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Bank Islam Opens 100th Branch, Targets a Network of 115 Branches Next Year

Aims to raise service delivery levels even further

Bukit Damansara, Friday [29 January, 2010]: Bank Islam Malaysia Berhad (“Bank Islam”) plans to move aggressively to add 15 new branches in strategic centres across the country by the first half of next year and to increase innovative offerings of products and services.

Bank Islam’s Managing Director Dato’ Sri Zukri Samat announced this at the official opening of its 100th branch at Wisma Bank Islam in Jalan Dungun, Bukit Damansara, officiated by Minister of Finance II Dato’ Seri Ahmad Husni Mohamad Hanadzlah.

He also said: “As we celebrate the official launching of our 100th branch, we are fully aware that as the leader in Islamic banking, compliance with Shariah principles alone is not sufficient. We also understand that our customers whether in rural or urban centres; big corporations or SMEs; will demand for quality in the products and services that Bank Islam offers.”

“The challenge for Bank Islam, therefore, is to remain relevant and competitive and build new capabilities that are innovative and technology-driven in meeting our customer’s needs and preferences. These further dawn upon us the importance of having a value proposition that is not only universal but holistic for the general public from all walks of life regardless of religion, race and culture.”

“In addition to providing the market with the much needed Shariah-based products and services, the Bank is also playing the role to help achieve the objectives of transforming Malaysia into an international hub for Islamic finance,” he added.

Dato’ Sri Zukri also took the opportunity to share with the guests, an insight into the Bank’s transformation and the plans for the future.

He said, “The transformation of Bank Islam began a little over three years ago in October 2006 with the launch of a three-year Turnaround Plan to stop the bleeding and to help return the Bank to the black. After putting the house in order, the ultimate target of the Bank’s blueprint was eventually to ensure sustainable growth and operational excellence. By the end of June 2009, all the performance targets set out under the Turnaround Plan were achieved; helping transform Bank Islam into a sound and adequately capitalised banking institution which is now on a consistent profitability track.”

These achievements have been reflected in the Bank’s key performance indicators as at end June 2009 as follows:

  • The Bank has been on a continuous profitability track since the launch of the Turnaround Plan, which was concluded with a Profit before Zakat & Tax (PBZT) of RM233.1 million as at end June 2009. In the financial year 2008, the PBZT reached a record RM308.3 million, the highest since inception.

  • The Bank’s assets doubled to RM27.5 billion from RM14.4 billion as at end June 2006.

  • The quality of the Bank’s assets improved with the net non-performing financing (NPF) ratio dropping to 4.9% from a peak of 13.6% as at end September 2006

  • Customer deposits jumped by 75% to RM25.2 billion as compared to end June 2006.

  • Overall customer base grew by 52% to 2.8 million customers.

  • The number of Bank Islam’s ATM card holders increased by more than 100% to 1.93 million as compared to 954, 493 as at end June 2006.

  • The number of Bank Islam Card holders almost tripled to 428, 917 as compared to 144, 495 as at end June 2006.

  • Net financing assets grew by 11.8% mainly thanks to consumer financing as compared to end June 2006.

Dato’ Sri Zukri said the Bank, building on the success of the Turnaround Plan, has drawn up a Sustainable Growth Plan, the Bank’s new three-year blueprint that was set in motion in July 2009.

“The goal is to foster above-par organic growth and strengthen our domestic anchorage, in line with our mission to be the global leader in Islamic banking,” he added.

The Sustainable Growth Plan will be driven by six pillars of growth. Top of the list of the six pillars is Business Innovation. This will be followed by Robust Risk Management; Strengthening our Enabling Infrastructure, Building Capability and capacity, Franchise Development and Inorganic Growth and Corporate Expansion.

About the 100th branch
The Bukit Damansara branch is strategically located within the premier commercial heart of Bukit Damansara which is regarded as the address of many affluent and high net worth individuals.

The 3,765 square foot branch offers the convenience of four-teller workstations, a waiting lounge complete with plush sofa, a large screen TV, ample parking spaces and round-the-clock self-service terminals. It offers a wide array of Shariah compliant products and services.

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