BIMB Integrated Annual Report 2017

DIRECTORS’ INTERESTS IN SHARES None of the Directors of the Company holding office at 31 December 2017 had any interest in the shares and options over shares of the Company and of its related corporations during the financial year. DIRECTORS’ BENEFITS Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than benefits included in the aggregate amount of remuneration received or due and receivable by the Directors as shown in Note 38 to financial statements or the fixed salary of a full time employee of the Company or of related corporations) by reason of a contract made by the Company or a related corporation with the Director or with a Company of which the Director is a member, or with a Company in which the Director has a substantial financial interest. There were no arrangements during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of shares in or debentures of the Company or any other body corporate. INDEMNITY AND INSURANCE COSTS During the financial year, the total amount of insurance cost incurred for Directors and officers liability insurance of the Group and of the Company are RM276,959 and RM106,663 respectively. ULTIMATE HOLDING COMPANY The Company is a subsidiary of Lembaga Tabung Haji, a hajj pilgrims’ fund statutory body established in Malaysia and regarded by the Directors as the Company’s ultimate holding company, during the financial year and until the date of this report. SUBSIDIARIES The details of the Company’s subsidiaries are disclosed in Note 14 to the financial statements. 2018 BUSINESS PLAN AND OUTLOOK BUSINESS PLAN, STRATEGY AND FUTURE OUTLOOK Islamic Banking The Bank’s corporate direction for 2018 is premised on the overarching themes of Value-Based Intermediation (“VBI”). VBI is at the heart of the Bank’s business model, to deliver a sustainable performance with a strategic focus to support economic, social and environmental development. Shariah rules and principles remain as fundamentals to the Bank’s direction along with the new Triple Bottom Line (“TBL”) approach embedded in all operating principles. The Bank will focus on optimising its risks and returns, optimising its resource and productivity as well as its franchise value, which is underpinned by a disciplined balance sheet management. This is to sustain net income margin, preserve asset quality as well as to minimise financial impact arising from the implementation of Malaysian Financial Reporting Standards on Financial Instruments (“MFRS 9”) in 2018 and the upcoming Net Stable Funding Ratio (“NSFR”) requirements. The Bank will stay the course with its strategy to collaborate with FinTech companies in enhancing its reach and spurring innovation. The Bank will also carry on to invest in its people, to build a strong compliance and risk culture as well as enhance its capability and capacity as one of the key players in Islamic Finance world. DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2017 159 Overview Value Creation Accountability Financial Statements Sustainability Performance Data Shareholders Information 21 st AGM Information Management Discussion & Analysis