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Ambank Group: Integrated Annual Report 2020

IM Insights
By IM Insights
4 years ago
Ambank Group: Integrated Annual Report 2020

Amanah, Halal, Islam, Islamic banking, Maqasid, Murabahah, Shariah, Sukuk, Takaful, Wakalah, Zakat, Credit Risk, Effective Capital, Participation, Provision, Receivables, Reserves, Sales

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  1. GROWING TRUST CONNECTING PEOPLE AMMB Holdings Berhad 199101012723 (223035-V) INTEGRATED REPORT 2020
  2. We want to deliver the best banking experience possible for our customers . Which is why we are committed to building trusted relationships that last. With more than 40 years of expertise and over three million customers across Malaysia, we aim to connect our customers to better opportunities and help them achieve their financial goals. We help people buy new homes, grow their business, save, invest, receive better education and make plans for the future. As a bank for all Malaysians, we will continue to grow and progress with our customers, our people and the nation.
  4. About Our Report AMMB Holdings Berhad ’s Integrated Report (AmBank Group Integrated Report 2020) is our principal report and is supplemented by supporting online disclosures for our stakeholders. These disclosures include condensed financial statements for our quarterly and yearly performance. AmBank Group Integrated Report 2020 Integrated Report Governance and Financial Reports CONTENT Provides a comprehensive overview of AmBank Group’s performance, including milestones and achievements for the 2020 financial year and its outlook for FY2021. CONTENT Provides detailed reporting of Corporate Governance Statements, as well as Financial Statements and the Audited Annual Financial Results for the 2020 financial year and its outlook for FY2021. REGULATIONS COMPLIED • International Integrated Reporting Framework (IIRF) of the International Integrated Reporting Council (IIRC) • Main Market Listing Requirements (MMLR) of Bursa Securities Malaysia Berhad (Bursa Securities) • Corporate Governance Guide (3 rd Edition) issued by Bursa Malaysia Berhad (Bursa Malaysia) • Companies Act 2016 • Securities Commission Malaysian Code on Corporate Governance 2017 • Global Reporting Initiative (GRI) Standards • Limited Assurance by SIRIM QAS International Sdn Bhd REGULATIONS COMPLIED • Securities Commission Malaysian Code on Corporate Governance 2017 • MMLR of Bursa Securities • Corporate Governance Guide (3rd Edition) issued by Bursa Malaysia • Companies Act 2016 • Bank Negara Malaysia (BNM) Policy Documents and Guidelines • Malaysian Financial Reporting Standards • International Financial Reporting Standards • Financial Services Act 2013 • Islamic Financial Services Act 2013 Navigation Icons Capitals Material Matters Stakeholders Financial Capital Human Capital Geopolitical & Economic Trends Technology & Digital Transformation Governance & Compliance Customers Employees Suppliers Intellectual Capital Manufactured Capital Customer Satisfaction Leadership & Talent Environmental, Social & Governance (ESG) Factors Government & Regulators Community/NGO/ Civil Society Shareholders/ Investors Natural Capital Social & Relationship Capital Business Partners Media SustainabilityCertified Bodies Online Version ambankgroup.com Cross References IR Tells you where you can find more information within the Integrated Report 2020 (IR 2020) GFR Tells you where you can find more information within the Governance and Financial Reports 2020 (GFR 2020) Tells you where you can find more information online at ambankgroup.com AmBank Group Integrated Report (IR) 2020 Forward-looking Statements This Integrated Report covers the primary activities of AmBank Group and gives a simple yet comprehensive overview of our financial and non-financial milestones and achievements during the period 1 April 2019 to 31 March 2020 (FY2020), unless indicated otherwise. This Report contains certain forward-looking statements relating to AmBank Group’s future performance. These statements and forecasts are based on current assumptions and circumstances which may change, hence necessarily involve uncertainties. Various factors may cause actual results to differ materially from those expressed or implied by these forwardlooking statements. By studying this Report, our stakeholders can learn about our strategies; businesses and performance; approach to governance and risks; as well as our future goals. This Report demonstrates our commitment to accountability and aims to strengthen the trust of our stakeholders.
  5. What ’s Inside This Report 29 th Annual General meeting Board Room, 26 th Floor Bangunan AmBank Group Jalan Raja Chulan 50200 Kuala Lumpur Malaysia Thursday, 27 August 2020 10.00 a.m. About Our Report 01 4 6 10 12 02 Overview of AmBank Group Our Approach to Integrated Thinking Overview of AmBank Group • Who We Are • Delivering Value to Our Customers • Where We Operate • What We Do How We Are Structured Why Invest In Us Key Messages 14 Message from the Chairman 20 Group Chief Executive Officer’s Message 03 Key Highlights 32 Business Highlights 33 Financial Highlights 34 Our Value Creating Business Model 04 Management Discussion and Analysis A. Strategic Review 37 Operating Landscape • Economic Review • Banking Review 40 Stakeholder Engagement 42 Material Matters 44 Key Risks And Mitigation 47 Our Strategy B. Performance Review 60Performance Review by Group Chief Financial Officer 64 Group Financial Highlights 65 Five-Year Group Financial Summary 66 Financial Indicators 67 Simplified Group Statements of Financial Position 68 Segmental Analysis 70 Group Quarterly Financial Performance 71 Key Interest Bearing Assets and Liabilities 72 Statement of Value Added 73 Capital Management 73 Dividends for 2020 74 Credit Rating 75 Balance Sheet Management 76 Financial Calendar 77 Investor Relations C. Business Review 78 Wholesale Banking 82 AmInvestment Bank 87 Retail Banking 91 Business Banking 94 AmBank Islamic 98AmGeneral 102AmMetLife 104 AmMetLife Takaful 05 Leadership 106 Corporate Information 107 Board Diversity 108 Board of Directors 110 Profile of Directors 118 Profile of Company Secretary 119 Profile of Group Senior Management 127 Leading The Way For Value Creation Through Good Governance 06 136 138 139 142 144 152 164 191 195 202 07 Sustainability Report Leadership Commitment Scope of Sustainability Reporting Sustainability Matters Sustainability Framework Sustainability Governance Responsible Banking Conscious Self-Conduct Positive Societal Impact GRI Content Index Independent Assurance Statement Additional Information 206 Notice of Twenty-Ninth Annual General Meeting 211 Statement Accompanying Notice of Annual General Meeting 212 Administrative Guide 217 Group Corporate Directory • Form of Proxy
  6. 4 Our Approach to Integrated Thinking Our value creation story demonstrates the relationship between the various elements involved in achieving our stakeholder goals . By gaining an in-depth understanding of all the factors that impact our ability to create sustainable value for our stakeholders, we are able to better plan and adjust our business in a constantly changing environment filled with challenges to overcome and opportunities to explore. Analyse 1 Operating Landscape 2 Our Capital Resources 3 Stakeholders Identify 4 Formulate Risks and Opportunities 5 Business Strategy Operating Landscape We analyse our operating context to determine the risks and opportunities that have the greatest impact on our ability to create value in the short, medium and long-term. Our Capital Resources Financial Capital Manufactured Capital Human Capital We channel the investments, income and earnings generated by our operations back into the business, allowing us to deliver capital appreciation for sustainable growth. We actively manage our wide network of physical channels and assets to deliver financial services to all customers nationwide, which generate cash flow and capital appreciation. We nurture the knowledge, skills, attitude and innovation capabilities of our employees to realise our vision and remain competitive in the long-term. Intellectual Capital Social and Relationship Capital Natural Capital We sustain and grow the business through our valuesdriven culture, financial expertise, and knowledgebased intangible assets. We build collaborative stakeholder relationships to make our day-to-day operations more effective, thus growing and winning together with the communities where we operate. We optimise the use of natural resources required by our operations in a conservative and responsible manner to minimise our environmental footprint. Stakeholders Customers AMMB HOLDINGS BERHAD Employees Suppliers Government & Regulators 01 Overview of AmBank Group Community/ NGO/Civil Society 02 Key Messages Shareholders/ Investors 03 Key Highlights Business Partners Media SustainabilityCertified Bodies 04 Management Discussion and Analysis
  7. 5 Our Approach to Integrated Thinking GOVERNANC E Wholesale Banking Investment Banking Family Takaful Business Activities Life Insurance Retail Banking 6 Value Creation Business Banking General Insurance Islamic Banking C AP IT AL MANAGEM EN T Risks and Opportunities Business Strategy Value Creation We examine our capabilities to effectively respond to the risks and opportunities identified in our operating context , capitals and stakeholder relationships thus enabling us to develop a long-term strategic approach. We prioritise the matters that are most material to our short, medium and long-term value creation. As such, we are able to identify strategic priorities that will create value for stakeholders. Our integrated approach allows us to deliver sustained value to all our stakeholders. IR IR For more detail, please see pages 34 to 35 Firing Up New Growth Engines For more detail, please see pages 44 to 46 Attain Market Leadership in Key Products Setting Up For Success Optimise Current Engines IR 05Leadership 06 Sustainability Report For more detail, please see pages 47 to 59 07 Additional Information INTEGRATED REPORT 2020
  8. 6 Overview of AmBank Group WHO WE ARE AmBank Group is a leading financial services group with over 40 years of expertise in supporting the economic development of Malaysia . We have over three million customers and employ circa 10,000 people. The Group was listed on the Main Market of Bursa Malaysia in 1988. It is the sixth-largest banking group by assets in Malaysia, with a market capitalisation of around RM9 billion and assets of RM169.2 billion as at 31 March 2020. Our Purpose To help individuals and businesses in Malaysia grow and win together We are not transactional. We focus on relationships by acting as advisors and long-term partners to our customers. We help and earn the trust of our customers by being professional, reliable and fast; and by providing the best possible service. We are more than a retail bank; we go beyond being a corporate bank; and we are greater than an investment bank. We believe in growth for our customers, our people and our business. We support and empower our stakeholders to achieve their aspirations. Externally, we focus on helping our customers to become winners. Internally, we emphasise performance, teamwork and collaboration to achieve our goals. We leverage domestic opportunities to develop our business and help Malaysians grow and win together. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  9. 7 Overview of AmBank Group DELIVERING VALUE TO OUR CUSTOMERS ATMs & CRMs* at 7-Eleven 202 ATMs 170 Retail Banking Branches Electronic Banking Centres 641 170 Branches AmGeneral AmMetLife 29 Branches 4 Counters 15 Branches 39 Agencies Priority Banking Branches Self-Service Terminals 9 1,090 2 AmBank Islamic Branches Internet & Mobile Banking AmOnline AmInvestment Bank 7 Branches 6 RetailBranches Broking AmCard Services MBC^ 15 Data shown as at 31 March 2020 * Cash Recycler Machine ^ Merchant Business Centres 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  10. 8 Overview of AmBank Group WHERE WE OPERATE TOTAL BRANCHES 1 TOTAL ATMs 170 2 TOTAL CRMs 641 TOTAL REGIONAL OFFICES 210 14 13 3 12 4 14 15 11 6 5 7 8 16 9 10 Branches ATMs CRMs * Regional Offices 1. Perlis 1 3 1 – 2. Kedah 6 19 6 3. Pulau Pinang 14 44 4. Perak 18 5. Selangor Branches ATMs CRMs* Regional Offices 9. Melaka 6 26 8 1 – 10. Johor 21 69 30 1 15 2 11. Pahang 8 21 11 1 40 21 1 12. Terengganu 2 14 4 – 36 179 41 3 13. Kelantan 2 14 3 – 6. Kuala Lumpur 23 79 25 3 14. Labuan 1 3 1 – 7. Putrajaya 1 3 2 – 15. Sabah 9 35 13 1 8. Negeri Sembilan 7 37 8 – 16. Sarawak 15 55 21 1 Data shown as at 31 March 2020 * Cash Recycler Machine AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  11. 9 Overview of AmBank Group WHAT WE DO MAIN BUSINESS ENTITIES AmBank (M) Berhad AmBank Islamic Berhad AmInvestment Bank Berhad AmBank (M) Berhad (AmBank) offers a comprehensive suite of financial products and services focused on retail banking and preferred segments in small business, SME, mid-corporate and strategic partners. It is a Member of the Association of Banks in Malaysia. AmBank Islamic Berhad (AmBank Islamic) is the Islamic banking arm of AmBank Group. It is a Member of the Association of Islamic Banking Institutions Malaysia. AmInvestment Bank Berhad (AmInvestment Bank) is a leading Malaysian investment bank with more than 30 years of experience. It is a Member of the Malaysian Investment Banking Association. IR IR IR For more detail, please see pages 87 to 90 AmGeneral Insurance Berhad AmGeneral Insurance Berhad (AmGeneral Insurance) is one of the largest motor and general insurance companies in Malaysia, with over four million policy holders. It is a Member of the Persatuan Insurans Am Malaysia. IR For more detail, please see pages 98 to 101 For more detail, please see pages 94 to 97 For more detail, please see pages 82 to 86 AmMetLife Insurance Berhad AmMetLife Takaful Berhad AmMetLife Insurance Berhad (AmMetLife) is a strategic partnership between AMMB Holdings Berhad (AmBank Group) and MetLife International Holdings, Inc. (MetLife). It is a Member of the Life Insurance Association of Malaysia. AmMetLife Takaful Berhad (AmMetLife Takaful) is a strategic partnership between AmBank Group and MetLife. The strategic partnership combines the international expertise and financial strength of MetLife with the local strength and reach of AmBank Group. It is a Member of the Malaysian Takaful Association. IR IR For more detail, please see pages 102 to 103 For more detail, please see pages 104 to 105 Data shown as at 31 March 2020 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  12. 10 How We Are Structured as at 31 March 2020 AMMB HOLDINGS BERHAD (LISTED) 100% AmBank Islamic 100% 100% AmBank Group MBFC 100% AMFB* 100% AmInvestment Bank 100% 100% AIGB AMAB 100% AMIL 100% AMF* 70% ARH 51% AmGH 100% MISSB 100% AMNT* 100% ARM 100% AmGI 100% AMNA* 100% AIM* 50% -1 Share AmMetL 20% MTB 100% AAMNT 100% MVMI* 50% +1 Share AmMetT 100% APHSB 100% AAMNA 80% AmPE* 100% AmCSB 100% AMSNT 100% AMSH 100% TOPSB 100% AMSNA 1 Share 100% BDSB 100% AFM 81.51% MPSB 100% AIFM 100% AmPremier* 100% AMR* 100% AmMortgage 100% AmFIPL* 100% MNT 20% 20% 100% AMS* 100% -1 Share AmCap (B)* 100% KOMUDA* 26.73% AFR** 33.33% BLSB AMMB HOLDINGS BERHAD * Subsidiaries under liquidation ** Equity account companies with more than 20% shareholding are accounted for in this corporate structure 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  13. 11 How We Are Structured as at 31 March 2020 Legend Company Principal Activities AMMB AMMB Holdings Berhad Investment Holding AMFB AMFB Holdings Berhad Dormant (In Members’ Voluntary Winding-Up) AmBank Islamic AmBank Islamic Berhad Islamic Banking AmBank AmBank (M) Berhad Commercial Banking AMIL AmLabuan Holdings (L) Ltd Investment Holding AmCSB AmCard Services Berhad Outsourcing Servicer for Mortgage Related Services AmPremier AmPremier Capital Berhad Dormant (In Members’ Voluntary Winding-Up) AmMortgage AmMortgage One Berhad Securitisation of Mortgage Loans MTB MBf Trustees Berhad Trustee Services MNT MBf Nominees (Tempatan) Sdn Bhd Nominee Services MISSB MBf Information Services Sdn Bhd Property Investment APHSB AmProperty Holdings Sdn Bhd Property Investment BDSB Bougainvillaea Development Sdn Bhd Property Investment MPSB Malco Properties Sdn Bhd Dormant TOPSB Teras Oak Pembangunan Sendirian Berhad Dormant KOMUDA Komuda Credit & Leasing Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AFR AmFirst Real Estate Investment Trust Investment in Real Estate BLSB Bonuskad Loyalty Sdn Bhd Managing Customer Loyalty Schemes AmInvestment Bank Berhad Investment Banking AMF AmFutures Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AFM AmFunds Management Berhad Funds Management Including Management of Unit Trusts and Private Retirement Schemes AIFM AmIslamic Funds Management Sdn Bhd Islamic Fund Management Services and Distribution of Wholesale Funds AMNT AMMB Nominees (Tempatan) Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AMNA AMMB Nominees (Asing) Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AAMNT AM Nominees (Tempatan) Sdn Bhd Nominee Services AAMNA AM Nominees (Asing) Sdn Bhd Nominee Services AMSNT AMSEC Nominees (Tempatan) Sdn Bhd Nominee Services AMSNA AMSEC Nominees (Asing) Sdn Bhd Nominee Services AmFIPL AmFraser International Pte Ltd Dormant (In Members’ Voluntary Winding-Up) AMR AmResearch Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AmInvestment Group Berhad Investment Holding AmInvestment Bank AIGB AmCap (B) AmCapital (B) Sdn Bhd Dormant (In Court Winding-Up) ARH AmREIT Holdings Sdn Bhd Investment Holding ARM AmREIT Managers Sdn Bhd Management of Real Estate Investment Trusts AMSH AmSecurities Holding Sdn Bhd Investment Holding AIM AmInvestment Management Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AmPE AmPrivate Equity Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AMS AMSEC Holdings Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) MVMI Malaysian Ventures Management Incorporated Sdn Bhd Dormant (In Members’ Voluntary Winding-Up) AMAB Holdings Sdn Bhd Investment Holding AmGH AmGeneral Holdings Berhad Investment Holding AMGI AmGeneral Insurance Berhad General Insurance AmMetL AmMetLife Insurance Berhad Life Assurance AmMetT AmMetLife Takaful Berhad Family Takaful MBF Cards (M’sia) Sdn Bhd Dormant AMAB MBFC 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  14. 12 Why Invest in Us Commitment to Strong Leadership and Good Governance • AmBank Group’s Board and leadership team consist of high-calibre, well-experienced members from diverse backgrounds, capable of steering the Bank towards innovative and forward-looking decisions. • Our dedicated and accomplished management team consistently demonstrates the highest standards of corporate governance, which is entrenched within our policies and frameworks. As such, our leaders continue to receive recognition and accolades for their leadership performance. Independent Non-Executive Director 3 4 Non-Independent Non-Executive Director (including the Chairman) Digital & Innovation at the Heart of Our Business 1 Senior Independent Non-Executive Director • The Group remains focused on leveraging digital and innovative solutions to pivot the Group towards becoming a more customer-centric, accessible and competitive bank. • Our investments in digital transformation continue to push the boundaries of customer expectations, with the number of customers reached through digital platforms growing each year. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  15. 13 Solid Growth Underpinned by a Robust Strategy AmOnline Users 224 % Since 2017 • Our Top 4 strategy has laid a strong foundation for the Group, placing us in the Top 3 market position in terms of growth across key areas of the Bank. • As we come to the end of our 4-year strategic plan, we have recalibrated our strategy focusing on 8 key areas, to drive long-term success and set us on the path towards attaining an ROE of 10%. AmOnline Average Transaction Value Target ROE ≥10% RM1.9 Billion/Month AmOnline Transactions 77 Million for the Month of March 2020 Strong Capital, Funding and Liquidity Position Service requests deflected from call centre to AMY™ Chatbot 52% • The Group maintained ample liquidity, with the Group’s liquidity coverage ratio (LCR) at 158.2% and net stable funding ratios (NSFR) of all banking subsidiaries above 100%. • Common Equity Tier 1 (CET1) ratio has improved to 12.4% (FY2019: 11.9%). CET1 12.4% 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  16. 14 “As the banking sector continues to navigate regulatory obligations, technological disruptions and socio-economic trends, we are now faced with the adverse impacts of the unprecedented COVID-19 pandemic. Despite the increasingly challenging landscape, AmBank Group is well prepared to do what is needed to take care of both our businesses and our stakeholders.” TAN SRI AZMAN HASHIM Non-Independent Non-Executive Chairman AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  17. 15 Message f r o m t h e Chairman Bringing Solutions That Help Strengthen Stakeholder Relationships . 05Leadership 06 Sustainability Report Dear Stakeholders, These are unprecedented times. As the banking sector continues to navigate regulatory obligations, technological disruptions and socio-economic trends, we are now faced with the adverse impacts of the unprecedented COVID-19 pandemic. Despite the increasingly challenging landscape, AmBank Group is well prepared to do what is needed to take care of both our businesses and our stakeholders. In recent years, we have been building our resilience to emerging economic, environmental and social risks. Led by a strong leadership team, we continue to make progress on our sustainability agenda to future-proof our business. We implement measures and financial solutions that enable us to remain competitive in an increasingly digital environment, while also contributing to inclusive socio-economic development. Therefore, we are confident in our ability to overcome the uncertainties brought by the global health crisis and continue our growth trajectory as a sustainable bank. 07 Additional Information INTEGRATED REPORT 2020
  18. 16 Message from the Chairman THE YEAR UNDER REVIEW The financial year (FY2020) was tumultuous. Global growth for 2019 slowed to 2.9% (2018: 3.6%), with global trade and investments dampened by ongoing trade tensions and other geopolitical uncertainties that weighed on investors’ confidence. Malaysia, being an open economy, was affected by muted demand for exports as well as reduced cross-border capital flows. Nonetheless, Malaysia’s macroeconomic fundamentals remained resilient due to private sector and consumer spending; ongoing infrastructure investments; a more business-friendly regulatory environment; low and predictable inflation; an accommodative monetary policy with interest rates that support sustainable economic activity and a flexible exchange rate policy that helped buffer against external shocks. With that, the banking system recorded a loans growth of 3.9% in 2019. By Q42019, we started seeing positive signs of global market recovery and lower volatility in financial markets, while the Malaysian economy expanded by 4.6% with a decline in headline inflation. However, the shutdown of borders from the rise of COVID-19 in Q12020 impacted global demand and disrupted supply chains, resulting in a global economic contraction. The domestic financial market performance went on a decline. As income potential shrank due to the closure of manufacturing units and downscaling operations, the inability of borrowers to keep up with repayment schedules became more evident. AmBank Group addressed the immediate challenges presented by the COVID-19 crisis by protecting our employees through remote working measures (Work-from-Home). We also provided much-needed financial assistance to customers, which include reassessing customers’ debt classification and repayment structures, in addition to relief initiatives that cushion their financial burdens. Moreover, Bank Negara Malaysia (BNM) introduced measures such as the automatic loan moratorium for businesses and individuals with an aim to ease cash flow strains that could arise during this crisis. BNM also reduced the Overnight Policy Rate (OPR) and Statutory Reserve Requirement to 2% respectively, in a move to support both growth and liquidity. These measures are among the key stabilisers for the economy, as the stress mounted with the extension of the Movement Control Order (MCO) amid ongoing global supply-and-demand shocks. AMMB HOLDINGS BERHAD Bank Negara Malaysia (BNM) introduced measures such as the automatic loan moratorium for businesses and individuals with the aim to ease cash flow strains that could arise during this crisis. BNM also reduced the Overnight Policy Rate (OPR) and Statutory Reserve Requirement to 2% respectively, in a move to support both growth and liquidity. TRANSFORMATION AT THE FOREFRONT In the last four years, we have seen significant improvements across many key areas within the Bank. The Group and the leadership team has worked extremely hard to deliver the four-year strategic plans that were put in place, resulting in the solid foundation across key business parameters and corporate governance that we see today. Despite strong economic and geopolitical headwinds intensified by the outbreak, AmBank Group continues to deliver a solid performance, largely due to efforts in driving the Group’s Top 4 Strategy (FY2016-FY2020) that focused on our growth segments, key products, and sustaining our position in current engines. In FY2020, compared to other industry players, we consistently ranked Top 3 in terms of growth across most of our key performance metrics. Moreover, we ranked first for Net Interest Income (NII) growth, Cost-to-Income (CTI) ratio improvement, and Profit Before Provision (PBP) growth in Malaysia. 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights Net Interest Income RM2,773.9 Million Cost-to-Income Ratio 49.9% Profit Before Provision RM2,119.0 Million 04 Management Discussion and Analysis
  19. 17 Message from the Chairman STRONG CORPORATE GOVERNANCE More than ever , good leadership is key to withstanding the major challenges of the banking landscape and delivering superior performance. Therefore, the Board remains committed to maintaining the highest standards of good governance. In FY2020, we continued to strengthen the Group’s corporate governance with a common set of expected behaviours developed over time. Our corporate values and effective governance systems have created a strong ethical and governance culture across the Group. The principles governing our ethical standards are entrenched within our internal policies, such as the Code of Conduct, Code of Ethics and the Whistleblower Protection Policy. Diversity within the leadership team is essential for innovation and effective decision-making. Currently, 25% of AmBank Group’s board members are women, as we strive to achieve the 30% national target. We are also committed to establishing a more wellbalanced leadership team, with a range of competencies capable of addressing emerging risks in the conduct of our businesses. With the Group’s ongoing transformation into a digitally-mature bank, we are pleased to welcome Aaron Loo as the Managing Director of Retail Banking. He has worked in the financial sector for almost 20 years, leading the digital transformation of major banks, as well as growing the Priority Banking and Retail SME businesses. With his invaluable experience, we look forward to gaining his insights into the digital growth of our Retail Banking segment. 05Leadership 06 Sustainability Report Our leadership team's efforts in maintaining the highest standards of transparency, responsibility and good governance were recognised by several awards and accolades. Alpha Southeast Asia – 9th Annual Best Corporate-Institutional Investor Awards • Best Senior Management Investor Relations Support • Best Annual Report • Best Strategic Corporate Social Responsibility As the adverse impacts of COVID-19 continue to spread across the business community, the Group’s leadership team remains proactive and agile in our response. We are considering the well-being of all stakeholders and regularly communicating on key developments and progress. For instance, we launched a dedicated COVID-19 microsite in our internal portal, which contains directives and advisory to employees concerning the crisis. Likewise, the management team formulated an integrated and succinct response plan that caters to the immediate needs of our staff and customers. This includes creating awareness internally and externally on the potential impact of COVID-19, the emergence of a new norm, and ways to quickly pivot the business model according to these rapid changes (e.g. increase in consumer spending online). We also worked with key partners from other industries to effectively enable businesses’ transition online, enabling them to sustain alternative income streams during this period. Through an AmBank-Maxis collaboration, we are able to deploy and assist SMEs in migrating to e-commerce, providing an alternative option to help sustain their businesses. Our assistance extends to COVID-19 frontliners and the general public, in which we contribute to funds and programmes that aid communities and individuals affected by the pandemic. 07 Additional Information INTEGRATED REPORT 2020
  20. 18 Message from the Chairman SUSTAINABLE BANKING As a responsible bank , we are committed to balancing our profits with social and environmental well-being. The future growth of the company relies on our ability to mitigate Environmental, Social and Governance (ESG) risks. We cannot perform our duties as a financial institution if the prosperity of the people and the health of the planet is at risk. This understanding is what drives the Group’s sustainability agenda. Therefore, we take a holistic approach to business decisions, allowing us to promote a more inclusive socio-economic growth that caters to current and future generations. We developed the Group’s Sustainability Framework to outline the parameters of our journey towards becoming a sustainable bank. Through the implementation of this Framework, we integrate ESG and Value-Based Intermediation (VBI) considerations into our decision-making processes without compromising our financial objectives. The Framework aligns with the Group’s business priorities as well as key principles that contribute to positive social and environmental impact. The Sustainability Framework is governed by an enhanced sustainability governance structure consisting of new roles that are critical to effectively execute our sustainability strategies. In support of our long-term aspiration to become a leading responsible financier in Malaysia, we launched AmBank Group’s 10-Year Responsible Financing Strategic Plan in FY2020. The plan includes the establishment and implementation of the ESG Risk Framework, as well as the integration of ESG risks into the credit assessment. Through our sustainability efforts, our rating from RAM Sustainability Sdn Bhd’s (RAMSus, formerly known as RAM Consultancy Sdn Bhd) improved from Silver to Gold in 2019. RAMSus Sustainability Rating 2019 SILVER ...we invested over RM24.7 million in employee training and development programmes designed to future-proof the workforce. It is also our responsibility as an employer to protect the health and well-being of our people. We implement measures and campaigns that safeguard the mental and physical health of employees, which is essential to improving their engagement, productivity and overall performance. Amid the health risk of COVID-19, we swiftly introduced the necessary procedures to minimise their exposure to contamination. This includes controlling movement into AmBank Group premises; implementing travel directives and advisory; frequent disinfecting and cleaning; quarantine protocols; and higher digital communications. As we prepare for the challenging times ahead, we will not falter to take care of our people and reinforce our position as being the “Employer of Choice”. SHAREHOLDER VALUE The Board remains committed to enhancing shareholder value according to regulatory buffer and working capital requirements. We strive to ensure that our proposed dividend payout remains appropriate for the Group to continuously fulfil both our financial and prudential objectives. GOLD Dividend Payout Ratio 30% PEOPLE-ORIENTED BANK We are a people-oriented bank – our work revolves around creating value for people and is simultaneously driven by people. Our business objectives rely on the capability and well-being of our workforce. In line with our transformation into the new era of banking, we are providing opportunities for employees to leverage their various skill-sets with the power of data and advanced analytics. Our efforts in retraining, reskilling and redeploying resources are a continuous process that aims to improve the optimisation, competency and timing of our operations whilst concurrently gearing our workforce for the future. For this financial year, we are pleased to declare a final dividend of 7.3 sen per share, bringing the total dividend to 13.3 sen. This year’s dividend payout ratio of 30% is a reflection of a more cautious outlook on the near-term economic conditions. During the year, we invested over RM24.7 million in employee training and development programmes designed to future-proof the workforce. Employees were provided with an average of 66 training hours each to sharpen their leadership, technical and soft skills, thus maximising their potential to thrive in the long-term. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  21. 19 Message from the Chairman With the completion of AmBank Group ’s Top 4 Strategy, we begin the next stage of our transformation journey. We will focus on building new areas of growth surrounding the Group’s renewed vision of Growing Trust, Connecting People. LOOKING AHEAD CLOSING REMARKS In the upcoming year, we anticipate the economic effects of the COVID-19 pandemic onto the business climate. While Malaysian banks’ capital and liquidity are substantial enough to absorb losses in the current economic conditions, we are entering unchartered territory. It is difficult to fully predict where a shock is going to come from as there is limited visibility on how the shocks will transmit and evolve. We expect that the pandemic, compounded by domestic challenges, will contribute to a decline in overall loans growth. There are also several key areas that demand the banking sector’s attention beyond business continuity, namely credit management, supporting our customers, digitalising service offering, and cost management. I take this opportunity to recognise the extensive work undertaken throughout the four years of AmBank Group’s Top 4 Strategy. Through the hard work and dedication of our people, we went above and beyond in achieving our goals. I am proud to report that we are well-equipped and ready to enter into the next phase of excellence, navigating the rapidly changing banking landscape. After COVID-19, there will likely be a ‘new normal’ affecting the entire banking ecosystem. The knock-on effects from such a global pandemic crisis will exacerbate changes in customer expectations, investor decisions and regulatory outcomes. Throughout the world, businesses are adapting and learning to communicate, collaborate, and coordinate activities and interactions on virtual platforms, as well as developing new business models in which such modalities of work can be supported. To effectively mitigate the impacts of the current crisis, AmBank Group remains proactive in our response to emerging challenges. We will take a vigilant approach to credit monitoring and credit assessments; observe the facility utilisation rates of customers and how operating account balances are developing; as well as reaching out to customers to support their recovery plans. With the completion of AmBank Group’s Top 4 Strategy, we begin the next stage of our transformation journey. We will focus on building new areas of growth surrounding the Group’s renewed vision of Growing Trust, Connecting People. This will be our key theme moving forward, which reflects our strong belief in the legacy and solid relationships we have built over decades – servicing our customers for generations; cementing our trusted partnerships; and witnessing their growth from the beginning to where they are today. With the progress made, we remain confident in AmBank Group’s ability to successfully move forward. We will continue to establish ourselves as an innovative bank that connects people. As the banking industry evolves, our key differentiator will be to actively respond to customers’ needs while providing convenient access to our people and services – anytime, anywhere. On behalf of the Board, I would like to acknowledge the efforts that have been undertaken across the Group by my fellow Board Members, Senior Management and by our operating teams, who have been working tirelessly throughout this period to preserve the health and safety of our employees, the satisfaction of our stakeholders, and the growth of our business. Also, I am very grateful for the continued trust and support of our shareholders. Finally, to all stakeholders, we will continue to improve our performance in creating value for all of you. With the challenging times ahead, we will work to emerge from a post-pandemic world together, stronger than before. TAN SRI AZMAN HASHIM Non-Independent Non-Executive Chairman The Group will stay abreast of the evolving regulatory and policy landscape in Malaysia, as well as other changes in our ecosystem. As we roll out the Group’s next four-year strategic plan, we will deploy a mix of defensive, offensive and tactical strategies to remain relevant to our stakeholders and emerge as a more competitive and responsible business that remains committed to both value creation and value preservation. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  22. 20 “Today, we are well-positioned among the top three industry players in terms of our targeted growth areas. We are differentiated by our efforts in growing trust and connecting people in the ecosystems where we operate.” Dato’ Sulaiman Mohd Tahir Group Chief Executive Officer AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  23. 21 Group Chief Executive Officer ’s Message Dear Stakeholders, FY2020 signified an important juncture for AmBank Group, as we marked the completion of our Top 4 transformation strategy. When we commenced our transformation journey, we had a clear goal in mind – to be Top 4 in key areas across several key parameters. We are pleased to be part of the Top 3 in most growth areas, outgrowing some of our fiercest competitors. It has been an intense four years for all of us, but I must say I am glad to have faced it with a dedicated management team by my side, assembled at the beginning of the transformation journey. Indeed, we could not have reached this momentous milestone without the collective effort of each and every AmBanker. In the last four years, we progressively established a strong foundation for the Group, drumming in the key pillars to become digitally sound and competitive. We took a conscious effort to invest in strategic areas to create a holistic and seamless customer-experience-centric bank. As we move into the new fiscal year, we will pivot towards a new strategic focus underpinned by the renewed vision of Growing Trust, Connecting People. We are facing significant changes in customer behaviour and, in order to adapt, we must spearhead changes that are focused on weaving banking as a day-in-the-life concept. We will do this by integrating customer needs at every touchpoint and further simplifying banking access. Our move to strategically forge partnerships across various industries has been key in building the right ecosystem for our customers, allowing us to offer end-to-end solutions that are capable of seamlessly meeting customer needs. By continuously future-proofing the business in tandem with the changing dynamics of the banking sector, we are well-equipped to manage and mitigate risks. An important case in point has been the COVID-19 pandemic. The importance of digital initiatives is prevalent now more than ever, highlighted by the need for social distancing amidst the outbreak. We have been able to transform the business and effectively navigate the evolving social and economic environment, ensuring that we emerge stronger from the crisis despite intense competition. 05Leadership 06 Sustainability Report 07 Additional Information We have become more resilient to various challenges and were ultimately able to thrive. Today, we are well-positioned and are among the top three industry players in our targeted growth areas. We differentiate ourselves through our efforts in growing trust and connecting people within the ecosystems where we operate. To do so, we leverage emerging technologies to innovate and produce solutions that help bridge and strengthen relationships between our multiple stakeholders. In our journey to build a credible and profitable business, AmBank Group continues to champion community development and address various sustainability issues, as we grow from strength to strength. In everything that we do as a bank and as a responsible community leader, we not only recognise the role of our people, but we also continue to seek ways to add value to our community. With the rise of economic uncertainties due to the global health crisis, we recognise the need to stay collectively strong, helping our customers and their businesses weather through the harsh conditions. We remain committed to supporting the needs of all customers in times like these. We recognise the current anxiety as we stabilise and pivot towards the new norm. Nevertheless, we would like to assure our stakeholders, customers and customers that we are here to help you by growing and winning together. INTEGRATED REPORT 2020
  24. 22 Group Chief Executive Officer ’s Message RESPONDING TO C VID-19 THE OPERATING MARKET The Group’s unwavering commitment to our fellow Malaysians was reinforced amidst these trying times. We continue to implement measures that protect the physical and financial health of our employees and customers. AmBank Group is offering automatic deferment of loans and financing repayments for all eligible individuals and SMEs for six months, effective 1 April 2020. This move is expected to ease the financial burden of our customers. We are also open to discussing the temporary deferment or restructuring of instalment repayments for other affected customers whose loans and financing do not fall under automatic deferment. In line with our strong focus on supporting the SME sector, we have committed to offering a Special Relief Facility comprising collateral-free financing of up to RM1 million to aid SMEs under financial stress. A simplified process has been established to facilitate those applying for this facility, with approval provided within 24 hours and disbursement within five days of approval. In addition to this, AmMetLife and AmMetLife Takaful introduced supportive financial relief to assist policy owners. Both insurance companies will cover hospital admission due to the virus at designated government hospitals as per the Ministry of Health’s directive. On top of that, AmBank Group is lending a hand to the general public through funding and sponsorships. We have pledged our support and contribution to MERCY Malaysia’s COVID-19 Strategic Preparedness and Response Plan, which aims to ease the severely strained healthcare system and reach communities in need through its COVID-19 Pandemic Fund. As a small token of appreciation for their services and dedication, we also distributed over 200 food packs to healthcare frontliners. Safeguarding our people will always be a foremost priority for AmBank. Amidst the pandemic, AmBankers have been encouraged to work from home, whenever possible, with increased utilisation of digital communications. We are also frequently disinfecting and cleaning our premises while restricting movement between AmBank locations. Through Kelab AmBank Group (KAG), we also distributed hand sanitisers and face masks to employees working at all corporate offices, to minimise their exposure to the virus. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group During the financial year, trade disputes between global leaders contributed to lower economic growth worldwide, with key indicators of economic activity declining to levels comparable to the global financial crisis of 2008. Weaker exports and supply chains impacted regional growth within ASEAN, including the Malaysian market. All these notwithstanding, the nation’s economy rose by 4.6% as a result of stable labour market conditions and the growth in private consumption. In May 2019, Bank Negara Malaysia (BNM) reduced the Overnight Policy Rate (OPR) to 3% to aid Malaysians in mitigating global economic uncertainties. Nevertheless, the banking sector remained profitable as a result of the practical risks taken by local banks to cushion the cuts in the policy rate. Capital buffers for banks also remained elevated, compounded by enhanced capital adequacy, liquidity and risk management standards. With these measures in place, the national financial system improved its resilience in 2019. The banking industry started 2020 with a strong total capital ratio of 18.4%, excess capital of RM121 billion, a common equity tier-1 capital ratio of 14.4%, and gross impaired loan ratio of 1.6% in February. Liquidity continued to be ample with a coverage ratio of 148%, while loan loss coverage ratio stood at 125% as of end-February. However, during the first quarter of 2020, the world struggled with the unprecedented COVID-19 pandemic that resulted in the disruption of businesses and supply chain, causing a significant contraction of the global and local economy. In response, the Government announced stimulus packages aimed at reducing the economic impact of COVID-19, by providing financial support to households and businesses. Furthermore, the strong buffers of the Malaysian financial system are expected to absorb most of the shock, with the banking sector being able to mitigate the impact of credit quality deterioration. Importantly, the banking sector is well-equipped to provide support in continued lending which is imperative for the economy to bounce back. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  25. 23 Group Chief Executive Officer ’s Message KEY PERFORMANCE HIGHLIGHTS We registered a 7.8% increase in total income from RM3,922 million in FY2019 to RM4,227 million in FY2020, propelling AmBank Group as one of the Top 3 Banks in Malaysia in terms of revenue growth. 05Leadership 06 Sustainability Report 07 Additional Information Despite economic and geopolitical uncertainties, the Group recorded solid growth for the financial year. We registered a 7.8% increase in revenue from RM3,922 million in FY2019 to RM4,227 million in FY2020, propelling AmBank Group as one of the Top 3 Banks in Malaysia in terms of revenue growth. The Top 3 ranking also extends to the growth of both Total Loans and Total Deposits, which registered a 5.3% growth (RM107.2 billion) and 5.7% growth (RM113.0 billion) respectively. Our Loan-to-Deposit ratio stood at 94.9%. The Group’s Net Interest Margin (NIM) rose by 5 bps to 1.94%, the second-highest growth in the industry and a significant advantage compared to industry peers who are largely recording negative growth. As such, AmBank Group is placed within the Top 3 Banks for NIM improvement, as well as for our underlying Return on Equity (ROE) growth. Net Profit After Tax and Minority Interests (PATMI) declined by 10.9% to RM1,340.7 million. Underlying PATMI was up 15.4% (adjusted for the gain on retail debt sales of RM285 million in FY2019 and the macro provision of RM167.3 million in FY2020). We saw an 18.3% growth in Profit Before Provision (PBP) to RM2,119 million. With this double-digit growth, we are placed in the first position within the industry in terms of PBP growth. In addition, we achieved the number one ranking in our Net Interest Income (NII) growth which grew 7.5% to RM2,774 million in FY2020. We also ranked first for our improvement in Cost-to-Income ratio, which improved from 54.3% in FY2019 to 49.9% this financial year primarily due to the BET300 cost-saving initiative, in which we saved RM380 million in costs over three years against a RM300 million target. AmBank Group also took the top spot in Current Account Savings Account (CASA) growth, recording a strong growth of 15.9% from the previous year. The Group has been building its CASA base steadily through AmSignature Priority Banking, customised cash management solutions, JomPAY and enhanced digital capabilities for business customers such as e-AmBiz and AmAccess. 49.9% 15.9% Cost-to-Income Ratio CASA Growth INTEGRATED REPORT 2020
  26. 24 Group Chief Executive Officer ’s Message THE TOP 4 STRATEGY As part of AmBank Group’s Top 4 Strategy which spanned four years from 2016 to 2020, we strategised 33 initiatives across six pillars namely Retail Banking, Business Banking, Wholesale Banking, Islamic Banking, Digital & Analytics, and Enablers. Through this strategy, we have focused our priorities on streamlining our internal operations and processes, realigning our diverse business segments, as well as strengthening our digital foundation. We are pleased to report tangible results which positively contributed towards achieving our Top 4 aspirations. TO BE TOP 4 TO BE TOP 4 in each of our in each of our 4 FOCUS PRODUCTS 4 GROWTH SEGMENTS • Mass Affluent • Affluent • SME • Mid-Corp • Cards • Transaction Banking • Markets • Wealth Management A key contributor to our solid financial performance is the growth in our target segments. During the year under review, we recorded significant growth in our Retail Banking’s Mass Affluent customer base. Our customer base grew by 24.4%, which translates to more than 143,000 customers. We now also have a base of more than 85,900 Priority Banking customers. In FY2020, we established dedicated taskforces to drive the performance of our target products. Rigorous execution and disciplined tracking have resulted in tremendous uplifts. Total Group deposit grew 5.7% to RM113.0 billion, higher than the industry average of 2.1%. CASA rose in tandem by a substantial 15.9% YoY to RM28.8 billion against the industry average of 10.3%, with CASA mix at 25.5% compared with 23.3% in the previous financial year. For the SME segment, we currently have over 101,000 customers, including more than 7,400 customers under the Business Banking division in FY2020. The growth is driven by effective AmBank BizCLUB community engagement initiatives, such as the AmBank BizRACE that provides support and guidance to SMEs in achieving their entrepreneurial ambitions. This reinforces our commitment to grow together with SMEs, from cradle to initial public offering (IPO) and is aligned with the Government’s strategic initiative to encourage entrepreneurship in Malaysia. We also achieved strong growth in the Mid-Corp segment, with a 9.5% increase in loans (RM16.0 billion) and RM214.2 million in Profit After Tax and Minority Interests (PATMI), making up 27.7% of Wholesale Banking’s overall PATMI of RM772.0 million. This was largely the result of our assertive efforts in increasing the customer base, resulting in a 3.2% growth YoY. Additionally, Wealth Management fee-based income (FBI) substantially expanded by 32.7% to RM92.5 million, primarily through retail banking, private banking, funds, and stockbroking push. Consequently, cards revenue recorded a surge of 26% to RM272 million in FY2020. Total Group Deposit RM113.0 Billion 5.7% Growth Higher than Industry Average of 2.1% Cards Revenue Retail Banking Mass Affluent Customers 143,000 RM272 Million 26% Growth 24.4% Growth CASA SME Segment 15.9% Growth RM28.8 Billion 101,000 Customers Mid-Corp Segment Loan RM16.0 Billion 9.5% Growth AMMB HOLDINGS BERHAD 01 Overview of AmBank Group Wealth Management Fee-Based Income FBI RM92.5 Million Expanded by 32.7% 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  27. 25 Group Chief Executive Officer ’s Message TO SUSTAIN TOP 4 in each of our CURRENT ENGINES To be Among the TOP EMPLOYERS in Malaysia • Asset Management • Corporate Finance • Debt Capital Markets While we make significant strides in terms of our Top 4 aspirations, we also aim to sustain the Group’s Top 4 position in our current engines. Asset Management achieved a record asset under management (AUM) of RM42 billion in FY2020, marking a 6.9% increase from the previous financial year. Subsequently, we were named Malaysia’s Best Overall Asset & Fund Manager at the Alpha Southeast Asia Fund Management Awards 2019. Corporate Finance recorded a strong 65.6% growth in profit before provision (PBP), driven by an increase in revenue of 28.3%. As a result, we maintained our number four ranking YoY, with a 10.6% market share in mergers and acquisitions (M&A). We are pleased to note that the Group’s Corporate Finance team was recognised as Malaysia’s Best Corporate & Institutional Adviser at the Asset Triple A Awards 2019. Debt Capital Market posted a 17.7% growth in revenue due to higher Fee & Trading income. Moreover, we gained 13.3% and 17.9% market share in Bonds and Islamic Sukuk respectively. This improved our YoY position for Bloomberg MYR League Table, in which we are currently ranked number two for both categories. Throughout the financial year, we received a total of 16 awards recognising our work in the segment. Asset Management Asset Under Management (AUM) Corporate Finance Profit Before Provision (PBP) Revenue Debt Capital Market Revenue Market Share in Bonds Market Share in Islamic Sukuk 05Leadership 06 Sustainability Report RM42 Billion Recognising the pivotal role our employees play in our growth, we are committed to continuously invest in our talent pool through training & development programmes, employee engagement sessions as well as welfare and well-being initiatives. In FY2020, our efforts to create a conducive and engaging workplace was recognised via numerous awards in talent management. Key awards include HR Excellence Awards 2019; Malaysia Best Employer Brand Awards; Malaysia 100 Leading Graduate Brands Award (ranked 60); and Malaysia Globally Recognised Employer Brand Awards. These achievements demonstrate our commitment to people-building and becoming the ‘Employer of Choice’. HR Excellence Awards 2019 Malaysia Best Employer Brand Awards Malaysia 100 Leading Graduate Brands Award 65.6% Growth 28.3% Growth 17.7% Growth 13.3% 17.9% 07 Additional Information INTEGRATED REPORT 2020
  28. 26 Group Chief Executive Officer ’s Message UNLEASHING THE DIGITAL POTENTIAL EMPOWERING THE SME ECOSYSTEM The dynamics of banking is changing as digital boundaries continue to blur. The consumer market, which is now dominated by Millennials and Gen-Y, are expecting smarter, faster and more accessible financial services. This bodes well for AmBank Group given our focus on delivering products and services that cater to the evolving needs of our customers, thus allowing us to remain competitive amidst this fast-changing era of globalisation. Small and medium-sized enterprises (SMEs) are not only an important customer segment to AmBank Group, but also embody the backbone of the Malaysian economy. SMEs represent over 98% of business establishments in Malaysia and contribute to more than 38% of the national GDP. With this in mind, AmBank Group is committed to supporting the SME ecosystem, leveraging on the opportunity to tap into the segment’s market potential while contributing to economic development. During the financial year, we recorded a significant step forward in digital solutions to better serve our customers. We introduced the Wealth feature on AmOnline, our flagship online and mobile banking platform. The new feature is designed to make investments simpler and more accessible to budding investors. Furthermore, we launched AmAccess Biz and AmAccess Corporate to provide an easier and faster way for non-retail and corporate segments to manage their day-to-day business banking. The platform includes innovative features such as digital tokens, DuitNow payments and foreign remittance. To this end, we are also working towards incorporating new features in AmAccess Biz, such as FPX and Payroll functions, which will be introduced to customers in phases. Furthermore, we are continuously enhancing our AMY™ Chatbot, a virtual financial assistant that is the first of its kind in Malaysia, designated to provide critical customer support on our AmOnline platform. Since its launch in 2018, we have seen significant growth in the number of customers who utilise AMY™ and AmOnline for services such as credit card application, card activation, pin reset, and credit limit increase. Almost all card application status checking is now done through AMY™. As a result of its convenience and effectiveness, AmBank Group was bestowed the Best Automated Chatbot Initiative, Application or Programme Award from the Asian Banker. Apart from this, our digital efforts were also recognised with several other awards, including the Most Innovative Mobile Banking App and Best Mobile Banking App from The Global Business Outlook Awards 2019, and the Best Retail Mobile Banking Experience and Best Wealth Management Experience from The Asset Triple A Awards 2020. The Asset Triple A Awards 2020 • Best Retail Mobile Banking Experience • Best Wealth Management Experience Through AmBank Group’s BizCLUB events, we enabled over 5,000 SMEs and private business owners from across the country to hear directly from some of the top trainers and business leaders on topics pertinent to their business growth. This includes leadership, understanding their business health, HR readiness, and business culture. Through these events, AmBizCLUB aims to support the scaling and growth of SMEs into competitive and lucrative businesses. In May 2019, BizCLUB launched the BizCONFERENCE: SME Beyond Financing Series, covering four key business areas – the Internet of Things, the Halal industry, Digital Marketing & Branding, and Building a Green Business. The series was organised in an effort to provide the 900 participating SMEs with an understanding of these crucial topics. On top of that, the conferences also served as a networking platform for the SME community, bringing together business owners, subject matter experts and pioneers from a wide range of industries. Following on the heels of success of our AmBank BizRACE last year, we continued organising the BizRACE this year. Established as a platform where SMEs can connect and showcase their business ideas, we sponsored the top five finalists for a learning field trip to China, providing them with an opportunity to network and exchange insights with major industry players, including Alibaba Group, Food Vending China, Zendai Group and many more. The Global Business Outlook Awards 2019 • Most Innovative Mobile Banking App • Best Mobile Banking App The Asian Banker Malaysia Awards 2019 • Best Automated Chatbot Initiative, Application or Programme AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  29. 27 Group Chief Executive Officer ’s Message Furthermore, as part of the Group’s vision to grow, nurture and help businesses graduate from cradle to Initial Public Offering (IPO), the “Road to IPO” initiative was launched in November 2019 to educate and guide our SME customers in their journey towards becoming a publicly listed company. The inaugural event saw participation from high-potential customers who were guided on the benefits of embarking on an IPO; the potential risks and upsides to consider; and the requirements needed to take their company public. The Group also has various channels in place to ease the financial burden of business owners who are facing difficulties during these unprecedented times. We strive to provide the provision of additional value for their operating account, payroll and transactional services as well as quick access to working capital financing, amongst others. In FY2020, AmBank Group contributed RM20.6 billion to the SME sector through loans and financing, with 19% of our total loan portfolio consisting of these businesses. As a testament to our extensive initiatives in support of SMEs, we have been established as one of the leading SME banks in Malaysia. Throughout the year, we were awarded several accolades, including the SME Bank of the Year in Malaysia from Asian Banking & Finance Awards 2019; Best SME Bank in Malaysia from Alpha Southeast Asia Best Financial Institution Awards 2019; Best SME Bank Malaysia 2019 from Global Banking & Finance Awards (2nd consecutive year); and Best Islamic Finance SME Bank Malaysia from Alpha Southeast. AmBank Group Contributed RM20.6 Billion to the SME Sector 05Leadership 06 Sustainability Report 07 Additional Information Alpha Southeast Asia Best Financial Institution Awards 2019 • Best Financial Institution Awards 2019 Asian Banking & Finance Awards 2019 • SME Bank of the Year in Malaysia Alpha Southeast • Best Islamic Finance SME Bank Malaysia Global Banking & Finance Awards • Best SME Bank Malaysia 2019 EXPANDING STRATEGIC PARTNERSHIPS In this day of globalisation, AmBank Group recognises the need to work with partners from different fields and industries, delivering propositions with the best interests of our customers in mind to win in this changing environment. As such, we focus on building cross-industry partnerships with both banking and nonbanking players. During the financial year, we partnered with Maxis to expand our support for SMEs in Malaysia; leveraging and harnessing the power of technology and datadriven insights to provide personalised offers to SMEs. As a result, we were able to successfully launch the “SME-in-a-Box” bundled proposition which aims to help businesses migrate onto e-commerce platforms to provide SMEs with muchneeded telco and financing facilities, especially in these challenging times. INTEGRATED REPORT 2020
  30. 28 Group Chief Executive Officer ’s Message “AmBank Group is the first bank to provide business-to-business (B2B) Application Programming Interface (API) services via realtime retail payments (RPP) DuitNow.” FY2020 was an exciting year for us as we achieved multiple ‘Firsts’ in terms of partnerships. In February 2020, AmBank Group entered into a collaboration with Rakuten Trade (Rakuten), a joint venture between Malaysia’s leading independent investment bank, Kenanga Investment Bank Berhad and Japan’s Rakuten Securities, Inc. which is part of the Rakuten Group. This makes AmBank Group the first bank to provide business-to-business (B2B) Application Programming Interface (API) services via real-time retail payments (RPP) DuitNow. Through this bespoke solution, we facilitated Rakuten’s non-face-to-face customer onboarding verification by leveraging PayNet’s DuitNow platform via this API, succeeding their traditional customer onboarding method. We also provide First-Party Account verification to Rakuten Trade, which is part of the Securities Commission (SC)’s onboarding requirements. We are also working with our partners Shell and Parkson, as shareholders of BonusLink, to transform BonusLink loyalty and rewards to a more strategic play by expanding into currency and wallet payment solution. AmBank Group also partnered with LUNO, the first regulated cryptocurrency exchange in Malaysia. LUNO, which is based in London, facilitates cryptocurrency storage and transactions such as buying, selling and paying through their customers’ cryptocurrency wallet services. They also operate an exchange between traditional currencies and cryptocurrencies. As the primary banker appointed by LUNO to support the operations of its exchange, AmBank Group is the first conventional bank in Malaysia to offer such banking services. Through this partnership, we facilitate the screening of LUNO’s pre-approved customers during the onboarding process, while also providing Cash Management Solutions that facilitate transaction reconciliation, report on collections, and fund transfer payments received from LUNO customers. Currently, we are in the midst of onboarding LUNO onto a Financial Payment Exchange (FPX) channel, allowing first-party fund transfer into LUNO’s Trust Account before purchasing a cryptocurrency. Subsequently, we will also onboard LUNO onto DuitNow Payment API for a more efficient settlement (selling of cryptos for MYR) process with faster turnaround time. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  31. 29 Group Chief Executive Officer ’s Message AmBank Group is also the first local bank in Malaysia to partner with UnionPay for a credit card collaboration. Through this collaboration, we are able to leverage on UnionPay’s strong global presence while also gaining access to the organisation’s exclusive deals, ultimately offering new channels for the Group. This includes the U Collection, a global privilege programme that brings together hotels, shopping and specially-curated dining offers for its premium cardholders. Under the AmBank BizM.A.T.E. programme, we forged partnerships with businesses across various industries to build on the innovative tools that we offer our SME customers to grow their business and improve productivity. Throughout the year, we successfully established 19 strategic partnerships with key players, such as Maxis, Microsoft, DiGi, GDex, Boost and iPay88. We are confident that our efforts are in line with the aim of the programme to improve SME’s scalability in the most cost-efficient manner, delivering products and solutions that help digitise and manage their businesses from the ground up. During the year, AmBank Islamic also entered into a collaboration with Amanah Raya Berhad to offer legacy planning solutions. This enables our customers to seek will writing services at AmBank Group branches, including at AmBank Signature Priority Banking centres nationwide, thus providing an additional revenue stream to the Group. The new service aligns with AmBank Islamic’s strategy to offer a complete suite of wealth management products and services, including wealth distribution. RM850 Million of Financing Distributed to Affordable Housing Schemes 05Leadership 06 Sustainability Report 07 Additional Information ‘‘...established the AmBank Group Green Financing Plan to develop our capacity in providing financing to green projects, with RM26 million in green loans and financing under the Green Technology Financing Scheme.’’ BALANCING PEOPLE, PLANET AND PROFIT The banking industry is now in a new age of responsibility. Investors, regulators, employees, community and other stakeholders have increasing expectations pertaining to the integration of environmental, social and governance (ESG) considerations into a bank’s business decisions. AmBank Group has long been committed to positive environmental and social impact as we strive to continuously improve our sustainability journey. Through AmBank Islamic, we integrate the principles of Value-Based Intermediation (VBI) into our financing strategy of financial inclusion and responsible lending. This is aligned with Shariah principles of responsible behaviour towards the community and the environment. In FY2020, we continued to participate in inclusive and responsible financing programmes. This includes RM850 million of financing distributed to affordable housing schemes such as Perumahan Rakyat 1Malaysia – Skim Pembayaran Fleksibel (PR1MA SPEF); Skim Rumah Pertamaku (SRP); and BNM Affordable Houses Schemes 1 & 2. We also established the AmBank Group Green Financing Plan to develop our capacity in providing financing to green projects, with RM26 million in green loans and financing under the Green Technology Financing Scheme. INTEGRATED REPORT 2020
  32. 30 Group Chief Executive Officer ’s Message group chief executive officer’s message Reduced Carbon Footprint by 11% in FY2020 Invested RM1.8 Million in Community Outreach Programmes AMMB HOLDINGS BERHAD In addition to assessing the impact of our financing decisions, we also monitor the impact of our own operations. Guided by our Environmental Policy, we ensure that all facets of our operations consistently adhere to environmental laws and regulations. Beyond compliance, we also actively identify and implement green initiatives that minimise our potential environmental impact. During the reporting year, we rationalised our vehicle fleet from 37 to 30 vehicles, thus reducing fuel consumption by 17%. We also invested in hybrid cars, which are more fuel-efficient and generate fewer carbon emissions. For energy efficiency, we replaced conventional lights with an LED lighting system for 17 AmBank Group branches, with an aim to complete installation at the remaining branches by FY2021. As a result of our efforts, we successfully reduced the Group’s carbon footprint by 11% in FY2020 and had even received an upgrade in RAMSus Environment Rating from Bronze to Silver. The Group also contributes to the socio-economic empowerment of communities. We actively organise and participate in programmes that enable social mobility and inclusive development across all levels of society. In FY2020, we invested RM1.8 million in community outreach programmes. This includes the AmKasih E-Wallet CSR Programme for the Urban Hardcore Poor, in which, for one year, we upload RM100 of spending credit monthly to the MyKads of targeted households to facilitate their expenditure on essential food items. MOVING FORWARD The financial services industry is responding to an increasingly turbulent business environment. In the upcoming year, as Malaysia’s economy recovers from the COVID-19 pandemic, AmBank Group will remain active in taking care of our customers and stakeholders. We will continue embarking on recovery efforts to help contain any financial anxiety and protect the country’s strong financial system. We view the current turbulent times as an opportunity to create new value propositions for customers while simultaneously charting new growth for the Group. Therefore, whilst we have completed the Group’s transformation journey through implementation of the Top 4 Strategy, we are cognizant of the need to continue along this trajectory of transformational change, particularly in the face of unprecedented challenges. Our new strategy for the upcoming year is based on a holistic approach to market trends, regulatory changes, customer behaviour, and most importantly, the post-pandemic financial landscape. Our strategy for the upcoming year is premised on the following eight focus areas underpinned by the Group’s renewed vision of Growing Trust, Connecting People. 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  33. 31 Group Chief Executive Officer ’s Message Rethinking our strategies and priorities to chart the path towards attaining a Return on Equity (ROE) of ≥10% Sharpening our Segment Play by focusing on Retail, SME, and Islamic Banking and putting excellent customer service at the forefront of what we do Delivering holistic customer value propositions, leveraging on Collaborative Culture and Partnerships established internally and externally Pushing Capital-Light Revenue through the creation of differentiated products Ramping Up the next Wave of Digital Initiatives through AmBank Digital and capacity building Retaining, reskilling and upskilling talents to Future-Proof our Workforce Integrating Environmental, Social, and Governance considerations into our business decisions and direction as part of our pledge towards responsible banking ACKNOWLEDGEMENTS As we end FY2020 on a strong note, we are more determined than ever to commence on the next phase of our journey of growth. On behalf of the senior management team, I would like to take this opportunity to thank Tan Sri Azman Hashim, AmBank Group Chairman, and the Board of Directors who have been instrumental in providing support and advice to the management team, steering our continuous efforts, focus and dedication to driving the transformation journey and delivering the results that we see today. I would also like to express my deepest gratitude to each and every AmBanker. Helmed by a strong management team and handpicked to collectively spearhead this journey together, each AmBanker has, in one way or another, contributed to our joint success. We value your continued commitment and hard work as we move to greater heights as we face our next frontier. Last but not least, our deepest gratitude to all AmBank Group stakeholders – customers, shareholders, business partners and regulators – for their continuous trust and loyalty. We strive to create value for each one of you, despite the challenges ahead. Together, we will prevail, win and grow with all Malaysians – Growing Trust and Connecting People, as we weave banking into everyday life and business. DATO’ SULAIMAN MOHD TAHIR Group Chief Executive Officer Exploring Digital Bank as a new option 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  34. 32 Key Highlights Business Highlights TRACTION IN THE TOP 4 STRATEGY We are in the final year of our Top 4 Strategy and have achieved tangible results which positively contributed to our Top 4 aspirations NEW DIGITAL CAPABILITIES We launched AMY ™, a virtual financial assistant for AmOnline mobile banking, as well as formed strategic partnerships with industry players to diversify our ePayment offerings LEADERSHIP AND TALENT We invested in developing and nurturing future talents to ensure AmBankers succeed in their careers and are groomed as future leaders of the Bank HOLISTIC BRANCH MODEL We have a new branch model that encompasses digitally-enabled capabilities to deliver seamless products and services across all lines of business to our valued customers AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  35. 33 Financial Highlights TOTAL INCOME RM4 ,227.2 Million GROSS LOANS, ADVANCES AND FINANCING Million Billion CUSTOMER DEPOSITS RM113.0 Billion RETURN ON EQUITY 7.4% 06 Sustainability Report 07 Additional Information 49.9% PROFIT ATTRIBUTABLE TO SHAREHOLDERS RM1,340.7 05Leadership COST TO INCOME RATIO RM107.2 CET1 CAPITAL RATIO 12.4% DIVIDEND PAYOUT RATIO 30.0% INTEGRATED REPORT 2020
