Synergy is Our Core SINERGI TERAS KITA LAPORAN TAHUNAN 2015 ANNUAL REPORT

Transcription

1 Synergy is Our Core SINERGI TERAS KITA LAPORAN TAHUNAN 2015 ANNUAL REPORT

2 Integrating diverse Shariah-compliant financial products and services, BIMB Holdings Bhd has been a core of strength for Malaysia s Islamic financial industry since its inception. The diverse businesses forge a dynamic synergy in advancing the industry as a whole; filling in market demand gaps via an array of seamless solutions. Anchored by its subsidiaries in Islamic banking, takaful and stockbroking services, the Group continues to resiliently stay the course through the challenging times that lie ahead.

3 19 th Annual General Meeting Ballroom 3, Sime Darby Convention Center, 1A, Jalan Bukit Kiara 1, Kuala Lumpur Wednesday, 1 June 2016 at a.m. Contents OVERVIEW Highlights at a Glance 4 5-Year Group Financial Highlights 6 Corporate Profile 8 Corporate 10 Group Corporate Structure PERSPECTIVES 34 Letter to Shareholders 48 Statement of Intent on Sustainability 52 Corporate Responsibility 64 Group Corporate Events Calendar SHAREHOLDERS INFORMATION 254 Properties Owned by BHB Group 261 Share and Warrant Holdings Statistics 269 Regional Group Network LEADERSHIP 14 Board of Directors 16 Group Management Committee 20 Our Team ACCOUNTABILITY 74 Statement of Corporate Governance 96 Audit and Examination Committee Report 100 Statement on Risk Management and Internal Control 106 Additional Compliance 110 Statement on Directors Responsibility 270 Notice of 19 th Annual General Meeting 274 Statement Accompanying Notice of 19 th Annual General Meeting Form of Proxy 19 TH AGM INFORMATION MILESTONES AND ACHIEVEMENTS FINANCIAL STATEMENTS 26 Media Highlights 30 Awards and Accolades of the Group 112 Directors Report 117 Statements of Financial Position 119 Statements of Profit or Loss and Other Comprehensive Income 121 Statements of Changes in Equity 124 Statements of Cash Flows 126 Notes to the Financial Statements 250 Statement by Directors 251 Statutory Declaration 252 Independent Auditors Report

4 2015 Highlights BANK ISLAM at a Glance TAKAFUL MALAYSIA

5 CORPORATE RESPONSIBILITY MALAYSIA S PREMIER SHARIAH COMPLIANT FINANCIAL SERVICES GROUP THE ONLY PUBLIC LISTED ISLAMIC FINANCIAL HOLDING COMPANY IN MALAYSIA FIRST ISLAMIC BANK IN MALAYSIA BIMB SECURITIES FIRST AND ONLY LISTED TAKAFUL OPERATOR IN MALAYSIA FIRST AND ONLY FULL-FLEDGED SHARIAH- COMPLIANT STOCKBROKING COMPANY IN MALAYSIA

6 We continue to make steady progress by focusing on the H2E 6 Pillars Awarded in FOUR categories: 144 Branches i. Robust Organic Growth ii. Service Excellence iii. Shariah-led Innovation iv. Resource Optimisation v. Being an Employer of Choice vi. Regionalisation Islamic Bank of the Year Best Banking Product Innovation in Retail Banking Best Customer Service Provider and more than 1,100 self-service terminals across the country BANK ISLAM CORPORATE RESPONSIBILITY LAUNCHED SKIM LATIHAN 1MALAYSIA PROGRAMME BANK ISLAM PAID OUT RM 12,746,625 ZAKAT TO ALL 14 STATES Takaful Malaysia channelled RM 164,129 zakat funds THE 1 ST BEST TAKAFUL TAKAFUL BIMB THE 1 AND ONLY LISTED TAKAFUL OPERATOR IN MALAYSIA NAMED THE COMPANY IN MALAYSIA AWARDED THE BEST PERFORMING STOCK HIGHEST RETURNS TO SHAREHOLDERS MALAYSIA SECURITIES ST 16 % increase in Gross Brokerage Income Launched the Mobile trading application TAKAFUL MALAYSIA OPENED 3 NEW TAKAFUL MYCARE CENTRES now 23 service centres nationwide. for three consecutive years at the International Takaful Awards Over Three Years under the Finance Sector at the Edge Billion Ringgit Club Corporate Awards 2013 AND ONLY SHARIAH-COMPLIANT STOCKBROKING COMPANY IN MALAYSIA for its Internet Trading platform, BISonline, on Android and Apple IOS

7 Overview Leadership Milestones and Achievements Perspectives 5-YEAR GROUP FINANCIAL HIGHLIGHTS FINANCIAL YEAR ENDED 31 DECEMBER RESTATED RESTATED STATEMENT OF COMPREHENSIVE INCOME Revenue RM 000 3,310,607 2,967,473 2,809,395 2,473,953 2,078,979 Profit Before Zakat and Taxation (PBZT) RM , , , , ,924 Net Profit Attributable to Owners of the Company RM , , , , ,642 STATEMENT OF FINANCIAL POSITION Share Capital RM 000 1,542,210 1,493,506 1,493,506 1,066,790 1,066,790 Shareholders Equity RM 000 3,413,658 2,949,037 2,810,337 2,080,775 1,869,847 Deposits from Customers RM ,118,529 40,678,379 36,924,367 32,379,000 28,208,203 Takaful Liabilities RM 000 6,588,888 6,323,577 6,082,001 5,580,755 5,124,602 Financing, Advances and Others RM ,294,690 29,524,571 23,740,948 19,507,799 14,161,837 Marketable Securities RM ,110,375 15,528,737 18,409,143 19,162,529 16,311,797 Total Assets RM ,363,828 53,030,205 49,674,545 43,939,909 38,246,388 PROFIT BEFORE ZAKAT AND TAXATION (RM 000) , , , , ,436 SHAREHOLDERS EQUITY (RM 000) 11 1,869, ,080, ,810, ,949, ,413,658 DEPOSITS FROM CUSTOMERS (RM 000) 11 28,208, ,379, ,924, ,678, ,118,529 FINANCING, ADVANCES AND OTHERS (RM 000) 11 14,161, ,507, ,740, ,524, ,294,690 4 BIMB HOLDINGS BERHAD Annual Report 2015

