Leading the way in islamic financial excellence

Transcription

1 Leading the way in islamic financial excellence

2 Synergy. Reliability. Strategy. Integrity. Sustainability Leading the way in islamic financial excellence Cover Rationale Leading the Way in Islamic Financial Excellence BIMB Holdings Bhd ( BHB ) occupies a central position in the Islamic financial industry in Malaysia through our subsidiaries which have been involved in Shariah-based banking and financial services since As the Group has expanded over the years, we have opened progressively more doors to our customers and other stakeholders into the rich tapestry of innovative and ethical Islamic products and services that meet the needs of our increasing clientele in meaningful ways. In the process, we have established ourselves as a Trustworthy, Professional and Caring corporation with an extensive Network that maintains the highest level of Integrity. Contents Corporate Framework 2 Corporate Profile 4 Corporate Information 6 Group Corporate Structure Leadership Directors Profile Group CEO s Profile CEOs in the Group Management Committee Performance Review 5 -Year Group Financial Highlights

3 18 TH Annual General Meeting of Thursday, 14 May 2015 at a.m. BIMB Holdings Berhad Dewan Bankuet 2, Aras B2, Menara Felda, Platinum Park, No. 11, Persiaran KLCC Kuala Lumpur, Malaysia Refer to pages 238 to 241 for Annual General Meeting Information. Network Trustworthy Integrity Professional Caring Perspectives Letter to Shareholders Corporate Responsibility 2014 Event Highlights accountability Statement of Corporate Governance Statement on Risk Management and Internal Control Additional Compliance Information Audited Financial Statements Financial Statements Additional Information Properties owned by BHB Group Share and Warrant Holdings Statistics Regional Group Network th AGM INFORMATION Notice of 18 th Annual General Meeting Statement Accompanying Notice of 18 th Annual General Meeting Form of Proxy

4 BIMB HOLDINGS BERHAD 2 Corporate profile BIMB Holdings Berhad ( BHB ) was established on 20 March 1997 and listed on the Main Market of Bursa Malaysia on 16 September BHB acts as an investment holding company for Malaysia s pioneer Shariahcompliant business entities, involve mainly in Islamic banking, takaful and stockbroking. Being the premier Shariah-compliant financial services provider with an authorised capital of RM2.0 billion and paid-up capital of RM1,542,209,734.00, BHB is well-positioned to assist the Government s aspirations in establishing the country as a vibrant International Islamic Financial Center. BHB has gained in strength and stature over the years as a champion of Islamic banking, takaful and stockbroking industries via its stable of strategic investments in Malaysia s pioneer Shariah-compliant entities.

5 Kiptchak Mosque in Turkmenistan Championing ETHICAL Islamic Financial Services

6 BIMB HOLDINGS BERHAD 6 Corporate profile BIMB Holdings Berhad ( BHB ) was established on 20 March 1997 and listed on the Main Market of Bursa Malaysia on 16 September BHB acts as an investment holding company for Malaysia s pioneer Shariahcompliant business entities, involve mainly in Islamic banking, takaful and stockbroking. Network Being the premier Shariah-compliant financial services provider with an authorised capital of RM2.0 billion and paid-up capital of RM1,542,209,734.00, BHB is well-positioned to assist the Government s aspirations in establishing the country as a vibrant International Islamic Financial Center. BHB has gained in strength and stature over the years as a champion of Islamic banking, takaful and stockbroking industries via its stable of strategic investments in Malaysia s pioneer Shariah-compliant entities.

7 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 public listed TAKAFUL operator in Malaysia We are continuously expanding our BRANCH network, consumer business centres, bureaus de change, Ar-Rahnu outlets and takaful centres to increase our reach across the length and breadth of the country. This enables us to get closer to more Malaysians, whose lives we enrich via an ever-increasing range of products and services. First full-fledged shariah-compliant stockbroking company in Malaysia

8 BIMB HOLDINGS BERHAD 4 Corporate Information BOARD OF DIRECTORS Tan Sri Samsudin bin Osman Chairman/Non-Independent Non-Executive Director Tan Sri Ismail bin Adam Senior Independent Non-Executive Director Tan Sri Ismee bin Ismail Non-Independent Non-Executive Director Datuk Zaiton binti Mohd Hassan Independent Non-Executive Director Dato Johan bin Abdullah Non-Independent Non-Executive Director Datuk Rozaida binti Omar Non-Independent Non-Executive Director Encik Mohd Zin bin Idris Non-Independent Non-Executive Director Encik Salih Amaran bin Jamiaan Non-Independent Non-Executive Director Puan Rifina binti Md Ariff Non-Independent Non-Executive Director group ceo Dato Sri Zukri bin Samat (Appointed w.e.f. 18 February 2015) COMPANY SECRETARY Puan Maria binti Mat Said (LS ) AUDIT & EXAMINATION COMMITTEE Datuk Zaiton binti Mohd Hassan Chairman Tan Sri Ismail bin Adam Encik Mohd Zin bin Idris NOMINATION & ASSESSMENT COMMITTEE Tan Sri Ismail bin Adam Chairman Tan Sri Ismee bin Ismail Datuk Zaiton binti Mohd Hassan REMUNERATION COMMITTEE Tan Sri Ismail bin Adam Chairman Tan Sri Ismee bin Ismail Datuk Zaiton binti Mohd Hassan SHARIAH SUPERVISORY COUNCIL, BANK ISLAM MALAYSIA BERHAD Dr. Ahmad Sobri bin Salamon Chairman Dato Mohd Bakir bin Haji Mansor (Resigned w.e.f. 31 March 2015) Assistant Professor Dr. Uzaimah binti Ibrahim Professor Dr. Ahmad Hidayat bin Buang Dr. Muhammad Syafii bin Antonio

9 5 BIMB HOLDINGS BERHAD Corporate Information Corporate Framework SHARIAH ADVISORY BODY, SYARIKAT TAKAFUL MALAYSIA BERHAD Dr. Ahmad Sobri bin Salamon Chairman Dato Mohd Bakir bin Haji Mansor Dr. Aida binti Othman CEOs IN THE GROUP Dato Sri Zukri bin Samat Group Chief Executive Officer BIMB Holdings Berhad; and Managing Director Bank Islam Malaysia Berhad Professor Dr. Muhamad Rahimi bin Osman Dato Wan Mohamad bin Dato Sheikh Abdul Aziz Dato Sri Mohamed Hassan bin Md. Kamil Group Managing Director Syarikat Takaful Malaysia Berhad Encik Rashid bin Ismail Chief Executive Officer BIMB Securities Sdn Bhd SHARIAH ADVISORY COMMITTEE, BIMB SECURITIES SDN BHD Dato Mohd Bakir bin Haji Mansor Chairman Prof. Emeritus Dato Paduka Dr. Mahmood Zuhdi bin Haji Abdul Majid Ir. Dr. Muhamad Fuad bin Abdullah AUDITORS KPMG Desa Megat & Co. (AF0759) Level 10, KPMG Tower 8, First Avenue, Bandar Utama Petaling Jaya Selangor Darul Ehsan Performance accountability Perspectives Leadership Review 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 Audited Financial Statements 18 th AGM information Stock Short Name : BIMB/BIMB-WA Stock No. : 5258 Warrant No. : 5258WA Additional Information

10 BIMB HOLDINGS BERHAD 6 Group Corporate structure 100% 55.18% 5.23% 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% 5.15% 9.93% Subsidiaries of Core Business Units 63.09% Asean Retakaful International (L) Ltd (under members voluntary liquidation) 56.00% PT Syarikat Takaful Indonesia 42.73% 57.24% PT Asuransi Takaful Keluarga 52.67% PT Asuransi Takaful Umum 100% 5.92% Others 18.59% 49% 51% Subsidiaries of Core Business Units 100% BIMSEC Nominees (Asing) Sdn Bhd 100% BIMSEC Nominees (Tempatan) Sdn Bhd

11 7 BIMB HOLDINGS BERHAD Group corporate structure Corporate Framework Syarikat Al-Ijarah Sdn Bhd 100% Notes: Shareholding structure as at 31 March 2015 Core Business Units Performance Perspectives Leadership Review 48% Other Business Units Associate / Investment accountability Islamic Banking & Finance Institute Malaysia Sdn Bhd (under members voluntary liquidation) Audited Financial Statements Additional Information 18 th AGM information

12 BIMB HOLDINGS BERHAD 8 directors profile Tan Sri Samsudin bin Osman Chairman/Non-Independent Non-Executive Director 68 years old - Malaysian Date of Appointment: 1 February 2007 Qualifications: Master of Public Administration, Pennsylvania State University (USA) Bachelor of Arts (Hons), University of Malaya Diploma in Public Administration, University of Malaya 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 Directorship of Public Companies: Sime Darby Berhad Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: 8 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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. Previous: President, Perbadanan Putrajaya Chief Secretary to the Malaysian Government Secretary General for the Ministry, Home Affairs Secretary General for the Ministry, Domestic Trade and Consumer Affairs