  36. 34 Our Value Creating Business Model KEY INPUT Growing Trust Connecting People VISION OUR CAPITALS VALUES HUMAN • Circa 10,000 AmBankers • RM24.7 million invested in employee training and development Principled OUR STRATEGY BUSINESS ACTIVITIES FINANCIAL • RM9.0 billion in Market Capitalisation Wholesale Banking Investment Banking INTELLECTUAL • Over 40 years of banking expertise Retail Banking MANUFACTURED • 170 retail branches • 641 ATMs • 210 Cash Recycler Machines • 9 Priority Centres • AmOnline: mobile and online banking NATURAL • 28,374 MWh in energy consumption • 55 million sheets of paper used Business Banking Islamic Banking Proactive 1 Attaining a Return on Equity (ROE) of ≥10% 2 Sharpening Our Segment Play 3 Delivering Holistic Customer Value Proposition Leveraging a Collaborative Culture and Partnerships 4 Pushing Capital-Light Revenue 5 Ramping Up the Next Wave of Digital Initiatives 6 Future-Proofing Our Workforce 7 Integrating Environmental, Social, and Governance (ESG) Considerations into Our Business 8 Exploring Digital Bank General Insurance Life Insurance Family Takaful SOCIAL AND RELATIONSHIP • 1,633 active suppliers and vendors • RM1.8 million spent on community development Delivering Financial Outcomes for AmBank Group ROE 7.4% NET PROFIT TOTAL INCOME RM4,227.2 AMMB HOLDINGS BERHAD RM1,341 Million 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights Million 04 Management Discussion and Analysis
  37. 35 Our Value Creating Business Model To help businesses and individuals grow and win together MISSION Appreciative Collaborative Experimental MATERIAL MATTERS KEY OUTPUT STAKEHOLDERS HUMAN • >96% employee retention rate • 66 average hours of training provided to employees Geopolitical & Economic Trends Credit Technology & Digital Transformation FINANCIAL • RM4,227.2 million in total income • 30% in dividend payout R I S K S Market K E Y Customer Satisfaction Governance & Compliance Liquidity Operational Cyber Leadership & Talent Sustainability Environmental, Social & Governance (ESG) Factors INTELLECTUAL • More than 60 awards garnered MANUFACTURED • More than 85,900 priority banking customers • 77 million online transactions for the month of March 2020 NATURAL • 11% reduction in overall CO2 emissions • 10% drop in kWh energy consumption SOCIAL AND RELATIONSHIP • >RM538 million contributed to local suppliers • 3,601 people and institutions reached through community initiatives TOTAL CUSTOMER DEPOSITS RM113.0 05Leadership Billion 06 Sustainability Report 07 Additional Information DIVIDEND PAYOUT 30.0% DIVIDEND PER SHARE 13.3 sen INTEGRATED REPORT 2020
  38. 36 Strategic Review AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 37 Operating Landscape • Economic Review • Banking Review 40 Stakeholder Engagement 42 Material Matters 44 Key Risks And Mitigation 47 Our Strategy 04 Management Discussion and Analysis
  39. 37 Operating Landscape ECONOMIC REVIEW Global Malaysia The global economy faced a challenging year in 2019 . Unresolved trade tensions between China and the US resulted in a slowdown of manufacturing, investments and trade activities. The automotive industry was severely affected by supply disruptions, while the technology cycle was on a downturn. Increasingly, trade dispute caused multinational corporations to reassess their global production strategies, prompting a reconfiguration of global value chains. Underpinned by global headwinds and domestic challenges, the Malaysian economy grew at a credible pace of 4.3% in 2019. Growth was supported by the resilient private sector and household spending. Private consumption remained firm in 2019, supported by continued income and employment growth. Lower-income households also benefitted from key Government measures, such as an increase in the minimum wage and cash transfers (e.g. Bantuan Sara Hidup). Meanwhile, volatility in the global financial market heightened, primarily dominated by risk aversion during the year. Country-specific risks, including the prolonged state of Brexit negotiations and political unrest in Hong Kong and Latin America, resulted in sharp capital flows and exchange rate movements. Uncertainties remained elevated, with subdued investor sentiments and geopolitical uncertainties. Increased global risk aversion led to sustained demand for safe-haven assets (e.g. US dollar and gold) and safer financial asset classes (e.g. sovereign bonds), as well as capital flow reversals from emerging market economies. During the year, both the global economy and trade, which grew by 2.9% and 1% respectively, experienced the lowest growth since 2009 (2018: 3.6% and 3.7%, respectively). Global Economy Trade 3.7% 3.6% 2.9% 1.0% FY2018 FY2019 FY2018 FY2019 Despite weaker trade and investment activities, steady consumer demand and timely policy actions provided some support to global growth. Domestic demand in major economies was supported by resilient private consumption, underpinned by favourable labour market conditions with stable wage growth and lower unemployment rates. Expansionary fiscal policies in the US and most emerging market economies, such as China and developing nations in Asia, also cushioned the economic challenges and contributed to global growth. 05Leadership 06 Sustainability Report 07 Additional Information Malaysian Economic Growth Private Consumption Growth 2019: 4.3% 2018: 4.7% 2019: 7.6% 2020: 8.0% Throughout the year, Malaysia sustained its foreign direct investments (FDI). However, investments by the private sector were affected by the highly uncertain global outlook, a broad-based decline in corporate profitability, and continued weakness in the domestic property market. Investments by the public sector were particularly weak due to lower capital spending by public corporations, as well as from the review and delays of large-scale projects. Nevertheless, the weakening of investment activities was mitigated by several factors. First, large multi-year investment projects in the resourcebased and electrical and electronic (E&E) manufacturing subsectors continued to make steady progress. Second, the resumption of several rail transport projects, mainly in the second half of 2019, provided some lift to investment growth. Third, broadly stable global oil prices in 2019 supported further capital outlay by companies in the mining sector. In the second half of 2019, the economy was affected by supply disruptions in the commodities sector. Growth in the agriculture sector contracted as the lagged impact of dry weather conditions and a cutback in fertiliser application in early 2019 affected oil palm yields. Similarly, growth in the mining sector also declined as facility closures and maintenance work affected both crude oil and natural gas output. Similar to most emerging economies, weaker external demand weighed on the economy’s exports and investment activity. In tandem with the decline in exports, imports for further processing and re-export activities subdued in 2019. The lower investment activity also reduced demand for capital imports, particularly machinery and transport equipment. INTEGRATED REPORT 2020
  40. 38 Operating Landscape Outlook The year 2020 has taken a dramatic turn . The initial outlook for the local economy was a modest recovery on the back of an expected stabilised global economy. However, this was interrupted by the sudden emergence of the COVID-19 pandemic. In response to the outbreak, national authorities across the world have taken unprecedented measures to contain the virus. These include lockdown and movement control orders, inbound and outbound travel restrictions, bans on large social gatherings, shutdown of non-essential services, enforced business closures and, most restrictively, blanket quarantine orders on all segments of the population. While these “social distancing” measures are vital for public health, they resulted in concurrent supply and demand shocks, dragging down the economic growth in both advanced and emerging market economies. This led to heightened turbulence in global financial markets, which was further amplified by uncertainty in the global oil market. Hence, governments and central banks have introduced significant fiscal and monetary intervention measures to cushion the impact of economic contraction, as well as preserving income and employment as much as possible. Malaysia has not been spared from the economic challenges of COVID-19. Spillovers from the pandemic and the implementation of the Movement Control Order (MCO) to contain the outbreak will result in large output losses for the economy in 2020. The Government and the central bank have responded swiftly through a combination of monetary, financial and fiscal measures that support household income and safeguard jobs, while also averting large-scale business failures to prevent the transitory economic disruption in becoming permanent. The baseline growth for the economy in 2020 is within -2.0 to 0.5%, based on the coordinated slowdown in both external and domestic demand. However, the growth outlook remains uncertain as it depends on the development of the virus, external headwinds, and domestic challenges. Nevertheless, the fundamentals of the economy remain resilient. Diversified sources of growth and external trade structure should help mitigate the economic impact of domestic and external developments. Current account surplus, healthy levels of international reserves, and a flexible exchange rate are expected to provide some buffer against external shocks. The financial sector remains a source of strength, giving assurance that financial intermediation will carry on uninterrupted. BANKING REVIEW The capitalisation of the banking sector remained strong, thus bolstering banks’ resilience against potential stress arising from adverse financial and macroeconomic shocks. The Capital Ratio at the end of 2019 was well in excess of the regulatory minimum, underpinned by continued profitability and sound asset quality. The common equity tier-1 capital ratio stood at a robust 14.3% in December 2019, and the overall risk profile of banks was broadly stable, with the ratio of risk-weighted assets to total assets remaining largely unchanged at around 58%. Capital Ratio 18.3% The Liquidity Coverage Ratio (LCR) of the banking system, which indicates banks’ ability to meet liquidity needs over a 30-day stress period, stood at 149.1% as of end2019, with all banks recording LCR levels above the regulatory minimum of 100%. These liquid assets are available for banks to draw upon during periods of stress. As part of the measures recently introduced by the Bank to preserve stability in funding markets and support bank lending activity, the implementation of the Net Stable Funding Ratio (NSFR) requirement will be phased-in, with a minimum compliance ratio of 80% in July 2020 and 100% in September 2021. The banking sector’s profitability was sustained above the estimated average cost of capital, with 13% in 2019, thus further strengthening banks’ solvency positions. Pre-tax profits experienced solid annual growth due to a strong rise in non-interest income. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group Profit-taking by banks in the government bond market, amid declining yields, drove higher trading and investment income. The growth in fee and commission income was consistent with recent strides by banks to diversify revenue sources through the cross-selling of wealth management and insurance products. Overall, the banking system loans grew by 3.9% in 2019. This was driven mainly by household and servicerelated sectors such as transport, storage and communication, as well as the wholesale, retail, hotel and restaurant, real estate, and manufacturing sectors. Impairments remained low across most credit portfolios, with a stable share of total banking system loans at 1.5%. However, there was some deterioration in loan performance in specific segments of the household and business sectors, but the potential losses remained within the financial buffers of banks. Additionally, banks continue to keep a firm lid on operational costs with sustained efforts to streamline and automate business processes, as well as optimise their physical branch presence. On aggregate, the operating costto-income ratio remained stable at 44.7%. Pre-Tax Profits Growth 15.4% Non-Interest Income Growth 30.5% 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  41. 39 Operating Landscape Outlook In the wake of the COVID-19 pandemic , banks are expecting an increase in the share of Restructured and Rescheduled (R&R) loans, particularly by borrowers in business segments who have been most affected by the pandemic. The rise in R&R loans will likely increase provisions over the short-term. However, banks are well-positioned to absorb its potential impact on profitability, given the prudent provisioning of buffers built up over the years. Total provisions, including regulatory reserves held by banks against credit losses, currently stands at RM33.9 billion (126.4% of impaired loans). Active monitoring and recovery efforts are expected to help banks keep the impairments from accelerating. For 2020, banks are expecting weaker credit growth compared to 2019, which remains significantly dependent on the duration of the COVID-19 pandemic. While the impact of COVID-19 on the economy is likely to be significant in the short-term, banks are entering this period from a position of strength, with significant capital and liquidity buffers. The prudent management of credit risks and diversified income sources will provide support to the banking sector’s profitability. In addition, banks’ digitalisation strategies are expected to drive further operational efficiencies, lending additional support to long-term profitability and overall viability. Return on Equity (ROE) for banks is projected to be stable at around 9%-11%, with net interest margin remaining under pressure. Banks have strong capital positions... Feb 2020 Total Capital Ratio Total Capital Ratio Excess Capital Buffers Excess Capital Buffers 12.6% 18.4% RM39 RM121 Billion Billion 2008 ...with ample liquidity buffers... ...and adequate provisions set aside. Liquidity Coverage Ratio (%) Loan Loss Coverage Ratio (%) 148 137 FY2015-2019 Average Feb 2020 120 125 FY2015-2019 Average Feb 2020 Source: Bank Negara Malaysia (BNM), 2020 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  42. 40 Stakeholder Engagement The financial and non-financial performance of the Group relies on our ability to generate value for the people impacted by our business . As such, we actively engage and interact with various stakeholder groups to better understand and serve their changing expectations. Through both internal and external platforms, we hold meaningful discussions that shape the direction of our business strategy, allowing us to deliver solutions that enrich the lives of stakeholders far into the future. Stakeholders CUSTOMERS Engagement Platforms Topics of Interest • Customer Satisfaction Survey • Financial Inclusion • CX Mystery Shopping • Green Financing • Digital and Online Solutions • Customer Experience • Contact Centres • Data Security • Customer Experience Unity Tour (CXT) EMPLOYEES • Learning & Development Programmes (e.g. Induction Trainings) • AmBank Group Sustainability Agenda •Townhalls • Responsible Lending Strategy and Progress • AmConnected Portal/Within • eHR Emails, AmBerita Newsletters and Direct Employee Electronic Feedback • Senior Management Visits to Touchpoints • Department Meetings, Senior Management Quarterly Engagements, Team Huddles, Senior Management Offsite and Department Offsite • KPI and TOR Sessions Sessions (1-1 Performance Review and Development Cycle) • AmBank Group Sports Club SUPPLIERS • Onboarding Procurement Process • Supplier Code of Conduct • Performance Evaluation • Business Integrity • Adhoc Engagements • Governance & Compliance • Procurement Sustainability • Green Procurement GOVERNMENT & REGULATORS • Regular Meetings and Updates Sessions (e.g. with Bank Negara Malaysia, Securities Commission Malaysia, Bursa Malaysia Berhad and Credit Guarantee Corporation Malaysia Berhad) • Seminars and Workshops •Governance • Quality of ESG Reporting & Communication • Value-Based Intermediation (VBI) • Sectoral Sustainability Standards • Feedback to Regulators’ Sustainability-Related Consultation Papers • Climate Change • Financial Inclusion • Talent Development • Treating Customer Fairly AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  43. 41 Stakeholder Engagement Stakeholders Engagement Platforms COMMUNITY / NGO/CIVIL SOCIETY Topics of Interest • Financial Industry Collective Outreach (FINCO) • Financial Inclusion • Focus Groups • Financial Literacy • AmBank Group Sports Club • Climate Change • Volunteering Programmes • Community Development • Zakat Contributions • AmKasih – CSR Activities SHAREHOLDERS & INVESTORS BUSINESS PARTNERS • Annual General Meeting • Financial Performance • Quarterly Analyst and Fund Manager Briefings • Asset Quality Outlook • Investor Presentations, Meetings and Discussions • Dividend Payout and Capital Position • Financial Statements • Strategic Priorities • Media Releases • Corporate Actions and Divestment of Assets • Investor Conferences and Roadshows • Macroeconomic Outlook • AmBank Group’s Investor Relation (IR) Section and Dedicated IR Mailbox • Responsible Financing and Progress of ESG Aspirations • Meetings, Knowledge Sharing Sessions and Webinars • Financial Inclusion •Seminars/Workshops • Responsible Financing •Roadshows MEDIA • Conferences and Events • Financial Inclusion • Media Releases • Responsible Financing • Media Interviews • Value-Based Intermediation (VBI) • Media Engagements • Financial Literacy • Community Development SUSTAINABILITYCERTIFIED BODIES •Meetings • Sustainability Governance •Audit • Occupational Health Safety •Assessments • Human Resource • Procurement and Environment 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  44. 42 Material Matters The Group ’s strategies and decisions are based on material matters that influence the achievement of business objectives. The table below describes the management’s approach to addressing these matters for optimal long-term growth. Material Matters Business Context Risks GEOPOLITICAL AND ECONOMIC TRENDS We operate in a dynamic environment that is changing and evolving at an unprecedented rate, triggered by domestic and international political factors, technological advances, and shifts in consumer expectations and behaviour. External headwinds and uncertainties weaken domestic business sentiments, equity markets and commodity prices, impacting our overall growth and performance. TECHNOLOGY & DIGITAL TRANSFORMATION The increasingly digital and hyper-connected world is redefining customers’ expectations of financial services. More than ever, there is a need for cross-industry convergence and digital empowerment, both internally and externally, to future-proof our organisation. Cyber security breaches due to an increase in online services may lead to loss of stakeholder confidence and financial penalties. CUSTOMER SATISFACTION Customer satisfaction requires an approach encompassing more than just product or service delivery. It is essential to create new, holistic and innovative sources of value for customers. A poor understanding of customers’ financial circumstances impedes our ability to deliver relevant solutions that meet their needs, thus reducing customer loyalty. GOVERNANCE & COMPLIANCE Financial regulatory reforms and developments take place to protect the financial ecosystem, ensure financial stability, and drive customer protection. Therefore, banks must remain resilient to regulatory changes by responding swiftly and effectively. A lack of internal policies and frameworks to effectively navigate regulatory standards exposes the Group to financial and nonfinancial losses associated with regulatory non-compliance. LEADERSHIP & TALENT Business strategies and objectives are driven by the skills and capacity of our people. As business dynamics and demands change, creating a digital-ready and agile workforce is imperative to ensure they are resilient and equipped for work of the future. A gap in relevant skills and capabilities within the workforce prevents the Group from meeting its strategic objectives in the long-term. ENVIRONMENTAL, SOCIAL, & GOVERNANCE (ESG) FACTORS There is an increasing expectation for financial institutions to integrate ESG considerations into their business to drive long-term value and performance. The negative environmental and social impact that arises from unsustainable practices may lead to regulatory non-compliance and stop-work orders. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  45. 43 Material Matters Opportunities Our Approach Proactive monitoring and response to trends allow us to devise appropriate solutions that increase our competitive advantage and market share . • Establish a comprehensive franchise that focuses on high-yielding businesses and adopt an agile approach that allows us to effectively navigate and capitalise on the changing environment. IR Group CEO’s Message on pages 20 to 31 IR Key Risks & Mitigation on pages 44 to 46 IR Operating Landscape on pages 37 to 39 Digital platforms and solutions enable better efficiency, lower operational costs and faster customer response. • Expand and enhance our digital touchpoints and offerings for both retail and non-retail customers. • Strengthen cyber security controls through our cyber-resilience framework to enhance the Group’s capabilities to prevent cyber-attacks. • Foster a data stewardship culture and establish a strong focus in corporate governance around the responsible use of data. • Build cross-industry partnerships to deliver integrated and seamless services to customers. • Assist SMEs with the migration to e-commerce as a new norm emerges. IR Group CEO’s Message on pages 20 to 31 IR Key Risks & Mitigation on pages 44 to 46 IR Sustainability Report on pages 135 to 205 IR Our Strategy on pages 47 to 59 Creating a seamless and efficient customer experience improves our brand value, which increases customer acquisition and loyalty. • Rollout innovative strategies to address target segment needs (e.g. Road to IPO) for businesses looking to scale up. • Redefine customer journeys by leveraging digital innovations. • Avail extensive digital and physical touchpoints nationwide for customers’ ease of access. • Embed Net Promoter Score (NPS) and fair dealing principles into KPIs. • Transform rewards and loyalty to currency & e-Wallet play across strategic partners. IR Our Strategy on pages 47 to 59 IR Sustainability Report on pages 135 to 205 The close monitoring of industry and regulatory developments allow the Group to remain resilient against the evolving regulatory landscape. • Integrate compliance into the business’ strategic focus through group and individual KPIs that strengthen the compliance with policies and procedures. • Drive continuous education and awareness initiatives to embed a culture of adherence. • Tailor measurable outcomes into KPIs; observed as part of the on-the-job day-to-day ways of working. IR Sustainability Report on pages 135 to 205 Effective training and development programmes create a strong talent pool of future leaders and a high-performing workforce. • Leverage technology and digital solutions to support recruitment and development activities. • Implement effective training and talent development programmes that create a future-proof and high-performing workforce. • Nurture a strong organisational culture and compelling employee value proposition to continue attracting and retaining top industry talent. IR Chairman’s Statement on pages 14 to 19 IR Sustainability Report on pages 135 to 205 The implementation of sustainability strategies and practices improve our brand image as a responsible and caring bank. • Establish a robust sustainability framework that outlines our journey towards becoming a sustainable organisation by incorporating ESG considerations into business decisions. IR Chairman’s Statement on pages 14 to 19 IR Key Risks & Mitigation on pages 44 to 46 IR Group CEO’s Message on pages 20 to 31 IR Sustainability Report on pages 135 to 205 05Leadership 06 Sustainability Report 07 Additional Information More Info INTEGRATED REPORT 2020
  46. 44 Key Risks and Mitigation AmBank Group continues to build its resilience against industry challenges , external environments and market changes. We deploy appropriate mitigation strategies that allow us to effectively stay ahead of uncertainties. We are guided by AmBank Group’s Risk Management Framework that focuses on embedding effective risk mitigation mechanisms and risk disciplines within the Company. The framework is driven by the Board’s annually-approved Risk Appetite Framework, which forms the foundation of the Group by setting its risk and reward profile. CREDIT RISK Stakeholders Affected: Description Mitigation Strategies Factors such as weakening GDP growth and residential property market; higher household debt, unemployment and inflation rates; and unprecedented situations such as the global health crisis, continue to affect the repayment capacity of SMEs and retail customers which impacts our overall performance. • Actively monitor portfolios and engage with customers (commercial and retail) to determine if Restructured & Rescheduled (R&R) loans are necessary. • Semi-annually review Group Risk Appetite Framework (GRAF) for better risk control on higher-risk and vulnerable incomes, occupations, Central Credit Reference System (CCRIS), industries, financing ratio and risk grade segments. • Conduct a dynamic stress simulation to estimate the deterioration of vulnerable borrowers and portfolio risk migrations for timely actions and adequate loss provisions. • Enhance monitoring and early warning tools for more effective credit management and portfolio monitoring. Results • Retail portfolio of overall Gross Impaired Loan Ratio (GIL) and Probability of Default (PD) performance remained within the management guidance. • Asset quality performance from new loans is satisfactory. • The Bank’s loan loss reserve provisioning is sufficient to cover impairment and is reviewed and re-assessed periodically. MARKET RISK Stakeholders Affected: Description Mitigation Strategies Market changes and fluctuations in interest rates, profit rates, foreign exchange rates and equity prices may lead to financial losses. • Strictly adhere to a comprehensive Market Risk and Liquidity Risk Management Framework, supplemented by the Market Risk Management Policy. • Independently monitor detailed portfolio limits within the Bank’s market risk appetite on a day-to-day basis. • Automation of market risk monitoring and assessment tools to enhance coverage and increase efficiencies. Results • Portfolio volatility proactively managed and minimised within the approved limit structure and risk appetite. Customers Employees AMMB HOLDINGS BERHAD Suppliers Government & Regulators 01 Overview of AmBank Group Community/NGO/ Civil Society 02 Key Messages Shareholders/ Investors 03 Key Highlights Business Partners Media SustainabilityCertified Bodies 04 Management Discussion and Analysis
  47. 45 Key Risks and Mitigation LIQUIDITY RISK Stakeholders Affected : Description Mitigation Strategies A limited ability to liquidate assets may cause the Group to have insufficient financial resources to meet our business obligations as they fall due. • Comply with a comprehensive Market Risk and Liquidity Risk Management Framework, which is supplemented by the Liquidity Risk Management Policy. • Define the liquidity risk appetite according to compliance with a range of internal and regulatory measures. • Perform liquidity stress tests to identify and address potential areas of concern. • Establish system enhancements that enable more proactive liquidity risk management. Results • Proactive liquidity risk management within the approved limit structure and risk appetite. OPERATIONAL RISK Stakeholders Affected: Description Mitigation Strategies The Group’s operations may be exposed to potential losses and disruptions due to inadequate or failed internal processes, people and systems or external events. • Adopt an operational risk framework wherein a set of Operational Risk Appetite guidelines was duly agreed and approved by the Board of Directors. This sets forth the formulation of policies and procedures with regard to managing operational risks. • Implement a governance structure that embeds the Three-line of Defence approach, with the business units taking the first line of defence; Group Operational Risk Unit for the second line; and the Internal Audit division taking the third and final line. • Devise a full suite of operational risk management tools, such as Risk Control Self-Assessment, Key Control Testing, Key Risk Indicators, etc. to provide both leading and lagging risk management indicators through an integrated Operational Risk Management System. • Periodically conduct comprehensive business continuity planning and implement a robust Business Continuity Management (BCM) Framework in preparation for all eventualities. • Carry out regular drills on all aspects of the BCM Framework to ensure that all policies and procedures are sufficient and effective. • Adhere to the BCM and crisis management framework, policies, practice guides and plans. Results • Overall decline in operational loss by 39% YoY. Customers 05Leadership Employees Suppliers 06 Sustainability Report Government & Regulators 07 Additional Information Community/NGO/ Civil Society Shareholders/ Investors Business Partners Media SustainabilityCertified Bodies INTEGRATED REPORT 2020
  48. 46 Key Risks and Mitigation CYBER RISK Stakeholders Affected : Description Mitigation Strategies Vulnerabilities in IT security and inadequate internal controls expose the Group to internal as well as external cyber-attacks and threats that result in breaches of confidentiality, integrity and availability of information assets and systems. • Actively deploy the latest patches and updates to the Group’s information systems. • Implement Next-Generation Anti-Virus and Endpoint Detection & Response (EDR) at the endpoints. • Filter incoming emails at the email gateway for threats. • Implement perimeter network control measures (e.g. firewalls and Intrusion Prevention System) on the Group’s information systems. • Conduct red teaming assessments to proactively test and simulate attacks on the Group’s security controls to identify potential vulnerabilities, and whether such vulnerabilities can be exploited into viable threats that pose a risk to the Group. Results • Zero (0) cyber incidents within AmBank Group. • Effective defence-in-depth and multi-tier approach to cyber security. SUSTAINABILITY RISK Stakeholders Affected: Description Mitigation Strategies Social and environmental externalities may impact the Group’s long-term value chain and our ability to sustain growth. • Conduct a sustainability materiality assessment to determine the Group’s sustainability material matters. • Establish a sustainability governance structure that streamlines sustainability-related decisions and strategies. • Implement AmBank Group’s Sustainability Framework to optimise the Group’s social and environmental impact. Results • Consistently achieve the Group’s annual carbon-reduction targets (FY2020: 11%) • Overall decline in total workplace accidents by 27%. • Contributed RM26 million and RM850 million in green loans and affordable housing schemes respectively. Customers Employees AMMB HOLDINGS BERHAD Suppliers Government & Regulators 01 Overview of AmBank Group Community/NGO/ Civil Society 02 Key Messages Shareholders/ Investors 03 Key Highlights Business Partners Media SustainabilityCertified Bodies 04 Management Discussion and Analysis
  49. 47 Our Strategy 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  50. 48 Our Strategy FY2016-FY2020 : TOP 4 STRATEGY RECAP OUR STRATEGIC PRIORITIES The Top 4 Strategy was launched in 2016 as part of our aspiration to become a “Top Four” player in key growth segments and products. The aim of the strategy was to put us on track to build a stronger, more competitive and more resilient bank as a whole. To be Top 4 in each of our 4 growth segments (Mass Affluent, Affluent, SME, Mid Corp) The strategy was based on a two-pronged approach: To be Top 4 in each of our 4 focus products (Cards, TB, Markets, Wealth Management) 1 To run the Bank better; and 2 To transform the Bank where needed. To sustain Top 4 in Ultimately, our goal was to ensure that the Bank is operated on a foundation of strength and is well-positioned to deliver sustainable returns to our shareholders. each of our current engines (Corporate loans, DCM, asset management) To be Among the Top Employers in Malaysia We identified four key strategic priorities under the Top 4 Strategy. This includes firing new growth engines targeting underbanked segments; attaining market leadership in key products; solidifying our operational, governance, and digital core; and optimising our current areas of strengths. FIRING UP NEW GROWTH ENGINES ATTAIN MARKET LEADERSHIP IN KEY PRODUCTS SETTING UP FOR SUCCESS OPTIMISE CURRENT ENGINES Win in fast-growing and underserved segments: • Mass Affluent • Affluent • SME • Mid-Corp • Build up Transaction Banking and Markets – Cross-Sell Business • Build an Integrated Cards and Merchant Ecosystem • Lead the market with an advisoryled wealth proposition • Drive Digital Transformation across channels, processes, productivity, analytics • F u l l y l e v e r a g e d i s t r i b u t i o n footprint, partnerships and new digital channels • Break down organisational silos and focus on people, talent and culture • Enhance the risk and compliance culture • Leverage strengths in Corporate and Investment Banking • S t r e n g t h e n R e t a i l D e p o s i t Franchise Underpinning our strategic priorities were 33 tactical initiatives that span across Retail Banking, Business Banking, Wholesale Banking, Islamic Banking and Group Shared Services, with oversight from the Group Strategic Transformation Office who worked closely with all parties. These initiatives aimed to stabilise the Bank and streamline our people, processes and technology, while also laying the foundation for our digital transformation. The strategy adopted a groupwide approach that ensured these initiatives were tracked holistically and centrally. This included establishing a clear performance framework across group and individual levels to drive and measure progress, which was benchmarked against leading industry players. At the 2019 Half-Yearly Annual Board Strategy Offsite Meeting charting the Group’s mid- and long-term strategic direction and blueprint. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  51. 49 Our Strategy TOP 4 STRATEGY DELIVERING A SOLID PERFORMANCE ACHIEVEMENTS FY2020 marks the culmination of AmBank Group ’s Top 4 Strategy. Since embarking on our transformation journey, we have improved profitability and strengthened our market position due to the intense execution of our strategy, which was reinforced by disciplined tracking. Significant progress has been made in the past four years with regard to strategy execution surrounding segment realignment, such as shifting focus to higher-return businesses, diversifying our revenue sources, and implementing cost discipline and business efficiency. As a result, we achieved notable improvements and performance turnaround in our profit and loss (P&L) statement and balance sheet. Total Income FY2020 Target FY2016 FY2017 FY2018 RM4.38 Billion 3.70 3.77 3.98 RM2.17 Billion PBP RM1.46 Billion PATMI RM108.3 Billion Gross Loans 22.5% CASA Ratio 1.52 1.61 1.30 1.32 87.9 1.13 96.3 21.1% 21.3% 58.8% 57.4% 60.8% 8.8% 8.5% 20.7% 3.92 1.79 1.51 101.8 23.3% 54.3% FY2020 4.23 2.12 1.34 107.2 25.5% 49.9% 50.4% CTI ROE 8.3% 2.02% NIM 05Leadership 91.0 1.56 FY2019 1.98% 8.8% 7.0% 2.00% 1.89% 7.4% 1.94% 1.91% 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  52. 50 Our Strategy TOP 4 STRATEGY DELIVERING A SOLID PERFORMANCE ACHIEVEMENTS LOAN GROWTH & LOAN BASE (RM MILLION) AMMB vs Industry TOP 4 89,920 89,288 10.6% 87,823 96,321 90,986 87,892 107,219 101,845 Crossed RM100 Billion in October 2018 10.2% 9.2% 8.9% 6.4% 6.0% 5.3% 5.9% 5.7% 4.4% 3.5% 4.9% 5.3% 4.0% 0.1% FY2013 FY2014 FY2016 FY2017 -1.6% FY2018 FY2020 FY2019 HP Reduction of R M 5.8 Billion Industry Flat FY2015 DEPOSIT GROWTH & DEPOSIT BASE (RM MILLION) AMMB vs Industry TOP 4 89,699 92,130 90,257 95,805 93,995 In FY2020, we achieved a loan growth of 5.3% against a market average of 4.0%, as well as a 5.7% growth in deposits compared to the 2.1% market average. Our loan and deposit growth performance over the years indicate the effectiveness of the strategy in driving positive growth for the Group. 112,967 106,916 90,520 The Group’s loan and deposit base continued on an upward path over the past four years, and consistently outpaced the financial industry’s average loan and deposit growth performance. Crossed RM100 Billion in September 2018 11.6% 9.8% 9.2% 7.9% 6.6% 5.7% 4.1% 2.7% FY2013 FY2014 5.0% 5.7% 4.8% 3.6% 2.1% 2.0% FY2015 -0.6% FY2017 FY2018 FY2019 Exchanging ideas and thoughts with AmBank Group’s Management team during the 2019 Half-Yearly Management Offsite Meeting. FY2020 -1.9% FY2016 Industry AMMB HOLDINGS BERHAD AMMB 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  53. 51 Our Strategy TOP 4 STRATEGY DELIVERING A SOLID PERFORMANCE ACHIEVEMENTS SEGMENTS MASS AFFLUENT & AFFLUENT BASE Our Mass Affluent base grew by 2.77 times to more than 143,000 customers in FY2020, close to tripling the base in FY2016. Also, our Priority Banking customer base has since doubled from 43,000 to 85,900 in FY2020. RETAIL SME, BUSINESS BANKING & MID-CORP BASE We observed strong growth in all segments. This is largely the outcome of our concerted efforts in contributing to the development of SMEs through value-added services (e.g. AmBank BizRACE and Road to IPO). The targeted segments’ growth is also attributed to the fostering of collaborations internally (across business units) and externally (with cross-industry players). LET US HELP YOU BRING YOUR BUSINESS ONLINE Scan Here AmBank Group and Maxis joined hands to provide connectivity, e-Commerce, and financial solutions to SMEs in Malaysia. Segments In FY2020, AmBank Group and Maxis entered into a strategic partnership to jointly grow SMEs in Malaysia. As part of the collaboration, SME-in-a-Box. a one-stop solution offering comprehensive and simple financing and digital solutions for SMEs was launched. Customer Base (‘000) FY2016 FY2019 FY2020 Growth (FY2016 vs FY2020) Mass Affluent 51.8 115.3 143.5 2.77x Affluent (Priority Banking) 43.4 85.7 85.9 1.98x SME 78.5 90.0 93.9 1.20x Mid-Corp 2.71 2.76 2.85 1.05x PRODUCTS LOANS & FINANCING DEPOSITS Our loans and financing growth for the SME segment expanded by a commendable 1.66 times to RM20.6 billion compared to four years ago, which was supported by consistent growth in our targeted segments. On a YoY comparison, we recorded a positive growth of 2% in loans and financing for SMEs, from RM20.2 billion in FY2019 to RM20.6 billion in FY2020, greatly outpacing the industry average of -16.2%. Card receivables, another key growth product, grew substantially to RM2.1 billion over the four-year period, representing a growth of 1.34 times. We continued to record strong deposit momentum, closing the year at RM113.0 billion in FY2020 versus RM90.4 billion in FY2016. Current Accounts and Savings Accounts (CASA) grew in tandem to RM28.8 billion, resulting in a positive shift in our CASA ratio from 20.7% in FY2016 to 25.5% in FY2020. This is primarily due to our strategy of growing ‘sticky’ and cost-effective deposits by offering collection solutions (e.g. JomPAY), enhancing our payroll services; increasing the share of wallet with SME and Mid-Corp clients and cross-selling of CASA with financing products. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  54. 52 Our Strategy TOP 4 STRATEGY DELIVERING A SOLID PERFORMANCE ACHIEVEMENTS Loans RM Billion FY2019 FY2020 Growth (FY2016 vs FY2020) SME 11.9 20.2 20.6 1.66x Mid-Corp 11.8 14.6 16.0 1.36x Cards 1.6 2.2 2.1 1.34x FY2016 FY2019 FY2020 Growth (FY2016 vs FY2020) Deposits 90.4 106.9 113.0 1.25x CASA 18.7 24.9 28.8 1.54x 20.7% 23.3% 25.5% 1.23x RM Billion Deposits FY2016 CASA Ratio RETAIL SME LOANS (RM BILLION) 47.9 20.2 FY2019 AMMB -16.2% +2.0% 40.1 20.6 FY2020 Industry Average CURRENT ENGINES CORPORATE FINANCE ASSET MANAGEMENT We achieved a significant increase in profit before provision (PBP) by 65.6% compared to FY2019, which is driven by the 28.3% growth in revenue. Additionally, we maintained our YoY No. 4 ranking, with a 10.6% market share for mergers and acquisitions (M&A). Through our continued efforts and hard work, we were recognised as Malaysia’s Best Corporate & Institutional Adviser by the Asset Triple A Awards 2019. Our assets under management (AUM) grew by 6.9% to RM42 billion. Our work and achievements in asset management resulted in the Group winning Malaysia’s Best Overall Asset & Fund Manager from the Alpha Southeast Asia Fund Management Awards 2019. Awarded Malaysia’s Best Asset Manager for Money Market Funds by Alpha Southeast Asia. DEBT CAPITAL MARKET AmBank Group continues to be recognised for its leading performance in the area of Corporate Finance. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group During the financial year, we recorded a 17.7% growth in revenue, primarily driven by higher Fee & Trading income. We also improved our YoY position to the No. 2 ranking in the Bloomberg MYR Bonds League Table (FY2019: No. 3), with a 13.3% market share. Likewise, we achieved the No. 2 ranking with a 17.9% market share for Bloomberg MYR Islamic Sukuk League Table (FY2019: No. 4). Due to the collective efforts and subsequent results of the team, the Group received 16 awards in Debt Capital Market throughout FY2020. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  55. 53 Our Strategy TOP 4 STRATEGY DELIVERING A SOLID PERFORMANCE ACHIEVEMENTS TOP EMPLOYER In an effort to develop future leaders and a resilient workforce , we groomed over 60 young talents through the AmGraduate Programme since its inception in 2016. We also trained over 220 AmBankers of different levels across the Group through accelerated development programmes that were designed in collaboration with reputable institutions (e.g. INSEAD), including the following key programmes: • Being a Talented Manager (BATMAN) for Assistant Managers and Managers; • Emerging Leaders Programme (ELP) for Senior Managers and Vice Presidents; and • Leadership Enhancement and Acceleration Programme (LEAP) for Group Senior Vice Presidents and Executive Vice Presidents. Our continuous commitment to excellence in human resources and talent management resulted in numerous recognitions and accolades: • • • • HR Excellence Awards 2019 Malaysia Best Employer Brand Awards Malaysia’s 100 Leading Graduate Brands Awards (Ranked 60) Malaysia Globally Recognised Employer Brand Awards Malaysia’s 100 Leading Graduate Employers #60 #78 #85 2016 2017 2019 #85 #88 AmBank Group’s Position Improved from Rank 88 in 2015 to Rank 60 in 2019 05Leadership 06 Sustainability Report 2015 07 Additional Information 2018 INTEGRATED REPORT 2020
  56. 54 Our Strategy TOP 4 STRATEGY COMPARATIVE PERFORMANCE ACHIEVEMENTS NII CAGR (%) FY2016-FY2020 TOP 3 6.6 Bank A Growth Against Industry Peers Bank C 3.2 4.5 2.5 -2.5 3.8 -0.4 Bank C -0.3 Bank D -0.3 Bank A 3.0 -0.2 0.7 Bank B 2.3 CASA CAGR (%) FY2016-FY2020 LOANS CAGR (%) FY2016-FY2020 5.6 13.2 Bank E 4.6 Bank C 4.0 Bank B Bank A 3.9 Bank A 01 Overview of AmBank Group Bank D 4.8 Bank D Bank D AMMB HOLDINGS BERHAD 3.5 Bank E 4.1 6.3 Bank B Bank C CTI CAGR (%) FY2016-FY2020 5.5 Bank A DEPOSITS CAGR (%) FY2016-FY2020 4.8 3.5 9.7 Bank D Bank E Bank B PBP CAGR (%) FY2016-FY2020 Bank E 3.7 Bank D 3.1 Bank C 5.8 Bank A 3.9 Bank D Bank B 4.7 3.9 4.0 Bank E In FY2019, three years into the launch of the Top 4 Strategy, AmBank Group returned to emerge as one of the top three banks with the most assertive growth across key performance indicators. The Group has once again sustained our annual growth performance in FY2020, outperforming our peers in multiple performance metrics. Bank E 5.1 Bank B Bank C REVENUE CAGR (%) FY2016-FY2020 4.5 Bank C 4.5 Bank E 4.5 Bank B 4.4 Bank A 1.6 02 Key Messages 4.6 03 Key Highlights 4.0 2.5 04 Management Discussion and Analysis
  57. 55 Our Strategy ACCELERATING OUR BUSINESS THROUGH OPERATIONAL EFFICIENCY AND DIGITAL EMPOWERMENT Our business performance was further propelled by the continued optimisation of our branch network , which was driven by an enhancement of our retail and non-retail digital capabilities, as well as the increased utilisation of automation and agile IT solutions. In the past four years, our business volume has increased multi-fold by over 100%, due to the digital solutions and offerings delivered to individual and non-individual customers e.g. Mid-Corporate, Large Corporate, Business and SME Banking Clients. Business Volume Increased Multiple Times since FY2017 AmOnline ....................... An individual online banking platform that is available on desktop and mobile channels, with over 975K users as at March 2020. 3x 4x Users No. of Transactions Electronic Invoice Presentment & Payment (EIPP) ....................... Fully-automated business-tobusiness customer billing and payment solutions via various payment modes. AmAccess Biz & AmAccess Corporate ....................... A user-friendly cash management portal for non-individual customers, which can be accessed through mobile and desktop. The platform is equipped with payment features that provide hassle-free and convenient cash management solutions. 335x No. of EIPP Transactions 2x No. of Payments Transactions Cash Management ....................... Provide cash management and liquidity management solutions to corporate customers. CASH MANAGEMENT SOLUTIONS (CMS) 2x No. of CMS Transactions AmBank Group celebrates its Top JomPAY Billers with PayNet at the JomPAY Customer Appreciation Dinner. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  58. 56 Our Strategy AWARDS & RECOGNITION AmBank Group’s solid financial performance, robust operational governance, and innovation excellence have culminated in various recognitions and awards won throughout FY2020. 1. Awarded the Best SME Bank by numerous organisations for commitment in supporting the growth and development of SMEs in Malaysia: 12. Best Retail Mobile Banking Experience and Best Wealth Management Experience (The Asset Triple A Awards 2020) (a) SME Bank of the Year – Malaysia from Asian Banking & Finance Awards 2019 13. Best Automated Chatbot Initiative, Application, or Programme (The Asian Banker Malaysia Awards 2019) (b) Best SME Bank in Malaysia from Alpha Southeast Asia Best Financial Institution Awards 2019 14. Property & Casualty Insurer of the Year 2019 by Insurance Asia News (c) Best SME Bank Malaysia 2019 from Global Banking & Finance Awards (2nd Consecutive Year) (d) Best Islamic Finance SME Bank Malaysia 2019 from Alpha Southeast 2. Most Improved Retail Bank 2019 Award (Asian Banker Malaysia Awards 2019) 15. RAM Sustainability Award 2019 16. National Occupational Safety & Health Excellence Award 2019 – Financial Category (2nd Consecutive Year) 17. Malaysian Society for Occupational Safety & Health Award (MSOSH) 2019 – Gold Class 2 for Service Sector Category 18. Best Annual Report in Malaysia 2019 by Alpha Southeast Asia 3. Best Spend Growth – Overall & Best Leverage of Mastercard Assets L–R: Tay Ming Han, Senior Vice President, Portfolio Development, Business Banking, AmBank Group, Christopher Yap, Managing Director, Business Banking, AmBank Group, Dato’ Sulaiman Mohd Tahir, Group Chief Executive Officer, AmBank Group and Eqhwan Mokhzanee, Chief Executive Officer, AmBank Islamic Berhad with the four awards for Best SME Bank in Malaysia from the Asian Banking and Finance Awards, Alpha Southeast Asia Awards and Global Banking and Finance Awards. 4. Highest Payment Volume (PV) Growth for eCommerce Spend & Co-Brand Card by Visa 5. Most Improved Islamic Bank 2019 Award (Global Islamic Finance Awards) 6. Most Promising Islamic Bank Malaysia Award 2019 (Global Banking & Finance Review) 7. Best Islamic Banking CEO Malaysia 2019 (Global Banking & Finance Review) 8. Islamic Banker of the Year 2019 (Global Islamic Finance Awards) 9. Best FX Bank for Corporates and Financial Institutions (8th Consecutive Year) and Best FX Bank for Structured Products – Commodities, Credit, Equity, FX and Multi-Assets for FX & Treasury Segment at the Alpha Southeast Asia Awards 2019 10. Outstanding Contribution to JomPAY by PayNet (3rd Consecutive Year) 11. Most Innovative Mobile Banking App and Best Mobile Banking App (Global Business Outlook Awards 2019) AMMB HOLDINGS BERHAD 01 Overview of AmBank Group AmBank Group won Best Annual Report and ranked second in the Best Senior Management Investor Relations Support and Best Strategic Corporate Social Responsibility categories at the Alpha Southeast Asia’s 9th Annual Institutional Investor Awards for Corporates 2019. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  59. 57 Our Strategy CHARTING OUR PATH FORWARD … Over the past few years, AmBank Group has successfully focused on common goals to recalibrate our business, transform the Bank, and turnaround our overall performance. With a shared strategic vision and a solid foundation in place, the next four years will focus on accelerating this momentum whilst simultaneously future-proofing the bank. The next phase of AmBank Group’s strategy was developed by evaluating external factors influencing the banking landscape, the Group’s internal strengths and capabilities, and evolving stakeholder expectations. Development of Our Next Strategy Understanding the External Environment Study market drivers, consumer behaviour, regulatory expectations and emerging trends to understand the future context. Shaping Our Internal Collective Vision Organise workshops across the stakeholders to gather their insight and expectations. Talent Visioning Workshop Solicit ideas and feedback from future leaders of the bank. C-Suite Visioning Workshop Debate and shape FY2021-FY2024 preliminary strategic direction. Strategy Offsite Confirm strategic direction and initiatives for the next four years. Establishing Our Future Priorities Analyse internal and external information to prioritise the strategic drivers and initiatives to achieve our aspirations. Defining our Strategic Initiatives Roadmap Develop AmBank Group’s four-year roadmap according to AmBank Group’s renewed vision, mission and priorities. Rolling Out the Strategy Implement and execute the new strategy across all work levels and business units. Future leaders of the bank, the Management team and Board of Directors coming together to establish the Group’s path forward in a series of Visioning Workshops. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  60. 58 Our Strategy …WITH A RENEWED VISION, MISSION, AND STRATEGIC FOCUS Wrapping up the Top 4 transformation journey with a renewed vision, mission and strategy at the 2019 Half-Yearly Management Offsite Meeting. Vision Growing Trust, Connecting People THE EXTERNAL LENS THE INTERNAL LENS Growing Trust Growing Trust Our success is underpinned by our loyal clients and customers who have been banking with us for generations, as well as those who we have onboarded along the way. We have been their trusted advisor and banker through generations, from cradle to IPO, and will continue to do so as we walk hand-in-hand in growing together. There is great value in fostering a work environment of self-empowerment. In this environment, employees are deemed as our most valuable assets, while respect and trust are embodied as a basic principle in accelerating our progress towards becoming a digitally-enabled workforce. This conducive work culture helps to continuously increase cross-collaboration between Line of Business (LOBs) by harnessing the power of one bank across Retail Banking, Business Banking, Wholesale Banking, Investment Banking and Islamic Banking, while also cross-leveraging our strengths to bring the full suite of customer experience to our clients and customers. Connecting People As we advance in an evolving environment where a new norm presides, we believe that connecting people – anytime, anywhere – is key to moving forward. This means providing clients and customers access to our services 24/7 online, at the touch of a fingertip. Our vision moving forward is to also integrate our offerings with strategic partnerships across other industries, thus establishing a single platform where customers can access their everyday needs from a single touchpoint. Connecting People As we move towards future-proofing the Group’s capabilities and empowering our people, a culture of constant communication is key to our long-term success. Given the fast-paced changes faced by our clients and customers, where time equals money, we need to consistently remain in sync across various departments and personnel. In doing so, communication can flow accurately and speedily, enabled by our capabilities to accelerate and elevate touchpoints response internally. AmBank Group has always been regarded as a ‘family’ to its employees. Deeply rooted as a caring employer since our establishment, we will continue to invest in activities, either through Kelab AmBank Group (KAG) and/or groupwide collaboration, that further create a supportive, nurturing and high-performing work environment. Mission To Help Businesses and Individuals Grow and Win Together We recognise that our future success is inextricably linked to the prosperity of our customers, business partners, investors, the economy, and the community as a whole. Our mission to help businesses and individuals across Malaysia grow and win together becomes particularly relevant amidst this challenging time. It is on this premise that the Focus 8 strategy was formed – paving the way for the Group to drive new and sustainable growth, so that we may continue to play an active role in supporting society by contributing to their futurereadiness and resilience in the long run. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  61. 59 Our Strategy FY2021-FY2024 : THE FOCUS 8 STRATEGY As we continue our final push for FY2020, we are excited to unveil AmBank Group’s FY2021-FY2024 Strategy Blueprint: Focus 8. Underlying this new strategy, we have refined our strategic vision to Growing Trust, Connecting People. The essence of this theme is derived from several aspects as we readopt a slightly refined mission (i) To help businesses and individuals grow and win together, while introducing a new element of (ii) Future-proofing and creating new frontiers for the bank. To help businesses and individuals grow and win together… GROWING TRUST, CONNECTING PEOPLE Moving forward, we will focus on future-proofing & creating new frontiers for the bank… Attaining a Return on Equity (ROE) of ≥10% 1 Sharpening Our Segment Play 2 Delivering Holistic Customer Value Proposition Leveraging a Collaborative Culture and Partnerships 3 Pushing Capital-Light Revenue 4 Ramping Up the Next Wave of Digital Initiatives 5 Future-Proofing Our Workforce 6 Integrating Environmental, Social, and Governance (ESG) Considerations into Our Business 7 Exploring Digital Bank 8 The Focus 8 Strategy is made up of eight focus areas: Rethinking Our Strategies and Priorities to Chart the Path Towards Attaining a Return on Equity (ROE) of ≥10% Sharpening Our Segment Play Focusing on Retail, SME, and Islamic Banking and Putting Excellent Customer Service at the Forefront of What We Do With SMEs as the backbone of the economy, we will continue to expand and invest heavily in this segment by reimagining how micro, small and medium enterprises could be better served in the markets. Similarly, we see tremendous opportunity in the Islamic banking space as demand for socially responsible and ethical investments continues to grow. Delivering Holistic Customer Value Propositions Leveraging on Collaborative Culture and Partnerships Established Internally and Externally We will adopt a “customer-first” approach groupwide, focusing on adding value for our customers and delivering a seamless experience that transcends beyond their financial needs. A major focus moving forward is to build digital connections with cross-industry partners and combine our strengths to enhance the customer experience. Ramping Up the Next Wave of Digital Initiatives Leveraging on AmBank Group Digital and Capacity-Building in the Organisation The Group will further develop digital and data analytics capabilities to extend our reach beyond geographical boundaries. We will focus on embedding digitalisation into our corporate DNA, as well as nurturing a strong pool of inhouse digital talents with expertise across analytics, artificial intelligence, and automation. Retaining, Reskilling and Upskilling Talents to Future-Proof Our Workforce Beyond delivering exceptional employee experiences, we seek to prepare our workforce to excel in future roles and opportunities through retaining, reskilling and upskilling initiatives. Integrating Environmental, Social, and Governance Considerations into Our Business Decisions and Direction as Part of Our Pledge Towards Responsible Banking Exploring Digital Bank as a New Option Pushing Capital-Light Revenue Through the Creation of Differentiated Products The Focus 8 strategy will be underpinned by strategic initiatives driven at the Group and divisional levels. With our customer-focused strategy, renewed ambitions and digital strength, AmBank Group is well-placed to move forward with our strategic plans to continue to support our customers, help businesses and individuals prosper, and deliver long-term sustainable success. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  62. 60 Performance Review by Group Chief Financial Officer “FY2020 results reflected the outcomes of our Top 4 Strategy, evidenced by strong revenue growth, improved operational efficiency and solid balance sheet. The Group’s total income crossed the RM4 billion mark to RM4.2 billion.” JAMIE LING Group Chief Financial Officer AmBank Group We continued to make good progress against a challenging operating landscape. Our key performance highlights are summarised below: FY2020 KEY PERFORMANCE HIGHLIGHTS Stepping Up Revenue Growth Good Balance Sheet Growth Total income grew 7.8% to RM4,227.2 million. Our revenue growth was broadbased, with all divisions recording higher revenue year-on-year (YoY). This is a testament to our strategy execution in transforming the bank and attaining abovemarket growth. The Group’s gross loans and financing and deposits from customers expanded by 5.3% and 5.7% respectively, outperforming the industry’s growth for the same period. Our current account and savings account (CASA) balances also increased by 15.9%, driving higher CASA mix at 25.5% (FY2019: 23.3%). Continue to Improve Operational Efficiencies Sound Capital and Liquidity Metrics As we continue to drive operational efficiency and paced our investments, overall expenses were down 1.1% YoY which contributed to delivering a cost-to-income (CTI) ratio of 49.9%, and achieving our FY2020 target. Our Business Efficiency Transformation (BET) programme delivered a gross cost reduction of RM103 million during the year and cumulatively over the last three years delivered a total gross cost savings of RM380 million, above our target of RM300 million. While we are navigating the ongoing economic uncertainties and challenges posed by the COVID-19 pandemic, we have continued to improve the resiliency of our balance sheet. The Group’s Common Equity Tier 1 (CET1) ratio and total capital ratio have strengthened to 12.4% and 15.8% respectively. The Group remains highly liquid, with a liquidity coverage ratio (LCR) of 158.2% and net stable funding ratio (NSFR) of all banking subsidiaries above 100% as at 31 March 2020. With income growth and expense management, we delivered a profit before provision (PBP) of RM2,119.0 million, an increase of 18.3% YoY. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  63. 61 Performance Review by Group Chief Financial Officer Dividends The Group declared a final dividend of 7 .3 sen per share, bringing the total dividend for the year to 13.3 sen and payout ratio of 30%. This year’s payout is a reflection of a more cautious outlook, in light of the economic impact of the COVID-19 pandemic in the near-term. Subsequent Events On 25 March 2020, Bank Negara Malaysia (BNM) announced that with effect from 1 April 2020, banking institutions are required to provide an automatic deferment of all loan/ financing repayments (except for credit card balances) for a period of 6 months. This is one of the measures implemented by BNM to assist individuals, small and medium enterprises (SME) and corporations to manage the impact of the COVID-19 pandemic. The 6-month moratorium granted to eligible borrowers is applicable to performing loans, denominated in Ringgit Malaysia, that have not been in arrears for more than 90 days as at 1 April 2020. The financial impact arising from this moratorium will be a modification to the contractual cash flows of loans, advances and financing of the Group which will result in a recognition of a modification loss to be recognised in the profit and loss in the next financial year. The Group’s current financial year results ended 31 March 2020 is not impacted from the 6-month moratorium as the effective date is after the end of the Group’s reporting period. The Group is currently monitoring and assessing the impact of this modification which is expected to be finalised in the first quarter of the financial year ending 31 March 2021. OUR FINANCIAL AGENDA AND FINANCIAL TARGETS FOR FY2020 Financial Agenda • Revenue Growth – To increase penetration in targeted products and segments, grow CASA, improve cost of funds and net interest margin, and accelerate digital partnerships. • BET300 – To achieve a cost-to-income ratio of 50% or lower by FY2020 and deliver gross cost savings of RM300 million over three years. • Capital Accretive Growth – To strengthen our capital position and deliver sustainable dividend payout. Financial Targets ROE Reported: 7.4% Underlying: 8.1% FY2020 Target ±1 - 50 Dividend Payout % % 45% % - 49.9% ≤5 0 .0% ~8.0 % CTI % 8.5 11 .5 30% 12.4% FY2020 Target 05Leadership 06 Sustainability Report FHC CET 1 07 Additional Information FY2020 Actual INTEGRATED REPORT 2020
  64. 62 Performance Review by Group Chief Financial Officer Strong revenue and PBP out turn Macro provisions of RM167 million taken in Q4FY20 FY2020 Financials Profitability (RM Million) Income 4,227 FY2019: 3,922 8% Good income growth underpinned by net interest income and trading & fee income Expenses 2,108 FY2019: 2,131 1% Continue to optimise operational efficiency PBP 2,119 FY2019: 1,792 18% Impairment/(Recovery) 336 FY2019: (304) >100% PATMI 1,341 FY2019: 1,505 11% 7.4% FY2019: 8.8% >100bps Gross Loans 107.2 FY2019: 101.8 5% Broad-based loans growth, excluding auto loans up 9% Deposits 113.0 FY2019: 106.9 6% Actively managing cost of funds, CASA up 16% FHC CET1* 12.4% FY2019: 11.9% 55bps FHC LCR 158% FY2019: 193% >100bps 13.3 sen FY2019: 20.0 sen 6.7 sen ROE Assets & Liabilities (RM Billion) Capital & Liquidity Dividend per share Positive JAWS of 9%, CTI of 49.9% Credit costs include RM167 million macro provisions taken in March 2020 Underlying net profit up 15% (excluding RM167 million macro provisions and net gains on retail debt sale of RM285 million in Q4FY2019) Underlying ROE 8.1%, underlying ROTE at 9.4% Improved CET1 (regulatory reserve of 1.0% retained) Highly liquid Dividend payout of 30% * After deducting proposed final dividend UNDERLYING NET PROFIT UP 15.4% DRIVEN BY STRONG REVENUE AND PROFIT BEFORE PROVISIONS OUT TURN FY2020 results reflected the outcomes of our Top 4 Strategy, evidenced by strong revenue growth, improved operational efficiency and a solid balance sheet. The Group’s total income crossed the RM4.0 billion mark to RM4.2 billion. Net interest income rose 7.5% YoY to RM2,773.9 million, underpinned by broad-based lending growth of 5.3% and deposit growth of 5.7%. Net interest margin (NIM) improved 5 bps from 1.89% to 1.94%, despite three OPR reductions during the financial year. This was mainly attributed to active liquidity management and pricing discipline on term deposits as we managed cost of funds effectively. The Group was able to mitigate the impact of lower interest rates through investment in fixed income securities. Non-interest income grew by 8.3% YoY to RM1,453.2 million, bolstered by strong fixed income securities trading gains, higher investment banking and fund management fee income. During the year, our Group Treasury and Markets captured the trading opportunities spurred by low interest rates and heightened market volatilities, and deal closures in the second half of 2019 was positive for our investment banking. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group The Group’s expense growth was well-managed, down 1.1% to RM2,108.2 million. This was attributable to the Group’s BET300 efficiency programme and cost discipline, allowing the Group to continue investing in people, infrastructure and digital capabilities. This further improvement in efficiency resulted in a lower CTI ratio of 49.9% and positive JAWS of 9%. As a result of strong revenue growth and improved cost efficiency, the Group’s profit before provision posted a double-digit growth of 18.3% to RM2,119.0 million, our highest level since FY2015. The Group recorded a net impairment charge of RM336.1 million in FY2020, compared to a net recovery of RM303.8 million in FY2019. Included in the net recovery in FY2019 was a gain from the retail NPL sale of RM285.0 million, which did not repeat in this financial year. Given the heightened uncertainties in the economic outlook, the Group took an additional forward-looking provision of RM167.3 million in the final quarter of the year to reflect the future economic uncertainties as additional prudence. Overall, the Group’s net credit cost stood at 30bps. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  65. 63 Performance Review by Group Chief Financial Officer Reported PATMI decreased by 10 .9% to RM1,340.7 million, impacted by the forwardlooking provision. However, underlying PATMI was up 15.4%, after adjusting for the gain on the retail debt sale of RM285.0 million in FY2019 and macro provision of RM167.3 million made this financial year. The Group’s return on equity (ROE) decreased to 7.4% while underlying ROE was 8.1%. DIVERSIFIED BALANCE SHEET GROWTH Our gross loans and financing base expanded 5.3% YoY to RM107.2 billion, with diversified growth in all segments and most products. Excluding auto finance, the Group’s gross loans grew 8.7% in FY2020. Mortgage loans were a key driver of loans growth, increasing RM2.4 billion or 7.0% during the year. In addition, loans in Wholesale Banking grew 6.2%, with Large Corporate segment up 3.7% and Mid-Corporate segments grew 9.5%. Business Banking loans grew strongly at 12.9%, and Retail SME grew by 34.8%. Lending to SME customers accounted for 19.2% of the Group’s gross loans outstanding. During the year, the Group’s deposits from customers grew in line with gross loans and financing, with a loan-to-deposit ratio at 94.9%. Customer deposits increased by 5.7% YoY, with CASA up 15.9%. We improved our CASA mix to 25.5% from 23.3% a year ago, largely driven by enhanced cash management and wealth management solutions. The Group has recorded consistent loans and deposit growth, both growing at compound annual growth rate (CAGR) of 6% between FY2017 and FY2020, surpassing the CAGR growth rates of our peers of 4% on loans and 3% on deposits for the same period. EXERCISING CREDIT VIGILANCE AGAINST WEAKER MACROECONOMIC OUTLOOK As at 31 March 2020, the Group’s gross impaired loan (GIL) ratio was 1.73%, up 14bps from the previous year while loan loss coverage ratio, inclusive of a regulatory reserve of RM387.5 million, stood at 93.4% (FY2019: 114.0%). The Group’s credit portfolio quality remained sound with 87% of total gross loans classified under Stage 1 and 56% with “strong to exceptionally strong” risk grades. The Group continues to closely monitor the impact of the COVID-19 pandemic on our credit portfolios during BNM’s loan moratorium period. Approximately RM65 billion, or 61% of the Group’s total loans in the retail and SME segments, are under BNM’s repayment moratorium until 1 October 2020. Our gross loans and financing expanded 5.3% YoY to RM107.2 billion with diversified growth in all segments and most products. PROSPECTS FOR FY2021 We exited FY2020 with solid fundamentals and have executed well on our Top 4 Strategy. However, the operating environment will be challenging in FY2021 as the impact of COVID-19 and disruptions from the Movement Control Order (MCO) have yet to fully unfold. Responding to the COVID-19 pandemic, our focus in FY2021 entails the following: • • • • Exercise credit vigilance; Proactively supporting our customers; Maintain sound capital and liquidity positions; Continue our cost discipline and prioritise investments against a slower growth prospects; • Supporting our employees and communities. WELL-CAPITALISED AND HIGHLY LIQUID The Group is on a stronger footing to navigate the economic uncertainties and challenges, with our CET1 ratio and total capital ratio at 12.4% (+55bps YoY) and 15.8% (+37bps YoY) respectively. Based on the stress testing scenarios conducted, the Group has sufficient loss absorption capacity to maintain capital ratios above both internal capital targets and regulatory requirements. JAMIE LING Group Chief Financial Officer AmBank Group The Group has maintained sound liquidity ratios, with LCR at 158.2% and NSFR above 100% for all banking entities, all above prudential requirements. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  66. 64 Performance Review GROUP FINANCIAL HIGHLIGHTS OPERATING REVENUE (RM Million) PROFIT ATTRIBUTABLE TO SHAREHOLDERS (RM Million) TOTAL ASSETS (RM Million) 169,203.1 1,505.3 9,324.6 9,119.9 105,950.9 100,544.0 95,377.9 158,793.4 1,302.2 1,340.7 1,324.6 137,881.2 133,764.0 134,767.6 8,576.7 8,416.0 LOANS, ADVANCES AND FINANCING (NET) (RM Million) 86,513.3 1,132.1 89,865.1 8,285.8 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 TOTAL LIABILITIES (RM Million) CUSTOMER DEPOSITS (RM Million) SHAREHOLDERS’ EQUITY (RM Million) 18,580.8 17,691.0 149,643.0 140,103.0 117,644.6 117,614.7 16,027.1 15,168.5 120,221.2 112,966.7 106,916.0 90,257.4 FY2016 FY2017 FY2018 FY2019 FY2020 AMMB HOLDINGS BERHAD 16,515.6 FY2016 FY2017 FY2018 FY2019 FY2020 01 Overview of AmBank Group 93,935.1 95,805.2 FY2016 FY2017 FY2018 FY2019 FY2020 02 Key Messages 03 Key Highlights FY2016 FY2017 FY2018 FY2019 FY2020 04 Management Discussion and Analysis
