Table of Contents 1 417

BIMB Integrated Annual Report 2017

BIMB Annual Report 2017 1
CONTENTS 4
OVERVIEW 8
CORPORATE INFORMATION 8
SHAREHOLDING STRUCTURE 10
OUR PURPOSE 12
OUR PROFILE 14
OUR FOOTPRINT 16
OUR BUSINESS MODELS 18
BIMB HOLDINGS BERHAD 18
BANK ISLAM MALAYSIA BERHAD 20
SYARIKAT TAKAFUL MALAYSIA BERHAD 22
LETTER TO SHAREHOLDERS 24
FINANCIAL PERFORMANCE HIGHLIGHTS 30
FINANCIAL CALENDAR 33
VALUE CREATION 36
VALUING LIVES 36
KEY OUTCOMES 40
STAKEHOLDER ENGAGEMENT 42
OUR MATERIAL MATTERS 44
MANAGEMENT DISCUSSION & ANALYSIS 50
THE MARKET LANDSCAPE 50
BIMB HOLDINGS BERHAD’S PERFORMANCE REVIEW & OUTLOOK 54
BANK ISLAM MALAYSIA BERHAD’S PERFORMANCE REVIEW & OUTLOOK 59
SYARIKAT TAKAFUL MALAYSIA BERHAD’S PERFORMANCE REVIEW & OUTLOOK 61
BIMB SECURITIES SDN BHD’S PERFORMANCE REVIEW & OUTLOOK 64
2018 STRATEGIC JOURNEY 66
ACCOUNTABILITY 70
BOARD OF DIRECTORS 70
CHAIRMEN OF SHARIAH COMMITTEES 78
CEOs OF THE GROUP 82
MANAGEMENT 86
SHARIAH-COMPLIANT CONFIRMATION STATEMENT 90
CORPORATE GOVERNANCE OVERVIEW STATEMENT 92
CHAIRMAN’S CORPORATE GOVERNANCE (“CG”) OVERVIEW REPORT 92
AUDIT & EXAMINATION COMMITTEE CHAIRMAN’S REPORT 116
NOMINATION & REMUNERATION COMMITTEE CHAIRMAN’S OVERVIEW REPORT 126
BOARD RISK COMMITTEE CHAIRMAN’S OVERVIEW REPORT 137
STATEMENT ON RISK MANAGEMENT AND INTERNAL CONTROL 141
ADDITIONAL COMPLIANCE INFORMATION 148
STATEMENT ON DIRECTORS’ RESPONSIBILITY 151
FINANCIAL STATEMENTS 155
DIRECTORS’ REPORT 156
STATEMENTS OF FINANCIAL POSITION 163
STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 165
STATEMENTS OF CHANGES IN EQUITY 167
STATEMENTS OF CASH FLOWS 170
NOTES TO THE FINANCIAL STATEMENTS 172
1. PRINCIPAL ACTIVITIES AND GENERAL INFORMATION 172
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 172
3. CASH AND SHORT-TERM FUNDS 196
4. DEPOSITS AND PLACEMENTS WITH FINANCIAL INSTITUTIONS 196
5. FINANCIAL ASSETS HELD-FOR-TRADING 196
6. DERIVATIVE FINANCIAL ASSETS/(LIABILITIES) 197
7. FINANCIAL ASSETS AVAILABLE-FOR-SALE 197
8. FINANCIAL ASSETS HELD-TO-MATURITY 198
9. FINANCING, ADVANCES AND OTHERS 199
10. OTHER ASSETS 204
11. TAKAFUL ASSETS 204
12. STATUTORY DEPOSITS WITH BANK NEGARA MALAYSIA 205
13. DEFERRED TAX ASSETS 205
14. INVESTMENTS IN SUBSIDIARIES 206
15. PROPERTY AND EQUIPMENT 210
16. INVESTMENT PROPERTIES 212
17. INTANGIBLE ASSETS 216
18. DEPOSITS FROM CUSTOMERS 217
19. INVESTMENT ACCOUNTS OF CUSTOMERS 218
20. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS 220
21. OTHER LIABILITIES 221
22. TAKAFUL LIABILITIES 221
23. SUKUK LIABILITIES 226
24. SHARE CAPITAL 227
25. RESERVES 228
26. EMPLOYEE BENEFITS 230
27. SOURCES AND USES OF CHARITY FUNDS 232
28. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS 233
29. INCOME DERIVED FROM INVESTMENT ACCOUNT FUNDS 236
30. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS 237
31. NET INCOME FROM TAKAFUL BUSINESS 238
32. NET ALLOWANCE FOR IMPAIRMENT ON FINANCING AND ADVANCES 239
33. ALLOWANCE FOR IMPAIRMENT ON INVESTMENTS 239
34. INCOME ATTRIBUTABLE TO DEPOSITORS 240
35. INCOME ATTRIBUTABLE TO INVESTMENT ACCOUNT HOLDERS 240
36. PERSONNEL EXPENSES 240
37. OTHER OVERHEAD EXPENSES 241
38. CHIEF EXECUTIVE OFFICER, DIRECTORS AND SHARIAH SUPERVISORY COUNCIL MEMBERS’ REMUNERATION 242
39. KEY MANAGEMENT PERSONNEL 246
40. TAX EXPENSE 246
41. EARNINGS PER SHARE 248
42. DIVIDENDS 248
43. RELATED PARTY TRANSACTIONS 249
44. CAPITAL ADEQUACY 250
45. FINANCIAL RISK MANAGEMENT POLICIES 252
46. TAKAFUL RISK MANAGEMENT 280
47. FAIR VALUE OF FINANCIAL INSTRUMENTS 288
48. CAPITAL COMMITMENTS 293
49. LEASE COMMITMENTS 294
50. CAPITAL MANAGEMENT 294
51. OPERATING SEGMENT INFORMATION 295
52. COMMITMENTS AND CONTINGENCIES 297
53. SUBSEQUENT EVENTS DURING THE FINANCIAL YEAR 298
STATEMENTBY DIRECTORS 299
STATUTORY DECLARATION 300
INDEPENDENT AUDITORS’ REPORT 301
SHAREHOLDERS INFORMATION 307
PROPERTIES OWNED 307
SHARE & WARRANT HOLDINGS STATISTICS 314
REGIONAL GROUP NETWORK 320
SUSTAINABILITY PERFORMANCE DATA 321
FTSE4GOOD BURSA MALAYSIA (“F4GBM”) 321
GLOBAL REPORTING INITIATIVE (“GRI”) G4 327
21ST AGM INFORMATION 331
NOTICE OF THE 21ST ANNUAL GENERAL MEETING 331
STATEMENT ACCOMPANYING NOTICE OF 21ST ANNUAL GENERAL MEETING 334
PROXY FORM 337

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