8 Accountability Financial Statements Shareholders 19 th AGM FINANCIAL YEAR ENDED 31 DECEMBER RESTATED RESTATED PER SHARE DATA Earnings Per Share sen Net Assets Per Share RM BALANCE SHEET STRENGTH Net Financing and Advances over Customer Deposits % Gross Non-Performing Financing Ratio (Gross NPF Ratio)* % Net NPF Ratio** % (0.83) (0.82) (0.91) (0.67) (0.17) EFFICIENCY Return on Equity % Return on Assets % DIVIDENDS Gross Dividend Per Share sen Net Dividend Per Share sen VALUATION Price Earnings Ratio times Market Capitalisation RM 000 5,906,663 6,078,569 6,780,517 2,997,680 2,165,583 Notes: * Gross Impaired Ratio = Gross Impaired Financing and Advances/Gross Financing and Advances ** Net Impaired Ratio = (Gross Impaired Financing and Advances Impairment Allowances)/(Gross Financing and Advances Impairment Allowances) EARNINGS PER SHARE (SEN) NET ASSETS PER SHARE (RM) BIMB HOLDINGS BERHAD Annual Report

9 Overview Leadership Milestones and Achievements Perspectives CORPORATE PROFILE BIMB HOLDINGS BERHAD BIMB Holdings Berhad ( BHB ) is a dynamic financial holding company with an extensive portfolio of diversified businesses across the Islamic financial industry. The company focuses its investment in Shariah-compliant business entities, with involvement in Islamic banking, takaful business and stockbroking activities. Established on 20 March 1997, BHB was listed on the Main Market of Bursa Malaysia on 16 September The company has an authorised capital of RM2 billlion and paid-up capital of more than RM1.5 billion. Through its main holding portfolio of Bank Islam Malaysia Berhad, Syarikat Takaful Malaysia Berhad and BIMB Securities Sdn Bhd, BHB Group serves million customers across Malaysia. These investments and active participations in developing pioneering Shariah-based institutions have led the company to be acknowledged as the country s premier Shariah-compliant financial services provider. Over the years, BHB has contributed significantly to the tremendous growth of the Islamic financial industry in Malaysia. Aligning itself strategically to maximise marketplace opportunities and the company s potential, BHB is well-positioned to assist the Government s aspirations to establish the country as a vibrant International Islamic Financial Centre. BIMB Holdings Berhad ( BHB ) was established on 20 March 1997 and listed on the Main Market of Bursa Malaysia on 16 September SYARIKAT TAKAFUL MALAYSIA BERHAD Syarikat Takaful Malaysia Berhad ( Takaful Malaysia ) was incorporated on 29 November The current authorised and paid-up capital of Takaful Malaysia stands at RM500 and RM163 million respectively. Operations commenced on 22 July 1985 prior to its official launching on 2 August 1985 by the then Prime Minister of Malaysia, Tun Dr Mahathir Mohamed. The incorporation of Takaful Malaysia was based on the recommendations of the Task Force on the Study for the Establishment of an Islamic Insurance Company in Malaysia (Task Force) set up by the Government of Malaysia in The Task Force in its report concluded that a Takaful company based on the principle of al-mudharabah would be viable as the participants would have the opportunity to save, invest and earn profits based on this principle. Takaful Malaysia was transformed into a public limited company on the 30 July 1996 followed with the listing of its shares on the Main Board (now known as Main Market ) of Bursa Malaysia Securities Berhad. The capital was then raised to RM55 million and since then further enhanced after the restructuring exercise which ended in 2003 resulting in the paid up capital currently standing at RM163 million. BIMB Holdings Berhad ( BHB ) is the major shareholder of Takaful Malaysia. Under the BHB Group, Bank Islam Malaysia Berhad ( Bank Islam ) the first Islamic bank of Malaysia is a 100% owned subsidiary of BHB. Apart from banking and takaful, the BHB Group has interests in stock broking, venture capital, unit trusts and off-shore banking. In a way, BHB Group has been the catalyst in actively developing not only Islamic banking and takaful but also the Islamic capital market. 6 BIMB HOLDINGS BERHAD Annual Report 2015