13 9 BIMB HOLDINGS BERHAD directors profile Corporate Framework Perspectives Performance Review Leadership TAN SRI ISMAIL bin ADAM Senior Independent Non-Executive Director 64 years old - Malaysian Tan Sri Ismee bin Ismail Non-Independent Non-Executive Director 50 years old - Malaysian Date of Appointment: 3 January 2011 (appointed as Senior-Independent Non-Executive Director w.e.f. 25 May 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 Working Experiences & Occupations: Present: Chairman, Prasarana Malaysia Berhad Advisor, Hay Group Sdn Bhd Previous: Director General, Public Service Department, 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: Prasarana Malaysia Berhad Westports Holdings Berhad Membership of Board Committees in BIMB Holdings Berhad: Chairman of Nomination & Assessment Committee Chairman of Remuneration Committee Member of Audit & Examination Committee Meeting Attendance: 8 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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. Date of Appointment: 9 October 2006 Qualifications: Fellowship of Chartered Institute of Management Accountants (CIMA) (United Kingdom) Member of Malaysian Institute of Accountants (MIA) Working Experiences & Occupations: Present: Group Managing Director and Chief Executive Officer, Lembaga Tabung Haji Chairman, Syarikat Takaful Malaysia Berhad Previous: Chief Executive Officer, ECM Libra Securities Sdn Bhd/ECM Libra Capital Sdn Bhd Senior General Manager, Lembaga Tabung Haji Senior Vice President, Business and Corporate Development of Medical Online (M) Sdn Bhd Chief Accountant/Treasurer, Pengurusan Danaharta Nasional Berhad General Manager, Business Development of Arab Malaysian Development Berhad Accountant, Shell Companies in Malaysia Management Accountant, Arab Malaysian Development Berhad Directorship of Public Companies: Bank Islam Malaysia Berhad TH Plantations Berhad Syarikat Takaful Malaysia Berhad 1Malaysia Development Berhad Edra Global Energy Berhad (formerly known as 1MDB Energy Group Berhad) Membership of Board Committees in BIMB Holdings Berhad: Member of Nomination & Assessment Committee Member of Remuneration Committee Meeting Attendance: 6 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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. accountability Audited Financial Statements Additional Information 18 th AGM information

14 BIMB HOLDINGS BERHAD 10 directors profile Datuk Zaiton binti Mohd Hassan Independent Non-Executive Director 58 years old - Malaysian dato johan bin abdullah Non-Independent Non-Executive Director 58 years old - Malaysian Date of Appointment: 2 February 2006 Qualifications: Fellowship of Association of Chartered Certified Accountants (ACCA), United Kingdom Member of the Malaysian Institute of Accountants (MIA) Member of the Malaysian Institute of Certified Public Accountants (MICPA) 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 in Bapema Corporation Sdn Bhd Project Officer in Bank Pembangunan (M) Bhd Audit trainee in PricewaterhouseCoopers Directorship of Public Companies: Bank Islam Malaysia Berhad Sime Darby Berhad Dolphin International Berhad Membership of Board Committees in BIMB Holdings Berhad: Chairman of the Audit and Examination Committee Member of Nomination and Assessment Committee Member of Remuneration Committee Meeting Attendance: 8 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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. Date of Appointment: 17 February 2015 (Resigned as Non-Independent Executive Director w.e.f. 15 January 2015) Qualifications: MBA (Finance), Morehead State University (USA) BBA (Finance), Eastern Michigan University (USA) Diploma in Banking, University Technology MARA (Malaysia) 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 Division, Bursa Malaysia Berhad Senior Vice President, Securities Issues, Bursa Malaysia Berhad Vice President, Listing Bursa Malaysia Berhad General Manager, Corporate Planning, Damansara Realty Berhad Directorship of Public Companies: Syarikat Takaful Malaysia Berhad Bank Islam Malaysia Berhad Edra Global Energy Berhad (formerly known as 1MDB Energy Group Berhad) Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: 8 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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.

15 11 BIMB HOLDINGS BERHAD directors profile Performance Review Leadership Corporate Framework Datuk Rozaida binti Omar Non-Independent Non-Executive Director 52 years old - Malaysian Encik Mohd Zin bin Idris Non-Independent Non-Executive Director 71 years old - Malaysian Perspectives Date of Appointment: 1 December 2009 Qualifications: Member of Association of Chartered Certified Accountants (ACCA) UK A-Level, Birkenhead College, United Kingdom Working Experiences & Occupations: Present: Group Chief Financial Officer, Lembaga Tabung Haji Previous: Finance Director, Glaxo Smith Kline Consumer Healthcare Sdn Bhd Finance Manager, Guthrie Trading Sdn Bhd Credit Manager, Citibank Berhad Financial Accountant, Felda Directorship of Public Companies: Syarikat Takaful Malaysia Berhad Pelikan International Corporation Berhad Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: 7 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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. Date of Appointment: 20 September 2002 (Redesignated from Independent Non-Executive Director to Non-Independent Non-Executive Director w.e.f. 3 December 2014) Qualifications: Senior Cambridge Certificate 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 of Audit and Examination Committee Meeting Attendance: 7 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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. accountability Audited Financial Statements Additional Information 18 th AGM information

16 BIMB HOLDINGS BERHAD 12 directors profile Encik Salih Amaran bin Jamiaan Non-Independent Non-Executive Director 75 years old - Malaysian Puan Rifina binti Md Ariff Non-Independent Non-Executive Director 48 years old - Malaysian Date of Appointment: 18 February 2005 Qualifications: Master in Business Administration, Wharton School, University of Pennsylvania (USA) Bachelor of Science (Economics), London School of Economics and Political Science, University of London (UK) Post Graduate Diploma in Public Administration, Victoria University, Wellington (New Zealand) Working Experiences & Occupations: Present: None Previous: Regional Representative in Kuala Lumpur, Islamic Development Bank, Jeddah Deputy Director, Trade Finance and Promotion, Islamic Development Bank, Jeddah Deputy Director, Business Development, Islamic Development Bank, Jeddah Special Advisor (Economics), Commonwealth Secretariat, London General Manager, International Banking Division, Malayan Banking Berhad Deputy Secretary, Finance Division, Ministry of Finance, Malaysia Principal Assistant Secretary, Tax Division, Ministry of Finance, Malaysia Directorship of Public Companies: None Membership of Board Committees in BIMB Holdings Berhad: None Date of Appointment: 1 April 2014 Qualifications: Bachelor of Arts (Hons) Accounting & Financial Analysis, University of Newcastle Upon-Tyne, UK 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: 5 of 6 Board Meetings held in the Financial Year Ended 31 December 2014 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. Meeting Attendance: 8 of 8 Board Meetings held in the Financial Year Ended 31 December 2014 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 Permodalan Nasional Berhad. He has not been convicted of any offence within the past 10 years.

17 13 BIMB HOLDINGS BERHAD directors profile Performance Review Corporate Framework Leadership Puan Maria binti Mat Said Company Secretary 48 years old - Malaysian Perspectives Date of Appointment: 31 December 2009 Qualifications: Bachelor of Law from University of Malaya Working Experiences & Occupations: Present: Senior General Manager, Legal & Secretarial Division of Bank Islam Malaysia Berhad Company Secretary of Bank Islam Malaysia Berhad Company Secretary of BIMB Holdings Berhad Previous: Senior Vice President, Compliance & Service Standards Division of Tahan Insurance Malaysia Berhad Secretary to the Board of Directors of LOFSA Manager, Development & Promotions of LOFSA Manager, Legal of Danamodal Nasional Berhad Company Secretary, Danamodal Nasional Berhad Senior Legal Officer, Legal Department of Bank Negara Malaysia Directorship of Public Companies: Al Wakalah Nomines (Tempatan) Sdn Bhd Bank Islam Trust Company (Labuan) Ltd Farihan Corporation Sdn Bhd BIMB Foreign Currency Clearing Agency Sdn Bhd (under members voluntary liquidation) accountability Audited Financial Statements Additional Information Secretary of Board Committees in BIMB Holdings Berhad: Secretary of Audit and Examination Committee Secretary of Nomination and Assessment Committee Secretary of Remuneration Committee Secretary of Board of Directors Meeting Attendance: 8 of 8 Board Meetings held in the Financial Year Ended 31 December th AGM information Declaration of Interest: None

18 BIMB HOLDINGS BERHAD 14 Group CEO s profile dato sri zukri bin samat Group Chief Executive Officer 57 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) Diploma in Accountancy, University Technology MARA (Malaysia) 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 Credit Officer, Bank Bumiputra Malaysia Berhad Directorship of Public Companies: Bank Islam Malaysia Berhad BIMB Investment Management Berhad Asian Institute of Finance Berhad Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: None 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.

