392

(c) Impaired Financing and Advances
A financing is classified as impaired when the principal or profit or both are past due for three months or
more, or where a financing is in arrears for less than three months, but the financing exhibits indications of
significant credit weakness.
The financing or group of financings is deemed to be impaired if, and only if, there is objective evidence of
impairment as a result of one or more events that have occurred after the initial recognition of the financing
(a ‘loss event’) and that the loss event has an impact on the estimated future cash flows of the financing or
group of financings that can be reliably estimated.
The Group and the Bank first assess individually whether the objective evidence of impairment exists
individually for financings which are individually significant, and collectively for financings which are not
individually significant. If it is determined that no objective evidence of impairment exists for an individually
assessed financing, the financing is included in a group of financings with similar credit risk characteristic
and collectively assessed for impairment.
If there is objective evidence that an impairment loss has been incurred, the amount of the loss is measured
as the difference between the financing’s carrying amount and the present value of the estimated future
cash flows. The carrying amount of the financing is reduced through the use of an allowance account and
the amount of the loss is recognised in the statement of profit or loss.
Group and Bank
31.12.2021 31.12.2020
Impairment financing by assessment type: RM’000 RM’000
Individually Assessed 423,603 219,160

of which:
Month-in-Arrears 0 268,316 23,780

Month-in-Arrears 3 and above 150,330 171,711
Collectively Assessed 144,780 154,074
568,383 373,234
393
PILLAR 3 DISCLOSURE

(c) Impaired Financing and Advances (continued)
Individual Assessment Allowance Total

Impairment
Collective Allowances
Impaired Individual Net Charge Amounts Individual Assessment for
Financing Assessment for the Written Off/ Assessment Allowance Financing
31 December 2021 at as at Financial Other as at at At
RM‘000 31.12.2021 01.01.2021 Year Movements 31.12.2021 31.12.2021 31.12.2021
Primary Agriculture – – – – – 14,579 14,579

Mining and Quarrying – – – – – 2,887 2,887
Agro-based) 10,307 6,775 1,578 (6,439) 1,914 104,621 106,535
Electricity, Gas and Water – – – – – 43,233 43,233
Wholesale & Retail Trade and
Restaurants & Hotels 76,992 23,765 5,868 (23,116) 6,517 48,216 54,733
Construction 285,246 14,432 187,722 (5,810) 196,344 74,274 270,618
Real Estate – – – – – – –
Transport, Storage and
Communication 15,311 4,567 55 (3,210) 1,412 35,947 37,359
Finance, Insurance and
Business Services 5,932 258 (257) – – 92,613 92,613
Education, Health and Others 1,391 519 (369) – 150 19,286 19,436
Household Sectors 173,204 14,879 482 (745) 14,617 407,356 421,973
Other Sectors – – – – – – –
Total 568,383 65,195 195,079 (39,320) 220,954 843,012 1,063,966
394

(c) Impaired Financing and Advances (continued)
Individual Assessment Allowance Total

Impairment
Collective Allowances
Impaired Individual Net Charge Amounts Individual Assessment for
Financing Assessment for the Written Off/ Assessment Allowance Financing
31 December 2020 at as at Financial Other as at at At
RM‘000 31.12.2020 01.01.2020 Year Movements 31.12.2020 31.12.2020 31.12.2020
Primary Agriculture – – – – – 18,882 18,882

Mining and Quarrying – – – – – 2,411 2,411
Agro-based) 28,329 25,797 (3,555) (15,469) 6,775 32,316 39,091
Electricity, Gas and Water – – – – – 65,708 65,708
Wholesale & Retail Trade and
Restaurants & Hotels 89,812 23,494 3,335 (3,064) 23,765 29,556 53,321
Construction 36,220 11,133 5,358 (2,059) 14,432 89,865 104,297
Real Estate – – – – – – –
Transport, Storage and
Communication 17,801 4,349 218 – 4,567 34,248 38,815
Finance, Insurance and
Business Services 6,140 – 258 – 258 106,156 106,414
Education, Health and Others 3,969 3,676 (1,394) (1,763) 519 15,631 16,150
Household Sectors 190,963 19,598 (3,694) (1,024) 14,879 467,993 482,872
Other Sectors – – – – – – –
Total 373,234 88,047 526 (23,379) 65,195 862,766 927,961
395
PILLAR 3 DISCLOSURE

(d) Gross Financing and Advances – Exposures by Geographical Areas
Of Which:
Past Due
But Not
31 December 2021 Gross Impaired Impaired Individual Collective
RM‘000 Financing Financing Financing Allowances Allowances
Central Region 26,946,146 215,749 395,781 210,034 436,151

Eastern Region 9,368,591 58,516 68,146 10,063 157,554
Northern Region 8,066,342 43,096 74,751 – 93,755
Southern Region 10,247,330 73,033 17,458 857 105,491
East Malaysia Region 4,589,326 23,972 12,247 – 50,061
Grand Total 59,217,735 414,366 568,383 220,954 843,012
Of Which:
Past Due
But Not
31 December 2020 Gross Impaired Impaired Individual Collective
RM‘000 Financing Financing Financing Allowances Allowances
Central Region 25,745,132 326,811 174,617 47,606 496,983

Eastern Region 8,757,468 80,907 86,291 15,481 94,975
Northern Region 7,431,066 93,699 78,220 – 93,343
Southern Region 9,416,361 88,776 19,167 2,108 89,166
East Malaysia Region 4,248,569 38,574 14,939 – 88,299
Grand Total 55,598,596 628,767 373,234 65,195 862,766
396

4.6 Gross Credit Exposures
(a) Geographic Distribution of Credit Exposures
(i) Group
East
Central Eastern Northern Southern Malaysia
31 December 2021 Region Region Region Region Region Total
Exposure Class RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Credit Risk

Sovereign/Central Banks 9,052,249 – – – – 9,052,249
Public Sector Entities 1,128,435 128,848 87,712 329,923 26,177 1,701,095
Institutions and Multilateral
Development Banks 1,025,652 299 – 75 – 1,026,026
Corporate 16,303,740 1,080,165 728,181 1,464,805 783,541 20,360,432
Regulatory Retail 8,208,436 3,790,825 3,296,613 3,285,672 2,244,038 20,825,584
Residential Mortgages 8,764,194 4,344,115 3,924,785 5,174,453 1,536,322 23,743,869
Higher Risk Assets 1,921 438 217 98 668 3,342
Other Assets 1,936,666 – – – 611 1,937,277
Total for On-Balance Sheet Exposures 46,421,293 9,344,690 8,037,508 10,255,026 4,591,357 78,649,874

Credit-related Exposures 1,255,100 81,379 70,193 109,475 143,976 1,660,123
Derivative Financial Instruments 116,799 – – – – 116,799
Total for Off-Balance Sheet Exposures 1,371,899 81,379 70,193 109,475 143,976 1,776,922

Exposures 47,793,192 9,426,069 8,107,701 10,364,501 4,735,333 80,426,796
397
PILLAR 3 DISCLOSURE

4.6 Gross Credit Exposures (continued)
(a) Geographic Distribution of Credit Exposures (continued)
East
Credit Risk

Development Banks 510,556 330 – 90 – 510,976
Corporate 16,313,849 1,058,669 703,735 1,469,709 789,298 20,335,260
Other Assets 1,800,176 – – – 2,721 1,802,897


Exposures 45,181,385 8,795,250 7,452,635 9,541,751 4,295,695 75,266,716
398

(ii) Bank
East
Credit Risk

Development Banks 1,007,181 299 – 75 – 1,007,555
Corporate 16,303,740 1,080,165 728,182 1,464,805 783,541 20,360,433
Other Assets 1,846,277 – – – 611 1,846,888


Exposures 47,684,332 9,426,069 8,107,701 10,364,501 4,735,333 80,317,936
399
PILLAR 3 DISCLOSURE

East
Credit Risk

Development Banks 510,473 330 – 90 – 510,893
Corporate 16,313,849 1,058,669 703,735 1,469,709 789,298 20,335,260
Other Assets 1,783,533 – – – 2,722 1,786,255


Exposures 45,164,659 8,795,250 7,452,635 9,541,751 4,295,696 75,249,991
400
(b) Distribution of Credit Exposures by Sector
(i) Group
Wholesale Finance,
& Retail Insurance Education,
Mining Electricity, Trade and Transport, and Health
Primary and Gas and Restaurant Real Storage & Business and Household Other
31 December 2021 Agriculture Quarrying Manufacturing Water & Hotels Construction Estate Communication Services Others Sector Sectors Total
Exposure Class RM‘000 RM‘000 RM‘000 RM‘000 RM‘000 RM‘000 RM‘000 RM ‘000 RM‘000 RM‘000 RM‘000 RM‘000 RM‘000
Credit Risk
On-Balance Sheet
Exposures
Sovereign/Central
Banks – – – – – – – – 3,789,685 – – 5,262,565 9,052,250
Public Sector Entities 1,162 – – – – 58,695 8,832 – 234,644 1,397,518 244 – 1,701,095
Banks, Developments
and Multilateral
Development Banks – – – – – – – – 943,022 – 374 82,629 1,026,025
Corporate 1,079,683 64,205 966,355 2,793,913 702,350 3,739,417 1,885,932 1,956,311 4,093,785 834,970 143,296 2,100,216 20,360,433
Regulatory Retail 6,426 3,945 52,606 1,023 157,189 103,232 42,637 29,645 81,752 48,037 20,294,212 4,880 20,825,584
Residential Mortgages – – 1,005 – – – – – – – 23,742,863 – 23,743,868
Higher Risk Assets – – – – – – – – – – 3,342 – 3,342
Other Assets – – – – – – – – – – – 1,937,277 1,937,277
Total for On-Balance

Sheet Exposures 1,087,271 68,150 1,019,966 2,794,936 859,539 3,901,344 1,937,401 1,985,956 9,142,888 2,280,525 44,184,331 9,387,567 78,649,874
Off-Balance Sheet
Exposures
Credit-related
Exposures 25,443 7,189 110,873 70,971 103,172 409,607 10,372 89,420 109,493 184,349 381,302 157,932 1,660,123
Derivative Financial
Instruments – – 361 – 24,175 37 – – 27,773 50,613 – 13,840 116,799
Total for Off-Balance

Sheet Exposures 25,443 7,189 111,234 70,971 127,347 409,644 10,372 89,420 137,266 234,962 381,302 171,772 1,776,922
Total On and
Off-Balance Sheet
Exposures 1,112,714 75,339 1,131,200 2,865,907 986,886 4,310,988 1,947,773 2,075,376 9,280,154 2,515,487 44,565,633 9,559,339 80,426,796
401
402
(b) Distribution of Credit Exposures by Sector (continued)
Wholesale Finance,
PILLAR 3 DISCLOSURE
Credit Risk
On-Balance Sheet
Exposures
Sovereign/Central
Banks – – – – – – – – 5,246,069 – – 2,919,864 8,165,933
Public Sector Entities 955 – 112,118 – – 5,019 – – 197,842 1,284,423 283 – 1,600,640
Banks, Developments
and Multilateral
Development Banks – – – – – – – – 358,688 100,010 421 51,857 510,976
Corporate 1,119,668 64,577 1,099,232 3,315,698 660,832 3,539,328 2,015,830 2,024,878 3,869,984 598,072 135,552 1,891,609 20,335,260
Regulatory Retail 1,348 3,086 32,791 866 63,850 62,219 35,318 19,599 72,750 44,918 19,193,791 3,238 19,533,774
Residential Mortgages – 353 523 – – 111 – – – – 21,676,886 – 21,677,873
Other Assets – – – – – – – – – – – 1,802,897 1,802,897

Sheet Exposures 1,121,971 68,016 1,244,664 3,316,564 724,682 3,606,677 2,051,148 2,044,477 9,745,333 2,027,423 41,010,716 6,669,465 73,631,136
Off-Balance Sheet
Exposures
Credit-related
Exposures 25,804 12,986 99,159 58,429 81,990 383,333 64,459 64,311 89,116 177,241 259,166 170,955 1,486,949
Instruments – – 72 – 64,886 600 – – 15,854 37,795 – 29,424 148,631

Sheet Exposures 25,804 12,986 99,231 58,429 146,876 383,933 64,459 64,311 104,970 215,036 259,166 200,379 1,635,580
Total On and
Off-Balance Sheet
Exposures 1,147,775 81,002 1,343,895 3,374,993 871,558 3,990,610 2,115,607 2,108,788 9,850,303 2,242,459 41,269,882 6,869,844 75,266,716
(ii) Bank
Wholesale Finance,
Credit Risk
On-Balance Sheet
Exposures
Sovereign/Central
Banks – – – – – – – – 3,789,685 – – 5,262,565 9,052,250
Public Sector Entities 1,162 – – – – 58,695 8,832 – 234,643 1,397,518 244 – 1,701,094
Banks, Developments
and Multilateral
Development Banks – – – – – – – – 943,023 – 374 64,158 1,007,555
Corporate 1,079,683 64,205 966,355 2,793,913 702,350 3,739,417 1,885,932 1,956,311 4,093,785 834,969 143,296 2,100,216 20,360,432
Regulatory Retail 6,426 3,945 52,606 1,023 157,190 103,232 42,637 29,645 81,752 48,037 20,294,212 4,880 20,825,585
Residential Mortgages – – 1,005 – – – – – – – 23,742,863 – 23,743,868
Other Assets – – – – – – – – – – – 1,846,888 1,846,888

Sheet Exposures 1,087,271 68,150 1,019,966 2,794,936 859,540 3,901,344 1,937,401 1,985,956 9,142,888 2,280,524 44,184,331 9,278,707 78,541,014
Off-Balance Sheet
Exposures
Credit-related
Exposures 25,443 7,189 110,873 70,971 103,172 409,607 10,372 89,420 109,493 184,349 381,302 157,932 1,660,123
Instruments – – 361 – 24,175 37 – – 27,773 50,613 – 13,840 116,799

Sheet Exposures 25,443 7,189 111,234 70,971 127,347 409,644 10,372 89,420 137,266 234,962 381,302 171,772 1,776,922
Total On and
Off-Balance Sheet
Exposures 1,112,714 75,339 1,131,200 2,865,907 986,887 4,310,988 1,947,773 2,075,376 9,280,154 2,515,486 44,565,633 9,450,479 80,317,936
403
404
Wholesale Finance,
PILLAR 3 DISCLOSURE
Credit Risk
On-Balance Sheet
Exposures
Sovereign/Central
Banks – – – – – – – – 5,246,069 – – 2,919,864 8,165,933
Public Sector Entities 955 – 112,118 – – 5,019 – – 197,842 1,284,423 283 – 1,600,640
Banks, Developments
and Multilateral
Development Banks – – – – – – – 358,688 100,010 421 51,774 510,893
Corporate 1,119,668 64,577 1,099,232 3,315,698 660,832 3,539,328 2,015,830 2,024,878 3,869,985 598,072 135,552 1,891,608 20,335,260
Regulatory Retail 1,348 3,086 32,791 866 63,850 62,219 35,318 19,599 72,750 44,918 19,193,791 3,238 19,533,774
Residential Mortgages – 353 523 – – 111 – – – – 21,676,886 – 21,677,873
Other Assets – – – – – – – – – – – 1,786,255 1,786,255

Sheet Exposures 1,121,971 68,016 1,244,664 3,316,564 724,682 3,606,677 2,051,148 2,044,477 9,745,334 2,027,423 41,010,716 6,652,739 73,614,411
Off-Balance Sheet
Exposures –
Credit-related
Exposures 25,805 12,986 99,159 58,429 81,990 383,333 64,458 64,311 89,116 177,241 259,166 170,955 1,486,949
Instruments – – 72 – 64,886 600 – – 15,854 37,795 – 29,424 148,631

Sheet Exposures 25,805 12,986 99,231 58,429 146,876 383,933 64,458 64,311 104,970 215,036 259,166 200,379 1,635,580
Total On and
Off-Balance Sheet
Exposures 1,147,776 81,002 1,343,895 3,374,993 871,558 3,990,610 2,115,606 2,108,788 9,850,304 2,242,459 41,269,882 6,853,118 75,249,991

(c) Residual Contractual Maturity Breakdown
(i) Group
31 December 2021 Up to 1 Year > 1 – 5 Years Over 5 Years Total

Credit Risk
Sovereign/Central Banks 4,574,778 2,811,303 1,666,169 9,052,250
Public Sector Entities 106,851 814,612 779,632 1,701,095
Development Banks 823,210 200,384 2,432 1,026,026
Corporate 5,152,471 6,005,414 9,202,547 20,360,432
Regulatory Retail 134,369 3,018,105 17,673,110 20,825,584
Residential Mortgages 17,442 136,540 23,589,887 23,743,869
Higher Risk Assets – 34 3,307 3,341
Other Assets 457,052 – 1,480,225 1,937,277

Credit-related Exposures 656,789 448,316 555,018 1,660,123
Derivative Financial Instruments 114,431 2,368 – 116,799
Total for Off-Balance Sheet Exposures 771,220 450,684 555,018 1,776,922

Exposures 12,037,393 13,437,076 54,952,327 80,426,796
405
PILLAR 3 DISCLOSURE

(c) Residual Contractual Maturity Breakdown (continued)

Credit Risk
Development Banks 307,302 201,040 2,634 510,976
Corporate 3,418,150 6,616,986 10,300,124 20,335,260
Other Assets 351,256 – 1,451,641 1,802,897


Exposures 9,955,241 12,556,329 52,755,146 75,266,716
406

(c) Residual Contractual Maturity Breakdown (continued)
(ii) Bank

Credit Risk

Development Banks 804,739 200,384 2,432 1,007,555
Corporate 5,152,471 6,005,414 9,202,547 20,360,432
Other Assets 366,663 – 1,480,225 1,846,888


Exposures 11,928,533 13,437,076 54,952,327 80,317,936
407
PILLAR 3 DISCLOSURE

(c) Residual Contractual Maturity Breakdown

Credit Risk

Development Banks 307,219 201,040 2,634 510,893
Corporate 3,418,150 6,616,986 10,300,124 20,335,260
Other Assets 334,615 – 1,451,640 1,786,255


Exposures 9,938,517 12,556,329 52,755,145 75,249,991
4.7 Assignment of Risk Weights for Portfolios Under the Standardised Approach
Under the Standardised Approach, the Group makes use of credit ratings assigned by credit rating agencies in
the calculation of credit risk-weighted assets. The following are the rating agencies or External Credit Assessment
Institutions (“ECAI”) ratings used by the Group and are recognised by BNM as per the CAFIB Guideline:
(a) Standard & Poor’s (“S&P”)

(b) Moody’s Investors Services (“MOODY’S”)
(c) Fitch Ratings (“FITCH”)
(d) Rating Agency Malaysia Berhad (“RAM”)
(e) Malaysian Rating Corporation Berhad (“MARC”)
The ECAI ratings accorded to the following counterparty exposure classes are used in the calculation of risk-
weighted assets for capital adequacy purposes:
(a) Sovereigns and central banks