10 Accountability Financial Statements Shareholders 19 th AGM BANK ISLAM MALAYSIA BERHAD Bank Islam Malaysia Berhad ( Bank Islam ) is the first Shariah based banking institution in Malaysia and South East Asia; and has been playing the leading role in the development of the nation s Islamic banking industry. In fact, it has provided technical assistance in the setting up of several Islamic institutions in the Asian region such as Indonesia, Thailand and Sri Lanka. Incorporated in 1983, it was originally established with the sole purpose of assisting with the financial needs of the Muslim population of Malaysia. Since then, Bank Islam has extended its services to the wider, non- Muslim, population fulfilling its Banking-for-All principle. Today, with over 70 innovative and sophisticated Islamic banking products and services, Bank Islam offers a comprehensive range of Shariah compliant banking and financial solutions to its more than five million customers. Primarily a retail bank with consumer banking constituting more than 70% of total financing, Bank Islam s list of products ranges from the traditional financing, savings and investment solutions exclusively for individual customers, to banking and financial solutions designed to fulfil the fast-changing financial needs of customers from all categories including those related to micro financing, wealth management, capital market, treasury and structured products. The variety of financial services offered by the Bank has come a long way since its early days when it acted as the lead arranger for the world s first Sukuk issuance of RM125 million in 1990 by Shell MDS Sdn Bhd. In serving its ever expanding customer base, Bank Islam currently has the widest dedicated Islamic banking network in Malaysia with 144 branches and more than 1,000 self-service terminals nationwide. A pioneer in the industry, Bank Islam believes in the importance of innovation and has produced some of the most innovative banking solutions for the market. A strong advocator of ethical and responsible financing, Bank Islam s pioneering status has also given it an advantage by having a strong brand name and franchise that significantly differentiates it from its competitors creating an appealing image of being the purest Islamic bank which has attracted and continued to attract a growing, loyal customer base. In addition, the Bank has always been committed to corporate social responsibility, not just by giving back to the community in which it operates but the Islamic finance industry as a whole through knowledge sharing and becoming the source of reference for the industry. In the recent years, the Bank not only had exhibited significant improvements in terms of financial performance but applied robust risk management as well to ensure sustainable of growth. Bank Islam s vision to become A Global Leader in Islamic Banking illustrates its commitment to the expansion of Malaysia s brand of Islamic finance into the global markets. By placing importance to the service excellence culture, Bank Islam continues to offer only the best and cater to the differing needs of the customers as it strives to uphold its status as the symbol of Islamic banking in Malaysia. BIMB SECURITIES SDN BHD BIMB Securities Sdn Bhd ( BIMB Securities ), established in 1994, is the first and only full-fledged Shariah-compliant stockbroking company in Malaysia. As a participating organisation of Bursa Malaysia ( Bursa ), BIMB Securities principal activities are dealing in listed securities and other related permitted activities. The Company provides an avenue for the investing public to trade in Shariah-compliant securities that have been approved by the Shariah Advisory Council of the Securities Commission ( SC ). In addition, BIMB Securities offers share margin financing, investment advisory, nominees and custodian services, corporate advisory, underwriting as well as placement services. BIMB Securities is a registered Shariah Adviser under Securities Commission and has been offering Shariah advisory services for Islamic capital market products ( ICM ) such as Islamic investment funds, Sukuk issuance and other approved ICM instruments for more than 10 years. Its services are provided at a competitive fee, catering particularly for fund managers who do not have in-house Shariah advisers as well as companies that seek third-party opinions on Shariah-related matters. BIMB HOLDINGS BERHAD Annual Report

11 Overview Leadership Milestones and Achievements Perspectives CORPORATE INFORMATION BOARD OF DIRECTORS Tan Sri Samsudin Osman Chairman/Non-Independent Non-Executive Director Tan Sri Ismail Adam Senior Independent Non-Executive Director Tan Sri Ismee Ismail Non-Independent Non-Executive Director (ceased office w.e.f. 9 October 2015) Dato Johan Abdullah Non-Independent Non-Executive Director (ceased office w.e.f. 17 February 2016) Datuk Zaiton Mohd Hassan Independent Non-Executive Director Datuk Rozaida Omar Non-Independent Non-Executive Director Encik Mohd Zin Idris Non-Independent Non-Executive Director Puan Rifina Md Ariff Non-Independent Non-Executive Director GROUP CEO Dato Sri Zukri Samat COMPANY SECRETARY Puan Maria Mat Said (LS ) AUDIT & EXAMINATION COMMITTEE Datuk Zaiton Mohd Hassan Chairman Tan Sri Ismail Adam Encik Mohd Zin Idris Encik Mohd Tarmidzi Ahmad Nordin NOMINATION & ASSESSMENT COMMITTEE Tan Sri Ismail Adam Chairman Tan Sri Ismee Ismail (ceased office w.e.f. 9 October 2015) Datuk Zaiton Mohd Hassan Encik Mohd Zin Idris (appointed w.e.f. 8 January 2016) Datuk Rozaida Omar (appointed w.e.f. 8 January 2016) Encik Mohd Tarmidzi Ahmad Nordin (appointed w.e.f. 8 January 2016) Encik Mohd Tarmidzi Ahmad Nordin Independent Non-Executive Director (appointed w.e.f 29 June 2015) Puan Noraini Che Dan Independent Non-Executive Director (appointed w.e.f. 1 April 2016) 8 BIMB HOLDINGS BERHAD Annual Report 2015