19 Al-Salam Mosque in Odessa, Ukraine A global Leader in islamic banking

20 BIMB HOLDINGS BERHAD 18 Group CEO s profile dato sri zukri bin samat Group Chief Executive Officer 57 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) Diploma in Accountancy, University Technology MARA (Malaysia) 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 Credit Officer, Bank Bumiputra Malaysia Berhad Directorship of Public Companies: Bank Islam Malaysia Berhad BIMB Trustworthy Investment Management Berhad Asian Institute of Finance Berhad Membership of Board Committees in BIMB Holdings Berhad: None Meeting Attendance: None 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.

21 Bank Islam We continue to make steady progress by focusing on the H2E 6 pillars i. Robust Organic Growth ii. Service Excellence iii. Shariah-led Innovation iv. Resource Optimisation v. Being an Employer of Choice vi. Regionalisation Awarded in FOUR categories: Best CEO, Best Customer Service Provider Asia, Best Islamic Bank Malaysia and Most Outstanding Retail Bank 141 branches and more than 1,200 self-service terminals across the country A hallmark of our banking operations is the level of trust we have nurtured among our partners and customers. As a result of building strong relationships, we truly understand the needs of our consumer, corporate and commercial segments and are able to meet these with innovative service offerings.

22 BIMB HOLDINGS BERHAD 16 CEOs in the group Encik Rashid bin Ismail Chief Executive Officer, BIMB Securities Sdn Bhd Dato Sri Zukri bin Samat Group Chief Executive Officer, BIMB Holdings Berhad; and Managing Director, Bank Islam Malaysia Berhad Dato Sri Mohamed Hassan bin Md. Kamil Group Managing Director, Syarikat Takaful Malaysia Berhad

23 17 BIMB HOLDINGS BERHAD Management committee Corporate Framework Leadership Performance Review Dato Sri Zukri bin Samat Group Chief Executive Officer Perspectives Encik Mohamad Azlan bin Mohamad Alam Chief Financial Officer 3. Encik Aidil Haznul Zulkifli Head, Legal, Secretarial & Compliance 4. Encik Dzul Effendy bin Ahmad Hayan Head, Corporate Strategy & Transformation Management 5. Cik Nor Aina binti Kamaruddin Head, Corporate Services 6. Encik Omar bin Atin Head, Corporate Communications accountability Audited Financial Statements 5 6 Additional Information 18 th AGM information

24 BIMB HOLDINGS BERHAD 18 5-year group financial highlights 2010 RM 000 Restated 2011 RM 000 Restated 2012 RM 000 Restated 2013 RM RM 000 Share Capital 1,066,790 1,066,790 1,066,790 1,493,506 1,493,506 Shareholders Equity 1,667,102 1,869,847 2,080,775 2,810,337 2,949,037 Deposits from Customers 26,798,107 28,208,203 32,379,000 36,924,367 40,678,379 Takaful liabilities 4,786,882 5,124,602 5,580,755 6,082,001 6,323,577 Financing, advances and others 11,858,599 14,161,837 19,507,799 23,740,948 29,524,571 Marketable securities 18,755,334 16,311,797 19,162,529 18,409,143 15,528,737 Total Assets 35,939,624 38,246,388 43,939,909 49,674,545 53,030,205 Revenue 2,596,313 2,078,979 2,473,953 2,809,395 2,967,473 Profit before zakat and taxation (PBZT) 588, , , , ,384 Net Profit 238, , , , ,329 Dividend Less Taxation 24, , , , ,545 Net financing and advances over customer deposits = Net financing and advances/ Customer deposits (%) Gross NPF ratio = Gross NPF/Gross financing and advances (%) Net NPF ratio = (Gross NPF Specific allowance)/(gross financing and advances Specific allowance) (%) Earnings per Share (Sen) Net Tangible Assets per Share (RM) Gross Dividend per Share (%) Net Dividend per Share (%)

25 19 BIMB HOLDINGS BERHAD 5-year group financial highlights Corporate Framework Shareholders equity (RM 000) takaful liabilities (Rm 000) Performance Review Perspectives ,667,102 1,869,847 2,080,775 2,810,337 2,949, ,786,882 5,124,602 5,580,755 6,082,001 6,323,577 financing, advances and others (RM 000) Total assets (RM 000) Audited Financial Statements Additional Information Leadership accountability ,858,599 14,161,837 19,507,799 23,740,948 29,524, ,939,624 38,246,388 43,939,909 49,674,545 53,030, th AGM information

26 BIMB HOLDINGS BERHAD 20 5-year group financial highlights Deposits from Customers (RM 000) Earnings per Share (SEN) ,798,107 28,208,203 32,379,000 36,924,367 40,678, Net Tangible Assets per Share (RM) Profit before Zakat and Taxation (RM 000) , , , , ,384

27 21 BIMB HOLDINGS BERHAD Medina of Fez in Morocco The Preferred choice for insurance

28 BIMB HOLDINGS BERHAD 24 5-year group financial highlights Deposits from Customers (RM 000) Earnings per Share (SEN) ,798,107 28,208,203 32,379,000 36,924,367 40,678, Net Tangible Assets per Share (RM) Profit before Zakat and Taxation (RM 000) Integrity , , , , ,384

29 Takaful Malaysia the first and ONLY listed Takaful Operator in Malaysia Takaful Malaysia opened 3 new Takaful mycare centres now 27 service centres nationwide. Named the Best Takaful Company in Malaysia for three consecutive years at the International Takaful Awards As the premier takaful provider in the country, we uphold the highest level of integrity in protecting our customers and their loved ones from life s unexpected adversities. Our extensive range of Islamic family and general insurance ensure peace of mind to thousands of Malaysians of all races and backgrounds across the country. Awarded the Best Performing Stock Highest Returns to Shareholders over Three Years under the Finance Sector at the Edge Billion Ringgit Club Corporate Awards 2013

30 BIMB HOLDINGS BERHAD 22 Letter to shareholders Tan Sri Samsudin bin Osman Chairman

31 23 BIMB HOLDINGS BERHAD Letter to shareholders Corporate Framework Leadership Dear Shareholders, The financial year ended December 2014 presented fresh challenges to financial institutions globally and here in Malaysia, in both the conventional as well as Islamic sectors. Despite these challenges, BIMB Holdings Berhad ( BHB or the Group ) continued to grow from strength to strength, backed by steady performances of each of our core subsidiaries. Guided by strong and professional management teams and supported by solid foundations, we have produced another set of very encouraging results to deliver a consolidated operating profit of RM883.6 million, marking an increase of 7.3% from the previous year. Our performance in 2014 befits our leadership as the first and only listed Islamic financial services holding company in the region. It gives me great pleasure to share the highlights of our financial and operational journey over the 12-month period with you. Performance Review Perspectives accountability OPERATING ENVIRONMENT The global economy picked up to a certain extent in 2014, led by strong performance in the US. This had a positive impact on developing nations, such as Malaysia, which benefited from higher export earnings. Towards the end of the year, greater global volatilities brought about by geopolitical undercurrents in Eastern Europe and the Middle East, a strengthening US economy as well as falling oil prices, led to an outflow of foreign funds. Although the resulting depreciation of the Ringgit impacted businesses with US denominated costs, it was beneficial to exporters. Coupled with resilient consumer spending and private investment, the country achieved gross domestic product ( GDP ) growth of 6.0%, exceeding the 4.3% recorded in The outflow of foreign funds led to poor performance by the KLCI, uncertainties in the domestic equities market, and contributed to institutional funds being placed in banks. However, stiff competition for these funds contributed to a higher cost of such deposits. Coupled with lower rates on financing, banking profit margins came under pressure. Audited Financial Statements Additional Information 18 th AGM information