  67. 65 Performance Review FIVE-YEAR GROUP FINANCIAL SUMMARY FINANCIAL YEAR ENDED 31 MARCH FY2016 FY20173 FY2018 FY2019 FY2020 i . Operating Revenue 8,416.0 8,285.8 8,576.7 9,119.9 9,324.6 Ii. Operating Profit Before Impairment Losses 1,521.5 1,605.1 1,558.4 1,791.5 2,119.0 164.1 173.5 1.1 301.3 iv. Profit Before Taxation and Zakat 1,731.0 1,801.2 1,542.7 2,095.4 1,782.9 v. Profit Attributable to Shareholders 1,302.2 1,324.6 1,132.1 1,505.3 1,340.7 133,764.0 134,767.6 137,881.2 158,793.4 169,203.1 86,513.3 89,865.1 95,377.9 100,544.0 105,950.9 117,644.6 117,614.7 120,221.2 140,103.0 149,643.0 90,257.4 93,935.1 95,805.2 106,916.0 112,966.7 1. REVENUE (RM MILLION) iii. (Allowances)/Writeback of Allowances for Impairment on Loans, Advances and Financing (322.6) 2. BALANCE SHEET (RM MILLION) Assets i. Total Assets5 ii. Loans, Advances and Financing (net) Liabilities and Shareholders’ Equity i. Total Liabilities5 ii. Customer Deposits iii. Paid-Up Share Capital1 iv. Shareholders’ Equity Commitments and Contingencies 3,014.2 5,551.6 5,551.6 5,751.6 5,851.6 15,168.5 16,027.1 16,515.6 17,691.0 18,580.8 125,037.1 134,563.3 143,672.5 131,016.8 133,474.7 43.3 44.1 37.6 50.0 44.6 3. PER SHARE (SEN) i. Basic Net Earnings ii. Fully Diluted Net Earnings iii. Net Assets iv. Single Tier/Gross Dividend 43.3 44.0 37.6 50.0 44.6 503.2 531.7 547.9 586.9 618.0 15.5 17.6 15.0 20.0 13.3 8.8 8.5 7.0 8.8 7.4 4. FINANCIAL RATIOS (%) i. Post-Tax Return on Average Shareholders’ Equity2 1.1 1.1 0.9 1.1 0.9 iii. Loans to Deposits4 96.4 95.3 98.1 91.1 89.8 iv. Cost to Income 58.8 57.4 60.8 54.3 49.9 i. High 6.50 4.99 5.62 4.61 4.55 ii. Low 4.27 3.90 3.88 3.45 2.90 iii. As at 31 March 4.60 4.65 3.89 4.56 3.00 ii. Post-Tax Return on Average Total Assets 5. SHARE PRICE (RM) 1 Paid-up share capital prior to 31 March 2017 is excluding share premium account. Adjusted for non-controlling interests. 3 After adjusting for restatement pursuant to clarification provided in Bank Negara Malaysia circular on Classification and Regulatory treatment for structured products under the Financial Services Act 2013 and Islamic Financial Services Act 2013 that have been applied restrospectively for one financial year. 4 Loans to Deposits is gross loans divided by deposits from customers and financial institutions excluding interbank borrowings. 5 The Group adopted MFRS 16 Leases for the first time since 1 April 2019. In its transition, the Group has elected to apply the simplified transition approach whereby the comparative amounts were not restated with the right-of-use assets in Total assets and lease liabilities in Total liabilities. 2 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  68. 66 Performance Review FINANCIAL INDICATORS RETURN ON EQUITY (%) 8.8 COST-TO-INCOME (%) 8.8 8.5 7.4 58.8 7.0 57.4 60.8 54.3 49.9 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 DIVIDEND PAYOUT (%) 40.0 39.9 FY2018 FY2019 FY2020 CET 1* (%) 40.0 35.9 11.3 11.6 11.9 12.4 11.1 30.0 FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020 * Proforma aggregated for FY2016 and FY2017; Financial Holding Company Basis (FHC) for FY2018 onwards AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  69. 67 Performance Review SIMPLIFIED GROUP STATEMENTS OF FINANCIAL POSITION 5 .9% 9.3% 0.3% 2.0% 4.8% 4.6% 21.9% 25.3% FY2020 FY2019 62.6% 63.3% Cash and Balances with Banks and Securities Purchased under Resale Agreements Investments in Securities Loans, Advances and Financing Total Assets 100% 7.5% Statutory Deposits with BNM Other Assets 0.6% 3.5% 7.5% 0.6% 5.0% 3.6% 0.1% 2.2% 4.5% 0.2% 2.7% 4.5% 5.2% FY2019 67.3% 8.2% Total Liabilities and Equity 100% FY2020 9.7% 0.2% 66.8% 0.1% Deposits from Customers Investment Accounts of Customers Term Funding and Other Borrowed Funds Reserves 05Leadership Debt Capital Deposits and Placements of Banks and Other Financial Institutions and Securities Sold under Repurchase Agreements Redeemable Cumulative Convertible Preference Share Other Liabilities Share Capital Non-Controlling Interests 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  70. 68 Performance Review SEGMENTAL ANALYSIS AmBank Group ’s businesses are grouped in the following business activities: Retail Banking, Business Banking, Wholesale Banking, Investment Banking, Fund Management, Insurance and Group Funding and Others. The segment performance is measured on income, expenses and profit basis. These are shown after allocation of certain centralised cost, funding income and expenses directly associated with each segment. Transactions between segments are recorded within the segment as if they third party transactions and are eliminated on consolidation under Group Funding and Others. SEGMENT PAT (RM Million) 1,603.1 1,452.8 Wholesale Banking 647.7 568.5 480.7 315.2 291.3 Retail Banking Business Banking 210.3 218.2 135.2 126.0 125.6 Corporate Banking 31.4 Group Treasury & Markets 61.5 Investment Banking FY2019 29.5 36.8 Fund Management FY2020 (145.5) (76.5) Insurance Total Group Funding & Others RETAIL BANKING WHOLESALE BANKING Retail Banking continues to focus on building mass affluent, affluent and small business customers. Retail Banking offers products and financial solutions which includes auto finance, mortgages, personal loans, credit cards, small business loans, priority banking services, wealth management, remittance services and deposits. Wholesale Banking comprises of Corporate Banking and Group Treasury & Markets. Corporate Banking offers a full range of products and services of corporate lending, trade finance, offshore banking and cash management solutions to wholesale banking clients. Group Treasury & Markets provides full range of products and services relating to treasury activities, including foreign exchange, derivatives, fixed income and structured warrants. Total income of RM1,466.3 million, up 1.2% year-on-year (YoY). NII rose 2.8%, offset by lower NoII (-6.1%) mainly attributable to lower Cards merchant fees. Retail Banking recorded a net impairment charge of RM187.1 million (FY2019: Net recoveries of RM139.0 million). PAT decreased 44.6% to RM315.2 million, mainly due to non-repeat of RM285.0 million gain from retail debt sale. Gross loans grew 3.6% YoY from mortgages, retail SME and cards. Customer deposits decreased by 11.8%, largely from fixed deposits; CASA balances were up by 13.6%. Income stepped up by 14.9% YoY to RM1,237.0 million. NII increased by 10.8% on the back of higher loans base and treasury assets as well as improved margin. NoII grew 25.2% underpinned by robust Markets trading gain. Profit after tax (PAT) of RM772.0 million was marginally lower by 1.4% YoY, largely attributed to higher operating expenses and lower net recoveries. Gross loans grew 6.2% YoY to RM35.6 billion whilst customer deposits grew 22.5% YoY to RM60.0 billion. BUSINESS BANKING INVESTMENT BANKING Business Banking focuses on the small and medium sized enterprises segment, which comprises of Enterprise Banking and Commercial Banking. Solutions offered to Enterprise Banking customers encompass Capital Expenditure (CAPEX) financing, Working Capital financing and Cash Management, and while Commercial Banking offers the same suite of products, it also provides more sophisticated structures such as Contract Financing, Development Loans, and Project Financing. Investment Banking offers investment banking solutions and services, encompassing capital markets (primary) activities, broking, private banking services, corporate advisory and fund raising services (equity and debt capital). PAT increased by RM30.1 million attributed to higher net income from Debt Capital Market and Private Banking, partly offset by higher other operating expenses and lower writeback of impairment. Income grew 13.4% to RM366.3 million. NII increased 13.7%, in line with gross loans. NoII rose by 12.6% from higher loans related fee income, bancassurance commission and foreign exchange sales. Net impairment charge stood at RM57.0 million, as compared to RM30.7 million a year ago. PAT was flat at RM125.6 million, impacted by higher impairment. Gross loans increased 12.9% to RM11.2 billion. Customer deposits also recorded a double digit growth of 23.3% YoY to RM7.2 billion. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  71. 69 Performance Review SEGMENTAL ANALYSIS FUND MANAGEMENT Fund Management comprises of the asset and fund management services , offering a variety of investment solutions for various asset classes to retail, corporate and institutional clients. RM228.1 million. The Life Insurance and Family Takaful businesses recorded a loss after tax of RM9.9 million compared to a PAT of RM12.3 million last year mainly due to lower investment income, higher claims and reserving. The Group has equity accounted the results of the Life insurance and Family Takaful business to reflect the Group’s effective equity interests in the joint ventures. PAT increased by 24.6% from higher management fee, offset by higher other operating expenses. GROUP FUNDING AND OTHERS INSURANCE Group Funding and Others comprises of activities to maintain the liquidity of the Group as well as support operations of its main business units and non-core operations of the Group. Insurance segment offers a broad range of general insurance products, namely motor, personal accident, property and household. It also offers life insurance and Takaful products namely wealth protection/savings, health and medical protection and family Takaful solutions provided through our joint venture operations. General Insurance income was relatively flat YoY at RM594.1 million as higher net earned premium and investment income were offset by increase in claims and commission. Operating expenses fell 3.2% to RM338.1 million. Profit after tax increased by 15.2% to PAT closed at a loss of RM76.5 million, from a loss of RM145.5 million a year ago. This is attributed to higher income, driven by the lower cost of funding from a net repayment medium term funding, as well as lower operating expenses. Profit before provision for this segment was a loss of RM2.3 million (FY2019: loss of RM127.0 million). The forward looking provision of RM167.3 million taken as additional prudence was recorded in this segment as a reflection of the economic uncertainties arising from the COVID-19 pandemic. GROSS LOANS (RM Million) 107,218.6 101,844.6 56,864.6 58,892.3 Wholesale Banking 33,518.6 35,596.3 9,964.0 11,247.7 Retail Banking Business Banking 1,591.8 Corporate Banking 1,582.7 Investment Banking FY2019 1.0 0.8 Insurance (95.4) (101.2) Group Funding & Others Total FY2020 DEPOSITS (RM Million) 114,603.7 Wholesale Banking 51,640.5 45,590.0 45,695.0 5,832.4 Retail Banking 7,184.7 Business Banking 06 Sustainability Report 57,174.7 11,538.3 13,273.3 743.8 Corporate Banking Group Treasury & Markets FY2019 05Leadership 122,988.6 07 Additional Information 832.9 Investment Banking (741.3) (1,172.0) Group Funding & Others Total FY2020 INTEGRATED REPORT 2020
  72. 70 Performance Review GROUP QUARTERLY FINANCIAL PERFORMANCE FY2020 ALL IN RM MILLION UNLESS STATED OTHERWISE Q1 Q2 Q3 Q4 2 ,390.4 2,349.3 2,370.1 2,214.8 Net Interest Income 468.3 472.9 504.9 492.5 Net Income from Islamic Banking 230.0 246.1 213.4 330.1 Net Income from Insurance Business 121.2 112.5 105.1 101.9 Other Operating Income 232.4 245.4 276.0 Operating Revenue 12.8 Share in Results of Associates and Joint Ventures (8.0) 77.6 5.2 (13.1) Other Operating Expenses (528.6) (526.2) (552.3) (501.1) Impairment and Provisions 32.4 (109.1) (56.9) (202.5) Profit Before Taxation and Zakat 568.5 433.6 495.4 285.4 Profit Attributable to Equity Holders of the Company 391.5 319.6 382.1 247.5 Earnings Per Share (Sen) 13.0 10.6 12.7 8.3 Dividend Per Share (Sen) – 6.0 – 7.3 FY2019 ALL IN RM MILLION UNLESS STATED OTHERWISE Operating Revenue Q1 Q2 Q3 Q4 2,171.3 2,314.0 2,300.6 2,334.0 Net Interest Income 431.4 431.3 438.8 422.8 Net Income from Islamic Banking 236.6 235.6 242.1 237.6 Net Income from Insurance Business 155.1 107.7 109.8 79.9 Other Operating Income 174.7 225.8 160.1 212.6 15.9 6.7 (3.8) 1.6 (512.9) (505.5) (512.5) (599.9) Share in Results of Associates and Joint Ventures Other Operating Expenses Impairment and Provisions (7.0) (10.9) 51.3 270.4 Profit Before Taxation and Zakat 493.8 490.7 485.8 625.0 Profit Attributable to Equity Holders of the Company 347.6 348.1 349.9 459.7 11.5 11.6 11.6 15.3 – 5.0 – 15.0 Earnings Per Share (sen) Dividend Per Share AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  73. 71 Performance Review KEY INTEREST BEARING ASSETS AND LIABILITIES FY2019 FY2020 Average Balance Average Rate Average Balance Average Rate % Interest Income/ Expense RM Million RM Million % Interest Income/ Expense RM Million RM Million 5,272 3.30% 174 5,239 2.37% 124 Financial Assets at Fair Value Through Profit or Loss 15,461 3.83% 592 14,295 3.55% 507 Financial Investments at Fair Value Through Other Comprehensive Income 10,377 4.75% 493 16,903 4.01% 678 4,912 4.39% 216 5,034 4.34% 218 99,215 5.40% 5,358 102,598 5.20% 5,339 101,786 3.28% 3,340 104,346 3.03% 3,159 Deposits and Placements of Banks and Other Financial Institutions 7,009 3.37% 236 9,513 2.83% 270 Recourse Obligation on Loans and Financing Sold to Cagamas Berhad 4,469 4.27% 191 4,548 4.00% 182 10,507 4.83% 508 12,349 4.01% 495 INTEREST EARNING ASSETS Short-Term Funds, Deposits and Placements with Banks and Other Financial Institutions Financial Investments at Amortised Cost Loans, Advances and Financing INTEREST BEARING LIABILITIES Deposits from Customers1 Term Funding, Debt Capital and Other Borrowed Funds 1 Deposits from customers includes Investment accounts of customers 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  74. 72 Performance Review STATEMENT OF VALUE ADDED FY2019 RM Million VALUE ADDED FY2020 RM Million Net Interest Income Net Income from Islamic Banking Income from Insurance Business Other Operating Income Share in Results of Associates and Joint Ventures Insurance Claims and Commissions Operating Expenses excluding Personnel and Depreciation and Amortisation Writeback of Allowance /(Allowance) for Impairment on Loans, Advances and Financing Other Impairment and Provisions 1,724.3 951.9 1,374.8 773.2 20.4 (922.3) 1,938.6 1,019.6 1,428.7 831.4 (3.1) (988.0) (701.2) (614.2) 301.3 2.5 (322.6) (13.5) Value Added Available for Distribution 3,524.9 3,276.9 FY2019 RM Million FY2020 RM Million DISTRIBUTION OF VALUE ADDED 25.6% 35.8% FY2019 4.8% 2.8% 17.0% 13.9% 0.1% 28.7% 37.9% To Employees: Personnel Expenses 1,260.5 1,241.0 489.9 327.0 2.4 3.0 To Providers of Capital: Dividends to Shareholders Non-Controlling Interests 602.8 97.8 400.9 112.1 To Reinvest to the Group: Depreciation and Amortisation Retained Profits 169.1 902.4 253.0 939.9 3,524.9 3,276.9 To the Government: Taxation To State Collection Centres and Community: Zakat FY2020 7.7% 3.4% 10.0% 12.2% 0.1% Personnel Expenses Zakat Taxation Dividends to Shareholders Non-Controlling Interests Retained Profits Depreciation and Amortisation AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  75. 73 Performance Review CAPITAL MANAGEMENT AmBank Group ’s capital management approach remains focused on maintaining a healthy capital position that supports the Group’s strategic objectives and risk appetite. This is achieved through building an efficient capital structure that optimises return on capital and provides sustainable returns to shareholders. EFFECTIVE CAPITAL MANAGEMENT IS ESSENTIAL TO THE SUSTAINABILITY OF THE GROUP AND INVOLVES: Meeting Regulatory Capital Requirements at all Times Supporting the Group’s Risk Appetite, Business Growth and Strategic Objectives Maintaining Good Credit Ratings from Local and International Rating Agencies Annually, the Group prepared the annual capital plan that covers a horizon of three years which establishes: (a) Internal Capital Targets for the Group and entities that provide an adequate buffer above the minimum regulatory requirements. (b) Capital projections to forecast capital demand for regulatory requirements that could support the Group’s risk appetite, business growth and strategic objectives. The annual capital plan is approved by the Board of Directors for implementation at the beginning of the financial year, followed by quarterly updates on the capital management to inform the Board of Directors on the latest progress of capital initiatives planned. Key Initiatives The Group manages its capital position proactively by building sufficient capital buffers in view of forthcoming capital requirements. Tools that are employed to achieve this include: 1 Optimisation of Cost of Debt Capital via Redemption of Non-Basel III Compliant Capital Instruments 2 Establishment of Basel III Compliant AT1 Programme and On-Going Issuance of Tier 2 Sub-Debt Instruments 3 Risk-Weighted Assets Optimisation 4 Group-Wide Stress Testing and Impact Assessment During the financial year, the Group had redeemed a total of RM485 million capital instruments as outlined below: (a) RM300 Million Innovative Tier 1 Capital Securities Redeemed on 19 August 2019; (b) RM185 Million Innovative Tier 1 Capital Securities Redeemed on 30 September 2019. DIVIDENDS FOR 2020 For the financial year ended 31 March 2020 (FY2020), a final dividend of 7.3 sen on 3,014,184,844 ordinary shares was approved by the Board of Directors on 6 May 2020 and Bank Negara Malaysia on 26 June 2020. With the interim dividend of 6 sen per share paid on 27 December 2019, the total dividends for FY2020 amounted to 13.3 sen per share, leading to a full year dividend payout ratio of 30.0%. 40.0% 39.9% 40.0% 35.9% 17.6 20.0 15.5 30.0% 15.0 13.3 FY2016 FY2017 FY2018 Net Dividend Declared (Sen) 05Leadership 06 Sustainability Report 07 Additional Information FY2019 FY2020 Payout Ratio INTEGRATED REPORT 2020
  76. 74 Performance Review CREDIT RATING From a credit rating perspective , we believe in providing our stakeholders with an independent view of our banking subsidiaries as well as that of the Company. As such, we continue to maintain credit ratings with Moody’s Investors Service, S&P Global Ratings and RAM Rating Services Berhad. Rating Agency Rating Classification Rating Accorded Long-Term Corporate Credit Rating AA2 Short-Term Corporate Credit Rating P1 Outlook Stable Long-Term Bank Deposits (Foreign) Rating A3 Short-Term Bank Deposits (Foreign) Rating P-2 Outlook Stable Long-Term Foreign Currency Rating BBB+ Short-Term Foreign Currency Rating A-2 Outlook Stable^ Long-Term Financial Institution Rating AA2 Short-Term Financial Institution Rating P1 Outlook Stable Long-Term Financial Institution Rating AA2 Short-Term Financial Institution Rating P1 Outlook Stable Long-Term Financial Institution Rating AA2 Short-Term Financial Institution Rating P1 Outlook Stable The Company RAM Rating Services Berhad AmBank (M) Berhad Moody’s Investors Service S&P Global Ratings RAM Rating Services Berhad AmBank Islamic Berhad RAM Rating Services Berhad AmInvestment Bank Berhad RAM Rating Services Berhad ^ S&P affirmed AmBank (M) Berhad’s rating at BBB+, A-2 but revised the outlook from Stable to Negative on 29 June 2020. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  77. 75 Performance Review BALANCE SHEET MANAGEMENT Balance sheet management involves the management of AmBank Group ’s structural funding and liquidity. It also maintains the Funds Transfer Pricing (FTP) framework which is governed by the Group Assets and Liabilities Committee (GALCO). Structural funding and liquidity is managed by targeting a diversified funding base and avoiding concentrations by depositor and investor type, product, maturity or currency and implementing wholesale funding diversification and maturity concentration limits. In setting its funding diversification policy, the Group will take into consideration the cost/ benefit trade-off to ensure optimum level of funding cost. To sustain a diversified funding profile and monitor the liquidity risk of the Group, we are guided by the Basel III liquidity framework, namely the: (1) Liquidity Coverage Ratio (LCR), with a primary focus of ensuring a sufficient buffer of liquid assets that could be easily converted into cash to meet the liquidity needs for up to 30 calendar days; and (2) The FTP framework promotes a Group-wide allocation of funding costs to the business units by taking into account the interest rate and liquidity positions of the Group. The FTP mechanism is refined according to market conditions and relevant strategies approved by the management and it is derived to reflect regulatory principles. To fund our businesses, a liquidity premium is charged to the business units based on the contractual tenor of the transactions. Business units that generate long-term, stable funding are incentivised in the form of liquidity credit. Presently the key funding growth agenda is as follows: (1) To strengthen the deposit franchise, by focusing on lower cost current accounts and savings accounts (CASA) and gathering term deposits to build sufficient base to fund the loans growth; and (2) To diversify the sources of funding to build a more sustainable base and reduce reliance on non-core deposits. Net Stable Funding Ratio (NSFR), outlining the requirements on maintaining stable funding profile vis-à-vis the composition of assets and off-balance sheet commitments in order to reduce likelihood of disruption to liquidity position. FUNDING STRUCTURE FY2020 Loans are the largest component of the Group’s assets and are generally funded by core customer deposits. Our core customer deposits increased by RM6.1 billion from RM106.9 billion in FY2019 to RM113.0 billion in FY2020, an 5.7% growth. We will continue to prioritise growth in core customer deposits, which are a stable and resilient source of funding. We have outlined plans to lower the cost of funding by growing CASA composition, tapping on alternative funding sources and optimising a stable funding mix. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  78. 76 Performance Review FINANCIAL CALENDAR 2019 2020 22 August 2019 Announcement of Unaudited Consolidated Results for the Financial First Quarter Ended 30 June 2019 27 February 2020 Announcement of Unaudited Consolidated Results for the Financial Third Quarter Ended 31 December 2019 5 July 2019 Payment of Final Single-Tier Dividend of 15 .0 sen per Share for the Financial Year Ended 31 March 2019 29 June 2020 Announcement of Audited Consolidated Results for the Financial Year Ended 31 March 2020 29 November 2019 Announcement of Unaudited Consolidated Results for the Financial Half Year Ended 30 September 2019 27 July 2020 Notice of 29th Annual General Meeting 27 August 2020 29th Annual General Meeting 27 December 2019 Payment of Interim Single Tier Dividend of 6.0 sen per Share for the Financial Year Ended 31 March 2020 AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  79. 77 Performance Review INVESTOR RELATIONS The investor relations landscape has evolved over the years and now forms an integral part of AmBank Group ’s corporate governance initiatives. At AmBank Group, we uphold regular and proactive communication with our shareholders and the wider investment community including investors, fund managers, equity and fixed-income analysts and credit rating agencies. Shareholders engagement has taken a centre stage in recent years as shareholders are exerting more influence than ever on how Boards and Management teams operate. Additionally, the investment community is increasingly emphasising on long-term sustainability and value creation of the investee companies, on top of delivering satisfactory financial performance. We believe that effective shareholders engagement and investor relations can lead to improved strategy and policies formulation, more sustainable business practices, and promote greater transparency and accountability. Our communications with the investment community is governed by our investor relations policy to ensure consistency, clarity, fairness and timeliness of information disseminated. We subscribe to the philosophy that good investor relations practices strengthen investors’ confidence in us and allows them to make informed investment decisions. We have a dedicated Investor Relations team (IR team) to support our Group Chief Executive Officer and Group Chief Financial Officer in their investor engagement activities, focusing on achieving effective two-way communications and fostering relationships with the investment community in order to better understand their expectations and requirements. SHARE PRICE AND VOLUME (1 April 2019 – 29 May 2020) Last closing price Highest closing price Lowest closing price Average daily volume RM3.17 RM4.55 RM2.90 2,802,391 17000000 6 15000000 5 13000000 11000000 4 9000000 7000000 3 5000000 3000000 2 1000000 1 Apr-19 May-19 Jun-19 Jul-19 Aug-19 Sep-19 Oct-19 Volume Nov-19 Dec-19 Jan-20 Feb-20 Mar-20 Apr-20 May-20 0 Share Price CORPORATE WEBSITE The IR section under AmBank Group’s corporate website is updated regularly with corporate governance and investor-related information such as corporate profile, Board of Directors, annual reports, quarterly financial results, investor presentations, news releases, credit ratings, notices and minutes of AGM and EGM, etc. as well as our investor relations calendar. Investors and stakeholders can also reach out to the AmBank Group IR team via email at ir@ambankgroup.com should they require further information or assistance on investor-related matters. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  80. 78 Business Review Wholesale Banking “Wholesale Banking continues to deliver strong performance with an income growth of 15% year-onyear (YoY). Through efficient and effective capital management, we have managed to enhance our return on capital employed (ROCE) to a stellar 15%. We continue to focus on customer experience by developing bespoke Cash Management solutions for our clients. As a result, our Current Account Savings Account (CASA) base has recorded a double-digit increase of 14% YoY. In addition, despite the challenging landscape, Group Treasury and Markets (GTM) has managed to deliver impressive results with higher growth in investment, treasury solutions and trading income.” RAJA TEH MAIMUNAH RAJA ABDUL AZIZ Managing Director, Wholesale Banking AmBank Group ABOUT US AmBank Group’s Wholesale Banking team comprises of three main divisions: Corporate Banking, Transaction Banking and Group Treasury and Markets (GTM). Our client coverage teams manage client relationships across mid-sized and large corporations from a wide range of economic sectors and industries. Coupled with our business solutions teams, we are able to provide clients with an extensive repertoire to help meet their diverse financial services needs, encompassing cash management, trade solutions, financing, foreign exchange (FX), remittances, investments, treasury, debt and equity capital markets solutions, amongst others. AMMB HOLDINGS BERHAD Corporate Banking Offers a full range of products and services of corporate lending, trade finance, offshore banking and cash management solutions to wholesale banking clients. Wholesale Banking 01 Overview of AmBank Group Transaction Banking Delivers cash management solutions, trade products and remittances to corporate clients. Group Treasury and Markets (GTM) Manages liquidity for the banking group, as well as offers financial markets solutions to a broad range of clients across all asset class. The sales and trading activities cover fixed income, interest rates, foreign exchange, money market, equity, commodities and derivatives. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  81. 79 Business Review – Wholesale Banking OUR PERFORMANCE Wholesale Banking registered an income of RM1,237 million, up 15% YoY and contributing to circa 29% of the total Group’s revenue. Net interest income (NII) grew 11% YoY, underpinned by higher loan base and treasury assets with improved margin. Non-interest income (NOII) growth of 25% YoY was mainly boosted by robust trading and investment income from GTM. Transaction Banking remains focused on building operating accounts via cash management solutions to secure sticky CASA and trade assets. As a result, gross loans increased by 6.0% YoY while deposits experienced a double-digit growth of 22% YoY. GTM delivered another year of strong performance with an income growth of 81% YoY, remaining undeterred by the volatile market environment due to tight risk management and the precise execution of their strategy. Wholesale Banking contributed to 58% of total Group PATMI. Total Income Net Interest Income (NII) Non-Interest Income (NOII) Cost-to-Income Ratio (CTI) Million in FY2020 Million in FY2020 Million in FY2020 in FY2020 RM1,237.0 RM849.6 RM1,076.2 Million in FY2019 RM766.9 Million in FY2019 Profit After Tax (PAT) (RM Million) 782.9 RM387.4 24.5% RM309.3 Million in FY2019 Gross Loans (RM Billion) 26.3% in FY2019 Deposits From Customers (RM Billion) 60.0 772.0 33.5 35.6 FY2020 49.0 FY2020 FY2019 FY2020 FY2019 Wholesale Banking Wholesale Banking FY2019 Wholesale Banking AWARDS & RECOGNITION ETF Awards 2019 The Highest Traded Volume from Bursa by the ETF Awards 2019 Alpha South-East Asia Awards 2019 i. Best FX Bank for Corporates and Financial Institutions (8th Consecutive Year) ii. Best FX Bank for Structured Products: Commodities, Credit, Equity, FX and Multi-Assets for FX and Treasury Segment Malaysian e-Payment Excellence Award (MEEA) 2019 Outstanding Contributions to JomPAY Wells Fargo & Company Wells Fargo Operational Excellence Award 2019 State Government of Selangor Appreciation Award for Driving the Cashless Economy Agenda & Developing a Digital Ecosystem in Selangor 2019 Sabah Credit Corporation Strategic Partner Award in Sabah Pay 2020 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  82. 80 Business Review – Wholesale Banking KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes LUNO • Appointed as the primary banker for LUNO, the first regulatory-approved cryptocurrency exchange in Malaysia. • Customer funds for LUNO are maintained in an AmBank Trust Account as per Securities Commission (SC) requirements. • Invested in developing infrastructure according to regulatory requirements that allow for transaction monitoring and customised reconciliation. This facilitates the seamless operations of the LUNO exchange. • LUNO customers are able to seamlessly top up their LUNO wallet and withdraw funds through online or mobile banking. Rakuten Trade • The first bank to offer a B2B DuitNow Application Programming Interface (API) solution. • Partnered with Rakuten Trade, Malaysia’s first full-fledged online equity broker, to enable the online acquisition and onboarding of new customers. • Seamless customer experience for the existing customer acquisition process. • Delivered a bespoke solution by offering connectivity directly to PayNet via AmBank’s API to provide real-time customer verification as part of Rakuten Trade’s customer onboarding process. Hengyuan Refining Company Bhd • Hengyuan Refining Company Berhad (HRC), formerly known as Shell Refining Company (Federation of Malaysia) Berhad, one of the oldest refinery in Malaysia. • Enable HRC to monetise its receivable to improve its liquidity position. • Offered Supply Chain Financing on Receivables Purchase, in which the Bank was able to assist HRC to discount its receivables on a limited recourse basis. Bespoke Financing Solutions • Provided comprehensive financing solutions to corporate clients, including debt financing and syndicated loans. • RM1.2 Billion Syndicated Commodity Murabahah Term Financing-i for Serba Dinamik Holdings Berhad. • RM620.0 Million Syndicated Term Financing-i for TSSA Harta Sdn Bhd. • RM10.0 Billion Sukuk Wakalah Issuance for MBSB Bank Berhad. • RM1.5 Billion Syndicated Sukuk Murabahah Programme for Tanjung Pinang Development Sdn Bhd. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  83. 81 Business Review – Wholesale Banking CHALLENGES & RISKS Challenges/Risks Mitigation Strategies Results Escalating Trade Tensions The US-China trade war threatens industry and loan growth, affecting our financial performance. • Focus on improving operating costs and growing our corporate loans. • Higher number of corporate loans compared to the previous corresponding period. Global Health Crisis The COVID-19 pandemic disrupts the cash flow of corporate borrowers, impacting our loan growth, provisions, credit quality and profitability. • Regularly communicate with customers to better understand their financing needs. • Effectively managed loan deferments to ease customers’ financial distress. Market Volatility Uncertainties in the global and domestic market may lead to financial costs and losses. • Collaborate with new product partners to deliver cross-cutting value propositions to customers. • Improved revenue performance YoY. PROSPECTS & OUTLOOK In the upcoming financial year, the financial market will have to navigate the economic challenges brought by existing challenges, such as trade war and political changes, as well as the unprecedented economic impact of COVID-19. Customers are expected to face a disruption in cash flow due to slow business demand, thus impacting growth and asset quality. To ease the financial burden of our customers, Wholesale Banking will review the Restructured & Rescheduled (R&R) loans of borrowers, extending beyond the six-month moratorium period. Over the next two years, Wholesale Banking will work to mitigate the financial impact of COVID-19 by focusing on key areas of growth. We will prioritise on further developing our FX franchise by leveraging the Group’s coverage and distribution footprint, whilst enhancing our cash management capabilities through digital collection and payment solutions. We will also recalibrate our assets by focusing on ROCE as well as provide infrastructure support to e-money players. Furthermore, we will continue to refine our suite of products and services, both conventional and Shariah, to meet the needs of our increasingly sophisticated clientele amidst the evolving market. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  84. 82 Business Review – AmInvestment Bank AmInvestment Bank “AmInvestment Bank’s FY2020 priorities were to contribute to the Group’s overall Top 4 Strategy, in which we continued to excel in areas such as Corporate Finance and Capital Markets whilst showing marked improvements in Fund Management and Private Banking. Our licensed professionals have decades of investment banking experience, and are committed to giving our clients the best possible advice and the highest standards of deal execution. We believe that providing such valueadded services will enable us to build a sustainable business, with repeat mandates from discerning clients.” SEOHAN SOO Chief Executive Officer* AmInvestment Bank Berhad ABOUT US AmInvestment Bank offers the full range of integrated solutions and services, encompassing corporate finance and M&A advisory, equity capital markets, debt and Sukuk capital markets, as well as fund management, private banking and stockbroking services. The services provided cover both conventional and Islamic financing. Over the years, AmInvestment Bank has achieved a solid, award-winning track record in the debt, equity and Islamic capital markets sectors. Capital Markets Group (CMG) Provides innovative and customised debt and capital financing solutions through proven capabilities in fixed income, derivatives, credit solutions, and advisory services – covering both conventional and Islamic financing – that meet and exceed expectations of our clients. Corporate Finance (CF) Delivers an extensive range of corporate and advisory services comprising mergers and acquisitions (M&As), take-overs, restructuring, initial public offerings (IPO), issuance of equity and equity-linked instruments, valuations and independent advisory services. Equity Capital Markets (ECM) AmInvestment Bank Leverages on AmInvestment Bank’s established distribution network and close relationships with fund managers, retail investors and research analysts; providing timely market intelligence in the origination of primary market transactions and the structuring and managing of the marketing and distribution of both primary and secondary equity offerings. Equity Markets (EM) Acts as the stockbroking arm of the Group. Products and services offered include share trading, securities borrowing and lending, share margin financing and foreign investment services that cater to both institutional and retail clients. Also, the AmEquities trading portal and application offers clients online trading capabilities. Fund Management (AmInvest) Manages unit trust funds, exchange-traded funds, wholesale funds, institutional and corporate mandates, private retirement and pension funds; specialising in active Asian bonds. Our expertise encompasses both conventional and Shariah-Compliant funds. Private Banking (AmPrivate) Provides high net-worth clients with investment solutions, both discretionary and non-discretionary, to fit their risk profile (both in Malaysian Ringgit and foreign currencies). * Resigned effective 1 July 2020 AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  85. 83 Business Review – AmInvestment Bank OUR PERFORMANCE Overall, AmInvestment Bank’s profit after tax (PAT) increased by RM37.4 million to RM98.3 million. The growth is mainly attributed to a higher net income from sizeable deals, which more than offset the increase in operating expenses and a lower write-back of impairment. For CMG, with over 15 years in the Top 3 of Bloomberg’s Malaysia Bonds League Table, this financial year was no different. CMG ended FY2020 in the Top 3, beating other banking group peers with much larger balance sheets. This enviable track record is down to close collaboration with our client coverage colleagues, deep-seated relationships with clients, and an unwavering commitment to providing innovative market-driven solutions. The alignment of CF’s strategy with Wholesale Banking Coverage (WBC) and Business Banking (BB) helped drive strategic dialogue with the bank’s corporate and SME clients. Close collaboration between CF and WBC & BB enabled the team to deliver high-quality advice and win advisory mandates from our clients. ECM contributed to AmInvestment Bank’s growth through equity fundraising activities by primarily focusing on mid-cap sized companies listed on Bursa Malaysia. It was another milestone year as ECM led Bloomberg’s Primary Placement League Table 2019 by successfully raising more than RM700 million. Further, in September 2019, ECM (as Principal Advisor and Sole Placement Agent) launched and executed a primary placement via Accelerated Book-Building for and on behalf of Guan Chong Berhad (GCB), raising just under RM100 million. The deal won The Edge Malaysia’s Best Share Placement in 2019 as ECM helped change the market’s perception of GCB as a traditional commodity player, achieved the targeted priceearnings ratio, and received an overwhelming response from investors. FY2020 was a challenging year for EM, with lower total traded value on Bursa Malaysia during the period under review. Foreign investors were net sellers of Malaysian equities, which contributed to the overall decline in the FBM KLCI Index. However, we are seeing a revival of interest amongst retail investors and this bodes well for the Malaysian equities market. For Fund Management, our engine of growth has been our ability to deepen our institutional and retail channel relationships, improving our position in terms of inflows from investors in both segments. Meanwhile, our investment team continuously strive to maintain top-tier fund performance across all asset classes. As such, AmInvest achieved another record in terms of assets under management (AUM) as we closed the year with a fund size of RM42.1 billion, up 4.0% from a year ago. Our total AUM has been growing steadily and consistently at a Cumulative Annualised Growth Rate (CAGR) of 4.0% over the past three years. Furthermore, the AUM of our exchange-traded funds (ETFs) grew 5.2% over the year to RM1.6 billion, dominating the market with a market share of 78.5% and making AmInvest the largest ETF provider in the country. We also achieved growth in our unit trust market share, which rose from 8.2% to 8.4%. Finally, AmPrivate’s Revenue grew 48.7% YoY with improved performance in both discretionary and non-discretionary mandates. Additionally, AmPrivate’s PAT significantly increased by >100% from higher management fees. Our discretionary mandate portfolio out-performed the MSCI Asia Ex-Japan index, delivering a 20% return amidst challenging global environments during the calendar period. Total Income RM305.4 Million in FY2020 RM242.4 Million in FY2019 Total Expenses RM186.7 Million in FY2020 Cost-to-Income Ratio (CTI) 61.1% in FY2020 RM173.8 Million in FY2019 71.7% in FY2019 PAT (RM Million) Gross Loans (RM Million) 1,591.8 98.3 Assets Under Management (AUM) (RM Billion) 1,582.7 48.6 50.0 60.9 FY2020 FY2020 FY2020 FY2019 FY2019 FY2019 Investment Banking 05Leadership 06 Sustainability Report Investment Banking 07 Additional Information Investment Banking INTEGRATED REPORT 2020
  86. 84 Business Review – AmInvestment Bank AWARDS & RECOGNITION AmInvestment Bank has garnered more than 30 awards in 2019 alone, including the following: Capital Markets Group • Alpha South-East Asia Awards 2019 – Best Equity Deal and IPO in Malaysia 2019 for Leong Hup International Berhad (RM1.19 Billion IPO) • The Asset Triple A Islamic Finance Awards 2019 – Best Islamic Loan Adviser – Malaysia (2nd Consecutive Year) • The Asset Triple A Asia Infrastructure Awards 2019 – Project Finance House of the Year – Malaysia (5th Consecutive Year) • RAM League Awards 2019 – Lead Manager Award 2018 by Number of Issues (Joint 2nd Place) – Lead Manager Award (Sukuk) 2018 by Number of Issues (Joint 2nd Place) • Bloomberg 2019 – Ranked No. 1 in Primary Placement League Table with 29.8% Market Share • Best Small to Mid-Cap Corporate Finance House in Malaysia by Alpha Southeast Asia Best Financial Institutions Awards 2020 Fund Management (AmInvest) • EPF External Fund Managers Award 2019 – Best Global Sukuk Fund Manager 2019 • Refinitiv Lipper Fund Awards 2020 Winner, Malaysia – Best Bond Group, Malaysia Pension • Asia Asset Management, 2020 Best of the Best Awards – Best Pension Fund Manager, Malaysia (2nd Consecutive Year) Corporate Finance (CF) and Equity Capital Markets (ECM) • The Edge Malaysia Awards 2019 – Best Share Placement 2019 for Guan Chong Berhad (RM92.4 Million Private Placement) – Best M&A deal (Notable Mention) 2019 for Can One Berhad (RM1.53 Billion takeover of Kian Joo Can Factory Berhad) KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Capital Markets Group (CMG) • Provided a wide range of innovative and integrated financing solutions via the Malaysian debt capital markets, serving a clientele across a diverse range of industries. • 1st Subordinated Sukuk Issuance by an Insurance/Takaful Holding Company. • Acted as a Principal Advisor/Lead Arranger for major Sukuk and Syndicated Financing deals, including: – RM10.0 Billion Sukuk Wakalah Issuance for MBSB Bank Berhad. – RM1.5 Billion Unrated Sukuk for Tanjung Pinang Development Sdn Bhd. – RM1.0 Billion Perpetual Sukuk for WCT Holdings Berhad. – RM1.20 Billion Syndicated Commodity Murabahah Term Financing-i for Serba Dinamik Holdings Berhad. – RM620.0 Million Syndicated Term Financing-i for TSSA Harta Sdn Bhd. • Largest Single Tranche Personal Financing Securitisation year-to-date (YTD) 2019. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group • Largest A3-Rated Tier 2 Capital Issuance in Malaysia. • Top 3 MYR Corporate Bonds/Sukuk Issuer for 17 Consecutive Years. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  87. 85 Business Review – AmInvestment Bank KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Corporate Finance (CF) • Close collaboration with client relationship teams to offer end-to-end financial solutions for our corporate clients. • RM1.0 Billion IPO – Leong Hup International Berhad. • RM128 Million primary placement – Eastern & Oriental Berhad. • Strive to become the trusted Business Advisor of choice for clients via proactive idea generation and active strategic dialogues with key decision-makers to identify opportunities. • RM1.5 Billion – Can One Berhad’s takeover of Kian Joo Can Factory Berhad. • RM1.6 Billion – YTL Cement Berhad’s takeover of Lafarge Malaysia Berhad. • RM0.7 Billion – GSB Group Berhad’s acquisition of property development assets. Equity Capital Markets (ECM) • Focused on mid-capital sized companies listed on Bursa Malaysia. Notable transactions include: – RM92 million for Guan Chong Berhad (Primary Placement). – RM184 million for ATA IMS Berhad (Primary & Secondary Placements). • Ranked No. 1 in Bloomberg’s Primary Placement League Table 2019 by raising over RM700 Million. • Winner of The Edge Malaysia’s Best Share Placement 2019 for the Guan Chong Berhad transaction. Equity Markets (EM) • Invested in digitalisation to improve customer experience and reduce operating costs. • E-Account Opening Form launched in Jan 2020, which includes tri-lingual features for our online share trading portal, AmEquities; e-contract notes and e-statements. • Rolled out Bank Branch Broking with Retail Bank. • Over 1,000 new accounts opened via the Bank Branch Broking initiative. • Established a Prime Brokerage unit to service ultra-high net-worth clients. • More than RM6.0 Million in total revenue in the maiden year of operations for Prime Brokerage. • Grew the share margin financing book to counter declines in share trading volumes. • Double-digit growth in share margin net interest income in FY2020. Fund Management (AmInvest) • Rolled out three new unit trust funds: • New fund flows contributed to the growth in our overall Assets Under Management (AUM) to RM42.1 billion fund size, an increase of RM1.6 billion in total which represents a 4.0% growth in AUM from a year ago. 1. Global Bond Fund – AmIncome Bond. 2. Mixed Asset Fund – Income and Growth. 3. Closed-ended Bond Fund – AmFlexi Maturity. • Embarked on a Consolidation and Overhaul Exercise on our Fund Offerings. • The consolidation and overhaul exercise effectively managed the overlaps in some of the funds’ investment value propositions to our investors, ensuring that our fund themes remain relevant in the longer term. Private Banking (AmPrivate) • Focused on growing revenue and customer base, as well as increasing Private Client Managers’ productivity and presence. • Achieved total revenue growth YoY of 48.7% and improved Private Client Manager productivity. • Engaged with emerging and second-generation High Net-Worth Clients. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  88. 86 Business Review – AmInvestment Bank CHALLENGES & RISKS Challenges/Risks Mitigation Strategies Results Investments Climate Dwindling interest and declining importance of Bursa Malaysia amongst foreign investors. • Focus on the higher-margin retail investor segment which currently makes up between 20%-25% of the total turnover value on Bursa Malaysia. • Overall improvement in our retail market share. Brokerage Compression Stockbroking industry inevitably moving towards a zero-brokerage scenario due to technology advancement and competition. • Invest in digital capabilities to lower operating costs, improve customer experience and minimise trading errors. • Enhanced functionalities and features on AmEquities portal, such as portfolio management. Fee Compression Increased competition may lead to fee compression for advisory revenues. Competition Continue to face intense competition amongst banks as deal activities remain low. • Collaborate with client relationship teams, offering financing to execute the deals. • Provision of comprehensive one-stop financial solutions to defend key client relationships. • Focus on niche customer segments and leverage on AmBank Group’s competitive strengths. • Ranked Top 3 by deal value amongst Malaysian advisors in Bloomberg M&A League Table 2019. • Growth in Mid-Corp and SME customer base. PROSPECTS & OUTLOOK The upcoming financial year will be significantly impacted by a global economic crisis driven by the COVID-19 pandemic and plunging oil prices. With the extended lock-down globally, economic activities are at a stand-still as market outlook remains uncertain and negative. Bank Negara Malaysia (BNM) has since revised the GDP forecast growth to -2.0% to +0.5% in 2020, compared to a 4.9% GDP growth in 2019. The economic downturn will most likely lead to further policy rate easing, which will impact net interest income and non-interest income of investment bank due to a less vibrant capital market. In line with the subdued economic outlook, the banking system loans growth is expected to be flat in 2020. We foresee margin compression for banks stemming from further interest rate cuts, deposits competition and slower loans growth. Origination business will also be significantly impacted, with a substantial decline in business and cash flow of corporate clients leading to potential rating downgrade and debt restructuring. The COVID-19 pandemic is also adversely affecting the sentiment of Malaysia’s investors. Broking and wealth management income will be challenging with the market turning more cautious on investing. We expect markets to remain volatile in FY2021 due to the global health crisis, with a potential increase in margin calls for share margin financing in light of the declining Kuala Lumpur Composite Index. Wealth management income for Fund Management and Private Banking could come under pressure with declining assets value (both bonds and equity) and lower AUM. We also expect equity fundraising volume to remain subdued as evidenced by most of the major deals being put on hold. However, private banking is expected to continue on its growth phase as High Net-Worth clients increasingly seek guidance on investment opportunities in local and foreign currencies. The economic impact of the pandemic is expected to taper by the end of the second quarter of FY2021, with normalisation of both the global and domestic economy to take place in the second half of 2020. Economic recovery is supported by the Malaysian Government’s announcement of two stimulus packages that aim to boost growth and offers support in areas like liquidity, consumption and employment. BNM also announced a moratorium to defer loan repayments as well as initiatives to restructure and reschedule financing, which should help alleviate the cash flow pressures of individual and SME borrowers. We anticipate no major impact from the moratorium to our financial statements as the Group’s overall collateral coverage ratio remains healthy. These easing monetary policies provide AmInvestment Bank with opportunities in fixed-income and low-risk assets offerings. We are looking to expand our higher-margin funds to boost revenue while we embark on our technology and digital journey. With a steady interest in the marketplace, we will also delve deeper into Islamic funds and mandates, while also collaborating with external parties in terms of distribution and joint promotions. We also foresee opportunities for business consolidation from mergers and acquisitions (M&A) advisory and refinancing exercise planned for in the second half of FY2021. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  89. 87 Business Review – Retail Banking Retail Banking “In FY2020, we continued to execute our strategy of building our business centred around high-value segments, namely affluent individuals and small and medium-sized enterprises (SMEs). We strengthened our Priority Banking proposition, which has allowed us to grow our Priority Banking client base significantly where we now offer a wider range of wealth management products and services including foreign currency products, retail bonds and investment-link products. We have also grown our retail SME franchise significantly, with Current Account Savings Account (CASA) growing 13.6% and loans 34.8% YoY.” AARON LOO Managing Director, Retail Banking AmBank Group ABOUT US Retail Banking provides integrated value propositions to both individuals and small businesses from the Bank and our strategic partners. We have put in place differentiated value propositions designed to best serve specific segments such as Priority Banking, mass affluent and SME clients. These value propositions are delivered nationwide through physical channels represented by our 170 branches as well as nine Priority Banking Centres and digital channels via AmOnline and AmAccessBiz. In addition, we have 1,090 self-service terminals consisting of 641 Auto Teller Machines (ATMs), 33 Cash Deposit Machines (CDMs), 210 Cash Recycler Machines (CRMs), 206 Cheque Deposit Machines (CDMs). 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  90. 88 Business Review – Retail Banking OUR PERFORMANCE Retail Banking continues to focus on growing our market share of mass affluent, affluent and small business customers by providing relevant and timely solutions that meet the needs of our clients delivered through our physical and digital channels. We have put together a solid team of relationship managers and specialists supported by strategic partners to assist our clients. Furthermore, we have invested in and deployed award-winning digital channels to support clients that prefer to engage with us through non face-to-face channels, and have dramatically improved branch and contact centre service levels. We were able to hold our income steady YoY despite margin compression as a result of multiple reductions in the overnight policy rate during our financial year. Our PAT reduced by RM253.3 million mainly due to the impact of our debt sale held last year that resulted in a one-off gain in FY2019 of RM285.0 million. Furthermore, our recoveries were reduced YoY as the debt sale had depleted the total recoveries base. Our total deposits declined primarily due to our active management of high cost-fixed deposits, which was offset by CASA growth of RM1.5 billion. This resulted in our total funding cost declining which helped mitigate against the margin compression seen. Profit After Tax (PAT) RM315.2 Million in FY2020 Profit Before Provision (PBP) RM601.4 Million in FY2020 Cost-to-Income Ratio (CTI) 59% in FY2020 RM568.5 Million in FY2019 RM608.3 Million in FY2019 58% in FY2019 Mortgage Credit Card Outstanding Balance RM2,599 Million in FY2020 Retail SME RM2,514 Million in FY2019 RM2,673 Million in FY2019 RM36,498 Million in FY2020 RM34,122 Million in FY2019 Income (RM Million) Gross Loans (RM Million) 56,865 1,449 RM3,602 Million in FY2020 Current Account Savings Account (CASA) (RM Million) 13,002 58,892 11,448 1,466 FY2020 FY2020 FY2020 FY2019 FY2019 FY2019 Retail Banking Retail Banking Retail Banking AWARDS & RECOGNITION Malaysia e-Payments Excellence Awards 2019 (by PayNet – Payments Network Malaysia) • Outstanding Contribution to MyDebit • Outstanding Contribution to JomPAY Asian Banker Award 2019 – Most Improved Bank Visa • Highest Payment Volume (PV) Growth for eCommerce Spend • Highest Payment Volume (PV) Growth for Co-Brand Card AmDigital – Global Business Outlook: • Best Mobile Banking App • Most Innovative Mobile Banking App AKPK Best Implementation Award 2018/2019 MasterCard • Best Overall Spend Growth • Best Leverage of Mastercard Assets AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  91. 89 Business Review – Retail Banking KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Priority Banking • 13.6% growth in CASA YoY. • Opened nine Priority Banking Centres and refreshed the priority banking value propositions. • 34% increase in Wealth Penetration in FY2020. • 57% growth in Investment AUM compared to the corresponding previous period. Digital Banking • Launched AMY™, AmOnline’s Virtual Assistance that offers proactive and personalised assistance to customers through a self-guided chat interface. • 70% growth of registered users, increasing our AmOnline users from 575K to 977K. Driving SME Banking • Established the SME-in-a-Box platform that delivers more value to SMEs through cross products propositions in a bundled package. • Entered into a strategic collaboration with Maxis to provide connectivity and e-Commerce solutions for SME-in-a-Box, which opens up opportunities of new target base for acquisition and growth. • Continue to provide SMEs with collateral-free working capital facilities and comprehensive insurance solutions for businesses. This includes attractive premiums, 6-month payment deferments, low merchant terminal rates, preferential term deposit rates, preferential forex rates, amongst several other benefits. • SME clients are provided with integrated value propositions at attractive rates for deposits, loans, Bancassurance amongst others. • Allows SME customers access to comprehensive financing and digital solutions that leverage the potential of e-Commerce, particularly in these challenging times. Developing Our People • Conducted a High-Performance Culture (HPC) training module that aims to change mindsets, improve competencies and build entrepreneurial skills amongst the sales channels. • 15 Branch Managers participated in the ‘Retail Banking Branch Manager Excellence Programme’ to equip them with the knowledge and skillset to motivate, lead and coach frontliners to achieve the KPIs that are set. • 87 Regional Directors and Branch Managers enrolled to receive the Asian Institute of Chartered Bankers (AICB) certification. • Introduced a comprehensive people development programme that strengthens service-oriented culture towards building service excellence and customer-focused service skills. • 41 Relationship Managers and 9 Priority Segment Managers attended the ‘Empowering Signature Bankers in Sales Excellence Training’, improving their communication and counselling skills, with focus on acquiring and nurturing Priority Banking customers. • 50 Team Leaders from Customer Care and Service Operation Manager attended the ‘Building Service Excellence through Stakeholders Engagement Training’, which aims to change our customer service team into a more Service Mindset to drive team performance. • 18 Assistant Branch Managers (ABM) participated in the ‘Service Leadership Training for Branches’ to strengthen our service-oriented culture towards building service excellence and customer-focused service skills. Customer Value Proposition • Established AmOnline as a new platform that digitally supports the mass affluent channel across all core product transactions and services, including onboarding approvals and fulfilments, payments, loyalty rewards and financial management. • Over 977,000 registered users for AmOnline, an upsurge of 38% from a year ago. • 52% of Call Centre service requests deflected due to AmOnline, allowing the team to better focus on customer service issues. Operational Optimisation • Introduced the Post Market Stabilisation Scheme that enables process enhancement and the consolidation of roles and responsibilities. 05Leadership 06 Sustainability Report 07 Additional Information • 21% reduction in the total headcount for Retail Banking. INTEGRATED REPORT 2020
  92. 90 Business Review – Retail Banking CHALLENGES & RISKS Challenges/Risks Mitigation Strategies Hire Purchase (HP) Contraction The year-on-year contraction of the segment’s HP business impacts our financial performance. Margin Compression The reduction in the Overnight Policy Rate (OPR) results in a margin compression, affecting total revenue contribution. Customer Experience A high number of complaints from clients on our service levels impact customer attraction and retention. Results • Re-e n g a g e w i th ca r d ea lers to reb ui ld relationships. • Launch new product packages with attractive prices for targeted segments such as government servants. • Accelerate the growth of fixed-rate loans (e.g. HP). • Drive fee income through Priority Banking to mitigate the impact on revenue from interest income. • Revamp our approach in creating a service culture at customer touchpoints. • Significant increase in sales volume for HP. • Maintained a flat income YoY despite the OPR cuts that occurred. • Considerable drop in customer complaints • Positive acknowledgement of customer service by independent parties. PROSPECTS & OUTLOOK In the year ahead, Retail Banking will remain cautiously optimistic as we continue to navigate margin compressions, high customer expectations, and most significantly, the economic impact of the COVID-19 pandemic. Business and supply chain disruptions will cause cash flow challenges to customers, which affects our growth and assets. As such, we remain committed to easing the financial burdens of both individual and business customers, delivering financial solutions that allow them to financially recover alongside the economy. At the same time, we will continue to innovate the business to stay ahead of the competition. Our focus will remain in digitalisation, in which we provide tailored products and services to provide customers with a personalised banking experience. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  93. 91 Business Review – Business Banking Business Banking “Business Banking focuses on the small and mediumsized enterprises (SMEs), comprising of Enterprise Banking and Commercial Banking. Over the last year, together with Wholesale Banking and Retail Banking, we have onboarded more than 15,000 new SME accounts. SMEs are a key client segment for AmBank Group, and the potential for growth in the SME market is tremendous. Over the years, AmBank Group has grown its SME loan balances from approximately RM15 billion in 2017 to more than RM20 billion in 2019.” CHRISTOPHER YAP HUEY WEN Managing Director, Business Banking AmBank Group ABOUT US AmBank Group’s Business Banking aims to nurture and grow Malaysia’s entrepreneurs. Since our establishment in 2017, we have widened our reach to SMEs via 26 Enterprise Banking Centres and 18 Commercial Banking Centres nationwide. We utilise and adopt a high-touch relationship model combined with a structured lending programme for a holistic understanding of our customers’ needs. Our areas of services include Commercial Banking, Enterprise Banking, Business Wealth, and Bancassurance. We also deliver tailor-made solutions and cash management tools that help our business customers operate efficiently and seamlessly. OUR PERFORMANCE In the last year, we achieved a 13% growth in revenue, with a pricing discipline on high-yielding lending products as well as enhancing our business advisory capabilities and solutions for Forex and Cash Management, Bancassurance and Corporate Finance Advisory. We have achieved a Cumulative Average Growth Rate of 24% for loans and 30% for deposits from FY2017 to FY2020, with loans growth of 13% and deposit growth of 23% YoY. Total Income RM366.3 Million in FY2020 RM323.0 Million in FY2019 05Leadership 06 Sustainability Report Net Interest Income (NII) RM277.5 Million in FY2020 Non-Interest Income (NOII) RM88.8 Million in FY2020 RM244.1 Million in FY2019 RM78.9 Million in FY2019 07 Additional Information INTEGRATED REPORT 2020
  94. 92 Business Review – Business Banking OUR PERFORMANCE Cost-to-Income Ratio (CTI) 39.7% in FY2020 39.4% in FY2019 Bancassurance – Life Insurance Total Production Premium RM39.9 Million in FY2020 Bancassurance – General Insurance Total Gross Written Premium RM20.4 Million in FY2020 RM37.3 Million in FY2019 RM16.6 Million in FY2019 Profit Before Tax (PBT) (RM Million) 164.9 Gross Loans (RM Billion) Deposits (RM Billion) 163.9 11.2 7.2 9.9 5.8 FY2020 FY2020 FY2019 Business Banking FY2020 FY2019 Business Banking FY2019 Business Banking AWARDS & RECOGNITION • • • • Global Banking and Finance Review UK – Best SME Bank Malaysia 2019 Alpha Southeast Asia – Best SME Bank Malaysia 2019 Asian Banking and Finance – SME Bank of the Year 2019 Best SME Bank in Malaysia – Alpha Southeast Asia Best Financial Institutions Awards 2020 KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Innovative Business Solutions • Launched AmAce, a loan origination system that reduces turnaround time and delivers an enhanced experience to our business customers. • Developed innovative lending solutions that allow the Group to offer banking products based on pre-determined criteria and customer needs. • Documentation and Disbursement capabilities have been built into AmACE. AmBank Group is now on the next wave of development to cover discretionary non-retail lending in addition to program lending in AmACE. Strategic Partnerships • Introduced the AmBank BizM.A.T.E programme to establish strategic collaborations with market leaders across various industries such as Microsoft, DiGi, ABSS. • Through these partnerships, we have expanded our products and services to help our SME customers grow. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group • The AmBank BizM.A.T.E programme has expanded the numbers of essential industry offerings for SMEs to 18 partners. The partners are categorised as below: 1. Accounting & HR Solutions – four partners 2. Payment & Marketing Solutions – five partners 3. Communications & Internet – three partners 4. Operations & Administration – four partners 5. Logistics & Workspace – two partners 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  95. 93 Business Review – Business Banking KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Sectoral Strengthening • AmBank BizCLUB continues to provide SMEs with solutions beyond banking and financing that will help them scale, go international and reduce failure rates. • Conducted five BizCONFERENCE Beyond Financing sessions in 2019 which covered topics such as the Internet of Things, the Halal Industry, Digital Marketing & Branding and Green Business. • Organised our first “Road to IPO” session which aims to help high potential SMEs explore opportunities to become listed companies. • Over 5,000 SMEs in AmBank BizClub’s database. • 1,000 SMEs attended the Beyond Financing Series, CEO Chat and Road to IPO sessions. CHALLENGES & RISKS Challenges/Risks Mitigation Strategies Operational Inefficiencies Manual submissions and approvals increase error margins and delivery times. • Improve operational efficiency through innovative systems (e.g. AmACE System) that address manual tasks related to the loan origination process. Crowded SME Space Aggressive competition in the SME sector has brought some challenges to our market share. • Forge new mutually beneficial partnerships to develop innovative products and value-added services. Margin Compression Increased competition and lower sales lead to margin compression for products and services. • Continuously focus on high-yielding products. Credit Risk (COVID-19) The global pandemic impacts borrowers’ financial ability in maintaining their loan contracts. Results • Enhanced functionalities on AmACE system, such as documentation and disbursement capabilities. • The AmBank BizCLUB platform provides SMEs with education and networking opportunities. • Established strategic collaborations with market leaders across industries such as Microsoft, DiGi, Maxis and ABSS. • Collaborate with AmInvestment Bank to help SMEs transition into public-listed companies. • SMEs are given the opportunity to receive some guidance and advice on alternative financing to expand their business, which includes potential financing to Mergers & Acquisitions for larger SMEs. • Periodic review of loan portfolios by Relationship Managers. • Effective monitoring and management of each borrower’s financial health. PROSPECTS & OUTLOOK The upcoming financial year will be significantly shaped by the COVID-19 pandemic. SMEs today need to digitalise and innovate, resulting in a shift towards a ‘new normal’. With this change, Business Banking will be introducing various new initiatives and opportunities to help SMEs accelerate their digital strategy, which includes establishing an online community that allows SMEs to trade with each other. We will also continue to bring awareness, provide knowledge and networking opportunities in areas such as Industry 4.0, Digitalisation and Halal Certification, which are important components for SMEs to future-proof their business. In terms of mitigating the immediate economic setbacks of COVID-19, our Relationship Managers will continue to conduct monthly portfolio reviews on borrowers and regularly engage with customers, thus determining their financial health and cash flow to identify key focus areas. Business Banking will also continue to enhance our product offerings and lending programmes to help our customers’ business. Our FY2021 focus is to leverage on strategic collaborations and deliver improved services to business customers, as well as innovative products and financial solutions for the entire business eco-system. We will also continue to upgrade our AmACE system for the improved automation of credit processes, such as introducing new features and methods to serve our customers. We will also focus on the endto-end digitalisation of processes in order to further enhance our efficiency and customer experience. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  96. 94 Business Review – AmBank Islamic AmBank Islamic EQHWAN MOKHZANEE BIN MUHAMMAD “Given the challenging global economic outlook in 2020, AmBank Islamic Berhad (AmBank Islamic) is cautiously optimistic with the business outlook in FY2021. In FY2020, we accelerated selected businesses such as Amanah Saham Bumiputera (ASB) and home financing, wealth management and bancatakaful. We consistently nurture our relationship with our middle corporate (Mid-Corp) customers, which resulted in a 22% growth in financing to this segment. AmBank Islamic also provided several capacity-building platforms for small and medium-sized enterprises (SMEs) to grow via networking and knowledge-building events. In addition, the access to financing for start-up businesses was provided through our SME Biz Start-up-i Programme. The Best Islamic Finance SME Bank Malaysia 2019 Award won is a testament to our role in supporting the growth of Malaysia’s SMEs. The trading in fixed income securities bolstered our non-funded income (NOFI) by 34.6% in FY2020.” Chief Executive Officer AmBank Islamic Berhad ABOUT US AmBank Islamic is the primary Islamic banking arm of AmBank Group, which offers a comprehensive range of ShariahCompliant retail and non-retail banking products and services that include investment, treasury, and trade solutions. Our primary role as a credit intermediary is complemented by an investment intermediary role, both of which are anchored by our Value-Based Intermediation (VBI) aspiration. This is an integral strategy to catalyse our journey towards becoming a purpose-based organisation, whilst being mindful of financial returns to our shareholders. OUR PERFORMANCE The growth of our net funded income (NFI) was driven by the improvement in the net funded margin (NFM) to 1.93% and the growth of our total financing book by 10%, primarily from ASB and home financing, as well as financing to SME, corporate and institutional customers. Meanwhile, the recalibrated strategies for fixed-income securities, ancillary income from non-retail customers, wealth management and bancatakaful yielded positive results, with a 34.6% increase in total NOFI for AmBank Islamic. Financing to SMEs grew by 10.4% in FY2020 and constitute approximately 20% of our financing book. Our focus on the Mid-Corp segment and provision of trade finance facilities had strengthened our income base, with our trade finance portfolio increasing from RM2.2 billion in FY2019 to RM2.4 billion in FY2020. AmBank Islamic recorded a further improvement in our financial performance where the total income grew by 7.8% to RM883.8 million. Profit after zakat and tax (PAZT) was 7.1% higher at RM333.8 million due to a higher total income and better cost management, as evidenced by a better cost-to-income ratio of 34.8%. However, the stellar performance in our underlying business in FY2020 was dampened by the anticipatory forward-looking expected credit loss of RM58.3 million, due to the uncertainty arising from the COVID-19 pandemic and depressed oil prices. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  97. 95 Business Review – AmBank Islamic OUR PERFORMANCE Total Financing Income NFI NOFI Billion in FY2020 Million in FY2020 Million in FY2020 Million in FY2020 RM32.3 RM883.8 RM767.5 RM116.3 RM29.3 Billion in FY2019 RM820.1 Million in FY2019 RM733.7 Million in FY2019 RM86.4 Million in FY2019 Cost-to-Income Ratio 34.8% in FY2020 CASA Credit Card Outstanding Balance SME RM10,577.5 RM504.5 Million in FY2020 38.7% in FY2019 Million in FY2020 RM8,968.6 Million in FY2019 RM6,408.3 Million in FY2020 RM5,802.0 Million in FY2019 RM533.1 Million in FY2019 Profit After Tax and Zakat (PATZ) (RM Million) 311.8 Mortgage (RM Million) 333.8 Deposits (RM Billion) 8,062.3 6,840.2 34.7 31.1 FY2020 FY2020 FY2020 FY2019 FY2019 AmBank Islamic AmBank Islamic FY2019 AmBank Islamic AWARDS & RECOGNITION Global Banking & Finance Awards (GBAF) • Most Promising Islamic Bank Malaysia 2019 – AmBank Islamic Berhad • Best Islamic Banking CEO Malaysia 2019 – Eqhwan Mokhzanee Alpha Southeast Asia • Best Islamic Finance SME Bank Malaysia – AmBank Islamic Berhad Global Islamic Finance Awards (GIFA) • Most Improved Islamic Bank 2019 – AmBank Islamic Berhad • Islamic Banker of the Year 2019 – Eqhwan Mokhzanee 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  98. 96 Business Review – AmBank Islamic KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes VBI & Sustainability Agenda • Spearheaded AmBank Group’s sustainability agenda, the details of which are elaborated in the Sustainability Report on pages 135 to 205. • The CEO of AmBank Islamic is the Chairman of the industry-level VBI Working Group on Sectoral Guide Development for palm oil, renewable energy and energy efficiency. • SMEs and Start-up Businesses: • RM600 million or 10.4% growth in financing to SMEs. – AmBiz Series: Provided platforms for SMEs to network and build their business capacity. This included the AmBank Biz Conference – Halal Chapter, which provided insights to SMEs in relation to the Halal sector. – SME Biz Start Up-i: A programme for start-up businesses with financing of up to RM300,000. – Collaborated with CGC and SJPP to widen access to financing to SMEs. • RM44.0 million of financing disbursed by AmBank Islamic to start-up businesses. • RM26.0 million of loans/financing disbursed by AmBank Group for green-related businesses. Accelerating Growth Drivers • Enhanced wealth management services, including will writing in collaboration with Amanah Raya Berhad. • Fee income from Wealth Management. • Investments and trading of fixed-income securities to diversify and grow our income. • Income from Group Treasury and Markets (GTM). • Continue to engage with Mid-Corp customers to expand wallet share from deposits and ancillary income. • RM3.0 billion or 10% growth in total financing. Funding Diversification • Launched the AmJutawan campaign to garner savings accounts from individual customers. The campaign leverages the AmWafeeq savings account and offers prizes totalling up to RM2.5 million. • Offered JomPAY and Virtual Account solutions to manage collections for our customers and grow non-retail deposits. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group • 17.9% growth in CASA, resulting in CASA ratio of 30.5%. • 11.3% growth in total deposits. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  99. 97 Business Review – AmBank Islamic CHALLENGES & RISKS Challenges/Risks Mitigation Strategies Results • Manage and monitor the onboarding of customers vis-à-vis strategies and risk appetite. Credit Risk in View of the Economic Outlook In light of the COVID-19 pandemic, the banking sector could face deteriorating asset quality. • Implement prudent credit underwriting standards and proactive collection strategies. • Stable GIF ratio of 1.9%. • Monitor asset portfolio and composition. • Proactively engage major underperforming customers to avoid impairment. Cyber Security Risks Potential malware attacks and data breaches disrupt business operations and expose the bank to financial and non-financial implications. Shariah Risks Shariah non-compliances (SNC) result in the purification of income and could impact our business if remain unabated. • Implement the Cyber Resilience Policy to enhance cyber security through a multi-layered approach that builds our ability to prevent and recover from cyber-attacks and events that disrupt business operations and services. • No successful cyber-attack cases. • Establish a Security Incident Response Team to identify, protect, detect, respond and recover from cyber risk incidents. • In line with BNM Shariah Governance Framework (SGF), establish the Shariah Research & Advisory, Shariah Risk Management, and Shariah Review functions to act as the second line of defence against SNCs, with the Shariah Audit function acting as the third line of defence. • Four Shariah Non-Compliant Incidents (Transactional in Nature). • Implement the necessary governance, policies, guidance and control measures to mitigate SNC risks. PROSPECTS & OUTLOOK The COVID-19 pandemic has exacerbated existing economic and geopolitical challenges. Customers are expected to face cash flow challenges due to a slowing demand and supply chain disruptions, which will impact growth and asset quality. As part of our VBI journey, AmBank Islamic is committed to supporting our people and customers during these challenging times. Hence, we have institutionalised our own initiatives and are participating in various government-led initiatives, including BNM’s 6-month payment deferment initiative. Despite the uncertainties, our dedicated people, loyal customers, and capital and liquidity buffers will stand us in good stead to weather the storm, and we look forward to seeking further opportunities upon an economic upturn. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  100. 98 Business Review – AmGeneral AmGeneral DEREK LLEWELLYN ROBERTS Chief Executive Officer AmGeneral Insurance Berhad “During the financial year, AmGeneral set out concrete approaches to achieve the targets for the Top 4 Strategy, and has since delivered multiple products to continually address fast-changing customer needs. Throughout the journey, we have seen many positive developments while focusing on existing and new distributors for a quality business to deliver both growth and profitability in the motor segment. We have also designed and implemented Voice of Customer capability to drive customer retention performance and advocacy, leading to an 18% improvement in our overall Net Promoter Score (NPS) from 32 points in FY2019 to 38 points in FY2020. We have achieved exceptional claims track record by creating a first-class customer experience and effective management of claims costs by owning the supply chain with our Vehicle Accident Management (VAM) model.” ABOUT US AmGeneral is one of Malaysia’s largest motor and leading general insurance companies in the market. Driven by a strong sales force and committed support from our agents and partners, we continue to deliver better-valued products and services. Under two retail brands, AmAssurance and Kurnia, we provide insurance to one in every seven cars in Malaysia. As such, AmGeneral is ranked Top 2 in Motor with a market share of 15% and Top 2 for overall general insurance. With over two million customers, AmGeneral generates business from a comprehensive range of general insurance solutions distributed through a network of 33 branches and counters, servicing over 6,200 agents and dealers, as well as through AmBank Group’s branches nationwide. AmGeneral uses its leadership position to understand and provide market-leading customer experiences, making Malaysia’s community safer and more resilient for the future. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  101. 99 Business Review – AmGeneral OUR PERFORMANCE AmGeneral observed a strong year, reporting a 3.2% increase in total annual premium income in FY2020, rising by 3.6% in our core motor business. Our performance bucks the industry trend, which saw premium income fall by 0.8% during the same period. Furthermore, we recorded a profit before tax of RM282.5 million, which is 6.2% higher than the RM266.0 million recorded in the previous year. Towards the end of the financial year, the Government of Malaysia issued a Movement Control Order (MCO) starting 18 March 2020 that involved the closure of many parts of the economy which are deemed non-essential during the COVID-19 crisis. Whilst AmGeneral is one of the essential services that remained open, new business written and some renewals have been curtailed as car dealerships and intermediaries’ offices were ordered to close. The full-year results were largely unaffected due to the timing but it is expected to have an effect in the coming financial year. The key determinants of AmGeneral’s continued success are our accountability and commitment towards our multiple stakeholders. These were reinforced by eight core enablers, namely Product & Pricing, Distribution, Claims, Digital, Brand, Customer, System & Process and People. In FY2020, AmGeneral placed significant focus on product development, digital offerings and customer engagement, ensuring customer satisfaction in all areas of our operations; from confirming a policy to renewing or making a claim. Our financial performance is also due to the implementation of system and process enhancements that accelerated business growth, especially during the phased Liberalisation period. Gross Written Premium (RM Million) Net Profit After Tax (RM Million) 1,526.5 1,575.9 248.4 220.1 FY2020 FY2020 FY2019 FY2019 AmGeneral AmGeneral AWARDS & RECOGNITION Insurance Asia News Awards for Excellence 2019 • Property & Casualty Insurer of the Year 2019 – Malaysia Motordata Research Consortium (MRC) • The Fastest Estimate Claim Approval Time for Own Damage Claims 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  102. 100 Business Review – AmGeneral KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Liberalised 365 Suite for Motor & Non-Motor Products • Launched a series of new and improved ‘Better365’ motor and fire products, which include: • 5.1%* increase in overall motor premium growth and improvement in renewal ratios due to new motor products. i. Auto365 Comprehensive Plus – a major upgrade from your standard tariffed motor policy that features 7 new additional covers including key care and flood relief. ii. Enhanced Auto365 Comprehensive Premier – provides the ultimate motor insurance that makes its all-risk features the perfect protection. iii. Flexi SME365 – provides SME businesses with flexibility on the sum insured via the selection of nine essential covers that match their business needs, all through one premium, policy and stamp duty. • Greatly improved turnaround time for processing due to the Digitalised Flexi SME product. This also enhanced the intermediary and customer experience, as insurance quotation generation, acceptance approval, and ePolicy issuance are all done via the digital platform. iv. AmStyle Guard – a unique lifestyle protection cover that combines Personal Accident and Burglary benefits into one plan. Market-Leading Claims Services • Established a dedicated claim assessment centre which uses in-house technology to significantly improve claims turnaround times. Customers can lodge claims using the ‘One Touch’ mobile phone application from the scene of an accident, as well as receive increased updates on repairs. • Introduced an Express Claims process that has an extensive network of motor and windscreen workshops. This is supported by the only hyphenate claims lodgment approach in the industry, including free e-hailing options following an accident, document waivers, improved status updates and the longest warranty on workmanship in Malaysia. • Only three^ days required to approve customers’ Own Damage claims, making it an industry leader in the claim approval process. • Awarded ‘The Fastest Estimate Claim Approval Time for Own Damage Claims’ by Motordata Research Consortium (MRC). • Launched roadside assistance through Kurnia Connect, which provides immediate assistance to accident victims and helps them through the end-to-end claims journey. Exclusive Partnerships & Digital Innovation • Established strategic partnerships with top brands to reinforce our position as one of the most competitive and innovative insurers in the industry. The partnerships include Mercedes-Benz Malaysia; Grab Daily Insurance; BNM (Motor Product Open API); and One Touch. • Mercedes-Benz, Malaysia: Awarded as one of the panel insurers to break into the luxury continental car market, improving our position on writing high-value preferred segments in Malaysia. • Grab Daily Insurance: Became one of the insurance partners to deliver Grab Daily Insurance (GDI) launched on 12 July 2019. • Motor Product Open API: Successfully completed the development of an open Application Programming Interface (API) on motor product features and services offered by AmGeneral. The API is utilised by aggregators to compare motor product features and services offered by all insurers in Malaysia. • One Touch App: Improved road safety with the gamification of the One Touch app via the Drive Safe campaign. Users are granted points based on their average speed, maximum speed and distance travelled once they switch on the app. This strengthened our overall position for future partnerships in digital innovation. * April 2019 to February 2020 to exclude effects of MCO ^ Based on MRC data as at March 2020 AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  103. 101 Business Review – AmGeneral CHALLENGES & RISKS Challenges/Risks Mitigation Strategies Strategic Risks The outbreak of COVID-19 has led to the weakening of local and global economic conditions, which affects consumer spending capabilities in purchasing motor vehicles and properties. This could potentially affect AmGeneral’s ability in meeting our strategic objectives. Conditions such as this would also increase the risk of higher fraudulent insurance claims. Cyber Security Cyber threats expose the business and our customers to data breaches and financial loss. Market Volatility The uncertainty in the economic outlook has given rise to volatilities in earnings from out investment book. Results • Continue to improve our product offerings to provide the best prospective proposal to existing and potential customers. • Enhance fraud detection and prevention measures to protect AmGeneral from the possible rise of fraudulent claims and inflated repair costs. • Set up an Underwriting, Pricing & Product (UPPCo) Committee to ensure that underwriting, pricing and product review and development is well managed and governed. • Implement necessary preventative measures as prescribed by AmBank Group and regulatory requirements to protect the integrity and privacy of AmGeneral and stakeholders’ data. • Competitive product pricing and attractive product features. • Reduced leakages from fraudulent claims and inflated repair costs. • Improved readiness in response to crises. • Secure customer and company’s data. • Actively participate in industry events that raise our people’s awareness. • Actively manage and revise our investment portfolio holdings to defend against market uncertainties. • Work closely with AmFunds to ensure that our investment strategy is aligned with the desired levels of risk and rewards. • Reduced earnings volatility. • Optimised investment returns. • Implement the Tactical Asset Allocation and Strategic Asset Allocation of the Company set within AmGeneral’s risk appetite. PROSPECTS & OUTLOOK As the COVID-19 situation continues to progress and evolve, it is challenging at this juncture to predict the full extent and duration of its business and economic impact. The general insurance industry will continue to see prudent underwriting, with continued focus on growing profitable insurance portfolios such as retail, affinity partnerships, and small and medium industries in the non-motor segment. Due to the rise of disruptive innovations, consumer expectations will be higher on simplicity, intuitiveness, speed, safety and frictionless interactions. AmGeneral will continue to monitor the progress of the outbreak and measure its impact, if any, on our financial statements as they occur. Nevertheless, the impact to AmGeneral’s business operations will be minimal as we have taken preventative measures to ensure the safety of stakeholders, leveraging on remote working arrangements and digital capabilities. In FY2021, AmGeneral plans to realign our strategic initiatives to reap new growth opportunities and prepare for market volatilities, in anticipation of new government policies, regulatory changes, Liberalisation and Digitalisation. We have grouped the efforts and initiatives for FY2021 into the following eight strategic themes: • • • • • • • Develop Motor products with differentiated levels, value and benefits, while Fire-based products focused on price competitiveness Deliver key initiatives to meet the unique needs of each distribution channel while delivering growth objectives Provide significant customer and cost benefits via Vehicle Accident Management (VAM) assessing and repairing model Enhance digital distribution platforms while still engaging and servicing our existing channels and customers in effective means Deploy retail brands to allow AmGeneral to respond and address new segments and value propositions Meet the changing needs of customers underpinned by digital enablement and developing winning capabilities for an evolving market Develop a high-performance culture to enable employees to successfully perform in accordance with business objectives 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  104. 102 Business Review – AmMetLife AmMetLife “The year under review was focused on improving our processes, people, products and solutions to better serve our customers’ needs. AmMetLife delivered customised solutions that provide keyman insurance coverage to AmBank Business Banking and Retail SME customers, while also accelerating the growth of Bancassurance Specialists through referral programmes to extend coverage for AmBank Group customers. Additionally, we implemented various digitalisation initiatives to transform customer experience and drive sales momentum. With regards to talent development, we launched the Young Entrepreneurs Scheme to attract new agents, which was supported by a revamped agency development programme that grooms agents into future agency leaders.” RAMZI ALBERT TOUBASSY Chief Executive Officer AmMetLife Insurance Berhad ABOUT US AmMetLife is a strategic partnership between AmBank Group and MetLife International Holdings LLC (MetLife). Established in 2014, AmMetLife combines the international expertise and financial strength of MetLife with the local strength and reach of AmBank Group, creating a customer-centric and modern life assurance solutions provider in Malaysia At AmMetLife, we are focused on meeting our customers’ diverse needs with innovative solutions at different stages of their lives, making it easier and simpler for families and individuals to achieve financial security and pursue more from life. AmMetLife offers a comprehensive range of life insurance solutions to meet protection, medical and savings needs as well as credit-related insurance solutions, distributed through a network of nearly 200 AmBank Group and AmMetLife branch offices nationwide. Additionally, we leverage the strength of our authorised life insurance agents who provide comprehensive coverage and reach across Malaysia. OUR PERFORMANCE AmMetLife achieved a 7.0% growth in revenue for FY2020, primarily due to our focus in delivering the right solution to the right customer segments. Our financial growth was also supported by digitalisation initiatives that enhance customer service and operational excellence. The financial year was focused on revitalising and strongly differentiating the agency through a comprehensive suite of products that meet a diverse range of customer needs. Moreover, leveraging our Bancassurance potential while tapping into market opportunities in employee benefits also contributed to AmMetLife’s positive financial performance. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  105. 103 Business Review – AmMetLife OUR PERFORMANCE New Business Annual Premium Equivalent CAGR RM162.2 Million in FY2020 Management Expense Ratio 25% in FY2020 RM151.5 Million in FY2019 26.8% in FY2019 Profit/(Loss) After Tax (PAT) (RM Million) Gross Written Premium (RM Million) 34.5 552.8 Total Income (RM Million) 604.7 197.7 FY2020 (19.8) FY2019 140.3 FY2020 FY2020 FY2019 AmMetLife AmMetLife FY2019 AmMetLife AWARDS & RECOGNITION 2019 Silver Stevie Award • Best New Product of the Year in Financial Services American Malaysian Chamber of Commerce Certificate of Recognition • Excellence in Corporate Social Responsibility KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Digitalisation & Automation • Introduced iEASY, an agency point-of-sale tool that allows straight-throughprocessing of new businesses. • Implemented a Robotic Process Automation that has saved the company 96% in man-hours. • A faster approval process to better serve customers. • Quicker service turn around time and enhanced accuracy. • More efficient, effective and productive processes. Customer Empowerment • Introduced new self-service functionalities in our Customer Online Portal. • More user-friendly features for enhanced customer experience. PROSPECTS & OUTLOOK With the ongoing uncertainty of the COVID-19 pandemic, AmMetLife foresees a more challenging business environment going forward. The health and well-being of our customers remain our highest priority. Despite the short-term challenges, the insurance outlook remains positive in catering to customers’ needs. In FY2021, apart from extending hospitalisation and death coverage due to COVID-19, we will also review alternative requests to ease the financial burden of our customers. This includes enabling policyholders to restructure premium payments from annual to monthly mode; extension of grace period for payment of premiums; reducing/waiving the interest charges for policy loans and Automatic Premium Loans; and the deferment of insurance premiums for three months for affected customers. In addition to navigating the challenging landscape of a global health crisis, AmMetLife will continue to prioritise efficiency, employee productivity and customer responsiveness. The key focus areas for the upcoming year include: recruit new agents and develop future Agency Managers; simplify enrolment and payment processes to increase insurance penetration to Malaysian households; service differentiation through Health & Wellness initiatives for Employee Benefits customers; digitalisation to elevate customer experience and improve proficiency; and increase 24/7 customer self-service functions in our Customer Portal. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  106. 104 Business Review – AmMetLife Takaful AmMetLife Takaful “In FY2020, AmMetLife Takaful generated RM125.5 million in revenue by fully optimising our Bancatakaful potential. This includes accelerating existing Bancatakaful arrangements with AmMetLife Specialist model (BAS) and harnessing business banking opportunities. We also developed alternative distribution channels by proactively seeking business opportunities with third-party banks, government bodies and other co-operations. Moreover, we differentiated our product portfolio, targeting Muslimcentric product propositions for all market segments.” NOOR AZAM BIN MOHD YUSOF Chief Executive Officer AmMetLife Takaful Berhad ABOUT US Established on 9 January 2012, AmMetLife Takaful Berhad (Family Takaful) is licensed by BNM to conduct Family Takaful business in Malaysia, under the Takaful Act 1984. The company is a strategic collaboration between AmBank Group and MetLife International Holdings, in which we offer a comprehensive range of Takaful solutions distributed by our authorised Takaful agents and Bank Partners’ branches nationwide. AmMetLife Takaful aims to meet customers’ diverse needs through innovative solutions at different stages of their lives, making it easier and simpler for individuals to achieve financial security and pursue more from life. OUR PERFORMANCE During the financial year, AmMetLife Takaful achieved a significant 127.7% growth in total income, which is mainly attributed to a 94% increase in penetration of business, particularly credit-related business (e.g. Mortgage Reducing Term Takaful and Personal Financing Reducing Term Takaful). Another key driver of growth was the alignment of the Banca business strategy with AmMetLife Insurance, AmBank Group, and AmBank Islamic; as well as the commendable performance coming from the Malaysian Government’s Public Sector Housing Financing Board (LPPSA) where the Company provides coverage for LPPSA Mortgage Financing. Lastly, the reprioritising of resources in managing projects allowed us to better control and minimise costs for enhanced financial performance. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  107. 105 Business Review – AmMetLife Takaful OUR PERFORMANCE New Business Annual Contribution Growth YoY by Channel Banca – 42% Agency – 83% Alternate – >100% Management Expense Ratio 32% in FY2020 34% in FY2019 in FY2020 Banca – (33%) Agency – (10%) in FY2019 Gross Written Premium (RM Million) Value of New Business (RM Million) 113.0 15.6 66.2 5.9 FY2020 FY2020 FY2019 AmMetLife Takaful FY2019 AmMetLife Takaful KEY INITIATIVES & OUTCOMES Key Initiatives Outcomes Business Enhancements • Streamlined business processes with AmBank Group and AmMetLife Insurance. • Successfully launched BancaPOS and Single POS platform for the Agency force. • Diversified business channels for alternative revenue streams. • Commendable result from LPPSA panelship to provide coverage of Mortgage Takaful. • Focused on improving our Expense Ratio through the prudent management of expenses. • Improvement of Expense Ratio through prudent management. Compliance Culture • Strengthened Compliance and Risk culture within the Takaful team through training and awareness programmes. • Lower non-compliances and better risk management amongst employees. PROSPECTS & OUTLOOK As we end the year in a profit position, AmMetLife Takaful has begun developing alternative channels for future growth. With most of the infrastructure for BancaPOS and an enhanced back-end system in place, we are well-positioned to generate greater income. In the upcoming year, we will prospect for strategic partnerships and collaborations with other financial institutions, corporations and government agencies to accelerate business growth. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  108. 106 Corporate Information BOARD OF DIRECTORS 1 AUDIT AND EXAMINATION COMMITTEE TAN SRI AZMAN HASHIM Chairman Non-Independent Non-Executive Director 2 GRAHAM KENNEDY HODGES Non-Independent Non-Executive Director 3 SOO KIM WAI Non-Independent Non-Executive Director 4 5 6 Dato ’ Kong Sooi Lin Chairman Independent Non-Executive Director Farina Binti Farikhullah Khan Independent Non-Executive Director Graham Kennedy Hodges Non-Independent Non-Executive Director Dato’ Kong Sooi Lin Independent Non-Executive Director Hong Kean Yong Independent Non-Executive Director GROUP NOMINATION AND REMUNERATION COMMITTEE GROUP INFORMATION TECHNOLOGY COMMITTEE Voon Seng Chuan Chairman Senior Independent Non-Executive Director Hong Kean Yong Chairman Independent Non-Executive Director SEOW YOO LIN Independent Non-Executive Director Graham Kennedy Hodges Non-Independent Non-Executive Director Soo Kim Wai Non-Independent Non-Executive Director Soo Kim Wai Non-Independent Non-Executive Director Voon Seng Chuan Senior Independent Non-Executive Director HONG KEAN YONG Independent Non-Executive Director 8 Seow Yoo Lin Chairman Independent Non-Executive Director VOON SENG CHUAN Senior Independent Non-Executive Director FARINA BINTI FARIKHULLAH KHAN Independent Non-Executive Director 7 RISK MANAGEMENT COMMITTEE Farina Binti Farikhullah Khan Independent Non-Executive Director GROUP COMPANY SECRETARY Seow Yoo Lin Independent Non-Executive Director Koid Phaik Gunn (MAICSA 7007433) (SSM Practising Certificate No. 202008003140) Chartered Secretary DATO’ KONG SOOI LIN Independent Non-Executive Director REGISTERED OFFICE PRINCIPAL BANKER 22 Floor, Bangunan AmBank Group No. 55, Jalan Raja Chulan 50200 Kuala Lumpur Malaysia Tel : +603-2036 2633 Fax : +603-2032 1914 nd AmBank (M) Berhad ambankgroup.com REGISTRAR AUDITORS Messrs Ernst & Young PLT 202006000003 (LLP0022760-LCA) & AF 0039 Chartered Accountants Level 23A, Menara Millenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur Malaysia AMMB HOLDINGS BERHAD WEBSITE STOCK EXCHANGE LISTING Boardroom Share Registrars Sdn Bhd 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13, 46200 Petaling Jaya Selangor Darul Ehsan Malaysia Tel : +603-7890 4700 Fax : +603-7890 4670 Email:BSR.Helpdesk@boardroomlimited.com 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights Listed on the Main Market of Bursa Malaysia Securities Berhad Listing Date : 13 February 1992 Stock Name : AMBANK Stock Code : 1015 INVESTOR RELATIONS ir@ambankgroup.com 04 Management Discussion and Analysis
  109. 107 Board Diversity Australian NATIONALITY COMPOSITION Australian Independent Non-Executive Director 3 4 13 % Non-Independent Non-Executive Director (including the Chairman) 1 87% Malaysian Senior Independent Non-Executive Director AGE GENDER The current Board’s age distribution falls within the respective age groups as follows: Female Directors currently represent 25% of the Board composition. The Board has identified a female Director for appointment to the Board. The proposed appointment is subject to the approval of regulators. 40-49 years old 70 years old and above 1 60-69 years old 3 1 3 6 4 50-59 years old 2 MALE 3 FEMALE LENGTH OF TENURE 9 years and above 25% 75% 1-9 years 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  110. 108 From Left to Right 1 2 3 4 5 6 7 8 TAN SRI AZMAN HASHIM Chairman Non-Independent Non-Executive Director GRAHAM KENNEDY HODGES Non-Independent Non-Executive Director SOO KIM WAI Non-Independent Non-Executive Director VOON SENG CHUAN Senior Independent Non-Executive Director DATO ’ KONG SOOI LIN Independent Non-Executive Director SEOW YOO LIN Independent Non-Executive Director FARINA BINTI FARIKHULLAH KHAN Independent Non-Executive Director HONG KEAN YONG Independent Non-Executive Director Board of Directors
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  112. 110 Profile of Directors Malaysian Male 81 Years Old 15 August 1991 29 Years TAN SRI AZMAN HASHIM Chairman Non-Independent Non-Executive Director QUALIFICATIONS • • • • Fellow Chartered Banker (FCB) Chartered Accountant (FCPA) Fellow, Institute of Chartered Accountants Fellow, Institute of Chartered Secretaries and Administrators DIRECTORSHIP(S) IN LISTED ISSUERS None EXPERIENCE DECLARATION • Tan Sri Azman Hashim has been in the banking industry since 1960 when he joined Bank Negara Malaysia. He practised as a Chartered Accountant in Azman Wong Salleh and Co. from 1964 to 1971. He was on the board of Malayan Banking Berhad from 1966 to 1980 and was its Executive Director from 1971 until 1980. He was the Executive Chairman of Kwong Yik Bank Berhad, a subsidiary of Malayan Banking Berhad, from 1980 until 1982 when he acquired AmInvestment Bank Berhad. • Tan Sri Azman is the Non-Independent Non-Executive Chairman of AmGeneral Holdings Berhad and AmInvestment Group Berhad, both of which are subsidiaries of the Company. He is also the Executive Chairman of Amcorp Group Berhad. • Tan Sri Azman is Chairman of the Asian Institute of Chartered Bankers, Asian Banking School Sdn Bhd, Malaysia South-South Corporation Berhad, Financial Industry Collective Outreach (FINCO), Universiti Teknologi Malaysia – Azman Hashim International Business School Advisory Council and Chairman Emeritus of Pacific Basin Economic Council (PBEC). He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company except as follows: • Director and substantial shareholder of Amcorp Group Berhad, which in turn is a substantial shareholder of AMMB Holdings Berhad (AMMB), and being a director of Clear Goal Sdn Bhd, his family company which is deemed a substantial shareholder of AMMB by virtue of its interest in Amcorp Group Berhad. He has not been convicted for any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • He is the President of Malaysia South-South Association, Malaysia-Japan Economic Association, Malaysian Prison FRIENDS Club and a Member of the East Asia Business Council. He is also the Leader of the ASEAN Japan Business Meeting (Malaysia Committee, Keizai Doyukai). He is the Pro-Chancellor of Open University of Malaysia and University Malaysia Sabah and a Member of the Academic Advisory Council, Universiti Teknologi Petronas. • Tan Sri Azman is also involved in several charitable organisations as Chairman and Trustee of AmGroup Foundation and Perdana Leadership Foundation and Trustee for Yayasan Azman Hashim, Yayasan Tuanku Najihah and Yayasan Canselor Open University Malaysia. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  113. 111 Profile of Directors Australian Male 65 Years Old 30 June 2016 4 Years GRAHAM KENNEDY HODGES Non-Independent Non-Executive Director MEMBERSHIP OF BOARD COMMITTEES • Member of the Company’s Risk Management Committee • Member of the Company’s Group Nomination and Remuneration Committee QUALIFICATIONS • Bachelor of Economics (Hons), Monash University, Australia. DIRECTORSHIP(S) IN LISTED ISSUERS None EXPERIENCE DECLARATION • Graham Kennedy Hodges was appointed the Deputy Chief Executive Officer of Australia and New Zealand Banking Group Limited (ANZ) in May 2009, and had stepped down from the role effective May 2018. Prior to that, he was the Chief Executive Officer and a director of ANZ National Bank Limited responsible for the running of ANZ Group’s New Zealand business. • Mr. Hodges has held the position of Group Managing Director, Corporate and various other roles in Corporate and Business Banking. He joined ANZ in 1991 and was appointed Chief Economist in 1992, a post he held for three years. He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company except as follows: • Board representative of Australia and New Zealand Banking Group Limited, which is deemed a substantial shareholder of AMMB by virtue of its interest in ANZ Funds Pty Ltd, a substantial shareholder of AMMB. He has not been convicted for any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • Before ANZ, Mr. Hodges spent several years with the International Monetary Fund in Washington DC and nine years in Commonwealth Treasury in Canberra. • Mr. Hodges is an Independent Non-Executive Chairman of Regis Healthcare Limited, a healthcare company listed on the Australian Securities Exchange. • Mr. Hodges is also a Non-Executive Director of Assemble Communities Pty Ltd, a business focused on development of affordable housing in Australia. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  114. 112 Profile of Directors Malaysian Male 59 Years Old 4 October 2002 17 Years SOO KIM WAI Non-Independent Non-Executive Director MEMBERSHIP OF BOARD COMMITTEES • Member of the Company’s Group Nomination and Remuneration Committee • Member of the Company’s Group Information Technology Committee QUALIFICATIONS • • • • Member, Malaysian Institute of Accountants Member, Malaysian Institute of Certified Public Accountants Fellow, Certified Practising Accountant, Australia Fellow, Association of Chartered Certified Accountants, United Kingdom DIRECTORSHIP(S) IN LISTED ISSUERS • Director, RCE Capital Berhad • Director, Amcorp Properties Berhad EXPERIENCE DECLARATION • Soo Kim Wai is currently the Group Managing Director of Amcorp Group Berhad. He joined Amcorp Group Berhad in 1989 as Senior Manager, Finance, and has since held various positions before he was promoted to his current appointment. Prior to that, he was with Plantation Agencies Sdn Bhd from 1985 to 1989, and in the accounting profession for five years with Deloitte KassimChan from 1980 to 1985. • Mr. Soo sits on the board of some private limited companies and foreign companies. He also serves as Non-Independent Non-Executive Chairman of AmREIT Managers Sdn Bhd, the Manager of AmFirst Real Estate Investment Trust. He is also the NonIndependent Non-Executive Chairman of AmREIT Holdings Sdn Bhd. He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company except as follows: • Group Managing Director of Amcorp Group Berhad, which is a substantial shareholder of AMMB. He has not been convicted for any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • Mr. Soo is also a Non-Independent Non-Executive Director of AmBank (M) Berhad, a wholly-owned subsidiary of the Company. • In March 2020, Mr. Soo was appointed as a Non-Independent Non-Executive Director of Amcorp Global Ltd (formerly known as TEE Land Limited), a subsidiary of Amcorp Group Berhad, listed on the mainboard of the Singapore Stock Exchange. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  115. 113 Profile of Directors Malaysian Male 61 Years Old 18 June 2015 5 Years VOON SENG CHUAN Senior Independent Non-Executive Director MEMBERSHIP OF BOARD COMMITTEES • Chairman of the Company’s Group Nomination and Remuneration Committee • Member of the Company’s Group Information Technology Committee QUALIFICATIONS • Bachelor of Science (Honours) in Mathematics, University of Malaya DIRECTORSHIP(S) IN LISTED ISSUERS • Director, Mesiniaga Berhad EXPERIENCE DECLARATION • Voon Seng Chuan has been part of the Information Technology (IT) industry for about three decades. In April 2008, he joined the IBM Quarter Century Club reflecting his 25 years of service in IBM. He retired from IBM in March 2010. • In his 27 years of service with IBM, he held a number of roles delivering all aspects of IT products and services for clients in all industry segments in Malaysia and the Asia Pacific region. His last role in IBM prior to his retirement was Director for Mid-Market Segment in Asia Pacific. He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted for any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • From 2000 to 2006, Mr. Voon was the Managing Director for IBM Malaysia and Brunei. Mr. Voon responded to the Malaysian Government’s call to transform the nation into an international shared services and outsourcing hub by leading IBM’s investment in seven regional centres/operations in Malaysia. In doing so, IBM is well positioned to transfer best practices and high-skilled expertise to the country. • In 2013, Mr. Voon was recognised with the “Outsourcing Leader of the Year” award by Outsourcing Malaysia. He was also a Council Member of PIKOM (National ICT Association of Malaysia) from 1994/1995 and 1999/2000. • Mr. Voon is also an Independent Non-Executive Chairman of AmBank (M) Berhad, a wholly-owned subsidiary of the Company. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  116. 114 Profile of Directors Malaysian Male 64 Years Old 30 June 2016 4 Years SEOW YOO LIN Independent Non-Executive Director MEMBERSHIP OF BOARD COMMITTEES • Chairman of the Company’s Audit and Examination Committee • Member of the Company’s Group Nomination and Remuneration Committee QUALIFICATIONS • Certified Public Accountant • Master of Business Administration, International Management Centre, Buckingham, United Kingdom • Member, Malaysian Institute of Accountants • Member, Malaysian Institute of Certified Public Accountants • Member, Malaysian Institute of Management DIRECTORSHIP(S) IN LISTED ISSUERS • Director, Southern Steel Berhad • Director, Hume Industries Berhad EXPERIENCE DECLARATION • Seow Yoo Lin joined KPMG Malaysia in 1977 and qualified as a Certified Public Accountant in 1980. In 1983, he was seconded to KPMG United States to gain overseas experience, specialising in banking assignments. He returned in 1985 and was admitted as Partner in 1990. • He has been the audit partner on a wide range of companies including public listed companies and multinationals in banking and finance, manufacturing, trading and services. In addition, he held various leadership roles including those of Human Resource Partner, Partner in charge of Financial Services and a member of the KPMG Asia Pacific Board. He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted for any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • He was a member of Executive Committee of the Malaysian Institute of Certified Public Accountants from 2009 to 2011 and a Council member of the Malaysian Institute of Accountants from 2007 to 2011. He was the Managing Partner of KPMG Malaysia from 2007 to 2010. He retired from the firm in 2011. • Mr. Seow is also an Independent Non-Executive Director of AmInvestment Bank Berhad, a wholly-owned subsidiary of the Company. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  117. 115 Profile of Directors Malaysian Female 48 Years Old 8 August 2017 3 years FARINA BINTI FARIKHULLAH KHAN Independent Non-Executive Director MEMBERSHIP OF BOARD COMMITTEES • Member of the Company’s Audit and Examination Committee • Member of the Company’s Group Nomination and Remuneration Committee QUALIFICATIONS • Bachelor of Commerce in Accounting, University of New South Wales, Australia • Fellow, Institute of Chartered Accountant Australia and New Zealand • Advanced Management Program, Harvard Business School, United States of America DIRECTORSHIP(S) IN LISTED ISSUERS • Director, Petronas Gas Berhad • Director, KLCC Property Holdings Berhad • Director, Icon Offshore Berhad EXPERIENCE DECLARATION • Farina binti Farikhullah Khan has over 25 years of working experience, predominantly in oil and gas industry. • She started out her career in 1994 with Coopers & Lybrand, Australia in the Business Services unit for three years. • In 1997, Farina returned to Malaysia to join Petroliam Nasional Berhad (PETRONAS) in the Corporate Planning and Development Division where she started as an executive and in the ensuing years until 2005, she held various positions including Senior Manager (Strategy and Portfolio) in Group Strategic Planning of PETRONAS. She does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. She has not been convicted for any offence within the past five years nor has she been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • She subsequently assumed the position of Chief Financial Officer of PETRONAS Carigali Sdn Bhd, one of the largest subsidiaries of PETRONAS with operations in over 20 countries, from 2006 to 2010. She then served as the Chief Financial Officer at PETRONAS Exploration and Production Business, the largest arm of PETRONAS Business, from mid-2010 until 2013, where the business included both PETRONAS Carigali Group of Companies as well as the Petroleum Management Unit of PETRONAS. • Prior to leaving PETRONAS Group at the end of 2015 to pursue her other interests, Farina was the Chief Financial Officer of PETRONAS Chemical Group Berhad, the largest listed entity of PETRONAS, for two years. • Farina had also previously served on the Board of various PETRONAS entities, such as Progress Energy Canada Ltd as well as a number of PETRONAS joint venture entities with foreign partners. • She is also an Independent Non-Executive Director of AmBank Islamic Berhad, a wholly-owned subsidiary of the Company. • She is an Independent Non-Executive Director of KLCC REIT Management Sdn Bhd, the Manager of KLCC Real Estate Investment Trust. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  118. 116 Profile of Directors Malaysian Male 57 Years Old 10 October 2019 Less than 1 Year HONG KEAN YONG Independent Non-Executive Director MEMBERSHIP OF BOARD COMMITTEES • Chairman of the Company’s Group Information Technology Committee • Member of the Company’s Risk Management Committee QUALIFICATIONS • Bachelor of Engineering (Hons) in Electrical and Electronics Engineering, University of Malaya DIRECTORSHIP(S) IN LISTED ISSUERS • Director, Time Dotcom Berhad EXPERIENCE DECLARATION • Mr. Hong was the Senior Vice President of Strategic Planning and Technology Advisor at Taylors Education Group from April 2011 until June 2018, where his primary responsibility was to advise the Group Chief Executive Officer on adoption of information technology in the various operating divisions and provide oversight of Chief Information Officer of Higher Education Division. He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted for any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • Prior to that, Mr. Hong was the Group Chief Information Officer for Hong Leong Financial Group Berhad from April 2008 to March 2011. He was responsible for the Group IT Strategy and IT Oversight of all subsidiary companies. He played an important role in setting the IT Vision and Mission and the synergies in the application of technology to enable business, including the IT architecture, design and development across the financial services group. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  119. 117 Profile of Directors Malaysian Female 59 Years Old 30 October 2019 Less than 1 Year DATO ’ KONG SOOI LIN Independent Non-Executive Director MEMBERSHIP OF BOARD COMMITTEES • Chairman of the Company’s Risk Management Committee • Member of the Company’s Audit and Examination Committee QUALIFICATIONS • • • • Bachelor of Commerce (Honours), University of New South Wales, Australia Fellow, Certified Practising Accountant, Australia Chartered Banker, Asian Institute of Chartered Bankers Chartered Accountant, Malaysian Institute of Accountants DIRECTORSHIP(S) IN LISTED ISSUERS • Director, Eco World International Berhad EXPERIENCE DECLARATION • Dato’ Kong has over 30 years of investment banking experience and has extensive equity and debt transaction expertise, having advised on numerous highly profiled and industry-shaping corporate exercises in Malaysia and Asia Pacific. • Dato’ Kong began her career with Ernst & Whinney (now known as Ernst & Young) and Arthur Anderson & Co. and then joined Bumiputra Merchant Bankers Berhad under Corporate Banking in 1989. She does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. She has not been convicted for any offence within the past five years nor has she been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. • In 1994, she joined CIMB Investment Bank Berhad (CIMB Investment Bank) and has been with CIMB Group Holdings Berhad (CIMB Group) for 25 years until her retirement from CIMB Investment Bank as its Chief Executive Officer in March 2019. Throughout her tenure with CIMB Group, Dato’ Kong has contributed significantly to entrenching CIMB as one of the top investment banking houses domestically and across ASEAN. • Dato’ Kong has held various capacities within CIMB Group. Her roles include Group Head of Investment Banking Division for the Asia Pacific region, Group Head of Private Banking, Head of Senior Bankers Group, Chairperson of CIMB Private Limited Sri Lanka and Commissioner on the Board Commissioners of CIMB Securities Indonesia. • Dato’ Kong is also an Independent Non-Executive Director of AmInvestment Bank Berhad, a wholly-owned subsidiary of the Company. • She is a Director of Malaysia Venture Capital Management Berhad. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  120. 118 Profile of Company Secretary KOID PHAIK GUNN Group Company Secretary Malaysian Female 54 Years Old 9 March 2010 10 Years Qualification (s) • Fellow, Institute of Chartered Secretaries and Administrators (ICSA) • Bachelor of Law, University of London, United Kingdom Directorship(s) in Listed Issuers None Experience • Koid Phaik Gunn has more than three decades of experience in corporate secretarial practice. Ms. Koid joined AmBank Group in 1993 as Company Secretary of AmSecurities Sdn Bhd, then the stockbroking arm of AmBank Group. • In 2004, she moved to the Group Legal and Company Secretarial Department as Deputy Group Company Secretary. She has been the Group Company Secretary of AmBank Group since 2009. • Prior to joining AmBank Group, Ms. Koid was in company secretarial practice for nine years. Declaration She does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. She has not been convicted of any offence within the past five years nor has she been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  121. 119 Profile of Group Senior Management DATO ’ SULAIMAN BIN MOHD TAHIR JAMIE LING Group Chief Executive Officer AmBank Group Group Chief Financial Officer AmBank Group Malaysian Male 57 Years Old 23 November 2015 Malaysian Male 51 Years Old 1 June 2017 Qualification(s) Qualification(s) • Bachelor of Accounting, RMIT University Australia • Chartered Banker, Asian Institute of Chartered Banker • Bachelor of Arts (Honours) in Economics and Accounting, University of Newcastle Upon Tyne, United Kingdom • Fellow, Institute of Chartered Accountants England and Wales, United Kingdom • Member, Association of Chartered Certified Accountants • Alumni, Executive Management Programmes of Templeton College, Oxford University, and INSEAD Responsibilities Dato’ Sulaiman bin Mohd Tahir, the Group Chief Executive Officer of AmBank Group, oversees the management of all Group businesses, to ensure sustainable growth and long-term value creation for shareholders, customers, employees and other stakeholders. Experience With a wealth of experience backed by more than three decades of spearheading growth in the Malaysian banking industry, Dato’ Sulaiman has introduced a new paradigm at AmBank Group through transformational efforts premised on innovation. With a strong commitment to embracing digital advances in the banking industry, Dato’ Sulaiman has put in place multiple initiatives to accelerate the Group’s digital transformation and ensure AmBank is at the forefront of digital adoption. Thanks to Dato’ Sulaiman’s leadership and the strong AmBank talent pool, today, the Group is an award-winning bank delivering leading-edge banking solutions as well as an enhanced customer experience as a result of its transformation. Dato’ Sulaiman started out his career with an accounting firm, which later became PricewaterhouseCoopers, before joining the Bank of Commerce in 1987. Dato’ Sulaiman has held various key positions in an ASEAN bank before joining AmBank Group. Directorship(s) In Listed Issuers None Responsibilities Jamie Ling, as the Group Chief Financial Officer, manages the full spectrum of AmBank Group’s finance. He assumes the responsibility of overseeing the Group’s financial strategy and implementation, as well as the Group’s business strategy. Experience Jamie has garnered more than two decades of regional and international banking experience across Asia and Europe. His in-depth commercial and financial experience covers key roles held in treasury, finance, risk management, and sales in international banking institutions. After being qualified as a Chartered Accountant in London, Jamie joined HSBC Bank’s headquarters in London before moving into Standard Chartered Bank where he was responsible for leadership roles in Malaysia, the United Kingdom, and North East Asia. Jamie was the Regional Chief Financial Officer of Standard Chartered Bank for Greater China and North East Asia, managing the finance function of offices in Hong Kong, Taiwan, China, South Korea, and Japan. He also served as a Board member and Finance Director of Standard Chartered (Hong Kong) Limited, where Hong Kong was the largest market of the group. Directorship(s) In Listed Issuers None Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  122. 120 Profile of Group Senior Management RAJA TEH MAIMUNAH RAJA ABDUL AZIZ SEOHAN SOO Managing Director Wholesale Banking , AmBank Group Chief Executive Officer* AmInvestment Bank Berhad Malaysian Female 52 Years Old 7 February 2017 Malaysian Male 53 Years Old 1 July 2018 Qualification(s) • Bachelor of Laws LLB (Honours), University of East London, United Kingdom • Honorary Doctors of Law, University of East London, United Kingdom • Chartered Banker, Asian Institute of Chartered Banker • Chartered Professional in Islamic Finance, Chartered Institute of Islamic Finance Professionals Qualification(s) • Bachelor of Laws, University of Warwick, United Kingdom • Masters of Laws, University of Cambridge, United Kingdom • Barrister-at-Laws, Lincoln’s Inn, London, United Kingdom • Advocate and Solicitor of the High Court of Malaya Concurrent Roles • Board Member and Board Risk Committee Member, Kumpulan Wang Persaraan (Diperbadankan) • Advisor, Islamic Banking and Finance, World Islamic, Economic Forum Foundation Responsibilities As the Chief Executive Officer of AmInvestment Bank, Seohan is responsible for stewarding the investment bank’s full range of integrated solutions and services, encompassing corporate finance and M&A advisory, equity capital markets, debt and sukuk capital markets, as well as fund management, private banking and stockbroking services. Responsibilities Raja Teh Maimunah spearheads the Group’s Wholesale Banking division encompassing Group Treasury and Markets, Group Transaction Banking, Wholesale Banking Client Coverage, Corporate Banking and Credit Administration. He was instrumental in securing investment banking mandates for advisory/capital markets with AmInvestment Bank being consistently top three in the Malaysia Bonds League Tables over the last 17 years. Experience Raja Teh Maimunah carries more than 25 years’ experience in the banking industry with previous roles covering Investment Banking, Islamic Banking and Digital Banking. Her expertise encompasses corporate and transaction banking, Islamic financing and investments, digital payment and collection solutions, equity and debt origination, equity sales, mergers and acquisitions, proprietary investments, initial and secondary public offerings, asset-based securitisation and debt restructuring and recovery. Experience Seohan has more than 25 years of investment banking experience at both foreign and local banks. He has been instrumental in building AmBank’s leadership in fixed income covering debt origination, structuring, distribution and treasury markets. Under his stewardship, the Capital Markets Group has been at the forefront of innovation in the bond and sukuk markets, spearheading major infrastructure development financing transactions such the MRT project, various power plants and tolled roads. Prior to her current role, she was the Chief Executive Officer of AmInvestment Bank and prior to that she was the Managing Director and Chief Executive Officer of Hong Leong Islamic Bank, as well as the Chief Operating Officer of Digital Innovations & Transaction Banking of the Hong Leong Bank Group. The other roles she had held include Global Head, Islamic Markets at Bursa Malaysia Berhad; Chief Corporate Officer and Head, International Business, Corporate and Investment Banking at Kuwait Finance House (Malaysia); Senior Director at Bank Alkhair (Bahrain); Associate Director at CIMB Investment Bank and Senior Vice President, Investment Banking at RHB Investment Bank. She spent her early years with KPMG Peat Marwick Consultants, before transitioning to the banking and finance industry. AmInvestment Bank has been consistently ranked top three in the fixed income origination and fund management businesses and has garnered more than 30 awards in 2019 conferred by The Asset, IFR Asia and RAM Ratings, amongst others. Directorship(s) In Listed Issuers None Declaration She does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. She has not been convicted of any offence within the past five years nor has she been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. Seohan is a Council Member of the Malaysian Investment Banking Association, a Member of Financial Markets Association Malaysia and an Associate Member of the Asian Institute of Chartered Bankers. He also holds a Capital Market Services Representative’s License under the Capital Markets and Services Act 2007. Directorship(s) In Listed Issuers None Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has any public sanction or penalty been imposed against him by any relevant regulatory bodies during the financial year ended 31 March 2020. * Resigned effective 1 July 2020 AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  123. 121 Profile of Group Senior Management AARON LOO CHRISTOPHER YAP HUEY WEN Managing Director Retail Banking , AmBank Group Managing Director Business Banking, AmBank Group Malaysian Male 47 Years Old 1 September 2019 Malaysian Male 47 Years Old 2 February 2017 Qualification(s) Qualification(s) • Bachelor of Engineering in Computation with First Class Honours, Imperial College, London • Master of Science in Advanced Computation, Imperial College, London. • Bachelor of Science, Business Administration, St. Cloud State University, United States of America Responsibilities Responsibilities Aaron oversees AmBank Group’s Retail Banking division and is responsible for the development and execution of AmBank’s retail banking strategy encompassing both individuals as well as small businesses. His area of responsibility covers business and strategic planning, channel management, product development, customer experience and care as well as operations and credit management. Christopher Yap steers AmBank Group’s Business Banking division with core focus on growing the Small and Medium-Sized Enterprises (SMEs) and Commercial Banking segments. He takes charge of strategy development and execution to expand the Group’s presence and market share in the entrepreneurial and SME sector through marketresponsive products, business efficiency solutions, and service excellence. His current area of focus is to strengthen AmBank’s position in the affluent, mass affluent and SME segments through development of integrated value propositions delivered via enhanced channels both physical such as branches and relationship managers or virtual ones via digital banking and call centres. Over the past 3 years, Business Banking’s revenue has grown at a Compound annual growth rate of 21.6%. He is also working on developing innovative new solutions for customers through partnerships and alliances. Christopher Yap holds more than two decades of financial services experience, with a major portion spent on commercial and SME segments. He began his career in trade services with Citibank Malaysia and was the Head of SME Banking at Alliance Bank where he was instrumental in growing the bank’s SME business to a 25% share of the bank’s revenue. Experience Aaron Loo is a veteran banker with more than 20 years of experience in the financial services sector. He started his career in McKinsey & Company before moving to the financial services industry where he held senior roles in CIMB, Alliance Bank, Standard Chartered and OCBC Bank. Aaron was most recently the Digital Transformation Officer working in OCBC’s head office in Singapore where he drove the digital transformation efforts for OCBC’s Malaysian franchise. Prior to that, Aaron was the Country Head of Retail Banking for Standard Chartered Bank Malaysia where he grew the Priority Banking and Retail SME businesses whilst leading the Bank’s digital transformation programme. Experience Directorship(s) In Listed Issuers None Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. Directorship(s) In Listed Issuers None Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  124. 122 Profile of Group Senior Management EQHWAN MOKHZANEE BIN MUHAMMAD DATUK ISWARAAN SUPPIAH Chief Executive Officer AmBank Islamic Berhad Group Chief Operation Officer AmBank Group Malaysian Male 44 Years Old 1 April 2015 Malaysian Qualification (s) • Bachelor of Economics (Hons), University of Cambridge, United Kingdom • Masters of Economics (Hons), University of Cambridge, United Kingdom • Fellow, The Institute of Chartered Accountants in England and Wales (ICAEW) • Chartered Accountant, Malaysian Institute of Accountants (MIA) • Chartered Banker, Asian Institute of Chartered Bankers (AICB) • Chartered Professional in Islamic Finance, Chartered Institute of Islamic Finance Professionals (CIIF) Others • Member, Industry Advisory Panel of Azman Hashim International Business School, Universiti Teknologi Malaysia (UTM) • Professor of Practice, The International Centre for Education in Islamic Finance (INCEIF) (2019) Responsibilities Eqhwan manages and oversees AmBank Islamic and is also responsible to chart its strategic direction. Experience Eqhwan has more than 20 years of corporate and financial services experience. He started his career with PricewaterhouseCoopers in London before joining the corporate advisory practice of PricewaterhouseCoopers in Kuala Lumpur. Prior to joining AmBank Islamic, Eqhwan worked with local and foreign banks, and in the corporate sector, where he gained experience in inter alia business development, corporate management, debt capital markets, corporate finance, corporate banking, financial advisory, real estate investment and international business. He has developed award-winning and innovative Islamic financial structures, and authored research papers on Islamic finance. Eqhwan is the Chairman of the industry-level VBI Working Group to develop sectoral guides in relation to environmental and social risks. In 2019, Eqhwan was conferred the Best Islamic Banking CEO Malaysia Award by Global Banking & Finance Review. He was also named as the Islamic Banker of the Year 2019 by Global Islamic Finance Awards. Directorship(s) In Listed Issuers None Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. Male 56 Years Old 2 February 2017 Qualification(s) • Member, Malaysian Institute of Certified Public Accountants • Member, Malaysian Institute of Accountants • Member, Financial Planning Association of Malaysia Responsibilities Datuk Iswaraan Suppiah is in charge of both Group Information Technology and Operation (GIOD); and the Digital Banking divisions, mandated to institutionalise digitalisation and information technology within the Group’s operations. He oversees and ensures, among others, the effective rollout of the Group’s digital blueprint, AmDigital. Experience Datuk Iswaraan Suppiah has comprehensive experience in banking operations, equity, audit, and information services. His three-decade career began in audit with the accountancy firm Arthur Anderson, before joining the Bank of Commerce in 1991. He joined CIMB Securities subsequently in 1994 where he held various roles in operations, equity risk, strategic risk and compliance. He became the Executive Director of Operations, prior to moving to the parent company, CIMB Merchant Bank, in 2000. Datuk Iswaraan was appointed to Group Chief Information and Operations Officer for CIMB Group, where he managed the bank’s digital transformation, information system and banking operations across all businesses and geographies. His core emphasis centred on digitalising the bank through strategic application of technology and innovation. Directorship(s) In Listed Issuers None Declaration He does not have any conflict of interest or any family relationship with any Director and/ or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  125. 123 Profile of Group Senior Management FARADINA BINTI MOHAMMAD GHOUSE JEROEN THIJS Group Chief Compliance Officer AmBank Group Group Chief Risk Officer AmBank Group Malaysian Female 50 Years Old 15 March 2016 Netherlands Male 53 Years Old 1 January 2017 Qualification (s) Qualification(s) • Chartered Banker • Bachelor of Management (Honours), University of Science, Malaysia • Masters of Business and Finance, Erasmus University Rotterdam, Netherlands Responsibilities Responsibilities Faradina binti Mohammad Ghouse is responsible for overseeing the Group’s compliance function and ensuring enterprise-wide compliance with all internal and external policies, legal frameworks and regulations. Her role includes effective management of compliance risk and reinforcement of ongoing efforts to uphold the highest standards of integrity across the Group’s businesses. Jeroen Thijs is charged with strategising, monitoring, identifying, and enforcing the Group’s risk management framework to safeguard the Group’s financial, operational, market, and reputational integrity. He also plays the crucial role of supporting the Group’s growth strategy and endeavours by ensuring that sound risk practices and business outcomes are achieved. Experience Experience Faradina has 26 years of experience in the Malaysian, regional and global financial industry, covering Anti Money Laundering (AML) operations, audit, trade operations, and securities and fund services. She began her career as a dealer representative with a stockbroking firm, before joining Citibank Malaysia as a Management Associate. She then took on the role of Account Manager for Citigroup Securities & Fund Services Malaysia and was later promoted to Head of Operations, for Citigroup Securities & Fund Services and Trade Operations for Citibank Berhad. Following that she assumed the role of Audit Manager for Citigroup’s APAC Audit & Risk Review division based in Singapore. She then returned to Malaysia as the Head of Operations for Citigroup’s AML Transaction Monitoring Operations Hub, based in Kuala Lumpur. Prior to joining the AmBank Group, she was appointed Citigroup’s Global Head of Transaction Monitoring Standards and Training for AML Operations. Directorship(s) In Listed Issuers Jeroen began his career as a credit analyst with Rabobank International in Singapore, before moving to senior roles with ABN AMRO Bank in Japan, Singapore, the Netherlands, and the United Kingdom. Prior to AmBank, he has held key roles in reputed banking institutions, including as Country Chief Risk Officer for OCBC Bank Malaysia and as Chief Risk Officer for Bank Islam Malaysia. Directorship(s) In Listed Issuers None Declaration None He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. Declaration She does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. She has not been convicted of any offence within the past five years nor has she been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. 05Leadership Jeroen Thijs has worked across Asia and Europe in his over 28 years of experience in risk management, corporate banking, structured finance, and treasury functions. Having worked in Malaysia since 2009, he has garnered considerable exposure and insights into the Malaysian conventional and Islamic banking models and risk landscape. 06 Sustainability Report 07 Additional Information He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. INTEGRATED REPORT 2020
  126. 124 Profile of Group Senior Management PENELOPE GAN SHAMSUL BAHROM BIN MOHAMED IBRAHIM Group Chief Human Resource Officer AmBank Group Group Chief Internal Auditor AmBank Group Malaysian Female 43 Years Old 1 March 2018 Malaysian Male 45 Years Old 25 September 2017 Qualification (s) Qualification(s)/Credential(s) • Bachelor of Commerce, University of Melbourne, Australia • Bachelor of Science (Honours) in Finance and Accounting, University of Salford, Manchester, United Kingdom • Masters of Business Administration, University of Strathclyde, Glasgow, Scotland • Chartered Banker, Asian Institute of Chartered Bankers • Certification for Bank Auditors (CBA), Asian Institute of Chartered Bankers • Qualified Risk Auditor (QRA), Institute of Enterprise Risk Practitioners • Member, Institute of Internal Auditors (IIA), Malaysia • Member, Asian Institute of Chartered Bankers • Chairman of Chief Internal Auditors Networking Group, Asian Institute of Chartered Bankers (2019-2020) Responsibilities Penelope Gan holds the important role of strategising, developing, and implementing AmBank Group’s human capital management to meet the organisation’s overall business objectives and transformation milestones. Some of the key aspects which falls under her purview include manpower planning, organisational and performance management, talent development and succession management, engagement and change management, as well as compensation. She provides strategic counsel and leadership on human capital issues and defines plans to enhance the bank’s human capital performance to the executive management team, shareholders, and the Board of Directors. Experience Penelope garnered more than two decades of experience covering the full spectrum of human resource function with tract record of leading organisational transformation and post-merger and acquisition turnaround programmes. She joined AmBank Group in October 2014 as the Head of Group Rewards and Performance Management to drive market-competitive rewards and compensation practices. Responsibilities Shamsul Bahrom bin Mohamed Ibrahim is tasked with providing insights into AmBank Group’s overall governance systems of internal control, and the corresponding compliance culture within its business operations. The primary role of the Group Internal Audit function is to protect the assets, reputation and sustainability of AmBank Group and as the Group Chief Internal Auditor, Shamsul facilitates Board and Management oversight by ensuring the effectiveness of the systems of internal control, including compliance with relevant laws and regulations as well as recommending the required risk mitigation measures. Experience Identified as one of the Group’s talent under the Leadership Enhancement and Acceleration Programme (LEAP), she was appointed Deputy Group Chief Human Resource Officer. Shamsul has over 20 years of internal auditing experience, having joined AmBank Group as an executive in 1999 and had rose through the ranks to lead the Group’s Internal Audit Division. Throughout the years, he has headed the audit teams for various business units within the Group. Prior to his current appointment, he was the Deputy Group Chief Internal Auditor and Portfolio Audit Head for Wholesale Banking, Markets, and Fund Management Division. Shamsul is also the current Chairman of the Chief Internal Auditors Networking Group (CIANG), an expert networking group established by the Asian Institute of Chartered Bankers’ (AICB) to enhance the professionalism, effectiveness and importance of internal audit function in the financial services industry. Directorship(s) In Listed Issuers Directorship(s) In Listed Issuers None None Declaration Declaration She does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. She has not been convicted of any offence within the past five years nor has she been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. Her role expanded to include Group Organisation Development in 2015, where she helmed the Group’s Human Resources Center of Excellence. In this capacity, she renewed the Group’s talent and succession management, mapped the Group’s workforce of the future blueprint, reenergise employee engagement programmes and kick started the employee sustainability agenda, while supporting the occupational, health, safety and environmental agenda. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  127. 125 Profile of Group Senior Management DEREK LLEWELLYN ROBERTS RAMZI ALBERT TOUBASSY Chief Executive Officer AmGeneral Insurance Berhad Chief Executive Officer AmMetLife Insurance Berhad Australian Male 48 Years Old 17 September 2014 United States Male 52 Years Old 19 September 2014 Qualification (s) Qualification(s) • Bachelor of Business Science, University of Cape Town • Postgraduate Diploma in Accounting, University of Cape Town • South African Institute of Chartered Accountants (SAICA) • Bachelor of Arts in Political Science, Georgia State University, United States of America • Masters of Arts in International Relations, Georgia State University, United States of America Responsibilities Responsibilities Derek is responsible for delivering the strategic growth, direction, distribution and performance of the general insurance business of AmBank Group. Ramzi Albert Toubassy is responsible for shaping the transformational growth of the AmMetLife business in Malaysia to deliver sustainable profitability and shareholder return, while ensuring operational efficiency and product innovation in the highly competitive insurance industry in Malaysia. Experience Derek holds more than 17 years of experience in the insurance and financial sector with previous tenures in South Africa, the United States, the United Kingdom, Australia, and Malaysia. Before his appointment as the Chief Executive Officer of AmGeneral Insurance, his extensive and proven hands-on knowledge in the insurance industry landed him the role of leading a large-scale transformation programme within the claims operation of Insurance Australia Group’s (IAG) Direct Insurance Division in Australia. Experience Ramzi has wide-ranging expertise in the insurance industry with over 24 years of experience encompassing key roles in globally reputed insurance companies. He began his insurance career in 1996 with American International Group (AIG), before joining MetLife in 2012 and became the Head of Face-to-Face Distribution for the European, Middle Eastern, and African markets. Derek’s notable prior positions include Chief Financial Officer of a joint venture within IAG and the Head of Short Tail Claims for Direct Insurance, IAG, a member of the General Insurance Association of Malaysia (PIAM) Management Committee, as well as Chairman of the Claims Sub-Committee for PIAM. Derek is also one of the Board of Directors of ISM Insurance Services Malaysia Berhad (ISM). He also served in AIA for a period of eight years prior to joining MetLife, where he held key leadership roles including Deputy Chief Agency Officer in Hong Kong, Senior Assistant General Manager in Malaysia, Deputy General Manager and Director of Distribution in the Republic of Korea, and Chief Distribution Officer in Vietnam. Directorship(s) In Listed Issuers Directorship(s) In Listed Issuers None None Declaration Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  128. 126 Profile of Group Senior Management NOOR AZAM BIN MOHD YUSOF Chief Executive Officer AmMetLife Takaful Berhad Malaysian Male 49 Years Old 1 July 2017 Qualification (s) • Masters in Business Administration, University of Technology MARA, Malaysia • Bachelor of Science (Marketing), Northern Illinois University, United States of America • Chartered Professional in Islamic Finance (CPIF), Chartered Institute of Islamic Finance Professionals, Malaysia Responsibilities Noor Azam bin Mohd Yusof is tasked with formulating and implementing strategic growth plans to enhance the penetration and distribution of AmMetLife Takaful products in key Shariah-driven markets in Malaysia. Experience Azam has accumulated more than two decades of experience in the Malaysian insurance and Takaful industry, encompassing senior leadership roles as an established Takaful operator. Prior to joining AmMetLife Takaful, he was the Head of Sales and Distribution for HSBC Amanah Takaful (M) Berhad where he spearheaded business development and the effective delivery of the company’s sales and distribution strategy. Directorship(s) In Listed Issuers None Declaration He does not have any conflict of interest or any family relationship with any other Director and/or major shareholders of the Company. He has not been convicted of any offence within the past five years nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies during the financial year ended 31 March 2020. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  129. 127 Leading The Way For Value Creation Through Good Governance The Board and Management endeavour to chart our business direction and create maximum shared value across all spheres , led by our Vision that is manifested through our focus on: • Relationships with customers by providing them professional, reliable and the best service, thereby earning their trust and making them winners; • Performance, teamwork and collaboration to win in the market; • Growth for our customers, business and people; and • Leveraging domestic growth opportunities. We anchor on the AmBank Group’s purpose of helping individuals and businesses in Malaysia grow and win together. This is the backbone of our business conduct to deliver results premised on our Group’s Purpose. The Group’s core values (Principled, Proactive, Appreciative, Collaborative and Experimental) form the basis of right work ethics, conduct and behaviour of our employees and are propagated, operationalised and embedded across the Group. We respond to risks and opportunities, ensure relevance and sustainability of the business model, monitor the overall environment, the availability and quantity of capital inputs and acknowledge the needs of all stakeholders. This strategy is executed through our strategic focus areas and enables the Group to remain steadfast in managing our operations supported by good governance and simultaneously, meeting and delivering financial targets. Our Governance Policy Our Board is fully committed to ensuring that the Company continues to maintain the highest standards and levels of governance, ethics and integrity within the Group and strengthening the governance processes with a view to consistently enhance the value and protect the interests of all stakeholders. In the course of undertaking this, we ensure that we are also aligned with best practices based on the principles of Leadership and Effectiveness, Accountability and Communication with Stakeholders. The concept of good governance is essentially a cornerstone upon which the administrative structure of an organisation such as AmBank Group can be measured. Consequently it provides ample evidence of the robustness of our institutional frameworks such as risk management policies and procedures. These policies and procedures are regularly reviewed, enhanced and improved for the benefit and interests of all stakeholders. AmBank Group is a leading provider of banking and financial services group in Malaysia and embraces world class governance practices and globally recognised standards for sustainable business practices to ensure sustained strength of our retail banking portfolio and insurance business. Our banking business providing both conventional and Islamic financial solutions and services offers corporate finance and advisory services, restructuring, futures market services among others. In so doing, we are resilient and at the same time, flexible in adopting new regulatory changes, responding and adapting to the challenging and competitive regional and global business environment. We believe that good governance with value-driven objectives as its mainstay, contributes to raising values through enhanced accountability, strong risk and performance management, transparency and effective leadership. Good corporate governance creates and sustains shareholder value; ensures that our behaviour is ethical and promotes positive outcomes for all stakeholders. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  130. 