12 Accountability Financial Statements Shareholders 19 th AGM REMUNERATION COMMITTEE Tan Sri Ismail Adam Chairman Tan Sri Ismee Ismail (ceased office w.e.f. 9 October 2015) Datuk Zaiton Mohd Hassan Encik Mohd Zin Idris (appointed w.e.f. 8 January 2016) Datuk Rozaida Omar (appointed w.e.f. 8 January 2016) Encik Mohd Tarmidzi Ahmad Nordin (appointed w.e.f. 8 January 2016) SHARIAH SUPERVISORY COUNCIL, BANK ISLAM MALAYSIA BERHAD Professor Dato Dr Ahmad Hidayat Buang Chairman Dr Ahmad Sobri Salamon Dr Uzaimah Ibrahim Dr Muhammad Syafii Antonio Dr Yasmin Hanani Mohd Safian Encik Mohd Nazri Chik Secretary Encik Muhammad Zahid Abdul Aziz Subject Matter Expert SHARIAH ADVISORY BODY, SYARIKAT TAKAFUL MALAYSIA BERHAD Dr Ahmad Sobri Salamon Chairman Dato Mohd Bakir Hj Mansor Dr Aida Othman (ceased office w.e.f. 1 April 2016) Professor Dr Muhamad Rahimi Osman Dato Wan Mohamad Dato Sheikh Abdul Aziz Dr Ahmad Sufian Che Abdullah (appointed w.e.f. 1 July 2015) Dr Marhanum Che Mohd Salleh (appointed w.e.f. 1 February 2016) SHARIAH ADVISORY COMMITTEE, BIMB SECURITIES SDN BHD Dato Mohd Bakir Haji Mansor Chairman Professor Emeritus Dato Paduka Dr Mahmood Zuhdi Hj Abdul Majid Ir Dr Muhamad Fuad Abdullah CEOs IN THE GROUP Dato Sri Zukri Samat Group Chief Executive Officer, BIMB Holdings Berhad; Managing Director, Bank Islam Malaysia Berhad Dato Sri Mohamed Hassan Md Kamil Group Managing Director, Syarikat Takaful Malaysia Berhad Encik Rashid Ismail Chief Executive Officer, BIMB Securities Sdn Bhd AUDITORS KPMG Desa Megat & Co. (AF0759) Level 10, KPMG Tower 8, First Avenue, Bandar Utama Petaling Jaya Selangor Darul Ehsan REGISTERED OFFICE BIMB Holdings Berhad ( X) 31 st Floor, Menara Bank Islam No. 22, Jalan Perak Kuala Lumpur Tel: Fax: SHARE REGISTRAR Symphony Share Registrars Sdn Bhd Level 6, Symphony House Pusat Dagangan Dana 1, Jalan PJU 1A/ Petaling Jaya Selangor Darul Ehsan Tel: Fax: STOCK EXCHANGE LISTING Main Market of Bursa Malaysia Securities Berhad 16 September 1997 Stock Short Name: BIMB Stock Number: 5258 BIMB HOLDINGS BERHAD Annual Report

13 Overview Leadership Milestones and Achievements Perspectives GROUP CORPORATE STRUCTURE 53.63% 12.92% 5.89% 5.88% 5.43% OTHER 16.25% NOTES: Shareholding structure as at 31 March Core Business Units Other Business Units Associate/Investment 10 BIMB HOLDINGS BERHAD Annual Report 2015

14 Accountability Financial Statements Shareholders 19 th AGM 100% 100% Syarikat Al-Ijarah Sdn Bhd SUBSIDIARIES OF CORE BUSINESS UNITS 100% BIMB Investment Management Bhd 100% BIMB Foreign Currency Clearing Agency Sdn Bhd (under members voluntary liquidation) 100% Al-Wakalah Nominees (Tempatan) Sdn Bhd 100% Farihan Corporation Sdn Bhd 100% Bank Islam Trust Co (Labuan) Ltd 100% BIMB Offshore Company Management Services Sdn Bhd 60.31% 48% 42.73% Islamic Banking & Finance Institute Malaysia Sdn Bhd (under members voluntary liquidation) SUBSIDIARIES OF CORE BUSINESS UNITS 63.09% Asean Retakaful International (L) Ltd (under members voluntary liquidation) 56.00% PT Syarikat Takaful Indonesia 57.24% PT Asuransi Takaful Keluarga 52.67% PT Asuransi Takaful Umum 100% 51% 49% SUBSIDIARIES OF CORE BUSINESS UNITS 100% BIMSEC Nominees (Tempatan) Sdn Bhd 100% BIMSEC Nominees (Asing) Sdn Bhd BIMB HOLDINGS BERHAD Annual Report

15 ILLUMINATING VALUES

16 Staying true to Islamic principles, we have established ourselves as a responsible, professional and caring corporation with an extensive network that maintains the highest level of integrity.

17 PROFIT BEFORE ZAKAT AND TAXATION 2.3 % TOTAL: RM834.4 MILLION

18 MALAYSIA S PREMIER SHARIAH-COMPLIANT FINANCIAL SERVICES GROUP The ONLY public listed Islamic Financial Holding Company in Malaysia First Islamic BANK in Malaysia First and only listed TAKAFUL operator in Malaysia First and only full-fledged Shariahcompliant stockbroking company in Malaysia

19 Overview Leadership Milestones and Achievements Perspectives BIMB HOLDINGS BERHAD Annual Report 2015

20 Accountability Financial Statements Shareholders 19 th AGM profile of directors BIMB HOLDINGS BERHAD Annual Report

21 Overview Leadership Milestones and Achievements Perspectives Tan Sri Samsudin Osman Chairman/Non-Independent Non-Executive Director 69 years old Malaysian Date of Appointment: 1 February 2007 Qualifications: Master, Public Administration, Pennsylvania State University (USA) Bachelor of Arts (Hons), University of Malaya Diploma in Public Administration, University of Malaya Areas of Expertise: Public Administration & Fund Management Working Experiences & Occupations: Present: Chairman, Employees Provident Fund ( EPF ) Board and EPF Investment Panel Chairman, Universiti Utara Malaysia Chairman, BIMB Holdings Berhad Chairman, Sime Darby Industrial Holdings Sdn Bhd Previous: President, Perbadanan Putrajaya Chief Secretary, Malaysian Government Secretary General, Ministry of Home Affairs Secretary General, Ministry of Domestic Trade and Consumer Affairs Directorship of Public Companies: Sime Darby Berhad Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: 9 of 9 Board Meetings held in the Financial Year Ended 31 December 2015 Declaration of Interest: He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee Director of Lembaga Tabung Haji. He has not been convicted of any offence within the past 10 years. 14 BIMB HOLDINGS BERHAD Annual Report 2015