32 BIMB HOLDINGS BERHAD 24 Letter to shareholders Notwithstanding this scenario, Islamic banking continued to be resilient, outperforming the general industry in terms of growth in assets and financing. Over the last four (4) years, the Malaysian Islamic banking industry s assets have almost doubled, from RM351.2 billion at end 2010 to RM625.2 billion at end 2014, accounting for 25.6% of the domestic banking system s assets. Although total financing growth slipped from 17.7% in 2013 to 15.4%, and is expected to continue to moderate in 2015 due to efforts to contain household debt within a more challenging economic environment, it is expected to continue to remain fairly robust in the near future. As part of its vision to turn Malaysia into a global Islamic financial services hub, the Government had set a target for Islamic banking assets to make up 40% of the banking system s total by This is to be achieved by greater diversification of Islamic financing products in order to enhance the sector s capability to support real economic activity. These products, however, have to adhere to stipulations of the Islamic Financial Services Act ( IFSA ), introduced on 30 June 2013, which clearly distinguishes between deposits and investment accounts. While Islamic deposits can be withdrawn on demand and are guaranteed by Perbadanan Insurans Deposit Malaysia ( PIDM ), the accounts do not promise any distribution of profits to the account holders. The clients of investment accounts, on the other hand, are able to retain funds for a longer period of time and enjoy the opportunity to earn higher returns subject to more restrictive withdrawal conditions. Investment accounts, without any capital guarantee by PIDM, can be structured with different risk and return profiles based on the characteristics of the underlying assets and the risk appetites of the investors. Two (2) main types of investment accounts offered by Islamic banks in Malaysia are Restricted Investment Accounts ( RIA ) or Unrestricted Investment Accounts ( URIA ). RIA is an investment account where a specific mandate is given to the bank with regard to the purpose, asset class, economic sector and period of investment whereas URIA allows the bank to make the ultimate investment decision without specifying any particular restriction or condition. For us, the Investment Account Framework is timely as it reflects the concept of Islamic finance which emphasises on risk-sharing, strengthening further the link of finance to the real economy. Based on the framework, in 2014 the Government announced a Shariah-based Investment Account Platform ( IAP ), expected to be implemented in September The IAP provides participating banks with the framework to offer investors a wider range of Shariah-compliant investment options with differing risk-return profiles. Capital from these accounts will be directed to diverse forms of funding inclusive of equities-based funding as well as funding of viable ventures. In this manner, IAP will be beneficial both to organisations generally SMEs requiring additional funds to support their growth, as well as to investors willing to take the risk related to investing in business ventures to reap the possibility of higher returns from a Shariah-compliant mandate. Given BHB s commitment to ensuring the success of all Government initiatives aimed at enhancing Islamic finance, we are proud of the fact that Bank Islam is one of four (4) founding financial institutions to spearhead the IAP. As the Bank s holding company, BHB will provide all the support needed to nurture the programme, the latest brainchild by Bank Negara Malaysia ( BNM ). The IAP adds to previous initiatives introduced to spur Islamic finance, such as the Exchange Traded Bond and Sukuk (ETBS); the introduction by the Securities Commission of a framework for socially responsible sukuk instruments; and the requirement that Shariah-compliant counters on Bursa Malaysia Securities Berhad ( Bursa Securities ) have not more than 33% of their cash and debts in conventional accounts. At a more fundamental level, the Government is strengthening the industry via the creation of a more robust regulatory and supervisory environment. Adding to measures previously announced under the Financial Services Act (FSA)/IFSA which applied to banks and financial institutions, in 2014 BNM widened the scope of the Acts to include financial holding companies ( FHCs ), which have been defined as apex entities of financial groups which are not persons and approved by BNM. Targeting these FHCs, which include BHB, BNM is developing prudential standards to ensure they are able to meet capital requirements that support risks originating from all entities within the group including those that are unregulated; and to reduce leverage associated with multiple gearing of capital which can overstate a group s capital strengths and increase contagion risk.

33 25 BIMB HOLDINGS BERHAD Letter to shareholders Leadership Corporate Framework At the same time, BNM is strengthening the governance framework of FHCs by imposing more stringent requirements on independent directors and increasing their representation on the boards of both financial institutions as well as financial groups. Within the takaful sector, IFSA has called on operators to streamline their family and general businesses by June Other than IFSA, the takaful sector has been further strengthened by the Risk Based Capital for Takaful (RBCT) Framework, enforced as of 1 January 2014, demanding greater capital adequacy. In essence, both regulations are shaping a more robust takaful industry, which would place takaful providers in a better position to compete with conventional players. As it stands, the takaful sector in Malaysia is growing at doubledigit rates, far outpacing the conventional sector as more consumers are seeing the value of innovative, value-add Shariah-based takaful products. With stronger governance, takaful operators can expect to create greater churn from the conventional sector to takaful to further accelerate their growth path. While the IFSA and other regulatory frameworks, including Basel III and the US Government s recently imposed Foreign Account Tax Compliance Act (FATCA), impose different sets of challenges to local financial institutions, the end result will be a much enhanced financial ecosystem that is transparent, responsible and efficient. Accordingly, BHB and our subsidiaries embrace the opportunity to streamline our operations in line with the emerging frameworks, and look forward to reaping the fruit of our current labour in the near future. FINANCIAL PERFORMANCE Despite operating in a more stringent and competitive environment, BHB s financial performance in 2014 was encouraging. Our total net income grew by 1.3% to RM2.1 billion on the back of strong net financing growth by Bank Islam which cushioned the impact of lower sales generated by our Family Takaful business. Concerted efforts to increase our cost efficiencies led to BHB s operating overheads decreasing by 2.9% to RM1.2 billion. This is a notable achievement given that we continued to invest in our talent and capital expenditure to support business franchise growth. I am further pleased to share that our prudent and diligent management of operating overheads saw our cost to net income ratio improve from 59.3% to 56.8%. The respectable performance of our banking and takaful businesses combined to produce a consolidated operating profit of RM883.6 million which, as mentioned earlier, was a 7.3% or RM60.5 million increase from the RM823.1 million recorded in Our consolidated profit before zakat and taxation ( PBZT ), however, was marginally lower at RM815.4 million, compared with RM819.4 million in This was due to the higher cost of financing for our sukuk of RM68.2 million as opposed to RM3.3 million in The sukuk was raised to fund the acquisition of Bank Islam shares in The acquisition meant greater recognition of Bank Islam s profits in our statement of accounts, leading to a significant 90.6% increase (of RM253.0 million) in our net profit attributable to shareholders for the year under review. Consequently, our earnings per share (EPS) also rose by 37.9% to sen per share, from sen per share in the previous year. BHB s asset quality improved further, with our gross impaired financing ratio decreasing by four (4) basis points to 1.14% from end December 2013 to end December This was due to Bank Islam s prudent credit underwriting standards and aggressive collection efforts. At the same time, the Group s capital position remained healthy, above BNM s minimum requirements, with Common Equity Tier 1, Tier 1 and Total CAR at 12.2%, 12.2% and 13.4% as at 31 December 2014 respectively. Given our performance, on 25 November 2014, the Group declared an interim single-tier dividend of 14.7 sen per share, amounting to RM219.5 million, or 172.8% of our net profit for the financial year. Upon its payout on 13 January 2015, 82.3% or RM180.6 million was reinvested by shareholders in 48,703,800 new ordinary shares of RM1.00 each at RM3.71 per share via our inaugural Dividend Reinvestment Plan (DRP). Performance Review Perspectives accountability Audited Financial Statements Additional Information 18 th AGM information

34 BIMB HOLDINGS BERHAD 26 Letter to shareholders BANK ISLAM Bank Islam is the country s first Shariah-based bank and the first Islamic bank to be established in the region. It continues to be the symbol of Islamic banking in the country, leading the way in introducing innovative products and solutions as it pursues its vision to become a global leader in Islamic banking. In 2013, BHB acquired 49% equity of Bank Islam that had previously been owned by Lembaga Tabung Haji and Dubai Financial Group, following which the Bank has become a 100% owned BHB subsidiary. It contributes to about 80% of the Group s profits. Financial Performance As a result of concerted efforts to grow the business, Bank Islam recorded a PBZT of RM702.1 million, which was 3.8% higher than was achieved for the financial year Its net financing assets grew by 24.4% to RM29.5 billion as at end December 2014, accompanied by a 17.3% increase in fund-based income from financing of RM234.7 million. At the same time, foreign exchange transactions and net gain from the sale of financial assets availablefor sale contributed to a 2.9%, or RM8.4 million, increase in nonfund based income. Bank Islam ended the year with a RM3.8 billion increase in customer deposits, marking a 10.1% growth to total RM41.0 billion. Its current and savings accounts ( CASA ), meanwhile, grew by 7.3%, or by RM1.1 billion, leading to a CASA ratio at end December 2014 of 38.1%, surpassing that of the Islamic banking industry in general in the country, which stood at 24.8%. Continued focus on asset quality saw the Bank s gross impaired financing ratio at year end further improve to 1.14% from 1.18% a year ago, while its net impaired financing ratio stood at -0.82%. Both metrics surpass those of the banking system, which experienced a 1.66% gross impaired ratio and -0.11% net impaired ratio as at year end. In fact, I am proud to note, some of the Bank s key performance indicators for the year 2014 measure favourably against those of the banking system. Its pre-tax return on equity was 19.9% against the banking system s 15.2%; and pre-tax return on assets was 1.6% against 1.5%. Redefining Products, Building Capital Bank Islam was the first bank in Malaysia to introduce chip-based ATM cards; the first to launch mobile banking service without Internet access; and the first to launch floating rates for personal financing, among others. Continuing with this string of pioneering activity, in 2014 it introduced yet another first for the country the very first Restricted Investment Account under IFSA 2013 called Al- Ansar. Following the Budget 2015 announcement that Lembaga Tabung Haji would allocate RM200 million towards financing Bumiputra entrepreneurs and SMEs, the Bank made the necessary investments in its IT infrastructure to support the new product, and set up a dedicated team to market it. The result is the Shariah-compliant Al-Ansar, which was approved by BNM in early March 2015, and was launched on 2 April 2015 by the Prime Minister of Malaysia, YAB Dato Sri Mohd. Najib Tun Abdul Razak. Alhamdulillah, we are very proud of Al-Ansar as it is the brandchild of Bank Islam and the first of its kind in Malaysia. In offering financing to recipients, the Bank will be guided by a specific mandate with regard to the purpose, asset class, economic sector and period of investment as specified by Lembaga Tabung Haji. Al-Ansar will be made available until 31 December The Bank also received approval from BNM to issue a Subordinated Sukuk Murabahah Programme (sukuk) valued up to RM1 billion with a tenure of 30 years from the date of first issuance. Proceeds from the sukuk will be used to enhance the Bank s capital adequacy ratio to support more robust organic growth. The first tranche of the programme, amounting to RM300 million, was launched in April 2015 and was subscribed RM100 million each by Tabung Haji, EPF and KWAP. The Bank continued to make steady progress on each of the six pillars of its Hijrah to Excellence ( H2E ) transformation programme, namely: Robust Organic Growth, Service Excellence, Shariah-led Innovation, Resource Optimisation, Employee of Choice and Regionalisation. Its Organic Growth is reflected in the Bank s sound financial performance. This, in turn has been supported by the other pillars of the H2E programme.

