Material matters

Evolving landscape and strategic adaptation

In a rapidly evolving operating environment, the banking sector faces heightened expectations from regulators, investors, customers, employees and communities, alongside increasing uncertainty from macroeconomic conditions, technology change and climate and other sustainability-related developments. These shifts influence not only demand for financial services but also the risk landscape and the resilience expected of systemically important institutions. The Bank responds by continuously strengthening its business model, governance and risk management, and by integrating sustainability considerations into strategy and decision-making to support long-term value creation.

Our approach to materiality

Material matters are the issues that can reasonably be expected to influence the decisions of our report users and/or affect the Bank’s ability to create value over the short, medium and long term. Our materiality approach is informed by the principle of decision usefulness: information is prioritised when it has predictive value (helping users anticipate future outcomes) and/or confirmatory value (helping users assess performance against expectations).

We apply a double materiality perspective in this Annual Report by considering two dimensions:

• Financial materiality – Sustainability-related risks and opportunities that could reasonably be expected to affect the Bank's prospects.
• Impact materiality – the Bank’s significant impacts on people and the environment, including through financing activities and operations, which influence stakeholder relationships and social licence to operate.

SLFRS Sustainability Disclosure Standards alignment (2025): Sustainability-related financial disclosures prepared under SLFRS S1/S2 are based on financial materiality. Accordingly, while this “Material matters” section presents our broader double-materiality view for integrated reporting, the Sustainability-related Financial Disclosures focus on financially material sustainability-related risks and opportunities (SRROs), including climate-related risks and opportunities (CRROs).

Integrating material matters into strategy and governance

To ensure effective management of material matters, we integrate them into our strategic planning, performance management and risk governance processes. Accountability for managing material matters is assigned to relevant senior management roles, with oversight through Board and management governance structures. Material matters are embedded into planning, policies and internal controls, and are monitored through Key Performance Indicators (KPIs) and management reporting to support disciplined execution and transparent accountability.

Materiality determination process

Since our initial assessment, we have continuously refreshed our materiality analysis each year, incorporating internal and external inputs and aligning the outcome to strategic priorities, risk management and stakeholder expectations. Inputs include stakeholder engagement, enterprise risk assessments, regulatory developments, market trends, portfolio performance signals, and sustainability-related considerations.

In 2025, the process was strengthened to support first-time adoption of SLFRS Sustainability Disclosure Standards (SLFRS S1/S2), including:

• clearer linkage between the Bank’s material matters and financially material CRROs;
• emphasis on the pathways through which CRROs may translate into financial effects (e.g., credit quality, sector and geographic concentration, operational disruption, access to funding and market confidence); and
• improved connectivity through cross-references between this section and the Sustainability-related Financial Disclosures.

Thematic material matters and value/risk drivers

We present our material matters through six Thematic Material Matters and their corresponding value/risk drivers which are detailed in Table 04 to provide a structured, decision-useful view of how value is created and protected over the short, medium or long term. The tabulation links each driver to the Bank’s strategy, relevant capitals, Sustainability Framework pillars and key management measures, and provides cross-references to related content across the Annual Report. With the first-time application of SLFRS Sustainability Disclosure Standards (SLFRS S1/S2) in 2025, these linkages are enhanced by identifying where material matters connect to financially material CRROs disclosed in the Sustainability-related Financial Disclosures.

Double materiality matrix

Figure 11 illustrates the Bank’s double materiality assessment across two dimensions: financial materiality (impact on the Bank) and impact materiality (impact on people and the environment). The matrix guides the prioritisation of sustainability topics and explains their integration into our strategy, risk governance and reporting, demonstrating alignment with our sustainable value creation model.

In accordance with SLFRS Sustainability Disclosure Standards, sustainability-related financial disclosures are based on financial materiality, while impact materiality is presented to provide a broader stakeholder perspective. As part of the first year of adoption of the SLFRS Sustainability Disclosure Standards this year, disclosures prioritise climate-related risks and opportunities (CRROs), with further enhancements to follow.

Ongoing commitment

We remain committed to reviewing and refining our material matters annually to reflect evolving stakeholder expectations, regulatory developments and global best practice. As our data, methodologies and disclosure maturity develop under SLFRS Sustainability Disclosure Standards (SLFRS S1/S2), we will continue to enhance the depth, consistency and connectivity of our reporting so that material information is not obscured by immaterial detail.

Transforming risks into opportunities

Each identified risk driver, when effectively managed, presents an opportunity to create value, strengthen resilience and support strategic priorities. By integrating material matters into strategy, risk management and performance oversight, the Bank seeks not only to mitigate downside risks but also to improve customer outcomes, enhance operational efficiency, build confidence and support long-term value creation.

Material matters – Holistic view Table – 04

Table 04 presents the Bank’s material matters in a structured format, linking each value/risk driver to the key risks and opportunities, strategic implications, relevant capitals, Sustainability Framework pillar, and principal management measures. For 2025, the table has been refined to strengthen connectivity with financially material CRROs disclosed under SLFRS S1/S2, where applicable Refer Sustainability-related Financial Disclosures.

Note: 2025 SLFRS disclosures prioritise CRROs due to first-year transitional relief.