22 Accountability Financial Statements Shareholders 19 th AGM Tan Sri Ismail Adam Senior Independent Non-Executive Director 65 years old Malaysian 02 Date of Appointment: 3 January 2011 Qualifications: Master of Arts (Economics), Vanderbilt University (USA) Bachelor of Arts (Hons), University of Malaya Diploma in Public Administration (Post-Baccalaureate Diploma), University of Malaya Advanced Management Program, Harvard Business School Areas of Expertise: Public Administration & Management Human Resources Management Working Experiences & Occupations: Present: Chairman, Syarikat Prasarana Negara Berhad Advisor, Hay Group Sdn Bhd Previous: Director General, Public Service, Malaysia Secretary General, Ministry of Health Director General, National Productivity Corporation Senior Project Officer, National Institute of Public Administration ( INTAN ) Assistant Director, Trade for Ministry of Trade and Industry Directorship of Public Companies: Westports Holdings Berhad Membership of Board Committees in BIMB Holdings Berhad: Chairman, Nomination & Assessment Committee Chairman, Remuneration Committee Member of Audit & Examination Committee Meeting Attendance: 9 of 9 Board Meetings held in the Financial Year Ended 31 December 2015 Declaration of Interest: He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past 10 years. BIMB HOLDINGS BERHAD Annual Report

23 Overview Leadership Milestones and Achievements Perspectives Datuk Zaiton Mohd Hassan Independent Non-Executive Director 60 years old Malaysian Date of Appointment: 2 February 2006 Qualifications: Fellowship of Association of Chartered Certified Accountants ( ACCA ), United Kingdom Member, Malaysian Institute of Accountants ( MIA ) Member, Malaysian Institute of Certified Public Accountants ( MICPA ) Areas of Expertise: Banking, Accounting and Finance Working Experiences & Occupations: Present: Managing Director, Capital Intelligence Advisors Sdn Bhd Chairman, Private Pension Administrator Malaysia Previous: President/Executive Director, Malaysian Rating Corporation Berhad ( MARC ) Served 12 years with Maybank in various senior positions including that of General Manager, Group Strategic Planning Fund Manager, Bapema Corporation Sdn Bhd Project Officer, Bank Pembangunan (M) Bhd Audit Trainee, PricewaterhouseCoopers Directorship of Public Companies: Bank Islam Malaysia Berhad Sime Darby Berhad Dolphin International Berhad Membership of Board Committees in BIMB Holdings Berhad: Chairman, Audit and Examination Committee Member, Nomination and Assessment Committee Member, Remuneration Committee Meeting attendance: 8 of 9 Board Meetings held in the Financial Year Ended 31 December 2015 Declaration of Interest: She does not have any family relationship with any director and/or major shareholder of BHB nor does she have any conflict of interest with BHB. She has not been convicted of any offence within the past 10 years. 14 BIMB HOLDINGS BERHAD Annual Report 2015

24 Accountability Financial Statements Shareholders 19 th AGM Dato Johan Abdullah Non-Independent Non-Executive Director 60 years old Malaysian 04 Date of Appointment: 17 February 2015 (ceased office w.e.f. 17 February 2016) Qualifications: MBA (Finance), Morehead State University (USA) BBA (Finance), Eastern Michigan University (USA) Diploma in Banking, University Technology MARA (Malaysia) Areas of Expertise: Regulatory Compliance, Corporate Finance and Investment Banking Working Experiences & Occupations: Present: Deputy Group Managing Director and Chief Executive Officer, Lembaga Tabung Haji Previous: Group Managing Director/Chief Executive Officer, BIMB Holdings Berhad Deputy Chief Regulatory Officer, Group Regulation, Bursa Malaysia Berhad Head, Issues and Listing, Bursa Malaysia Berhad Senior Vice President, Securities Issue, Bursa Malaysia Berhad Vice President, Listing, Bursa Malaysia Berhad General Manager, Corporate Planning, Damansara Realty Berhad Directorship of Public Companies: Edra Global Energy Berhad (formerly known as 1MDB Energy Group Berhad) TH Plantations Berhad TH Heavy Engineering Berhad Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: 6 of 8 Board Meetings held in the Financial Year Ended 31 December 2015 Declaration of Interest: He has no family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past 10 years. BIMB HOLDINGS BERHAD Annual Report