(b) Banking institutions
(c) Corporates
408

4.7 Assignment of Risk Weights for Portfolios Under the Standardised Approach (continued)
Unrated and Rated Counterparties
As a general rule, the rating specific to the credit exposure is used, i.e. the issue rating. Where no specific rating
exists, the credit rating assigned to the issuer or counterparty of that particular credit exposure is used. In cases
where an exposure has neither an issue nor an issuer rating, it is deemed as unrated or the rating of another
rated obligation of the same counterparty may be used if the exposure is ranked at least pari passu with the
obligation that is rated, as stipulated in the CAFIB Guideline.
Where a counterparty or an exposure is rated by more than one ECAI, the second highest rating is used to
determine the risk weight. In cases where the credit exposures are secured by guarantees issued by eligible or
rated guarantors, the risk weights similar to that of the guarantor are assigned.
The below table summarises the rules governing the assignment of risk weights under the Standardised
Approach:
Rating
Category S & P MOODY’S FITCH RAM MARC
1 AAA to AA- Aaa to Aa3 AAA to AA- AAA to AA3 AAA to AA-
2 A+ to A- A1 to A3 A+ to A- A1 to A3 A+ to A-
3 BBB+ to BBB- Baa1 to Baa3 BBB+ to BBB- BBB1 to BBB3 BBB+ to BBB-
4 BB+ to BB- Ba1 to Ba3 BB+ to BB- BB1 to BB3 BB+ to BB-
5 B+ to B- B1 to B3 B+ to B- B1 to B3 B+ to B-
6 CCC+ and below Caa1 and below CCC+ and below C1 and below C+ and below
The below table summarises risk weight mapping matrix for each credit quality rating category:
Risk Weights Based on Credit Rating of the Counterparty Exposure Class
Banking Institutions
Sovereign and Maturity Maturity Maturity

Rating Category Central Banks Corporate > 6 months <= 6 months <= 3 months
1 0% 20% 20% 20%

2 20% 50% 50% 20%
3 50% 100% 50% 20%
4 100% 100% 100% 50% 20%
5 100% 150% 100% 50%
6 150% 150% 150% 150%
Unrated 100% 100% 50% 20%
Under CAFIB, exposures to and/or guaranteed by the Federal Government of Malaysia and Bank Negara Malaysia
are accorded a preferential sovereign risk weight of 0%.
409
410
The following presents the credit exposures by risk weights after the effect of credit risk mitigation of the Group:
(i) As at 31 December 2021
Exposures After Netting & Credit Risk Mitigation (CRM) Total

Exposures
Sovereigns/ Public Banks, Higher After Total Risk
Central Sector DFIS & Regulatory Residential Risk Other Netting Weighted
Risk Banks Entities MDBS Corporate Retail Mortgages Assets Assets & CRM Asset
PILLAR 3 DISCLOSURE
Weights RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000
0% 9,052,249 826,833 – 3,904,705 196,450 – – 945,524 14,925,761 –

20% – 170,004 1,076,679 3,768,647 97 – – – 5,015,427 1,003,085
35% – – – – – 6,996,669 – – 6,996,669 2,448,834
50% – 547,870 7,322 3,841,980 398,237 5,098,127 – – 9,893,536 4,946,768
75% – – – 571,402 1,120,993 4,575,502 – – 6,267,898 4,700,924
100% – 230,234 – 8,755,974 19,047,746 7,365,935 – 991,753 36,391,642 36,391,642
150% – – – 359,641 28,089 60,084 11,843 – 459,657 689,486
Total
Exposures 9,052,249 1,774,941 1,084,001 21,202,349 20,791,612 24,096,317 11,843 1,937,277 79,950,590 50,180,739
RWA by
Exposures – 538,170 218,997 12,398,706 20,129,762 15,885,585 17,765 991,753 50,180,738
Average
Risk
Weight 0.0% 30.3% 20.2% 58.5% 96.8% 65.9% 150.0% 51.2% 62.8%
Deduction
from
Capital
Base
The following presents the credit exposures by risk weights after the effect of credit risk mitigation of the Group (continued):
(ii) As at 31 December 2020

Exposures
0% 8,165,933 720,449 – 3,434,129 60,926 – – 863,234 13,244,671 –

20% – 204,553 609,193 4,392,176 231 – – – 5,206,153 1,041,231
35% – – – – – 6,319,435 – – 6,319,435 2,211,802
50% – 561,814 5,761 3,860,407 403,363 4,555,665 – – 9,387,010 4,693,505
75% – – – 449,350 1,180,029 6,169,930 – – 7,799,309 5,849,482
100% – 167,431 – 8,693,848 17,817,354 4,802,963 – 939,663 32,421,259 32,421,259
150% – – – 324,094 33,964 59,547 12,594 – 430,199 645,299
Total
Exposures 8,165,933 1,654,247 614,954 21,154,004 19,495,867 21,907,540 12,594 1,802,897 74,808,036 46,862,578
RWA by
Exposures – 489,248 124,719 12,325,640 18,955,049 14,009,366 18,891 939,663 46,862,577
Average
Risk
Weight 0.0% 29.6% 20.3% 58.3% 97.2% 63.9% 150.0% 52.1% 62.6%
Deduction
from
Capital
Base
411
412
The following presents the credit exposures by risk weights after the effect of credit risk mitigation of the Bank:

Exposures
PILLAR 3 DISCLOSURE
0% 9,052,249 826,833 – 3,904,705 196,450 – – 951,209 14,931,446 –

20% – 170,004 1,058,208 3,768,647 97 – – – 4,996,956 999,391
35% – – – – – 6,996,669 – – 6,996,669 2,448,834
50% – 547,870 7,322 3,841,980 398,237 5,098,127 – – 9,893,536 4,946,768
75% – – – 571,402 1,120,993 4,575,502 – – 6,267,898 4,700,924
100% – 230,234 – 8,755,974 19,047,746 7,365,935 – 895,679 36,295,568 36,295,568
150% – – – 359,641 28,089 60,084 11,843 – 459,657 689,486
Total
Exposures 9,052,249 1,774,941 1,065,530 21,202,349 20,791,612 24,096,317 11,843 1,846,888 79,841,730 50,080,971
RWA by
Exposures – 538,170 215,303 12,398,706 20,129,762 15,885,585 17,765 895,679 50,080,970
Average
Risk
Weight 0.0% 30.3% 20.2% 58.5% 96.8% 65.9% 150.0% 48.5% 62.7%
Deduction
from
Capital
Base
The following presents the credit exposures by risk weights after the effect of credit risk mitigation of the Bank (continued):

Exposures
0% 8,165,934 720,449 – 3,434,128 60,926 – – 866,328 13,247,765 –

20% – 204,553 609,110 4,392,176 231 – – – 5,206,070 1,041,214
35% – – – – – 6,319,435 – – 6,319,435 2,211,802
50% – 561,814 5,761 3,860,407 403,363 4,555,665 – – 9,387,010 4,693,505
75% – – – 449,350 1,180,029 6,169,930 – – 7,799,309 5,849,482
100% – 167,431 – 8,693,848 17,817,354 4,802,963 – 919,927 32,401,523 32,401,523
150% – – – 324,094 33,964 59,547 12,594 – 430,199 645,299
Total
Exposures 8,165,934 1,654,247 614,871 21,154,003 19,495,867 21,907,540 12,594 1,786,255 74,791,311 46,842,825
RWA by
Exposures – 489,249 124,703 12,325,640 18,955,049 14,009,366 18,891 919,927 46,842,825
Average
Risk
Weight 0.0% 29.6% 20.3% 58.3% 97.2% 63.9% 150.0% 51.5% 62.6%
Deduction
from
Capital
Base
413
PILLAR 3 DISCLOSURE

4.8 Disclosures of Rated and Unrated Exposures According to Ratings by ECAI
a) Ratings of Sovereigns and Central Banks by Approved ECAIs
Ratings of sovereigns and central banks by approved ECAIS
Moodys Aaa to Aa3 A1 to A3 Baa1 to Baa3 Ba1 to B3 Caa1 to C Unrated

31 December 2021 S&P AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated
Exposure Class Fitch AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated
On and Off Balance-Sheet

Credit Exposures
Sovereign and Central Banks* – 9,052,249 – – – –
Total – 9,052,249 – – – –
Ratings of sovereigns and central banks by approved ECAIS
Moodys Aaa to Aa3 A1 to A3 Baa1 to Baa3 Ba1 to B3 Caa1 to C Unrated

31 December 2020 S&P AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated
Exposure Class Fitch AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated

Credit Exposures
Sovereign and Central Banks* – 8,165,933 – – – –
Total – 8,165,933 – – – –
* These exposures refer to exposures to Federal Government of Malaysia and Bank Negara Malaysia which are accorded a
preferential sovereign risk weight of 0%.
b) Ratings of Corporate by Approved ECAIs
Ratings of corporate by approved ECAIS
Moodys Aaa to Aa3 A1 to A3 Baa1 to Ba3 B+ to C Unrated

S&P AAA to AA- A+ to A- BBB+ to BB- B+ to D Unrated
Fitch AAA to AA- A+ to A- BBB+ to BB- B+ to D Unrated
31 December 2021 RAMs AAA to AA3 A to A3 BBB to BB B to D Unrated
Exposure Class MARC AAA to AA- A+ to A- BBB+ to BB- B+ to D Unrated
On and Off Balance-Sheet Credit Exposures

Public Sector Entities 170,004 – – – 1,604,937
Insurance Cos, Securities Firms & Fund
Manager
Corporate 3,757,659 27,107 77,480 – 17,334,814
Total 3,927,663 27,107 77,480 – 18,939,751
414

4.8 Disclosures of Rated and Unrated Exposures According to Ratings by ECAI (continued)
b) Ratings of Corporate by Approved ECAIs (continued)
Ratings of corporate by approved ECAIS
Moodys Aaa to Aa3 A1 to A3 Baa1 to Ba3 B+ to C Unrated

S&P AAA to AA- A+ to A- BBB+ to BB- B+ to D Unrated
Fitch AAA to AA- A+ to A- BBB+ to BB- B+ to D Unrated
31 December 2020 RAMs AAA to AA3 A to A3 BBB to BB B to D Unrated
Exposure Class MARC AAA to AA- A+ to A- BBB+ to BB- B+ to D Unrated
On and Off Balance-Sheet Credit Exposures

Public Sector Entities 204,552 – – – 1,449,694
Insurance Cos, Securities Firms & Fund
Manager
Corporate 4,069,429 27,707 83,259 – 16,968,321
Total 4,273,981 27,707 83,259 – 18,418,015
c) Ratings of Banking Institutions by Approved ECAIs
Ratings of banking institutions by approved ECAIS
Moodys Aaa to Aa3 A1 to A3 Baa1 to Baa3 Ba1+ to B3 Caa1 to C Unrated

S&P AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated
Fitch AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated
31 December 2021 RAMs AAA to AA3 A1 to A3 BBB1 to BBB3 BB1 to B3 C1 to D Unrated
Exposure Class MARC AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- C+ to D Unrated

Credit Exposures
Banks, MDBs, and DFIs 743,371 151,728 – – – 188,903
Total 743,371 151,728 – – – 188,903
Ratings of banking institutions by approved ECAIS
Moodys Aaa to Aa3 A1 to A3 Baa1 to Baa3 Ba1+ to B3 Caa1 to C Unrated

S&P AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated
Fitch AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- CCC+ to D Unrated
31 December 2020 RAMs AAA to AA3 A1 to A3 BBB1 to BBB3 BB1 to B3 C1 to D Unrated
Exposure Class MARC AAA to AA- A+ to A- BBB+ to BBB- BB+ to B- C+ to D Unrated

Credit Exposures
Banks, MDBs, and DFIs 450,463 5,526 – – – 158,965
Total 450,463 5,526 – – – 158,965
Note: There are no exposures under Short-term ratings for the period under review.
415
PILLAR 3 DISCLOSURE

4.9 Credit Risk Mitigation (CRM)
As a first way out, the assessment of credit when granting a financing facility is based on a particular customer’s
cash flow as the main source of payment and not on the collateral offered. However, the acceptance of tangible
security as collateral would offer a second way out in the event of business failure thereby improving recovery
rates.
The types of collaterals accepted by the Group would have an impact on the calculation of the Group’s capital
adequacy as the quality and the type of collaterals determine whether the Group is able to obtain capital relief
and the extent of such relief. Capital relief is defined as the assignment of a lower or zero risk weight to the
counterparty exposure by setting off or reducing the counterparty exposure against the collateral value.
The main types of collaterals obtained by the Group to mitigate credit risks are as follows:
(a) Cash on lien

(b) Landed property
(c) Shariah compliant quoted shares and unit trusts
(d) Malaysian Federal Government Securities
(e) Rated/Unrated Islamic Securities/Sukuk
(f) Guarantee
The reliance that can be placed on CRM is carefully assessed in light of issues such as compliance with Shariah
rules and principles, legal enforceability, market value and counterparty credit risk of the guarantor. The Group
has put in place policies and procedures which govern the determination of eligibility of various collaterals to
protect the Group’s position from the onset of a customer relationship on the CRM, for instance, in requiring
standard terms and conditions or specifically agreed upon documentation to ensure the legal enforceability of
the credit risk mitigants.
In order to obtain a fair assessment of collateral securing the financing facility, a valuation is performed
periodically ranging from weekly to annually, depending on the type, liquidity and volatility of the collateral value.
In mitigating the counterparty credit risks arising from foreign exchange and derivatives transactions, the Group
enters into master agreements that provide for closeout netting with counterparties, whenever possible. A
master agreement that governs all transactions between the two parties, creates a greater legal certainty that
the netting of outstanding obligations can be enforced upon termination of outstanding transactions if an event
of default occurs.
416

4.9 Credit Risk Mitigation (CRM) (continued)
The Group manages its credit risk concentrations by diversifying its portfolios through several measures. The
Group monitors credit risk limits via, among others, sector limits, programme limits, deviation limits and Single
Counterparty Exposure Limits (SCEL). The following tables disclose the extent to which exposures are covered by
eligible credit risk mitigants.
Disclosure of Credit Risk Mitigation (CRM):
Exposures
covered by
eligible
Exposures financial and
Exposures covered by non-financial
31 December 2021 before CRM guarantees collateral
Exposure class RM’000 RM’000 RM’000

Sovereign/Central Banks 9,052,249 – –
Public Sector Entities 1,701,095 – 10,101
Banks, DFIs and MDBs 1,007,555 – –
Corporates 19,388,649 706,085 1,224,343
Regulatory Retail 20,743,307 194,327 136,111
Residential Mortgages 23,669,331 452 100,983
Higher Risk Assets 3,173 – –
Other Assets 1,846,888 – –
Defaulted Exposures 1,128,766 384,941 69,715
Total for On-Balance Sheet Exposures 78,541,013 1,285,805 1,541,253

Credit-related Exposures 1,623,840 4,805 56,026
Derivative Financial Instruments 116,795 – –
Defaulted Exposures 36,288 4,752 10
Total for Off-Balance Sheet Exposures 1,776,923 9,557 56,036
Total On and Off-Balance Sheet Exposures 80,317,936 1,295,362 1,597,289
417
PILLAR 3 DISCLOSURE

4.9 Credit Risk Mitigation (CRM) (continued)
Disclosure of Credit Risk Mitigation (CRM) (continued):
Exposures
covered by
eligible
Exposures financial and
Exposures covered by non-financial
31 December 2020 before CRM guarantees collateral
Exposure class RM’000 RM’000 RM’000

Sovereign/Central Banks 8,165,933 – –
Public Sector Entities 1,600,640 – 26,565
Banks, DFIs and MDBs 510,893 – –
Corporates 19,584,934 540,901 1,226,255
Regulatory Retail 19,456,153 56,341 100,260
Residential Mortgages 21,610,415 453 100,804
Higher Risk Assets 3,783 – –
Other Assets 1,786,255 – –
Defaulted Exposures 895,405 121,080 81,717
Total for On-Balance Sheet Exposures 73,614,411 718,775 1,535,601

Credit-related Exposures 1,461,127 13,733 10,523
Derivative Financial Instruments 148,631 – –
Defaulted Exposures 25,822 – –
Total for Off-Balance Sheet Exposures 1,635,580 13,733 10,523
Total On and Off-Balance Sheet Exposures 75,249,991 732,508 1,546,124
418

4.10 Off-Balance Sheet and Counterparties Credit Risk for the Group and the Bank
Positive fair
value of Credit Risk
Principal derivative equivalent weighted
amount contracts amount asset
Nature of item RM’000 RM’000 RM’000 RM’000
Credit related Exposures

Assets sold with recourse – – –
Short term self–liquidating trade related
contingencies 417,940 83,588 83,012
Other commitments, such as formal
standby facilities and credit lines, with an
original maturity of:
– not exceeding one year – – –
– exceeding one year 1,246,592 623,295 503,494
Unutilised credit card lines – – –
cancelled at any time by the bank without
prior notice or that effectively provide for
automatic cancellation due to deterioration
in a customer’s creditworthiness 8,110,490 – –
11,179,991 1,660,123 1,528,570

– one year to less than five years
– Five years and above – – – –
– less than one year – – – –
– one year to less than five years 79,153 917 2,368 1,735
– five years and above – – – –
Equity related contracts
– one year to less than five years – – – –
7,585,003 26,037 116,799 68,012
Total 18,764,994 26,037 1,776,922 1,596,582
419
PILLAR 3 DISCLOSURE

4.10 Off-Balance Sheet and Counterparties Credit Risk for the Group and the Bank (continued)
Positive fair
value of Credit Risk
Principal derivative equivalent weighted
amount contracts amount asset
Nature of item RM’000 RM’000 RM’000 RM’000
Credit related Exposures

Assets sold with recourse – – –
Short term self–liquidating trade related
contingencies 592,744 118,549 117,165
Other commitments, such as formal
standby facilities and credit lines, with an
original maturity of:
– not exceeding one year – – –
– exceeding one year 938,247 469,124 362,317
Unutilised credit card lines – – –
cancelled at any time by the bank without
prior notice or that effectively provide for
automatic cancellation due to deterioration
in a customer’s creditworthiness 8,676,980 – –
11,557,018 1,486,949 1,358,389

– one year to less than five years 114,056 2,171 5,414 4,045
– five years and above – – – –
Equity related contracts
8,632,478 61,665 148,631 64,632
Total 20,189,496 61,665 1,635,580 1,423,021
420
5. MARKET RISK
5.1 Overview
All the Group’s financial instruments are subject to the risk that market prices and rates will move, resulting in
profit or losses to the Group. The following are the main market risk factors that the Group is exposed to:
•• rofit Rate Risk: also known as the Rate of Return Risk is the potential impact on the Group’s profitability
P
and capital caused by changes in the rate of return, due to general market movements or issuer/customer
specific reasons;
•• Foreign Exchange Risk: the impact of exchange rate movements on the Group’s currency positions;
•• Equity Investment Risk: the profitability impact on the Group’s equity positions or investments caused by
changes in equity prices or values;
The Group separates the market risk exposures into either trading book or banking book portfolios. Trading book
portfolios include those positions arising from market making, proprietary position taking and other marked-to-
market positions as per the Board approved Trading Book Policy Statements. Banking book portfolios primarily
arise from the Group’s profit rate management of the Group’s asset & liabilities and investment portfolio mainly
for liquidity management.
5.2 Market Risk Governance

The management of market risk is principally carried out by using sets of policies and guidelines approved by
Asset & Liability Committee (“ALCO”) and/or BRC, guided by the Board’s approved Group Risk Appetite Statement
Policy.
ALCO is responsible under the authority delegated by BRC for managing market risk at strategic level.
5.3 Management of Market Risk