35 27 BIMB HOLDINGS BERHAD Letter to shareholders Corporate Framework Towards Service Excellence, the Bank has been leveraging on greater use of technology to increase its efficiencies and service delivery. Further enhancing its service culture, various initiatives have been implemented to instil a customer-centric mindset among employees, and especially frontliners who deal directly with the Bank s retail and corporate clients. All frontline staff are required to attend Service Excellence Training which reinforces the importance of delivering superior service. Finally, within a fast growing and competitive niche sector such as Islamic banking, it is only to be expected that there will be a war for talent. Bank Islam s strategic response to this is to establish itself as an Employer of Choice, offering employees a stimulating work environment that inspires and rewards excellence while caring for employees well-being. In addition to identifying and developing leaders, the Bank encourages greater engagement across all levels via a culture of sharing and respect. Performance Review Leadership These efforts have not been in vain. During the year, the Bank was named the Most Outstanding Retail Bank at the Kuala Lumpur Islamic Finance Forum (KLIFF) It also won the International Banker s Best Customer Services Provider 2014 for Malaysia award in United Kingdom. In terms of Shariah-led innovation, Bank Islam continued to develop more products and solutions not only for customers but also for the industry. To remain competitive in the market, it launched the Term Deposit-i (Tawarruq) [TDT-i], a PIDM guaranteed deposit account, offering the flexibility of managing funds according to short or long-term needs. It also launched a number of debit cards the MyAngkasa Membership Card for members of the National Cooperative Body of Malaysia (ANGKASA); the co-branded Bank Islam Team Harimau Visa Debit Card-i for Harimau Malaysia football fans; and another University Debit Card-i (UniDebit), this time for students at Universiti Malaysia Pahang (UMP). Meanwhile, its wholly-owned subsidiary BIMB Investment Management Berhad launched the BIMB i Flexi Fund, a Shariahcompliant mixed asset fund structured to offer investors long-term capital appreciation. By virtue of Resource Optimisation, the Bank intends to cross sell and upsell its products; further improve its systems and processes; as well as create greater cost efficiencies and productivity. Among the key achievements within this pillar was reducing the waiting time of walk-in customers at Bank Islam branches. During the year, 94% of the branches have achieved their minimum waiting time of five (5) minutes or less. Syukur Alhamdulillah, Bank Islam was voted the 16 most popular employer in the 100 Leading Graduate Employers Poll conducted by GTI Media and powered by the trendence Graduate Barometer, up from 51 in Even better, the Bank was rated among the top three (3) employers in the Banking and Financial Services sector by the same survey. One of the Bank s talents, Ustaz Mohd Nazri Chik meanwhile did us proud by being named the most Promising Young Banker by The Asian Banker Awards 2014; while the Bank s MD Dato Sri Zukri bin Samat who is now also our Group CEO added to his list of accolades by being awarded the Banking CEO of the Year Asia by International Banker Awards 2014 held in London, United Kingdom. TAKAFUL MALAYSIA Takaful Malaysia was the first Islamic insurance provider to be set up in the country and is today the market leader in the Family Takaful segment, with particular strengths in Employee Benefit and Bancatakaful protection solutions. Takaful Malaysia stands out in the marketplace for its 15% Cash Back to General Takaful customers for no claims made during their year of coverage. Financial Performance Amid a challenging environment that included curbs on personal loans, Takaful Malaysia continued to focus on prudent underwriting, tighter management expenses control and proactive investment management to deliver another set of respectable financial figures. Although the year saw its operating revenue decline by 3.5% to RM1.65 billion, Takaful Malaysia s PBZT increased by 4% from RM179.3 million in 2013 to RM186.7 million. Its profit after tax and zakat (PATZ) grew by 3%, to RM138.7 million from RM134.4 million. This was largely attributable to lower management expenses. Perspectives accountability Audited Financial Statements Additional Information 18 th AGM information

36 BIMB HOLDINGS BERHAD 28 Letter to shareholders The total asset size increased by 4% to RM7.2 billion, supported by enhanced underwriting for mortgages and General Takaful products. These cushioned the RM244 million drop in take-up of group credit products following the implementation of BNM s more stringent personal financing rules, which led to a decrease in total gross contribution by 5% to RM1.41 billion. Segment-wise, General Takaful s gross contribution grew 5% from 2013 to close at RM451.3 million, while gross contribution from Family Takaful decreased by 9% to RM958.1 million as a result of a significant drop in group credit products. I am pleased to share that Takaful Malaysia was able to complement its sound underwriting performance with equally impressive investment results despite the challenging 2014 investment environment. There were significant shifts in the global financial market landscape where the economic growth of many countries in Asia grew at a more subdued pace. Locally, the financial market also registered a lower growth than anticipated. Nonetheless, maintaining a cautious approach, particularly for equities and sukuk, and greater focus on portfolio diversification, the Company delivered a sustainable five-year average investment yield of more than 6% per annum. Innovating on Products, Building the Brand During the year, Takaful Malaysia maintained its edge by meeting customers needs with innovative products, and focusing on excellent service delivery. In addition, it enhanced its infrastructure and operations, grew its network, empowered its agency force and established strategic partnerships with corporate clients and bank partners. These, coupled with more aggressive marketing and branding campaigns, helped Takaful Malaysia to further expand its market share. The most significant product launch was that of the Takaful myhealth Protector, an innovative approach to healthcare offering an attractive range of in- and out-patient benefits and a choice of eight (8) medical plans at affordable premiums. The product also increases the maximum entry age to 70 years, enabling those who are healthy and without medical coverage to be insured. As an added value proposition, Takaful myhealth Protector extends Takaful Malaysia s 15% Cash Back promise to its health care plan participants. A key differentiator of Takaful Malaysia is its Cash Back offerings. In its campaigns, therefore, Takaful Malaysia places much emphasis on driving greater awareness of the unrivalled value it offers customers. Takaful Malaysia s No Claims? Get 15% Cash Back For Motor Insurance outdoor advertising campaign was a case in point. This was complemented by advertising via other channels and through strategic partnerships to strengthen the Takaful Malaysia image, and educate the non-muslim market segment of the relevance of its products in meeting their needs. In its point-of-purchase advertising for Motor Takaful, Takaful Malaysia made the most of the opportunity to introduce consumers to its extensive range of products, and to engage specifically with potential non-muslim customers. Takaful Malaysia also took its advertising collaboration with Tesco Stores Malaysia one step further. From conventional advertising posters, it launched into full-wall wraps covering every inch of the side walls of the travellator walkaway at 15 Tesco outlets throughout Malaysia. This advertising blitz will run for one year from June Targeting corporate customers, and especially those who have subscribed to its Employee Benefits protection plans, Takaful Malaysia launched the Takaful mycorporate portal as an online one-stop centre. With just a few clicks of the button, corporate customers can update information on their employees and these will be incorporated instantly for immediate coverage. The portal also enables clients to access all information relating to their companies takaful insurance packages and certificates. Further improving customer access to its services, Takaful Malaysia opened its third Takaful Retail Centre at the Lembaga Tabung Haji Islamic Financial Service Centre ( IFiC ) at Jalan Tun Razak, Kuala Lumpur. Takaful Malaysia was inspired by the one-stop centre concept of IFiC to convert its existing Takaful mydesk at Lembaga Tabung Haji s headquarters into a Takaful Retail Centre. The Takaful Retail Centre will not only function as a collection centre for both General and Family products but will also act as a servicing centre to assist customers in their certificate servicing and claim submissions.