25 Overview Leadership Milestones and Achievements Perspectives Datuk Rozaida Omar Non-Independent Non-Executive Director 53 years old Malaysian Date of Appointment: 1 December 2009 Qualifications: Member, Association of Chartered Certified Accountants ( ACCA ) UK A-Level, Birkenhead College, United Kingdom Areas of Expertise: Accounting and Finance Working Experiences & Occupations: Present: Group Chief Financial Officer, Lembaga Tabung Haji Previous: Finance Director, Glaxo SmithKline Consumer Healthcare Sdn Bhd Finance Manager, Guthrie Trading Sdn Bhd Credit Manager, Citibank Berhad Financial Accountant, Felda Membership of Board Committees in BIMB Holdings Berhad: Member, Nomination & Assessment Committee Member, Remuneration Committee Meeting Attendance: 9 of 9 Board Meetings held in the Financial Year Ended 31 December 2015 Declaration of Interest: She does not have any family relationship with any director and/or major shareholder of BHB nor does she have any conflict of interest with BHB except by virtue of being a nominee Director of Lembaga Tabung Haji. She has not been convicted of any offence within the past 10 years. Directorship of Public Companies: Syarikat Takaful Malaysia Berhad Pelikan International Corporation Berhad TH Heavy Engineering Berhad Putrajaya Perdana Berhad 14 BIMB HOLDINGS BERHAD Annual Report 2015

26 Accountability Financial Statements Shareholders 19 th AGM Encik Mohd Zin Idris Non-Independent Non-Executive Director 72 years old Malaysian 06 Date of Appointment: 20 September 2002 Qualifications: Senior Cambridge Certificate Areas of Expertise: Banking & Finance Working Experiences & Occupations: Present: None Previous: Executive Director/Chief Executive Officer, Inter-City MPC (M) Sdn Bhd General Manager, Commercial Banking, Malayan Banking Berhad Assistant General Manager, Malayan Banking Berhad Deputy Zone Head, Head Officer, Malayan Banking Berhad Area Manager, Malayan Banking Berhad Branch Manager, Malayan Banking Berhad Assistant Branch Manager, Malayan Banking Berhad Trainee Officer, Malayan Banking Berhad Directorship of Public Companies: Bank Islam Malaysia Berhad Membership of Board Committees in BIMB Holdings Berhad: Member, Audit and Examination Committee Member, Nomination & Assessment Committee Member, Remuneration Committee Meeting Attendance: 8 of 9 Board Meetings held in the Financial Year Ended 31 December 2015 Declaration of Interest: He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past 10 years. BIMB HOLDINGS BERHAD Annual Report

27 Overview Leadership Milestones and Achievements Perspectives Encik Mohd Tarmidzi Ahmad Nordin Independent Non-Executive Director 61 years old Malaysian Date of Appointment: 29 June 2015 Qualifications: Associate, Chartered Insurance Institute (UK) ( ACII ) Associate, Malaysian Insurance Institute ( AMII ) MBA in Islamic Finance, International Islamic University Malaysia ( IIUM ) Areas of Expertise: Insurance & Takaful Working Experiences & Occupations: Present: None Previous: Chief Executive Officer, Etiqa Takaful Berhad Associate Lecture, Malaysia Insurance Institute Director, Graham Miller (M) Sdn Bhd Head, General Takaful Division, Syarikat Takaful Malaysia Berhad Business Manager, Jerneh Insurance Sdn Bhd Branch Manager, Progressive Insurance Sdn Bhd Account Executive, Lowndes Lambert Sdn Bhd Directorship of Public Companies: Syarikat Takaful Malaysia Berhad Membership of Board Committees in BIMB Holdings Berhad: Member, Audit & Examination Committee Member, Nomination & Assessment Committee Member, Remuneration Committee Meeting Attendance: 4 of 4 Board Meetings held in the Financial Year Ended 31 December 2015 Declaration of Interest: He has no family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past 10 years. 14 BIMB HOLDINGS BERHAD Annual Report 2015

28 Accountability Financial Statements Shareholders 19 th AGM Puan Rifina Md Ariff Non-Independent Non-Executive Director 49 years old Malaysian 08 Date of Appointment: 1 April 2014 Qualifications: Bachelor of Arts (Hons) Accounting & Financial Analysis, University of Newcastle Upon-Tyne, UK Areas of Expertise: Corporate Finance Working Experiences & Occupations: Present: Senior General Manager, Corporate Finance & Services, Lembaga Tabung Haji Previous: Assistant Vice President, Affin Merchant Bank Berhad Senior Manager, Amanah Saham Mara Berhad Senior Officer, Permata Merchant Bank Berhad Directorship of Public Companies: None Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: 8 of 9 Boards Meeting held in the Financial Year Ended 31 December 2015 Declaration of Interest: She does not have any family relationship with any director and/or major shareholder of BHB nor does she have any conflict of interest with BHB except by virtue of being a nominee Director of Lembaga Tabung Haji. She has not been convicted of any offence within the past 10 years. BIMB HOLDINGS BERHAD Annual Report

29 Overview Leadership Milestones and Achievements Perspectives Puan Noraini Che Dan Independent Non-Executive Director 60 years old Malaysian Date of Appointment: 1 April 2016 Qualifications: BA Econs (Hons), University of Manchester, United Kingdom Member of the Malaysian Institute of Certified Public Accountants ( MICPA ) Member, Malaysian Institute of Accountants ( MIA ) Areas of Expertise: Accounting and Finance Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: None Declaration of Interest: She does not have any family relationship with any director and/or major shareholder of BHB nor does she have any conflict of interest with BHB. She has not been convicted of any offence within the past 10 years. Working Experiences & Occupations: Previous: Vice President, Finance, MISC Berhad Served 15 years with Perbadanan Nasional Berhad ( PERNAS ) in various senior positions including that of Group General Manager, Finance Senior Auditor, Hanafiah, Raslan & Mohamed Directorship of Public Companies: SP Setia Berhad Tenaga Nasional Berhad 14 BIMB HOLDINGS BERHAD Annual Report 2015