The objective is to manage market risk exposures in order to optimise return on risk while maintaining a market
risk profile consistent with the Group’s approved risk appetite.
All market risk exposures are managed by Treasury, who has the necessary skills, tools, management and
governance to manage such risks. The management of market risk is guided by comprehensive limits, policies
and guidelines which are periodically reviewed.
Market Risk Management Department (“MRMD”) is an independent risk control function and is responsible for
ensuring effective implementation of market risk management framework. MRMD is also responsible for
developing and reviewing the Group’s market risk management guidelines and policies, monitoring tools,
behavioural assumptions and limit setting methodologies. Strict escalation procedures are documented and
approved by ALCO and/or BRC. In addition, the market risk exposures and limits are regularly reported to ALCO
and BRC.
Other controls to ensure that market risk exposures remain within tolerable levels include regular stress testing,
ad-hoc simulations, and rigorous new product approval procedures. Stress test results are produced regularly to
determine the impact of changes in profit rates, foreign exchange rates and other risk factors on the Group’s
profitability, capital adequacy and liquidity. The stress test provides the Management and BRC with an
assessment of the financial impact of identified extreme events on the market risk exposures of the Group.
421
PILLAR 3 DISCLOSURE
5. MARKET RISK (CONTINUED)

5.3 Management of Market Risk (continued)
a) Profit rate risk in the banking book portfolio
Profit rate risk in the banking book portfolio is managed and controlled using measurement tools known
as Earnings-at-Risk (“EaR”) and Economic Value of Equity (“EVE”). The Group monitors the sensitivity of EaR
and EVE under varying profit rate scenarios (i.e., simulation modelling). The model is a combination of
standard and non-standard scenarios relevant to the local market. The standard scenarios include the
parallel fall or rise in the profit rate curve and historical simulation. These scenarios assume no management
action. Hence, it does not incorporate actions that would be taken by Treasury to mitigate the impact of the
profit rate risk. In reality, depending on the view on future market movements, Treasury would proactively
manage and strategise to change the profit rate exposure profile to minimise losses and to optimise net
revenues. The Group’s hedging and risk mitigation strategies range from the use of derivative financial
instruments, such as profit rate swaps, to more intricate hedging strategies to address inordinate profit rate
risk exposures.
The table below shows the Group’s and Bank’s profit rate sensitivity to a 1501 basis points parallel shift as at
reporting date.
31 December 2021 31 December 2020

(Decrease)/Increase (Decrease)/Increase
-150bps +150bps -100bps +100bps

Group RM million RM million RM million RM million
Impact on EaR (206.6) 206.6 (131.4) 131.4

Impact on EVE 294.0 (294.0) 241.0 (241.0)

(Decrease)/Increase (Decrease)/Increase
-150bps +150bps -100bps +100bps

Impact on EaR (204.7) 204.7 (131.4) 131.4

Impact on EVE 293.6 (293.6) 240.9 (240.9)
1
Based on BNM’s revised RORBB reporting requirements, the Group’s and the Bank’s reporting were revised from 100bps to
150bps parallel shock effective 1 January 2021.
422

b) Market Risk in the trading book portfolio
Market risk in the trading book portfolio is monitored and managed using Value-at-Risk (“VaR”). It is a
technique that estimates the potential losses that could occur as a result of market rates movements over
a specified time horizon and to a given level of confidence. The VaR model used by the Bank is based on
historical simulation which derives plausible future scenarios from the past series of recorded market rates
and prices. The historical simulation model used by the Bank incorporates the following features:
•• otential market movements are calculated with reference to data from the past two years;
P
•• Historical market rates are calculated with reference to foreign exchange rates and profit rates; and
•• VaR is calculated using a 99 per cent confidence level and for a one-day holding period.
A summary of the VaR position of the Bank’s trading book portfolios as at the reporting date is as follows:
As at 31.12.2021 1.1.2021 to 31.12.2021
Average Maximum Minimum

Profit Rate Risk 0.14 1.05 2.39 0.14

Foreign Exchange Risk 0.36 0.66 1.19 0.34
Overall 0.50 1.71 2.78 0.50
As at 31.12.2020 1.1.2020 to 31.12.2020
Average Maximum Minimum

Profit Rate Risk 2.76 1.88 3.32 0.01

Foreign Exchange Risk 0.42 0.47 1.02 0.23
Overall 3.18 2.36 3.89 0.36
423
PILLAR 3 DISCLOSURE

c) Foreign Exchange Risk
The Bank manages and controls the trading book portfolio’s foreign exchange risk by limiting the net open
exposure to individual currencies and on an aggregate basis. For the Bank-wide (trading and banking
portfolios) foreign exchange risk, the Bank manages and controls by limiting the net open exposure on an
aggregate basis.
Sensitivity Analysis
The Bank has a sensitivity limit for managing the foreign exchange risk in place. The foreign currency
revaluation sensitivity for the Bank as at reporting date is summarised as follows (only net open position for
major currencies are shown in its specific currency in the table below. For other currencies, these exposures
are grouped as “Others”):
-1% +1% -1% +1%

Depreciation Appreciation Depreciation Appreciation
Bank RM’000 RM’000 RM’000 RM’000
US Dollar 12,136 (12,136) 8,844 (8,844)

Euro 4,576 (4,576) 5,072 (5,072)
Others (193) 193 (194) 194
5.4 Capital Treatment for Market Risk

The Group adopts the Standardised Approach to compute the market risk capital requirement under BNM’s
CAFIB.
6. LIQUIDITY RISK
6.1 Overview
Liquidity risk is the risk of adverse impact to the financial condition of the Group, or the soundness of the Group
being adversely affected by an inability (or perceived inability) to meet its contractual obligations. This risk can
arise from mismatches in the timing of cash flows.
The Group maintains a diversified and stable funding base comprising retail and corporate customer deposits.
This is augmented by wholesale funding and highly liquid assets portfolios.
The objectives of the Group’s liquidity management are to ensure that all foreseeable funding commitments and
deposit withdrawals can be met when due and that wholesale market access remains accessible and cost
effective.
Savings accounts, current accounts, investment accounts (IA) and term deposits form a critical part of the
Group’s funding profile and the Group places considerable importance on maintaining their stability. The stability
depends upon preserving depositors’ confidence in the Group and the Group’s capital strength and liquidity, and
on competitive and transparent pricing.
424
6. LIQUIDITY RISK (CONTINUED)

6.1 Overview (continued)
The Group’s liquidity management is primarily carried out in accordance with Bank Negara Malaysia’s
requirements and the internal limits approved by ALCO and/or BRC. The limits vary, taking into account the
depth and liquidity of the market in which the Group operates. The Group maintains a strong liquidity position
and manages the liquidity profile of its assets, liabilities, and commitments to ensure that cash flows are
appropriately balanced, and all obligations are met when due.
The Group’s liquidity management process includes:
•• aily projection of cash flows and ensuring that the Group has sufficient liquidity surplus and reserves to
D
sustain a sudden liquidity shock;
•• Projecting cash flows and considering the level of liquid assets necessary in relation thereto;
•• Maintaining liabilities of appropriate term relative to the asset base;
•• Maintaining a diverse range of funding sources with adequate back-up facilities;
•• Monitoring depositor concentration in order to avoid undue reliance on large individual depositors and ensure
a satisfactory overall funding mix; and
•• Managing the maturities and diversifying funding liabilities across products and counterparties.
6.2 Liquidity Risk Governance

The management of liquidity risk is principally carried out by using sets of policies and guidelines approved by
ALCO and/or BRC, guided by the Board’s approved Group Risk Appetite Statement Policy. ALCO is responsible
under the authority delegated by BRC for managing liquidity risk at strategic level.
6.3 Management of Liquidity Risk

All liquidity risk exposures are managed by Treasury, who has the necessary skills, tools, management and
governance to manage such risks. Limits and triggers are set to meet the following objectives:
•• aintaining sufficient liquidity surplus and reserves to sustain a sudden liquidity shock;
M
•• Ensuring that cash flows are relatively diversified across all maturities;
•• Ensuring that the deposit base is not overly concentrated on a relatively small number of depositors;
•• Maintaining sufficient borrowing capacity in the Interbank market and highly liquid financial assets to back it
up; and
•• Not over-extending financing activities relative to the deposit base.
MRMD is an independent risk control function and is responsible for ensuring efficient implementation of
liquidity risk framework. It is also responsible for developing the Group’s liquidity risk management guidelines,
monitoring tools, behavioural assumptions and limit setting methodologies. Strict escalation procedures are
documented and approved by ALCO and/or BRC, with proper authorities to ratify or approve the excess. In
addition, the liquidity risk exposures and limits are regularly reported to ALCO and BRC.
Stress testing and scenario analysis are important tools used by the Group to manage the liquidity risk. Stress
test results are produced regularly to determine the impact of a sudden liquidity shock. The stress-testing
provides the Management and BRC with an assessment of the financial impact of identified extreme events on
the liquidity and funding risk exposures of the Group.
Another key control feature of the Group’s liquidity risk management is the liquidity contingency management
plans. These plans identify the pre-emptive quantitative and qualitative indicators of stress conditions arising
from systemic or other crises and provide guidance on actions to be taken in order to minimise the adverse
implications to the Group.
425
PILLAR 3 DISCLOSURE
7. OPERATIONAL RISK
7.1 Overview
Operational Risk is defined as the “risk of loss resulting from inadequate or failed internal processes, people and
systems or from external events, which includes legal risk and Shariah non-compliance risk but excludes strategic
and reputational risk”.
It is inherent in all banking products, activities, processes and systems and the effective management of
operational risk has always been a fundamental element of a bank’s risk management programme.
7.2 Operational Risk Governance

The Group’s operational risk management (“ORM”) is guided by its ORM Policy, Guideline and Enterprise-Wide
Risk Management Policy, as well as its Group Risk Appetite Statement Policy which are designed to provide a
sound and well-controlled operational environment within the Group.
BRC is a committee of Board to oversee the Management’s activities in managing risks for the Group, including
operational risk. Its roles, with regard to ORM, include reviewing and recommending ORM Policy, strategies and
risk appetite for Board’s approval.

MRCC, under the authority delegated by BRC is responsible to perform the oversight function and to ensure
effective management of issues relating to operational risk at strategic level. Operational Risk Control Committee
(“ORCC”) which is a sub-committee of MRCC is primarily responsible in ensuring effective implementation and
maintenance of policies, processes, and systems for managing operational risk for the Group.
Notwithstanding the above, the various Business & Support Units (“BU/SU”) are responsible for managing
operational risk within their respective domains on a day-to-day basis and ensuring that their business &
operational activities are carried out within the established ORM policies, guidelines, procedures and limits. To
reinforce accountability and ownership of risk & control at BU/SU level, a Risk Controller (“RC”) for each BU/SU is
appointed and Embedded Risk and Compliance Unit (“ERU”) is established at selected BU/SU to assist in driving
the risk & control programme for the Group.
Ultimately, all staff of the Group are to ensure they properly discharge their day-to-day responsibilities and are
well-equipped with the necessary knowledge including the policies and procedures in executing their job
functions. This is in line with our Risk Management Tagline, i.e., “Managing Risk is Everyone’s Business”.
426
7. OPERATIONAL RISK (CONTINUED)

7.3 Management of Operational Risk
The Group recognises and emphasises the importance of ORM and manages this risk through a control-based
environment where processes are documented, authorisation is independent, transactions are reconciled and
monitored, and business activities are carried out within the established ORM policies, guidelines, procedures,
and limits.
The Group’s overall governance approach in managing operational risk is premised on the Three Lines of Defence
Approach:
a) 1st Line of Defence – The risk owner or risk-taking unit i.e., BU/SU is accountable for putting in place a
robust control environment within their respective units. They are responsible for the day-to-day management
of operational risk. To reinforce accountability and ownership of risk and control within 1st Line of Defence,
the RC is appointed at each BU/SU and ERU is established at selected BU/SU.
2nd Line of Defence – Operational Risk Management Department (“ORMD”) is responsible for establishing
and maintaining the ORM Policy and its supporting guidelines/manuals, developing methodologies and
various ORM tools to facilitate the management of operational risk, monitoring the effectiveness of ORM,
assessing operational risk issues from the risk owner and escalating operational risk issues to the relevant
governance level with recommendations on appropriate risk mitigation strategies. In creating a strong risk
culture, ORMD is also responsible to promote risk awareness across the Group. Shariah Risk Management
Unit (“SRMU”), which forms part of ORMD, is responsible for managing the Shariah non-compliance risk
(“SNCR”) by establishing and maintaining appropriate guidelines on Shariah Risk Management (SRM) by
facilitating the process of identifying, assessing, controlling, and monitoring SNCR and promoting SNCR
awareness.
Group Compliance Division, which includes Shariah Compliance Department and Group Information Security
& Governance Division (“ISGD”) complement the role of ORMD as the 2nd Line of Defence.
Group Compliance Division is responsible for ensuring effective oversight on compliance-related risks such
as regulatory compliance risk, compliance risk, corruption risk, money laundering and terrorism financing
risks through proper classification of risks and developing, reviewing, and enhancing compliance-related
training programmes, as well as conducting trainings that promote awareness creation. Shariah Compliance
Department under Group Compliance Division is responsible for reviewing and monitoring Shariah
compliance of the Group’s operations, activities, and services at BU/SU level.
ISGD is responsible in managing information technology risk by establishing, maintaining, and enforcing
information technology risk policies/guidelines and it works closely with Group Technology Division in
identifying, assessing, mitigating, and monitoring of information technology risk in the Group.
b) 3rd Line of Defence – Group Internal Audit including Shariah Audit Department provides independent
assurance to the Board and senior management on the effectiveness of the ORM and SRM process.
427
PILLAR 3 DISCLOSURE

7.4 ORM Tools & Mitigation Strategies
The Group employs ORM tools comprising proactive and reactive tools which are in line with the best practices
in managing and mitigating operational risks, namely:
Overview of ORM Tools
Proactive Tools Reactive Tools
New Product Risk Loss Event

Risk Control Operational Risk Services Approval Management &
Self-Assessment Key Risk Indicator Review Process Reporting
•• Self-assessment •• A forward- •• End-to-end •• To ensure risks •• Centralised

to identify and looking tool to review of are identified group-wide loss
assess identify activities to and adequate database which
operational risks potential risks identify risks controls are in provides line of
by Risk Owners; and to enable and ensure place prior to business loss
•• The tool creates counter appropriate launching of reporting
ownership and measures and controls are in new product/ overview, tracks
increases risk mitigation place and are services. frequency of
operational risk actions before effective; events and
awareness. an incident •• To ensure facilitates
occurs (early controls are detailed reviews
warning aligned with of the incident
system); RCSA and able and its impact.
•• To assist to mitigate the
management to identified risk.
focus on
high-risk issues.
Risk Analysis & Reporting
•• Analysis and reporting of qualitative and quantitative results from various ORM tools.
Scenario Analysis
•• A systematic and forward-looking tool of obtaining expert opinions to derive new risks, test the efficiency
of existing controls and highlights unexpected risks.
In addition, a comprehensive Business Continuity Management (“BCM”) function has been established within the
Group to ensure that in the event of material disruptions from internal or external events, critical business
functions can be maintained or restored in a timely manner. This ensures minimal adverse impact on customers,
staff and products and services. BCM constitutes an essential component of the Group’s risk management
process by providing a controlled response to potential operational risk that could have a significant impact on
the Group’s critical processes and revenue streams. The Group is also continuously reviewing its critical business
operations’ resilience through regular testing and dependencies assessment on its assets (systems, data, third
parties, facilities, processes and people) in order to ensure it has the required capability and resources to
effectively prepare for different disruption events.
428

7.4 ORM Tools & Mitigation Strategies (continued)
As part of the risk transfer strategy, the Group obtains a 3rd party Takaful coverage to cover for the Group’s high
impact loss events.
The Group also ensures that the group-wide Operational Risk awareness programme is conducted on an
ongoing basis. This training programme emphasises on inculcating an operational risk culture among staff,
effective implementation of ORM tools, fraud awareness, BCM and other aspects of ORM.
7.5 Capital Treatment for Operational Risk

Operational Risk capital charge is calculated using the BIA as per BNM’s CAFIB. The BIA for operational risk
capital charge calculation applies an alpha (15%) to the average of positive gross income that was achieved over
the previous three years by the Group. The RWA amount is computed by multiplying the minimum capital
required with a multiplier of 12.5 (reciprocal of 8%).
8. SHARIAH GOVERNANCE
8.1 Overview
By virtue of BNM’s Shariah Governance Policy Document (“SGPD”), the Group has established a sound and
robust Shariah governance framework with the emphasis placed on the roles of its key functionalities, which
include having in place an effective and responsible Board and Management and an independent Shariah
Supervisory Council (“SSC”) that is supported by strong and competent internal Shariah functions.
As part of the robust Shariah governance framework, to date, the Group has put in place the Shariah Compliance
Policy, Shariah Compliance Guideline, Business Zakat Guideline and Charity Fund Management Guideline. These
help to ensure the Group’s business activities and behaviours are in compliance with Shariah rules and principles,
provisions of the Islamic Financial Services Act (“IFSA”) 2013, BNM’s SGPD and its other rules and regulations, and
the resolutions of BNM and Securities Commission (“SC”)’s Shariah Advisory Council and the SSC.
8.2 Shariah Risk Management

The Group’s Shariah risk management as part of operational risk management is guided by Operational Risk
Management (“ORM”) Policy and Guidelines which set out the high-level framework supporting the Shariah
Compliance Policy and detail out the Shariah risk management processes and tools. The policy and guidelines
serve to provide a consistent group-wide framework for managing SNCR across the Group.
In addition to this, the Risk Loss Event Management and Reporting (‘’RLEMR”) Guideline provides sound
mechanism on Shariah non-compliance (“SNC”) management and reporting, in order to ensure the Group strictly
complies with Shariah rules and principles, as well as the regulatory requirements. The guideline has been
established to be in line with the mechanism set out by BNM’s Operational Risk Reporting Requirement –
Operational Risk Integrated Online Network (“ORION”) and to ensure compliance with section 28(3) of the IFSA
2013 which requires any SNC event to be immediately reported to BNM. Additionally, pursuant to this guideline,
any actual SNC events caused by operational lapses including negligence, breach of policies and lack of due care
by staff may be subject to disciplinary action.
Being part of operational risk, Shariah risk management leverages on the same ORM principles, processes, and
tools. The responsibility of managing SNCR is spearheaded by the Group’s Shariah Risk Management Unit
(“SRMU”). In general, all ORM tools are extended to the process of managing SNCR. However, the tools are
modified to suit the regulatory requirements on Shariah governance in order to provide a robust and consistent
approach in managing SNCR.
429
PILLAR 3 DISCLOSURE
8. SHARIAH GOVERNANCE (CONTINUED)

8.2 Shariah Risk Management (continued)
Extensive and continuous Shariah risk awareness initiatives have been conducted for the Group’s staff and Risk
Controllers (“RC”) to ensure understanding towards Shariah requirements/rulings, effective identification of SNC
risks, establishment of controls to prevent SNC event, and to keep updated on the latest Shariah requirements/
rulings issued by Shariah Division, SSC and regulators, and any occurrence of Shariah non-compliance event. In
the year 2021, 8 Shariah risk awareness sessions were conducted involving all RCs from HQ and branches. In
addition, it is compulsory for all staff to participate in Shariah training via e-Learning as a refresher course.
8.3 Shariah Non-Compliance (“SNC”) Events

