FACULTY OF BUSINESS AND ADMINISTRATION

BBKI4103

ISLAMIC FINANCIAL MANAGEMENT

SEPTEMBER 2018

NAME : SITI SALWA BINTI ABDUL AZIZ

MATRICULATION NO. : 890509015668002

IDENTITY CARD NO. : 890509-01-5668

TELEPHONE NO. : 012-7892843

E-MAIL : salwa_0905@oum.edu.my

LEARNING CENTRE : OPEN UNIVERSITY MALAYSIA

JOHOR BAHRU
1.0 BACKGROUND OF TWO SELECTED ISLAMIC BANKS

1.1 BANK ISLAM MALAYSIA BERHAD

Bank Islam Malaysia Berhad  is an Islamic bank based in Malaysia that has been in

operation since July 1983. Bank Islam was established primarily to assist
the financial needs of the country's Muslim population, and extended its services to the
broader population. The bank currently provides Shariah-compliant card services and
mobile banking, in addition to traditional banking.

Bank Islam was set up with an initial authorised capital of RM 500 million and paid in

capital of RM 79.9 million; the bank has gradually increased its authorised and paid-in
capital to RM 2 billion and RM 563 million respectively.
1 July 1983 is a date of historic significance. It was when
Bank Islam Malaysian Berhad or Bank Islam, in short, was
officially established, marking the beginning of Islamic
banking not just in Malaysia but also within the ASEAN region.
As the pioneer of the industry, Bank Islam has since set the
benchmark for innovations with a number of groundbreaking
Shariah-based banking products and services. It has grown
from a banking organisation providing purely Islamic banking
products and services to an institution that provides
comprehensive, end-to-end financial solutions. Today, Bank
Islam is transforming the country’s economic landscape,
leading the way in the development of Malaysia as one of the
world’s major Islamic financial hub.

In 1983, we took a bold step to become the first Islamic bank in

Malaysia. Since then, we
have been growing as a full-fledged Islamic banking institution
with more than four million
customers nationwide at present. In addition, we have been
recognised as the source of
Islamic banking reference and guidance, with the responsibility to
grow the industry and
bringing further advancement to the Islamic financial
system.
Right from the start, Bank Islam has lived up to its name
by offering pure Shariah-compliant solutions. Through our
continuous innovations, we offer a diversified range of solutions
that meet our customers’ financial needs. Our structured
operations and capable people are dedicated to delivering
exceptional banking experience to our customers and supporting
them in the moments that matter most. We provide the widest
network of dedicated Islamic banking channels with 147
branches and more than 1,100 self-service terminals nationwide. Through our strict adherence to
Shariah rules and principles,
we have earned a reputation as an ethical and trustworthy
banking institution.

Vision : TO BE A GOBAL LEADER IN ISLAMIC BANKING

Global Leader” is defined as

being the ultimate guidance and
source of reference for innovative
Shariah-based products and
services

mission :
- To continually develop and innovate universally accepted
financial solutions in line with Shariah principles
• To provide a reasonable and sustainable return to
shareholders
• To provide a conducive working environment and to
become an Employer of Choice for top talents in the market
• To deliver comprehensive 􀁬nancial solutions of global
standards using state-of-the-art technology
• To be a responsible and prudent corporate citizen

BUSINESS DIRECTION FOR THE YEAR

Consumer Banking is the core driver of Bank Islam’s business,
contributing over 75% of the Bank’s financing portfolio in 2017.
The Bank’s innovative and sophisticated Islamic banking products
and services are channelled to more than four million customers
throughout a network of 147 branches, more than 1,100 self-service
terminals (“SSTs”), about 400 Personal Financial Executives and an
internet and mobile banking platform.

BANK ISLAM’S
KEY HIGHLIGHTS
The Bank has made real progress towards
, a weekly business
In 2017, the Bank Islam group continued
its progress towards becoming a highperforming
business entity, grounded
in ethics and integrity, and focused on
Triple Bottom Line reporting of People,
Planet and Prosperity. Alhamdulillah,
we once again registered commendable
financial results with 4.9% growth in
revenue and 6.5% increase in Profit before
Zakat and Tax (“PBZT”) through our 3D
strategy for the year.. Overall results were commendable with many Key Performance
Indicators (“KPIs”) achieved. Revenue surpassed the RM3 billion
mark and despite the higher deposit and overhead costs, PBZT for the
financial year ended 31 December 2017 increased by RM46.6 million
or 6.5% from the previous year to hit RM767.1 million.

Consumer Banking is the core driver of Bank Islam’s business,

contributing over 75% of the Bank’s financing portfolio in 2017.
The Bank’s innovative and sophisticated Islamic banking products
and services are channelled to more than four million customers
throughout a network of 147 branches, more than 1,100 self-service
terminals (“SSTs”), about 400 Personal Financial Executives and an
internet and mobile banking platform.