37 29 BIMB HOLDINGS BERHAD Letter to shareholders Leadership Corporate Framework Internally, Takaful Malaysia continued to stay lean and agile in its operations to deliver lasting reserves and sustainable organisational efficiencies. Leveraging on enhanced systems and processes, it managed to reduce costs and its inventory as it further grew its business. Takaful Malaysia has consistently been recognised for its high level of operational effectiveness and the trust it engenders from customers. For three (3) consecutive years at the International Takaful Awards, Takaful Malaysia won the title of the Best Takaful Company in Malaysia in recognition of the superior quality of its wide range of solutions to meet customer s needs. Takaful Malaysia was also a top-three winner in three (3) categories of The Edge Billion Ringgit Club Corporate Awards The company clinched second place for the Best Performing Stock - Highest Returns to Shareholders Over three (3) Years; third place for the Most Profitable Company - Highest Return on Equity Over three (3) Years; and third place for the Highest Profit Growth Company - Highest Compound Growth in Profit Before Tax Over three (3) Years. BIMB SECURITIES It was a challenging year for investors, especially the fourth quarter. Foreign funds selling coupled with battering of the oil and gas sector were main reasons for the roller coaster ride. For the year, the FBMKLCI lost 5.66% as opposed to the Emas Shariah Index which declined by 4.17%. The below expectation performance was attributed to a massive outflow of foreign funds totalling RM6.9 billion for the year from a net inflow of RM3.1 billion in Nevertheless, market volatility increased the value of dealing and brokerage income at BIMB Securities Sdn Bhd ( BIMB Securities ) in The company achieved an increase of 18% in value of dealing compared with This also led to a 16% increase in gross brokerage income to RM million compared with RM million in 2013, and a 13% growth in the total net dealing income from the previous year. The stockbroking group (including Nominees companies) recorded a total income of RM14.5 million, an increase of 10% compared with the previous year, but with a lower PBZT of RM0.6 million. Other investments yielded lower returns compared with the previous year, thus contribution to the profit was much lower. The Company also rolled out several technological initiatives in 2014, such as the Intranet and Document Management System, for greater work efficiency and to reduce paper use. In addition, ebroking initiatives were deployed whereby share margin clients are now able to trade via the online trading system. epayment via and were also introduced, allowing clients to pay BIMB Securities via the banking internet portal. Further initiatives with Bursa Securities were also made during the year, such as the trade confirmation messages sent via Dropcopy FIX connection files and the introduction of BursaMktPlc ( a platform created by Bursa Securities for the public to interact with Opinion Leaders at the different stockbroking companies. SYARIKAT AL-IJARAH Syarikat Al-Ijarah Sdn Bhd is the Group s leasing arm. For the financial year ending December 2014, it posted a PBZT of RM0.35 million, which was 16.7% lower than the PBZT of RM0.42 million in Performance Review Perspectives accountability Audited Financial Statements Additional Information 18 th AGM information

38 BIMB HOLDINGS BERHAD 30 Letter to shareholders CORPORATE GOVERNANCE The Board of Directors of BHB has always maintained the highest level of corporate governance to ensure the integrity and transparency of our operations. Our corporate governance framework is guided by the Malaysian Code on Corporate Governance (MCCG) 2012 and is constantly updated to reflect changes in the regulatory environment. In line with the IFSA and its requirement for Islamic financial holding companies to have greater oversight and control over the activities of the companies within its fold, BHB has enhanced our governance structure by establishing at the Board level, a new Group Board Risk Committee, whilst at the management level, a new Group Management Committee and Group Enterprise Risk Management Committee which will be implemented in FY2015. These Committees will meet regularly to discuss strategic issues within the Group, thus ensuring BHB not only meets the regulatory requirements but also maintains the highest standards in our internal control, effective capital and risk management, create business synergies within and drive the business objectives of the Group. Our new governance structure underlines the Group s commitment to strengthening the Islamic financial services industry in the country, aiding in the establishment of Malaysia as a regional Islamic financial hub. In the process, we will also elevate BHB as the premier Shariah-compliant financial services group in the country. Board of Directors Board Committees Nomination and Assessment Committee Remuneration Committee Audit and Examination Committee Group Board Risk Control Committee Management Committees Group Management Committee (GMC) Group Chief Executive Officer Group Enterprise Risk Management Committee (GER)

39 31 BIMB HOLDINGS BERHAD Letter to shareholders Leadership Corporate Framework CORPORATE RESPONSIBILITY As a responsible Islamic organisation, BHB makes regular zakat (business tithes) payments to the Islamic authorities in the different states. In 2014, in addition to paying zakat, Bank Islam developed new zakat computation guidelines for the industry, making it easier for us and all Islamic corporations to perform their duty. Over and above zakat contributions, we play an active role in the communities where we have a presence by contributing to the social and economic well-being of those who are underprivileged or marginalised. Through our subsidiaries, we have adopted a couple of orphanages and contribute to their administration. In addition, our employees dedicate their own personal time to spend with the children, especially during festive occasions such as Aidilfitri. Our contributions to society are not confined to Malaysian shores, but have been extended to those in need overseas. Over the past few years, we have been supporting the Palestinian cause via a variety of channels. Although our industry does not contribute significantly to climate change, we take our responsibility to protecting the natural environment seriously. Towards this end, we have been educating children about the importance of environmental conservation while actively participating in various activities such as rehabilitating mangrove forests that directly enhance our ecosystem and safeguard the environment for future generations. OUTLOOK As the US economy continues to surge forward, much of Europe and other economic powerhouses such as Japan and, to some extent China, are still grappling to fend off deflationary pressures. This has led to a slew of monetary easing measures, with a number of central banks launching into quantitative easing ( QE ) programmes to resuscitate demand. In Malaysia, to consolidate its fiscal health, the Government has revised allocations for various sectors under Budget 2015 in anticipation of a challenging environment exacerbated by low oil prices. Consequently, fiscal deficit is projected to reach 3.2% of GDP from the initial estimate of 3.0%. In the same vein, GDP growth forecast in 2015 was lowered to 4.5% and 5.5% from 5.0% and 6.0% previously. At BHB, we expect the challenging financial landscape to further narrow the net income margin. Exacerbating the situation, the Goods and Services Tax ( GST ) implemented on 1 April 2015, is likely to increase banking and takaful costs to a certain extent. Although the GST is widely thought to increase inflation, at least in the initial stages, the continued decline in commodity and oil prices will keep the consumer price index in check. Demand for financing has been decreasing gradually, and could continue into With innovative and attractive financing products, however, Bank Islam is confident of being able to shore up its financing portfolio. This will be complemented by targeted efforts to increase the Bank s deposits as well as investment accounts. As the Bank continues with its H2E programme, it will further strengthen its fundamentals and be better positioned to create greater demand for Islamic banking, as well as to capitalise on opportunities that will arise from a supportive and vibrant ecosystem. Performance Review Perspectives accountability Audited Financial Statements A much repeated sentiment within the corporate realm today is that only one thing is certain, namely uncertainty. This seems to accurately describe the global environment, which has been extremely volatile over the last few years, and shows no sign of settling into any predictable pattern. Takaful Malaysia will maintain an active management strategy coupled with prudent underwriting and investment activities. In anticipation of more corporations and multinationals entering the takaful market, it will enhance its focus on innovative and customer-centric products, and its culture of customer service excellence. It will also reinforce its brand name and reputation via strategic marketing campaigns that drive home its unique 15% Cash Back proposition. Additional Information 18 th AGM information