128 Leading The Way For Value Creation Through Good Governance Values-driven Objective of Our Board : Pillar of Sustainable Value-creation Value-driven objectives of our Board are rooted in corporate governance principles and best practices espoused in the MCCG 2017, reporting disclosures and increased compliance requirements (MMLR of Bursa Securities, Companies Act 2016 and other applicable regulations). The Board’s governance oversight is guided by its commitment to its responsibilities and governance objectives. It is a conscious commitment by the Board and management at every level of the organisation to lead with their values, connect them to good organisational practices and create an organisational culture that optimises performance, accountability and contribution. Effective Ethical Leadership Strong leadership is critical to value creation. The Board sets the tone with the Chairman leading the Group ethically, effectively and responsibly and actualising a robust governance framework that is sound, transparent and responsive. The value-driven leadership requires a high degree of stewardship and accountability. The Board is committed to strengthen our governance processes to ensure we are aligned with best practices and that our approach to disclosure is open, timely and transparent. The Board supports the Group in its implementation of the Group’s value-driven strategic objectives and achieving them. The required disclosures in respect of these are contained in this Integrated Annual report and other reports available at the Group’s corporate website at ambankgroup.com. Governance The Board is collectively responsible for delivering sustainable value through oversight of the management of the Group’s business. Governing Structures and Delegation The Board is guided by its Board Charter in discharging its duties and responsibilities. F urther details on Board Charter are available on the Company’s corporate website at ambankgroup.com The Board provides guidance and oversight to the Group on the management of risk and internal control and remuneration governance through its Board Committees. Sustainable Growth and Stakeholders Challenge and team work are essential features of the Board. In decision-making, Board members act with independence, competence, diligence, inclusivity, insight and courage. In providing leadership and vision to the Group, the Board ensures sustainable growth and delivery of the Group’s purpose and objectives for the benefit of all stakeholders. Strategy and Performance Stakeholder inclusivity is therefore key in maintaining a strong stakeholder relationship. The Board takes accountability for the Group’s performance. The Board sets the Group’s strategic aims and ensures that the necessary resources are in place to meet its objectives and review Management’s performance. AmBank Group’s strategy to achieve its Vision is key in order to drive sustainable value creation for all stakeholders. Performance of focus areas that have been identified is closely monitored. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  131. 129 Leading The Way For Value Creation Through Good Governance Collective Responsibilities of the Board The Board bears legal responsibility to govern the organisation . The Board directs and supervises the Group’s affairs in a responsible and effective manner. Board members have a collective responsibility and individual responsibility to all shareholders for the manner in which the affairs of the Company are managed, controlled and operated. The Directors are fully aware that individual Directors do not hold separate authority. They are cognisant that they have a duty to act in good faith and in the best interest of the Company. Our Board is collectively responsible in promoting the long term success of the Group in building a sustainable and profitable business whilst achieving strong returns for the shareholders. Delivery of sustainable value by the Board is through oversight of the management of the Group’s business and how it is managed, controlled and operated. The Group’s sustainability strategies are disclosed in the Sustainability Report of the 2020 Integrated Report of the Company. It provides shareholders with a more insightful view of the Group’s sustainability practices and performance in addressing sustainability risks and opportunities. When Board members merge their skills towards achieving the Group’s Vision, it creates a synergy that makes the whole Board greater than the sum of each individual’s contribution. The Board is committed to continuous improvement of the Group’s corporate governance principles, policies and practices and does so through awareness of evolving regulation and best practices. Risk Management Risks arising from a vibrant global business environment, ever-evolving geopolitical landscape, emerging cyber security threats and predominantly the unprecedented times arising from the COVID-19 pandemic are amongst the major challenges our business faces today in progressing with our ultimate goal of growing shareholders’ value in a sustainable and visionary manner. The Board’s oversight commitment, supported by the Risk Management Committee (RMC), is towards nourishing a rich risk organisation culture with seamless integration into the overall Group’s decisioning, operations and business processes. The RMC recognises the criticality of risk management for the Group to have an effective and evolving risk management system to ensure sustainable growth and profitability of the business. Key strategies are being prioritised and established to strengthen our risk resilience whilst supporting the Group’s strategic objectives through an effective system of risk management controls and tools. The pervasive challenges across the Group’s business segments requires us to be vigilant in our risk tolerance and readiness to continuously identify and manage new emerging risks to safeguard the Group’s growth sustainability and profitability, especially in the broader scope of ‘new normal’ business environment globally. Engaging with the Business on Strategic Matters Although the Board maintains its independence, the Board engages with Management on multiple levels. The Group CEO provides the Board with comprehensive feedback on the performance of the business across the Group through his CEO Report at each Board Meeting. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  132. 130 Leading The Way For Value Creation Through Good Governance Independence The Board is diverse in skills and experience . All Board members are persons of high integrity and calibre with diverse professional backgrounds with sound knowledge and understanding of the Company’s business. The Board comprises eight Directors, five of whom are Independent Directors (or 63% of the Board composition) who promote independent judgement and diverse mind-sets and opinions. All Directors are assessed annually via the Board Effectiveness Evaluation exercise. The Independent Directors assessed in the financial year under review, satisfied the independence criteria specified under the Bank Negara Malaysia (BNM) Policy Documents on Corporate Governance and the MMLR of Bursa Securities and therefore maintained their independent status. In line with the recommendation by the MCCG 2017, the Company has adopted a tenure policy whereby the total tenure of the Independent Directors is capped at nine years. All five Independent Directors have not served more than nine years. Board Diversity AmBank Group ensures that the mix and profiles of its Board members in terms of age and gender provide the range of perspectives, experience and expertise required to achieve effective stewardship and management. The Directors bring with them years of experience in managing sustainable business growth and collectively represent a formidable leadership with diversity of perspectives that support effective decision-making. The Group believes that the organisation is best served by a constantly evolving Board that has a combination of fresh perspective, diverse experience and knowledge. In the rapidly transforming and evolving business environment, diversity is important to remain relevant and sustainable. Diversity that embraces gender, race and ethnicity at Board level is a key consideration in our Board selection process. Nonetheless, while the Board acknowledges the importance of boardroom diversity, appointments to the Board shall always be based on merit. Presently, 25% of the Directors on the Board are women. The Board supports the government’s aspirational target of 30% representation of women directors and the Board is in the process of increasing its Board size with an additional female Director. As at the date of this report, 39% of the Top and Senior Management team are women. GFR Further details on Board Diversity can be found on pages 32 to 33 of the GFR 2020 AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  133. 131 Leading The Way For Value Creation Through Good Governance Board Skills Matrix and Experience The Board has members with a broad range of skills that can help create value in the interests of all stakeholders . With the appropriate mix of skills and experience the Board is assured that it is well equipped to guide and steer the Group’s strategy into the future and thereby create value. Industry knowledge/experience Communication & Stakeholder Management Strategic planning Marketing Business Management Information Technology Major Project Management Human Resources Finance/Accounting/Taxation Boardroom Experience Risk Management Environment & Sustainable Operations Corporate Governance International Experience Ensuring and Protecting Value AmBank Group applies risk management approach to scrutinise missed opportunities and recognize the need to take calculated risks. We are not risk averse nor do we necessarily have to take greater risks. But we have a good understanding of what risks are and how best to manage them. This means minimal control failures and an increased likelihood of achieving objectives and improved stakeholder value. Our strategies are in line with the Group’s overall risk management framework whilst incorporating changes in a vigilant and forward-looking manner where appropriate. Following the unprecedented COVID-19 pandemic, we will manage risk of the ‘new normal’ business landscape through enhanced monitoring and early warning tools for more effective credit management and portfolio asset quality monitoring as well as managing the risk tolerance level. This would include frequent assessment of portfolios and engagement with customers for all lines of businesses in order to gauge the impact on the various industries and forward economic recovery whilst remaining vigilant of emerging malware attacks. In addition, dynamic stress simulations are being conducted on asset quality across all lines of businesses for effective asset quality management to prevent surprises and dire impact towards the Group’s provisioning. Our risk governance and culture is driven across the Group through the “Three Lines of Defence” framework, with the motto “Risk is Everyone’s Responsibility”. The following are in place to support this framework. An effective Enterprise Risk Management Framework to ensure that risk management practices encompass the entire organizational structure. Strategies that address the full spectrum of risks, including industry specific, compliance, competitive, environmental, security, business continuity, strategic and operational. A culture where risk management practices are infused throughout so that strategy and decision-making evolve out of risk-informed process. A philosophy that focuses not solely on risk avoidance, but also on risk taking as means to value creation. An independent internal audit function. A Group of Corporate Governance Framework that monitors the application of the principles and practices of the MCCG and other regulatory requirements. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  134. 132 Leading The Way For Value Creation Through Good Governance Our Approach to Compliance We comply with and subscribe to various legislations and regulatory requirements , such as MMLR of Bursa Securities, MCCG 2017, Companies Act 2016, Capital Markets and Services Act 2007, Financial Services Act 2013, Islamic Financial Services Act 2013, Malaysian Financial Reporting Standards and International Financial Reporting Standards applicable to the Group and BNM Policy Document on Corporate Governance. Conflict of Interest Appropriate procedures and mechanisms are in place to ensure full and continuous adherence to these. A Director is prohibited from using his or her position or confidential or price-sensitive information to benefit herself or himself or any related third party, financially or otherwise. Our business compliance covers a wide range of ethical and regulatory areas. A strong compliance culture reflects a corporate culture of high ethical standards and integrity in which the Board and Senior Management lead by example. As a financial and banking services Group, we hold ourselves to high standards in carrying on business and observe at all times, both the spirit and the letter of the law and regulations. Directors are also required to inform the Board of conflicts or potential conflicts of interest that they may have in relation to particular items of business or other directorships. They must declare any actual or potential conflict of interest at the Board meeting where the matter is being transacted and discussed. The principles governing our ethical standards and compliance can be found within the Code of Conduct and Code of Ethics, Whistleblower Protection Policy, No Gift Policy, Trading in AmBank Shares Policy and the Related Party Transaction Policy. A Director may accept other Board appointments provided the appointments do not conflict with the Group and/or adversely affect the Director’s duties. A Non-Executive Director should not hold more than five directorships in listed companies. Values and Culture The Board is committed to a corporate culture that encompasses and embraces ethical conduct within the Group. Fair and Responsible Remuneration The Board strives to ensure that remuneration is fair and transparent, promoting positive outcomes aligned with legitimate expectations of all stakeholders. The Board sets the tone for governance within the Group. The Board believes that without the right culture to reflect the Group’s moral and ethical beliefs and standards, employees will have difficulty embracing the core values and behaviours which are the embodiment of this organisation. Remuneration of employees is linked to sustainable value creation objectives in line with the Group’s strategy. It is based on distinct performance targets and market benchmarking. We are cognisant that our culture journey will continuously evolve in the context of our overall strategy. As we move forward in an agile, digital, fast-paced customer-centred and highly competitive environment new mind-sets and capabilities will be required to manage and thrive in this changed corporate landscape. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  135. 133 Leading The Way For Value Creation Through Good Governance Driving Innovation Our Intellectual Capital is borne through the adoption of an innovation led culture which encourages innovative thought processes and approaches in meeting our customers ’ requirements. To remain relevant and competitive in this digital age the Board places innovation as one of its governance responsibilities given its strategic importance to create sustainable value. Engaging with Investors on Environment, Social and Governance (ESG) Matters We believe in maintaining the highest standards of responsible business practices and this is evident in the strong relationships we have with our stakeholders. Our engagement with stakeholders enables the Board to exercise constructive influence as and when appropriate and to protect the interests of our minority shareholders. By continuously engaging with our stakeholders, we are able to keep abreast of evolving social and environmental expectations. We use our stakeholders’ insights to fortify our business strategy with the ultimate aim of delivering value to society at large. Ethics and Human Rights An organisation must fundamentally add value for stakeholders by adopting a responsible business philosophy. At AmBank Group, we believe in doing business responsibly. This means doing business ethically. Responsible or ethical business is based on a trust relationship with stakeholders. The test of character and good corporate citizenship lies in whether an organisation behaves ethically during good as well as trying times. The Board assumes ultimate responsibility for AmBank Group’s ethics and performance. This responsibility is delegated to Management which uses various tools to fulfil its mandate. GFR 05Leadership Further details on various tools in place to fulfil the Board’s mandate can be found on page 38 of the GFR 2020 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  136. 134 Leading The Way For Value Creation Through Good Governance Our Board and Board Committees The Board provides leadership and strategic guidance to safeguard stakeholder value creation within a framework of prudent and effective controls . This makes it possible for the Group to assess and manage risk to ensure long-term sustainable development and growth. The Board is ultimately accountable and responsible for the performance and affairs of AmBank Group and ensures that the Group adheres to high standards of ethical behaviour. The Board Committees assist the Board in the discharge of its duties and responsibilities. Each Board Committee has a formal written Terms of Reference that are effectively delegated in respect of some of the Board’s responsibilities. The Board monitors these responsibilities to ensure effective coverage of and control over the Group’s affairs. GFR F urther details can be found in the Audit Examination Commitee Report on pages 45 to 49, Risk Management Committee Report on pages 41 to 44, Group Nomination and Remuneration Committee Report on pages 50 to 59 and Group Information and Technology Committee Report on pages 60 to 65 of the GFR 2020 AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  137. 135 Sustainability Report 136 138 139 142 144 152 164 191 195 Leadership Commitment Scope of Sustainability Reporting Sustainability Matters Sustainability Framework Sustainability Governance Responsible Banking Conscious Self-Conduct Positive Societal Impact GRI Content Index 202 Independent Assurance Statement 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  138. 136 Leadership Commitment “As a responsible corporate citizen, we are committed to improving our sustainability practices beyond the minimum regulatory requirements. Our sustainability agenda aims to make us more competitive, more resilient to disruptions, more flexible to change, more unified in our core values, and more accountable in the way that we treat people and the planet.” DATO’ SULAIMAN MOHD TAHIR Group Chief Executive Officer GROWING TRUST, CONNECTING PEOPLE The Group recognises that our financial outcomes are linked to our ability to manage environmental, social and governance (ESG) risks and opportunities. Our long-term success and continued relevance are dependent on the prosperity and trust of the communities we serve, and the well-being of the environment we operate in. An inclusive society that is built on human dignity and the responsible use of natural capital is essential for all of us to thrive. To grow the trust of our stakeholders and play our part as a responsible corporate citizen, we are committed to improving our sustainability practices beyond the minimum regulatory requirements. Our sustainability agenda aims to make us more competitive, more resilient to disruptions, more flexible to change, more unified in our core values, and more accountable in the way that we treat people and the planet. The Framework entails strengthening the Group’s sustainability governance structure where we will establish four key new advocacy groups internally, namely: • Group Sustainability Council, As a company driven by and for people, the well-being of customers, employees, communities and other stakeholders, as well as the environment, is crucial to sustaining our long-term performance. Through our material sustainability matters identified, we are more focused to mitigate ESG risks while maximising our positive impact. According to the latest MSCI ESG Ratings Assessment, which aims to measure a company’s resilience to long-term ESG risks, AmBank’s ESG rating has improved from BBB to A. AmBank Group’s commitment to sustainability is further demonstrated through active participation in the financial industry’s sustainability-linked committees, as elaborated on pages 150 to 151. In FY2020, we further developed the AmBank Group’s Sustainability Framework (Sustainability Framework or Framework) based on ESG and value-based intermediation (VBI) principles to guide our aspiration to become a more sustainable organisation. The Framework is aligned to the Group’s business strategies, and will support nine out of seventeen United Nations’ Sustainable Development Goals (UN SDGs) and the higher objectives of Shariah (Maqasid Shariah). AMMB HOLDINGS BERHAD 01 Overview of AmBank Group • Group Sustainability Department, • Sustainability Matters Sponsors, and • Sustainability Champions. The clear delineation of roles and responsibilities allows for improved decision-making, implementation and accountability to cohesively drive our sustainability ambitions. Our approach also underpins the Group’s business decisions. Increasingly, investors, regulators and customers are looking for the integration of environmental and social criteria into banks’ lending and investment strategies. As such, we incorporate ESG and VBI considerations into our business decisions. VBI aligns with Shariah principles of acting responsibly towards the environment, economy and society at large, which is an integral part of AmBank Group’s financial inclusion and responsible lending agenda. In FY2020, we continue to support the SMEs segment and also other underserved communities through financial literacy and inclusion schemes. Additionally, we established AmBank Group’s Green Financing Plan, which aims to build our capability in providing financing to businesses which support the well-being of the planet. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  139. 137 Leadership Commitment We are also implementing measures which support our customers through their financial challenges brought by the pandemic . Individuals and small and medium enterprises (SMEs) are allowed to defer their loans and financing repayments for six months to ease their cash flow burden. SERVING THE PEOPLE AND THE PLANET Our sustainability agenda is focused on connecting with our people. The long-term success and relevance of AmBank depend upon the dedication of our workforce. Securing, retaining and developing the right talent is essential to compete in the changing market. We continue to reshape the workforce to future-proof employees in line with the trends and challenges that lie ahead. In FY2020, we invested RM24.7 million into talent development programmes to upskill and develop our talent pool to meet the evolving skills set requirements. In addition to employees, we continue to contribute to the development of underprivileged communities. This is reflected in our corporate social responsibility (CSR) actions and through the AmGroup Foundation disbursements. We actively engage with communities to promote social mobility and empower people through education, health and socialrelated activities. We contributed RM1.8 million in community initiatives to help uplift underserved communities and contribute to their socio-economic development. Our philosophy of putting people first is reinforced amid the trying times of the COVID-19 pandemic. We have contributed a total of RM576,320 into COVID-19 relief efforts, such as channelling funds to MERCY Malaysia as well as distributing food to frontline healthcare workers. We are also implementing measures which support our customers through their financial challenges brought by the pandemic. Individuals and small and medium enterprises (SMEs) are allowed to defer their loans and financing repayments for six months to ease their cash flow burden. In safeguarding employees, we are enforcing a Work-from-Home policy to minimise their exposure to the virus, with 60% of our workforce technologically equipped to work at home. For mission-critical staff who has to work in the office, the business continuity plan was invoked requiring the teams to work from split locations and imposing movement restrictions between locations. To date, the Group has incurred RM2.7 million in ensuring staff safety and health, such as facilities on temperature scanning equipment, regular disinfection of work areas, provision of hand sanitizers and face masks, duplication of equipment and systems to facilitate working at split locations as well as applications to facilitate working from home. The future well-being of society is also dependent on the health of the environment. This is why we are making changes to our operations in an effort to reduce our carbon footprint and environmental impact. In FY2020, we have changed the lighting systems in our buildings at Wisma AmFirst, Damansara Fairway 3 and 17 branches to a more energy-efficient LED lighting system and we have also optimised our office space through a restacking exercise at Menara AmBank, which resulted in 11% reduction in carbon emission from our electricity consumption. Additionally, we entered into an agreement for the installation of a solar panel on the rooftop of AmBank’s Damansara Fairway 3 building to promote sustainable use of energy resources. For waste management, we have also launched the AmBank Group’s No Single-Use Plastic Programme in January 2020 to reduce our own single-use plastic consumption. We see sustainability as an on-going journey which the Group is committed to continuously undertake. While we look ahead on how to improve our abilities to advocate positively on ESG matters, we are also prioritising the well-being of our employees and financial protection for our customers. DATO’ SULAIMAN MOHD TAHIR Group Chief Executive Officer 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  140. 138 Scope of Sustainability Reporting At AmBank Group , we continue to integrate the principles of sustainability and Value-Based Intermediation (VBI) into our business goals and strategy as part of our aspiration to become a Top 4 bank in Malaysia. SUSTAINABILITY STATEMENT OF PURPOSE PRINCIPLES OF REPORTING AmBank Group’s business strategies and activities will consider the environmental, social and governance (ESG) impacts, including climate change risks, and ensure that adequate procedures in relation to anti-bribery/anti-corruption practices are in place, to ensure that the Group contributes to the greater good of our stakeholders (customers, shareholders, employees, regulators and the community) – without compromising AmBank Group’s financial objectives. As part of our commitment to publishing coherent and reliable sustainability disclosures, this statement adheres to the following principles: Inclusiveness Describes the sustainability expectations and interests of all stakeholders. REPORTING PERIOD Materiality Addresses the Group’s significant ESG impacts as well as stakeholders’ concerns. The sustainability disclosures highlighted in this Sustainability Report cover the period from 1 April 2019 to 31 March 2020 (FY2020), unless stated otherwise. We have also included data from the past three years, where possible, to compare our year-on-year (YoY) progress. Comparability Reports information and disclosures consistently to allow stakeholders to analyse our sustainability performance over time. REPORTING BOUNDARY REPORTING STANDARDS The Sustainability Report covers AmBank Group’s operations pertaining to its three main subsidiaries: AmBank (M) Berhad; AmBank Islamic Berhad; and AmInvestment Bank Berhad, hereinafter referred to as AmBank Group or the Group. The three subsidiaries account for more than 96% of AmBank Group’s total assets and most of our ESG impacts. The outcomes of our sustainability initiatives are labelled with the following icons: The scope of our sustainability disclosures adheres to the following local and international reporting standards, criteria and guidelines: Bursa Malaysia’s Main Market Listing Requirements on Sustainability Reporting The ACCA Malaysia Sustainability Reporting Guidelines for Malaysian Companies “In Accordance” with GRI Standards: Core Option. Environmental Impact AMMB HOLDINGS BERHAD Social Impact Governance Impact 01 Overview of AmBank Group IR 02 Key Messages The GRI content index for the report is shown on page 195. 03 Key Highlights 04 Management Discussion and Analysis
  141. 139 Sustainability Matters The sustainability of the Group relies on our ability to systematically manage sustainability matters that impact long-term stakeholder value creation . A year ago, we conducted another stakeholder engagement survey with customers, employees, suppliers, shareholders, directors and senior management to capture their key sustainability concerns. The questions in the survey mirrored the initial stakeholder engagement exercise conducted in FY2017, which acts as a baseline to benchmark in charting our progress. 1 Identification Collected in-depth inputs from stakeholder engagement exercise to identify their key concerns. The stakeholder feedback received in FY2019 was mapped against the ESG risks and opportunities that impact our operations and strategic objectives, resulting in ten sustainability matters. In line with our new Sustainability Framework, we regrouped the identified sustainability matters into three themes that reflect AmBank Group’s sustainability efforts: Responsible Banking, Conscious Self-Conduct, and Positive Societal Impact. 2 Shortlist and 3 Validation Prioritisation and Approval Cross-checked and ranked the findings according to their importance to the business. These were mapped onto a materiality matrix to prioritise the top sustainability matters. Submitted the identified sustainability matters and matrix to the Group Management Committee for validation and Board for approval. Our sustainability efforts are designed to address the identified sustainability matters, thus allowing us to maximise our contributions and ESG-related performance in the long run. The materiality assessment is conducted every two years to allow time for our sustainability strategies to take effect. According to the materiality assessment, the Group’s sustainability strategies are focused on the following sustainability material matters, which are numbered according to their order of priority: Materiality Matrix of AMMB Holdings Berhad Responsible Banking Critical M1 M3 M2 Important M7 M4 : Customer Satisfaction M5 : Financial Inclusion & Responsible Lending M6 : Responsible Marketing, Product and Service Design M8 : Environmentally & Socially Responsible Investment Conscious Self-Conduct M5 M8 M10 :Data Security, IT Infrastructure & Digital Transformation M2 M9 M3 : Ethics, Governance & Compliance M4 :Conducive & Inclusive Workplace and Human Capital Development M7 : Responsible Sourcing & Procurement M10 : Energy, Water & Waste Management Medium Importance to Shareholders M6 M1 Positive Societal Impact Medium Important Critical M9 : Community Investment & Development Importance to AMMB Holdings 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  142. 140 Sustainability Matters MANAGEMENT APPROACH Sustainability Matters Business Context Risk Opportunities Digital technology and advancements continue to disrupt and transform the banking sector . Data breaches and cyberattacks on our IT infrastructure result in a loss of customer trust and confidence. Innovative financial products and solutions increase our competitive edge and market share. Customers’ banking expectations are rapidly evolving for faster and more seamless customer experience. Insufficient customer processes and slow complaint resolution lead to frustrations and poor reviews from customers. A seamless and simple customer journey enhances customer satisfaction and brand value. Good corporate governance with transparency, accountability and integrity is key to achieving business objectives. Corruption and unethical behaviour within the Group result in regulatory fines and penalties. A safe and efficient grievance mechanism enables stakeholders to safely report against misconduct and safeguards the Group’s reputation. The future of banking requires a skilled and resilient talent pool, capable of adapting to changes in the sector and other external threats. An unsafe and unconducive work environment leads to workplace health and physical injuries, resulting in lower productivity. A workforce that is regularly upskilled and trained with future-ready skills increases our long-term performance, competitive edge, and readiness to cope with rapid changes. Financial Inclusion & Responsible Lending Financially underserved communities and businesses are an untapped market that contributes to socio-economic resilience, whilst supporting businesses whose operations adversely impact the environment and society could impact the Group’s long-term longevity. Financing of unethical and environmentally and community destructive businesses tarnishes the Group’s reputation and branding as a responsible bank, and affect the Group’s own customers’ financial health. The financial development of start-ups and SMEs contributes to economic growth and new business opportunities, whilst the demand for funding for environmentallyfriendly businesses is tremendous. Responsible Marketing, Product & Service Design The loyalty and trust of customers rely on our ability to deliver products and services that protect their financial best interests. Products and services that financially exploit customers result in the loss of customers to competitors. Fair and transparent content on marketing and product solutions improves our brand value and customer base. The ESG impact of the Group extends to supply chain activities and its procurement decisions. Unethical practices and environmental non-compliances by suppliers may lead to financial and non-financial losses. Sourcing from local businesses and SMEs contributes to the country’s socioeconomic growth and well-being. Environmentally & Socially Responsible Investment There is an increasing demand for responsible and ethical investments from an increasingly environmentally- and socially-conscious market. A lack of innovative ESG investment products may cause socially-conscious clients to seek the services of competitors. Supporting clients who embark on green and sustainable projects help grow the sustainability market while generating financial returns. Community Investment & Development Contribution to social development requires t h e emp o werme n t o f a ll communities for inclusive economic growth and shared prosperity. The absence of effective community development and social programmes creates the perception of being a purely profit-oriented bank. Strong community investments and volunteer opportunities foster a sense of purpose and fulfilment for employees. Energy, Water & Waste Management Climate change and environmental degradation directly impact the environment necessary for the Group to operate. Inefficient energy consumption results in high operating costs and contributes to the climate emergency. Continuous improvements in environmental management enhance AmBank Group’s image as a caring bank. Data Security, IT Infrastructure & Digital Transformation Customer Satisfaction Ethics, Governance & Compliance Conducive & Inclusive Workplace and Human Capital Development Responsible Sourcing & Procurement AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  143. 141 Sustainability Matters Employees Customers Suppliers Community /NGO/Civil Society Government & Regulators Our Response Stakeholders Affected • Integrate the latest technology and digital advancements into our services. • Implement a Cyber Security Maturity Plan to continuously strengthen our IT security. IR Refer to page 152 • Provide regular Service Excellence training programmes to frontliners. • Conduct customer engagement to identify challenges and improve customer experience. IR Refer to page 157 • Implement stringent and adequate frameworks, policies and procedures that institutionalise good practices, particularly in relation to anti-bribery/anti-corruption practices. • Establish a grievance system that effectively protects stakeholders and the business. IR Refer to page 164 • Conduct relevant training and development programmes that minimise the skills gap within the workforce. • Introduce welfare and well-being initiatives that protect the health and safety of employees, including occupational safety and health (OSH). • Implement measures to mitigate employees’ exposure to COVID-19, such as Working-from-Home, restricting movements, working at split locations. and regular disinfection of work areas. IR Refer to page 167 • Adopt the principles of Value-Based Intermediation (VBI). • Implement AmBank Group’s Responsible Financing Strategic Plan. • Temporarily defer or restructure instalment payments for eligible customers affected by the economic impact of COVID-19. • Offer a Special Relief Facility for collateral-free financing to support SMEs during the pandemic. IR Refer to page 159 • Drive digital marketing that utilises data analytics to deliver personalised experiences. • Leverage social media channels to promote financial education and new products and services. IR Refer to page 161 • Implement the Supplier Code of Conduct (SCOC) and embed it into the vendor onboarding process. IR Refer to page 180 • Adopt Securities Commissions Malaysia’s (SC) Principles of Socially Responsible Investments (SRI). • Integrate the ASEAN Green Bonds Standards (GBS) into investment decisions. IR Refer to page 163 • Continue to fund and support AmGroup Foundation since 1985, contributing to programmes that drive social empowerment. • Invest in Corporate Social Responsibility (CSR) projects that enable social mobility and development. IR Refer to page 191 • • • • IR Refer to page 182 Establish AmBank Group’s Environmental Policy. Introduce AmBank Group’s Environmental Practice Guides. Set targets and key performance indicators (KPIs) to track our environmental performance. Launch of the No Single-Use Plastic Programme as part of the Waste Management initiatives. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  144. 142 Sustainability Framework Our ability to remain profitable and relevant is linked to the long-term well-being of the people we serve and the environment in which we operate . With this in mind, during FY2020 we designed the Sustainability Framework which will be effective from FY2021. The Framework reflects our commitment to contribute to global sustainability targets vis-a-vis the UN SDGs. In addition to the UN SDGs, this Framework aligns with AmBank Group’s strategic objectives and values, as well as the five principles of Maqasid Shariah. These goals form a blueprint for a better and more sustainable future for critical areas incorporating ESG considerations. Methodology on UN SDG Alignment: To maximise our UN SDG contributions, we are focusing on the goals that are relevant to our business priorities and activities. We assessed each SDG and their corresponding indicators to determine the best way which we can contribute to achieving these goals. This has allowed us to narrow down and prioritise nine out of 17 UN SDGs, as shown below. Contribute by implementing relevant community and development initiatives Contribute by organising innovation lending programmes and support initiatives that develop the SME sector Contribute by promoting employee well-being and ensuring a conductive and healthy workplace Contribute by supporting sustainable infrastructure and financial inclusion initiatives Contribute by equipping our employees with valuable skills, as well as raise the standards of education through Financial Industry Collective Outreach (FINCO) Contribute by reducing the negative impact of our own environmental footprint Contribute by improving gender equality within the Group, including at influential levels Contribute by supporting fair and equitable workplace and ensuring a strong Ethics and Compliance culture throughout the Group Contribute by protecting labour rights and providing a supportive work environment for our employees, and enhancing the accessibility of our products and services Guided by our Sustainability Framework, we are able to play an active role in addressing ESG challenges faced by the world today. Moving forward, this Framework will include the formalisation of Group sustainability targets and KPIs across the organisation, which allows us to maximise our ESG impacts according to our three sustainability themes when addressing AmBank Group’s sustainability matters. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  145. 143 Sustainability Framework GROUP SUSTAINABILITY APPROACH Sustainability Statement Sustainability Themes Sustainability Matters AmBank Group ’s strategies, activities and portfolio will consider the environmental, social and governance (ESG) impacts, including climate change risks, and ensure that adequate procedures in relation to anti-bribery/anti-corruption practices are in place – to ensure that they contribute to the greater good of our stakeholders (e.g. customers, shareholders, employees, regulators and the community) – without compromising AmBank Group’s financial objectives. Responsible Banking We are committed to conducting our business and engaging with customers in a responsible manner. M1 M2 M3 Conscious Self-Conduct We are committed to ensuring that our own conduct reflects our aspiration to become a sustainable organisation. M4 M5 M6 Positive Societal Impact We contribute to a more sustainable future by considering how we interact with the wider community. M7 M8 M9 M10 UN SDGSs Maqasid Shariah Protection of Protection of Protection of Protection of Protection of FAITH (DIN) LIFE (NAFS) INTELLECT (AQL) LINEAGE (NASL) PROPERTY (MAL) Core Values 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  146. 144 Sustainability Governance GOVERNANCE STRUCTURE Board Our governance structure streamlines sustainability decisions and strategies for improved efficiency . As we progress on our sustainability journey, we are continuously reviewing and strengthening our sustainability governance approach. In FY2020, we are working to introduce four new advocacy groups: • Approves and validates all sustainability-related matters and decisions. • Takes accountability for the Group’s sustainability journey and integrates sustainability matters into the formulation of the group-wide strategy, including oversight and decision-making. • Strategises on building capacity and expertise in sustainability and impact-based assessments. Group Sustainability Council; Group Sustainability Department; Risk Management Committee Sustainability Matters Sponsors; and • Manages ESG risks group-wide, which includes overseeing the formulation and management of the ESG risk aspects within the Group Risk Appetite Framework and asset writing strategy. Sustainability Champions. Shariah Committee The new governance structure aims to enhance our approach to sustainability. The clear delineation of responsibilities across the Group enables better accountability, transparency and implementation of sustainability decisions. In the next financial year, sustainabilityrelated KPIs will also be set for mission-critical positions with sustainability-related criteria embedded in the scorecards of performance assessments. • Governs all matters related to Shariah, including oversight accountability on Shariahrelated sustainability issues and advising the management and the Board accordingly. Group Sustainability Council (GSC) • Provides a platform for AmBank Group senior management to deliberate, monitor and drive the Group’s sustainability agenda. The Council is chaired by the Group Chief Executive Officer (CEO), with the CEO of AmBank Islamic acting as the alternate chairman. Board • Assists in the oversight of sustainability-related strategies and initiatives at Group. • Ensures effective integration of sustainability principles within the organisation. Shariah Committee* • Recommends and approves all sustainability-related policies, programmes and initiatives. Risk Management Committee • Manages the inclusion of sustainability-related KPIs in the Group’s scorecards. Group Sustainability Department Group Sustainability Council • Leads the development and implementation of broad-based, group-wide strategic sustainability initiatives. • Supervises the execution of strategies and initiatives in support of sustainability matters and ensure that it is in line with the Group’s sustainability strategies. Group Sustainability Department Sustainability Matters Sponsor (SMS) • Implement sustainability strategies on-the-ground, which includes the determination and tracking of performance metrics and targets. Sustainability Matters Sponsor (SMS) • Review the effectiveness of relevant policies, guidelines and processes based on sustainability matters and the implemented initiatives. Sustainability Function Sustainability Function • Seeks support from appointed Sustainability Champions to drive sustainability initiatives within their respective legal entities, divisions or departments. • Aligns all sustainability initiatives with the strategies and direction set by the GSC. * Applicable only for AmBank Islamic matters AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  147. 145 Sustainability Governance SUSTAINABILITY RISK MANAGEMENT At AmBank Group , we believe that there is a strong link between good governance and mitigating environmental and social risks. This is why we work to continuously integrate sustainability risks across all levels of the organisation. The Group Responsible Financing Strategic Plan aims to support AmBank Group’s long-term endeavours in becoming a responsible financier which includes the establishment of the ESG Risk Framework and the incorporation of environmental and social (ES) risk assessment into the credit assessment. We have demonstrated leadership in devising strategies and managing various risks and material matters. Below is our performance on leading global sustainability indices. 1 2 In 2019, AMMB received a rating of “A” (on a scale of AAA-CCC) in the MSCI ESG Ratings assessment. MSCI ESG Research provides MSCI ESG Ratings on global public and a few private companies on a scale of AAA (leader) to CCC (laggard), according to exposure to industry-specific ESG risks and the ability to manage those risks relative to peers. This is an improvement from “BBB” rating in the previous reporting year. The positive shift can be attributed to, inter-alia, our improved employee and talent management practices. 3 RAM Sustainability Sdn Bhd’s (RAMSus, formerly known as RAM Consultancy Sdn Bhd) Sustainability Rating, which evaluates a company or group’s sustainability performance based on all ESG themes defined in RAMSus’ Sustainability Rating Framework. In RAMSus’ Sustainability Rating Report for the Group dated 25 June 2019 for the financial year 2019, our sustainability rating was upgraded from Silver to Gold. The upgrade is primarily supported by the upward revision of the Group’s Environment Rating to Silver, from the previous Bronze. 4 FTSE Russell (the trading name of FTSE International Limited and Frank Russell Company) confirms AMMB Holdings has been independently assessed according to the FTSE4Good criteria, and has satisfied the requirements to become a constituent of the FTSE4Good Index Series. Created by the global index provider FTSE Russell, the FTSE4Good Index Series is designed to measure the performance of companies demonstrating strong ESG practices. The FTSE4Good indices are used by a wide variety of market participants to create and assess responsible investment funds and other products. WWF Sustainable Banking Assessment (SUSBA), which is a benchmarking tool that shows year-on-year changes and highlights progression or regression in banks’ performance on the integration of ESG considerations in their corporate strategy and decision-making process. KEY POLICIES AND GOVERNANCE GUIDELINES THAT ADDRESS SUSTAINABILITY MATTERS M1: Data Security, IT Infrastructure & Digital Transformation M2: Customer Satisfaction Privacy Notice on Personal Data Protection Act (PDPA) 2010 Code of Conduct – Treating Customers Fairly In line with the PDPA, this privacy notice reflects AmBank Group’s commitment to protect and safeguard customers’ personal data when entering into any transaction with the Group. The document describes the types of customer data obtained, how it is processed, and the customers’ right to withdraw consent to their data. It also highlights AmBank Group’s security arrangements in protecting customer data, which includes regularly reviewing and implementing up-to-date technical and organisational security measures. Guided by the PDPA, AmBank Group has achieved zero cases of data loss over the past three years. Our Code of Conduct stresses the importance of fair treatment and respect towards customers. Employees are required to demonstrate professionalism, transparency and integrity in all dealings with customers. Customers’ complaints received via our various feedback channels must also be resolved in a friendly, fast, fair and effective manner. We abide by the relevant guidelines in handling customer complaints and continue to leverage constructive feedback to enhance our products and services. AmBank Group Web Portal Security Statement This Security Statement applies to the Group’s website page regarding the security of users’ personal information collected and/or processed through the web portal, as well as the obligations of the user. The statement highlights our aim to maintain strict procedures and standards against unauthorised access to personal information. We constantly monitor developments in security and encryption technology to update our processes in line with industry standards. In FY2020, there were zero cases of online breaches through our website. 05Leadership 06 Sustainability Report 07 Additional Information Customer Service Charter – Service Standards The Charter outlines our key commitments and service standards in providing highquality service to AmBank Group customers. According to the Charter, employees are expected to understand the customer’s profile to anticipate their needs and preference, as well as deliver products and services as per the customer’s requirements. Additionally, our service team is required to deliver transparent and personable service, while also following an engagement model whereby the customer is kept aware of our multichannel options and accessibility. As a result, we achieved a 15-point improvement in Net Promoter Score (NPS), which indicates a customer’s willingness to recommend our products and services. INTEGRATED REPORT 2020
  148. 146 Sustainability Governance M3 : Ethics, Governance & Compliance Anti-Bribery & Corrupt Practices Policy The Anti-Bribery and Corrupt Practices (ABCP) Policy is formulated to ensure that business is conducted conforming to the highest level of integrity and ethics. All employees must comply with the relevant laws and regulations on anti-bribery and corruption. The policy represents AmBank Group’s stance of zero tolerance to bribery and corruption in any form, and serves to protect the institution from financial and reputational loss as a result of regulatory and/or enforcement censure and action. The policy is an essential component of the Group’s ABCP Framework in accordance with the requirements and obligations imposed under the Malaysian Anti-Corruption Commission Act 2009 (MACC) Act 2009 and Guidelines on Adequate Procedures issued pursuant to subsection (5) of Section 17A of MACC Act 2009. Whistleblower Protection Policy (WPP) We encourage openness, integrity and accountability in our culture, which is protected by the WPP. Our grievance mechanism provides a safe and reliable channel for stakeholders including customers, suppliers, and employees to voice grievances and report against malpractice without fear of repercussions. They are encouraged to voice out any misconduct such as dishonesty, fraud, corruption, bribery or illegal practices, abuse of power, or conflict of interest involving the Group. This reporting year, we received five complaints and grievances through our whistleblowing channel, with 100% resolution within 90 days. Code of Conduct – Code of Ethics AmBank Group’s Code of Ethics, as highlighted in our Code of Conduct, reflects the Group’s firm commitment to uphold and maintain a high level of integrity, professionalism and ethical conduct. The Code applies to employees across all levels and provides a clear direction in conducting business, interacting with the community, government and business partners as well as general workplace behaviour. In FY2020, given the programmes we launched and the continuous tone-from-the-top as well as reminders on our Code of Conduct, the Bank did not have any cases of ethical misconduct. We have been very diligent in communicating the punitive action involved should there be any ethical misconduct. No Gift Policy AmBank Group strictly prohibits its employees from offering, soliciting, or receiving gifts in any form – between current or potential customers, vendors, agents and business partners – which could influence impartial judgement during decision-making. This is essential to protecting the Group’s reputation by countering potential conflicts of interest, bribery and corruption, as well as ensure that practices and dealings within the organisation are conducted ethically and professionally. This policy guides employees to keep within acceptable practices. Additionally, it creates an ethical and self-regulating culture that avoids any potential perception that the Group encourages or condones exchanges of favours for the personal gratification of any kind. This reporting year, there were 510 cases of allowable gift exchanges among employees, largely related to festive seasons gifts/fruits and memorabilia. from potential legal violations and/or regulatory non-compliance. The Senior Management team is responsible for communicating the Group Compliance Framework to all employees, as well as implementing appropriate actions for non-compliances. As a result, we achieved a higher number of escalations of potentially suspicious activities at the point of account opening or branch activities amounting to 210 reports a month. This is 40% more than the previous financial year, which demonstrates a higher level of awareness, compliance and monitoring effectiveness within the Group in FY2020. Additionally, we did not have any significant compliance breaches in FY2020. Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Framework The Group is resolute in working with and supporting regulators and law enforcement agencies to combat money laundering and other financial crimes. This is manifested in our Anti-Money Laundering (AML) and Counter Financing of Terrorism (CFT) Policy which defines the standards and procedures for prevention and detection of suspicious transactions. We deploy innovative and thorough investigations procedures to identify suspicious money flows and prevent the use of our banking channels and products to conduct illicit/illegal transactions. Know Your Customer (KYC), Customer Identification and Due Diligence Policy The objective of this policy is to conduct proper customer identification through reliable information and documentation, which allows for the proper assessment of a customer’s risk profile. KYC maintains a standardised approach to understanding the customer during onboarding, while also assisting in on-going due diligence reviews. Moreover, the policy stipulates stringent procedures to ensure that the Group only manages customers who have been properly verified and approved. Politically Exposed Persons (PEP) Policy The objective of the PEP policy is to identify and manage potential risks associated with onboarding and maintaining our dealings with PEPs, Politically Exposed Corporations (PECs), and Relatives and Close Associates (RCAs). These politically-associated groups are subject to Enhanced Customer Due Diligence processes, which involve robust assessment of, inter alia, reputational risk issues and risk mitigation. The assessment is conducted before the establishment of a banking relationship. In FY2020, the Group continues to not partake in any political party nor make any political donations. Trading in AmBank Group Shares Policy The Group’s Trading in AmBank Group Shares Policy is applied to directors and designated employees of AmBank Group when trading in the Group’s shares on Bursa Malaysia. The responsible individuals who have access to price-sensitive information relating to AmBank Group’s shares must not trade the shares until the relevant information is publicly available. Additionally, personnel who do not have access to price-sensitive information may also deal in the Group’s shares if they fully comply with the procedures set out in the Main Market Listing Requirements of Bursa Malaysia. Non-Permissible Business Activities for Financing Facilities Shariah Guidelines Group Compliance Framework Our Compliance Framework describes the various roles and responsibilities involved in compliance with regulatory guidelines and requirements, thus allowing for improved accountability. The responsible parties collectively oversee the management of compliance and risk to promote the safety and security of the Group’s processes and increasing awareness on the role of every employee to safeguard the Group. The framework details how to mitigate financial, reputational and operational risks arising AMMB HOLDINGS BERHAD 01 Overview of AmBank Group The guideline intends to explain the Shariah Non-Compliant activities, which is also known as the Shariah negative list. The criteria described in this policy are to be considered when providing financing facilities to non-retail customers under AmBank Islamic. Components of the Shariah negative lists include activities that cause detrimental harm to society and the environment, which are not allowed to be financed from a Shariah perspective. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  149. 147 Sustainability Governance M4 : Conducive & Inclusive Workplace and Human Capital Development Code-of Conduct – Employer of Choice Occupational Safety and Health (OSH) Policy Statement According to the Code of Conduct, AmBank Group’s two broad focus areas to become an Employer of Choice are: 1) to provide a work environment in which our people are valued and able to develop their skills and talent towards new challenges; and 2) to maintain and develop the skills, knowledge and capabilities that will assist in delivering good performance at work. The policy statement sets out to create a safe and healthy workplace within the Group. It stipulates the importance of complying with requirements under the Occupational Safety and Health Act 1994. All employees are expected to practise good safety habits and behaviour that align with the Group’s Occupational Safety and Health Management System (OSHMS). The policy extends to visitors and other persons within our workplace, who must comply with the applicable safety and health procedures. The implementation of OSH practices has resulted in a 27% drop in the total number of work-related accidents within the Group. Code-of Conduct – Fair and Respectful Workplace We believe that employees are our most valuable assets. Therefore, this section of the Code of Conduct highlights our commitment to creating a workplace that is free from negative and inappropriate behaviours. Employees are required to treat each other with respect, with guidelines on how to act to create a respectful work environment. The statement also details AmBank Group’s zero-tolerance to discrimination and harassment, as well as the shared responsibility among employees to foster a diverse and inclusive workforce. During the year under review, we received 13 cases of discrimination at the workforce, which were swiftly resolved by the relevant parties. Incident, Non-Conformity and Corrective Action Procedure The objective of this procedure is to effectively guide the reporting, recording, investigation and correction of workplace incidents and non-conformities. In doing so, we are able to detect, analyse and eliminate the root causes of these occurrences. This procedure is reviewed periodically by the OSH unit according to ISO 45001 Standards, ensuring that the contents reflect the current operating procedures. M5: Financial Inclusion & Responsible Lending Green Financing Guideline Retail Credit Policy (RCP) As part of our sustainable financing aspiration, the Green Financing Guidelines aims to reduce any adverse environmental impact resulting from our lending and financing activities. Relationship managers and risk management officers refer to this guideline to ascertain whether financing activities and loans can be categorised as green financing. It helps identify the eligibility of financing and loans under the Green Technology Financing Scheme (GTFS), and provides examples and criteria of different green activities. The guideline covers the financing of seven key sectors: Energy; Manufacturing; Transport; Building; Water; Waste Management’ and Sustainable Palm Oil. All credit officers of AmBank Group must adhere to and comply with (where applicable) the RCP, which represents the minimum credit risk management standards of the Group for retail portfolios. However, this does not replace the experience and sound judgement of our credit officers. The policy was established within AmBank Group’s tolerance for credit risk, supporting the Board-approved Group Risk Appetite Framework (GRAF) and overall business strategy. RCP is also supported by other formal policies, guidelines, practice guide and detailed procedures, which need to be read together for completeness. Non-Retail Credit Policy (NRCP) Shariah Policy on Financing for Business with Mixed-Business Activities The Shariah Policy provides general guidance to the applications for Islamic financing from non-individual customers that have a mixture of Shariah-permissible and non-permissible business activities. It helps facilitate understanding by relevant business units and functional lines regarding the type of businesses that are granted Islamic financing from a Shariah perspective. Additionally, the policy enhances employees’ awareness of business activities that fall under non-permissible items (negative list) for Shariah financing. Credit Proposal Memorandum The preparation of a credit proposal involves an in-depth analysis of credit risk factors, which include ESG risks. Therefore, under this memorandum, we incorporate sustainability considerations in the Group’s credit approval process. The Group’s NRCP sets out the high-level credit principles that the Group adopts to ensure a consistent approach in managing credit risks for non-retail portfolios. The policy outlines the credit management standards that are required to be observed throughout the lifecycle of credit exposure, including credit assessment standards, annual review and review of problematic credits and independent credit review requirements. Investment Intermediation Business Framework This Framework intends to facilitate the establishment of effective governance and oversight for the investment intermediation business activities of AmBank Islamic. This includes the business of collecting funds under the Investment Account (IA) products and the internal and external use of such funds. In 2018, AmBank Islamic launched an Unrestricted Investment Account (UA) product for the funding of its mortgage financing activities. Exclusion List The exclusion list outlines the sensitive areas that are not accepted by universal convention. Businesses and activities that fall under the exclusion list will not receive new financing from the Group from FY2021 onwards. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  150. 148 Sustainability Governance M6 : Responsible Marketing, Product & Service Design Product Approval and Management Policy Code of Conduct – Speaking on Behalf of AmBank Group In this policy, we articulate the overarching principles and minimum requirements in product development throughout the product lifecycle. The process balances the need for product governance and safety with commercial considerations within the Group’s risk appetite. The policy also includes sustainability considerations in its product approval process. This section of the Code of Conduct emphasises the importance of accurate and factual communications regarding AmBank Group. It applies to all employees, and highlights the reputational risks linked to releasing inaccurate information and communication. M7: Responsible Sourcing & Procurement Supplier Code of Conduct (SCOC) Code of Conduct – Managing Supplier Relationships SCOC aim is to create a sustainable future through responsible procurement. According to the code, suppliers are required to act with integrity, responsibility, honesty and respect, while also ensuring that their practices are ethical, safe and environmentally responsible. AmBank Group seeks only suppliers that operate in compliance with these criteria. In FY2020, 100% of new suppliers, as well as contract renewals from existing suppliers, were screened through AmBank Group’s ESG criteria, with 75% successfully meeting the criteria. When dealing with suppliers, employees are required to abide by the guidelines that help to build trust, co-operation and long-term relationships. We must apply good governance to provide oversight of the procurement processes to ensure we maintain integrity and honesty across the supply chain. As key stakeholders, suppliers need to be treated ethically and paid according to the agreed terms. M8: Environmentally & Socially Responsible Investment Group Environmental Policy Code of Conduct – Positive Social Impact As part of our sustainable financing aspiration, this policy includes AmBank Group’s commitment to reduce any adverse environmental and social impact resulting from our lending, financing and investment activities. It demonstrates our commitment to providing products and services that are ethical and responsible. According to this section of the Code of Conduct, AmBank Group is encouraged to apply our wealth management, investment management and capital markets expertise into sustainability-related financial and investing activities. Investment decisions need to abide by the Principles of Islamic Finance, which promotes environmental and social well-being. Through our responsible investments, we earned a 11% market share for Overall Malaysian Bonds/Sukuk for 2019. M9: Community Investments & Development Code of Conduct – Positive Social Impact The objective of this code is to guide AmBank Group in addressing a wide range of matters on the development of communities. Through our CSR initiatives, we deliver donations, grants and volunteering activities that enable the Group to connect with local communities and contribute to their socio-economic growth. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  151. 149 Sustainability Governance M10 : Energy, Water & Waste Management Group Environmental Policy Environmental Waste Management Practice Guide The Group Environmental Policy describes the key principles that allow AmBank Group to better manage the direct and indirect environmental impact of our operations and activities. Employees and suppliers are required to meet all environmental compliance obligations and strive to continuously improve our environmental performance. The policy also emphasises the implementation of programmes that promote the sustainable use of environmental resources. Following Malaysian regulations and the Group Environmental Policy, the aim of this practice guide is to help effectively manage both solid and scheduled wastes generated by AmBank Group. This practice includes details on waste management principles, waste classification and sustainable waste practices. Environmental Monitoring and Measurement Practice Guide To effectively manage the GHG emissions generated by operations and contribute to climate action, this practice guide provides essential carbon management criteria, such as identifying the scopes and boundaries of GHG emissions as well as the calculation, reporting and verification of carbon data. During the reporting period, through energyefficiency initiatives, we reduced our overall carbon footprint by 11%. Through this practice guide, employees can better monitor, measure, analyse and evaluate the environmental performance of the Group’s operations. The key requirements stipulated in this guide include establishing, measuring and monitoring Environmental Performance Indicators (EPIs). Greenhouse Gas (GHG) Accounting and Reporting Practice Guide Code of Conduct – Positive Social Impact Environmental Objectives, Targets and Plans Practice Guide The purpose of this practice guide is to provide direction in developing, implementing, monitoring and evaluating environmental objectives and targets for the Group. These objectives and targets are set according to an Environmental Management Plan (EMP). This code highlights AmBank Group’s commitment to actively identify areas and processes that continuously improve our environmental footprint, with a focus on energy efficiency, greenhouse gas emissions and resource conservation. Environmental Resource Management Practice Guide To optimise the use of natural capital, this guide adopts the best practices in effectively managing the consumption of resources such as electricity, water, paper and materials. The guide was developed in accordance with the Group Environmental Policy. The key contents of this practice guide include Environmental Resource Management Principles; Resource Classification; Electricity and Energy Management; and the Management of Renewable and Non-Renewable Recyclables, Recoverable or Reusable Materials. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  152. 150 Sustainability Governance MEMBERSHIP & ASSOCIATIONS To improve our approach in addressing sustainability matters, we actively participate in professional associations and memberships to exchange knowledge and ideas on industry best practices. This allows us to gain better insights into future trends, regulations and market changes, thus strengthening our resilience for long-term growth while maximising our ESG contributions. Association Contribution Membership Association of Banks Malaysia (ABM) • Actively involved in various initiatives that promote and strengthen the commercial banking industry to become more resilient, effective and efficient. AmBank (M) Berhad Association of Islamic Banking and Financial Institutions Malaysia (AIBIM) • Serve as members of the AIBM Council and Shariah Governance Committee. Malaysian Investment Banking Association (MIBA) • Actively participate in programmes and initiatives that improve and strengthen the Investment Banking Industry in Malaysia. AmBank Islamic Berhad • Help represent the voice of the Islamic Finance industry, underpinning the value-based intermediation thrust in serving the community. AmInvestment Bank Berhad • Sits on various committees in MIBA. Such committees act as a forum for industry dialogue between practitioners and the Malaysian regulators, where issues affecting the industry are discussed and addressed. This provides for the smooth functioning of the capital markets, and also aims to push innovation and adopt best practices in a timely manner. • Participate in annual dialogues with corporate finance and debt capital markets peers in Singapore to discuss industry developments and share ideas on capital markets. Financial Industry Collective Outreach (FINCO) • Contribute and participate in Malaysia’s largest collective impact on CSR. AmBank Group Malaysian Investor Relations Association (MIRA) • Actively participate in knowledge sharing sessions between other public-listed companies. and the investment community to promote corporate governance, transparency and enhance shareholder value for all. Joint Committee on Climate Change (JC3) • Help pursue collaborative actions for building climate resilience within the financial sector. • Employees volunteer in educational programmes for underprivileged children and youths. AmBank Group AmBank (M) Berhad • Collaborate with other financial players to build industry capacity through the sharing of knowledge, expertise and best practices in managing climate-related risks. • Actively support the identification of issues and priorities facing the financial sector in managing the transition towards a low-carbon economy. • Collaborate with stakeholders in advancing coordinated solutions to address climate-related challenges. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  153. 151 Sustainability Governance Association Association of Stockbroking Companies (ASCM) Contribution Membership • Promote the interest of the stockbroking companies by providing a unanimous “brokers” voice to relevant authorities and the public. AmInvestment Bank Berhad • Participates in all issues directly related to the development and progress of the stockbroking industry and to help realise the Government’s vision of transforming Malaysia into a regional financial centre. • Works very closely with the Ministry of Finance, the SC and Bursa Malaysia Securities Bhd on a diverse range of operational and policy issues. Community of Practitioners (CoP) of Bank Negara Malaysia’s Value-Based Intermediation (VBI) • Actively involved in the development of the industry’s VBI scorecard, framework, guidelines and strategy. AmBank Islamic Berhad • The CEO of AmBank Islamic is the Chairman of the Value-Based Intermediation Sectoral Guideline Working Group to develop sector guide documents for Palm Oil, Renewable Energy, and Energy Efficiency. Universiti Teknologi Malaysia • Act as a member of the Industry Advisory Panel for Azman Hashim International Business School. AmBank Islamic Berhad International Centre for Education in Islamic Finance (INCEIF) • In 2019, the CEO of AmBank Islamic was a Professor of Practice in INCEIF. AmBank Islamic Berhad • Promote the integration of the financial industry experience with academia. • Provide an understanding of the practical applications to students in related studies. Islamic Banking & Finance Institute Malaysia (IBFIM) 05Leadership • Act as Subject Matter Expert to facilitate the Structuring Investment Account Products programme and Application of Shariah in Islamic Finance. 06 Sustainability Report 07 Additional Information AmBank Islamic Berhad INTEGRATED REPORT 2020