An SNC event is a result of the Group’s failure to comply with the Shariah rules and principles as determined by
the Bank’s Shariah Supervisory Council, as well as other relevant body or institution such as the Shariah Advisory
Council of BNM and Securities Commission.
Throughout the year 2021, there were five (5) incidents confirmed as SNC events by the SSC. In brief, the SNC
events were related to non-execution of aqad for deposit-based product, outdated form used for account
opening and incomprehensive product structure for the purpose of vehicle refinancing. None of these events
have financial impact that contributed to SNC Income. To prevent similar recurrence, the Group is continuously
improving its Shariah compliance culture through the issuance of reminders, conducting on-going awareness
trainings, as well as establishing additional controls to ensure compliance with Shariah requirements.
8.4 Shariah Non-Compliant Income
RM41,182.96 RM59,960.47
The main contributors of the SNC income for 2021 were commissions from third party investment product
offering (RM31,728.68) and commissions from SNC merchants of card business (RM9,454.28). The amount was
disposed to charitable causes upon SSC’s approval.
All SNC events and rectification plans were presented and approved by the Board/SSC and reported to BNM in
accordance with the prescribed reporting requirement by the regulator.
9. INVESTMENT ACCOUNT
9.1 Overview
Islamic Financial Services Act 2013 (“IFSA”) distinguishes investment account (IA) from Islamic deposits, where
Shariah contracts that need to be applied for IA products are non-principal guaranteed, while Shariah contracts
for deposit products are principal guaranteed.
In line with the implementation of the IFSA, the Group has developed investment account products based on
Mudarabah and Wakalah contracts.
Mudarabah is a contract between a customer as capital provider and the Group as an entrepreneur under which
the customer provides capital to be managed by the Group and any profit generated is shared according to a
mutually agreed profit-sharing ratio (PSR) whilst financial losses are borne by the customer provided that such
losses are not due to the Group’s misconduct, negligence or breach of specified terms.
430
9. INVESTMENT ACCOUNT (CONTINUED)

9.1 Overview (continued)
Wakalah refers to a contract where a customer, as the principal, authorises the Group as his agent to perform a
particular task on matters that may be delegated i.e., investment, with or without imposition of a fee. In this
context, the Shariah contract applied is Wakalah bi al-istithmar (Wakalah for the purpose of investment).
In terms of offering, the Group currently has the following two categories of IA:
Unrestricted Investment Account (UA) Restricted Investment Account (RA)
Unrestricted Investment Account refers to a type of Restricted Investment Account (RA) refers to an IA
inv e s t m e nt a c c o unt w h e re b y t h e cu s to m e r/ where the IAH provides a specific investment mandate
Investment Account Holder (IAH), without specifying to the Group.
any particular restrictions or conditions, provides the
Group with the mandate to make the ultimate
decision to invest.
IA product is not capital guaranteed and is not protected by the Perbadanan Insurans Deposit Malaysia (PIDM).
Among the risks associated with IA include but not limited to the following:
•• arket risk – the risk arising from the potential impact of adverse price movements on the economic value
M
of an asset.
•• Credit risk – the risk arising from the potential that the Bank fails to meet its obligations to IAH in accordance
with agreed terms and conditions.
•• Liquidity risk – the risk arising from the potential loss for IAH where there are lesser return and possible
capital erosion or loss.
•• Operational risk – the risk arising from the potential loss resulting from inadequate or failed internal processes,
people and systems or external events.
•• Legal risk – IAH should ensure that, in entering into this investment it is not in breach of any laws, regulations,
contractual or any other legal limitations that may apply to investors. This investment is issued subject to all
applicable laws, regulations and guidelines. In the event of change in such laws, regulations or guidelines,
Bank Islam may be obliged to change some or all the terms and conditions of the investment, including the
possibility of an early termination.
•• Shariah non-compliance risk – the risk arising from possible failures to meet the obligation to Shariah
principles or in other words, possible incident of Shariah non-compliances.
431
PILLAR 3 DISCLOSURE

9.2 Governance Structure
To safeguard the IAH’s interest, the investment mandate, strategy and parameter are carried out in accordance
with the Group’s governance set-up. The IA governance structure adopted by the Group is as depicted in the
following diagram:
Shariah Supervisory Council Board of Directors
BOARD
COMMITTEES
Board Risk Committee
MANAGEMENT Management Risk Control

COMMITTEES Committee
Business Units/Investment Account Units
The roles and responsibilities of the above respective committees are as follows:
Committee Responsibility
Board of Directors (Board) Responsible to establish an effective governance arrangement to

facilitate effective monitoring and control of the overall management
and conduct of the IA. The adequacy of the governance arrangement
shall be commensurate with the nature, scale, complexity, and risk
profile associated with the conduct of the IA.
Board Risk Committee (BRC) Assists the Board in performing independent oversight and provides
recommendations in respect of the management, operations, and
performance of the IA, as well as to play the role of Board Investment
Committee.
Shariah Supervisory Council Advises and provides clarification on relevant Shariah rulings,
decisions, or policies on Shariah matters and endorses the terms and
conditions stipulated in IA documentation and ensures that
information published is in compliance with Shariah.
Management Risk Control Committee Assists BRC in performing independent oversight and provides
recommendations in respect of the management, operations and
performance of the IA.
432

9.3 IA Performance
RM’000 RM’000
Gross Exposure: Financing funded by UA RM10,561,600,658.98 RM12,368,896,784.16
% %
Return on Assets (“ROA”) 3.92% 4.42%

Average Net Distributable Income 3.49% 4.06%
Average/Proportion Net Distributable Income Attributable
to the IAH 1.28% 1.93%
Average Profit Sharing Ratio/Return to the IAH 36.68% 47.56%
RM’000 RM’000
Impaired assets/financing funded by UA (bank-wide) 568,382.80 373,233.77

Total allowance for UA 54,648.62 40,354.48
Collective allowance provisions funded by UA NA NA
Individual allowance provisions funded by UA NA NA
433
PILLAR 3 DISCLOSURE
GROUP CHIEF EXECUTIVE OFFICER ATTESTATION

In accordance with Bank Negara Malaysia’s Capital Adequacy Framework for Islamic Bank (CAFIB) Disclosure Requirements
(Pillar 3), I hereby attest that to the best of my knowledge, the disclosures contained in Bank Islam Malaysia Berhad’s Pillar
3 Disclosure report for the financial year ended 31 December 2021 are consistent with the manner in which the Group and
the Bank assesses and manages its risk, and are not misleading in any particular way.
Mohd Muazzam Mohamed

Group Chief Executive, Bank Islam Malaysia Berhad
434
SHAREHOLDINGS’
ANALYSIS
as at 31 March 2022
ANALYSIS OF HOLDINGS (MALAYSIAN & FOREIGN)
NO. OF HOLDERS NO. OF HOLDERS %
SIZE OF HOLDINGS MALAYSIAN FOREIGN MALAYSIAN FOREIGN MALAYSIAN FOREIGN
1-99 664 8 6,964 143 _ _

100-1,000 2,452 35 1,444,309 22,315 0.07 _
1,001-10,000 3,563 63 13,853,818 291,250 0.64 0.01
10,001-100,000 914 63 25,426,363 2,546,063 1.18 0.12
100,001-107,763,454 (*) 291 47 646,862,854 33,532,734 30.01 1.56
107,763,455 AND ABOVE (**) 3 _ 1,431,282,301 _ 66.41 _
DIRECTORS HOLDING _ _ _ _ _ _
TOTAL 7,887 216 2,118,876,609 36,392,505 98.31 1.69
* Less than 5% of issued holdings

** 5% and above of issued holdings
DISTRIBUTION TABLE ACCORDING TO CATEGORY OF HOLDERS
NO. OF HOLDERS NO. OF HOLDERS %
MALAYSIAN MALAYSIAN MALAYSIAN
CATEGORY OF NON- NON- NON-

SHAREHOLDERS BUMIPUTRA BUMIPUTRA FOREIGN BUMIPUTRA BUMIPUTRA FOREIGN BUMIPUTRA BUMIPUTRA FOREIGN
1. INDIVIDUAL 1,916 4,270 75 6,612,838 32,469,308 709,138 0,31 1,51, 0,03

2. BODY CORPORATE
A. BANKS/
FINANCE
COMPANIES 54 1 – 1,448,748,272 5,000 – 67.22 – –
B. INVESTMENTS
TRUSTS/
FOUNDATION/
CHARITIES 1 – – 2,678,140 – – 0.12 – –
C. OTHER TYPES
OF COMPANIES 59 48 2 12,269,336 7,777,669 1,515,190 0.57 0.36 0.07
3. GOVERNMENT 14 – – 55,671,036 – – 2.58 – –
AGENCIES/
INSTITUTIONS
4. NOMINEES 1,035 489 139 81,430,214 471,214,796 34,168,177 3.78 21.86 1.59
5. TRUSTEE _ – – – – – – – –
6. OTHERS _ – – – – – – – –
TOTAL 3,079 4,808 216 1,607,409,836 511,466,773 36,392,505 74.58 23.73 1.69
435
SHAREHOLDINGS’ ANALYSIS
as at 31 March 2022
LIST OF DIRECTORS SHAREHOLDINGS
NO. OF NO. OF
SHARES HELD SHARES HELD
THROUGH THROUGH TOTAL
NAME OF DIRECTOR OWN NAME NOMINEES SHARES %
TAN SRI DR. ISMAIL HAJI BAKAR _ _ _ _

MOHAMED RIDZA MOHAMED ABDULLA – – – –
DATUK NIK MOHD HASYUDEEN YUSOFF – – – –
DATO’ SRI KHAZALI AHMAD – – – –
AZIZAN AHMAD – – – –
MOHD YUZAIDI MOHD YUSOFF – – – –
MASHITAH HAJI OSMAN – – – –
DATO’ SRI AMRIN AWALUDDIN – – – –
MOHD ASRI AWANG – – – –
DATUK BAZLAN OSMAN – – – –
NURAINI ISMAIL – – – –
TOTAL – – – –
LIST OF SUBSTANTIAL SHAREHOLDERS HOLDINGS OF 5% AND ABOVE
NRIC/ TOTAL
No. Name REGN. NO. SHAREHOLDINGS SHAREHOLDINGS %
1. LEMBAGA TABUNG HAJI ACT5351995 1,040,534,000 1,040,534,000 48.28

2. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 199301012273 291,465,101 13.52
EMPLOYEES PROVIDENT FUND BOARD
EMPLOYEES PROVIDENT FUND BOARD 6,563,800 – –
(AMUNDI)
(AM INV)
(CIMB PRIN)
(ASIANISLAMIC)
EMPLOYEES PROVIDENT FUND BOARD 899,900 – –
(RHBISLAMIC)
(F.TEMISLAMIC)
(ABERISLAMIC)
(BNP NAJMAH EQ)
(CPIAM EQ)
(NIAM EQ)
3. AMANAHRAYA TRUSTEES BERHAD 200701008892 142,986,100 142,986,100 6.63
AMANAH SAHAM BUMIPUTERA
TOTAL 1,474,985,201 68.44
436
TOP 30 HOLDERS
TOTAL
NO. NAME SHAREHOLDINGS %
1. LEMBAGA TABUNG HAJI 1,040,534,000 48.28

2. CITIGROUP NOMINEES (TEMPATAN) SDN BHD 247,762,201 11.50
EMPLOYEES PROVIDENT FUND BOARD
3. AMANAHRAYA TRUSTEES BERHAD 142,986,100 6.63
AMANAH SAHAM BUMIPUTERA
4. PERMODALAN NASIONAL BERHAD 93,921,603 4.36
5. KUMPULAN WANG PERSARAAN (DIPERBADANKAN) 66,598,980 3.09
AMANAH SAHAM BUMIPUTERA 2
URUSHARTA JAMAAH SDN BHD (2)
EXEMPT AN FOR AIA BHD
9. MAYBANK NOMINEES (TEMPATAN) SDN BHD 14,303,360 0.66
MTRUSTEE BERHAD FOR PRINCIPAL DALI EQUITY GROWTH FUND (UT-CIMB_DALI)(419455)
10. MAJLIS UGAMA ISLAM SABAH 11,717,299 0.54
AMANAH SAHAM MALAYSIA 3
12. PERTUBUHAN KESELAMATAN SOSIAL 10,514,900 0.49
13. MAJLIS UGAMA ISLAM SABAH 10,421,700 0.48
14. CARTABAN NOMINEES (TEMPATAN) SDN BHD 10,204,330 0.47
PBTB FOR TAKAFULINK DANA EKUITI
15. CITIGROUP NOMINESS (TEMPATAN) SDN BHD 10,079,000 0.47
EMPLOYEES PROVIDENT FUND BOARD (ASIANISLAMIC)
16. AMIN BAITULMAL JOHOR 8,316,000 0.39
AMANAH SAHAM MALAYSIA
18. AMANAHRAYA TRUSTEES BERHAD 0.36
7,716,900
PUBLIC ISLAMIC DIVIDEND FUND
URUSHARTA JAMAAH SDN BHD (AFFIN 2)
20. MAJLIS AGAMA ISLAM SELANGOR 6,573,488 0.30
21. CIMB ISLAMIC NOMINEES (TEMPATAN) SDN BHD 6,571,600 0.30
AFFIN HWANG ASSET MANAGEMENT BERHAD FOR MAJLIS UGAMA ISLAM DAN ADAT
RESAM MELAYU PAHANG
EMPLOYEES PROVIDENT FUND BOARD (AMUNDI)
AC PRINCIPAL DALI ASIA PACIFIC EQUITY GROWTH FUND
EMPLOYEES PROVIDENT FUND BOARD (CIMB PRIN)
25. LEMBAGA TABUNG ANGKATAN TENTERA 6,008,652 0.28
26. HSBC NOMINEES (TEMPATAN) SDN BHD 5,839,500 0.27
HSBC (M) TRUSTEE BHD FOR MANULIFE INVESTMENT SHARIAH PROGRESS FUND
27. HSBC NOMINEES (TEMPATAN) SDN BHD 5,725,400 0.27
HSSBC (M) TRUSTEE BHD FOR ALLIANZ LIFE INSURANCE MALAYSIA BERHAD (MEF)
28. MAJLIS AGAMA ISLAM NEGERI PULAU PINANG 5,544,000 0.26
29. MAJLIS AMANAH RAKYAT 5,544,000 0.26
AMANAH SAHAM BUMIPUTERA 3 - DIDIK
TOTAL 1,835,210,776 85.14
437
PROPERTIES OWNED
BY BIMB GROUP
PROPERTY LISTING
FOR BANK ISLAM MALAYSIA BERHAD
Net Book
Age of Land, Built-up Value as at
Description of Building Area 31.12.2021 Date of
Location Existing Use Tenure (years) (square feet) (RM) Acquisition
HS (D) 80625 Building site Leasehold NA 6,597 11,675,086.13 30.12.1994

PT 45 for 99 years
Lot No. 37, Seksyen 87 expiring on
Jalan Tun Razak 29.12.2093
50750 Kuala Lumpur
No. PT 1708 & 1709 Vacant land Leasehold NA 4,443 57,272.78 03.04.1986
H S (M) 2660 & 2661 for 99 years
Lot No. 1 & 2, Batu 5 1/2 expiring on
Jalan Cheras 02.04.2085
56100 Kuala Lumpur
Lot No. PT 805-HSD 1323 Vacant land Leasehold NA 405,000 533,305.13 25.03.1999
Mukim Bagan Nakhoda for 99 years
Omar, Sabak Bernam expiring on
Selangor 03.02.2101
PROPERTY LISTING
FOR SYARIKAT AL-IJARAH SENDIRIAN BERHAD
Net Book
Age of Land, Built-up Value as at
Description of Building Area 31.12.2021 Date of
Location Existing Use Tenure (years) (square feet) (RM) Acquisition
No. PT Lot 002600 & 002601 4-storey Freehold 36 Lot 002600 - 171 612,477.63 30.09.1985
No.HS (D) 815 & 816 shophouse/ Lot 002601 - 273
No. 71 & 73 office for Bank (square meter)
Jalan Taman Selat Off Islam Operation
Jalan Bagan Luar
12720 Butterworth
Pulau Pinang
438
DIRECTORY OF MAIN AND

REGIONAL OFFICES
CENTRAL
REGION
1 Level 28 2 2 & 4, Jalan 6C/7 3 1st Floor, No. 1
Menara Bank Islam Seksyen 16 Jalan Elektron EU16/E
No. 22, Jalan Perak 43650 Bandar Baru Bangi Seksyen U16, Denai Alam
50450 Kuala Lumpur Selangor 40160 Shah Alam, Selangor
Tel : (6) 03 2688 2745 Tel : (6) 03 8925 8490 / 8491 / 8492 Tel : (6) 03 7831 1395 / 7734 2498 /
Fax : (6) 03 2688 2725 Fax : (6) 03 8925 6168 (6) 03 7831 3481
• MENARA BANK ISLAM • TAMAN TUN DR ISMAIL

KUALA LUMPUR
Tel : (6) 03 2161 0073 / 0076 Tel : (6) 03 7726 5744
• BANDAR TASIK PERMAISURI (6) 03 2166 0797 (6) 03 7728 7894 / 5270
Tel : (6) 03 9171 4818 / 5078 / 7245 Fax : (6) 03 2166 0798 Fax : (6) 03 7722 4539
Fax : (6) 03 9171 7289
• MENARA TM • UIAM, GOMBAK
• BANDAR WAWASAN Tel : (6) 03 2240 2020 / 0296 Tel : (6) 03 6185 3150 / 3262 / 3282
Tel : (6) 03 2694 8175 / 8192 / 8244 Fax : (6) 03 2240 2391 Fax : (6) 03 6185 3402
Fax : (6) 03 2694 8291
• SEMARAK • UNIVERSITI MALAYA
• BUKIT DAMANSARA Tel : (6) 03 2681 0042 / 0049 / 0057 Tel : (6) 03 7960 8934 / 7429 / 6235
Tel : (6) 03 2092 1064 / 1066 / 1067 Fax : (6) 03 2681 0076 Fax : (6) 03 7960 4320
Fax : (6) 03 2092 1072
• SELAYANG • WANGSA MAJU
• JALAN TUN RAZAK Tel : (6) 03 6135 2655 / 2934 Tel : (6) 03 4142 7733 / 7886 / 8204
Tel : (6) 03 2161 1333 / 1340 / 1341 Fax : (6) 03 6137 9199 Fax : (6) 03 4142 8209
Fax : (6) 03 2161 1360 / 2164 8450
• SERI PETALING
• KL SENTRAL Tel : (6) 03 9056 2939 / 2943 / 2969
Tel : (6) 03 2274 9878 / 9899 Fax : (6) 03 9056 2982
(6) 03 2274 9901 / 6430
Fax : (6) 03 2274 9902 / 4324 • TAMAN MELAWATI
Tel : (6) 03 4107 7800 / 6842 / 6852
• MEDAN MARA Fax : (6) 03 4107 7181
Tel : (6) 03 2691 9079 / 9082
(6) 03 2691 9086 / 9088
Fax : (6) 03 2692 1890
439
DIRECTORY OF MAIN AND REGIONAL OFFICES
SELANGOR • KLANG • SRI GOMBAK