40 BIMB HOLDINGS BERHAD 32 Letter to shareholders Building on its multi-channel distribution network, it aims to outpace the market and firmly establish itself as the preferred choice not just among takaful companies but all conventional insurance providers. An area of focus will be Islamic financing products. As Shariah-compliant financing gains traction in the market, there will be a greater need for takaful as a valid risk transfer mechanism, and Takaful Malaysia intends to fully explore the potential of this niche. We expect the local equity market to continue to be challenging as a result of dampened sentiments from the outflow of foreign funds and massive sell-down in the oil and gas sector. At the same time, given the market s current valuation, and Japan s commitment to heightened QE, the local bourse will be well supported by domestic liquidity. The global financial system, too, will be flushed with liquidity from the cautionary monetary policies of most central banks that have been pushing down interest rates as a means of encouraging growth. Overall, the outlook for stockbroking in 2015 will be reflective of the year Barring any unforeseen circumstances, there may be a slight rebound in the market which may improve the situation towards the second half of ACKNOWLEDGEMENTS BHB is at a very exciting phase of our journey, in which we are both shaping as well as being shaped by various forces that are promoting a more transparent, efficient and sustainable Islamic financial system. Our successes to date are the culmination of the contributions of various stakeholders, from our parent organisation to our subsidiaries, our business partners and customers, all of whom I would like to acknowledge. Of special note, I would like to thank the regulators namely BNM, Bursa Securities and the Minority Shareholder Watchdog Group (MSWG), among others as well as analysts, fund managers and members of the media, for their support. To our highly valued shareholders, thank you for your belief in our ability to deliver and for your active participation at our Annual General Meeting. I would also like to express my deepest appreciation to members of the Board of Directors of BHB as well as of our subsidiary companies for their wise counsel which has helped the Group maintain our steady momentum of growth. On behalf of the Board of Directors, meanwhile, I would like to take this opportunity to extend our gratitude to the Management of BHB for its leadership. In particular, we would like to thank our former Group Managing Director/Chief Executive Officer, Dato Johan bin Abdullah, who has steered BHB Group so ably for the last seven (7) years. Dato Johan has recently been appointed as Deputy Group Managing Director and Chief Executive Officer of Lembaga Tabung Haji and we wish him all the best in his future undertakings. Meanwhile, we welcome on board our new Group Chief Executive Officer, Dato Sri Zukri bin Samat who is also the Managing Director of Bank Islam. With his extensive experience in the Islamic banking and financial industry, we have every confidence of Dato Sri Zukri guiding BHB Group to the next phase of its ongoing exciting journey. As for our employees, I speak for the Board when I say that we truly appreciate your commitment to the Group, and your passion to see us achieve our shared vision and goals. Keep up the excellent work, and BHB will certainly continue to Lead the Way in Islamic Financial Excellence. Thank you. Tan Sri Samsudin bin Osman Chairman

41 33 BIMB HOLDINGS BERHAD Sheikh Zayed Mosque in Abu Dhabi, United Arab Emirates Committed towards responsible corporate practices

42 BIMB HOLDINGS BERHAD 36 Letter to shareholders Building on its multi-channel distribution network, it aims to outpace the market and firmly establish itself as the preferred choice not just among takaful companies but all conventional insurance providers. An area of focus will be Islamic financing products. As Shariah-compliant financing gains traction in the market, there will be a greater need for takaful as a valid risk transfer mechanism, and Takaful Malaysia intends to fully explore the potential of this niche. We expect the local equity market to continue to be challenging as a result of dampened sentiments from the outflow of foreign funds and massive sell-down in the oil and gas sector. At the same time, given the market s current valuation, and Japan s commitment to heightened QE, the local bourse will be well supported by domestic liquidity. The global financial system, too, will be flushed with liquidity from the cautionary monetary policies of most central banks that have been pushing down interest rates as a means of encouraging growth. Overall, the outlook for stockbroking in 2015 will be reflective of the year Barring any unforeseen circumstances, there may be a slight rebound in the market which may improve the situation towards the second half of ACKNOWLEDGEMENTS BHB is at a very exciting phase of our journey, in which we are both shaping as well as being shaped by various forces that are promoting a more transparent, efficient and sustainable Islamic financial system. Our successes to date are the culmination of the contributions of various stakeholders, from our parent organisation to our subsidiaries, our business partners and customers, all of whom I would like to acknowledge. Of special note, I would like to thank the regulators namely BNM, Bursa Securities and the Minority Shareholder Watchdog Group (MSWG), among others as well as analysts, fund managers and members of the media, for their support. To our highly valued shareholders, thank you for your belief in our ability to deliver and for your active participation at our Annual General Meeting. I would also like to express my deepest appreciation to members of the Board of Directors of BHB as well as of our subsidiary companies for their wise counsel which has helped the Group maintain our steady momentum of growth. On behalf of the Board of Directors, meanwhile, I would like to take this opportunity to extend our gratitude to the Management of BHB for its leadership. In particular, we would like to thank our former Group Managing Director and Chief Executive Officer, Dato Johan bin Abdullah, who has steered BHB Group so ably for the last seven years. Dato Johan has recently been appointed as Deputy Group Managing Director and Chief Executive Officer of Lembaga Tabung Haji and we wish him all the best in his future undertakings. Meanwhile, we welcome on board our new Group Chief Executive Officer, Dato Sri Zukri bin Samat who is also the Managing Director of Bank Islam. With his extensive experience in the Islamic banking and financial industry, we have every confidence of Dato Sri Zukri guiding BHB Group to the next phase of its ongoing exciting journey. As for our employees, I speak for the Board when I say that we truly appreciate your commitment to the Group, and your passion to see us achieve our shared vision and goals. Keep up the excellent work, and BHB will certainly continue to Lead the Way in Islamic Financial Excellence. Caring Thank you. Tan Sri Samsudin bin Osman Chairman

43 37 BIMB HOLDINGS BERHAD corporate responsibility Launched Programme SL1M Latihan 1Malaysia Bank Islam paid out RM12,028,983 zakat to all 14 states takaful malaysia channelled RM1,081,382 to all 14 state zakat collection centres We care about our customers and Malaysian society as a whole. As we grow, we want Malaysians to grow with us. We therefore give generously of our time and funds to help the underprivileged break out of the poverty cycle and march with the rest of the country into a brighter future.

44 BIMB HOLDINGS BERHAD 34 corporate responsibility COMMUNITY MARKETPLACE As the holdings company of premier Islamic banking, insurance and securities operations, the principles of ethics and integrity are ingrained into BIMB Holdings Berhad ( BHB ) s blueprint. We are guided in all our operations and business decisions not only by financial considerations but also by the impact of our actions on our stakeholders be they our customers, our partners, our employees or the community at large. We have been giving back to the communities that support us over the years via outreach programmes, lending a hand with various projects and providing financial support where required. In the process we have integrated ourselves fully with communities at the grassroots level thus bridging existing gaps in the socio economic divide. As a responsible corporate organisation, we also contribute to the elevation of professional standards in the financial landscape while playing our part in mitigating environmental issues such as climate change and diminishing biodiversity. WORKPLACE ENVIRONMENT Our Corporate Responsibility ( CR ) actions have strengthened our market reputation and added to the value of BHB, which will go a long way towards ensuring our sustainability. We take great pride in all our CR undertakings and present an outline of our activities in the following pages, under the four (4) broad areas of the Community, Marketplace, Workplace and the Environment.

45 35 BIMB HOLDINGS BERHAD corporate responsibility Leadership Corporate Framework COMMUNITY Within the community, BHB along with our subsidiaries Bank Islam and Takaful Malaysia have a tradition of supporting worthy causes; providing financial and other forms of aid to the underprivileged; supporting the attainment of sound education among marginalised children; and promoting an ethical, caring society through a better understanding and practice of the tenets of Islam. Performance Review Perspectives Caring for the Underprivileged During the year, we continued to support a number of social enterprises and organisations that provide aid to the underserved. Together with the International Union of Braille Quran Services, we contributed RM15,000 to the Persatuan Braille Malaysia to standardise symbols in braille Qurans worldwide. We also presented two (2) defibrillator machines worth RM25,000 each to Lembaga Tabung Haji. the donation of RM23,000 to help improve their livelihood. Under the Program Rumah Bantuan Bank Islam, meanwhile, it spent RM627,000 on building homes for the poor. Other donations from the Bank included an amount of RM244,700 towards Menuju Destini Anak Bangsa, a fund for poor students; the Development of Wakaf land in the Federal Territory; charitable organisations; selected asnaf (recipients) in Perlis and a van for the Majlis Agama Islam dan Adat Istiadat Melayu Perlis. accountability Audited Financial Statements Other beneficiaries of our donations included the Persatuan Kebajikan Anak- Anak Yatim Islam Wilayah Persekutuan Kuala Lumpur (PERKAYATIM) which works with orphans; and the Majlis Orang- Orang Besar DiRaja Kelantan which undertakes various charitable activities. One of the highlights of Bank Islam s community programmes during the year was a gotong-royong (clean-up) at Rumah Ehsan Kuala Kubu Bharu old folks home where volunteers from the Bank helped to brighten up the house and its surroundings while also spending time with the residents. The Bank also donated hospital beds and hydraulic shower trolleys worth RM30,000 to the home. In addition, it brought new meaning to the lives of fishermen with These donations were over and above its contributions to the state zakat (business tithes) centres, which amounted to RM12,028,983. For its part, Takaful Malaysia contributed RM1,814,539 to 90 charitable organisations and needy individuals, in addition to channelling a total of RM1,081,382 to the 14 state zakat collection centres. Palestinian Aid Relief We do not confine our outreach programmes to local shores, but extend aid to deserving communities wherever in the world they may be. For the second year running we provided support to Palestinians in the Gaza Strip by donating RM20,000 to the Tabung Sumbangan TH- Palestin under a programme managed by the Prime Minister s Department. We also contributed RM24,000 to the Persatuan VIVA Palestina Malaysia to sponsor the attendance of 30 blind Palestinian children at a Quran memorisation camp in Gaza. Educational Support Firm in the conviction that education is a powerful socio-economic enabler, we give generously to various programmes and initiatives to ensure every child in the country has the resources to enjoy a sound education. Additional Information 18 th AGM information