30 Accountability Financial Statements Shareholders 19 th AGM Puan Maria Mat Said Company Secretary 49 years old Malaysian 10 Date of Appointment: 31 December 2009 Qualifications: Bachelor of Law, University of Malaya Working Experiences & Occupations: Present: Group Company Secretary & Regulatory Compliance, BIMB Holdings Berhad Senior General Manager, Legal & Secretarial Division, Bank Islam Malaysia Berhad Previous: Senior Vice President, Compliance & Service Standards Division, Tahan Insurance Malaysia Berhad Secretary to the Board of Directors, LOFSA Manager, Development & Promotions, LOFSA Manager, Legal, Danamodal Nasional Berhad Company Secretary, Danamodal Nasional Berhad Senior Legal Officer, Legal Department, Bank Negara Malaysia Directorship of Public Companies: None Membership of Board Committees in BIMB Holdings Berhad: Secretary, Audit & Examination Committee Secretary, Nomination & Assessment Committee Secretary, Remuneration Committee Secretary, Board of Directors Meeting Attendance: None Declaration of Interest: She does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. She has not been convicted of any offence within the past 10 years. BIMB HOLDINGS BERHAD Annual Report

31 Overview Leadership Milestones and Achievements Perspectives GROUP MANAGEMENT COMMITTEE Dato Sri Zukri Samat Group Chief Executive Officer, BIMB Holdings Berhad Managing Director, Bank Islam Malaysia Berhad 58 years old Malaysian Date of Appointment: 18 February 2015 Qualifications: Honorary Doctorate (PhD) in Finance and Islamic Banking, Kolej Universiti INSANIAH MBA (Finance), University of Hull, United Kingdom Areas of Expertise: Finance & Islamic Banking Working Experiences & Occupations: Present: Group Chief Executive Officer, BIMB Holdings Berhad Managing Director, Bank Islam Malaysia Berhad Previous: Executive Director, Khazanah Nasional Berhad Managing Director, Pengurusan Danaharta Nasional Berhad General Manager, Credit Agricole Indosuez Deputy General Manager, Commerce International Merchant Bank Berhad Senior Account Officer, Pacific Bank Berhad Senior Account Officer, Public Bank Berhad (Corporate Banking) Credit Officer, Bank Bumiputra Malaysia Berhad Directorship of Public Companies: Bank Islam Malaysia Berhad BIMB Investment Management Berhad Asian Institute of Finance Berhad Declaration of Interest: He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past 10 years. 16 BIMB HOLDINGS BERHAD Annual Report 2015

32 Accountability Financial Statements Shareholders 19 th AGM Dato Sri Mohamed Hassan Md Kamil Group Managing Director, Syarikat Takaful Malaysia Berhad 53 years old Malaysian Date of Appointment: 1 April 2007 as Group Managing Director and 1 September 2006 as Non-Independent Non-Executive Director Qualifications: Fellow, Society of Actuaries, USA Fellow, Actuarial Society of Malaysia Chartered Life Underwriter, American College, United States MBA, University of Iowa, United States Bachelor of Science in Actuarial Science, University of Iowa, United States Areas of Expertise: Actuarial and Insurance/Takaful Working Experiences & Occupations: Present: Group Managing Director, Takaful Malaysia Chairman of the Board of Commissioners, P.T. Syarikat Takaful Indonesia and P.T. Asuransi Takaful Keluarga Previous: Vice President Actuarial/Finance, AIA Regional Office Deputy General Manager (Acting General Manager), P.T. AIA Indonesia Senior Vice President and Chief Actuary, ING Insurance Berhad Deputy General Manager, Malaysia National Insurance Consultant, Towers Perrin, United States Assistant Vice President, Travelers Insurance, United States Actuarial Executive, American Life Insurance Company ( ALICO ), United States Directorship of Public Companies: Syarikat Takaful Malaysia Berhad Declaration of Interest: He does not have any family relationship with any director and/or major shareholder of Takaful Malaysia nor does he have any conflict of interest with Takaful Malaysia. He has not been convicted of any offence within the past 10 years. BIMB HOLDINGS BERHAD Annual Report

33 Overview Leadership Milestones and Achievements Perspectives GROUP MANAGEMENT COMMITTEE Encik Rashid Ismail Chief Executive Officer/Executive Director, BIMB Securities Sdn. Bhd. 56 years old Malaysian Date of Appointment: 10 January 2011 as Chief Executive Officer/Executive Director Qualifications: CPA, Australian Society of CPAs (Certified Practicing Accountants) CA, Malaysian Institute of Accountants ( MIA ) Bachelor of Business (Major In Accounting), Edith Cowan University, Australia Diploma In Accountancy, Institut Teknologi Mara Areas of Expertise: Stockbroking (Islamic and Conventional) Accounting Industrial Property Strategic Planning Working Experiences & Occupations: Present: Chief Executive Officer/Executive Director, BIMB Securities Sdn Bhd Chairman, Association of Stockbroking Companies Malaysia Director, BIMBSEC Nominees (Tempatan) Sdn Bhd Director, BIMBSEC Nominees (Asing) Sdn Bhd Member, Bursa s Market Participant Committee, Bursa Malaysia Berhad Member, Bursa s Securities Market Operations Committee, Bursa Malaysia Securities Member, Bumiputera Dealers Representative Education Fund ( BDREF ), Securities Industry Development Corporation Member, Bumiputera Trading Fund ( BTF ) Board of Trustees, Securities Industry Development Corporation Previous: Chief Executive Officer, MIDF Property Berhad Director, Amanah Ascott Properties & Amanah Scotts Sdn Bhd Head, Strategic Planning, MIDF Berhad Director, MIDF Consultancy and Corporate Services, Amanah Ventures Sdn Bhd and Amanah Property Trust Manager Sdn Bhd Chief Executive Officer & Executive Director Operations, MIDF Sisma Securities Sdn Bhd General Manager & Company Secretary, PB Securities Sdn Bhd General Manager, Seagroatt & Campbell Head, Computer Section, Treasury Department, United Malayan Banking Corporation Head, Money Market Processing, United Malayan Banking Corporation Directorship of Public Companies: NIL Declaration of Interest: He does not have any family relationship with any director and/or major shareholder of BIMB Securities Sdn Bhd nor does he have any conflict of interest with BIMB Securities Sdn Bhd. He has not been convicted of any offence within the past 10 years. 18 BIMB HOLDINGS BERHAD Annual Report 2015