Tel : (6) 03 3342 1911 / 1912 / 1913 Tel : (6) 03 6185 9655 / 9667 / 9672
• AMPANG
Fax : (6) 03 3342 1914 Fax : (6) 03 6185 9675
Tel : (6) 03 9200 4389 / 4392 / 4497
Fax : (6) 03 9200 4507
• KOTA DAMANSARA • SUBANG JAYA
Tel : (6) 03 6141 8447 / 8456 / 8465 Tel : (6) 03 8023 2072 / 2087 / 2125
• ARA DAMANSARA
Fax : (6) 03 6141 8474 Fax : (6) 03 8023 2140
Tel : (6) 03 7846 0557 / 1165 / 1347
Fax : (6) 03 7846 1473
• PJ NEW TOWN • SUNGAI BESAR
Tel : (6) 03 7960 4812 / 4813 / 4814 Tel : (6) 03 3224 2886 / 3478
• BANDAR BARU BANGI
Fax : (6) 03 7860 4815 (6) 03 3224 2434 / 2876
Tel : (6) 03 8925 8490 / 8491 / 8492
Fax : (6) 03 3224 3479
Fax : (6) 03 8925 6168
• PUTRA HEIGHTS
Tel : (6) 03 5192 0981 / 1516 / 1532 • SUNGAI BULOH
• BANDAR BOTANIC, KLANG
Fax : (6) 03 5192 1534 Tel : (6) 03 6156 0082 / 0084 / 0086
Tel : (6) 03 3324 7132 / 7623 / 8671
Fax : (6) 03 6156 0085
Fax : (6) 03 3324 8758
• RAWANG
Tel : (6) 03 6091 7652 / 7657 / 7661 • TANJUNG KARANG
• BANDAR KINRARA
Fax : (6) 03 6091 7682 Tel : (6) 03 3269 1090 / 0090
Tel : (6) 03 8079 1601 / 1602 / 1603
Fax : (6) 03 3269 1091
Fax : (6) 03 8079 1604
• SAUJANA UTAMA
Tel : (6) 03 6038 2877 / 3275 / 3308 • UiTM SHAH ALAM
• BANTING
Fax : (6) 03 6038 3384 Tel : (6) 03 5510 4194 / 4196
Tel : (6) 03 3187 3772 / 3181 4772
Fax : (6) 03 5510 4186
Fax : (6) 03 3187 3776
• SECTION 14, PETALING JAYA
Tel : (6) 03 7957 3131 / 3834
• BUKIT JELUTONG
Fax : (6) 03 7957 4141 WILAYAH PERSEKUTUAN
Tel : (6) 03 7847 3710 / 3711 / 3712
Fax : (6) 03 7847 3714 • PUTRAJAYA
• SECTION 18, SHAH ALAM
Tel : (6) 03 8889 3192 / 3193 / 3194
Tel : (6) 03 5541 0250 / 0255
• CYBERJAYA Fax : (6) 03 8889 3189
Fax : (6) 03 5541 0259
Tel : (6) 03 8319 3491 / 3492 / 3493
Fax : (6) 03 8319 3494 • IFiC PUTRAJAYA
• SEMENYIH
Tel : (6) 03 8861 3698 / 2824
Tel : (6) 03 8723 4624 / 4629 / 4630
• DENAI ALAM Fax : (6) 03 8861 2673
Fax : (6) 03 8723 4631
Tel : (6) 03 7734 0726 / 1750 / 1846
Fax : (6) 03 7734 5602
• SETIA ALAM
Tel : (6) 03 3358 1359 / 8413 / 7347
• KAJANG
Fax : (6) 03 3362 3216
Tel : (6) 03 8736 0798 / 1773 / 2185
Fax : (6) 03 8736 2362
• SHAH ALAM
Tel : (6) 03 5510 1481 / 1492 / 4509
• KELANA JAYA
Fax : (6) 03 5510 1497
Tel : (6) 03 7806 2955 / 2946
(6) 03 7803 8190
Fax : (6) 03 7806 1214
440
NORTHERN
REGION
1 1st Floor, No. 3009 2 1st Floor, 21 & 23
Bangunan KWSP Seberang Jaya Jalan Taman Meru
Lebuh Tenggiri 2 Utama A1
13700 Seberang Jaya Medan Meru Utama
Pulau Pinang Meru Raya, 30020 Ipoh, Perak
Tel : (6) 04 382 9100 Tel : (6) 05 527 7701
Fax : (6) 04 382 9166 Fax : (6) 05 527 7706
PERLIS • KODIANG • SUNGAI LIMAU, YAN

Tel : (6) 04 925 0397 / 0100 / 0208 Tel : (6) 04 769 1017
• KANGAR
Fax : (6) 04 925 0215 Fax : (6) 04 768 1042
Tel : (6) 04 970 5525 / 5535
Fax : (6) 04 970 5565
• KULIM • SUNGAI PETANI
Tel : (6) 04 403 3300 / 3003 / 3976 Tel : (6) 04 422 0620 / 0621 / 0622
Fax : (6) 04 403 3977 (6) 04 423 8752
KEDAH
Fax : (6) 04 421 3912
• ALOR SETAR • LANGKAWI
Tel : (6) 04 733 5126 / 5136 Tel : (6) 04 966 2463 / 2464 / 2466 • SUNGAI PETANI 2
(6) 04 731 9813 (6) 04 966 5191 Tel : (6) 04 422 0061 / 0062 / 0063
Fax : (6) 04 733 5128 Fax : (6) 04 966 2469 Fax : (6) 04 422 0064
• BALING • ALOR SETAR 2 • UNIVERSITI UTARA MALAYSIA

Tel : (6) 04 470 1678 / 7052 (PERSIARAN SULTAN ADDUL Tel : (6) 04 924 6271 / 6272 / 6273
Fax : (6) 04 470 1679 HAMID) Fax : (6) 04 924 6270
Tel : (6) 04 772 8800 / 5818
• GUAR CHEMPEDAK (6) 04 771 6575
Tel : (6) 04 468 0880 / 4827 / 4829 Fax : (6) 04 772 8100
(6) 04 468 4830
Fax : (6) 04 468 0884 • POKOK SENA
Tel : (6) 04 782 1033 / 1034
• JITRA Fax : (6) 04 782 1022
Tel : (6) 04 917 4404 / 1151
Fax : (6) 04 917 4225 • SIK
Tel : (6) 04 469 2124 / 2127 / 2157
Fax : (6) 04 469 2142
441
PULAU PINANG PERAK
• BANDAR BARU PERDA • BAGAN SERAI

Tel : (6) 04 540 3150 / 3151 / 3153 Tel : (6) 05 721 8509 / 8513 / 8512
Fax : (6) 04 540 3152 Fax : (6) 05 721 8515
• BAYAN BARU • IPOH

Tel : (6) 04 642 5094 / 5095 / 5096 Tel : (6) 05 255 3866 / 3867 / 3868
(6) 04 642 5097 Fax : (6) 05 253 5760
Fax : (6) 04 642 5098
• MERU RAYA
• BUTTERWORTH Tel : (6) 05 527 7701 / 7702 / 7703
Tel : (6) 04 331 2357 / 2358 Fax : (6) 05 527 7706
(6) 04 332 1301 / 1317
Fax : (6) 04 331 2360 • PARIT BUNTAR
Tel : (6) 05 716 4493 / 4494
• GEORGETOWN Fax : (6) 05 716 4495
Tel : (6) 04 262 4724 / 4933 / 5019
(6) 04 262 0626 • SERI ISKANDAR
Fax : (6) 04 262 2594 Tel : (6) 05 371 6020 / 6021 / 6022
Fax : (6) 05 371 6023
• KEPALA BATAS
Tel : (6) 04 575 5517 / 5579 / 3376 • SRI MANJUNG
Fax : (6) 04 575 3986 Tel : (6) 05 688 1227 / 9071
Fax : (6) 05 688 1672
• TAIPING
Tel : (6) 05 806 5441 / 5442 / 5443
Fax : (6) 05 806 5436
• TANJUNG MALIM
Tel : (6) 05 459 8237 / 5127 / 5125
Fax : (6) 05 459 8241
• TELUK INTAN
Tel : (6) 05 622 1700 / 1200 / 1411
Fax : (6) 05 622 1489
442
EASTERN
REGION
1 No. 8033, 2nd Floor 2 2nd Floor 3 3rd & 4th Floor, Lot 35308
Bandar Satelit Pasir Tumboh Putra Square Branch Dataran Austin Gong Badak
16150 Kota Bharu 25200 Kuantan Mukim Kuala Nerus
Kelantan Pahang 20200 Kuala Terengganu
Tel : (6) 09 764 3840 / 3850 / 3854 Tel : (6) 09 517 3452 / 3491 / 3584 Terengganu
Fax : (6) 09 764 3870 Fax : (6) 09 517 3605 Tel : (6) 09 667 2426 / 2427 / 2428
Fax : (6) 09 667 2429
KELANTAN • TANAH MERAH • PUTRA SQUARE

Tel : (6) 09 955 8341 / 2341 Tel : (6) 09 517 3225 / 3229 / 3231
• BANDAR BARU TUNJUNG
Fax : (6) 09 955 8342 Fax : (6) 09 517 3235
Tel : (6) 09 743 0190 / 0192 / 0193
Fax : (6) 09 743 0194
• PADANG GARONG • RAUB
Tel : (6) 09 747 1867 / 9313 / 9317 Tel : (6) 09 355 8300 / 8301
• GUA MUSANG
Fax : (6) 09 747 1902 Fax : (6) 09 355 8302
Tel : (6) 09 912 2003
Fax : (6) 09 912 1772
• WAKAF BHARU • TEMERLOH
Tel : (6) 09 719 8444 / 8445 / 8446 Tel : (6) 09 296 5301 / 3222 / 1416
• KOTA BHARU
Fax : (6) 09 719 8447 Fax : (6) 09 296 5300
Tel : (6) 09 741 9222 / 9333 / 9555
(6) 09 743 8825
Fax : (6) 09 743 8826
PAHANG TERENGGANU
• KUALA KRAI • BANDAR MUADZAM SHAH • CHUKAI
Tel : (6) 09 966 4627 / 3002 / 3008 Tel : (6) 09 452 3175 / 5175 / 5176 Tel : (6) 09 859 9999 / 9977
Fax : (6) 09 966 4651 Fax : (6) 09 452 3177 Fax : (6) 09 858 1675
• KUBANG KERIAN • JENGKA • DUNGUN

Tel : (6) 09 764 0058 / 0070 / 0071 Tel : (6) 09 466 2890 / 2871 / 4837 Tel : (6) 09 848 5498
Fax : (6) 09 764 0057 (6) 09 466 4153 (6) 09 845 3302 / 3055
Fax : (6) 09 466 2891 Fax : (6) 09 848 5502
• MACHANG
Tel : (6) 09 975 2800 / 1490 • JERANTUT • JALAN PADANG HILIRAN
Fax : (6) 09 975 2900 Tel : (6) 09 266 6120 / 6121 / 9096 Tel : (6) 09 631 3533 / 8354 / 8355
(6) 09 266 9380 / 9381 Fax : (6) 09 631 3633
• PASIR MAS Fax : (6) 09 266 6380
Tel : (6) 09 790 0750 / 0751 • JERTEH
Fax : (6) 09 790 0752 • KUALA ROMPIN Tel : (6) 09 697 3388 / 1672 / 1673
Tel : (6) 09 414 6064 / 6065 / 6068 Fax : (6) 09 697 1592
• PASIR PUTEH Fax : (6) 09 414 6074
Tel : (6) 09 786 0061 / 0062 / 0063 • KUALA TERENGGANU
Fax : (6) 09 786 0068 • KUANTAN Tel : (6) 09 622 4730 / 4744 / 4754
Tel : (6) 09 513 3366 / 3367 / 3368 (6) 09 622 4780
• PASIR TUMBOH Fax : (6) 09 513 3369 (6) 09 623 4537
Tel : (6) 09 764 4077 Fax : (6) 09 623 3944
Fax : (6) 09 764 6077 • PEKAN
Tel : (6) 09 422 8622 / 8922 • KUALA NERUS
Fax : (6) 09 422 8818 Tel : (6) 09 667 1700 / 1702 / 1703
Fax : (6) 09 667 1705
443
SOUTHERN
REGION
1 15th Floor, Menara TH 2 JC 526 & 527, Tingkat 1
Jalan Ayer Molek Jalan Bestari 5
80000 Johor Bahru 77200 Jasin
Johor Melaka
Tel : (6) 07 225 8800 Tel : (6) 06 529 4402 / 4403
Fax : (6) 07 225 8901 Fax : (6) 06 529 4370
JOHOR • MUAR • JASIN

Tel : (6) 06 952 8301 / 8302 / 8303 Tel : (6) 06 529 5301 / 5302 / 5303
• AUSTIN HEIGHT
Fax : (6) 06 952 8304 Fax : (6) 06 529 5312
Tel : (6) 07 364 3070 / 3081 / 3293
Fax : (6) 07 364 3839
• PASIR GUDANG • MASJID TANAH
Tel : (6) 07 252 6671 / 6672 / 6673 Tel : (6) 06 384 5108 / 8340 / 8332
• BANDAR PENAWAR
Fax : (6) 07 252 6676 Fax : (6) 06 384 5109
Tel : (6) 07 822 2802 / 2803 / 2804
Fax : (6) 07 822 2806
• PONTIAN
Tel : (6) 07 688 1909 / 2259 NEGERI SEMBILAN
• BATU PAHAT
(6) 07 686 5666
Tel : (6) 07 431 9350 / 9352 / 8927 • KUALA PILAH
Fax : (6) 07 688 3660
Fax : (6) 07 431 9351 Tel : (6) 06 481 4600 / 8482
• SEGAMAT Fax : (6) 06 481 1431
• IFSC JOHOR BAHRU
Tel : (6) 07 932 4257 / 2901 / 2862
Tel : (6) 07 223 7030 / 7031 • NILAI
(6) 07 932 2873
Fax : (6) 07 223 7032 Tel : (6) 06 799 0549 / 0277 / 6124
Fax : (6) 07 932 4273
Fax : (6) 06 799 6217
• JOHOR BAHRU
• TAMAN BUKIT INDAH
Tel : (6) 07 224 0242 / 0244 / 0272 • PORT DICKSON
Tel : (6) 07 239 5977 / 5978 / 5979
Fax : (6) 07 224 0243 Tel : (6) 06 647 4330
Fax : (6) 07 239 5980
(6) 06 646 3281
• KLUANG Fax : (6) 06 647 5657
• TAMPOI
Tel : (6) 07 772 6423 / 6417 / 6878
Tel : (6) 07 234 5228 / 5229 / 8785
Fax : (6) 07 773 2702 • SENAWANG
Fax : (6) 07 234 5230
Tel : (6) 06 678 2731 / 2732 / 2733
• KOTA TINGGI Fax : (6) 06 678 2734
Tel : (6) 07 883 8800 / 5582
MELAKA
(6) 07 882 6205 • SEREMBAN
Fax : (6) 07 882 4485 • AYER KEROH Tel : (6) 06 762 9814 / 9815 / 9816
Tel : (6) 06 232 0986 / 1273 / 6559 (6) 06 762 9817
• KULAIJAYA Fax : (6) 06 232 6561 Fax : (6) 06 763 8391
Tel : (6) 07 663 5204 / 5205 / 5206
Fax : (6) 07 663 3208 • BANDAR MELAKA • TAMPIN
Tel : (6) 06 284 1366 / 1367 / 1368 Tel : (6) 06 441 4131 / 4132 / 4133
• MERSING Fax : (6) 06 284 7257 Fax : (6) 06 441 7479
Tel : (6) 07 799 5076 / 6606 / 6607
(6) 07 799 6608 • BANDAR ENSTEK
Fax : (6) 07 799 5077 Tel : (6) 06 799 6484 / 6485 / 6486
Fax : (6) 06 799 6487
444
EAST MALAYSIA
REGION
1 1st Floor, UMNO Building 2 Lot 423 – 426, Bangunan Aiman
Jalan Kemajuan Jalan Kulas Barat
88500 Kota Kinabalu Section 5
Sabah 93400 Kuching Sarawak
Tel : (6) 088 447 114 / 160 / 260 Tel : (6) 082 425 118 / 235 419
Fax : (6) 088 447 256 (6) 082 416 215
Fax : (6) 082 233 172 / 234 108
(6) 082 235 521
SABAH SARAWAK
• ALAMESRA • BINTULU
Tel : (6) 088 487 978 / 975 / 976 Tel : (6) 086 337 413 / 418 / 493 / 781
Fax : (6) 088 487 980 Fax : (6) 086 337 401
• KOTA KINABALU • KOTA SAMARAHAN

Tel : (6) 088 447 285 / 306 / 312 / Tel : (6) 082 662 616 / 617 / 284
(6) 088 447 314 (6) 082 662 285
Fax : (6) 088 447 315 Fax : (6) 082 662 618
• LAHAD DATU • KUCHING

Tel : (6) 089 863 255 / 244 / 577 Tel : (6) 082 412 259 / 413 229
Fax : (6) 089 863 433 (6) 082 414 159 / 417 289
Fax : (6) 082 410 446
• SANDAKAN
Tel : (6) 089 214 885 / 942 / 964 • MIRI
Fax : (6) 089 214 977 Tel : (6) 085 415 422 / 424 / 425
Fax : (6) 085 415 421
• TAWAU
Tel : (6) 089 778 966 / 758 • SIBU
Fax : (6) 089 779 666 Tel : (6) 084 327 140 / 141 / 142
Fax : (6) 084 327 144
• KENINGAU
Tel : (6) 087 342 201 / 202 / 203 • SIMPANG TIGA, KUCHING
Fax : (6) 087 342 204 Tel : (6) 082 453 716 / 726 / 736
Fax : (6) 082 453 711
WILAYAH PERSEKUTUAN
• LABUAN
Tel : (6) 087 419 205 / 424 667
Fax : (6) 087 419 206
445
AR-RAHNU
BRANCHES
ALOR SETAR KUBANG KERIAN TANAH MERAH
• Lot 2024, Jalan Langgar • PT 816, Ground Floor • Lot PT175

05000 Alor Setar Jalan Raja Perempuan Zainab II Jalan Hospital
Kedah Bandar Baru Kubang Kerian 17500 Tanah Merah
Tel : (6) 04 731 9090 16150 Kota Bharu Kelantan
Fax : (6) 04 730 5050 Kelantan Tel : (6) 09 955 7090
Tel : (6) 09 767 8090 Fax : (6) 09 955 5090
Fax : (6) 09 764 5090
SUNGAI PETANI
KUALA TERENGGANU
• 21-B, Jalan Ibrahim
PASIR MAS
08000 Sungai Petani • MBKT-No 19
Kedah • Lot 319, Seksyen 1 Pusat Niaga Paya Keladi
Tel : (6) 04 421 9090 Jalan Pasir Pekan Kampung Paya Keladi
Fax : (6) 04 421 5050 17000 Pasir Mas 20200 Kuala Terengganu
Kelantan Terengganu
Tel : (6) 09 790 8090 Tel : (6) 09 626 7090
KOTA BHARU Fax : (6) 09 790 3090 Fax : (6) 09 623 5050
• No. 1154 & 1155, Seksyen 11