  154. 152 Responsible Banking Our future growth is dependent on the long-term well-being of the people we serve . As such, our business strategy aligns with a commitment to deliver value for all stakeholders. As a responsible financial services group, we deliver products and services in a responsible manner. Our commitment to responsible banking allows AmBank Group to create shared prosperity for all, including for future generations. Sustainability Matters: M1: Data Security, IT Infrastructure & Digital Transformation M2: Customer Satisfaction M6: Responsible Marketing, Product & Service Design M5: Financial Inclusion & Responsible Lending M8: Environmentally & Socially Responsible Investment M1: Data Security, IT Infrastructure & Digital Transformation The digital and physical world continues to merge, resulting in a shift in customer expectations for smarter, faster and more convenient financial services. The digital era is also causing an emergence of new technology financial services providers, causing an increase in competition. Financial institutions that are unable to digitise and innovate will get left behind. However, progressing to a more digital business model increases cyber security risks. AmBank Group’s digital transformation potentially exposes the Group to malicious attempts to obtain critical information of customers. Data breaches within the Group may result in loss of public trust and customer insecurity, so it is essential to protect stakeholders from the economic and social risks associated with cyber security threats. AmBank Group is embracing the new era of digital by integrating digitalisation into our business. To stay ahead of the competition, we need to deliver innovative and digital financial solutions that continue to meet customer needs far into the future. We are adopting technology and innovative solutions that streamline processes for smarter, faster and more efficient services, as well as to reduce operational costs. The aim of the Group’s digital transformation is to improve customer efficiencies and better serve our customers, contributing to positive social impact. Our digitalisation journey began by automating the customer journey for improved accessibility, 24 hours a day. This includes providing customers with self-service opportunities through mobile and internet banking channels. As we scale and upgrade core systems and infrastructure, we are also utilising analytics to deliver personalised offerings through our online channels, as well as enhancements with new services entirely online. Moreover, we are exploring new business models and value-added services, such as our digital collection solutions that help corporate customers in digitising their day-to-day business operations. Our digital journey is guided by AmDigital – a comprehensive strategy that integrates our digital agendas across the Group. Launched in FY2018, AmDigital draws on the power of technology to redefine the customer experience and propel the Group as a leader in digital banking. The strategy is built on four key pillars: Retail Non-Retail Digitalisation Digitalisation Ecosystem Play Partnerships These pillars are guided by AmBank Group’s Principles of Digital Business: CustomerCentric Value for Money Agility Stay Focused Be digitally discerning, not digitally distracted Brand Differentiation Incorporate meaningful differentiation that distinguishes or elevates AmBank Group’s brand Trust AMMB HOLDINGS BERHAD Data-Enabled Decision Making 01 Overview of AmBank Group Tailored Understand our customers’ needs and wants to create value-adding interactions Borderless 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  155. 153 Responsible Banking To protect stakeholders against cyber attacks , the governance of our IT security is strengthened through AmBank Group’s three-year Cyber Security Maturity Improvement Programme (FY2018-FY2020). The programme aims to further enhance the Group’s cyber security systems and capabilities. Cyber Security Maturity Improvement Programme (FY2018-FY2020) Identify Governance and Administration (Desktop, Servers, Network, Security, Apps) • New IGA platform to support internal and external digital identify & access management • End-to-end privilege ID management in mitigating cyber credentials theft • Business Process Re-Engineering Enhance Cyber SOC (Monitor, Detect, Respond) • Enhance capability to mitigate insider threats and improve incident response • Expand security monitoring to include APT and endpoint cyber threat response • Build threat-intelligence capabilities KEY INITIATIVES FOR FY2020 PILLAR ONE: Retail Digitalisation Through our AmOnline internet and mobile banking platforms, we continue to innovate our digital offerings that target the entire spectrum of the customers’ journey. AMY™ (AmOnline’s Virtual Assistant) • Offers proactive, around-the-clock and personalised assistance to customers through a self-guided chat interface. • Helps activate new cards, reset forgotten pins, arrange for an increase in credit card limit, block lost cards, help customers pick the right credit card and other card-related services. • Features smart alerts to provide useful credit card-related notifications so that customers’ do not miss any updates. Quick Apply • Delivers a one-stop solution for financial needs through a self-guided application journey, from recommending a card according to a customers’ spending profile to tracking the application status. People and Skill Alignment, Training • Increase security resources with the right skills sets • Re-structure security operations to address IT security goals • Security training programmes to address security competencies and capabilities • Allows customers to apply for credit cards and supplementary cards, credit card limit increase, quick cash, balance transfer, access AmMoneyLine/-i, open an eFlex/-i account, and purchase car insurance. Easy Online Card Activation Threat, Vulnerability, Management, Hardening and Assured Patch Management • Strengthen continuous security assurance • Enhance security testing scope including cyber security scenarios and cyber compromise assessments • Enables customers to activate their bank cards through a simple 3-step process and TAC verification on the app. This eliminates the hassle of activating their new card via SMS or calling the contact centre before physically going to the ATM to reset the pin. AmMoneyLine/-i Debt Consolidation Cyber Awareness • Comprehensive Cyber Awareness programme with dynamic content • Effective and efficient measurement metrics • Embed cyber security in the culture and decision-making • Helps customers to easily manage and better understand their debt repayments – the first online banking solution in Malaysia to do so. • Allows customers to consolidate their debt into a single and attractive rate, or restructure debt over a longer period to manage their monthly outflow. Unified Enterprise Cyber Fraud Prevention, Detection and Response • Establish cyber fraud prevention, detection and response systems to align with digital banking strategy 05Leadership 06 Sustainability Report 07 Additional Information eFlex – Savings • Allows customers to auto-earn 3-month fixed deposit rates on their average account balance, provided a minimum balance is maintained monthly. INTEGRATED REPORT 2020
  156. 154 Responsible Banking PILLAR THREE : Partnerships Search and Repeat Feature • Enables customers to ‘search’ for a past transaction and repeat the same transaction performed with a single click. All the information required is then filled automatically for a better customer experience. We believe that third-party partnerships and collaborations are essential in growing our digital capabilities. As such, we are focused on establishing mutually beneficial relationships with relevant industry players. AMY™ (AmOnline’s Virtual Assistant) Wealth – an Easy & Seamless Investment Experience • Enables customers to perform a complete end-to-end investment journey fully online. Through AmOnline, they can open an investment account, perform investment research, purchase unit trusts and sell off units. • Offers tools to help customers understand fund performance, risk levels and fund focus. • Provides self-directed investors with access to building wealth at a maximum sales charge of just 2.5% for initial investments as low as RM1,000, and repeated investments of RM100. • Features smart alerts to provide useful credit card-related notifications so that customers’ do not miss any updates. • Offers proactive, around-the-clock and personalised assistance to customers through a self-guided chat interface. • Helps activate new cards, reset forgotten pins, arrange for an increase in credit card limit, block lost cards, help customers pick the right credit card and other card-related services. • Features smart alerts to provide useful credit card-related notifications so that customers’ do not miss any updates. Business JumpStarters (BizM.A.T.E.) Programme • Establishes collaborations with partners from various disciplines to provide products and services relevant to SMEs. • Provides SME customers with preferential rates for the services offered by our partners to help accelerate their business growth. The areas of service include: Safe and Secure Banking – – – – – • Utilises a robust enterprise security framework and fraud management tool to detect and prevent fraud via behavioural and advanced analytics. • Strengthen AmOnline security at the login stage with an additional Transaction Authorisation Code verification as a form of second-factor authentication. Accounting and HR Solutions Operations and Administration Communications and Internet Payment and Marketing Solutions Logistics and Workspace • Allows the Group to play an active role in providing financial services and products to members of the community and the marketplace. • Currently have 18 partnerships under the programme. PILLAR TWO: Non-Retail Digitalisation We empower our corporate and SME customers by delivering digital and innovative banking solutions. Digital Solutions with Maxis • Collaborated with Maxis to launch joint financial and digital solutions for SMEs that will enable easy access to customers’ financial and digital needs. AmAccess Biz Platform • Established a new online business banking channel that enables business customers to conveniently manage their business finances anywhere and at any time. • Harness the power of data-driven insights collected via digital platforms to provide personalised and innovative offers to SMEs and aid them in fulfilling their customer needs. • Allows customers to access their business accounts, view their account balances and transaction history, as well as perform payments and fund transfers via IBG, DuitNow and JomPAY. • Enables customers to perform bulk payment by simply compiling the transactions into a single file to make multiple fund transfers with a single approval. • Offers options for companies to set up an approval workflow according to the company’s requirements, which includes a single-maker authoriser or up to two authorisers workflow. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  157. 155 Responsible Banking DuitNow Payment API with Rakuten Trade Sdn Bhd • Acquired Rakuten Trade Sdn Bhd (Rakuten) as a pilot customer for Payment API via RPP DuitNow – a comprehensive fund transfer solution with instant credit to a beneficiary account within any bank in Malaysia. • Aims to enhance the customer experience in line with the aspiration of promoting digital solutions and sticky CASA to corporate customers. • Delivers an innovative new way for Rakuten’s client onboarding verification process that replaces the traditional method of verifying a hardcopy of their bank statement. • Complies with SC’s onboarding requirements. • Responds to the account holder on a real-time basis upon submission by Rakuten to AmBank, thus improving Rakuten’s onboarding turnaround time. Primary Banker for LUNO • Selected as the primary banker for exchange in Malaysia by LUNO, a bitcoin-related company headquartered in London. LUNO is the first cryptocurrency exchange in Malaysia to receive full approval from the SC. • Screened LUNO’s pre-approved clients during onboarding via an automated process. • In the midst of onboarding LUNO into FPX channel to allow first-party fund transfers into LUNO’s Trust Account. • Onboarded into DuitNow Payment API for settlement and selling of cryptos in Malaysian Ringgit with a faster and more efficient TAT. PILLAR FOUR: Ecosystem Play We are expanding our business proposition to the entire value chain – from producers and manufacturers to wholesalers, merchants and their respective employees. Unique Vertical Go-To-Market • Aggregate all our products under one roof with the aim of offering specialised and differentiated products and services to industry segments. • Enables the offering of products and services to supply chain financing for manufacturers and wholesalers; eFlex deposit accounts, Pay-As-You-Grow financing, term loans and other financing products for merchants; as well as eFlex deposit accounts, credit cards, insurance and other retail products for their employees and customers. Manufacturers & Wholesalers Tapping the Breadth and Depth of Banking Across the Industry’s Value Chain Supply Chain Finance Virtual Accountant Structure Cash Management MANUFACTURERS Large Corporate Cash Management WHOLESALERS Mid-Corporate, Commercial MERCHANTS Commercial, Enterprise, SME EMPLOYEES & CONSUMERS 05Leadership Employees Supply Chain Finance Virtual Accountant Structure Pay-As-Your-Grow Term Loan Cash Management Merchant POS (lower MOR) Insurance eDeposit AmBank Group White Label Card Issue with Loyalty 06 Sustainability Report eWallet/Credit/ Debit Card/NFC/USSD etc. 07 Additional Information Supply Chain Finance Payroll eDeposit Credit Card Insurance Unit Trust Flex-eDeposit for Individuals Digital CC Onboarding Digital Insurance DIY Robo Advisory Consumers Durable Loan eWallet Merchants Flex-eDeposit for SME Pay-As-You-Grow Loan Term Loan for eDeposit Digital Insurance INTEGRATED REPORT 2020
  158. 156 Responsible Banking Pay-As-You-Grow (PAYG) • Provides an unsecured term loan which bundles with Merchant Point-ofSales (POS) and Deposit Account. • First in the market that allows merchants to apply with minimum documents while having the loan repayment in sync with the merchant’s business volume. • Offers eligible merchants loan facilities through the Merchant Business Sales channel, with loan applications submitted for credit approval. The approved loan will be disbursed directly to the merchant’s Deposit Account. Afterwards, a portion of the merchant’s POS will be deducted to pay off the loan. PAYG High-Level User Flow LEADS SALES SUBMISSION ACHIEVEMENTS IN FY2020 AmOnline • 35% rise in registered users, from 716,256 in FY2019 to 965,946 in FY2020. • 97% increase in the average number of online transactions monthly, from 39.0 million in FY2019 to 77.0 million in FY2020. • 4.3 app rating on Google Play Store and 3.3 app rating on Apple’s App Store. • 14% reduction in contact centre call loads for card-related enquiries due to the Quick Apply Feature. • RM17,000 average balance maintained by customers who previously had no Deposit Account with AmBank Group or maintained a balance less than RM1,000, primarily due to eFlex savings. CREDIT APPROVAL • 56% increase in card activation online, with an 8% reduction in activation via call centres. • 71% credit card limit increase application via AmOnline. DISBURSEMENT • 2,000 successful online enquiries with a 100% increase in Rakuten’s onboarding via DuitNow API in December 2019 alone. ACCEPTANCE AmAccess Biz CYBER SECURITY We work to continuously strengthen the resilience of our technology infrastructure and cyber security capabilities, which are of paramount importance, especially with regard to protecting the financial and personal well-being of our customers. • 4,708 total registered companies, with 354 using the platform for payment since its launch in January 2020. • 579 monthly transaction volume and RM4.2 million in transaction value, which are 3x and 2.5x higher, respectively, since its launch. • 34% more Digital Tokens than hardware tokens from total transactions approved since its launch. Cyber Security Maturity Improvement Programme (2018-2020) • Focused on areas such as Identity Governance and Administration (IGA), Remote Access Management, Advanced Security Operations Centre (SOC), Threat Hunting & Intelligence, and Digital Asset Management. • Introduced a cyber-resilience framework to facilitate our ability to anticipate, withstand, contain and/or promptly recover from cyberattacks or events that disrupt usual business operations and services. • Established teams in the Technology Risk function that have oversight over infrastructure security risk, application security risk and third-party security risk. • RM487.2 million in total deposits supported by AmAccess Biz, with an average balance of RM102,000 per company. Cyber Security • Zero cases of data loss or online breaches reported for three consecutive years. Accolades for Digital Excellence • Best Automated Chatbot Initiative, Application or Programme – 2019, The Asian Banker Malaysia Awards. • Most Innovative Emerging Digital Technologies Project – 2019, The Asset Triple A Digital Awards. • Most Innovative Mobile Banking App – 2019, Global Business Outlook Awards. • Best Mobile Banking App – 2019, Global Business Outlook Awards. • Best Retail Mobile Banking Experience – 2020, The Asset Triple A Digital Awards. • Best Wealth Management Experience – 2020, The Asset Triple A Digital Awards. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  159. 157 Responsible Banking M2 : Customer Satisfaction Customers are expecting more from their banking services. They want a more efficient yet personalised customer experience in every stage of their interaction with us. While the idea of customer satisfaction in banking can be relative, there is a need to identify opportunities to humanise the digital experiences of customers. Our customers are increasingly demanding faster turn-around time, convenient banking, preferential savings and investment options, and above all, personalised products and services. Customers are also expecting banks to prioritise their financial health and best interests above all else. Our customer experience efforts aim to consistently meet their evolving needs to remain competitive. To continuously improve our service for a seamless customer journey, we engage with customers to identify common pain points throughout their interaction with us. The feedback collected allows us to implement the necessary measures that improve customer experience and, consequently, enhance customer satisfaction. Through our efforts, we aim to build our reputation from the traditional transactional mindset towards a more customercentric organisation. We deliver social value by ensuring the fair and ethical treatment of customers. For instance, amid the unprecedented crisis of COVID-19, we implemented measures to help address the financial distress and insecurity faced by both individuals and business customers. Moreover, we are committed to providing banking solutions that empower our corporate customers, with a particular focus in supporting SMEs. We establish partnerships with our business customers to create a mutually beneficial relationship to improve customer loyalty. KEY INITIATIVES FOR FY2020 CUSTOMER ENGAGEMENT CUSTOMER SERVICE FRONTLINERS Customer Satisfaction Survey Service Excellence Training • Conducted a Dipstick Survey on Mass and Mass Affluent customers from December 2019 to February 2020. The objective of the survey is to gauge the pulse of retail banking customers and competitors, arising from the measures taken by the Group to improve customer experience. • Continued to implement the ‘Warm and Caring, Approachable & Attentive, and Helpful (WAH) Programme and the 3-Step Service Model of Greet, Serve and Think (GST) to the frontline service team. • Introduced two Service Excellence training programmes that aim to drill excellent customer service into the core of the service team: • Compared the survey results against the 2018 baseline to monitor AmBank Group’s customer performance in comparison to industry competitors. Pain Point Workshop • Organised 67 workshop sessions to collect feedback from 415 service personnel on the challenges regarding our processes, procedures or systems that may hinder our service excellence to customers. • Consolidated the Pain Points according to relevant categories, which are then distributed to the respective functions to swiftly simplify, improve and overcome the Pain Points. 1. Building Service Excellence through Stakeholder Engagement Training for Contact Centres – Trained 50 selected team leaders, managers and trainers on engagement competency and emotional intelligence, which aims to build customer trust and drive team performance. 2. Service Leadership Training for Branches – Raised awareness and cultivate excellent service behaviour, positive communication, energetic attitude and teamwork skills into branches’ frontliners. CX Mystery Shopping • Conducted undercover observations of AmBank Group branches to check the consistency and service standard of our frontliners, ensuring that maintain WAH and GST practices. • Highlighted any service shortcomings to the branches’ respective Retail Operation Engagement Manager for immediate action. We then carried out multiple observations on these branches to track and monitor their improvement. Customer Experience Unity Tour (CXT) • Launched a unity tour for our customer service personnel at 16 states nationwide (excluding Sabah and Terengganu). The aim of the tour is to raise awareness on the importance of providing good customer experience during all aspects of the interaction. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  160. 158 Responsible Banking SEAMLESS & INNOVATIVE TOUCHPOINTS Digital and Online Solutions ACHIEVEMENTS IN FY2020 • Introduced enhanced features to AmOnline, the Group’s primary online and mobile banking platform. The new features are simpler, user friendly, and ease customer transactions for enhanced customer experience. IR Overall Customer Satisfaction • 15-point improvement in Net Promoter Score (NPS) from -21 to -06. For more details, please see page 153. • No. 2 ranking in NPS amongst industry competitors. • 75% in overall Customer Satisfaction (CSAT), which is an 11% improvement from the previous corresponding year. Contact Centres • Established a call-back team within the 24-hour Contact Centre that reduces customers’ need to call and wait for service, thus improving customer resolutions. • Introduced a Branch One-Stop Call Centre to assist branches and Retail Bank Operation backend in establishing a Quick Response Team for urgent and escalated cases. Business Customers Reached Self-Service Machines 2018 2019 2020 Large Corporate 2,838 3,123 2,850 Mid-Corporate 3,834 4,525 4,293 339 414 435 6,498 8,402 9,129 SMEs 17,804 19,690 22,122 TOTAL 31,313 36,154 38,829 • Initiated an exercise that replaced a large number of old and obsolete machines, which was carried out from December 2018 to February 2020. FIG • Replaced a total of 120 ATMs and 248 Cash Deposit Machines (CDMs) with 208 new Cash Recycler Machines (CRMs). Business Banking CUSTOMER FINANCIAL SOLUTIONS Credit Counselling and Debt Management Agency • Actively create awareness on Agensi Kaunselling dan Pengurusan Kredit (AKPK) to our customers through various programmes. This includes promoting AKPK services by our collectors, organising AKPK Day in collaboration with AKPK personnel, as well as training on AKPK Services whereby speakers from AKPK were invited at specific events to improve customers’ understanding on AKPK. • Established our own AKPK Operations and Administrations Team to effectively manage the response time in attending to AKPK’s requests and queries. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group Credit Counselling and Debt Management Agency • 3,400 active customers enrolled with AKPK, valued at RM715.0 million. • RM6.0 million in total monthly payments from AKPK customers. • Winner of AKPK Best Implementation Award 2019 by Majlis Anugerah Kolaborasi AKPK. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  161. 159 Responsible Banking KEY INITIATIVES FOR FY2020 M5 : Financial Inclusion & Responsible Lending AmBank Group’s financial inclusion and responsible lending practices are driven from the lens of Value-Based Intermediation (VBI). Led by Bank Negara Malaysia (BNM), VBI places emphasis on the social and environmental aspects of sustainable value creation. A number of VBI-related tools such as the VBI strategy document, financing and investment assessment framework, and sector guides have been and will continuously be developed. Adopting the principles of VBI will allow the Group to refine its products and services to meet customer needs, while concurrently promoting entrepreneurship development, community well-being and environmental sustainability. This manifests our commitment to responsible banking which would also help to boost our market share and bottom line. Increasing access to financial products and services for the financially underserved population is a key enabler in boosting shared prosperity and improving social mobility. Financial inclusion allows people across all levels of society to obtain credit, savings and further investments to grow their income. AmBank Group’s lending practices promote financial inclusion by providing access to funding for SMEs, start-ups, micro-SMEs and affordable housing, and via financial literacy programmes. In addition, the Group undertakes capacity-building initiatives such as the AmBank BizConference and AmBank BizRACE to upskill and enhance the business network of our SME customers. As regulations and the general market progressively move towards sustainability-related issues, financial institutions are expected to integrate environmental, social and ethical considerations into their lending practices. Through responsible lending practices, banks are able to better contribute to social and environmental well-being and demonstrate their commitment to being more than a profit-oriented organisation. In FY2020, we crafted the Group’s Responsible Financing Strategic Plan, which outlines the roadmap for AmBank Group to build capacity to allow us to overlay credit risk assessments with ES risk assessments to arrive at a final credit decision. In addition, the AmBank Group’s Green Financing Plan was also formulated where we have set a green financing target of 5% of net loans and financing growth in FY2020. Furthermore, with the financial disruption and uncertainties brought by the COVID-19 outbreak, AmBank Group is focused on protecting the financial health of our customers. We understand the financial concerns that many are facing, so we are implementing measures to ease their burdens. 05Leadership 06 Sustainability Report 07 Additional Information COVID-19 Protection • Allow for the temporary deferment or restructuring of instalment payments for all eligible individual and SME customers. • Introduced supportive financial relief to assist policy owners from AmMetLife and AmMetLife Takaful. Both insurance and takaful companies cover hospital admissions due to COVID-19, which requires treatment to be undertaken at designated government hospitals. • Participated in the scheme to offer the Special Relief Facility for collateral-free financing of up to RM1.0 million to support affected SMEs. This involves a simple application process with approval provided within 24 hours and disbursement within five days of approval. Empowering SMEs • Participate in various government-backed schemes to support the SME sector, including the SME Corporation Shariah-Compliant SME Financing Scheme; Skim Jaminan Pembiayaan Perniagaan Berhad; and Green Technology Financing Scheme. • AmBank BizClub: Provide education, training, development, social media exposure and networking opportunities that help SMEs scale their business, go international and reduce their failure. Entrepreneurs across the country hear from top trainers and business leaders on establishing strong leadership, business health, human resource readiness and good work culture. • AmBank BizConference: Organised a series of talks themed ‘Ignite Your Business’, which involved talks and panel discussions with industry experts and speakers across topics such as the Internet of Things, Halal and Digital Marketing. • Launched the ‘Road to IPO’, which aligns with the Group’s vision to grow, nurture and help business graduates from cradle to Initial Public Offering (IPO). The initiative educates educate and guide our SME clients in their journey towards becoming a publicly listed company. The first event consisted of 39 highpotential clients who were guided on the benefits of IPO, the potential risks and opportunities to consider, and the regulatory requirements. INTEGRATED REPORT 2020
  162. 160 Responsible Banking Empowering Start-Up Businesses • Established the SME Biz Start-ups-i, a Shariah-compliant financing scheme that offers financing up to RM300,000 to eligible start-up businesses. • The aim is to provide financing to start-ups that do not have a track record to qualify for traditional financing opportunities. It is a partially-secured by Credit Guarantee Corporation Malaysia Berhad (CGC)’s guarantee coverage. AmBank Group Green Financing Plan • Developed a green financing taxonomy for selected sectors such as energy, manufacturing, building, transport and palm oil. • Organised knowledge sharing sessions with Malaysia Debt Ventures (MDV) on green technology financing for business and credit risk teams. • Entered into a Memorandum of Understanding (MoU) with Green Technology Corporation & Climate Change Centre (GreenTech Malaysia) for the provision of technical advisory for capacity building, as well as for the promotion and support of the National Low Carbon Cities 2030 Challenge. • Held a Green Leadership Series for board members and senior management with GreenTech Malaysia. Affordable Housing • Participated in a number of affordable housing financing schemes: 1. Perumahan Rakyat 1Malaysia – Skim Pembayaran Fleksibel (PR1MA SPEF) 2. Skim Rumah Pertamaku (SRP) 3. BNM Affordable Houses Schemes 1 & 2 ACHIEVEMENTS IN FY2020 COVID-19 Protection • RM173.0 million in total deferred loans and financing that benefitted over 289 customers affected by COVID-19. • Over 100 applications received for the Special Relief Facility, with a total application amount of approximately RM96.3 million. Empowering SMEs • RM20.6 billion contributed to the SME sector through loans and financing. • 19.2% of the Group’s total loan portfolio made up of SMEs. • Approximately 5,000 SMEs and entrepreneurs provided with upskilling and development opportunities since the establishment of AmBizClub. Empowering Start-up Businesses • RM49.1 million of financing disbursed to start-up businesses through the SME Biz Start-up-i. Financing Sustainable Development Other Responsible Financing • Offers financial products and services that contribute to community development: 1. Offer cashless collection solutions via JomPAY to organisations such as mosques, Zakat centres, learning institutions and land offices. 2. Launched the JomPAY collaboration with Persatuan Systemic Lupus Erythematosus (SLE). Through JomPAY, the public can donate online to Persatuan SLE Malaysia. This marks our first NGO JomPAY collaboration. 3. Offers one of the most extensive ranges of retirement solutions to investors to address the community’s diverse retirement needs, goals, and risk tolerance with AmBank Islamic and Amanah Raya Berhad formally collaborating to offer will writing services to AmBank Group’s customers. • RM26.0 million disbursed in green loans and financing under the Green Technology Financing Scheme. • RM850.0 million worth of financing distributed under affordable housing financing schemes. • RM2.5 billion of loans and financing extended to help Bumiputera customers invest in ASB unit trust. Awards & Accolades • Best SME Bank in Malaysia: 1. SME Bank of the Year in Malaysia from Asian Banking & Finance Awards 2019. Financial Literacy • Launched a Financial Literacy Programme in collaboration with AmBank Islamic’s Shariah Committee members at the following universities: University Malaysia; International Islamic University Malaysia; UNITEN; and University Sains Islamic Malaysia. • Held financial literacy talks at selected schools. • Conducted a lecture on ‘VBI: Practical Manifestation’ by the CEO of AmBank Islamic at the International Centre for Education in Islamic Finance (INCEIF). • Participated in the Putrajaya LIFT Festival, on how Financial Technology (fintech) is changing the world. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 2. Best SME Bank in Malaysia from Alpha Southeast Asia Best Financial Institution Awards 2019. 3. Best SME Bank Malaysia 2019 from Global Banking & Finance Awards (two years running). 4. Best Islamic Finance SME Bank Malaysia from Alpha Southeast 2019. • Malaysia’s Best Pension Fund Manager awarded by Asia Asset Management for the second consecutive time. 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  163. 161 Responsible Banking M6 : Responsible Marketing, Product & Service Design CUSTOMER LOYALTY & TRUST DIGITAL MARKETING Customer loyalty and trust are influenced by responsible product and service solutions that protect customers’ financial best interest and maintain their confidence in our ability to serve them. With the rising competition in the financial industry, it is essential to deliver responsible products and services to stay ahead of competitors and retain our customer base. Similarly, our brand value relies on fair and transparent content in marketing, ensuring that customers are well-informed of our offerings. Regulators are also monitoring the marketing activities of banks, as well as the products and service design, to better protect people against financial exploitation. Our digital marketing strategy is aligned with consumer lifestyles, in which we utilise marketing technologies and analytics to target customers and deliver personalised experiences. We recognise that digital platforms enhance customer engagement and increase customers’ interaction for a better customer journey. The adoption of digital marketing also generates brand awareness and financial inclusion to younger demographics, who increasingly dominate the consumer market. Therefore, we leverage social media channels to promote financial education, new products and services, and digital banking benefits. In addition to traditional social media platforms, customers can also access information on popular forums, blogs and social messaging platforms, including: As a customer-oriented organisation, we strive to consistently provide customers with honest and transparent content in marketing and product solutions. We create a positive social impact by ensuring ethical marketing that reflects our commitment to putting customers first. AmBank Group’s branding strategy, encompassing our branding, communications and marketing activities are governed by our Brand Governance to ensure a consistent brand message across our lines of business. BRAND GOVERNANCE The unified brand messaging ensures that all employees understand and adhere to established brand practices, both internally and externally. While safeguarding our brand from unethical use, our Brand Governance ensures that all marketing communications are synergistic, relevant, purposeful and socially responsible. In maintaining compliance, our Brand Council leads the enforcement of our Brand Governance. The council consists of representatives from varied functional teams and business units as brand stakeholders to drive robust brand enhancement initiatives that uphold customers’ trust and confidence in AmBank Group. USE OF SOCIAL MEDIA AmBank Group’s primary mode of customer engagement includes social media channels such as Facebook, Instagram, Twitter and LinkedIn, as well as the corporate webpage – ambankgroup.com. Our Contact Centre web team ensures that all complaints or enquiries received through our online platforms are answered within four hours, with a maximum tolerable timeframe of 12 hours. Quick and reliable responses help reduce key operational and reputational risks identified in our Top Four Transformation strategy. • Video and photo sharing websites such as Flickr and YouTube • Blogs hosted by corporates, individuals and media outlets in Blogspot, Wordpress, as well as the comment section in blog sites • Wikis and open-source online content collaborations such as Wikipedia, Dropbox and Google Docs • Forums and discussion groups such as Lowyat.Net and Cari.com.my • Geo-spatial tagging such as Foursquare • Chat messaging applications such as WhatsApp, Line, WeChat and Short Messaging Service PRODUCT GOVERNANCE An accountability and governance process ensures that the development of our products and services are governed by the respective lines of business to ensure all regulatory requirements, ethical marketing, information transparency and AmBank Group’s brand values are intact. We also adopt an integrated approach that considers ESG impacts of the products and services that we introduce. The Group Product Forum, a delegated subcommittee of the Group Management Committee, has oversight to ensure adherence to the Group’s Product Approval and Management Policy by the product owners. Our marketing communication initiatives undergo a stringent process based on the Group’s Campaign Marketing Review Checklist, in addition to complying with the following regulatory guidelines: • BNM Guidelines on Product Transparency and Disclosure • AmBank Group Shariah Guidelines on Marketing and Promotional Materials Our efforts help build public trust and confidence, thus reinforcing our reputation as an innovative and responsible bank that is committed to growing alongside its customers. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  164. 162 Responsible Banking KEY INITIATIVES FOR FY2020 TYPE OF SOCIAL MEDIA AND MARKETING ACTIVITIES Some of our key marketing events which manifest our responsible marketing practices : Business Events • Unveiled the winners at a glamourous dinner during the AmBank BizRACE Awards Night. Prize Giving • Awarded the first of two Mercedes Benz A-class cars for the ‘Level Up Your Lifestyle Campaign’ to one of our lucky AmBank Credit Cardholder. • Announced the lucky winners for AmBank MasterCard Fly, Stay and Play II campaign, with recipients each winning a trip to Resorts World Sentosa, Singapore. • Launched the new Spend and Win campaign with Visa Credit Card, delivering a chance to catch the Olympic Games Tokyo 2020. Appreciation Events • Hosted AmBank Group’s annual Majlis Berbuka Puasa, joined by customers, partners and friends to celebrate Hari Raya Aidilfitri. • Hosted an appreciation dinner with our billers and partners to celebrate our win in August as one of the top JomPAY billers. ACHIEVEMENTS IN FY2020 Social Media Our open and honest social media communication approach fared well in FY2020, and we continued to grow in our engagement and followers. For example, our Facebook followers saw a steady increase of 8%, whilst Twitter saw an increase of 5%. Instagram and LinkedIn both saw high double-digit growth at 46% and 37% respectively. Social Media Networks Facebook (AmBankMalaysia) Instagram (@AmBankMY) Twitter (@AmBankMY) LinkedIn (AmBank Group) AMMB HOLDINGS BERHAD 01 Overview of AmBank Group TARGET (Friends and Followers) ACTUAL (Friends and Followers) FY2018 FY2019 FY2020 FY2018 FY2019 FY2020 150,000 165,000 170,000 148,396 154,203 166,476 2,500 3,000 5,000 3,163 4,492 6,566 300 2,500 3,500 453 3,446 3,634 18,150 30,500 53,000 28,045 40,599 55,612 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  165. 163 Responsible Banking M8 : Environmentally & Socially Responsible Investment The banking and financial sectors’ role extends beyond acting as an intermediary in the economy. Investors, regulators and other stakeholders are increasingly expecting responsible and ethical financial decisions. Therefore, through responsible investment, financial institutions are able to maintain stakeholder trust and loyalty. The responsible flow of financing is also key to enabling national and global sustainable development goals. In November 2019, the Securities Commission (SC) released the Sustainable and Responsible Investment Roadmap (SRI Roadmap) for the Malaysian Capital Market. The SRI Roadmap is intended to establish a facilitative regulatory framework to support SRI as well as green financing and to accelerate the growth of this segment. With 20 recommendations in the SRI Roadmap mapped to five overarching strategies, these are aimed at driving the development of a vibrant SRI ecosystem for Malaysia as well as the region. In the same month, BNM issued the VBI Financing and Investment Impact Assessment Framework – Guidance Document (VBIAF). This guidance document was jointly developed by the VBI Community of Practitioners (CoP), the International Centre for Education in Islamic Finance (INCEIF) and The World Bank Group (Malaysia Office). The VBIAF also had significant contributions from The World Wide Fund for Nature (WWF) (Malaysia and Singapore Offices), especially from the environmental and social aspects. The VBIAF aims to facilitate the implementation of an impact-based risk management system for assessing the financing and investment activities of Islamic financial institutions in line with their respective VBI commitments and serves as a reference for other financial institutions intending to incorporate ESG risk considerations in their own risk management system. Through AmInvestment Bank, our responsible investment strategy reflects the Group’s values and aligns with the Malaysian government’s initiatives to spur ethical financing. Through SRI, Sukuk and Green Bonds, we support businesses that help meet the government’s goal of achieving a 20% renewable energy contribution to Malaysia’s electricity generation mix by 2025. Moreover, AmInvestment Bank has adopted the ASEAN Green Bonds Standards (GBS) to effectively support innovative clients who embark on sustainable projects. As such, AmInvestment Bank is the financial institution responsible for raising the first ASEAN Green Bond and the first GREEN SRI Sukuk for a listed Group. As a testament to our market leadership, we have been involved in almost all of RAMC’s second opinion GBP reports. ACHIEVEMENTS IN FY2020 Notable Deals Bonds/Sukuk Issuer Transaction Our Role MBSB Bank Berhad RM10.0 billion Sukuk Wakalah Programme Joint Principal Adviser, Joint Lead Arranger and Joint Lead Manager Tanjung Pinang Development Sdn Bhd RM1.5 billion Unrated Sukuk Programme Joint Lead Manager WCT Holdings Berhad RM1.0 billion Perpetual Sukuk Programme Joint Lead Arranger and Joint Lead Manager Top Ranking Bonds/Sukuk • • • • Ranked Ranked Ranked Ranked No. 3 with 11% Market Share for Overall Malaysian Bonds/Sukuk for 2019. Top 3 on the Bloomberg MYR Bonds/Sukuk League table for 17 Consecutive Years Since 2003. No. 4 with 11% Market Share for Malaysian Ringgit Islamic Sukuk for 2019. No. 2 for Overall Malaysian Bonds/Sukuk and Malaysian Ringgit Islamic Sukuk as of 1Q 2020. Awards & Recognition Malaysia’s Best Exchange Traded Fund (ETF) Provider Award Asset Triple A Private Banking, Wealth Management, Investment and ETF Awards 2019. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  166. 164 Conscious Self-Conduct As enablers of economic growth , we have the power to influence positive environmental and social outcomes. This requires a reflection of our internal conduct, including the need for strategic governance and careful considerations of business decisions in terms of the environmental impact of our operations, as well as our interactions with employees and suppliers. As a result, we are able to deliver value in the long-term and better contribute to a sustainable future. Sustainability Matters: M3: Ethics, Governance & Compliance M4: Conducive & Inclusive Workplace and Human Capital Development M7: Responsible Sourcing & Procurement M10: Energy, Water & Waste Management M3: Ethics, Governance & Compliance As a financial institution, the way we conduct our business is important. Working with high levels of integrity and ethics instil a sense of loyalty and confidence amongst regulators and the general public, while also protecting the Group against the costs of regulatory non-compliances. Moreover, good corporate governance and accountability is key to preventing corruption and misconduct that creates an atmosphere of distrust among employees and impedes our business objectives. Therefore, AmBank Group’s commitment to responsible banking is driven by high standards of ethics and corporate governance. Our business strategies and policies are formulated to drive responsible, transparent, inclusive and ethical conduct in all dealings, in which we adapt and respond to social needs and challenges. By establishing a strong governance system within the Group, we take a top-down approach to protect stakeholders’ interests and ensure financial sustainability. AmBank Group’s corporate governance structure aligns with the main requirements of the Malaysian Code on Corporate Governance. This enables us to operate with high levels of integrity to maintain the trust of our customers, shareholders, investors, and all other stakeholders. We also work closely with regulators to ensure that our business safeguards the stability of the financial industry. This extends beyond adherence to laws and regulations, and includes a stringent compliance system for best practices. Overseen by AmBank Group’s Compliance Department, we have strict policies and guidelines, such as the Code of Conduct and Shariah principles, that are applied to all employees in all areas of activities. Our stringent policies encourage openness and accountability in the way we work, while protecting the Group against illegal and unethical practices such as abuse of power, conflict of interest, bribery, corruption, insider trading and money laundering. A full list of these policies is elaborated on page 145 to 149. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group CODE OF CONDUCT The Code of Conduct, which includes our Code of Ethics, represents AmBank Group’s firm commitment to uphold, maintain and demonstrate a high level of integrity, professionalism and ethical conduct. The Code provides a clear direction in conducting business, interacting with the community, government and business partners as well as general workplace behaviour. The Code of Conduct is established by AmBank Group’s Board of Directors. The Board takes a leadership role in shaping and driving the governance of, and compliance with, policies and practices via the Group Management Committee, Group Risk, Group Legal, Group Compliance, Group Internal Audit, Group Information Services, Group Finance and Group Human Resource functions. The Code of Conduct has been developed according to a value-based approach which consists of the following five key areas: 1 Message from our Chairman and Group Chief Executive Officer Messaging from the top of AmBank Group emphasises our commitment to building a strong ethical culture that protects staff, customers and the Group by providing a common understanding of acceptable behaviours. 2 Ethical Standards 02 Key Messages AmBank Group employees are expected to always maintain high integrity and ethical standards by complying with the Code of Conduct, internal policies and related regulations. All staff must demonstrate a commitment to the highest ethical and professional standards and be personally accountable for upholding the Code of Conduct. These include holding each other accountable and an obligation to immediately report unacceptable conduct or unethical behaviour, such as conflict of interest, abuse of power, bribery, corruption, insider trading and money laundering, via the designated channels. 03 Key Highlights 04 Management Discussion and Analysis
  167. 165 Conscious Self-Conduct 3 Company and People AmBank Group expects its leaders and all employees to act responsibly , promote open communication and treat all individuals respectfully. All staff are required to safeguard information entrusted to them, avoid potential conflicts of interest, and handle their personal finances in a prudent manner. When dealing with customers and regulators, all employees must be clear in their articulation, exhibit professional conduct, and exercise sound judgement in all communications. In recognition that our employees are our most valuable asset, AmBank Group is committed to providing a safe and secure workplace that is free from negative and inappropriate behaviours. In dealing with suppliers and vendors, AmBank Group strives to apply good governance, set clear expectations on deliverables, and strictly adhere to our ‘No Gift Policy’ to avoid potential conflicts of interest with all parties. We perform regular reviews and evaluation of our policies and procedures to ensure they remain relevant and aligned with changes in the regulatory landscape as well as risks associated with our lines of Businesses. We make efforts to avoid any conflict of interests in our practices, such as strictly adhering to the ‘No Gift Policy’ that prohibits the exchange of gifts that could influence the impartial judgement of our people. Furthermore, the Group is not part of any political party and has not made any political donations either. Principles Governing the Protection of AmBank Group Whistleblowers Principle 1 Whistleblowing shall be managed in a transparent manner by creating awareness on protection, confidentiality and enforceability. Principle 2 Whistleblower should be protected for reporting any actual or suspected improper conduct upon demonstrating sufficient bases for whistleblowing. Principle 3 Confidential information relating to whistleblowing should be safeguarded. Principle 4 Whistleblower, including his/her spouses and related persons who are employees of the Group, should be protected from detrimental action. Principle 5 Remedial actions should be taken on compliant of detrimental actions against the Whistleblower. Principle 6 Ombudsperson is to be appointed as the official channel for the reporting of concerns. Principle 7 Whistleblower should provide sufficient and accurate information on best effort basis. Principle 8 Reported improper conduct shall be investigated by appointed party and deliberated at an appropriate Committee for decision making. Principle 9 Appropriate communication and record maintenance shall be in place. Principle 10 Violation of Policy may be subjected to disciplinary action. 4 Marketplace AmBank Group is committed to adhering to laws, rules and regulations that safeguard against money laundering, terrorist financing, bribery and corruption, as well as promoting open and fair competition in the marketplace. 5 Commitment to Sustainability AmBank Group endeavours to create a sustainable future for our staff, customers, shareholders and the community through responsible banking practices, by being an employer of choice and by creating positive social impact through all our business activities. Key Principles of AmBank Group’s Code of Ethics Compliant Comply with all relevant laws and regulations Responsible Manage conflict of interest with honesty and integrity Ethical Practice honesty and integrity in everything we do Accurate Ensure completeness and accuracy for financial records Trustworthy Protect the confidentiality and sensitivity of information Equitable Treat each other and our community with respect Our strong culture of integrity, openness and accountability is supported by AmBank Group’s whistleblowing channels. Employees, suppliers, business partners, customers and the general public are able to voice grievances and report any corruption or malpractices occurring within the Group, without fear of repercussions. A key feature of the Group’s whistleblowing practice is the appointment of Ombudspersons that ensures complete protection for the whistleblower as appropriate actions are taken. Ombudspersons comprises of an appointed Board member, full-time senior management employee(s) and/or Regulator and/or Law Enforcement Agency. Our primary whistleblowing channels include the ‘Speak Up Feedback Forum’ and a dedicated email address: ombudsperson@ ambankgroup.com. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  168. 166 Conscious Self-Conduct KEY INITIATIVES FOR FY2020 ACHIEVEMENTS IN FY2020 Anti-Bribery & Corrupt Practices Programme • Set up appropriate channels and tools to provide the knowledge and support to employees, ensuring they remain compliant to AmBank Group’s Anti-bribery & Corruption Policy. • Established the procedures and processes for each of the following five pillars: 1. Tone-from-the-Top 2. Risk Assessment 3. Preventive Measures 4. Systematic Review, Monitoring & Enforcement Action 5. Training & Education Good Governance • Five complaints and grievances received through our whistleblowing channel, with 100% resolution within 90 days. Group-Wide Compliance • 11,089 employees from various functions reached through the Group’s compliance training programmes. • Zero significant breaches against regulatory compliance. Anti-Money Laundering (AML) and Counter Financing of Terrorism (CTF) Programme • Continued to implement the enterprise-wide AML/CFT Transformation Programme that allows employees to identify and mitigate suspicious money flows and prevent the use of our banking channels and products to conduct illicit or illegal transactions. This contributes to the enforcement agencies and that defend the financial sector from threats of terrorist financing, money laundering and other financial crimes. Audits and Internal Controls Internal Audits Conducted 305 282 264 • The key components of the programme include: – Strengthen governance through increased Board scrutiny and oversight, as well as implementing more stringent policies and procedures. – Deploy a Transactions Monitoring System with up-to-date technology as an early detection mechanism. –Roll out a comprehensive training programme modelled after international financial institutions with matured AML/CFT programmes. The training covers enterprise-wide employees and is customised according to their roles and key functions. FY2020 FY2019 FY2018 Number of Planned Audits Audit Rating Group-Wide Compliance • Conducted regularly monitoring, testing, reviews and assessments by the Compliance Monitoring & Testing Team (under Group Compliance) to assure that compliance risks are managed effectively and efficiently. 91% 91% 85% • Carried out the second line of defence against non-compliances through: – – – – Adherence Reviews and Testing Across All Lines of Business Thematic Reviews of Key Regulations Targeted Deep Dives Independent Validation of Key Submissions to Regulators • Provided 75 compliance training and awareness sessions to employees. The aim of these training programmes is to support the efficient compliance of relevant regulatory requirements governing the Group’s activities. The sessions were provided to employees via the following platforms: – Annual and Periodic e-Learning – Email Communication with Embedded Links to Relevant Policies and Guidance (Reminders@Within) – Classroom Training (including ‘Train the Trainer’) on Specific ComplianceRelated Topics. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 8% 5% 4% 7% 7% FY2020 FY2019 FY2018 Strong 03 Key Highlights Satisfactory 2% Weak 04 Management Discussion and Analysis
  169. 167 Conscious Self-Conduct M4 : Conducive & Inclusive Workplace and Human Capital Development The future of AmBank Group relies on the dedication and capabilities of the workforce. Employees need to be trained with relevant and future-ready skills that continuously meet our business objectives. The performance and productivity of employees are also strongly linked to their welfare and well-being. It is important to create a safe and nurturing work environment that protects the mental and physical health of our people. Furthermore, reflecting the diversity of Malaysia, we believe in the inherent strength of a vibrant, diverse and inclusive work culture. The differences in experience, background and perspectives among the workforce enables innovative thinking and establishes strong connections with a diverse employee base. We strive to be: Proactive We approach every challenge positively, initiate change responsibly, and always anticipate the needs of all our employees, customers and our community. Principled Integrity and professionalism remain the thrust in all we do, and we take accountability for our actions. AmBank Group’s talent management strategy is to invest in the growth of our people. Our development programmes aim to provide employees with future-ready capabilities, transferable skills and a continuous learning mindset that allows them to thrive. Appreciative We value and recognise everyone’s role and contribution, and always provide support to our customers and employees. Collaborative We are connected in everything we do. We are part of an organisation that fosters teamwork and open communication. Our employee recruitment, retention, remuneration and development practices focus on equity and inclusion, regardless of gender, age, disabilities, ethnicity, beliefs and socioeconomic background. Furthermore, we are focused on closing the gender gap in leadership and power. We make systematic efforts to provide equal opportunities in succession planning and development and promote a balanced leadership team for more value-added ideas and innovation. Moreover, we are focused on safeguarding the health and welfare of our people. The well-being of our employees results in improved loyalty, productivity and overall performance. We adopt a ‘Prevention is Better Than Cure’ approach to employee wellbeing, in which we have systems in place to mitigate risks to workplace safety. Regular engagement activities protect the mental health of employees by strengthening relationships and capturing key concerns facing the workforce, while a stringent OSH Management System protects the physical health of our people against accidents and injuries. Experimental We strive to seek new and relevant ways to grow ourselves, our customers, our business and our community in a sustainable manner. In FY2020, we faced the most significant threat to our employees’ health and safety, arising from the Covid-19 pandemic. We are fully aware that the situation concerning the pandemic is continuously evolving. Pursuant thereto, we are monitoring the situation closely and are in constant contact with the health authorities and our employees. We established the procedures necessary to minimise the risk of contamination to employees, customers and visitors across AmBank Group’s locations. These include the control of entry into premises; temperature screening; travel directives and advisory; frequent disinfecting and cleaning; meeting advisory; social distancing and quarantine protocols for exposed employees and digital communications. The Group OSH Committee also set-up a dedicated COVID-19 microsite as the reference point for all employees. WORKPLACE STATISTICS Age Distribution 100% 61% 66% 65% 60% 66% 62% 60% 52% 39% 40% 35% 34% 34% 48% 40% 38% 0% <20 years old 20-25 years old 26-30 years old 31-35 years old 36-40 years old Female 05Leadership 06 Sustainability Report 07 Additional Information 41-45 years old 46-50 years old >50 years old Total Male INTEGRATED REPORT 2020
  170. 168 Conscious Self-Conduct Employee Breakdown by Business Unit 28 % 15% 9% 9% 6% 6% 2% General Insurance 3% 2% Business Banking 2% <1% Investment Banking (including Subsidiaries) 3% <1% Islamic Banking Retail Banking Female 8% 5% 2% Wholesale Banking Group Information and Operation Division Group Shared Services Male Employee Breakdown by Seniority Years of Service (YOS) 70% 66% 44% 41% 39% 34% 2-5 years Less 2 years 63% 61% 59% 56% 62% 38% 37% 30% 5-10 years 15-20 years 10-15 years Female >20 years Total Male Employee Breakdown by Generations Employment Contract 38% 33% 62% 61% 62% 38% 37% 27% 19% 17% 2% 1% 2% Baby Boomers (1946-1964) Generation X (1965-1980) Female AMMB HOLDINGS BERHAD Generation Y (1981-1996) Total 1% Contract Male 01 Overview of AmBank Group Female 02 Key Messages 03 Key Highlights Total Permanent Male 04 Management Discussion and Analysis
  171. 169 Conscious Self-Conduct KEY INITIATIVES FOR FY2020 PEOPLE MANAGEMENT AmBank Group Health & Wellness Month Campaign COVID-19 Protection • Organised a campaign in November 2019 to inculcate health and wellness practices throughout the workforce. • Invested RM2.7 million in health and safety procedures that protect employees and other stakeholders against the virus. The measures include: • Carried out wellness activities during the campaign, including health screening, safety and health products booth display, health talks and the Staircase & Fitness Challenge Campaign. – Frequent disinfecting of AmBank Group’s offices and workplace. – Handing out a total of 180,000 face masks to employees working at all corporate offices and regions, while also providing two bottles of hand sanitisers each to all employees. – Acquiring the necessary tools (e.g. thermal scanners & thermometers) for employee and customer screening. – Enforcing a Work-from-Home Policy on a majority of the workforce during the Movement Control Order (MCO). – Providing lunch for mission-critical staff that are required to work in the office during MCO. – Launching a dedicated COVID-19 microsite in our internal Portal, which contains directives and advisory to employees in relation to the outbreak. Haze Crisis of September 2019 • Distributed over 650 pieces of N95 masks and 375 surgical masks to AmBank Group employees based in regions with a high Air Pollutant Index (API) reading during the Haze Crisis in September 2019. Kelab AmBank Group (KAG) – The Sports and Recreation Club for All Employees • Subsidised 50% of entrance fees to encourage members to participate in public runs for a healthier lifestyle. The events include: Everyone Can Run by Bake with Dignity; Neon Run by Universiti Malaya; Zoo Walk by Zoo Negara; Anak-Anak Malaysia Walk by The Star; and Score Run, Run for National Unity by Help University. • Organised the AmBank Run in Taman Botani, Taman Tasik Perdana, to promote exercise and healthy habits amongst employees. The run also aims to foster close relationships between different levels of the workforce. • Carried out recreational activities for KAG members to improve employee engagement and morale. The fun activities include Food Hunt for the Foodies, Treasure Hunt, ATV Ride, Squid Jigging, baking classes, and AmBagus, our very own singing competition. Diversity and Inclusion • Celebrated festive events all year round for our multicultural and diverse workforce. This includes decorating AmBank Group buildings during festive seasons such as Hari Raya Aidilfitri, Deepavali, Chinese New Year and Christmas. • Conducted friendly competitions among employees that aim to harness national unity. The competitions include #MYdaywithAmBank during Malaysia Day, #RayaBersamaAmBank during Hari Raya Aidilfitri and #DeepavaliWithAmBank during Deepavali. • Continued to invest in the well-being of our employees through comprehensive healthcare coverage and the provision of gymnasium facilities in our main office buildings, health club memberships and health-oriented activities. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  172. 170 Conscious Self-Conduct ACHIEVEMENTS IN FY2020 PEOPLE MANAGEMENT Employees Protected with Collective Bargaining Agreements Collective Bargaining Agreements FY2020 12 % Total % of Employees Employee Retention and Turnover Rate High Performer Retention Rate 100% 95% 92% 95% 97% 95% Employee Turnover Rate 99% 100% 97% 15% 96% 13% 13% 7% 4% 1% Top Management/ Senior Management Middle Management Professional/ Specialist Female Non-Executive Top Management/ Senior Management Total Middle Management Professional/ Specialist Voluntary Male Employee Turnover Rate by Gender (Voluntary) 1% 1% Non-Executive Total Involuntary Employee Turnover Rate by Gender (Involuntary) 19% 16% 15% 13% 11% 11% 8% 6% 3% Top Management/ Senior Management Middle Management Professional/ Specialist Female AMMB HOLDINGS BERHAD 1% 4% Non-Executive Total Top Management/ Senior Management Middle Management Male 01 Overview of AmBank Group 1% Professional/ Specialist Female 02 Key Messages 03 Key Highlights 1% 1% 1% 1% Non-Executive Male 04 Management Discussion and Analysis 1% Total
  173. 171 Conscious Self-Conduct Employee Turnover Rate by Business Unit 21 % 21% 19% 17% 17% 15% 14% 14% 14% 14% 13% 12% 11% 10% 3% Business Banking General Insurance Investment Banking (including Subsidiaries) 7% 6% 3% Islamic Banking Retail Banking Female Wholesale Banking Group Information and Operation Division Total Group Shared Services Male Employee Turnover Rate by Age Group Diversity & Inclusion 36% Employee Distribution by Race 26% 5% 16% 2% 12% 10% 7% 8% 18% FEMALE Total >45 years old 30-45 years old <30 years old 1% 4% 17% Female MALE 30% 25% 15% Male Malay Chinese Indian Others Employee Distribution by Gender Employee Level 47% 35% Middle Management Professional/ Specialist Female 05Leadership 62% 25% 53% 39% Top Management/ Senior Management 68% 65% 61% Board of Directors 06 Sustainability Report 32% Non-Executive 38% 75% FEMALE MALE Total Male 07 Additional Information INTEGRATED REPORT 2020
  174. 172 Conscious Self-Conduct Remuneration by Gender Average Monthly Basic Salary Total Compensation 14 ,945 70% 67% 63% 55% 10,971 8,672 7,503 8,459 37% 33% 6,957 5,937 30% 5,221 AmBank (M) Berhad AmInvestment Bank Berhad Top Management/ Senior Management AmBank Islamic AmGeneral Berhad Insurance Berhad Female Middle Management 71% 60% 56% 55% 54% 46% 44% 45% 36% Professional/ Specialist Female Non-Executive 48% Total 29% Top Management/ Senior Management Middle Management Male Professional/ Specialist Female Non-Executive Male Internal Promotion Rate by Gender Internal Promotion 64% 49% 67% 63% 60% 51% Top Management/ Senior Management 36% 37% Middle Management Professional/ Specialist Female AMMB HOLDINGS BERHAD 40% 33% Non-Executive Total Male 01 Overview of AmBank Group 02 Key Messages 52% 40% 32% 30% Middle Management Total Male 68% 64% 33% Non-Executive Total Variable Incentives 70% 67% Professional/ Specialist Female Male Total Cash Top Management/ Senior Management 55% 45% 45% 03 Key Highlights 04 Management Discussion and Analysis Total
  175. 173 Conscious Self-Conduct Vulnerable Employment Group Vulnerable Employee List Parental Leave * 5% 3% FEMALE MALE * Percentage of employees utilising parental leave Male Blind 3 2 Deaf 1 0 Limb Loss 0 1 Walk with Limited Ability 1 0 Sight Problem 1 0 Total 6 3 Talent Management Awards & Recognition Talent Attraction & Management • 55,612 LinkedIn Followers • 22% of new hires from online platforms and job fairs • Three Human Capital Accolades Received: – HR Excellence Awards 2019 – Malaysia Best Employer Brands Awards – Malaysia 100 Leading Graduate Brand Awards (Ranked 60) Employee Feedback Areas of Concern Female FY2020 Workplace and Business Practices 30% Product and Service Improvement Ideas 70% KEY INITIATIVES FOR FY2020 CAPABILITY DEVELOPMENT Talent Development & Succession Planning Total Employee Training Expenditure* (RM) • Continued our talent and leadership programmes such as AmGraduate Programme; FSTEP; Leadership Enhancement and Acceleration Programme (LEAP); Emerging Leaders’ Programme (ELP); and Being A Talented Manager Programme (BATMAN). • The aim of the programmes is to accelerate employees’ career progression for Mission Critical Positions (MCP) and leadership roles at AmBank Group by sharpening their leadership skills, soft skills and personal potential. By Gender Workforce Category Female Male Total Top Management/Senior Management 934,753 1,594,665 2,529,418 Mid Management 6,680,541 5,339,853 12,020,395 Professional/Specialist 5,790,468 3,120,550 8,911,018 901,881 372,416 1,274,297 14,307,643 10,427,485 24,735,127 Non-Executive Total 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  176. 174 Conscious Self-Conduct Total Employee Training Expenditure * (RM) (continued) By Entity AmBank (M) Berhad Workforce Category Top Management/Senior Management Mid Management AmInvestment Bank Total 1,855,150 170,937 503,331 2,529,418 10,786,325 250,431 983,639 12,020,395 8,542,247 93,494 275,278 8,911,018 Professional/Specialist Non-Executive Total AmBank Islamic 1,229,123 – 45,174 1,274,297 22,412,845 514,861 1,807,421 24,735,127 By Learning Type Workforce Category Leadership Top Management/Senior Management Mid Management Professional/Specialist Technical Total 515,955 283,672 1,729,791 2,529,418 2,325,947 1,589,270 8,105,178 12,020,395 398,404 891,412 7,621,202 8,911,018 Non-Executive Total Soft Skills – 128,264 1,146,033 1,274,297 3,240,306 2,892,618 18,602,204 24,735,127 * Note: All training data is reported on a calendar year (CY) basis. This is aligned with the Staff Training Expenditure (STE) report to BNM, which is submitted on a calendar year basis. ACHIEVEMENTS IN FY2020 CAPABILITY DEVELOPMENT Total Employees Trained* (By Number of Transactions; Non-Unique) By Entity Workforce Category AmBank (M) Berhad AmBank Islamic Top Management/Senior Management AmInvestment Bank Total 2,970 151 572 3,693 Mid Management 41,540 641 2,640 44,821 Professional/Specialist 56,036 296 1,184 57,516 9,816 – 298 10,114 110,362 1,088 4,694 116,144 Non-Executive Total * Note: All training data is reported on a calendar year (CY) basis. This is aligned with the Staff Training Expenditure (STE) report to BNM, which is submitted on a calendar year basis. By Learning Type Workforce Category Leadership Soft Skills Technical Total 80 459 3,154 3,693 1,530 3,578 39,713 44,821 373 3,424 53,719 57,516 Top Management/Senior Management Mid Management Professional/Specialist Non-Executive Total AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages – 343 9,771 10,114 1,983 7,804 106,357 116,144 03 Key Highlights 04 Management Discussion and Analysis
  177. 175 Conscious Self-Conduct Average Training Hours Completed per Employee * By Gender Workforce Category Female Male Sub Total Top Management/Senior Management 79 76 77 Mid Management 76 75 75 Professional/Specialist 64 66 65 Non-Executive 41 46 42 Total 64 68 66 * Note: All training data is reported on a calendar year (CY) basis. This is aligned with the Staff Training Expenditure (STE) report to BNM, which is submitted on a calendar year basis. Total Training Hours Completed* By Entity Workforce Category AmBank (M) Berhad AmBank Islamic AmInvestment Bank Sub Total 17,677 824 3,381 21,881 Mid Management 223,939 3,989 14,616 242,543 Professional/Specialist 266,986 1,924 6,239 275,149 48,749 – 1,557 50,306 557,351 6,737 25,792 589,880 Top Management/Senior Management Non-Executive Total * Note: All training data is reported on a calendar year (CY) basis. This is aligned with the Staff Training Expenditure (STE) report to BNM, which is submitted on a calendar year basis. Talent Development & Succession Planning Programmes Leadership Development Programmes FY2020 No. of Participating Employees (Attendees) 226 35,278 Total Training Completed (Hours) No. of Training Hours (Talent Programme) 8,941 No. of Training Hours (Other Programmes) 26,337 MCP and Successor Development Total Mission Critical Positions (MCP) 12 Total Successors 58 MCP: Successor Ratio Key Positions with Successors (%) Average Training (Hours) 156 Key Employee Qualifications Average Training (Days) 19.5 Chartered Bankers 4,044,905 Total Training Spent (RM) 17,898 Average Training Spent (RM) 35 Talent Promoted (%) 05Leadership 06 Sustainability Report 07 Additional Information FY2020 Chartered Professionals in Islamic Finance 1 MCP : 4.8 100% FY2020 17 9 AICB Professional Certification 247 5-Core AICB Certification 24% Future Talents FSTEP & AmGraduates 44 INSEAD, CASS and Cambridge Attendees 69 INTEGRATED REPORT 2020
  178. 176 Conscious Self-Conduct KEY INITIATIVES FOR FY2020 OCCUPATIONAL SAFETY & HEALTH (OSH) Health and Safety Training • Invested approximately RM250,000 in OSH-related training programmes. • Implemented the mandatory annual OSH e-learning programme on all employees Group-wide. • Conducted six OSH training programmes with 335 employees trained with OSH-related skills: – First Aid, CPR and AED – Permit to Work (PTW) Training for Contractors – HIRADC Training – ISO 45001:2018 Awareness Training – Fire Safety Training – Occupational Safety and Health Committee Roles and Responsibilities • Held a 2-day team-building exercise for Group OSH in November 2019 at Fifty4Fern Resort, Janda Baik. The exercise aims to improve the members’ teamwork abilities in addressing OSH-related matters. OSH Audits and Committee Meeting • Conducted regular OSH inspection audits at AmBank Group’s branches across all 14 retail banking regions, with relevant OSH risk mitigation recommendations tabled to the respective OSH Committees. • Held four OSH Committee Meetings throughout the financial year. Regional (Branch) OSH Inspection Audit No. Regional Branch Visits FY2020 1. Northern Region 1 1. Tanjung Bungah 2. Ayer Itam – Jalan Paya Terubong 3. Bayan Baru 18 June 2019 19 June 2019 20 June 2019 2. Northern Region 3 1. Sungai Dua 2. Bagan Ajam 3.Kangar 4.Langkawi 6 March 2020 26 June 2019 27 June 2019 28 June 2019 3. Northern Region 2 1. Tanjung Malim 2. Tanah Rata 3.Pangkor 4. Ayer Tawar 5. Kuala Sepetang 6.Langkap 7. Bagan Serai 8. Sungai Siput 2 July 2019 3 July 2019 4 July 2019 5 July 2019 9 July 2019 10 July 2019 11 July 2019 12 July 2019 4. Southern Region 1 1.Skudai 2. Pasir Gudang 3. Johor Bahru – Bukit Indah 4.Tampoi 5. Sungai Rengit 6. Permas Jaya 7. Ulu Tiram 8. Setia Tropika AMMB HOLDINGS BERHAD 01 Overview of AmBank Group Branch Inspections 02 Key Messages 16 July 2019 17 July 2019 18 July 2019 19 July 2019 17 March 2020 18 March 2020 19 March 2020 20 March 2020 03 Key Highlights 04 Management Discussion and Analysis