34 Accountability Financial Statements Shareholders 19 th AGM (LEFT TO RIGHT) Encik Hizamuddin Jamalluddin Group Chief Strategy Officer Mr Malkit Singh Maan Group Chief Financial Officer Puan Maria Mat Said Group Company Secretary & Regulatory Compliance BIMB HOLDINGS BERHAD Annual Report

35 Overview Leadership Milestones and Achievements Perspectives OUR TEAM COO s OFFICE (FRONT, LEFT TO RIGHT) Jemilah Mohamad Zahari Zainal Abidin Norazrin Azmi Fazlin Salleh Norhasniza Abd Jalil (BACK, LEFT TO RIGHT) Mohamad Azlan Mohamad Alam (Chief Operations Officer) Siti Irnee Ithnin Nazzuan Rohaidin GROUP CORPORATE STRATEGY & TRANSFORMATION MANAGEMENT (LEFT TO RIGHT) Hizamuddin Jamalluddin (Group Chief Strategy Officer) Dzul Effendy Ahmad Hayan Nuraiman Abdul Ghani 20 BIMB HOLDINGS BERHAD Annual Report 2015

36 Accountability Financial Statements Shareholders 19 th AGM GROUP FINANCE & PLANNING INVESTOR RELATIONS Haryati Yahya (Head) Azizzi Mohammed (LEFT TO RIGHT) Christy Leong Pui Sze Saraswathy Somasundram Sarina Mohd Ali Noor Farhana Mohd Tajudin Aminah Mat Tasi Kamaruzaman Jenal Shahnon Ariff Amran Salleh Amran Malkit Singh Maan (Group Chief Financial Officer) Masidanoraini Mahpot BIMB HOLDINGS BERHAD Annual Report

37 Overview Leadership Milestones and Achievements Perspectives OUR TEAM LEGAL, SECRETARIAL & COMPLIANCE (FRONT, LEFT TO RIGHT) Nurul Fatin Aida Muhamad Nor Maria Mat Said (Group Company Secretary & Regulatory Compliance) Mohd Salehuddin Mohd Bhokhari (BACK, LEFT TO RIGHT) Marzuki Maidin Norshydah Abu Talib Aidil Haznul Zulkifli GROUP HUMAN CAPITAL (LEFT TO RIGHT) Rabi atul Adawiyah Remli Razman Ismail (Head) Norjamaiah Mohamad Noor Azliza Redzuan 22 BIMB HOLDINGS BERHAD Annual Report 2015

38 Accountability Financial Statements Shareholders 19 th AGM GROUP SHARIAH (LEFT TO RIGHT) Mohd Nazri Chik (Group Chief Shariah Officer) Anuar Elias Saiful Anuar Hambali GROUP CORPORATE COMMUNICATIONS (FRONT, LEFT TO RIGHT) Intan Fairuza Hj Harun Omar Atin Mohd Aswad Hidayat Mohamad Jalaludin Muhamad Fazrin Samsudin Siti Mahani Sh. Ab. Ghani Wan Norkhairi Wan Samad (Head) Nuraishah Sofia Hamshi Mohamad Fatmi (BACK, LEFT TO RIGHT) Hairyzal Abdul Hamid Fazlina Ismawaty Md Ghouse Mohamad Saffuan Sulaiman INTERNAL AUDIT (LEFT TO RIGHT) Zalfitri Abd. Mutalib Manickam Nadesan Norrulhuda Kulop Alang Mohamed Iran Moriff Mohd Shariff (Chief Internal Auditor) BIMB HOLDINGS BERHAD Annual Report

39 ADVANCING SYNERGIES

40 Our subsidiaries continue to be prime movers and innovators in Islamic banking, takaful and stockbroking by introducing more firsts in the market, enhancing customer delivery and building trustworthy relationships.

41 TOTAL REVENUE 8.6 % TOTAL: RM2.6 BILLION

42 Bank Islam We sustained steady performance in 2015 by being responsive and focus on the H2E 6 pillars Achieved FOUR Distinctive Awards Islamic Bank of the Year Asia by The European Global Banking & Finance Awards 2015 Strongest Islamic Retail Bank in Malaysia by Islamic Retail Banking Awards 2015 (Cambridge IF Analytica) Best Islamic Bank Malaysia by The International Banker Asia & Australasia Banking Awards 2015 Best Islamic Bank Malaysia & Award for Excellence in Shariah Compliant Banking by Wealth & Finance International 2015 Finance Awards 144 branches and more than 1,100 self-service terminals across the country