BIMB Integrated Annual Report 2017

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the financial year ended 31 December 2017. PRINCIPAL ACTIVITIES The Company is principally engaged as an investment holding company with business transacted in accordance with Islamic principles, whilst the principal activities of the subsidiaries are as stated in Note 14 to the financial statements. There has been no significant change in the nature of these activities during the financial year. RESULTS GROUP COMPANY RM’000 RM’000 Profit for the year attributable to: Owners of the Company 619,838 245,459 Non-controlling interests 83,792 – 703,630 245,459 ISSUE OF SHARES AND DEBENTURES During the financial year, the Company increased its issued and paid-up capital from RM1,588,680,014 to RM1,637,741,014 via the issuance of 49,061,000 new ordinary shares for at a consideration of RM3.75 each arising from the Dividend Reinvestment Plan. No warrants were converted during the financial year ended 31 December 2017 (2016: 800). There were no other changes in the authorised, issued and paid-up capital of the Company during the financial year. There were no debentures issued during the financial year. OPTIONS GRANTED OVER UNISSUED SHARES No options were granted to any person to take up unissued shares of the Company during the financial year. As at 31 December 2017, 426,715,078 warrants remained unexercised. RESERVES AND PROVISIONS During the financial year ended 31 December 2017, the Group has transferred RM1,124,774,000 from its reserve fund to its retained earnings pursuant to the Revised Policy Document on Capital Funds for Islamic Banks issued by Bank Negara Malaysia (“BNM”) on 3 May 2017, as disclosed in Note 2.1(a)(ii) and 25.2. During the financial year ended 31 December 2017, the Group has also transferred RM64,645,000 from its retained earnings to regulatory reserve to comply with BNM’s Policy on Classification and Impairment Provisions for Financing, as disclosed in Note 25.2. DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 154 BIMB HOLDINGS BERHAD Integrated Annual Report 2017