  179. 177 Conscious Self-Conduct OSH Audits and Committee Meeting (continued) Regional (Branch) OSH Inspection Audit No. Regional Branch Visits FY2020 5. Southern Region 2 1.Tampin 2. Yong Peng 6. Southern Region 3 1.Kajang 2.Mantin 3. Bandar Baru Bangi 4. Seri Kembangan 5.Balakong 6.Sepang 7.Semenyih 8.Putrajaya 7. Sarawak Region 1.Bintulu 2.Sarikei 3. Sibu Jaya 4. Sibu Jalan Pedada 8. East Coast Region 1.Bentong 9. Central Region 1 1. USJ Sentral 2. AmCorp Mall 3. Dataran Mentari 10 February 2020 16 January 2020 21 January 2020 10. Central Region 5 1. Jalan Raja Chulan 2. Sri Petaling 3. Taman Maluri 15 October 2019 16 October 2019 9 December 2019 11. Central Region 2 1. 2. 3. 4. 5. Medan Pasar Berjaya Times Square Bangsar Baru KL Sentral Desa Sri Hartamas 23 January 2020 30 January 2020 4 February 2020 6 February 2020 11 February 2020 12. Central Region 3 1. 2. 3. 4. Bandar Puteri Puchong Setia Alam Klang Bandar Puteri Klang Wisma SH NG 3 February 2020 9 January 2020 14 February 2020 7 January 2020 13. Central Region 4 1. Bestari Jaya 2. UIA Gombak 05Leadership 06 Sustainability Report 07 Additional Information Branch Inspections 23 July 2019 24 July 2019 20 August 2019 21 August 2019 22 August 2019 23 August 2019 27 August 2019 13 January 2020 15 January 2020 17 January 2020 3 4 5 6 September September September September 2019 2019 2019 2019 13 August 2019 19 February 2020 18 February 2020 INTEGRATED REPORT 2020
  180. 178 Conscious Self-Conduct Groupwide OSH Communication • Published monthly OSH bulletins in the AmBank Group OSH Portal that is available to all employees. • Carried out the biannual ‘OSH Feedback Solicitation’ initiative to formally receive OSH-related feedback from employees. • Published periodic OSH memorandums, prohibitions and updates within AmBank Group’s internal intranet. • Shared OSH-related incidents, investigations, inspections and briefing updates within the Group OSH Portal. Toxic Waste Dumping in Pasir Gudang • Implemented measures to mitigate the adverse impact of the illegal dumping of toxic waste in Johor, which could have affected the health of employees at our Pasir Gudang branch. The following mitigation actions were taken by relevant AmBank Group departments: 1. Group OSH Department (a)Engaged with AmBank Group local employees to monitor the situation. (b)Complied with OSH requirements to report the issue and protect employees until the situation was resolved. 2. Group Property Department (a)Provided three extractor ventilator fans during the incident and subsequently conducted air condition chemical cleaning. 3. Group Admin Department (a)Completed carpet cleaning for the Pasir Gudang branch. Group OSH Seminar • Organised the fourth annual OSH seminar on 21 November 2019, which was attended by approximately 120 participants. Invited guests included speakers from the Department of Occupational Safety and Health (DOSH), BP, Petronas and AmBank Group’s OSH consultant. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  181. 179 Conscious Self-Conduct ACHIEVEMENTS IN FY2020 OCCUPATIONAL SAFETY AND HEALTH Lower OSH-Related Incidents ISO 45001 :2018 Certification Audit Occupational Safety and Health Indicator* Total Number of Accidents Accidents with Fatality Accidents with Lost Workdays Total Lost Workdays Due to Incidents Accident without Lost Workdays Fatality Rate CY2017 CY2018 CY2019 21 15 11 0 0 0 19 14 11 1,323 469 418 2 1 0 0 0 0 Lost Time Injury Frequency Rate (LTIFR) 0.63 0.58 0.44 Lost Time Injury Incident Rate (LTIIR) 1.84 1.44 1.10 * Safety & Health’s (DOSH) Calendar Year Online Incident Reporting using JKKP Form 8 • Successfully retained the ISO 45001:2018 Certification by the National Institute of Occupational Safety & Health Sdn Bhd, reinforcing AmBank Group’s position as the first financial institution in Malaysia to receive this internationally recognised OSH standard. Conferred the Following OSH Awards: • MSOSH OSH Gold Class 2 Award in the Service Sector category at the MSOSH Occupational Safety and Health Award 2018 ceremony held on 1 August 2019. • National Council for Occupational Safety & Health (NCOSH) Award 2019 under the Financial category. AmBank Group has won this award for the second consecutive year. Note: All data related to OSH are reported on a calendar year basis. OSH e-Learning 99.80% of employees completed the OSH e-Learning module as at 10th April 2020. Audit Results by DOSH Branch Region Date Grade % Sabah 29 March 2019 A 90.12 Wangsa Maju Kuala Lumpur 16 July 2019 A 92.18 Sri Petaling Kuala Lumpur 17 July 2019 A 92.18 Setapak Kuala Lumpur 15 July 2019 A 93.40 Jalan Pudu Kuala Lumpur 24 July 2019 A 94.00 Bandar Manjalara Kuala Lumpur 23 July 2019 A 94.00 Bandar Sri Hartamas Kuala Lumpur 16 August 2019 A 93.37 NU Sentral Kuala Lumpur 17 September 2019 B 83.69 Selayang Kuala Lumpur 5 September 2019 A 91.60 Mentakab Pahang 6 November 2019 A 90.27 Ayer Keroh Melaka 14 January 2019 A 94.00 Jasin Melaka 15 November 2019 A 90.65 Labuan Labuan 20 November 2019 A 96.50 Plaza Shell (KK) 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  182. 180 Conscious Self-Conduct M7 : Responsible Sourcing & Procurement The impact of our ESG performance extends across the supply chains. Sourcing from suppliers that conduct unethical practices and environmental non-compliances may impact the Group’s reputation as well as lead to financial losses such as penalties, fines and work stop-orders. In addition to monitoring the sustainability practices of suppliers, the supply chain is an opportunity to maximise our socio-economic contributions to financially underserved businesses. As part of our Responsible Sourcing and Green Procurement for Supplier’s Onboarding Programme, potential and existing suppliers are required to complete a questionnaire that outlines the Group’s key expectations in regard to ethics, safety, social and environmental performance. Recognising the importance of a responsible supply chain, AmBank Group integrates sustainability principles in all our procurement activities. We are increasing our efforts to procure businesses that prioritise environmental, social and ethical activities. To do so, we carry out due diligence reviews such as vendor evaluations and risk impact assessments as part of our vendor selection criteria. Suppliers are required to meet a minimum of 40% of AmBank Group's Responsible Sourcing and Green Procurement criteria to be considered by the Group. However, we understand that sustainability is a relatively new field in which our vendors are still adapting to, and we believe that it is our responsibility to help them do so. Suppliers who score within 35% to 39% of the environmental and social criteria, while meeting other requirements, are placed on a Supplier Improvement Plan, which aims to help the supplier achieve the 40% requirement within 12 months. Key Components of Supplier Screening Questionnaire Business Integrity Safety and Social Performance Environmental Sustainability Product Performance Testing Resource Efficiency and Waste Reduction Energy Efficiency Environmentally Hazardous Substance Management Suppliers to adopt a policy governing anti-bribery, extortion, corruption, fraud, money laundering and misconduct. Suppliers to have a written Safety Policy in place which complies with industry, national and international standards that ensure all forms of employment are free of forced labour, bonded labour, slavery, human trafficking and child labour. Suppliers to promote the use of sustainable products (e.g. recyclables, reusable, non-toxic etc) and practices in the delivery of products and services. Suppliers to adhere to AmBank Group’s required performance and technical specifications. Suppliers to take back the products supplied for reuse or recycling, where applicable. Suppliers to employ energy-saving features to their products and services during use or on standby, where applicable. Suppliers to use licensed waste collectors for the collection and disposal of scheduled and hazardous wastes generated from their activities. The criteria involved in the outsourcing of products and services reflect the standards expected by suppliers to enhance customer satisfaction, ethical practices and regulatory compliance. Our procurement procedures are guided by AmBank Group’s Sourcing Policy and Supplier Code of Conduct, which promotes responsible and inclusive supply chain practices. The Group’s procurement contracts are based on the requirements stipulated in this policy, as well as relevant laws and regulations including: • • • • Cyber Security Clauses for IT and Outsourcing Vendors Financial Services Acts 2013 Islamic Financial Services Act 2013 Companies Act 2016 Additionally, we prioritise local suppliers and SMEs in support of local employment and economic growth. Awarding contracts to local suppliers also lower operating costs as well as minimises our logistical carbon footprint. Therefore, by supporting local suppliers, we contribute positively to the ESG agenda. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  183. 181 Conscious Self-Conduct KEY INITIATIVES FOR FY2020 ACHIEVEMENTS IN FY2020 Supplier Value Creation Supplier Screening and Onboarding • Assessed 179 suppliers, comprising of 80% current and 20% new vendors, according to the responsible sourcing and green procurement criteria. • 94% of active contracts made up of local suppliers, which constituted 86% of our total supplier spending in FY2020. Local vs International Suppliers • Placed suppliers that failed the assessment on the Supplier Improvement Plan, with a reassessment planned for FY2021. 1,783 1,697 1,826 1,739 1,633 1,541 Sustainable Procurement • Amended the Company Constitution so that the ‘Notice of Annual General Meeting’ is delivered in as a postcard without the accompanying CD-ROM and abridged copy of the report. This reduces the sourcing of printing and materials. • Purchased from socially-conscious enterprises, such as The Silent Teddies Bakery that employs deaf and mute bakers; and The Picha Project, a catering company that provides home-cooked meals prepared by marginalised communities. 86 FY2020 FY2019 FY2018 Local Suppliers International Suppliers Total Economic Contribution to Suppliers (RM) 63,565,250 eProcurement Portal 88,708,527 FY2020 Total 626,913,275 FY2019 Total 602,181,718 • Continue to digitalise our procurement practices for improved processing efficiency, cost savings and enhanced transparency. • Utilise an e-Contracting module to better manage our contractual commitments and supplier deliverables. • Embarked on a journey to source and implement a new ARIBA module for Sourcing and Supplier Lifecycle Management, as well as invest in Robotic Processing Automation (RPA) to robotise processing. The new systems are implemented in phases and will be ready to go live by FY2021. The investment in this new sourcing module and RPA will improve the end-to-end procurement processes and provide better efficiency, control and compliance. Stakeholders will be trained on the system functionalities and suppliers will be provided with a web link and guidelines on a ‘help-themselves’ approach on supplier registration via the new ARIBA system and ESG assessments on suppliers is one of the key features embedded in the system. 92 87 538,204,748 538,616,468 Local Suppliers International Suppliers Supplier Screening and Onboarding • 100% of new suppliers and contract renewals screened using ESG criteria Responsible Sourcing and Green Procurement Assessment 135 39 75% 3 Passed 2% Failed Number of Suppliers 2 22% 1% Responded ‘No Participation’ No Response % of Suppliers eProcurement Portal • 100% of Request for Information (RFI), Request for Quotation (RFQ), Request for Proposal (RFP) and Bidding processes are conducted online. • The new ARIBA system provides better features on traceability, progress-tracking on projects, record-keeping, improved adherence to compliance, controls, efficiency and many more. • The robotising of order processing will allow current resources to be upskilled and contribute to more strategic tasks. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  184. 182 Conscious Self-Conduct M10 : Energy, Water & Waste Management The impact of improper energy and waste management, such as pollution and degradation, affects the environment in which we operate and the well-being of the communities in which we serve. This negatively affects our reputation and commitment to being a responsible bank. High consumption of natural resource also releases greenhouse gas (GHG) into the atmosphere and contributes to the global climate emergency. The change in climate will directly impact and disrupt business operations, while also posing a risk to the economic growth and physical health of society at large. Key Principles of AmBank Group’s Environmental Policy Principle 1 We are committed to meet all our environmental compliance obligations such as relevant environmental legislations, regulations and standards to which the Group subscribes. Principle 2 In playing our part, AmBank Group strives to minimise the potential environmental impacts of our operations, which we see as fundamental to achieving sustainable growth and shareholder returns. We are continuously improving the environmental management of our operations by actively identifying and implementing green initiatives, such as energy-efficient infrastructure, responsible disposal of equipment and minimising the single-use of plastic products. The Group’s operations require minimal waste consumption and thus, the total volume remains insignificant. We are committed to the protection of the environment including the prevention of pollution. Principle 3 We aspire to continuously improve our environmental performance in ways that are commercially viable and valued by our management and stakeholders. Principle 4 In regard to climate action, we implement initiatives that reduce the Group’s overall carbon footprint. The scope of our GHG initiatives cover: We will practise responsible and green procurement to the best extent possible. • Scope 1 – Direct emissions from the fuel consumption of company-owned vehicles Principle 5 • Scope 2 – Indirect emissions from electricity consumption As part of our sustainable financing aspiration, we shall strive to reduce adverse environmental and social impact resulting from our lending, financing and investment activities. • Scope 3 – Indirect emissions from employee travel As we track our progress on a year-on-year basis, we aim to reduce our overall carbon emissions from our operations by 20% within the next four years, with FY2019 as the baseline. As we progress with our environmental efforts, we will set more long-term strategies and targets to play our part in protecting our stakeholders against climate risks. AmBank Group’s Environmental Management System (EMS) is governed by the Group’s Environmental Policy, which ensures all activities and practices consistently adhere to environmental laws, regulations and related policies. This policy was established in FY2019, and resulted in the upgrade of our RAMSus Environment Rating from Bronze to Silver. Principle 6 Environmental protection is the responsibility of all our employees. Restatement of FY2019 Data In FY2020, we established AmBank Group’s GHG Accounting and Reporting Practice Guide to better understand and track our carbon emissions. As a result, we are improving upon our GHG reporting with the following changes: • Scope 2: Computing the Scope 2 emissions by directly tracking our electricity consumption in kWh. In doing so, we are able to provide more accurate emissions data compared to FY2019, in which we tracked the costs of electricity consumption. • Scope 3: Including the emissions from the shuttle services involved in our employees’ commute. This includes shuttles between Wisma AmFirst and Glenmarie LRT Station, as well as Damansara Fairway 3 (DF3) to Kelana Jaya LRT Station. Due to the changes in GHG accounting, we are restating the FY2019 figures for Scope 2 and Scope 3 for more consistent and accurate data reporting. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  185. 183 Conscious Self-Conduct KEY INITIATIVES FOR FY2020 SCOPE 1 : DIRECT EMISSIONS FROM FUEL CONSUMPTION SCOPE 2: INDIRECT EMISSIONS FROM ELECTRICITY CONSUMPTION Vehicle Rationalisation Energy Efficiency Plan • Minimised the number of vehicle fleet by disposing seven more vehicles, with the total number of vehicles decreasing from 37 to 30. • The Revised Energy Efficiency Plan for the three years to FY2022 are set out in the table on page 184. In FY2020, the implementation of LED lights replacement for WAF and DF3 was carried out in June 2019 and completed in July 2019. The savings are achieved from August 2019 to March 2020 instead of the full financial year. The full-year targeted savings for FY2021 are set out in the table on page 184. Number of Vehicle Fleets 58 • The main changes to the Energy Efficiency Plan include: 41 – The acceleration of the plan from five to three. 37 30 FY2017 FY2018 FY2019 FY2020 – The revision of the targeted savings for AmBank Group branches, which was lowered from 20% to 10% as we are re-evaluating the strategy for airconditioning improvement. – The exclusion of electricity consumption for the Data Centre at Level 7, DF3 due to the implementation of LED change for DF3 excluded the data centre as the LED lights are already installed at the data centre beforehand. – The re-statement of FY2019 data in kWh. Shuttle Service • Provide shuttle service between Menara AmBank and Bangunan AmBank Group to minimise the number of employees driving between the two offices. • Reduced 24,388 km of distance travelled by vehicles by replacing 9,759 singlepassenger car trips. – The total number of branches involved for the replacement of LED lights is revised from 170 to 166 due to the exclusion of Putrajaya, Bandar Sunway, Menara AmBank and Bangunan AmBank Group. Putrajaya and Bandar Sunway branches were relocated to new locations and the data is not comparable. As for Menara AmBank and Bangunan AmBank Group, it will be done concurrently with the main building’s replacement of LED lights. Electric Vehicles • Purchased Hybrid cars that are more fuel-efficient and generate fewer carbon emissions compared to conventional cars. At the moment, 3 out of 30 vehicles owned by the Group are hybrid cars and it contributes 15% of the total carbon emissions produced from petrol. The number of hybrid cars is expected to grow over time as the Group complies with its Group Environmental Policy. Vehicle Compositions 3 FY2020 Hybrid Non-Hybrid 27 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  186. 184 Conscious Self-Conduct Energy Efficiency Plan (continued) The Revised Energy Efficiency Plan CO2e Savings (Tonnes) kWh Savings Implementation Year 2019 2020 2021 Buildings/ Branches MAB (Level 22,23,25,45) WAF & DF3 (excluding data centre) 17 Branches MAB (the remaining floors) & BAG 149 Branches Actual Target Actual Target 2019 2020 2021 2022 2019 2020 2021 2022 113,105 93,786 n/a n/a 66 55 n/a n/a n/a 110,175 143,175 n/a n/a 64 84 n/a n/a 128,253 141,882 n/a n/a 75 83 n/a n/a n/a 157,615 472,844 n/a n/a 92 277 n/a n/a 499,510 1,281,979 n/a n/a 272 691 LED Lighting System • Replaced conventional lights with an LED lighting system for Wisma AmFirst and Damansara Fairway 3 buildings in July 2019. • Replaced conventional lights with an LED lighting system for 17 AmBank Group branches in the central region. Due to the MCO, the appointed contractor was not able to continue with the installation of the LED lights for the remaining branches. • Targeted to continue with the installation of the LED lights for the remaining branches following the containment of COVID-19. The exercise is expected to complete by FY2021. Office Space Optimisation • Reduced our leased office space in Plaza See Hoy Chan and optimised the office space within Menara AmBank through a restacking exercise. Earth Hour Campaign • Participated in the Global Earth Hour Campaign on 28 March 2020 to raise awareness on the importance of climate action. • Switched off all lights for the following AmBank Group buildings: 1 Bangunan AmBank Group (BAG), Jalan Raja Chulan 2 Menara AmBank (MAB), Jalan Yap Kwan Seng 3 Wisma AmFirst (WAF), Kelana Jaya 4 Damansara Fairway 3 (DF3), Tropicana 5 Bangunan AmBank Group, Kuching Renewable Energy • Entered into an agreement with GSPARX Sdn Bhd, a wholly-owned subsidiary company of TNB Renewables Sdn Bhd, for the installation of a solar photovoltaic (PV) system on the rooftop of AmBank Group’s Damansara Fairway 3 building. • Once installed, the solar panels are expected to generate over 70,000 kWh of electricity annually and offset approximately 40.95 metric tonnes of carbon emissions yearly. This is equivalent to the carbon absorbed by 677 tree seedlings grown over ten years. • The installation of the solar panels was supposed to take place in April 2020. However, it is postponed due to the Movement Control Order (MCO) during the COVID-19 pandemic period. The installation work will commence after the MCO period is over. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  187. 185 Conscious Self-Conduct SCOPE 3 : INDIRECT EMISSIONS FROM EMPLOYEE TRAVEL Shuttle Service • Outsourced shuttle services to serve employees commuting at the following locations: I. Wisma AmFirst to Glenmarie LRT station and vice versa II. Damansara Fairway 3 (DF3) to Kelana Jaya LRT station and vice versa • Replaced 100,256 single-passenger car trips for FY2020 to save 75,684 km of distance travelled by individual vehicles. This amounts to approximately 11.18 tonnes of CO2 emissions saved. Air Travel • Continued to work with appointed travel agents to track the carbon emissions from airline bookings made for business-related travel using the International Civil Aviation Organisation’s Carbon Emissions Calculator. • Reduced the CO2 emissions from business air travel by 18.6% to 340.75 tonnes in FY2020. RESOURCE CONSERVATION AND WASTE MANAGEMENT Paperless Environment • Encouraged customers to opt for electronic Fixed Deposit (FD) and Term Deposit receipts, as well as passbook-less transactions, wherever possible. However, for customers that do not have access to AmOnline, such as children below 18 years old and senior citizens, we continue the requirement of maintaining their passbooks. • Promoted the adoption of e-statements and email communications with clients to reduce paper consumption and waste. • Replaced 214 conventional printers at the head office with Multi-Function printers that reduce the number of papers printed. Recycling Programmes • Provided recycling bins at the lobby and every floor of Menara AmBank and Bangunan AmBank Group to encourage waste separation for recyclables. The recycling bins not only reduce the amount of waste sent to landfills, but also lowered the transportation costs related to the collection and disposal of wastes. • Hired a qualified licensed third-party paper recycling vendor to ensure that all documents are shredded without compromising the confidentiality of the data. • Started to monitor the food waste generated from the food and beverages outlets within Bangunan AmBank Group, Menara AmBank and Wisma AmFirst. We are currently exploring Food Composting Machines that can recycle the food waste generated into compost. No Single-Use Plastic Programme • Launched the “No Single-Use Plastic Programme”, a group-wide initiative to eliminate the use of single-use plastics including plastic straws, plastic containers and plastic cutleries at AmBank Group premises. This aligns with Malaysia’s Roadmap Towards Zero Single-Use Plastics 2018-2030. • Commenced Phase 1 of the programme, which involved the participation of all food and beverages outlets at Menara AmBank, Bangunan AmBank Group and Wisma AmFirst. These outlets include cafeterias and other food and beverages tenant outlets. All patrons of these eateries are encouraged to bring their own containers and bags or opt to purchase biodegradable plastic at RM0.20 each. • Postponed the implementation of Phase 2 due to the Movement Control Order (MCO) during the COVID-19 pandemic period. Phase 2 involves other tenants within the various AmBank Group buildings such as clinics, florists, cafes and others, as well as all pantries in all AmBank Group locations including at the branches. The effort includes discontinuation of plastic-based marketing collaterals and merchandise items by AmBank Group and the full implementation of Bring Your Own (BYO) containers for takeaways at all food and beverages outlets. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  188. 186 Conscious Self-Conduct ACHIEVEMENTS IN FY2020 Overall Carbon Emissions • 16,261 tCO2e • 11% drop in total GHG emissions, with a 12% reduction in emissions per Full-Time Equivalent (FTE) Total GHG Emissions GHG Emissions by Scope GHG Emissions/FTE 20,437 20,978 17,745 18,292 15,810 16,261 1.94 424 419 122 FY2019 FY2019 (Restated) FY2020 122 350 102 Scope 2 Scope 1 FY2019 FY2019 (Restated) FY2020 Scope 3 FY2019 (Restated) 1.70 FY2020 Total GHG Emissions by Entity 19,630 17,145 15,162 1,085 939 880 42 126 21 AmBank 16 AmBank Islamic 113 86 88 7 AmInvestment Bank FY2019 AMMB HOLDINGS BERHAD 94 01 Overview of AmBank Group AmFund Management FY2019 (Restated) 02 Key Messages 6 88 6 AmIslamic Funds AmGeneral Insurance FY2020 03 Key Highlights 04 Management Discussion and Analysis
  189. 187 Conscious Self-Conduct SCOPE 1 : DIRECT EMISSIONS FROM FUEL CONSUMPTION Emissions And Petrol Consumption • 101.72 tCO2e • 17% reduction in Scope 1 emissions and petrol consumption by vehicle fleet, which is 12% higher than the set target GHG Emission From Petrol Consumption (Tonnes) 140.66 Petrol Consumption Per Year (Litres) 59,697 133.63 122.03 56,712 53,711 51,026 115.93 GHG Emissions By Entity (Tonnes) 83 44,773 101.72 69 27 13 FY2018 (Base Year) FY2020 FY2019 Target FY2018 (Base Year) Target Actual FY2020 FY2019 AmBank Actual 23 10 AmBank Islamic FY2019 AmInvestment Bank FY2020 SCOPE 2: INDIRECT EMISSIONS FROM ELECTRICITY CONSUMPTION Electricity Consumption • 15,809.78 tCO2e • 0.08 tCO2e per square meter of office space • 11% and 10% reduction in Scope 2 emissions and electricity consumption respectively • The Group is targeting to achieve an overall savings of 19% from its Scope 2 GHG emissions (3,434 tonnes) by FY2022, with FY2019 as the baseline. Actual vs. Target of Scope 2 GHG Emission (Tonnes) 23,012 23,012 20,437 17,745 FY2019 FY2019 (Restated) 16,204 15,810 15,279 FY2020 FY2021 Target 05Leadership 06 Sustainability Report 07 Additional Information 14,311 FY2022 Actual INTEGRATED REPORT 2020
  190. 188 Conscious Self-Conduct Electricity Consumption (continued) Total Electricity Consumption FY2019 Entities FY2019 (Restated) FY2020 RM (‘000) kWh (‘000) tCO2e RM (‘000) kWh (‘000) tCO2e RM (‘000) kWh (‘000) tCO2e 13,536 28,007 19,255 14,024 29,883 16,765 12,422 26,687 14,881 22 43 30 7 14 8 5 11 6 712 1,491 1,036 772 1,625 889 729 1,534 840 82 160 111 67 135 79 66 134 78 4 9 6 4 8 5 4 8 5 14,356 29,709 20,437 14,874 31,665 17,745 13,226 28,374 15,810 AmBank AmBank Islamic AmInvestment Bank AmFunds Management AmIslamic Funds Management Total Main Buildings Building Code RM (‘000) kWh (‘000) kWh/m2 kWh/FTE tCO2e Menara AmBank, Jalan Yap Kwan Seng MAB 862 1,715 60 1,034 1,004 Bangunan AmBank Group, Jalan Raja Chulan BAG 816 1,638 59 787 958 Menara MBF, Jalan Sultan Ismail MBF 206 373 52 900 218 Plaza See Hoy Chan, Jalan Raja Chulan PSC 48 99 67 889 58 Damansara Fairway 3 DF3 1,549 3,933 243 13,377 2,301 Wisma AmFirst, Kelana Jaya WAF 269 531 66 444 311 DU 54 107 67 2,103 63 WAB 127 257 37 N/A 150 MD 0 1 3 N/A 1 3,932 8,654 88 1,491 5,063 Building Damansara Utama Wisma AmBank, Jalan Pudu Menara Dion, Jalan Sultan Ismail Total Main Buildings and Branches Building/Location RM (‘000) kWh (‘000) kWh/m2 kWh/FTE tCO2e Main Buildings 3,932 8,654 88 1,491 5,063 Branches 9,294 19,720 182 9,364 10,747 13,226 28,374 137 3,586 15,810 Total AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  191. 189 Conscious Self-Conduct SCOPE 3 : INDIRECT EMISSIONS FROM EMPLOYEE TRAVEL • 349.84 tCO2e • 18% reduction in Scope 3 emissions, which is 13% higher than the set target • 19% reduction in carbon generated from business-related air travel • The Group is targeting to achieve an overall savings of 25% from its Scope 3 GHG emissions (109 tonnes) by FY2022, with FY2019 as the baseline. Scope 3 Actual vs. Target (CO2e) 419 424 tCO2e Business Unit 350 FY2019 FY2019 (Restated) FY2020 292 298 212 AmGeneral Insurance 88 88 113 AmInvestment Bank 23 23 17 AmFunds Management 15 15 7 1 1 1 419 424 350 AmBank & AmBank Islamic AmIslamic Funds Management FY2020 FY2019 (Restated) Target FY2019 403 Total Actual RESOURCE CONSERVATION AND WASTE MANAGEMENT • 100% of FD and Term Deposit receipts are now paperless • 6% rise in the number of savings passbooks due to new requirement by AmBank Group in July 2019 to maintain passbooks for children below 18 years old as they do not have access to AmOnline. Savings passbooks are also issued to senior citizens customers upon request. FD & Term Deposit Receipts (RM’000) Savings Passbooks (‘000) 31 275 17 182 13 43 5 FY2016 05Leadership FY2017 FY2018 06 Sustainability Report FY2019 0 FY2020 07 Additional Information FY2016 FY2017 FY2018 20 22 FY2019 FY2020 INTEGRATED REPORT 2020
  192. 190 Conscious Self-Conduct • 8% reduction in paper consumption, which is 3% higher than our set target. A3 & A4 Paper Consumption Total Weight of Waste Collected Against its Recovery Value Number of Sheets (million) 274 84 84 72 111 65 60 57 70 55 54 15 7 FY2016 FY2017 FY2018 Target FY2020 FY2019 5 FY2017 FY2016 Actual 26 23 11 FY2019 FY2018 Total Weight (000 KG) FY2020 Total Recovery Value (RM’000) • RM26,000 in recovery value for paper waste recycled by the third-party recycling vendor. The majority of paper waste collected was from the record management service providers due to the destruction of records and documents that passed the seven-year retention period. Breakdown of Paper Waste Collected (kg) 8,030 800 3,520 920 310 7,470 48,920 AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages MAB WAB BAG WAF DF3 Branches Record Management Service Providers 03 Key Highlights 04 Management Discussion and Analysis
  193. 191 Positive Societal Impact We take a forward-looking approach to be a force for good , in which we invest in our communities to create long-term growth and value. We strive to continuously improve our positive contributions and minimise the negative impacts of the business to our communities. Through our efforts, we aim to create an ecosystem that promotes social well-being within the Group as well as for all corners of society. M9: Community Investment & Development Social progress requires the economic empowerment of all communities. As a good corporate citizen, it is important to invest in community programmes that help close social gaps and improve the quality of life for underdeveloped communities. Social programmes also foster a sense of ownership and fulfilment in employees, who are able to volunteer and adopt a hands-on approach to contribute, thus improving their engagement, productivity and performance. As a strong advocate of inclusive economic growth and shared prosperity, AmBank Group takes a leading role in reaching out to society and addressing common development issues faced by communities. We actively engage with communities to understand their expectations and circumstances, as well as integrating their input into our decisions. AmBank Group’s CSR investments fall under the AmKasih Programme, which aims to enable social mobility and improve the quality of life across all levels of society. We also give back to society through Zakat contributions, in which AmBank Islamic distributes funds to associations and charity homes that support underprivileged communities. Similarly, AmBank Group actively contributes to the Financial Industry Collective Outreach (FINCO), implementing volunteer programme that allows our staff to engage in charity activities focusing on two key pillars: English Proficiency and Life Aspiration. This resonates with Tan Sri Azman Hashim’s role as the Chairman of both AmBank Group and FINCO, who is a strong advocate for equipping school children with the proper guidance, resources and skills needed to achieve their dreams. In addition to CSR programmes, we give back to society through Zakat contributions, in which AmBank Islamic distributes funds to associations and charity homes that support underprivileged communities. In 1985, the Group established AmGroup Foundation to receive and administer funds for educational, scientific, medical, charitable, religious and cultural benefits. Over the past 35 years, AmGroup Foundation continues to play a key role in social empowerment, mobility and inclusion. The mandates for AmGroup Foundation include: Religion • To subscribe, foster, develop and improve the knowledge of all forms of religion • To grant donations for the construction of religious schools and places of worship Research • To foster, subscribe and contribute to scientific and medical research and teachings • To provide and grant donations for medical and surgical facilities and services of all kinds Education • To foster, develop, and improve education according to the education laws of Malaysia • To decide from time to time, in such manner, the generality of this provision, the founding and maintaining of scholarships and chairs at schools, colleges and universities in Malaysia Human Rights • To subscribe and grant donations to local or national institutions or organisation approved by the Director General of Inland Revenue, Malaysia • To organise and support schemes for the relief of human suffering, improvement of the standard of human life, and treatment of sickness and disease 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  194. 192 Positive Societal Impact KEY INITIATIVES FOR FY2020 In FY2020 , we invested RM1,764,865 in community initiatives, benefitting 207 social organisations and schools, while improving the lives of 2,894 people and 500 families. * The initiatives listed are non-exhaustive, detailing the larger community investments made during the financial year. Kelab AmBank Group (KAG) Education Blood Donation Drive 2019 • Encouraged employees to donate blood and save lives through a blood drive. A total of 377 donors participated in the event, which was held at AmBank Group’s main office buildings as well as at other locations, such as branches in Menara Shell and various shopping malls nationwide. • Karnival Kewangan 2019: Sponsored the School Adoption Programme to enable 100 students to participate in financial carnivals held in Perlis and Terengganu. Participating students were given the opportunity to learn about the importance of savings and financial literacy at a young age through fun and engaging talks and activities. Outreach Programmes • AmBank Group SEMOA Orang Asli Education Centre Sponsorship: Continue to sponsor the AmBank Group SEMOA Orang Asli Education Centre, which focuses on the social and educational development of indigenous people residing in Tras, Raub, Pahang. The centre runs as a boarding house where Orang Asli students from all over Malaysia can live in a safe and structured environment while attending local schools. • Treasure Hunt Programmes: Collected and donated ‘treasures’, collected by employees in two treasure hunts, to Rapha Children Home, a children’s shelter home in Kuantan. The donated items include basic essential items such as food products, washing detergent, toothpaste and more. • Christmas Celebration: Organised a Christmas celebration party for Orang Asli community in Kampung Tras, Raub, Pahang. The two-day event involved 100 children from SEMOA (Semenanjung Orang Asli) Education Centre, who participated in exciting activities such as Christmas decorating, colouring contests and live performances. • Yayasan Munarah: Provided sponsorship for the Golf Amal Keputeraan 2019. The Charity Golf Sponsorship was supported by DYMM Yang Di Pertuan Besar Negeri Sembilan, which aims to raise funds for Tuanku Muhammad School, Kuala Pilah, to improve the school’s facilities and enable religious classes for the students. Welfare AmGroup Foundation Research • Perdana Leadership Foundation: Provided a Silver Sponsorship Package for Perdana Leadership Foundation CEO Forum 2019. With the theme “Accelerating the Fourth Industrial Revolution in Malaysia”, the forum encourages dialogue and debate amongst delegates on pressing economic and business issues. • Association of Voices of Peace, Conscience and Reason (PCORE): Provided support and funding to PCORE for their efforts to promote the culture of goodwill, harmony and mutual respect through culture and the arts which include visual art, literature, music, dance, drama. The association also organised an Interschool Art Competition between 200 schools to stimulate creative synergy among school communities of all age groups, ethnicities and cultures from Kuala Lumpur and Selangor. • Tabung Rayuan Hari Pahlawan: Sponsored the Kempen Tabung Pahlawan Charity Annual Dinner 2019, which aims to raise special funds in aiding former military personnel and their families. Focusing on the disabled and injured, aid was given in the form of funds, medical needs, and educational assistance. • Malaysian Red Crescent Society (MRCS) Relief Fund: Sponsored the BEATLEMANIA-Charity Concert in Aid of Malaysian Red Crescent Society. The aim of the concert was to raise funds for the Malaysian Red Crescent Society and Yayasan Sultanah Bahiyah. This enabled the non-profit organisations to continue their voluntary missions in providing a range of services to vulnerable communities, such as disaster response and relief, 24-hour emergency and ambulance service, community and healthcare services, first-aid as well community programmes. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  195. 193 Positive Societal Impact Sports AmKasih E-Wallet CSR Programme for the Urban Hardcore Poor • Majlis Sukan Negara Malaysia: Provided a Silver Sponsorship Package for Tennis Malaysia National Circuit 2019. Organised by Majlis Sukan Negara & Persatuan Tennis Malaysia, the event consisted of a National Tennis Circuit for players from each state. • Implemented food aid initiatives to provide targeted groups with an allowance that helps offset the cost of essential food items. • Yayasan Kecemerlangan Sukan: Acted as the main sponsor to the 14th AmBank Group – Sport Excel International Junior Golf Championship 2019. The tournament featured 72 junior golfers from Malaysia and 72 International players from India, Taiwan, Indonesia, China, Switzerland, Australia, Thailand, Brunei, Philippines, Japan, USA and South Korea. • Identified the families that need food aid with the help of local council NGOs (PDKs). The families are screened against a list of criteria and assessed independently. Once approved, accounts will be opened against the recipients’ MyKad, who are often single mothers or housewives. • Upload RM100 in spending credit into the recipients’ MyKad account each month for one year. The allowances are withdrawn at participating retailers. • Malaysian Ladies Golf Association (MALGA): Sponsored a golf event organised by MALGA where members of the public were welcomed to join. AmBank Group & Taylor’s Education Group CSR Partnership • Organised an English & Financial Literacy Partnership Programme for the B40 community, in collaboration with FINCO and Teach for Malaysia Alumni Association. COVID-19 Aid • MERCY Malaysia: Pledged our support and contribution to the MERCY Malaysia COVID-19 Strategic Preparedness and Response Plan in collaboration with the National Crisis Preparedness and Response Centre (CPRC) and the Ministry of Health (MOH). The programme aims to support the severely strained healthcare system, and reach to communities in need through its COVID-19 Pandemic Fund. • Food Packs: Distributed 210 food packs to healthcare frontliners at University Malaya Medical Centre and Hospital Putrajaya, in support of their service during the COVID-19 Pandemic. • Emphasised on measurable and scalable English and financial literacy for various age groups, thus benefiting adults, youths and children. • The programme covers three main topics: – Financial Literacy & Management – Fun English Competency – Emotional Well-Being Encouraging High-Achievers AmBank Group Community Programmes • AmMetLife Insurance announced its support for Junior Achievement Malaysia in driving financial literacy among school children. Financial Industry Collective Outreach (FINCO) • Collaborated with 107 Malaysian financial institutions and industry associations to conduct a series of social programmes through FINCO, the industry’s vehicle to carry out community outreach initiatives. • FINCO provides educational tools to underprivileged children and youth to help them achieve their life goals and build a better future. • As an active FINCO member, the Group’s Corporate Communications & Marketing (GCCM) team worked with AmBank’s Kota Kinabalu Branch to volunteer at the FINCO Reads Activity Fair held at underserved schools in rural Sabah. This aligns with the Group’s aspiration to support FINCO’s English Proficiency Pillar. 05Leadership 06 Sustainability Report 07 Additional Information • Provided opportunities for students to learn and experience the process of entrepreneurship, including setting up a business and designing and selling their products. Pertubuhan Tindakan Wanita Islam (PERTIWI) Malaysia Soup Kitchen • Collaborated with PERTIWI Soup Kitchen to sponsor food donations for homeless and underprivileged communities. • Organised an event for KAG members to distribute the food around Chow Kit and Petaling Street during the fasting month. INTEGRATED REPORT 2020
  196. 194 Positive Societal Impact Hari Raya Shopping • Invited 100 children from SK Batu Sembilan, Cheras, for Hari Raya shopping at Mydin Subang Jaya to buy Raya clothes, shoes and cookies, as well as necessary stationery items for school. • The group of children were also invited to join AmBank Group Chairman, Tan Sri Azman Hashim, at a Majlis Berbuka Puasa. Teaching Fire Safety at RAPHA Children’s Home • Improved the fire safety of RAPHA Children’s Home in Kuantan. The Group OSH personnel visited the home to implement the following measures: – Inspected the house for improvements in fire prevention – Installed two fire extinguishers and one smoke detector – Conducted a fire prevention briefing and quiz to raise the awareness of the children and workers – Collaborated with BOMBA Pahang for a fire demonstration Zakat Contribution • Paid Zakat contributions at all 14 state collection centres. The money provided is disbursed to asnaf groups from local universities, old folks’ homes, charity organisations and Muallaf associations, and is used for education, medical aid, monthly sustenance and religious programmes. ACHIEVEMENTS IN FY2020 Community Investments Community Reach Total People Reached & Institutions Sponsored Total Investments (RM) 1,764,865 1,123,545 FY2018 469 FY2019 3,189 FY2020 3,601 340,180 FY2018 FY2020 FY2019 Zakat Contributions Investments by Entity (RM) FY2020 AmBank Group AmGroup Foundation 72,405 1,692,460 Total Contributed (RM) FY2018 FY2019 FY2020 1,807,212 1,855,141 2,445,268 Awards & Recognition Winner of the Outstanding Volunteer Award at the FINCO Educators Conference 2020 in Kota Kinabalu, Sabah. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  197. 195 GRI Content Index This Sustainability Report has been prepared ‘In Accordance’ with the Global Reporting Initiative (GRI) Sustainability Reporting Guidelines: Core Option. The following table showcases the GRI Content Index and refers to information disclosed in two key documents: AmBank Group Sustainability Report and AmBank Group Integrated Annual Report 2020. CORE REQUIREMENTS GRI Standards Brief Description of the Disclosures Brief Information (Key Disclosures and References) Page Number Full or Partial Disclosures Organisational Profile 102-1 Name of the organisation AMMB Holdings Berhad – Full 102-2 Activities, brands, products, and services What We Do 9 Full 102-3 Location of headquarters Kuala Lumpur, Malaysia 3 Full 102-4 Location of operations Where We Operate 8 Full 102-5 Ownership and legal form AMBB Holdings Berhad – Full 102-6 Markets served Where We Operate AmBank Group serves over 170 branches and 11 regional offices all over Malaysia. 8 Full 102-7 Scale of the organisation Overview of AmBank Group Market Capitalisation: RM9.0 billion Assets: RM169.2 billion *As of 31 March 2020 6 Full 102-8 Information on employees and other workers Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development 167-179 Full 102-9 Supply Chain Conscious Self-Conduct – M7: Responsible Sourcing & Procurement We have 1,633 suppliers and contributed RM538.2 million to local suppliers. 181 Full 102-10 Significant changes to the organisation and its supply chain No significant changes in the organisation and supply chain. – Full 102-11 Precautionary principle or approach Conscious Self-Conduct – M10: Energy, Waster & Waste Management We are guided by AmBank Group’s Environmental Policy, which supports a precautionary approach to environmental risks and impacts. 149 & 182 Full 102-12 External initiatives Membership & Associations We contribute and participate in FINCO, Malaysia’s largest collective impact on CSR programmes. 150-151 Full 102-13 Membership of associations Membership & Associations We actively participate in professional associations and memberships to exchange knowledge and ideas on industry best practices. 150-151 Full Strategy 102-14 Statement from senior decision-maker Leadership Commitment 136-137 Full 102-15 Key impacts, risks, and opportunities Sustainability Matters – Management Approach The importance, risks and opportunities of AmBank Group’s sustainability matters are elaborated within the report. 140-141 Full 6 Full Ethics and Integrity 102-16 Values, principles, standards, and norms of behaviour Overview of AmBank Group – Our Purpose Our Value Creating Business Model AmBank Group Values: Proactive, Principled, Appreciative, Collaborative, and Experimental. 34-35 Governance 102-18 05Leadership Governance structure 06 Sustainability Report Sustainability Governance We are continuously reviewing and strengthening our sustainability governance approach. 07 Additional Information 144 Full INTEGRATED REPORT 2020
  198. 196 GRI Content Index GRI Standards Brief Description of the Disclosures Brief Information (Key Disclosures and References) Page Number Full or Partial Disclosures Stakeholder Engagement 102-40 List of stakeholder groups Stakeholder Engagement Key stakeholders groups: customers; employees; suppliers, government & regulators; communities, NGOs & civil society; shareholders & investors; business partners; media; and sustainability-certified bodies. 40-41 Full 102-41 Collective bargaining agreements Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development 12% of AmBank Group employees are covered by collective bargaining agreements. 170 Full 102-42 Identifying and selecting stakeholders We identify stakeholders according to their influence on the business, and the impact of the business on the stakeholders. 40 Full 102-43 Approach to stakeholder engagement We engage with stakeholders through various internal and external platforms. 40-41 Full 102-44 Key topics and concerns raised The list of topics of interest raised by stakeholders are addressed in the report. 40-41 Full – Full Reporting Practice 102-45 Entities included in the consolidated financial statements Annual Report (AmBank Group Financial Statement/Report) 102-46 Defining report content and topic Boundaries Scope of Sustainability Reporting The sustainability report covers AmBank Group’s sustainability initiatives and ESG impacts across our operations in Malaysia. 138 Full 102-47 List of material topics Sustainability Matters We identified ten sustainability matters that are material to our business and stakeholders. 139-140 Full 102-48 Restatement of information Restatement of FY2019 Data Due to changes in our GHG accounting, we are restating the FY2019 figures for Scope 2 and Scope 3 reporting. 182 Full 102-49 Changes in reporting Sustainability Matters We regrouped our sustainability matters into three new themes that reflect AmBank Group’s sustainability efforts: Responsible Banking, Conscious Self-Conduct, and Positive Societal Impact. 139 Full 102-50 Reporting period Scope of Sustainability Reporting This report covers the financial year 1 April 2019 to 31 March 2020, unless otherwise specified. 138 Full 102-51 Date of most recent report Our most recent Sustainability Report was published in AmBank Group’s Integrated Annual Report 2019. – Full 102-52 Reporting cycle Annual – Full 102-53 Contact point for questions regarding the report AmBank Group IR team; email ir@ambankgroup.com 77 Full 102-54 Claims of reporting in accordance with the GRI Standards Scope of Sustainability Reporting The scope of our sustainability disclosures is “In Accordance” with GRI Standards: Core Option. 138 Full 102-55 GRI content index This is the GRI Content Index. 195-201 Full 102-56 External assurance The authenticity of this report was verified by an external auditor, SIRIM QAS International Sdn Bhd. 202-205 Full AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  199. 197 GRI Content Index TOPIC-SPECIFIC DISCLOSURES GRI Standards Brief Description of the Disclosures Brief Information (Key Disclosures and References) Page Number Full or Partial Disclosures Responsible Banking Material Topic 1: Data Security, IT Infrastructure & Digital Transformation 103-1 Explanation of the material topic and Its boundary Responsible Banking – M1: Data Security, IT Infrastructure & Digital Transformation 152 Full 103-2 The management approach and its components Responsible Banking – M1: Data Security, IT Infrastructure & Digital Transformation 152-156 Full 103-3 Evaluation of the management approach Responsible Banking – M1: Data Security, IT Infrastructure & Digital Transformation 156 Full 201-1 Direct economic value generated and distributed Performance Review Economic Value Generated: RM9,324.6 million of operating revenue Economic Value Distributed: RM1,241.0 million for employees RM3.0 million capital payments RM327.0 million for government RM1.8 million for Community Investment RM2.4 million for Zakat Contributions 65 & 194 Full 417-1 Requirements for product and service information and labeling Responsible Banking – M1: Data Security, IT Infrastructure & Digital Transformation Through AmDigital, we aim to improve customer efficiencies and better serve our customers. 152-156 Full Material Topic 2: Customer Satisfaction 103-1 Explanation of the material topic and its Boundary Responsible Banking – M2: Customer Satisfaction 157 Full 103-2 The management approach and its components Responsible Banking – M2: Customer Satisfaction 157-158 Full 103-3 Evaluation of the management approach Responsible Banking – M2: Customer Satisfaction 158 Full 416-1 Assessment of the health and safety impacts of products and service categories Responsible Banking – M2: Customer Satisfaction We implemented measures to address the financial distress faced by customers during COVID-19. 159-160 Partial 417-1 Requirements for product and service information and labeling Sustainability Governance – Key Policies and Governance Guidelines That Address Sustainability Matters We comply with our Code of Conduct (Treating Customers Fairly) and Customer Service Charter (Service Standards) to ensure the best product and services are delivered to our customers. 145 Full Net Promoter Score (NPS) Achievements in FY2020 15-point improvement in NPS, from -21 to -06. No. 2 ranking in NPS amongst industry competitors. 158 – Non-GRI disclosure 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  200. 198 GRI Content Index GRI Standards Brief Description of the Disclosures Brief Information (Key Disclosures and References) Page Number Full or Partial Disclosures Material Topic 5: Financial Inclusion & Responsible Lending 103-1 Explanation of the material topic and its Boundary Responsible Banking – M5: Financial Inclusion & Responsible Lending 159 Full 103-2 The management approach and its components Responsible Banking – M5: Financial Inclusion & Responsible Lending 159-160 Full 103-3 Evaluation of the management approach Responsible Banking – M5: Financial Inclusion & Responsible Lending 159 Full 203-1 Infrastructure investments and services supported Responsible Banking – M5: Financial Inclusion & Responsible Lending We offer cashless collection solutions via JomPAY to mosques, Zakat centres and NGOs. We also deliver retirement solutions to investors. 160 Full 203-2 Significant indirect economic impacts Responsible Banking – M5: Financial Inclusion & Responsible Lending We implemented COVID-19 Protection initiatives, including payment programmes and loans deferment for customers impacted by the pandemic. 160 Full Material Topic 6: Responsible Marketing, Product & Services 103-1 Explanation of the material topic and its Boundary Responsible Banking – M6: Responsible Marketing, Product & Service Design 161 Full 103-2 The management approach and its components Responsible Banking – M6: Responsible Marketing, Product & Service Design 161-162 Full 103-3 Evaluation of the management approach Responsible Banking – M6: Responsible Marketing, Product & Service Design 162 Full 417-1 Requirements for product and service information and labeling Responsible Banking – M6: Responsible Marketing, Product & Service Design We ensure ethical marketing activities, branding and communication through our Brand Governance, Group Campaign Marketing Review Checklist, and other regulatory guidelines. 162 Full Material Topic 8: Environmentally & Socially Responsible Investment 103-1 Explanation of the material topic and its Boundary Responsible Banking – M8: Environmentally & Socially Responsible Investment 163 Full 103-2 The management approach and its components Responsible Banking – M8: Environmentally & Socially Responsible Investment 163 Full 103-3 Evaluation of the management approach Responsible Banking – M8: Environmentally & Socially Responsible Investment 163 Full Non-GRI disclosure Sustainable and Responsible Investment Responsible Banking – M8: Environmentally & Socially Responsible Investment We spur ethical financing through SRI, SUKUK and Green Bonds. We are responsible for raising the first ASEAN Green Bond and GREEN SRI Sukuk. 163 – Conscious Self-Conduct Material Topic 3: Ethics, Governance & Compliance 103-1 Explanation of the material topic and its Boundary Conscious Self-Conduct – M3: Ethics, Governance & Compliance 164 Full 103-2 The management approach and its components Conscious Self-Conduct – M3: Ethics, Governance & Compliance 164-166 Full 103-3 Evaluation of the management approach Conscious Self-Conduct – M3: Ethics, Governance & Compliance 166 Full AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  201. 199 GRI Content Index GRI Standards Brief Description of the Disclosures Brief Information (Key Disclosures and References) Page Number Full or Partial Disclosures 140-141 Full 164-166 Full Material Topic 3: Ethics, Governance & Compliance 205-1 205-2 Operations assessed for risks related to corruption Sustainability Matters – Management Approach Communication and training about anticorruption policies and procedures Conscious Self-Conduct – M3: Ethics, Governance & Compliance Our response to the risk, opportunities and response related to corruption is included in the Management Approach table. We provide various compliance training and awareness programmes to employees and other relevant stakeholders. Material Topic 4: Conducive & Inclusive Workplace and Human Capital Development 103-1 Explanation of the Material topic and its Boundary Conscious Self-Conduct – M4 Conducive & Inclusive Workplace and Human Capital Development 167 Full 103-2 The management approach and its components Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development 167, 169, 173-174, 176 & 178 Full 103-3 Evaluation of the management approach Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development 170-173, 174-175 & 179 Full 401-1 New employee hires and employee turnover Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development High performer retention rate: Female 97%, Male 96% Employee turnover rate: Voluntary 13%, Involuntary 1% 170-171 Full 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Full-time employees are provided with life insurance, health care, parental leave, retirement provision and others. 169 & 173 Full 401-3 Parental leave Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development Both male and female employees are provided with parental leave, with 3% and 5% utilising this benefit in FY2020, respectively. 173 Full 403-1 Occupational health and safety management system Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development Our stringent OSH management System protects our people against accidents and injuries. We conduct regular OSH audits, Groupwide OSH communication and training seminars. 176 & 178 Full 403-2 Hazard identification, risks assessment, and incident investigation Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development During the year, we achieved zero fatality cases in the workplace, with 11 work-related accidents reported. 179 Full 403-3 Occupational health services Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development Our stringent OSH Management System protects our people against accidents and injuries. Carried out wellness activities including health screening, health talks, fitness challenge campaigns and public runs for a healthier lifestyle. Provision of comprehensive healthcare coverage, gymnasium facilities, health club membership and health-oriented activities. 169 & 176 Partial 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  202. 200 GRI Content Index GRI Standards Brief Description of the Disclosures Brief Information (Key Disclosures and References) Page Number Full or Partial Disclosures Material Topic 4: Conducive & Inclusive Workplace and Human Capital Development 403-4 Worker participation, consultation, and communication on occupational health and safety Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development We publish monthly OSH bulletins, periodic OSH memorandums, prohibitions and updates within the Group’s internal intranet and portal. Carried out biannual OSH Feedback Solicitation initiative. 178 Full 403-5 Worker training on occupational health and safety Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development We implemented Health and Safety Training, OSH e-Learning and OSH seminars that comply with Occupational Safety and Health Policy Statement. 176-179 Full 403-6 Promotion of workers health Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development We provide health facilities to employees. We also organised AmBank Group Health & Wellness Month Campaign. KAG continue to invest in employee well-being through comprehensive healthcare coverage and provision of gymnasium facilities. 169 Full 403-7 Workers covered by an occupational health and safety management system Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development We have systems in place to mitigate risks to workplace safety. A stringent OSH Management System protects the physical health of our people against accidents and injuries. 176 Full 403-9 Work-related injuries Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development 179 Full 404-1 Average hours of training per employee Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development Each employee received an average of 66 hours of training. 175 Full 404-2 Programs for upgrading employee Skills and transition assistance programs Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development We continue to invest in our talent and leadership development programmes. 173-175 Partial 405-1 Diversity of governance bodies and employees Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development 39% of Top/Senior Management positions are held by women, whilst 25% of the Board of Directors are female. 171 Full 405-2 Ratio of basic salary and remuneration between male & female employees Conscious Self-Conduct – M4: Conducive & Inclusive Workplace and Human Capital Development 172 Full Material Topic 7: Responsible Sourcing & Procurement 103-1 Explanation of the material topic and its boundary Conscious Self-Conduct – M7: Responsible Sourcing & Procurement 180 Full 103-2 The management approach and its components Conscious Self-Conduct – M7: Responsible Sourcing & Procurement 180-181 Full AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  203. 201 GRI Content Index GRI Standards Brief Description of the Disclosures Brief Information (Key Disclosures and References) Page Number Full or Partial Disclosures Material Topic 7: Responsible Sourcing & Procurement 103-3 Evaluation of the management approach Conscious Self-Conduct – M7: Responsible Sourcing & Procurement 181 Full 204-1 Proportion of spending on local suppliers Conscious Self-Conduct – M7: Responsible Sourcing & Procurement RM538,204,748 contributed to our local suppliers. 181 Full 308-1 New suppliers that were screened using environmental criteria Conscious Self-Conduct – M7: Responsible Sourcing & Procurement 100% of new suppliers and contract renewals screened using ESG criteria. 181 Full 414-1 New suppliers that were screened using social criteria Conscious Self-Conduct – M7: Responsible Sourcing & Procurement 100% of new suppliers and contract renewals screened using ESG criteria. 181 Full Material Topic 10: Energy, Water & Waste Management 103-1 Explanation of the material topic and its boundary Conscious Self-Conduct – M10: Energy, Water & Waste Management 182 Full 103-2 The Management approach and its components Conscious Self-Conduct – M10: Energy, Water & Waste Management 182-185 Full 103-3 Evaluation of the management approach Conscious Self-Conduct – M10: Energy, Water & Waste Management 186-190 Full 302-1 Energy consumption within the organisation Conscious Self-Conduct – M10: Energy, Water & Waste Management Total of energy consumption: 28,374,000 kWh 187-190 Full 302-4 Reduction of energy consumption Conscious Self-Conduct – M10: Energy, Water & Waste Management Total reduction of energy consumption: 3,291,000 kWh (10%) 187-188 Full 305-1 Direct (Scope 1) GHG Emissions Conscious Self-Conduct – M10: Energy, Water & Waste Management Scope 1 Emissions: 101.72 tCO2e 187 Full 305-2 Energy indirect (Scope 2) GHG Emissions Conscious Self-Conduct – M10: Energy, Water & Waste Management Scope 2 Emissions: 15,809.78 tCO2e (11% emission reduction) 187-188 Full 305-3 Other indirect (Scope 3) GHG Emissions Conscious Self-Conduct – Achievements in FY2020 Scope 3 Emissions: 349.84 tCO2e from business-related travel. 189-190 Full Positive Societal Impact Material Topic 9: Community Investment & Development 103-2 The management approach and its components Positive Societal Impact – M9: Community Investment & Development 191 Full 103-3 Evaluation of the management approach Positive Societal Impact – M9: Community Investment & Development 192-194 Full 203-1 Infrastructure investments and services supported Positive Societal Impact – M9: Community Investment & Development We invest in social mobility and community outreach through our AmKasih Programme. We also give back to the society through Zakat contributions, in which AmBank Islamic distributes funds to associations and charity homes that support underprivileged communities. 192-194 Full 413-1 Operations with local community engagement, impact assessment, and development programs Positive Societal Impact – M9: Community Investment & Development The AmGroup Foundation receives and administers funds for educational, scientific, medical, charitable, religious and cultural benefits. The money from Zakat contributions are disbursed to asnaf groups from local universities, old folks homes, charity organisations and Mualaf associations. These engagements were assessed to obtain social and environmental impacts. 192-194 Full 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  204. 202 Independent Assurance Statement INDEPENDENT ASSURANCE STATEMENT (PARTIAL) Scope and Objective SIRIM QAS International Sdn. Bhd., a Conformity Assessment Body in Malaysia, with extensive expertise and experience in the provision of sustainability-related assurance services, was engaged by AMMB Holdings Berhad (hereafter referred to as AmBank Group) to perform an independent verification and provide partial assurance of AmBank Group Sustainability Statement 2020. The main objective of verification process is to provide assurance to AmBank Group and its stakeholders of the accuracy and reliability of the selected information presented in the Sustainability Statement. This was confirmed through checking and verifying claims made in the statement. The verification audit by SIRIM QAS International covered only sustainability-related activities selected by AmBank Group which had been included in AmBank Group Sustainability Report of the Integrated Annual Report 2020. The management of AmBank Group was responsible for the preparation of the Sustainability Statement. The objectivity and impartiality of this verification statement is assured as no member of the verification team and no other employee of SIRIM QAS International was involved in the preparation of any part of the AmBank Group Integrated Annual Report 2020. Verification team The verification team from SIRIM QAS International consisted of: 1) AMMB HOLDINGS BERHAD Ms. Aernida Abdul Kadir 01 Overview of AmBank Group : 02 Key Messages Team Leader 03 Key Highlights 04 Management Discussion and Analysis