46 BIMB HOLDINGS BERHAD 36 corporate responsibility The year 2014 saw us donate RM5,000 to the Kumpulan Wang Amanah Pelajar Miskin in support of the Ministry of Education s efforts to reduce the school drop-out rate to zero. At year end, we also held an inaugural Back To School ceremony which our Group Managing Director/CEO Dato Johan bin Abdullah presented complete sets of school uniforms and school bags to the children of deserving BHB staff. Bank Islam presented a total of RM21,205 including school items to children of Muallaf via the Pertubuhan Kebajikan Muallaf Daerah Kluang and donated used computers to SK (L) Jalan Batu in Kuala Lumpur; SMK Bandar Tenggara in Kulaijaya, Johor and SMK Paloh in Kluang, Johor. At the tertiary level, the Bank presented RM45,000 to Universiti Teknologi MARA (UiTM) Shah Alam for its annual Invention, Innovation & Design Exposition 2014 (IIDEX). UiTM was also the beneficiary of sponsorship by Takaful Malaysia, which continued to provide financial support to its Actuarial Science students. For the second consecutive year, Takaful Malaysia contributed RM50,000 to diploma and undergraduate students in this field, which supplies the highly skilled statisticians needed by the insurance industry. Moral and Ethical Development Both BHB and Bank Islam contributed towards greater understanding of Islam via sponsorships of seminars and other knowledge-sharing events. BHB supported Persatuan Amanah Hawi Al-Khairat s one (1)-day seminar on Modern Society and the Tolerance of Muhammad; while our subsidiary channelled funds towards the IImFest Malaysia Conference 2014 and Seminar Pengurusan Kualiti Islam (I-QAM 2014). In addition, BHB donated RM4,800 to An-Najjah Malaysia, an NGO that focuses on the underprivileged and new Muslim converts; and purchased 39 copies of a coffee table book entitled Expressions of Merdeka A Pictorial Journey in support of Yayasan Pendidikan Islam. For its part, Bank Islam contributed a total of RM64,350 towards the renovation of surau (prayer halls) in schools, as well as to support the community activities organised by various mosques. Both our subsidiaries contributed towards the Haj pilgrimage, with Bank Islam donating RM210,000 to the Majlis Penghargaan Sahabat Korporat TH 1435H; and Takaful Malaysia sponsoring RM84,000 in the form of books entitled Panduan Ibadah Haji Wanita, a handbook for women performing Haj. Ramadan Activities The spirit of volunteerism and caring truly shines at BHB and our subsidiaries during the month of Ramadan, when we go the extra mile to bring smiles to those who are less privileged. During the year under review, BHB donated RM7,200 towards the preparation of 15 pots of bubur lambuk (savoury porridge) at Masjid Jamek Kampung Baru, Kuala Lumpur which were distributed by volunteers led by our Group Managing Director/CEO, Dato Johan bin Abdullah. Bank Islam contributed a total of RM578,750 to various activities targeted for the underprivileged as well as to show its appreciation of personnel who perform significant public duty such as the police, immigration and customs officers, doctors and nurses and members of the media. Continuing with tradition, Takaful Malaysia donated RM100,000 to Pertubuhan Al- Khaadem Home of Hope in addition to hosting a Majlis Berbuka Puasa at the home in Shah Alam which houses 50 children. Takaful Malaysia also took 64 children from Pertubuhan Kebajikan Anak-anak Yatim Al-Nasuha (Rumah Al-Nasuha) on a shopping spree at the One Utama Shopping Mall. This was the fourth consecutive year that Takaful Malaysia had organised this event. In addition, its senior management presented duit raya (money) and goodies to the children.

47 37 BIMB HOLDINGS BERHAD corporate responsibility Corporate Framework MARKETPLACE BHB and our subsidiaries have been strengthening our position in the marketplace by intensifying our stakeholder engagement while also contributing towards the enhancement of the financial sector in Malaysia. A key development during the year was the launch of the SL1M Graduate Trainee Programme that saw 100 graduates undergo soft skills training and six-month on-thejob training in BHB and our subsidiaries. We hope this initiative will help reduce the number of unemployed graduates as well as supply some much needed talent in the Islamic financial services industry. The group also made significant contributions to various industry award ceremonies that serve to enhance standards and inspire a shift in mindset towards sustainability. Together, we contributed a total of RM154,085 to: the Malaysian- ASEAN Corporate Governance Index 2014 and Award Ceremony; the Islamic Finance News Awards Ceremony 2014; the Press Awards Ceremony organised by the Malaysian Press Institute; the CEO of the Year Asia 2014 and the Global Islamic Finance Awards Towards the promotion of higher levels of professionalism, we supported a number of conferences and seminars, including the Islamic Finance Awareness Programme 2014: Contemporary Issues on Islamic Banking Products & Services, organised by IBFIM; the 16 th Malaysian Finance Association Conference; National Tax Conference 2014; and KLIFF Islamic Finance Presentation. A key stakeholder group are our customers, whose interests drive our commitment to deliver innovative products and exceptional service. Bank Islam has continuously created waves with its pioneering offerings, such as TAP Mobile Banking-i service, one of the first mobile banking services to be launched in the country; the first floating rates for personal financing; and the first multi-purpose university debit card, designed especially for the students and staff of Universiti Malaysia Kelantan (UMK). In 2014, a similar multi-functional debit card was introduced for students of Universiti Malaysia Pahang (UMP). Over and above the functionalities of a standard debit card, this University Debit Card-i (UniDebit) provides university and library access as well as university identification functionalities. With customers convenience in mind, the Bank is transitioning swiftly into more online services and transactions. Having upgraded its Internet banking platform its system is able to manage 500 concurrent Internet banking users, up from 100 previously. Using this portal, customers can open accounts online and make mobile electronic payments. Guided by a Service Transformation Roadmap, the Bank has also set up a Customer First Committee to enhance the management of complaints and feedback. In addition, it has opened a mock training branch for new front liners to equip them with customer-centric skills. Ultimately, Bank Islam aims to offer a seamless customer service experience across all its customer touch points. Leadership Performance Review Perspectives accountability Audited Financial Statements Additional Information 18 th AGM information

48 BIMB HOLDINGS BERHAD 38 corporate responsibility Takaful Malaysia s customer promise of a 15% cash back to those who make no claims underlines a very strong customer-centric ethos which places the operator in a league of its own in the insurance industry. The rebate is extended to all General takaful products and selected Family product which was made applicable to Takaful Malaysia s latest offering, Takaful myhealth Protector. The plan not only provides very comprehensive health coverage but also increases the maximum age for protection up to 70 years, thus catering to more senior citizens for whom such service makes a significant difference. Striving continuously to serve its customers better, Takaful Malaysia launched a new mytakaful Corporate portal that affords its corporate clients the convenience of managing their Group Medical and Group Term Takaful plans online. It also made its counter services more accessible by opening its third Takaful Retail Centre, at Lembaga Tabung Haji s Islamic Financial Service Centre (IFiC) on Jalan Tun Razak, Kuala Lumpur. Customers will not only be able to sign up for General and Family products but will also be able to service their certificates and submit claims here. WORKPLACE In an industry that is as competitive and dynamic as financial services, it is critical to have a competent and motivated workforce to maintain an edge. Recognising this, BHB and our subsidiaries are committed to attracting and retaining the best talent. Not only do we offer very attractive remuneration packages, we also enhance our employees professional development via continuous training opportunities and seek to create an environment in which their personal, spiritual and health needs are also taken care of. As part of its transformation programme, Bank Islam is placing increased emphasis on creating a high-performance culture. The idea is to build the capabilities and capacity of all employees to meet evolving regulatory requirements as well as the demands of a changing customer demographic. While enhancing leadership, technical and functional skills across the board, there is also increased focus on nurturing specialised knowledge in areas that are key to sustainable growth in today s financial services landscape, such as Risk Management, Shariah, Credit and Compliance. At Takaful Malaysia, concerted efforts are made to increase its agency force and to provide them with continuous training to strengthen their respective retail agency distribution channels. This is supported by enhanced efficiencies at the head office, where continuous investments are made in new technologies to increase productivity and enable better customer service. In order to attract more talent into the industry, Takaful Malaysia strives to create greater awareness of the promising career path that awaits individuals who seek to build their wealth by contributing in a meaningful way to the well-being of others.