Lorong Medan MARA
PASIR PUTEH KUANTAN
Bandar Kota Bharu
15000 Kota Bharu • No. PT 546, Seksyen 2 • No. G-11, Ground Floor
Kelantan Jalan Nara Mahkota Square
Tel : (6) 09 748 9090 16800 Pasir Puteh Jalan Mahkota
Fax : (6) 09 748 9050 Kelantan 25000 Kuantan
Tel : (6) 09 786 9090 Pahang
Fax : (6) 09 786 5050 Tel : (6) 09 517 9090
Fax : (6) 09 514 5050
446
SME
HUB
HEADQUARTERS • SME BANKING TERENGGANU
STATE
• SME BANKING
PULAU PINANG STATE
Tingkat 2 & 3, PT 35308 & PT 35309 Tingkat 1 (Mezanine)
• Level 29, Menara Bank Islam Dataran Austin, Mukim Kuala Nerus Bangunan KWSP, Seberang Jaya
No. 22, Jalan Perak 21300 Kuala Terengganu No. 3009, Lebuh Tenggiri 2
Terengganu 13700 Seberang Jaya
50450 Kuala Lumpur
General Line : 09-667 2426 / 2427 Pulau Pinang
Tel : 03-2028 3286 Fax : 09-667 2433 General Line : 04-382 9100
Fax : 04-382 9166
• SME BANKING PAHANG
STATE • SME BANKING GEORGETOWN
CENTRAL REGION Bank Islam Putra Square Ground Floor
No. 1 & 3, Tingkat 2 Wisma Great Eastern
• SME BANKING SHAH ALAM
Jalan Putra Square 2 Light Street
Tingkat Bawah, Wisma PKPS
25200 Kuantan Peti Surat 1204
Seksyen 14, Persiaran Perbandaran
Pahang 10200 Georgetown
40675 Shah Alam
General Line : 09-517 3491 Pulau Pinang
Selangor
Fax : 09-517 3605 General Line : 04-262 4724
General Line : 03-5510 0103 / 0018 /
Fax : 04-262 2594
0288
Fax : 03-5519 7261
SOUTHERN REGION • SME BANKING PERAK STATE
No. 21 & 23
• SME BANKING BANGI • SME BANKING JOHOR
Jalan Taman Meru Utama A1
Bank Islam Bandar Baru Bangi STATE
Medan Meru Utama
No. 2 & 4, Jalan 6C/7 Tingkat 15, Menara Tabung Haji
30020 Ipoh
43650 Bandar Baru Bangi Jalan Ayer Molek
Perak
Selangor 80000 Johor Bahru
General Line : 05-527 2125
General Line : 03-8920 1062 Johor
Fax : 05-527 7706
Fax : 03-8925 6168 General Line : 07-225 8800
Fax : 07-225 8899
• SME BANKING SG PETANI
• SME BANKING SRI GOMBAK
Lot 71 & 72
Lot No. 120 & 121, Jalan Prima SG 5 • SME BANKING AYER KEROH
Jalan Lagenda 1
Prima Sri Gombak No. 1 & 3, Jalan KF4
Lagenda Height
68100 Batu Caves Kota Fesyen-MITC, Hang Tuah Jaya
08000 Sungai Petani
Selangor 75450 Ayer Keroh
Kedah.
General Line : 03-6181 1058 Melaka
Fax : 03-6185 9675 Tel : 04-422 0620
General Line : 06-232 6216
Fax : 06-232 6494 Fax : 04-421 3912
• SME BANKING SRI PETALING
No. 1
Jalan Radin Bagus NORTHERN REGION EAST MALAYSIA
Bandar Baru Seri Petaling • SME BANKING KUCHING STATE
57100 Kuala Lumpur • SME BANKING KEDAH/
PERLIS STATE Lot 433, 434 & 435, Section 11 KTLD
General Line : 03-9056 1421 Bangunan Tuanku Muhamad Al Idrus
Fax : 03-9056 2982 No. 212 & 213, Kompleks
Perniagaan Sultan Abdul Hamid Jalan Kulas
Persiaran Sultan Abdul Hamid 93400 Kuching
05050 Alor Setar Sarawak
EASTERN REGION
Kedah Tel : 082-414 159 / 082-412 259
• SME BANKING KELANTAN STATE Tel : 04-771 0102 Fax : 082-410 446
Tingkat 2, PT1540, 1541 & 1542 Fax : 04-771 0112
Persiaran KK6, Jalan Raja • SME BANKING KOTA KINABALU
Perempuan Zainab II STATE
Bandar Baru Kubang Kerian Ground & First Floor UMNO Building
16150 Kota Bharu Jalan Kemajuan Karamunsing
Kelantan 88850 Kota Kinabalu
General Line : 09-764 1049 Sabah
Fax : 09-765 0177 Tel : 088-447 274
447
BUREAU
DE CHANGE
KLIA ARRIVAL LANDSIDE KLIA 2 LANDSIDE
• Lot No. MTB-3-L11 • Lot L2-24A

Level 3, Arrival Hall Gateway @ KLIA2, Terminal KLIA2
Main Terminal Building Kuala Lumpur International Airport 2
Kuala Lumpur International Airport Jalan KLIA2/1
64000 Sepang 64000 Sepang
Selangor Selangor
Tel : 03-8787 1239 Tel : 03-8775 8032
Fax : 03-8787 1108 Fax : 03-8775 8029
KLIA CONTACT PIER KOTA KINABALU

INTERNATIONAL AIRPORT
• Lot No. CPI-4-A02
Contact Pier International • Lot No. L1L01 (C7)
Kuala Lumpur International Airport Level 1, Arrival Hall (Landside)
64000 Sepang 88740 Kota Kinabalu
Selangor International Airport
Tel : 03-8787 1840 Sabah
Fax : 03-8787 1843 Tel : 088-204 232
Fax : 088-204 175
KLIA IMMIGRATION
PENANG
• Lot No. MTB-3-A21
INTERNATIONAL AIRPORT
Arrival Hall (Immigration)
Kuala Lumpur International Airport • Lot No. L1AS14
64000 Sepang Level 1, International Arrival (Airside)
Selangor Penang International Airport
Tel : 03-8787 1213 11900 Bayan Lepas
Fax : 03-8787 1186 Pulau Pinang
Tel : 04-645 3388
Fax : 04-643 9488
KLIA SATELLITE
• Lot No. SAT-P-A41

Passenger Level, Satellite Building
Kuala Lumpur International Airport
64000 Sepang
Selangor
Tel : 03-8787 1214
Fax : 03-8787 1231
448
VEHICLE FINANCING
SALES HUB
TEMERLOH MERU RAYA KOTA KINABALU
• D/A BANK ISLAM MALAYSIA • D/A BANK ISLAM MALAYSIA • D/A BANK ISLAM MALAYSIA
BERHAD BERHAD BERHAD
TEMERLOH BRANCH MERU RAYA BRANCH KOTA KINABALU BRANCH
Lot No. C-49 & C-50 Ground Floor, No. 19 1st Floor, Bangunan UMNO
Jalan Tengku Ismail Jalan Taman Meru Utama A1 Jalan Kemajuan, Karamunsing
28000 Temerloh Medan Meru Utama 88000 Kota Kinabalu
Pahang 30020 Ipoh Sabah
Tel : (6) 09 296 1416 Perak Tel : (6) 088 447 294/295
Fax : (6) 09 296 5300 Tel : (6) 05 527 7742 / 7743 Fax : (6) 088 447 305
Fax : (6) 05 527 7751
ALOR SETAR KUALA LUMPUR

KUALA TERENGGANU
• D/A BANK ISLAM MALAYSIA • 3rd Floor, Block E
BERHAD • D/A BANK ISLAM MALAYSIA Wisma RKT Ground Floor
ALOR SETAR BRANCH BERHAD No 10, Jalan Raja Abdullah
No. 1, Kompleks Perniagaan Utama JLN SULTAN ISMAIL BRANCH Off Jalan Sultan Ismail
Jalan Sultanah Sambungan 1st Floor, Lot 1128 50300 Kuala Lumpur
05150 Alor Setar Bangunan Majlis & Adat Tel : (6) 03 2691 0277
Kedah Melayu Terengganu, Jalan Banggol Fax : (6) 03 2698 8636
Tel : (6) 04 735 5966 20720 Kuala Terengganu
Fax : (6) 04 735 1002 Terengganu
Tel : (6) 09 622 4730 KUANTAN
Fax : (6) 09 631 5455
• D/A BANK ISLAM MALAYSIA
AYER KEROH
BERHAD
• D/A BANK ISLAM MALAYSIA KUANTAN BRANCH
KOTA BHARU
BERHAD
No. 1-05, 1-06, 1-07 Mahkota Square
AYER KEROH BRANCH • D/A BANK ISLAM MALAYSIA
Jalan Mahkota
1st Floor, 1 & 3, Jalan KF 4 BERHAD
25000 Kuantan
Kota Fesyen-MITC, Hang Tuah Jaya KOTA BHARU BRANCH
Pahang
75450 Ayer Keroh 1st Floor, Seksyen 25, Lundang
Tel : (6) 09 513 6262
Melaka Jalan Sultan Yahya Petra
Fax : (6) 09 515 8623
Tel : (6) 06 232 6216 / 6024 15720 Kota Bharu
Fax : (6) 06-232 6494 Kelantan
Tel : (6) 09 747 3488
SHAH ALAM
Fax : (6) 09 747 3491
BUTTERWORTH • Ground Floor, Wisma PKPS,
Section 14, Persiaran Perbandaran
• D/A BANK ISLAM MALAYSIA
JOHOR BAHRU 40675 Shah Alam
BERHAD
Selangor
BUTTERWORTH BRANCH • D/A BANK ISLAM MALAYSIA
Tel : (6) 03 5519 5188
1st Floor, No. 71 & 73 BERHAD
Fax : (6) 03 5519 6188
Jalan Taman Selat Off Jalan Bagan JOHOR BAHRU BRANCH
Luar No. 8-01, Jalan Padi Emas 5/2
12720 Butterworth 81200, Bandar Baru Uda
Penang Johor Bahru
Tel : (6) 04 332 1333 Johor
Fax : (6) 04 333 4477 Tel : (6) 07 237 9155
Fax : (6) 07 237 9166
449
SUBSIDIARIES OF
BIMB GROUP
BIMB INVESTMENT BIMB HOLDINGS SDN BHD BIMSEC NOMINEES (TEMPATAN)
MANAGEMENT BERHAD SDN BHD
• 31st Floor, Menara Bank Islam
• 19th Floor, Menara Bank Islam No. 22, Jalan Perak • Level 32, Menara Multi-Purpose
No. 22, Jalan Perak 50450 Kuala Lumpur Capital Square
50450 Kuala Lumpur Tel : (6) 03 2781 2999 No. 8, Jalan Munshi Abdullah
Tel : (6) 03 2161 2524 / 2924 Fax : (6) 03 2781 2998 50100 Kuala Lumpur
Toll Free : 1800 88 1196 Website : www.bimbholdings.com Tel : (6) 03 2613 1600
Fax : (6) 03 2161 2464 Fax : (6) 03 2613 1799
SYARIKAT AL-IJARAH
BANK ISLAM TRUST COMPANY SENDIRIAN BERHAD BIMSEC NOMINEES (ASING)
(LABUAN) LTD & BIMB OFFSHORE SDN BHD
COMPANY MANAGEMENT
No. 22, Jalan Perak • Level 32, Menara Multi-Purpose
SERVICES SDN BHD
50450 Kuala Lumpur Capital Square
• Level 15 (A), Main Office Tower Tel : (6) 03 2781 2999 No. 8, Jalan Munshi Abdullah
Financial Park Complex Fax : (6) 03 2781 2998 50100 Kuala Lumpur
Jalan Merdeka Tel : (6) 03 2613 1600
87000 F.T. Labuan Fax : (6) 03 2613 1799
Tel : (6) 087 451 806 BIMB SECURITIES (HOLDINGS)
Fax : (6) 087 451 808 SDN BHD

No. 22, Jalan Perak
AL-WAKALAH NOMINEES
50450 Kuala Lumpur
(TEMPATAN) SENDIRIAN BERHAD
Tel : (6) 03 2781 2999
• 21st Floor, Menara Bank Islam Fax : (6) 03 2781 2998
No. 22, Jalan Perak
50450 Kuala Lumpur
Tel : (6) 03 2726 7724 BIMB SECURITIES SDN BHD
Fax : (6) 03 2726 7733
• Level 32, Menara Multi-Purpose
Capital Square
No. 8, Jalan Munshi Abdullah
FARIHAN CORPORATION
50100 Kuala Lumpur
SDN BHD
Tel : (6) 03 2613 1600
• 19th Floor, Menara Bank Islam Fax : (6) 03 2613 1799
No. 22, Jalan Perak Website : www.bimbsec.com.my
50450 Kuala Lumpur Online
Tel : (6) 03 2782 1333 trading : www.bisonline.com.my
Fax : (6) 03 2782 1355
450
NOTICE OF THE 39TH

ANNUAL GENERAL MEETING
NOTICE IS HEREBY GIVEN that the 39th Annual General Meeting of Bank Islam Malaysia
Berhad (“BIMB” or “the Company”) will be held virtually at the broadcast venue at
Level 10, Menara Bank Islam, 22 Jalan Perak, 50450 Kuala Lumpur on Monday, 23 May
2022 at 10.00 a.m. for the following purposes:
ORDINARY BUSINESS
1. To receive the Audited Financial Statements for the financial year ended 31 December 2021 (Please refer to Note 1)
together with the Reports of the Directors and Auditors thereon.
2. To re-elect the following Directors, each of whom is retiring by rotation in accordance with
Clause 133 of the Company’s Constitution and being eligible, has offered himself for
re-election:
i) Datuk Nik Mohd Hasyudeen Yusoff (Ordinary Resolution 1)

ii) Encik Mohd Yuzaidi Mohd Yusoff (Ordinary Resolution 2)
3. To re-elect the following Directors, each of whom is retiring in accordance with Clause 142
of the Company’s Constitution and being eligible, has offered herself/himself for
re-election:
i) Dato’ Sri Amrin Awaluddin (Ordinary Resolution 3)

ii) Encik Mohd Asri Awang (Ordinary Resolution 4)
iii) Datuk Bazlan Osman (Ordinary Resolution 5)
iv) Puan Nuraini Ismail (Ordinary Resolution 6)
4. To approve the payment of the following fees to each Non-Executive Directors for the (Ordinary Resolution 7)
period from the 39th AGM to the 40th AGM of the Company:
TOTAL AMOUNT (PER ANNUM) (RM)

Chairman 144,000.00 90,000.00 48,000.00 18,000.00 24,000.00
Member 72,000.00 72,000.00 36,000.00 12,000.00 18,000.00
SITTING FEE (PER MEETING) (RM)
Chairman Member
5,000.00 3,000.00

5. To approve the payment of benefits of up to RM1,150,000.00 to eligible Non-Executive (Ordinary Resolution 8)
Directors for the period from the 39th AGM to the 40th AGM of the Company.
6. To re-appoint Messrs. PricewaterhouseCoopers PLT as the External Auditors of the Company (Ordinary Resolution 9)
for the financial year ending 31 December 2022 and to authorise the Directors to fix their
remuneration.
451
NOTICE OF THE 39TH ANNUAL GENERAL MEETING
SPECIAL BUSINESS
To consider, and if thought fit, to pass the following Ordinary Resolutions:
7. Authority to Directors to Allot New Ordinary Shares in BIMB (“BIMB shares”)
“THAT subject always to the Companies Act, 2016 (“the Act”), the Company’s Constitution, (Ordinary Resolution 10)
the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”)
and approval of the relevant government/regulatory authorities, the Directors be and are
hereby authorised pursuant to Section 75 of the Act, to allot BIMB shares at any time and
upon such terms and conditions and for such purposes as the Directors may in their
absolute discretion deem fit, provided that the aggregate number of BIMB shares to be
allotted pursuant to the said allotment does not exceed ten percent (10%) of the total
number of issued shares of the Company as at the date of such allotment and that the
Directors be and are hereby authorised to obtain all necessary approvals from the relevant
authorities for the allotment, listing and quotation of the additional shares so allotted on
Bursa Malaysia and that such authority to allot BIMB shares shall continue to be in force
until the conclusion of the next AGM of the Company.”
8. Proposed renewal of the authority for Directors to allot and issue new ordinary shares of (Ordinary Resolution 11)
BIMB, for the purpose of the Company’s Dividend Reinvestment Plan (“DRP”) that provides
the shareholders of BIMB the option to elect to reinvest their cash dividend in new BIMB
shares.
“THAT pursuant to the DRP as approved by the Shareholders at the Extraordinary General
Meeting held on 19 November 2021 and subject to the approval of the relevant regulatory
authority (if any), approval be and is hereby given to the Company to allot and issue such
number of new BIMB shares from time to time as may be required to be allotted and
issued pursuant to the DRP until the conclusion of the next Annual General Meeting upon
such terms and conditions and to such persons as the Directors of the Company at their
sole and absolute discretion, deem fit and in the interest of the Company PROVIDED THAT
the issue price of the said new BIMB shares shall be fixed by the Directors based on the
adjusted five (5) market days volume weighted average market price (“VWAP”) of BIMB
shares immediately prior to the price-fixing date after applying a discount of not more
than 10%, of which the VWAP shall be adjusted ex-dividend before applying the aforementioned
discount in fixing the issue price;
AND THAT the Directors and the Secretary of the Company be and are hereby authorised
to do all such acts and enter into all such transactions, arrangements, deeds, undertakings
and documents as may be necessary or expedient in order to give full effect to the DRP
with full power to assent to any conditions, modifications, variations and/or amendments
as may be imposed or agreed to by any relevant authorities (if any) or consequent upon
the implementation of the said conditions, modifications, variations and/or amendments,
by the Directors as they, in their absolute discretion, deem fit and in the best interest of
the Company.”
9. To transact any other ordinary business of which due notice shall have been given in
accordance with the Companies Act 2016.
By Order of the Board
MARIA MAT SAID

Company Secretary (LS 0009400)
Practicing Certificate No. 202008002449
Kuala Lumpur
25 April 2022
452
EXPLANATORY NOTES:
1. AUDITED FINANCIAL STATEMENTS
The Audited Financial Statements laid at this meeting pursuant to Section 340(1)(a) of the Companies Act 2016 are
meant for the shareholders’ information and discussion only. It does not require the shareholders’ approval, and
therefore the Audited Financial Statements are not put forward for voting.
2. RE-ELECTION OF DIRECTORS
Ordinary Resolutions 1, 2, 3, 4, 5 and 6
Clause 133 of the Company’s Constitution provides that one-third (1/3) of the Directors of the Company for the time
being, or, if their number is not three (3) or a multiple of three (3), then the nearest one-third (1/3) shall retire from
office, provided that all Directors shall retire from office at least once in three (3) years, but shall be eligible for re-
election.
Clause 142 of the Company’s Constitution provides that the Directors shall have power at any time and from time
to time to appoint any person to be a Director either to fill a casual vacancy or as an addition to the existing Directors.
Any Director so appointed shall hold office only until the next following annual general meeting and shall then be
eligible for re-election but shall not be taken into account in determining the Directors who are to retire by rotation
at that meeting.
Based on the number of Directors who are subject to retirement by rotation under Clause 133 of the Company’s
Constitution, two (2) out of seven (7) Directors shall retire at this 39th AGM. Datuk Nik Mohd Hasyudeen Yusoff and
Encik Mohd Yuzaidi Mohd Yusoff will retire by rotation at this 39th AGM and being eligible, have offered themselves
for re-election as Directors of the Company.
During the year under review, there are four (4) new Directors being appointed to the Company. According to Clause
142 of the Company’s Constitution, all four (4) Directors, namely, Dato’ Sri Amrin Awaluddin (appointed on 10 September
2021), Encik Mohd Asri Awang (appointed on 1 October 2021), Datuk Bazlan Osman and Puan Nuraini Ismail (both
appointed on 7 January 2022) will retire at this 39th AGM and being eligible, have offered themselves for re-election
as Directors of the Company.
The Board Nomination and Remuneration Committee (“BNRC”) of the Company has considered the performance
and contribution of each retiring Director and has also assessed the independence of the Independent Non-Executive
Directors seeking re-election.
Based on the results of the annual Board Effectiveness Evaluation conducted for the financial year ended 31 December
2021, the performance for each of the retiring Director was found to be satisfactory (rated between 4.1 to 4.3) with
the exception of Datuk Bazlan Osman and Puan Nuraini Ismail who were evaluated separately as they were appointed
on 7 January 2022. In addition, all retiring Directors met with all the requirements of fit and proper criteria issued
by Bank Negara Malaysia. The retiring Independent Non-Executive Directors have also fulfilled the independence
criteria as set out in the BNM CG Policy, the Main Market Listing Requirements of Bursa Malaysia Securities Berhad
as well as the Company’s Board Charter. All the retiring Directors have no record of adverse finding under MACC
Act 2009, LEXIS NEXIS, Insolvency Act or for any mismanagement that could adversely affect the Company.
The Board had endorsed the BNRC’s recommendation on the re-election of the retiring Directors. The retiring
Directors had abstained from deliberation and decisions on their re-election at the BNRC and Board meetings.
The Board is of the collective view that all of the said Directors who are retiring at this 39th AGM have satisfactorily
discharged their roles and responsibilities to act in the best interest of the Company. The Board is satisfied that,
considering their wealth of expertise and experience that the retiring Directors possess and brings to the Board,
shall further strengthen the Board composition and dynamic.
The profiles of the Directors seeking for re-election are set out on pages 137 to 142 under Profile of Directors’ section
of the Company’s Integrated Annual Report 2021.
453
3. DIRECTORS’ FEES AND BENEFITS
Ordinary Resolution 7 – Payment of Non-Executive Director’s Fees
The Proposed fees to be paid to each Non-Executive Directors from this AGM to the next AGM of the Company is
based on the following fee structure which has not changed since it was first approved by the shareholder at
34th AGM held on 6 Maye 2017:
TOTAL AMOUNT (PER ANNUM) (RM)

Chairman 144,000.00 90,000.00 48,000.00 18,000.00 24,000.00
Member 72,000.00 72,000.00 36,000.00 12,000.00 18,000.00
SITTING FEE (PER MEETING) (RM)
Chairman Member
5,000.00 3,000.00
The fee structure is reasonable after benchmarking and taking into account prevailing market and economic conditions
as well as practices of other comparable companies in the market.
Ordinary Resolution 8 – Benefits Payable to Non-Executive Directors
The benefits payable to Non-Executive Directors comprise allowances, benefits-in-kind and other emoluments payable
to them, details of which are tabulated below:
a) Car Allowance
- Chairman - RM10,000 per month
b) Senior Independent Director’ Allowance - RM2,000 per month
c) Other Benefits
- Includes benefits that are claimable or otherwise such as leave passage, medical and insurance benefits and
other payments made available by the Company to eligible Non-Executive Directors.
The proposed amount of up to RM1,150,000.00 (remain unchanged with the approved benefits at the 38th AGM) to
be paid as benefits to eligible Non-Executive Directors from this AGM to the next AGM of the Company will be paid
on monthly basis and/or as and when claimed or incurred.
For shareholders’ ease of reference, the Board had endorsed the BNRC’s recommendation to provide the breakdown
of the total fees and other benefits to be paid to NEDs from the 39th AGM until the 40th AGM as follows:-
Taking into consideration there will be more meeting to discuss on the strategic matters, the Company anticipates
higher number of meetings in 2022/2023, i.e., 83 meetings (2021/2022: 78 meetings). The detail on the fees to be
paid to the NEDs are as follows:-
Retainer and sitting fees RM3,388,500.00

Other benefits RM1,150,000.00
Total RM4,538,500.00
Based on the above computation, the total fees (retaining and sitting fees together with other benefits) will be
RM4,538,500.00, slightly higher than the amount approved by the shareholder of RM4,211,007.00 at the 38th AGM on
31 May 2021. The Company viewed that the amount proposed is reasonable taking into consideration the Company’s
financial health and performance.
454
4. RE-APPOINTMENT OF AUDITORS
Ordinary Resolution 9
The Board, through the Board Audit and Examination Committee (“BAEC”) had, on 27 January 2022, completed its
annual assessment on the external auditors, i.e., Messrs. PricewaterhouseCoopers PLT (“PwC”) in accordance with
BNM’s Guideline on Corporate Governance for the appointment/re-appointment of external auditors. The assessment
covered the following aspects:
i. Level of knowledge, capabilities, experience and quality of previous work;

ii. Level of engagement with the BAEC and the Management;
iii. Ability to provide constructive observations, implications and recommendations in areas requiring improvements;
iv. Adequacy in audit coverage, effectiveness in planning and conduct of audit;
v. Ability to perform audit work within agreed timeframe;
vi. Non-audit services rendered by the external auditors did not impede independence; and
vii. The external auditors demonstrated unbiased stance when interpreting standards/policies adopted by the
Company.
Being satisfied with PwC’s performance in 2021, their technical competency and audit independence as well as
fulfillment of criteria as set out in BNM’s Guideline for the Appointment/Re-appointment of External Auditors, the
Board, at its meeting held on 28 January 2022, had approved the BAEC’s recommendation for the re-appointment
of PwC as the external auditors of the Company for the financial year ending 31 December 2022.
5. AUTHORITY TO DIRECTORS TO ALLOT SHARES
The above proposed ordinary resolution is a general mandate to be obtained from the shareholders of the Company
at this AGM and if passed, will empower the Directors pursuant to Section 75 of the Act, to allot BIMB shares of up
to an aggregate amount not exceeding ten percent (10%) of the issued share capital of the Company as at the date
of such allotment of shares without having to convene a general meeting. This general mandate, unless revoked or
varied at a general meeting, will expire at the conclusion of the next AGM of the Company.
The general mandate, if granted, will provide the Company the flexibility to undertake any share issuance without
having to convene a general meeting and thereby reducing administrative time and costs associated with the
convening of additional general meeting(s). The general mandate is to allow for possible share issue and/or fund
raising exercises including placement of shares for the purpose of funding current and/or future investment projects,
working capital and/or acquisitions as well as in the event of any strategic opportunities involving equity deals which
may require the Company to exercise the mandate. This is only to be undertaken if the Board considers it to be in
the best interest of the Company.
The Company has not issued any new shares under the general mandate for allotment of share pursuant to Section
75 of the Act which was approved at the 38th AGM held on 31 May 2021 which will lapse at the conclusion of the
upcoming 39th AGM.
6.
RENEWAL OF AUTHORITY FOR THE DIRECTORS TO ALLOT AND ISSUE NEW ORDINARY SHARES IN RESPECT
OF THE DIVIDEND REINVESTMENT PLAN (“DRP”)
If passed, will give authority to the Directors to allot and issue new ordinary share for the DRP in respect of dividends
to be declared until the next AGM. A renewal of this authority will be sought at the next AGM.
455
NOTES ON ABSTENTION FROM VOTING
Any Director referred to in Ordinary Resolutions 1 to 6, who is a Shareholder of the Company will abstain from voting on
the resolutions in respect of his/her re-election at this AGM.
All Directors who are Shareholders of the Company will abstain from voting on Ordinary Resolutions 7 and 8 concerning
Directors’ remuneration at this AGM.
For the record, none of the Directors holds any shares in the Company.
NOTES ON VIRTUAL AGM, VOTING RIGHTS AND PROCEDURES
1) The 39th AGM of the Company will be conducted on a virtual basis through live streaming and online remote
voting via Remote Participation and Electronic Voting facilities (“RPEV”). The Virtual Meeting via RPEV will be
available at https://meeting.boardroomlimited.my. Please follow the procedures provided in the Administrative Guide
for the 39th AGM in order to register, participate and vote remotely.
2) The venue of the 39th AGM is strictly for the purpose of complying with Section 327(2) of the Companies Act 2016
and Clause 96 of the Company’s Constitution which requires the Chairman of the meeting to be present at the
main venue of the meeting. The notification of the venue of the 39th AGM is to inform shareholders where the
electronic AGM production and streaming would be conducted. No shareholders/proxies from the public will be
physically allowed at the meeting venue.
3) In accordance with Clause 109 of the Company’s Constitution, each member of the Company (“Member”) shall be
entitled to be present and to vote at any general meeting of the Company, either personally or by proxy or by
attorney and to be reckoned in a quorum in respect of shares fully paid and in respect of partially paid shares where
calls are not due and unpaid. Members may exercise their rights to participate (including pose questions via the
RPEV) during the 39th AGM.
4) Pursuant to Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, all
resolutions set out in this Notice of the 39th AGM will be conducted by way of a poll.
5) The Company had appointed its share registrar, i.e., Boardroom Share Registrars Sdn Bhd (“Boardroom”) as a poll
administrator to conduct the poll by way of electronic voting (“e-voting”) and SKY Corporate Services Sdn Bhd as
the Independent Scrutineers to verify the poll results.
456
NOTES ON APPOINTMENT OF PROXY
1) In accordance with Clause 94 of the Company’s Constitution, a Member entitled to attend and vote at a meeting
of the Company is entitled to appoint one (1) or more proxies to exercise all or any of his/her rights to attend,
participate, speak and vote for him/her subject to the following provisions:
a) save as provided for Note (2) below, Clause 113 of the Company’s Constitution and the Companies Act 2016, each
member shall not be permitted to appoint more than two (2) proxies to attend the same meeting; and
b) where a Member appoints more than one (1) proxy, the appointment shall be invalid unless he/she specifies the
proportion of his/her holdings to be represented by each proxy.
2) For the avoidance of doubt and subject always to Note (1)(b) above, the Company’s Constitution and the Companies
Act 2016:
a) where a Member is an exempt authorised nominee which holds ordinary shares in the Company for multiple
beneficial owners in one (1) securities account (“omnibus account”), there is no limit to the number of proxies
which an exempt authorised nominee may appoint in respect of each omnibus account it holds; and
b) where a Member is an authorised nominee, he/she may appoint at least one (1) proxy in respect of each securities
account it holds to which ordinary shares in the Company are credited. Each appointment of proxy by an
authorised nominee may be made separately or in one (1) instrument of proxy should specify the securities
account number and the name of the beneficial owner for whom the authorised nominee is acting.
3) There shall be no restriction as to the qualification of the proxy. Hence, a proxy may not need to be a Member.
4) The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly
authorised in writing or if such appointer is a corporation, under its Seal or the hand of its attorney.
5) The instrument appointing a proxy (“Proxy Form”) must be deposited at the Registrar’s office in the following manner:
a) by electronic means through the Boardroom Smart Investor Portal at https://investor.boardroomlimited.com by

logging in and selecting “Submit eProxy Form”; or
b) by hand or post to Boardroom Share Registrars Sdn Bhd at 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo
Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia, not less than forty eight (48) hours before the
time appointed for holding the meeting which is no later than 10.00 a.m. on Saturday, 21 May 2022.
6) The lodging of a completed Proxy Form does not preclude a Member from attending and voting should the Member
decided to do so. If the Member subsequently decided to attend the 39th AGM, the Member is requested to revoke
the earlier appointment of proxy by notifying Boardroom in writing, no later than Saturday, 21 May 2022 at 10.00 a.m.
MEMBERS ENTITLED TO ATTEND THE VIRTUAL AGM
For the purpose of determining a Member who is entitled to attend the virtual 39th AGM, the Company will request Bursa
Malaysia Depository Sdn Bhd, in accordance with Clause 95 of the Company’s Constitution, to issue a Record of Depositor
(“ROD”) as at 17 May 2022. Only Depositor whose name appears on the ROD as at 17 May 2022 shall be entitled to attend
the meeting or appoint a proxy(ies) to attend and/or vote on his/her behalf.
457
STATEMENT ACCOMPANYING
DIRECTORS WHO ARE STANDING FOR RE-ELECTION AT THE 39TH ANNUAL GENERAL MEETING
Pursuant to Paragraph 8.27(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, BIMB wishes
to highlight the Directors who are standing for re-election pursuant to Clause 133 and Clause 142 of the Company’s
Constitution at the 39th Annual General Meeting of the Company are as follows:
1. Clause 133 of the Company’s Constitution
• Datuk Nik Mohd Hasyudeen Yusoff (Non-Independent Non-Executive Director)

• Encik Mohd Yuzaidi Mohd Yusoff (Independent Non-Executive Director)
2. Clause 142 of the Company’s Constitution
• Dato’ Sri Amrin Awaluddin (Non-Independent Executive Director)

• Encik Mohd Asri Awang (Independent Non-Executive Director)
• Datuk Bazlan Osman (Independent Non-Executive Director)
• Puan Nuraini Ismail (Independent Non-Executive Director)
The Profiles of the above Directors are set out in 137 to 142 of this Integrated Annual Report.
AUTHORITY TO DIRECTORS TO ALLOT SHARES
Details on the authority to allot shares in BIMB pursuant to Section 75 of the Companies Act 2016 are provided under
the explanatory notes no. 5 in the Notice of the 39th Annual General Meeting.
DATE, TIME AND PLACE OF THE 39TH ANNUAL GENERAL MEETING
The 39th Annual General Meeting of BIMB will be held as follows:
Date : Monday, 23 May 2022

Time : 10.00 a.m.
How : Virtual Meeting
Where : Broadcast venue at Level 10, Menara Bank Islam, 22 Jalan Perak, 50450 Kuala Lumpur, Malaysia.
458
ADMINISTRATIVE
GUIDE
FOR THE 39TH ANNUAL GENERAL MEETING
Day and Date : Monday, 23 May 2022
Time : 10.00 a.m.
Online Meeting Platform :

https://meeting.boardroomlimited.my
Registration : Virtual meeting via Remote Participation and Electronic Voting (“RPEV”) facilities.
Broadcast Venue : Level 10, Menara Bank Islam, 22 Jalan Perak, 50450 Kuala Lumpur, Malaysia.
Mode of Communication : 1. Type text in the meeting platform. The Messaging window facility will be opened concurrently
with the Virtual Meeting Portal, i.e., one (1) hour before the meeting, which is from 9.00
a.m. on Monday, 23 May 2022.
2. Shareholders may also submit their questions before the meeting via Boardoom’s website
at https://investor.boardroomlimited.com by selecting “SUBMIT QUESTION” to pose and
submit their questions electronically. Please submit any questions in relation to the agenda
items for the 39th AGM no later than 10.00 a.m. on Monday, 16 May 2022.
VIRTUAL 39TH AGM
1. The 39th AGM of the Company will be conducted entirely on a virtual basis through live streaming and online remote
voting via RPEV.
2. The Company invites shareholders to participate in the 39th AGM from their home or office and follow the entire proceedings
as the 39th AGM will be be conducted via RPEV. With the RPEV facilities, you may exercise your right as a member of the
Company to participate and vote at the 39th AGM. The RPEV is also in line with Practices 12.1 and 13.3 of the Malaysian Code
on Corporate Governance 2021. The decision is made pursuant to Section 327 of the Companies Act 2016 (“the Act”) and
Clause 96 of the Company’s Constitution.
3. The broadcast venue is strictly for the purpose of complying with Section 327 (2) of the Act and Clause 96 of the Company’s
Constitution that requires the Chairman of the meeting to be present at the main venue of the meeting. No shareholders/
proxies from the public will be physically allowed at the meeting venue. All members are urged to attend the 39th AGM
remotely via meeting platform available on the designated link at https://meeting.boardroomlimited.my.
4. Shareholders can participate in our virtual 39 th AGM by registering online via Boardroom Smart Investor Portal at
https://investor.boardroomlimited.com.
PROCEDURE OF THE 39TH AGM
1. The Login user Guide for participation, posing questions and voting at the 39th AGM will be emailed to you together with
your remote access user ID and password once your registration has been approved.
2. No recording or photography of the 39th AGM meeting (“Meeting”, as applicable) proceedings is allowed without prior written
permission of the Company.
3. You must ensure that you are connected to the internet at all times in order to participate and vote when the 39th AGM
has commenced. Therefore, it is your responsibility to ensure that connectivity for the duration of the Meeting is maintained.
ENTITLEMENT TO PARTICIPATE AND VOTE
In respect of deposited securities, only members whose names appear on the Record of Depositors on 17 May 2022 (General
Meeting Record of Depositors) shall be eligible to participate the Meeting or appoint proxy(ies) to participate on his/her behalf.
459
ADMINISTRATIVE GUIDE
FOR THE 39TH ANNUAL GENERAL MEETING (”39TH AGM”)
APPOINTMENT OF PROXY
1. Shareholders entitled to participate and vote at the 39th AGM is entitled to appoint proxy(ies) to participate and vote in his/
her stead. If you are not able to participate in the 39th AGM remotely, you are encouraged to appoint the Chairman of the
Meeting as your proxy and indicate the voting instruction in the Form of Proxy.
2. You may download the Form of Proxy from our website at www.bankislam.com
3. The Form of Proxy must be deposited at the office of the Share Registrar, Boardroom Share Registrars Sdn Bhd (“Boardroom”)
at Ground Floor or 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor
Darul Ehsan, Malaysia or via electronic means through the Boardroom Smart Investor Online Portal (“BSIP”) at
https://investor.boardroomlimited.com by logging in and selecting “Submit eProxy Form” not less than 48 hours before the
meeting. Please refer to ‘Online Registration Procedure and RPEV’ for information and guidance.
CORPORATE SHAREHOLDER
Corporate shareholders who require their corporate representative to participate and vote at the 39th AGM must deposit their
certificate of appointment of corporate representative to Boardroom not later than 10:00 am on 21 May 2022.
REVOCATION OF PROXY
If you have submitted your Form(s) of Proxy and subsequently decide to appoint another person or wish to participate in our
virtual 39th AGM yourself, please write in to bsr.helpdesk@boardroomlimited.com to revoke the earlier appointed proxy 48 hours
before the meeting.
ONLINE REGISTRATION PROCEDURE AND RPEV
1. Please note that this option is available to (i) individual member; (ii) corporate shareholders; (iii) Authorised Nominee;
and (iv) Exempt Authorised Nominee.
2. If you choose to participate in the Meeting online, you will be able to view a live webcast of the Meeting, ask questions
and submit your votes in real time whilst the Meeting is in progress.
3. Kindly follow the steps below on how to request for login ID and password.
PROCEDURE ACTION
Prior to AGM Date
1 Register Online (Note: If you have already signed up with Boardroom Smart Investor Portal, you are not required
with Boardroom to register. You may proceed to Step 2)
Smart Investor
(a) Open an internet browser. Latest version of Chrome, Firefox, Safari, Edge or Opera is
Portal
recommended.
(for first time
(b) Go to Boardroom Smart Investor Portal website at https://investor.boardroomlimited.com
registration only)
(c) Click Register to sign up for a BSIP account.
(d) Complete registration with all required information. Upload and attached your MyKad front and
back image. Click Register.
(e) You will receive an e-mail from BSIP Online for e-mail address verification. Click on Verify E-mail
Address from the e-mail received to proceed with the registration.
(f) Once your email address is verified, you will be re-directed to BSIP Online for verification of
mobile number. Click on Request OTP Code and an OTP code will be sent to the registered
mobile number. You will need to enter the OTP Code and click Enter to complete the process.
(g) Once your mobile number is verified, registration of your new BSIP account will be pending for
final verification.
(h) An e-mail will be send to you to inform the approval of your BSIP account within one (1) business
day. Subsequently, you can login at https://investor.boardroomlimited.com with the e-mail address
and password filled up by you during registration to proceed.
460
PROCEDURE ACTION
Prior to AGM Date
2 Submit request (Note: Registration for RPEV will open from 25 April 2022. You are required to register to ascertain
for Remote your eligibility to participate at the 39th AGM by using RPEV). Shareholders are encouraged to
Participation User register at least 48 hours before the commencement of the meeting to avoid any delay in the
ID and Password registration.
Individual Members
recommended.
(b) Go to Boardroom Smart Investor Portal website at https://investor.boardroomlimited.com
(c) Login with your registered email address and password. [Note: If you do not have an account
with BSIP, please sign-up/register with Boardroom Smart Investor Portal for free - refer to
Item Step 1 for guide.]
(d) Select and click on Corporate Meeting.
(e) Go to “BANK ISLAM 39TH VIRTUAL ANNUAL GENERAL MEETING” and click Enter.
(f) Go to VIRTUAL and click on Register for RPEV.
(g) Read and agree to the Terms & Conditions.
(h) Enter your CDS Account Number and click Submit to complete your request.
(i) You will receive a notification that your RPEV registration has been received and is being verified.
(j) Upon system verification against the AGM’s Record of Depositors as at 17 May 2022, you will
receive an email from Boardroom either approving or rejecting your registration for the remote
participation.
(k) If approved, RPEV credential will be provided in your email.
(l) Please note that one (1) user ID and password can only log on to one (1) device at a time.
(m) If rejected, a rejection note will be provided in your email.
Please note that the closing date and time to submit your request is by Saturday, 21 May 2022 at
10.00 a.m.
Appointment of Proxy – Individual Members

recommended.
(b) Go to BSIP website @ https://investor.boardroomlimited.com
(c) Login with your registered email address and password. [Note: If you do not have an account
with BSIP, please sign-up/register with Boardroom Smart Investor Portal for free - refer to
Item Step 1 for guide.]
(d) Select and click on Corporate Meeting.
(e) Go to “BANK ISLAM 39TH VIRTUAL ANNUAL GENERAL MEETING” and click Enter.
(f) Go to PROXY and click on Submit eProxy Form.
(g) Read and agree to the Terms & Conditions.
(h) Enter your CDS Account Number and insert the number of securities.
(i) Appoint the Chairman of the meeting or your proxy(ies) and enter the required particulars for
your proxy(ies).
(j) Indicate your voting instructions – FOR or AGAINST, otherwise your proxy(ies) will decide your
votes during meeting.
(k) Review and confirm your proxy(ies) appointment.
(l) Click submit.
(m) Download or print the e-Proxy Form acknowledgement.
Please note that the closing date and time for proxy form submission is by Saturday, 21 May 2022
at 10.00 a.m.
461
PROCEDURE ACTION
Prior to AGM Date
Submit request Corporate Shareholders, Authorised Nominee and Exempt Authorised Nominee
for Remote
(a) Write in to bsr.helpdesk@boardroomlimited.com by providing the name of Member, CDS Account
Participation User
Number accompanied with the Certificate of Appointment of Corporate Representative or Form
ID and Password
of Proxy to submit the request.
(continued)
(b) Please provide a copy of corporate representative’s or proxy holder’s MyKad/Identification Card
(front and back) or Passport as well as his/her email address.
(c) You will receive notification from Boardroom that your request has been received.
(d) Upon system verification of your registration against the General Meeting ROD as at 17 May
2022, you will receive your remote access User ID and Password along with the email from
Boardroom if your registration is approved.
(e) Please note that one (1) user ID and password can only log on to one (1) device at a time.
Please note that the closing date and time to submit your request is by Saturday, 21 May 2022 at
10.00 a.m.
On the day of the AGM
3 Login to Meeting (a) The Meeting Platform will be open for login one (1) hour before the commencement of the 39th
Platform AGM.
(b) The Meeting Platform can be accessed via one of the following:
• Launch the meeting platform by scanning the QR code given to you in the user login guide
along with your remote participation User ID and Password; OR
• Navigate to the website at https://meeting.boardroomlimited.my
(c) Enter the Meeting ID No. and sign in with the user ID and password provided to you via the
email notification in Step 2.
4 Participation (Note: Questions submitted online will be moderated before being sent to the Chairman to avoid
repetition)
(a) If you would like to view the live webcast, select the broadcast icon .
(b) If you would like to ask a question during the 39th AGM, select the messaging icon .
(c) Type your message within the chat box and click the send button once completed.
Please note that the quality of the connectivity to the Meeting Platform for live webcast, as well as
for remote voting is highly dependent on the bandwidth and stability of the internet connection
available at the location of the remote users. Kindly ensure that you are connected to the internet
at all times in order to participate and vote when the virtual 39th AGM has commenced. Therefore,
it is your responsibility to ensure that connectivity for the duration of the meeting is maintained.
5 Voting
(a) Once the meeting is open for voting, the polling icon will appear with the resolutions and
your voting choices.
(b) To vote, select your voting direction from the options provided. A confirmation message will
appear to show your vote has been received.
(c) To change your vote, re-select another voting direction.
(d) If you wish to cancel your vote, please press “Cancel”.
6 End of (a) Upon the announcement by the Chairman on the closure of the 39th AGM, the live webcast will
Participation end.
(b) You can now logout from the Meeting Platform.
462
PARTICIPATION THROUGH LIVE WEBCAST AND QUESTION AT THE 39TH AGM
1. Shareholders who participate in the virtual 39th AGM are able to view the Company’s presentation or slides via the live
webcast.
2. All modes of communications are accepted for the purpose of posting questions to the Chairman and the Board of Directors
before or during the 39th AGM. Shareholders are however encouraged to post questions via the online platform during the
39th AGM.
3. You may submit your questions in advance electronically in relation to the agenda items for the 39th AGM via Boardroom’s
website at https://investor.boardroomlimited.com by selecting “SUBMIT QUESTION”. If you have any questions, please submit
them no later than 10.00 a.m. on Monday, 16 May 2022.
4. You may also use the Messaging window facility to submit your questions during the meeting. The Messaging window
facility will be opened one (1) hour before the 39th AGM which is from 9.00 a.m. on Monday, 23 May 2022.
5. The Chairman and the Board of Directors will endeavour their best to respond to the questions submitted by the shareholders
which are related to the resolutions to be tabled at the 39th AGM. If there is time constraint, the responses to relevant
questions will be published on the Company’s website at the earliest possible, after the 39th AGM.
VOTING PROCEDURE AT THE 39TH AGM
1. The voting procedure will be conducted by poll in accordance with Paragraph 8.29A of Bursa Malaysia Securities Berhad
Main Market Listing Requirements. The Company has appointed Boardroom as Poll Administrator to conduct the poll by
way of electronic voting (e-voting) and SKY Corporate Services Sdn Bhd as the Independent Scrutineers to verify and validate
the poll results.
2. At the Meeting, you will be provided a briefing on the e-voting housekeeping rules.
3. For the purposes of this 39th AGM, e-voting will be carried out via personal smart mobiles, tablets or personal computer/
laptops.
4. Shareholders and proxies are required to use one (1) of the following methods to vote remotely:
a. Launch the meeting platform by scanning the QR code given to you in the user login guide along with your remote
participation User ID and Password; OR
b. Access to the website at URL https://meeting.boardroomlimited.my
5. You may proceed to cast your votes on each of the proposed resolutions as soon as the Chairman calls for the poll to be
opened until such time when the Chairman announces the closure of the poll. You are reminded to cast your votes before
the poll is closed.
6. The Independent Scrutineers will verify the poll results reports upon closing of the poll session by the Chairman and the
Chairman will declare whether with resolutions put on vote were successfully carried or otherwise.
INTEGRATED ANNUAL REPORT 2021
As part of our commitment to sustainable practices, the Integrated Annual Report (IAR) 2021 and the following documents are
available on Bursa Malaysia Berhad’s website at www.bursamalaysia.com under Company Announcements of Bank Islam Malaysia
Berhad and also at the Company’s website at www.bankislam.com
i. Corporate Governance (CG) Report 2021.

ii. Notice of the 39th AGM, Form of Proxy and Administrative Guide for the 39th AGM.
iii. Request IAR 2021 Hardcopy Form.
463
NO VOUCHERS/DOOR GIFTS
There will be no voucher(s) or any door gift(s) for shareholders/proxies who participate in the 39th AGM.
PERSONAL DATA PRIVACY
By registering for the remote participation and electronic voting meeting and/or submitting the instrument appointing a proxy(ies)
and/or representative(s), the member of the Company (or their proxies) has consented to the use of such data for purposes of
processing and administration by the Company (or its agents); and to comply with any laws, listing rules, regulations and/or
guidelines. The member (or their proxies) agrees that he/she will indemnify the Company in respect of any penalties, liabilities,
claims, demands, losses and damages as a result of the shareholder/proxies’ breach of warranty.
ENQUIRY
If you have general administrative enquiries on the 39th AGM, please contact the following during office hours (8.30 a.m. to
5.30 p.m.):
Boardroom Share Registrars Sdn Bhd

Office Helpdesk : 03-7890 4700
Puan Nursyahirah Binti Che Rahimi : 03-7890 4754
Facsimile No. : 03-7890 4670
Email : bsr.helpdesk@boardroomlimited.com
: nursyahirah.cherahimi@boardroomlimited.com
464
BANK ISLAM MALAYSIA BERHAD No. of Shares held CDS Account No.
Company No. 198301002944 (98127-X)
(Incorporated in Malaysia)
PROXY FORM
*I/We
*NRIC No./Passport No./Company No.
of
and telephone no./email address being a

*member/members of Bank Islam Malaysia Berhad (“BIMB” or “the Company”), hereby appoint
Full Name and Address

(in Block Letters) NRIC/Passport No. No. of Shares % of Shareholdings
Email Address Tel No
*and/or
Full Name and Address
(in Block Letters) NRIC/Passport No. No. of Shares % of Shareholdings
Email Address Tel No
or failing *him/her, the Chairman of the meeting as *my/our *proxy/proxies to vote for *me/us on *my/our behalf at the
39th Annual General Meeting of the Company to be held virtually at the broadcast venue at Level 10, Menara Bank Islam,
22 Jalan Perak, 50450 Kuala Lumpur on Monday, 23 May 2022 at 10.00 a.m. or any adjournment thereof.
Please indicate with an “x” in the appropriate space(s) provided below on how you wish your votes to be cast. If no specific
direction as to voting is given, the proxy will vote or abstain from voting at *his/her discretion.
NO ORDINARY RESOLUTION FOR AGAINST

1 TO RE-ELECT DATUK NIK MOHD HASYUDEEN YUSOFF AS A DIRECTOR
2 TO RE-ELECT ENCIK MOHD YUZAIDI MOHD YUSOFF AS A DIRECTOR
3 TO RE-ELECT DATO’ SRI AMRIN AWALUDDIN AS A DIRECTOR
4 TO RE-ELECT ENCIK MOHD ASRI AWANG AS A DIRECTOR
5 TO RE-ELECT DATUK BAZLAN OSMAN AS A DIRECTOR
6 TO RE-ELECT PUAN NURAINI ISMAIL AS A DIRECTOR
7 TO APPROVE THE PAYMENT OF NON-EXECUTIVE DIRECTORS FEE FROM THE 39TH AGM TO
THE 40TH AGM OF THE COMPANY
8 TO APPROVE THE PAYMENT OF BENEFIT TO THE NON-EXECUTIVE DIRECTORS OF UP TO
RM1,150,000.00 FROM THE 39TH AGM TO THE 40TH AGM OF THE COMPANY
9 TO RE-APPOINT MESSRS. PRICEWATERHOUSECOOPERS PLT AS THE EXTERNAL AUDITORS
OF THE COMPANY
10 AUTHORITY TO DIRECTORS TO ISSUE NEW SHARES IN BIMB PURSUANT TO SECTION
75 OF THE COMPANIES ACT, 2016
11 RENEWAL OF AUTHORITY FOR THE DIRECTORS TO ALLOT AND ISSUE ORDINARY
SHARES OF THE COMPANY IN RELATION TO DIVIDEND REINVESTMENT PLAN
Signed this day of , 2022.
Signature of Member/Common Seal

*Strike out whichever is not desired.
Unless otherwise instructed, the proxy may vote as he/she thinks fit
Notes:
1. The 39th AGM of the Company will be conducted entirely on a virtual basis through live streaming (i) save as provided under Note (b) below, Clause 113 of the Company’s Constitution and the
and online remote voting via Remote Participation and Electronic Voting Facilities (“RPEV”). The Companies Act 2016, each Member shall not be permitted to appoint more than two (2)
virtual meeting Facilities will be available at https://meeting.boardroomlimited.my. Please follow proxies to attend the same meeting; and
the procedures provided in the Administrative Guide for the 39th AGM in order to participate (ii) where a Member appoints two (2) proxies, the appointment shall be invalid unless he/
remotely. she specifies the proportion of his/her holdings to be represented by each proxy.
2. The venue of the 39th AGM is strictly for the purpose of complying with Section 327(2) of the Act (b) For the avoidance of doubt and subject always to Note (a)(ii) above, the Company’s Constitution
and the Companies Act 2016:
and Clause 96 of the Company’s Constitution which requires the Chairman of the meeting to be
(i) where a Member is an exempt authorised nominee which holds ordinary shares in the
present at the main venue of the meeting. The notification of the venue of the 39th AGM is to
Company for multiple beneficial owners in one securities account (“omnibus account”),
inform shareholders where the electronic 39th AGM production and streaming will be conducted.
there is no limit to the number of proxies which an exempt authorised nominee may
NO shareholders/proxies from the public will be physically allowed at the meeting venue. appoint in respect of each omnibus account it holds; and
3. In accordance with Clause 109 of the Company’s Constitution, each member of the Company (ii) where a Member is an authorised nominee, he/she may appoint at least one (1) proxy in
(“Member”) shall be entitled to present and to vote at any general meeting of the Company, either respect of each securities account it holds to which ordinary shares in the Company are
personally or by proxy or by attorney and to be reckoned in a quorum in respect of shares fully credited. Each appointment of proxy by an authorised nominee may be made separately
paid and in respect of partially paid shares where calls are not due and unpaid. Members may or in one instrument of proxy should specify the securities account number and the name
exercise their rights to participate (including pose questions via the RPEV) during the 39th AGM. of the beneficial owner for whom the authorised nominee is acting.
4. Pursuant to Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities (c) There shall be no restriction as to the qualification of the proxy. Hence, a proxy need not be
Berhad, all resolutions set out in this Notice of the 39th AGM will be conducted by way of a poll. a Member.
5. The Company has appointed its share registrar, i.e. Boardroom Share Registrars Sdn. Bhd. (d) The instrument appointing a proxy shall be in writing under the hand of the appointer or his/
(“Boardroom” or “Registrar”) as the poll administrator to conduct the poll by way of electronic her attorney duly authorised in writing or if such appointer is a corporation, under its Seal or
voting (“e-voting”) and SKY Corporate Services Sdn. Bhd. as the Independent Scrutineers to verify the hand of its attorney.
the poll results. (e) The instrument appointing a proxy (“Proxy Form”) must be deposited at the Registrar’s office
6. For the purpose of determining a Member who is entitled to attend the virtual 39th AGM, the in the following manner:
Company will request Bursa Malaysia Depository Sdn. Bhd., in accordance with Clause 95 of the (i) by electronic means through the Boardroom Smart Investor Portal at https://
Company’s Constitution, to issue a Record of Depositor (“ROD”) as at 17 May 2022. Only a Member boardroomlimited.my by logging in and selecting “Submit eProxy Form”; or
whose name appears on the ROD as at 17 May 2022 shall be entitled to attend the meeting or (ii) by hand or post to Boardroom Share Registrars Sdn. Bhd. at 11th Floor, Menara Symphony,
appoint a proxy(ies) to attend and/or vote on his/her behalf. No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia, not
7. Notes on Appointment of Proxy: less than forty-eight (48) hours before the time appointed for holding the meeting which
(a) In accordance with Clause 94 of the Company’s Constitution, a Member entitled to attend is no later than Saturday, 21 May 2022 at 10.00 a.m.
and vote at a meeting of the Company is entitled to appoint one (1) or more proxies to exercise (f) The lodging of a completed Proxy Form does not preclude a Member from attending and
voting should the Member decides to do so. If the Member subsequently decided to attend
all or any of his/her rights to attend, participate, speak and vote for him/her subject to the
the 39th AGM, the Member is requested to revoke the earlier appointment of proxy by notifying
following provisions:
Boardroom in writing, no later than Saturday, 21 May 2022 at 10.00 a.m.
Then fold here
AFFIX
STAMP
BOARDROOM SHARE REGISTRARS SDN BHD

11th Floor, Menara Symphony
No. 5, Jalan Prof. Khoo Kay Kim
Seksyen 13, 46200 Petaling Jaya
Selangor Darul Ehsan
Malaysia
1st fold here

Bank Islam Integrated Annual Report 2021

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Bank Islam Integrated Annual Report 2021

Uploaded by

Copyright:

Available Formats

C O V E R R AT I O N A L E

As the first full-fledged pure-play Islamic financial

Despite the unprecedented challenges presented

BIMB is also embarking on a five-year strategy

Moving forward, BIMB will continue to focus on

The cover design highlights BIMB’s reach –

This Integrated Annual Report (IAR) is produced and published

BIMB’s integrated reporting process, as well as the contents of

• International Integrated Reporting Framework (IIRF)

Our f inancial s tatement s for the Financial Year Ended

CAPITALS STRATEGIC PILLARS MATERIAL MATTERS

Financial Manufactured Sustainable Real Customer- Responsible Talent Inclusive

Values-based Community Digitalisation Ethical Practice & Islamic Finance &

Natural Social and

MATERIALITY AND MATERIAL MATTERS FORWARD-LOOKING STATEMENTS

Tan Sri Dr. Ismail Haji Bakar

KEY RISK STAKEHOLDERS

Credit Market Liquidity Operational Investors Employees Government

Information Shariah Non- Regulatory/ Climate Customers Local

6 Message from the Chairman

22 Vision | Mission | TAAT Values

36 Our Approach to Value Creation

A. STRATEGIC REVIEW 160 Corporate Governance Overview Statement

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

IN 2021, WE BECAME THE

TAN SRI DR. ISMAIL HAJI BAKAR

MESSAGE FROM THE CHAIRMAN

Dear Shareholders, ADVANCING PROSPERITY FOR ALL

Our performance translates into an Earnings Per Share (EPS)

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

GREEN FINANCING OUTLOOK

MESSAGE FROM THE CHAIRMAN

COMMITTING TO SUSTAINABILITY We are also helping our customers to transition to greener

During the year, we took major steps to cement our

We carried out a review of the Board succession-planning

PEOPLE AT THE CORE OF OUR

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

MOHD MUAZZAM MOHAMED

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER

Dear Shareholders, resurgence of COVID-19 cases and the

The expansion was supported by

Notwithstanding these challenges, the

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

be a champion in offering Shariah

These targets are anchored by the

MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER

OUR PERFORMANCE SEGMENTAL NET INCOME simplifying our financing process by

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

Financing initiatives beyond renewable

Our Treasury business registered net

Going forward, Treasury will maintain a

MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER

We further extended our mobile

Even as we have grown our digital

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

Digitalisation is also the key in us being

Competition for top talent remains

MESSAGE FROM THE GROUP CHIEF EXECUTIVE OFFICER

A key concern of Islamic finance is to

Key Messages Overview Value Creation MD&A Sustainability Leadership Accountability Financial Additional Information

The projected rebound, however, will customer-centricity at the heart of

OUR BRAND ASSURING TRUST

•• We ensure customer •• We adhere to our •• We strive to •• We are self-driven

• Moderate Economic Recovery Customers Local Communities