  205. 203 Independent Assurance Statement Methodology The verification process was carried out by SIRIM QAS International between April and June 2020 . It covers the selected sustainability-related activities as follows: Page no. No. Topic Sustainability Report of the Integrated Annual Report 2020 1 2 Sustainability Governance: i) Governance Structure 144 ii) Sustainability Risk Management 145 Conscious Self-Conduct: i) Workplace Statistics 167 ii) People Management 169 iii) Capability Development 172 iv) Occupational Safety and Health 179 v) Supplier Screening and On-Boarding 181 vi) Sustainable Procurement 181 vii) Energy, Water and Waste Management 182 The verification involved the following activities: • Reviewing and verifying the accuracy of data collected from various sources and that are presented in the Sustainability Report 2020; • Reviewing of internal and external documentation and displays such as awards, press releases, media publications, internal newsletters, internal systems, etc.; • Interviewing of key personnel responsible for collating information and writing various parts of the Sustainability Report in order to substantiate the veracity of the claims; • Evaluating the adequacy of the Sustainability Statement of AmBank Group and its overall presentation against the GRI Standards. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  206. 204 Independent Assurance Statement During the verification process , issues were raised and clarifications were sought from the management of AmBank Group relating to the accuracy of some of the data and statements contained in the Sustainability Report. The Sustainability Report was subsequently reviewed and revised by AmBank Group in response to the findings of the verification team. It can be confirmed that the changes incorporated into the final version of the Sustainability Report satisfactorily addressed the issues that had been raised. The verification process was subjected to the following limitations: • The scope of work did not involve verification of information reported in the AmBank Group Integrated Annual Report 2020; • The verification was designed to provide limited assurance irrespective of the organization’s ability to achieve its objectives, targets or expectations on sustainabilityrelated issues; • The verification process did not include physical inspections of any of AmBank’s corporate offices and operating assets. It has been carried out through remote assessment during Malaysia Movement Control Order; and • The verification team did not verify any contractor or third-party data. Greenhouse Gases (GHG) Emissions and Carbon Footprint As for the GHG emission reporting in year 2020, AmBank Group has included Direct GHG Emissions i.e. Scope 1, Indirect GHG Emissions from imported energy i.e. Scope 2) and Indirect GHG Emissions from other sources i.e. Scope 3. The GHG emission identification and quantification has been carried out in accordance with the requirements of ISO 14064-1:2018 with the following coverage: • The Scope 1 emissions from fuel consumption by company-owned vehicles; • The Scope 2 emissions resulting from electricity consumption by the Group; • The Scope 3 covers emissions from employee’s travel resulted from air travelling and the provision of outsourced shuttle service for employee commuting to and fro Wisma AmFirst to Glenmarie LRT station and Damansara Fairway 3 to Kelana Jaya LRT station. The total computation of the FY2020 GHG emissions for AmBank Group has been prepared internally. The verification was conducted in reference to the requirements of ISO 140643:2019. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  207. 205 Independent Assurance Statement Based on reviewed information , the following was verified: Greenhouse gas emissions (tCO2e) Scope 1 Scope 2 Scope 3 102 15,810 350 Going forward, AmBank Group has identified and continue to implement numbers of GHG programs as measures to manage their GHG emissions with the goal to reduce and minimize the organization carbon footprints. AmBank Group has established a plausible target for GHG emissions reduction and/or overall saving towards FY2022. Conclusion Based on the selected topics and information provided during the verification process, the following represents SIRIM QAS International’s opinion: • The level of accuracy of relevant data included in the AmBank Group Sustainability Report 2020 is fair and acceptable; • The selected content and quality were well established. The level of sustainability performance information in the statement was found to be acceptable; • The information has been presented in an appropriate manner; • The personnel responsible were able to reliably demonstrate the origin(s) and interpretation of data contained in the statement; • AmBank Group has satisfactorily addressed, in the final version of the Sustainability Report 2020, all issues that had been raised during the verification audit. Prepared by: Approved by: AERNIDA ABDUL KADIR Verification Team Leader Management System Certification Department SIRIM QAS International Sdn. Bhd. Date : 26 June 2020 MOHD HAMIM BIN IMAM MUSTAIN Senior General Manager Management System Certification Department SIRIM QAS International Sdn. Bhd. Date : 26 June 2020 Note: This Independent Assurance Statement has been issued based on the content verified prior to the approval date. SIRIM QAS International Sdn Bhd will not be responsible for any changes or additions made after the referred date. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  208. 206 Notice of Twenty-Ninth Annual General Meeting NOTICE IS HEREBY GIVEN THAT the Twenty-Ninth (29th) Annual General Meeting (AGM) of AMMB Holdings Berhad (AMMB or the Company) will be conducted virtually through live streaming, at a broadcast venue at Board Room, 26th Floor, Bangunan AmBank Group, Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia (the “Broadcast Venue”) on Thursday, 27 August 2020 at 10.00 a.m. for the following purposes: AGENDA RESOLUTION As Ordinary Business 1. To receive the Audited Financial Statements for the financial year ended 31 March 2020 together with the Reports of the Directors and Auditors thereon. 2. To approve the payment of Directors’ fees of RM1,438,128 for the financial year ended 31 March 2020. Ordinary Resolution 1 3. To approve the payment of benefits payable to the Directors (excluding Directors’ fees) up to an aggregate amount of RM2,500,000 for the period from 1 August 2020 until the next AGM of the Company. Ordinary Resolution 2 4. To re-elect the following Directors who retire by rotation pursuant to Clause 94 of the Company’s Constitution: i. Voon Seng Chuan ii. Farina Binti Farikhullah Khan Ordinary Resolution 3 Ordinary Resolution 4 To re-elect the following Directors who were appointed during the financial year and retire pursuant to Clause 102 of the Company’s Constitution: i. Hong Kean Yong ii. Dato’ Kong Sooi Lin Ordinary Resolution 5 Ordinary Resolution 6 To re-appoint Messrs Ernst & Young PLT as Auditors of the Company and to authorise the Directors to determine their remuneration. Ordinary Resolution 7 5. 6. As Special Business To consider and if thought fit, to pass the following resolutions: 7. Proposed Renewal of Authority to Allot and Issue New Ordinary Shares in the Company for the Purpose of the Company’s Dividend Reinvestment Plan Ordinary Resolution 8 “THAT the Directors of the Company be and are hereby authorised to allot and issue such number of new ordinary shares in the Company from time to time as may be required for the purpose of the Company’s Dividend Reinvestment Plan as approved at the Extraordinary General Meeting of the Company held on 2 September 2010, which gives the shareholders of the Company the option to elect to reinvest their cash dividend entitlements in new ordinary shares of the Company.” 8. Proposed Authority to Allot and Issue New Ordinary Shares Pursuant to Sections 75 and 76 of the Companies Act, 2016 Ordinary Resolution 9 “THAT subject to the approvals of the relevant authorities and pursuant to Sections 75 and 76 of the Companies Act, 2016, the Directors be and are hereby authorised to allot and issue new ordinary shares in the Company at any time, to such persons and upon such terms and conditions and for such purposes as the Directors may, in their absolute discretion deem fit, provided that the aggregate number of shares to be issued pursuant to this resolution does not exceed ten percent (10%) of the total number of issued shares of the Company for the time being. THAT the Directors be and are hereby empowered to obtain the approval for the listing of and quotation for the additional shares so issued on Bursa Malaysia Securities Berhad. AND THAT such authority shall continue to be in force until the conclusion of the next Annual General Meeting of the Company.” AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  209. 207 Notice of Twenty-Ninth Annual General Meeting 9 . Proposed Renewal of Authority for the Purchase by the Company of its own Ordinary Shares Ordinary Resolution 10 “THAT, subject to the Companies Act 2016 (Act), the Constitution of the Company, the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Securities) (Listing Requirements) and the approval of such relevant governmental and/or regulatory authorities, the Board of Directors of the Company (Board) be authorised to renew the authority to purchase such number of ordinary shares of the Company on the Main Market of Bursa Securities (Proposed Renewal of Share Buy-Back Authority) at any time through Bursa Securities, upon such terms and conditions as the Board shall in their discretion deem fit and expedient in the best interest of the Company provided that: (a) the aggregate number of ordinary shares which may be purchased and/or held by the Company shall not exceed three percent (3%) of the total number of issued shares of the Company at any point in time; and (b) the maximum amount of funds to be allocated by the Company for the Proposed Renewal of Share Buy-Back Authority shall not exceed the retained profits of the Company at the time of purchase by the Company of its own ordinary shares. THAT upon the purchase by the Company of the ordinary shares, the Board shall have the absolute discretion to decide whether such shares purchased are to be cancelled and/or retained as treasury shares and distributed as dividends or resold on the Main Market of Bursa Securities or transferred for the purpose of or under the AMMB Holdings Berhad Executives’ Share Scheme and any other employees’ share scheme which the Company may establish or any other manner as prescribed by the Act, rules, regulations and orders made pursuant to the Act, the requirements of the Listing Requirements and any other relevant authority for the time being in force. THAT such authority conferred by this resolution will commence immediately upon the passing of this resolution and may only continue to be in force until: (a) the conclusion of the Thirtieth (30th) Annual General Meeting (AGM) of the Company, at which time the authority will lapse unless by ordinary resolution passed at the 30th AGM, the authority is renewed, either unconditionally or subject to conditions; (b) the expiration of the period within which the 30th AGM of the Company is required by law to be held; or (c) revoked or varied by an ordinary resolution passed by the shareholders in a general meeting, whichever is the earliest but not as to prejudice the completion of purchase by the Company before the aforesaid expiry date and, in any event, in accordance with the provisions of the Act, the rules and regulations made pursuant thereto and the Listing Requirements and/or any other authorities. AND THAT authority be and is hereby unconditionally and generally given to the Board to take all such steps that are necessary and expedient (including without limitation, the opening and maintaining of central depository accounts under the Securities Industry (Central Depositories) Act 1991, and the entering into of all agreements, arrangements and guarantees with any party or parties) to implement, finalise and give full effect to the Proposed Renewal of Share Buy-Back Authority with full powers to assent to any conditions, modifications, revaluations, variations and/or amendments (if any) as may be imposed by the relevant authorities and with full power to do all such acts and things thereafter on any part of the shares bought-back in accordance with the Act, the provisions of the Constitution of the Company, the Listing Requirements and all other relevant governmental and/or regulatory authorities.” 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  210. 208 Notice of Twenty-Ninth Annual General Meeting 10 . Proposed Renewal of Existing Shareholder Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature with Amcorp Group Berhad Group Ordinary Resolution 11 “THAT the shareholder mandate for the Company and/or its subsidiaries to enter into recurrent related party transactions of a revenue or trading nature with Amcorp Group Berhad and any of its subsidiaries and/or associated companies (Amcorp Group) which are necessary for the day-today operations of the Company and/or of its subsidiaries in the ordinary course of business on terms not more favourable to Amcorp Group than those generally available to and/or from the public and which are not detrimental to the minority shareholders of the Company, particulars of which are set out in Part 2.2.1 of Section 2.2 of the Circular to Shareholders dated 28 July 2020 be hereby renewed and to continue in force until the conclusion of the next Annual General Meeting of the Company. AND THAT the Directors of the Company be and are hereby authorised to complete and do all such acts and things as they may consider expedient or necessary or in the interests of the Company and/or its subsidiaries and to give effect to the transactions contemplated and/or authorised by this resolution.” 11. To transact any other business of which due notice shall have been received. FURTHER NOTICE IS HEREBY GIVEN THAT for the purpose of determining a member who shall be entitled to participate and vote at the 29th AGM, the Company shall be requesting from Bursa Malaysia Depository Sdn Bhd in accordance with the provisions under Clauses 67(1), 67(2) and 67(3) of the Company’s Constitution and Section 34(1) of the Securities Industry (Central Depositories) Act 1991 to issue a General Meeting Record of Depositors (ROD) as at 19 August 2020. Only a depositor whose name appears in the ROD as at 19 August 2020 shall be entitled to participate and vote at the 29th AGM or appoint a proxy(ies) to participate and vote on his/her behalf. By Order of the Board Koid Phaik Gunn (MAICSA 7007433) (SSM Practising Certificate No. 202008003140) Group Company Secretary Kuala Lumpur 28 July 2020 Notes: (A) Remote Participation and Electronic Voting (1) The 29th AGM will be conducted virtually through live streaming and online remote voting via the Remote Participation and Voting (RPV) facilities to be provided by the Company’s Share Registrar, Boardroom Share Registrars Sdn Bhd via Boardroom Smart Investor portal at https://boardroomlimited.my. Please follow the procedures provided in the Administrative Guide for the AGM in order to register, participate and vote remotely via the RPV facilities. (2) The Broadcast Venue is strictly for the purpose of complying with Section 327(2) of the Companies Act, 2016 which require the Chairman of the meeting to be present at the main venue of the meeting. Members/proxies will not be allowed to be physically present at the Broadcast Venue. (3) All resolutions set out in the Notice of the 29th AGM will be put to vote by way of poll. (B) Appointment of Proxy (1) A member of the Company entitled to participate and vote at the AGM is entitled to appoint more than one proxy to participate and vote on his/her behalf, provided he/she specifies the proportion of his/her shareholdings to be represented by each proxy. (2) A proxy need not be a member of the Company. There shall be no restriction as to the qualification of the proxy. A proxy appointed to participate and vote at the AGM shall have the same rights as the member to pose questions at the AGM. (3) Where a member of the Company is an authorised nominee, as defined in the Securities Industry (Central Depositories) Act, 1991 (SICDA), it may appoint more than one proxy in respect of each securities account it holds in ordinary shares of the Company standing to the credit of the said securities account. The appointments shall be invalid unless the proportion of shareholdings to be represented by each proxy is specified in the instrument appointing the proxies. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  211. 209 Notice of Twenty-Ninth Annual General Meeting (4) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account (omnibus account), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. An exempt authorised nominee refers to an authorised nominee defined under the SICDA which is exempted from compliance with the provisions of subsection 25A(1) of SICDA. The appointments shall be invalid unless the proportion of shareholdings to be represented by each proxy is specified in the instrument appointing the proxies. (5) The instrument appointing a proxy shall be in writing under the hand of the appointor or of his/her attorney duly authorised in writing or if the appointor is a corporation, either under seal or under the hand of an officer or attorney of the corporation duly authorised. (6) If the Form of Proxy is returned without indication as to how the proxy shall vote, the proxy will vote or abstain as he/she thinks fit. If no name is inserted in the space provided for the name of your proxy, the Chairman of the Meeting will act as your proxy. (7) The appointment of a proxy may be made in the following manner and must be received by the Company via its Share Registrar, Boardroom Share Registrars Sdn Bhd not less than 48 hours before the time appointed for holding the 29th AGM, i.e. latest by Tuesday, 25 August 2020 at 10.00 a.m.:• By electronic means via online The proxy appointment must be made via Boardroom Smart Investor portal at https://boardroomlimited.my • By electronic means via email The form of proxy must be received via email at Boardroom’s email address at BSR.Helpdesk@boardroomlimited.com • By electronic means via facsimile The form of proxy must be received via facsimile at Boardroom’s fax number 03-7890 4670 • In hardcopy form The form of proxy must be deposited at the office of the Company’s Share Registrar, Boardroom Share Registrars Sdn Bhd, 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia (C) Explanatory Notes to the Agenda (1) The Audited Financial Statements are laid out in accordance with Section 340 (1)(a) of the Companies Act, 2016 for discussion only. They do not require shareholders’ approval and hence, item 1 of the Agenda will not be put forward for voting. (2) Ordinary Resolution 2 – Directors’ Benefits (exclude Directors’ Fees) The Company is seeking shareholders’ approval for the payment of benefits to the Board of Directors of the Company (the Board), all of whom are Non-Executive Directors, up to an aggregate amount of RM2,500,000 for the period from 1 August 2020 until the next AGM of the Company. The estimated amount payable to the Directors for the benefits is based on the Board composition of nine members. (3) Ordinary Resolutions 3 to 6 – Re-Election of Directors Profiles of the Directors seeking for re-election are disclosed on pages 113, 115, 116 and 117 of the 2020 Integrated Report. (4) Ordinary Resolution 8 – Proposed Renewal of Authority to Allot and Issue New Ordinary Shares in the Company for the Purpose of the Company’s Dividend Reinvestment Plan Ordinary Resolution 8, if passed, will empower the Directors of the Company to issue new ordinary shares pursuant to the terms and conditions of the Company’s Dividend Reinvestment Plan (DRP) which are contained in the DRP Statement set out in Appendix I to the Circular to Shareholders dated 11 August 2010 (as may be amended in accordance with the provisions of the said DRP). The authority conferred by such renewed mandate will be effective from the date of the forthcoming AGM and unless revoked or varied at a general meeting, will lapse at the conclusion of the next AGM of the Company. The Directors of the Company did not allot, or issue ordinary shares pursuant to the authority given by the shareholders at the last AGM. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  212. 210 Notice of Twenty-Ninth Annual General Meeting (5) Ordinary Resolution 9 – Proposed Authority to Allot and Issue New Ordinary Shares Pursuant to Sections 75 and 76 of the Companies Act, 2016 Ordinary Resolution 9, if passed, will give the Directors of the Company, from the date of the forthcoming AGM, authority to allot and issue new ordinary shares in the Company up to an aggregate amount not exceeding ten percent (10%) of the total number of issued shares of the Company for the time being, as and when the need or business opportunities arise which the Directors consider would be in the interest of the Company and/or in connection with proposals previously approved by the shareholders for issuance of shares. This authority, unless revoked or varied at a general meeting, will lapse at the conclusion of the next AGM of the Company. (6) Ordinary Resolution 10 – Proposed Renewal of Authority for the Purchase by the Company of its own Ordinary Shares Ordinary Resolution 10, if passed, will give the Directors of the Company, from the date of the forthcoming AGM, authority to purchase the ordinary shares of the Company up to an aggregate amount not exceeding three percent (3%) of the total number of issued shares of the Company for the time being, as and when the need arise which the Directors consider would be in the interest of the Company. This authority, unless revoked or varied at a general meeting, will lapse at the conclusion of the next AGM of the Company. (7) Ordinary Resolution 11 – Proposed Shareholder Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature with Amcorp Group Berhad Group The proposed Ordinary Resolution 11, if passed, will enable the Company and/or its subsidiaries (the Group) to enter into recurrent related party transactions, which are in the ordinary course of business and necessary for the Group’s day-to-day operation, subject to the transactions being on terms not more favourable to a related party than those generally available to and/or from the public and are not detrimental to the interests of minority shareholders. The Proposed Shareholder Mandate is intended to enhance the Group’s ability to pursue business opportunities, especially those which are time-sensitive in nature, and will eliminate the need for the Company to convene a separate general meeting on each occasion to seek shareholders’ prior approval for such recurrent related party transactions. This would reduce substantial administrative time and expenses associated with the convening of such meetings without compromising the corporate objectives of the Group or affecting the business opportunities available to the Group. The Proposed Shareholder Mandate unless revoked or varied at a general meeting, will lapse at the conclusion of the next AGM of the Company. Further information on the Recurrent Related Party Transactions are set out in the Circular to Shareholders of the Company dated 28 July 2020 which is available on the Company’s corporate website at ambankgroup.com/ir. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  213. 211 Statement Accompanying Notice of Annual General Meeting (Pursuant to Paragraph 8.27(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad) 1. Details of persons who are standing for election as Directors (excluding Directors standing for re-election) No individual is seeking election as a Director at the 29th AGM. 2. A statement relating to general mandate for issue of securities in accordance with Paragraph 6.03(3) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The proposed Ordinary Resolution 9 for the general mandate for issue of securities is a renewal mandate. As at the date of this Notice, no new share was issued pursuant to the said mandate granted to the Directors at the last AGM held on 31 July 2019. PERSONAL DATA PRIVACY: By submitting an instrument appointing a proxy(ies) and/or representative(s) to participate and vote at the AGM and/or any adjournment thereof, a member of the Company (i) consents to the collection, use and disclosure of the member’s personal data by the Company (or its agents) for the purpose of the processing and administration by the Company (or its agents) of proxies and representatives appointed for the AGM (including any adjournment thereof), and the preparation and compilation of the attendance lists, minutes and other documents relating to the AGM (including any adjournment thereof), and in order for the Company (or its agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where the member discloses the personal data of the member’s proxy(ies) and/or representative(s) to the Company (or its agents), the member has obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Company (or its agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the member will indemnify the Company in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the member’s breach of warranty. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  214. 212 Administrative Guide TWENTY-NINTH (29TH) ANNUAL GENERAL MEETING (AGM) Day/Date : Thursday, 27 August 2020 Registration : Virtual Meeting via Remote Participation and Electronic Voting (RPV) Time : 10.00 a.m. Broadcast Venue : Board Room, 26th Floor, Bangunan AmBank Group, Jalan Raja Chulan, 50200 Kuala Lumpur VIRTUAL MEETING In light of the COVID-19 pandemic, the safety of the Company’s employees, members, directors and relevant stakeholders is our primary concern. As such, AMMB will conduct the 29th AGM in full virtual manner where members are only allowed to participate remotely via live streaming and online voting using RPV facilities, based on Guidance Note from the Securities Commission dated 18 April 2020. Members/Proxies will not be allowed to be present at the Broadcast Venue for the 29th AGM. (c) Participants will be able to view a live stream AGM, pose questions and submit votes in real time while the meeting is in progress. (d) 4. Members/Proxies can participate in the Company’s full virtual AGM by registering online with Boardroom Smart Investor portal at https://boardroomlimited.my. 1. Appointment of Proxy (a) Entitlement to Participate and Vote The proxy appointment must be made via Boardroom Smart Investor portal at https://boardroomlimited.my • By electronic means via email The form of proxy must be received via email at Boardroom’s email address at BSR.Helpdesk@boardroomlimited.com 2.Gifts/Vouchers There will be no gift or voucher to be distributed to member(s)/proxy(ies) who participate at the AGM. • By electronic means via facsimile The form of proxy must be received via facsimile at Boardroom’s fax no. 03-7890 4670 Remote Participation and Voting (RPV) (a) (b) All members including individual members, corporate shareholder, authorised nominee and exempt authorised nominee who wish to participate and vote at the 29th AGM may do so using the RPV facilities to be provided by the Company’s Share Registrar, Boardroom Share Registrars Sdn Bhd (Boardroom). To participate and vote remotely, members are required to register via Boardroom Smart Investor portal at https://boardroomlimited.my prior to the meeting. For more details, please refer to the Procedures for RPV as set out in Appendix 1. Registration for remote access will be available on Boardroom Smart Investor portal from 10.00 a.m. on Tuesday, 28 July 2020 up to 10.00 a.m. on Tuesday, 25 August 2020. AMMB HOLDINGS BERHAD The appointment of a proxy may be made in the following manner: • By electronic means via online Only a member whose name appears in the Record of Depositors (ROD) as at 19 August 2020 shall be eligible to participate and vote at the AGM or appoint proxy(ies) to participate and vote on his/her behalf. 3. FOR THE BEST LIVE STREAMING EXPERIENCE, IT IS ADVISABLE TO USE A STABLE LANDLINE AND TO KEEP YOUR VIDEO RESOLUTION AT 240P. 01 Overview of AmBank Group 02 Key Messages • In hardcopy form The form of proxy must be deposited at the office of the Company’s Share Registrar, Boardroom Share Registrars Sdn Bhd at 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia (b) All proxy forms must be deposited with the Company’s Share Registrar, Boardroom not less than 48 hours before the time appointed for holding of the 29th AGM, i.e. latest by Tuesday, 25 August 2020 at 10.00 a.m. (c) Members who wish to appoint proxy(ies) via Boardroom Smart Investor portal, please refer to the steps set out in Appendix 2. 03 Key Highlights 04 Management Discussion and Analysis
  215. 213 Administrative Guide 5 . Voting Procedures 7. (a) The voting will be conducted by way of poll in accordance with Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad. The Company has appointed Boardroom as the Poll Administrator to conduct the poll by way of electronic polling (e-voting) and Coopers Professional Scrutineers Sdn Bhd as the Scrutineer to verify and validate the poll results. (b) Members/proxies/corporate representatives/attorneys may proceed to vote on the resolutions from the commencement of the 29th AGM at 10.00 a.m. on Thursday, 27 August 2020 until the end of the voting session which will be announced by the Chairman of the meeting. Please refer to the Procedures for RPV as set out in Appendix 1 for guidance on how to vote remotely via Boardroom Smart Investor portal at https://boardroomlimited.my. (c) Upon closure of the voting session, the Scrutineer will verify the poll results. Thereafter, the Chairman will announce and declare whether the resolutions are successfully carried or not. (d) If you wish to participate in the meeting yourself, please do not submit any proxy form. You will not be allowed to participate in the meeting together with a proxy appointed by you. (e) 6. If you have submitted your proxy form prior to the meeting and subsequently decide to participate in the meeting yourself, please write in to BSR.Helpdesk@boardroomlimited.com to revoke the appointment of your proxy(ies) at least 48 hours before the time fixed for holding of the AGM. On revocation, your proxy(ies) will not be allowed to participate in the meeting. In such event, you should advise your proxy(ies) accordingly. Submission of Questions (a) Participants may submit questions via the query box facility on Lumi platform at https://web.lumiagm.com/ one hour (1 hour) before and during the meeting. Recording or Photography Strictly no recording or photography of the proceedings of the 29th AGM. 8. 2020 Integrated Report and Circular to Shareholders (a) The 2020 Integrated Report and Circular to Shareholders are available on the Company’s corporate website and can be downloaded from our designated website link: www.ambankgroup.com/arfy20 (b) The 2020 Integrated Report and Circular to Shareholders are also available on the website of Bursa Malaysia Securities Berhad at bursamalaysia.com under Company Announcements of AMMB Holdings Berhad. (c) You may also request for a printed copy of the 2020 Integrated Report from the Company Secretary by submitting your request to ir@ambankgroup.com or from our Share Registrar as per the contact details set out below. 9.Enquiry If you have any enquiries prior to the AGM, please contact the following persons during office hours, i.e. from 9.00 a.m. to 5.45 p.m. (Mondays – Fridays): Boardroom Share Registrars Sdn Bhd Person-in-Charge: Ms Alice Tey Encik Azman Mohd Ali General : 03-7890 4700 Fax : 03-7890 4670 Email :BSR.Helpdesk@boardroomlimited.com • For members/proxies’ enquiries • For assistance relating to the electronic lodgement of proxy form of AGM as well as RPV (b) Participants may also submit their questions before the AGM to ir@ambankgroup.com no later than 10.00 a.m. on Tuesday, 25 August 2020. The Board/Management will endeavour to respond to your question(s) during the virtual AGM session. Should there be time constraint, the responses will be emailed to you at earliest possible after the AGM. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  216. 214 Administrative Guide Appendix 1 PROCEDURES FOR REMOTE PARTICIPATION AND VOTING (RPV) Kindly follow the steps below on how to request for a login ID and password in order to participate in the 29th AGM remotely: BEFORE THE AGM DAY Procedure Actions Step 1: [Note: If you have already signed up with Boardroom Smart Investor portal, you are not required to register again. You may proceed to Step 2 – Submit Request for Remote Participation User ID and Password.] Register online with Boardroom Smart Investor portal (for first time registration only) (i) Access Boardroom’s website at https://boardroomlimited.my (ii) Click <<Login>> and click <<Register>> to sign up as a user. Registration is free. (iii) Complete registration and upload a softcopy of your MyKad (front and back) or Passport. (iv) Please enter a valid email address and wait for Boardroom’s email verification. (v) Step 2: Submit Request for Remote Participation User ID and Password Your registration will be verified and approved within one business day and an email notification will be provided. [Note: Registration for remote access will be open on Tuesday, 28 July 2020. Please note that the closing time to submit your request is not less than 48 hours before the time set for holding the AGM or no later than 10.00 a.m. on 25 August 2020.] Individual Member (i) Login to https://boardroomlimited.my using your User ID and password. (ii) Select “Hybrid/Virtual Meeting” from main menu and select the correct Corporate Event i.e. “AMMB 29th AGM”. (iii) Enter your CDS Account Number. (iv) Read and agree to the Terms & Condition and thereafter submit your request. Corporate Shareholder (i) Write in to BSR.Helpdesk@boardroomlimited.com by providing the name of Member, CDS Account Number accompanied with the Certificate of Appointment of Corporate Representative or Proxy Form to submit the request. (ii) Please provide a copy of Corporate Representative’s MyKad (front and back) or Passport as well as his/her email address. Authorised Nominee and Exempt Authorised Nominee (i) Write in to BSR.Helpdesk@boardroomlimited.com by providing the name of Member, CDS Account Number accompanied with the Proxy Form to submit the request. (ii) Please provide a copy of proxy holder’s MyKad (front and back) or Passport as well as his/her email address. Step 3: (i) You will receive a notification from Boardroom that your request has been received and is being verified. Email Notification (ii) Upon system verification against the AGM Record of Depositors as at 19 August 2020, you will receive an email from Boardroom either approving or rejecting your registration for remote participation. (iii) If your registration is approved, you will also receive your remote access user ID and password in the same email from Boardroom. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  217. 215 Administrative Guide Appendix 1 ON THE DAY OF AGM Procedure Actions Step 1 : (i) The Virtual Meeting portal will be open for login at 9.00 a.m. on Thursday, 27 August 2020. Login to Virtual Meeting Platform (ii) The Meeting Platform can be accessed via one of the following: •Free Lumi AGM application which you can download from Apple App Store or Google Play Store; •Launch Lumi AGM by scanning the QR code provided in the email notification received after successful registration; or • Access to Lumi AGM web portal via website url https://web.lumiagm.com/. (iii) Enter the Meeting ID No. and sign in with the user ID and password provided in the confirmation email from Boardroom. Step 2: [Note: Question(s) submitted online will be compiled before being sent to the Chairman to avoid repetition.] Participate (i) If you would like to view live streaming of the AGM, select the broadcast icon. (ii) If you would like to pose a question during the AGM, select the messaging icon. (iii) Type your message within the chat box, click <<Send>> once completed. Step 3: (i) Once the meeting is open for voting, the polling icon will appear with the resolutions and your voting choices. Voting (ii) To vote, simply select your voting direction from the options provided. (iii) A confirmation message will appear to show your vote has been received. (iv) To change your vote, simply select another voting direction. Step 4: End of Participation 05Leadership (v) If you wish to cancel your vote, please click <<Cancel>>. (i) Upon the announcement by the Chairman on the closure of the AGM, the live streaming will end and the messaging window will be disabled. (ii) You can now logout from the Meeting Platform. 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  218. 216 Administrative Guide Appendix 2 PROCEDURES FOR ELECTRONIC LODGEMENT OF PROXY FORM To appoint proxy (ies) via online, please follow the steps below: Procedure Actions Step 1: [Note: If you have already signed up with Boardroom Smart Investor portal, you are not required to register again. You may proceed to Step 2 below for eProxy Lodgement.] Register online with Boardroom Smart Investor portal (for first time registration only) (i) Access Boardroom’s website at https://boardroomlimited.my (ii) Click <<Login>> and click <<Register>> to sign up as a user. Registration is free. (iii) Complete registration and upload a softcopy of your MyKad (front and back) or your Passport. (iv) Please enter a valid email address and wait for Boardroom’s email verification. (v) Your registration will be verified and approved within one business day and an email notification will be provided. Step 2: (i) Access Boardroom’s website at https://boardroomlimited.my eProxy Lodgement (ii) Login with your user ID (i.e. email address) and password. (iii) Go to “E-PROXY LODGEMENT” and browse the Meeting List for “AMMB 29th AGM” and click <<Apply>>. (iv) Read the Terms & Conditions and confirm the Declaration. (v) Enter the CDS account number and indicate the number of securities for your proxy(ies) to vote on your behalf. (vi) Appoint your proxy(ies) or the Chairman of the Meeting and enter the required particulars for your proxy(ies). (vii) Indicate your voting instructions – “FOR” or “AGAINST” or “ABSTAIN”. If you wish to have your proxy(ies) to act upon his/her discretion, please indicate “DISCRETIONARY”. (viii) Review and confirm your proxy(ies) appointment. (ix) Click <<Submit>>. (x) AMMB HOLDINGS BERHAD Click <<Download>> or <<Print>> the eProxy form acknowledgement for your record. 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  219. 217 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name Branch Address General & Fax Line 1. 091 RETAIL A CENTRAL CR01 AMCORP MALL AmBank (M) Berhad G-01, Block A, Menara PJ No. 18, Jalan Persiaran Barat 46050 Petaling Jaya Selangor GL : 03-7954 03-7954 03-7958 Fax : 03-7955 1327 4401 8727 2575 Mon - Thu: 9.00 a.m. to 4:30 p.m. Fri: 9.00 a.m. to 4:00 p.m. 2. 254 RETAIL B CENTRAL CR01 BANDAR SUNWAY AmBank (M) Berhad No. 12, Jalan PJS 11/28 Bandar Sunway 46150 Petaling Jaya Selangor GL : 03-5622 2451 03-5622 2452 Fax : 03-5622 2488 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 3. 066 PRIORITY CENTRAL CR01 JALAN YAP KWAN SENG AmBank (M) Berhad Ground Floor, Menara AmBank No. 8, Jalan Yap Kwan Seng 50450 Kuala Lumpur GL : 03-2167 DL : 03-2167 03-2167 Fax : 03-2162 6202 6229 3657 1606 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 4. 244 RETAIL A CENTRAL CR01 KOTA DAMANSARA AmBank (M) Berhad No. 23 & 25, Blok T Jalan PJU 5/3 Dataran Sunway Kota Damansara 47810 Petaling Jaya Selangor GL : 03-6141 03-6141 03-6141 03-6141 Fax : 03-6141 03-6141 7470 7471 7472 7473 7466 7470 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 5. 040 RETAIL A CENTRAL CR01 PETALING JAYANEW TOWN AmBank (M) Berhad No. 6, Road 52/4 New Town Centre 46200 Petaling Jaya Selangor GL : 03-7956 03-7956 03-7956 Fax : 03-7959 9077 9103 3748 3146 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 6. 217 PRIORITY CENTRAL CR01 PETALING JAYA-SS2 AmBank (M) Berhad No. 30, 32 & 34 Jalan SS2/61 47300 Petaling Jaya Selangor GL : 03-7872 03-7872 03-7874 03-7874 03-7874 Fax : 03-7874 9143 9206 0042 2350 0477 2517 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 7. 138 RETAIL A CENTRAL CR01 SUBANG JAYA AmBank (M) Berhad Lot No. A6 & A7 Jalan SS15/4D 47500 Subang Jaya Selangor GL : 03-5635 0090 03-5636 0093 Fax : 03-5634 5088 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 8. 139 RETAIL A CENTRAL CR01 SUBANG NEW VILLAGE AmBank (M) Berhad No. 8A, Ground Floor Lebuh Raya B Subang New Village 40150 Shah Alam Selangor GL : 03-7846 03-7846 03-7846 Fax : 03-7846 7053 7052 7371 7364 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 9. 078 PRIORITY CENTRAL CR01 USJ AmBank (M) Berhad No. 24, Jalan USJ 10/1 USJ Taipan Triangle, UEP 47620 Subang Jaya Selangor GL : 03-5631 0878 03-5637 4059 Fax : 03-5637 2899 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 10. 252 RETAIL B CENTRAL CR01 USJ SENTRAL No. 5 & 7 Jalan USJ Sentral 2, USJ Sentral 47620 Subang Jaya Selangor GL : 03-8025 9477 Fax : 03-8025 9378 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 05Leadership 06 Sustainability Report 07 Additional Information Banking Hours INTEGRATED REPORT 2020
  220. 218 Group Corporate Directory No . Branch Code New Branch Category Region Region Code 11. 072 PRIORITY CENTRAL CR02 BANGSAR BARU 12. 239 RETAIL A CENTRAL CR02 BERJAYA TIMES SQUARE 13. 081 PRIORITY CENTRAL CR02 DAMANSARA UTAMA 14. 259 RETAIL B CENTRAL CR02 DESA SRI HARTAMAS 15. 128 RETAIL A CENTRAL CR02 16. 023 PRIORITY CENTRAL 17. 126 RETAIL B 18. 055 19. 20. Branch Address General & Fax Line Banking Hours AmBank (M) Berhad No. 45 & 47, Jalan Telawi Tiga Bangsar Baru 59100 Kuala Lumpur GL : 03-2280 0261 Fax : 03-2282 8741 Mon - Thu: 9.00 a.m. to 4:30 p.m. Fri: 9.00 a.m. to 4:00 p.m. AmBank (M) Berhad No. G 52, Ground Floor Berjaya Times Square 1, Jalan Imbi 55100 Kuala Lumpur GL : 03-2141 8003 Fax : 03-2141 2413 Mon - Thu: 10.00 a.m. to 4:30 p.m. AmBank (M) Berhad No. 56, 58, 60G Jalan SS 21/35 Damansara Utama 47400 Petaling Jaya Selangor GL : 03-7710 03-7710 Fax : 03-7726 03-7726 0552 0566 3658 3650 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AmBank (M) Berhad No. 2 & 4, Ground Floor Jalan 23/70A Desa Sri Hartamas 50480 Kuala Lumpur GL : 03-6201 0054 Fax : 03-6201 0524 Mon - Thu: 9.00 a.m. to 4:30 p.m. Fri: 9.00 a.m. to 4:00 p.m. KELANA JAYA (PARKVIEW) AmBank (M) Berhad Unit E102 & 103 Ground Floor Kelana Park View No. 1, Jalan SS 6/2 Kelana Jaya 47301 Petaling Jaya Selangor GL : 03-7804 3508 03-7880 8645 Fax : 03-7803 4781 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. CR02 MEDAN PASAR AmBank (M) Berhad Ground Floor Wisma Maran No. 28, Medan Pasar 50050 Kuala Lumpur GL : 03-2020 1794 Fax : 03-2072 9148 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. CENTRAL CR02 NU SENTRAL AmBank (M) Berhad LG 18A, NU Sentral Shopping Centre No. 201, Jalan Tun Sambanthan, Brickfields 50470 Kuala Lumpur GL : 03-2272 1964 Fax : 03-2272 1970 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL A CENTRAL CR02 PUDU-JALAN PASAR AmBank (M) Berhad No. 48, Jalan Pasar Off Jalan Pudu 55100 Kuala Lumpur GL : 03-2141 03-2141 03-2141 Fax : 03-2144 3635 3617 3634 0313 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 242 RETAIL A CENTRAL CR02 SOLARIS MONT KIARA AmBank (M) Berhad Ground Floor, No. 7 & 9 Jalan Solaris 1 Solaris Mont’ Kiara 50480 Kuala Lumpur GL : 03-6203 03-6203 03-6203 Fax : 03-6203 7920 7921 7922 7930 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 258 RETAIL A CENTRAL CR02 TAMAN TUN DR ISMAIL AmBank (M) Berhad Ground Floor, No. 6-1-G Jalan Tun Mohd Fuad 3 Tamn Tun Dr Ismail 60000 Kuala Lumpur GL : 03-7940 0998 03-7940 0995 Fax : 03-7940 0988 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AMMB HOLDINGS BERHAD Branch Name 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  221. 219 Group Corporate Directory No . Branch Code New Branch Category Region Region Code 21. 248 RETAIL A CENTRAL 22. 236 PRIORITY 23. 041 24. Branch Name Branch Address General & Fax Line CR03 BANDAR BUKIT TINGGI AmBank (M) Berhad No. 37 & 39 Lorong Batu Nilam 1A Bandar Bukit Tinggi 41200 Klang Selangor GL : 03-3324 03-3324 03-3324 Fax : 03-3324 6275 6325 5695 4043 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. CENTRAL CR03 BANDAR PUTERI PUCHONG AmBank (M) Berhad Ground Floor, No. 4 & 6 Jalan Puteri 1/1 Bandar Puteri 47100 Puchong Selangor GL : 03-8060 03-8060 03-8060 03-8060 03-8060 Fax : 03-8060 5944 6964 6341 6145 5876 6532 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL A CENTRAL CR03 BANTING AmBank (M) Berhad No. 139 & 141 Wisma Mutiara Jalan Sultan Abdul Samad 42700 Banting Selangor GL : 03-3187 03-3187 03-3187 Fax : 03-3187 7462 1330 1919 4770 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 240 RETAIL A CENTRAL CR03 KLANG – BANDAR PUTERI AmBank (M) Berhad No. 1, Ground Floor Lorong Sanggul 1F Bandar Puteri 41200 Klang Selangor GL : 03-5161 03-5161 03-5161 03-5161 03-5161 03-5161 Fax : 03-5161 2653 3324 2853 2969 2976 3104 3364 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 25. 016 PRIORITY CENTRAL CR03 KLANG PSI AmBank (M) Berhad No. 42-44, Wisma Sh Ng Persiaran Sultan Ibrahim 41300 Klang Selangor GL : 03-3341 03-3342 03-3343 Fax : 03-3344 3252 6010 7949 3744 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 26. 261 RETAIL A CENTRAL CR03 KOTA KEMUNING AmBank (M) Berhad No. 1-1, Jalan Anggerik Vanilla BE31/BE Kota Kemuning Seksyen 31 40460 Shah Alam Selangor Tel : 03-5120 1186 Fax : 03-5120 1185 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 27. 096 PRIORITY CENTRAL CR03 PORT KLANG – WISMA PALMBASE AmBank (M) Berhad 2998G, Wisma Palmbase Persiaran Raja Muda Musa 41100 Port Klang Selangor GL : 03-3371 03-3371 03-3371 Fax : 03-3371 7672 7697 7698 8749 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 28. 083 PRIORITY CENTRAL CR03 PUCHONG, TAMAN KINRARA AmBank (M) Berhad Ground Floor, No. 14A & 15A Jalan TK1/11A Taman Kinrara, Seksyen 1 Batu 7 1/2, Jalan Puchong 47100 Puchong Selangor GL : 03-8075 03-8075 03-8075 Fax : 03-8070 4461 4680 2478 3336 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 29. 245 RETAIL A CENTRAL CR03 SETIA ALAM AmBank (M) Berhad No. 15 & 17 Jalan Setia Prima RU13/R Setia Alam, Seksyen U13 40170 Shah Alam Selangor GL : 03-3343 03-3343 03-3343 Fax : 03-3343 7740 7758 7792 7794 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 05Leadership 06 Sustainability Report 07 Additional Information Banking Hours INTEGRATED REPORT 2020
  222. 220 Group Corporate Directory No . Branch Code New Branch Category Region Region Code 30. 074 RETAIL A CENTRAL 31. 017 RETAIL A 32. 075 33. Branch Name Branch Address General & Fax Line Banking Hours CR03 SHAH ALAM SECTION 13 AmBank (M) Berhad Ground Floor Lot 13-1 & Lot 14-1 Laman Seri Business Park Seksyen 13 40100 Shah Alam Selangor ABB : 5286 & 5354 GL : 03-5519 5702 03-5519 5691 03-5519 5645 Fax : 03-5510 9654 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. CENTRAL CR03 SHAH ALAM SEC 15B AmBank (M) Berhad No. 47 & 49, Jalan Utas B/15B Section 15 40000 Shah Alam Selangor GL : 03-5510 03-5510 03-5510 Fax : 03-5510 03-5511 6991 6995 6960 6968 5725 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL A CENTRAL CR05 AMPANG POINT AmBank (M) Berhad Lot 1A, Jalan Mamanda 7 Ampang Point, 4 1/2 Miles 68000 Ampang Selangor GL : 03-4252 03-4252 03-4252 03-4252 Fax : 03-4252 2630 2636 2634 2637 4160 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 087 RETAIL A CENTRAL CR05 BALAKONG AmBank (M) Berhad No. S-13, Taman Indah Batu 11, Cheras 43200 Balakong Selangor GL : 03-9074 03-9074 03-9074 Fax : 03-9074 4013 4078 4120 4148 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 34. 250 RETAIL A CENTRAL CR05 BANDAR MAHKOTA CHERAS AmBank (M) Berhad No. 36 & 38 Jalan Temenggung 1/9 Bandar Mahkota Cheras 43200 Cheras Selangor GL : 03-9010 03-9010 03-9010 Fax : 03-9010 5901 5902 5897 5896 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 35. 133 RETAIL A CENTRAL CR05 BANDAR SRI PERMAISURI AmBank (M) Berhad 79 & 81, Dataran Dwi Tasik Jalan Dwi Tasik 1 Bandar Sri Permaisuri 56000 Kuala Lumpur GL : 03-9172 4958 03-9172 6414 Fax : 03-9172 4934 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 36. 247 RETAIL A CENTRAL CR05 JALAN KLANG LAMA AmBank (M) Berhad No. 14332 & 14333 Batu 4, Jalan Klang Lama 58100 Kuala Lumpur GL : 03-7980 8069 03-7980 8079 Fax : 03-7980 7908 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 37. 211 PRIORITY CENTRAL CR05 JALAN RAJA CHULAN AmBank (M) Berhad Ground Floor Bangunan AmBank Group 55 Jalan Raja Chulan 50200 Kuala Lumpur GL : 03-2072 03-2026 03-2078 Fax : 03-2032 03-2032 6901 1750 1970 3935 4069 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 38. 077 PRIORITY CENTRAL CR05 OUG AmBank (M) Berhad No. 24 & 26 Jalan Hujan Rahmat 2 Overseas Union Garden 58200 Kuala Lumpur GL : 03-7784 03-7784 03-7784 Fax : 03-7784 7035 7036 7038 7041 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 39. 137 RETAIL A CENTRAL CR05 SERI KEMBANGAN AmBank (M) Berhad No. 7 & 9, Jalan Perusahaan 2 Off Jalan Kolej Taman Jinma 43300 Seri Kembangan Selangor GL :03-89422093 03-89424308 Fax : 03-8942 5373 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  223. 221 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name Branch Address General & Fax Line 40. 233 PRIORITY CENTRAL CR05 SRI PETALING AmBank (M) Berhad No. 18 & 20 Jalan Raden Tengah Sri Petaling 57000 Kuala Lumpur GL : 03-9059 03-9053 03-9059 03-9059 Fax : 03-9056 4152 4168 4462 5458 2512 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 41. 092 PRIORITY CENTRAL CR05 TAMAN CONNAUGHT AmBank (M) Berhad No. 110 & 112, Jalan Cerdas Taman Connaught, Cheras 56000 Kuala Lumpur GL : 03-9101 4855 Fax : 03-9101 4977 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 42. 142 RETAIL A CENTRAL CR05 TAMAN MALURI AmBank (M) Berhad No. 1, Jalan Jejaka 2 Taman Maluri Off Jalan Cheras 56100 Kuala Lumpur GL : 03-9285 03-9282 03-9284 Fax : 03-9282 2579 2917 5428 6261 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 43. 132 RETAIL A CENTRAL CR06 BANDAR BARU RAWANG AmBank (M) Berhad No. 13 & 14 Jalan Ipoh Batu 18 Bandar Baru Rawang 48000 Rawang Selangor ABB :5405 GL : 03-6091 03-6091 03-6091 Fax : 03-6091 6835 6837 6832 8612 AmBank (M) Berhad No. 388 & 389, Jalan 1A/1 Bandar Baru Sungai Buloh 40160 Sungai Buloh Selangor GL : 03-6156 03-6157 03-6157 Fax : 03-6156 6500 1801 7500 6000 AmBank (M) Berhad No. 2 & 2A, Wisma Manjalara Jalan 7A/62A Bandar Manjalara 52200 Kuala Lumpur GL : 03-6274 1315 03-6274 1353 03-6274 1385 DL : 03-6274 0916 (Branch Manager) Fax : 03-6274 1232 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. Banking Hours Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 44. 141 RETAIL A CENTRAL CR06 BANDAR BARU SG BULOH 45. 249 RETAIL A CENTRAL CR06 BANDAR MANJALARA 46. 124 RETAIL A CENTRAL CR06 BESTARI JAYA AmBank (M) Berhad No. 28B, Jalan Besar 45600 Batang Berjuntai Selangor GL : 03-3271 03-3271 03-3271 03-3271 Fax : 03-3271 0988 0380 0379 0378 0376 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 47. 125 PRIORITY CENTRAL CR06 JALAN IPOH BATU 3 (RIVERCITY) AmBank (M) Berhad 468-11A, Ground Floor Block C, Rivercity 3rd Mile, Jalan Ipoh 51200 Kuala Lumpur GL : 03-4042 03-4042 03-4043 Fax : 03-4042 3577 7192 7489 0237 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 48. 014 PRIORITY CENTRAL CR06 KEPONG BARU AmBank (M) Berhad No. 21, Jalan Ambong 2 Kepong Baru 52100 Kuala Lumpur GL : 03-6251 3322 03-6251 3355 Fax : 03-6258 4146 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 49. 088 RETAIL A CENTRAL CR06 RAWANG COUNTRY HOMES AmBank (M) Berhad No. 51, 53 & 55 Jalan Pusat BCH 1A Bandar Country Homes 48000 Rawang Selangor GL : 03-6092 03-6092 03-6092 Fax : 03-6092 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 05Leadership 06 Sustainability Report 07 Additional Information 5732 5731 5730 5735 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. INTEGRATED REPORT 2020
  224. 222 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 50. 224 RETAIL A CENTRAL CR06 SELAYANG 51. 076 RETAIL A CENTRAL CR06 SETAPAK 52. 255 SATELITE CENTRAL CR06 UIA-GOMBAK (ISLAMIC) 53. 212 RETAIL B CENTRAL CR06 54. 057 RETAIL B EAST COAST 55. 157 RETAIL B 56. 206 57. 58. Branch Address General & Fax Line Banking Hours AmBank (M) Berhad No. 159 & 161 Jalan 2/3A, Off Km12 Jalan Ipoh Pusat Bandar Utara 68100 Batu Caves Selangor GL : 03-6136 8560 03-6136 8561 Fax : 03-6136 8559 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AmBank (M) Berhad No. 16, Jalan 3/50C Taman Setapak Indah Jaya Off Jalan Genting Kelang 53300 Kuala Lumpur GL : 03-4023 6381 03-4023 6410 Fax : 03-4023 6551 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AmBank (M) Berhad Azman Hashim Complex International Islamic University Malaysia Jalan Gombak 53100 Kuala Lumpur GL : 03-6185 03-6185 03-6185 DL : 03-6185 Fax : 03-6185 WANGSA MAJU AmBank (M) Berhad No. 54 & 56, Jalan 1/27F Pusat Bandar Wangsa Maju 53300 Kuala Lumpur GL : 03-4149 5191 03-4149 5209 Fax : 03-4149 5242 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. ECR BENTONG AmBank (M) Berhad No. 105, Jalan Loke Yew 28700 Bentong Pahang GL : 09-222 09-222 09-222 Fax : 09-222 3888 6850 1629 4622 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. EAST COAST ECR JERANTUT AmBank (M) Berhad Lot K-1, Jalan Dewangsa Jerantut New Town 27000 Jerantut Pahang GL : 09-266 09-266 09-266 Fax : 09-266 3005 5005 6211 5046 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL B EAST COAST ECR KEMAMAN AmBank (M) Berhad No. 12487 & 12488 Jalan Kubang Kurus 24000 Kemaman Terengganu GL : 09-858 2994 (BM D/L) 09-859 5486 09-859 3535 09-859 2533 09-859 2534 Fax : 09-859 4433 (OPS) 09-859 5410 (HP) Sun - Wed: 9.00 a.m. to 4.30 p.m. Thu: 9.00 a.m. to 4.00 p.m. 008 RETAIL A EAST COAST ECR KOTA BHARU AmBank (M) Berhad Ground & First Floor Lot 343, Section 13 Jalan Sultan Ibrahim 15000 Kota Bharu, Kelantan GL : 09-741 9499 09-741 9477 Fax : 09-741 9507 Sun - Wed: 9.00 a.m. to 4.30 p.m. Thu: 9.00 a.m. to 4.00 p.m. 022 RETAIL A EAST COAST ECR KUALA TERENGGANU AmBank (M) Berhad No. 69/2 Ground & Mezz Floor Bangunan UMNO Terengganu Jalan Sultan Ismail 20200 Kuala Terengganu, Terengganu GL : 09-624 09-624 09-624 09-624 Fax : 09-624 Sun - Wed: 9.00 a.m. to 4.30 p.m. Thu: 9.00 a.m. to 4.00 p.m. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 6577 6579 6581 6570 6584 9957 9958 9959 9960 9916 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. *Business closed from 1.00pm to 2.00pm for Friday Prayers* 04 Management Discussion and Analysis
  225. 223 Group Corporate Directory No . Branch Code New Branch Category 59. 052 RETAIL A EAST COAST ECR 60. 005 RETAIL A EAST COAST 61. 101 RETAIL A 62. 163 63. Region Code Branch Address General & Fax Line KUANTAN-JALAN BESERAH AmBank (M) Berhad A-3786, Jalan Beserah 25300 Kuantan Pahang GL : 09-560 09-560 09-567 Fax : 09-566 09-567 1818 1830 8368 5776 0695 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. ECR KUANTAN-JALAN HAJI ABD AZIZ AmBank (M) Berhad No. 93 Jalan Haji Abdul Aziz 25000 Kuantan Pahang GL : 09-516 09-516 09-516 09-516 Fax : 09-555 09-516 09-515 4776 4389 2607 9507 3782 3782 6392 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. EAST COAST ECR MENTAKAB AmBank (M) Berhad No. 28, Jalan Zabidin 28400 Mentakab Pahang GL : 09-277 09-277 09-277 Fax : 09-277 2260 1196 7962 5427 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL B EAST COAST ECR PASIR MAS AmBank (M) Berhad Lot 151, Jalan Masjid Lama 17000 Pasir Mas Kelantan GL : 09-790 09-790 09-790 Fax : 09-790 1952 0702 0701 0703 Sun - Wed: 9.00 a.m. to 4.30 p.m. Thu: 9.00 a.m. to 4.00 p.m. 100 RETAIL B EAST COAST ECR RAUB AmBank (M) Berhad No. 5, Bandar Raub Perdana 27600 Raub Pahang GL : 09-356 09-356 09-355 Fax : 09-356 1846 1850 3166 1852 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 64. 159 RETAIL B EAST COAST ECR TRIANG AmBank (M) Berhad No. 21A & 22A Jalan Temerloh 28300 Triang Pahang GL : 09-255 09-255 09-255 Fax : 09-255 3304 3124 3134 3198 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 65. 231 PRIORITY NORTHERN NR01 AYER ITAMJALAN PAYA TERUBONG AmBank (M) Berhad No. 135-J & 135-K Jalan Paya Terubong 11500 Ayer Itam Penang GL : 04-828 04-826 04-827 Fax : 04-829 8566 3015 0154 1414 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 66. 230 RETAIL B NORTHERN NR01 BALIK PULAU AmBank (M) Berhad No. 23 & 25 Jalan Sardon MK.6, 11000 Balik Pulau Penang GL : 04-866 0863 04-866 8633 Fax : 04-866 8430 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 67. 093 RETAIL A NORTHERN NR01 BAYAN BARU AmBank (M) Berhad No. 54, 56 & 58, Jalan Mahsuri, Bandar Bayan Baru 11909 Bayan Baru Penang GL : 04-644 8142 04-644 8149 Fax : 04-644 8163 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 68. 220 RETAIL A NORTHERN NR01 GELUGOR AmBank (M) Berhad 723D & 723E, Ground Floor Vanda Business Park Jalan Sungai Dua 11700 Gelugor Penang DL : 04-658 GL : 04-658 04-657 04-657 Fax :04-657 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 05Leadership Region 06 Sustainability Report Branch Name 07 Additional Information 2650 2652 1284 2148 2004 Banking Hours INTEGRATED REPORT 2020
  226. 224 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 69. 108 RETAIL A NORTHERN NR01 70. 028 PRIORITY NORTHERN 71. 002 PRIORITY 72. 082 73. Branch Address General & Fax Line JELUTONG AmBank (M) Berhad No. 546 & 548 Jalan Jelutong 11600 Jelutong Penang DL : 04-659 GL : 04-659 04-657 04-656 Fax : 04-657 2410 2396 2339 2755 1644 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. NR01 PENANG – LEBOH PANTAI AmBank (M) Berhad No. 15, Leboh Pantai 10300 Penang GL : 04-261 04-263 04-263 Fax : 04-263 5263 2520 2523 1468 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. NORTHERN NR01 PENANG – LIANG COURT AmBank (M) Berhad Ground & Mezzanine Floor Menara Liang Court No. 37, Jalan Sultan Ahmad Shah, 10050 Georgetown Penang DL : 04-228 2491 GL : 04-226 3939 Fax : 04-226 1313 Telex : MA40679 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. PRIORITY NORTHERN NR01 PULAU TIKUS AmBank (M) Berhad No. 368-1-15 & 368-1-17 Belissa Row Ground & Mezzanie Floor Jalan Burmah 10350 Pulau Tikus Penang GL : 04-229 04-229 04-229 Fax : 04-229 8942 8943 8944 8945 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 106 RETAIL B NORTHERN NR01 TANJUNG BUNGAH AmBank (M) Berhad No. 2T & 2U Jalan Lembah Permai 11200 Tanjung Bungah Penang GL : 04-890 04-890 04-890 Fax : 04-890 4502 4628 4658 4690 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 74. 111 RETAIL A NORTHERN NR02 BATU GAJAH AmBank (M) Berhad No. 19, Jalan Kemajuan 31000 Batu Gajah Perak GL : 05-366 1372 05-366 1442 Fax : 05-366 5009 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 75. 102 RETAIL A NORTHERN NR02 BERCHAM AmBank (M) Berhad No. 225, 227 & 229 Jalan Bercham 31400 Ipoh Perak GL : 05-545 9695 05-545 9697 Fax : 05-545 9702 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 76. 003 PRIORITY NORTHERN NR02 IPOH GREENTOWN AmBank (M) Berhad No. 7, Greentown Utama Jalan Dato’ Seri Ahmad Said 30450 Ipoh Perak GL : 05-208 05-208 Fax : 05-208 05-208 5657 5619 5607 5608 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 77. 071 RETAIL A NORTHERN NR02 KAMPAR AmBank (M) Berhad No. 50, Jalan Balai 31900 Kampar Perak GL : 05-466 1067 05-466 5836 Fax : 05-465 1534 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 78. 113 RETAIL B NORTHERN NR02 KUALA KANGSAR AmBank (M) Berhad No. 5 & 6, Jalan Raja Chulan 33000 Kuala Kangsar Perak GL : 05-776 1186 05-777 4273 Fax : 05-776 4008 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights Banking Hours 04 Management Discussion and Analysis
  227. 225 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 79. 115 RETAIL A NORTHERN NR02 MENGLEMBU 80. 116 RETAIL A NORTHERN NR02 81. 117 RETAIL B NORTHERN 82. 121 RETAIL B 83. 222 84. Branch Address General & Fax Line Banking Hours AmBank (M) Berhad No. 5E & 5F, Jalan Tranchell 31450 Menglembu Perak GL : 05-281 0403 05-281 0400 Fax : 05-281 0408 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. PARIT BUNTAR AmBank (M) Berhad No. 2 & 4 Jalan Temenggong Taman Krian Tambahan 6 34200 Parit Buntar Perak GL : 05-716 2366 05-716 1732 Fax : 05-716 4287 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. NR02 SILIBIN AmBank (M) Berhad No. 309 & 401, Jalan Silibin Taman Seri Tahan 30100 Ipoh Perak GL : 05-527 7715 05-527 7716 Fax : 05-527 7719 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. NORTHERN NR02 SUNGAI SIPUT AmBank (M) Berhad No. 181, Jalan Besar Sungai Siput Utara 31100 Sungai Siput Perak GL : 05-597 2357 05-597 2388 Fax : 05-597 2359 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL B NORTHERN NR02 TANAH RATA AmBank (M) Berhad No. 43, Jalan Besar 39000 Tanah Rata Cameron Highlands Pahang GL : 05-491 1088 05-491 1089 Fax : 05-491 1087 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 004 RETAIL A NORTHERN NR03 ALOR SETAR AmBank (M) Berhad No. 1567, Wisma Landag 05000 Alor Setar Kedah GL : 04-733 04-734 04-734 04-733 Fax : 04-731 3833 4389 0659 2212 3901 (OPS) Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 85. 235 RETAIL A NORTHERN NR03 BAGAN AJAM AmBank (M) Berhad Lot 7174, Ground 1st & 2nd Floor Jalan Bagan Ajam 13000 Butterworth Penang DL : 04-331 GL : 04-331 04-331 Fax : 04-331 04-324 9005 9020 9080 9024 (OPS) 2034 (HP) Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 86. 043 PRIORITY NORTHERN NR03 BUKIT MERTAJAM AmBank (M) Berhad No. 1394 Jalan Padang Lallang 14000 Bukit Mertajam Penang DL : 04-530 GL : 04-530 04-530 04-530 04-530 Fax : 04-530 2394 2392 2393 2391 0436 2395 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 87. 098 RETAIL B NORTHERN NR03 JITRA AmBank (M) Berhad No. 56 & 57 Ground & 1st Floor Pekan Jitra 3 06000 Jitra Kedah DL : 04-917 GL : 04-917 04-917 Fax : 04-917 6725 2910 5555 2911 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 88. 213 RETAIL B NORTHERN NR03 KANGAR AmBank (M) Berhad No. 21 & 23, Jalan Bukit Lagi 01000 Kangar Perlis DL : 04-976 GL : 04-976 04-976 04-976 Fax : 04-976 3388 9161 9190 9157 4217 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 05Leadership 06 Sustainability Report 07 Additional Information INTEGRATED REPORT 2020
  228. 226 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 89. 058 RETAIL A NORTHERN NR03 90. 251 RETAIL B NORTHERN 91. 080 RETAIL B 92. 020 93. Branch Address General & Fax Line KULIM AmBank (M) Berhad No. 171 & 172 Jalan Tunku Putera 09000 Kulim Kedah DL : 04-490 GL : 04-491 04-490 04-490 04-490 04-491 Fax : 04-490 04-490 NR03 LAGENDA HEIGHTS AmBank (M) Berhad No. 95, 96 & 97 Jalan Lagenda 1 Lagenda Heights 08000 Sungai Petani Kedah GL : 04-425 3582 04-425 3581 Fax : 04-425 3587 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. NORTHERN NR03 LANGKAWI AmBank (M) Berhad No. 20 & 22, Jalan Pandak Mayah 5, Pusat Bandar Kuah 07000 Langkawi Kedah GL : 04-966 04-966 04-966 Fax : 04-966 3130 3133 3134 3129 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. PRIORITY NORTHERN NR03 SEBERANG JAYA AmBank (M) Berhad No. 52, Jalan Todak 2 Pusat Bandar Bandar Seberang Jaya 13700 Prai Penang GL : 04-397 04-397 04-397 Fax : 04-397 9569 9570 9564 9572 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 120 RETAIL A NORTHERN NR03 SUNGAI BAKAP AmBank (M) Berhad No. 1388 & 1389 Jalan Sungai Bakap Taman Sungai Bakap Permai 14200 Sungai Bakap Penang GL : 04-583 04-583 04-583 04-583 04-583 Fax : 04-583 04-583 8830 8831 8816 8817 8820 8826 8827 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 94. 079 SATELITE NORTHERN NR03 SUNGAI DUA AmBank (M) Berhad No. 1 & 3, Lorong Murni 6 Taman Desa Murni Sungai Dua 13800 Buterworth Penang DL : 04-356 04-356 GL : 04-356 04-356 Fax : 04-356 1326 6494 1328 1353 1159 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 95. 015 RETAIL A NORTHERN NR03 SUNGAI PETANI AmBank (M) Berhad No. 24-H & 24-J Jalan Kampung Baru 08000 Sungai Petani Kedah DL : 04-422 GL : 04-422 04-422 04-422 Fax :04-422 04-421 9095 3611 3277 7980 8191 (OPS) 9831 (HP) Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 96. 030 RETAIL B NORTHERN NR05 AYER TAWAR AmBank (M) Berhad 79, Jalan Besar 32400 Ayer Tawar Perak GL : 05-672 2201 05-672 2126 Fax : 05-672 2205 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 97. 029 RETAIL B NORTHERN NR05 BAGAN SERAI AmBank (M) Berhad No. 244-D & 244E Jalan Besar 34300 Bagan Serai Perak GL : 05-721 5805 05-721 1808 Fax : 05-721 1392 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 0163 3666 3667 3669 6838 3866 0162 (OPS) 6993 (HP) Banking Hours Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 04 Management Discussion and Analysis
  229. 227 Group Corporate Directory No . Branch Code New Branch Category Region Region Code 98. 114 SATELITE NORTHERN NR05 99. 033 RETAIL A NORTHERN 100. 031 SATELITE 101. 184 102. Branch Address General & Fax Line Banking Hours KUALA SEPETANG AmBank (M) Berhad No. 27, Jalan Trump Kuala Sepetang 34650 Taiping Perak GL : 05-858 1993 05-858 1773 Fax : 05-858 1996 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. NR05 LANGKAP AmBank (M) Berhad No. 1 & 2, Lorong 1 Projek Perumahan Awam Langkap 2 Pekan Langkap 36700 Langkap Perak GL : 05-659 7937 05-659 2735 Fax : 05-659 2888 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. NORTHERN NR05 PANGKOR AmBank (M) Berhad No. 5, Main Road 32300 Pangkor Perak GL : 05-685 1051 05-685 2776 Fax : 05-685 2161 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL A NORTHERN NR05 SITIAWAN AmBank (M) Berhad No. 23 & 24 Taman Setia Jalan Raja Omar 32000 Sitiawan Perak GL : 05-691 7645 05-691 0599 Fax : 05-691 6935 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 140 RETAIL B NORTHERN NR05 SUNGAI BESAR AmBank (M) Berhad No. 58E, Jalan Mahsuri 45300 Sungai Besar Selangor GL : 03-3224 03-3224 03-3224 Fax : 03-3224 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 103. 185 PRIORITY NORTHERN NR05 TAIPING AmBank (M) Berhad No. 52-54, Jalan Taming Sari 34000 Taiping Perak GL : 05-806 2031 05-806 0613 Fax : 05-807 2108 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 104. 144 RETAIL B NORTHERN NR05 TANJUNG KARANG AmBank (M) Berhad Lot 132, 132A & 133B Jalan Besar 45500 Tanjung Karang Selangor ABB :5376 GL : 03-3269 5429 03-3269 8518 Fax : 03-3269 8997 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 105. 122 RETAIL B NORTHERN NR05 TANJUNG MALIM AmBank (M) Berhad 14 & 15, Jalan Douglas 35900 Tanjung Malim Perak GL : 05-459 6649 05-459 0825 Fax : 05-459 6371 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 106. 032 RETAIL A NORTHERN NR05 TELUK INTAN AmBank (M) Berhad No. 1049, Jalan Mahkota 36000 Teluk Intan Perak GL : 05-621 1795 05-621 7175 Fax : 05-621 2120 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 107. 164 RETAIL A SABAH SBH BANDAR PASARAYA AmBank (M) Berhad Lot 76 & 78 Bandar Pasaraya Mile 4, North Road 90009 Sandakan Sabah GL : 089-218 089-213 089-208 089-218 Fax : 089-218 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 05Leadership 06 Sustainability Report Branch Name 07 Additional Information 1455 2128 1153 2177 240 419 237 231 226 INTEGRATED REPORT 2020
  230. 228 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 108. 061 RETAIL B SABAH SBH KENINGAU 109. 167 PRIORITY SABAH SBH 110. 166 RETAIL A SABAH 111. 025 PRIORITY 112. 169 113. Branch Address General & Fax Line AmBank (M) Berhad Adika Commercial Complex Lot 40-42, Ground Floor 89000 Keningau Sabah GL : 087-331 087-333 087-331 087-333 Fax : 087-331 087-331 393 745 088 152 088 818 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. KOTA KINABALU – JALAN SAGUNTING AmBank (M) Berhad No. G1-G4, MBF Building No. 1, Jalan Sagunting 88816 Kota Kinabalu Sabah GL : 088-246 112 088-234 458 Fax : 088-248 967 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. SBH KOTA KINABALU – METRO TOWN AmBank (M) Berhad Unit 1-3 Ground & First Floor Block M Jalan Bunga Ulam Raja Metro Town Off Tuaran Road 88300 Kota Kinabalu Sabah GL : 088-393 088-393 088-393 Fax : 088-393 202 203 204 701 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. SABAH SBH KOTA KINABALU – PLAZA SHELL AmBank (M) Berhad Ground Floor, Plaza Shell No. 29, Jalan Tunku Abdul Rahman 88000 Kota Kinabalu Sabah GL : 088-276 088-276 088-276 088-276 088-276 Fax : 088-276 720 721 722 723 725 730 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. RETAIL A SABAH SBH KUDAT AmBank (M) Berhad Lot 9 & 10, Block E Sedco Building, Jalan Melor PO Box 344 89058 Kudat Sabah GL : 088-613 088-613 088-612 Fax : 088-612 255 194 301 253 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 170 RETAIL B SABAH SBH LABUAN AmBank (M) Berhad Lot U0205 Jalan Tanjung Kubong PO Box 80109 87007 Labuan Wilayah Persekutuan Labuan GL : 087-417 087-417 087-410 Fax : 087-412 891 898 778 118 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 114. 060 RETAIL B SABAH SBH LAHAD DATU AmBank (M) Berhad MDLD A154 & 155, Block 24 Sedco ShopHouse 91100 Lahad Datu Sabah GL : 089-884 562 089-881 561 Fax : 089-881 778 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 115. 024 RETAIL A SABAH SBH SANDAKAN AmBank (M) Berhad Lot 32-34, Blok HS-3 Sandakan Harbour Square Phase 2 Jalan Pryer 90000 Sandakan Sabah GL : 089-215 322 089-212 627 Fax : 089-273 666 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights Banking Hours 04 Management Discussion and Analysis
  231. 229 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 116. 207 PRIORITY SABAH SBH 117. 264 RETAIL B SOUTHERN 118. 253 RETAIL A 119. 044 120. Branch Address General & Fax Line TAWAU AmBank (M) Berhad Lot 13 & 15, Sabindo Square Jalan Dunlop 91000 Tawau Sabah GL : 089-770 089-770 089-764 089-763 Fax : 089-764 430 471 932 450 971 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. SR01 JOHOR BAHRU – SETIA TROPIKA AmBank (M) Berhad Lot No. G3 Tropika Welcome Center Jalan Setia Tropika 1/21 Taman Setia Tropika, Kempas 81200 Johor Bahru GL : 07-236 1124 07-236 1127 Fax : 07-235 1127 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. SOUTHERN SR01 JOHOR BAHRU – BUKIT INDAH AmBank (M) Berhad No. 28 & 30, Jalan Indah 16/5, Taman Bukit Indah 81200 Johor Bahru Johor GL : 07-235 4708 07-235 4722 Fax : 07-235 4834 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL A SOUTHERN SR01 JOHOR BAHRU – MELODIES GARDEN AmBank (M) Berhad No. 77 & 79 Jalan Meranti Merah Melodies Garden 80250 Johor Bahru GL : 07-334 1054 07-334 1061 Fax : 07-334 8800 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 007 PRIORITY SOUTHERN SR01 JOHOR BAHRU – METROPOLIS TOWER AmBank (M) Berhad Ground & First Floor Metropolis Tower Jalan Dato’ Abdullah Tahir 80300 Johor Bahru Johor GL : 07-335 07-335 07-335 Fax : 07-335 0600 0695 0696 0469 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 121. 105 RETAIL A SOUTHERN SR01 JOHOR JAYA AmBank (M) Berhad No. 1 Jalan Ros Merah 2/8 Taman Johor Jaya 81100 Johor Bahru Johor GL : 07-355 07-354 07-354 07-355 Fax : 07-356 7759 7033 6819 1588 2624 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 122. 215 RETAIL A SOUTHERN SR01 KOTA TINGGI AmBank (M) Berhad No. 8F-8G Jalan Tuanku Habab 81900 Kota Tinggi Johor GL : 07-883 07-883 07-882 Fax : 07-883 3233 4978 2095 4507 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 123. 036 RETAIL A SOUTHERN SR01 KULAI AmBank (M) Berhad No. 34 & 35, Lorong Dua 81000 Kulai Johor GL : 07-663 07-663 07-663 07-663 Fax : 07-663 1725 5785 5599 0611 1155 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 124. 070 RETAIL B SOUTHERN SR01 PASIR GUDANG AmBank (M) Berhad No. 1, Jalan Sejambak 14 Taman Bukit Dahlia 81700 Pasir Gudang Johor GL : 07-251 07-251 07-251 Fax : 07-251 0164 0861 9588 8908 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 125. 084 RETAIL A SOUTHERN SR01 PERMAS JAYA AmBank (M) Berhad No. 13 & 15 Jalan Permas Jaya 10/1 Bandar Baru Permas Jaya 81750 Johor Bahru Johor GL : 07-387 8978 07-387 8977 Fax : 07-387 7748 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 05Leadership 06 Sustainability Report 07 Additional Information Banking Hours INTEGRATED REPORT 2020
  232. 230 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 126. 026 RETAIL A SOUTHERN SR01 PONTIAN 127. 069 PRIORITY SOUTHERN SR01 128. 073 RETAIL A SOUTHERN 129. 104 RETAIL B 130. 155 131. Branch Address General & Fax Line AmBank (M) Berhad No. 663 & 664, Jalan Taib 82000 Pontian Johor GL : 07-687 07-687 07-687 Fax : 07-687 3171 3176 3169 3067 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. SKUDAI AmBank (M) Berhad No. 5 & 7, Jalan Nakhoda 1 Taman Ungku Tun Aminah 81300 Skudai Johor GL : 07-556 07-556 07-558 Fax : 07-556 07-558 8031 6402 4771 9121 1927 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. SR01 SUNGAI RENGIT AmBank (M) Berhad No. 33, Jalan Haji Abu Bakar Sungai Rengit 81620 Pengerang Johor GL : 07-826 3013 07-826 3011 Fax : 07-826 3359 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. SOUTHERN SR01 TAMPOI AmBank (M) Berhad No. 4 & 6, Ground Floor Jalan Padi Emas 6/1 Pusat Bandar Tampoi 81200 Johor Bahru Johor GL : 07-234 07-234 07-232 Fax : 07-234 1217 1216 1727 1131 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. RETAIL A SOUTHERN SR01 ULU TIRAM AmBank (M) Berhad No. 2, Jalan Badik 15 Taman Putri Wangsa 81800 Ulu Tiram Johor GL : 07-867 07-867 07-867 Fax : 07-867 1005 1004 1002 1006 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 149 RETAIL B SOUTHERN SR02 AYER KEROH AmBank (M) Berhad No. 28 & 29, Lorong Setia 1 Ayer Keroh Heights 75450 Melaka GL : 06-232 06-232 06-232 Fax : 06-232 3866 3146 6221 3466 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 132. 262 RETAIL B SOUTHERN SR02 BANDAR UTAMA CHENG AmBank (M) Berhad No. 53 & 55, Jalan Inang 3 Taman Paya Rumput Utama 76450 Melaka GL : 06-335 6066 06-334 6863 Fax : 06-335 8106 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 133. 013 RETAIL A SOUTHERN SR02 BATU PAHAT – JALAN RAHMAT AmBank (M) Berhad No. 35, Jalan Rahmat 83000 Batu Pahat Johor GL : 07-432 07-432 07-432 07-432 07-432 Fax : 07-431 134. 228 PRIORITY SOUTHERN SR02 BATU PAHAT – JALAN RUGAYAH AmBank (M) Berhad No. 178, Jalan Rugayah 83000 Batu Pahat Johor GL : 07-433 8431 07-433 4193 Fax : 07-431 6214 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 135. 150 RETAIL B SOUTHERN SR02 JASIN AmBank (M) Berhad No. 1800, Pusat Bandar Baru 77000 Jasin Melaka GL : 06-529 06-529 06-529 Fax : 06-529 4433 4362 4361 4363 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 136. 034 PRIORITY SOUTHERN SR02 KLUANG AmBank (M) Berhad No. 21, 22 & 23 Jalan Dato’ Teoh Siew Khor 86000 Kluang Johor GL : 07-771 07-772 07-772 Fax : 07-772 1948 3178 1089 6268 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 4208 8125 8124 8127 8123 8961 Banking Hours (ABM) (BM) (CSO) (PB) Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 04 Management Discussion and Analysis
  233. 231 Group Corporate Directory No . Branch Code New Branch Category Region Region Code 137. 039 RETAIL A SOUTHERN SR02 Branch Name Branch Address General & Fax Line Banking Hours MELAKA – JALAN MUNSHI ABDULLAH AmBank (M) Berhad No. 154 & 156 Kompleks Munshi Abdullah Jalan Munshi Abdullah 75100 Melaka ABB : 5309 GL : 06-282 06-286 06-286 Fax : 06-283 8114 6530 2870 6926 AmBank (M) Berhad No. 1 & 3 Jalan Melaka Raya 11 Taman Melaka Raya 75000, Melaka GL : 06-282 06-282 06-282 Fax : 06-282 5785 5897 5804 5979 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 138. 006 RETAIL A SOUTHERN SR02 MELAKA – MELAKA RAYA 139. 018 PRIORITY SOUTHERN SR02 MUAR AmBank (M) Berhad Ground Floor No. 111, Jalan Abdullah 84000 Muar Johor GL : 06-954 06-954 06-954 06-954 Fax : 06-954 0069 (CSO) 0073 0071 0072 0076 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 140. 053 RETAIL A SOUTHERN SR02 SEGAMAT AmBank (M) Berhad No. 1-2, Jalan Muhibbah Taman Utama 85000 Segamat Johor GL : 07-931 07-931 07-932 Fax : 07-931 5012 5021 1890 6159 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 141. 154 RETAIL A SOUTHERN SR02 TANGKAK AmBank (M) Berhad LC 285, Jalan Muar 84900 Tangkak Johor GL : 06-978 06-978 06-978 06-978 Fax : 06-978 1331 9519 3979 8830 2144 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 142. 156 RETAIL A SOUTHERN SR02 YONG PENG AmBank (M) Berhad No. 100, Jalan Besar 83700 Yong Peng Johor GL : 07-467 07-467 07-467 07-467 Fax : 07-467 4100 3546 2499 3254 2668 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 143. 038 RETAIL A SOUTHERN SR03 BAHAU AmBank (M) Berhad No. 122 & 123, Jalan Mewah 72100 Bahau Negeri Sembilan GL : 06-455 3008 06-455 3002 Fax : 06-454 3998 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 144. 123 RETAIL A SOUTHERN SR03 BANDAR BARU BANGI AmBank (M) Berhad No. 43-G-01 & 43A-G-01 Jalan Medan PB 2B, Seksyen 9 Bandar Baru Bangi 43650 Bangi Selangor GL : 03-8925 1124 03-8925 3313 Fax : 03-8925 2005 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 145. 186 PRIORITY SOUTHERN SR03 KAJANG AmBank (M) Berhad No. 6 & 7, Jalan S10/1 Section 10, Off Jalan Bukit 43000 Kajang Selangor GL : 03-8736 03-8737 03-8736 Fax : 03-8736 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 146. 146 RETAIL A SOUTHERN SR03 MANTIN AmBank (M) Berhad No. 48A, Jalan Besar 71700 Mantin Negeri Sembilan GL : 06-758 3631 06-758 1240 Fax : 06-758 2251 05Leadership 06 Sustainability Report 07 Additional Information 0468 8700 8177 7333 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. INTEGRATED REPORT 2020
  234. 232 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 147. 090 RETAIL B SOUTHERN SR03 NILAI 148. 219 RETAIL A SOUTHERN SR03 PORT DICKSON 149. 234 RETAIL A SOUTHERN SR03 150. 147 RETAIL A SOUTHERN SR03 Branch Address General & Fax Line AmBank (M) Berhad Lot PT 7437, Jalan BBN 1/2F Putra Point 1 Bandar Baru Nilai 71800 Nilai Negeri Sembilan GL : 06-794 06-794 06-794 06-794 06-794 Fax : 06-794 0411 0412 0413 0414 0417 0415 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AmBank (M) Berhad No. 1001 & 1002 Jalan Bandar 71000 Port Dickson Negeri Sembilan GL : 06-646 1016 06-6471398 Fax : 06-647 4033 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. PUTRAJAYA (ISLAMIC) AmBank (M) Berhad Lot G02, Ground Floor Alamanda Shopping Complex Precint 1 62000 Putrajaya Wilayah Persekutuan GL : 03-8889 03-8889 03-8889 03-8893 03-8893 03-8893 03-8888 03-8889 Fax : 03-8889 Mon - Thu: 10.00 a.m. to 4:30 p.m. Fri: 2.00 p.m. to 4:30 p.m. *Business clossed from 1.00 p.m. to 2.00 p.m. for Friday Prayers* RASAH JAYA AmBank (M) Berhad No. 3820 & 3821 Jalan RJ 6/8 Taman Rasah Jaya 70300 Seremban Negeri Sembilan ABB : 5094 GL : 06-631 06-632 06-632 06-632 Fax : 06-632 AmBank (M) Berhad No. 43-G & 45-G Ground Floor Jalan Semenyih Sentral 1 43500 Semenyih Selangor GL : 03-8723 03-8723 03-8723 Fax : 03-8723 9897 7605 9609 9571 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AmBank (M) Berhad No. 56, Jalan Besar 43900 Sepang Selangor ABB : 5086 GL : 03-3142 2250 03-3142 2171 Fax : 03-3142 2170 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 0298 5326 5298 5167 1589 1256 3898 6806 5352 1707 8462 8463 8420 8382 Banking Hours Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 151. 134 RETAIL A SOUTHERN SR03 SEMENYIH 152. 135 RETAIL B SOUTHERN SR03 SEPANG 153. 148 RETAIL A SOUTHERN SR03 SEREMBAN – JALAN DATO LEE KONG YEE AmBank (M) Berhad No. 22 & 23 Jalan Dato’ Lee Fong Yee 70000 Seremban Negeri Sembilan GL : 06-762 06-767 06-762 06-762 Fax : 06-763 4463 8894 6754 6768 5905 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 154. 009 PRIORITY SOUTHERN SR03 SEREMBAN – JALAN PASAR AmBank (M) Berhad Unit No. 5-G, 5-1, 6-G & 6-1 AmBank Business Centre Jalan Pasar 70000 Seremban Negeri Sembilan GL : 06-764 06-764 06-764 Fax : 06-763 06-764 7734 7735 7750 6195 1537 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. 155. 064 RETAIL A SOUTHERN SR03 TAMPIN AmBank (M) Berhad 2430 Jalan Besar Pulau Sebang 73000 Tampin Melaka ABB : 5684 GL : 06-441 1330 Fax : 06-441 4735 Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. AMMB HOLDINGS BERHAD 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 04 Management Discussion and Analysis
  235. 233 Group Corporate Directory No . Branch Code New Branch Category Region Region Code Branch Name 156. 172 RETAIL A SARAWAK SWK BAU 157. 226 RETAIL A SARAWAK SWK BINTULU 158. 260 RETAIL A SARAWAK SWK 159. 243 RETAIL A SARAWAK 160. 051 PRIORITY 161. 011 162. 241 05Leadership Branch Address General & Fax Line AmBank (M) Berhad Ground Floor, Block B No. L 273, Jalan Market Bau Town District 94000 Bau Sarawak GL : 082-762 082-762 082-762 Fax : 082-762 322 325 319 320 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. AmBank (M) Berhad Lot 506, Ground & First Floor Right Wing Bangunan BDA Jalan Sommerville 97000 Bintulu Sarawak GL : 086-334 086-334 086-334 Fax : 086-311 086-332 152 153 154 400 (HP) 400 (OPS) Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. KUCHING – PREMIER 101 AmBank (M) Berhad Lot 92, 93 & 94 Ground Floor, Premier 101 Jalan Tun Jugah 93350 Kuching Sarawak GL : 082-466 116 Fax : 082-466 106 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. SWK KUCHING – TABUAN JAYA AmBank (M) Berhad Ground Floor Lot 41 & 42 Pusat Komersil Tabuan Stutong Jalan Setia Raja 93350 Kuching Sarawak GL : 082-361 082-360 082-360 082-360 082-360 Fax : 082-360 581 644 740 761 859 942 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. SARAWAK SWK KUCHING – JALAN ABELL AmBank (M) Berhad No. 164, 166 & 168 Jalan Abell 93100 Kuching Sarawak GL : 082-244 608 082-244 604 Fax : 082-232 023 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. PRIORITY SARAWAK SWK KUCHING – JALAN HJ TAHA (SATOK) AmBank (M) Berhad Ground Floor & Mezzanine Floor Bangunan AmBank Lot 257, Jalan Haji Taha Section 8 93400 Kuching Sarawak GL : 082-244 082-256 082-207 082-428 Fax : 082-244 082-256 597 594 299 925 611 (HP) 600 (OPS) Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. RETAIL A SARAWAK SWK KUCHING – JALAN PENRISSEN AmBank (M) Berhad Ground & First Floor Lot 16, 17 & 18 Golden Court Commercial Centre Batu 4½, Jalan Penrissen 93250 Kuching Sarawak GL : 082-455 082-455 082-457 082-457 Fax : 082-455 532 560 652 (HP) 930 (HP) 596 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 06 Sustainability Report 07 Additional Information Banking Hours INTEGRATED REPORT 2020
  236. 234 Group Corporate Directory No . Branch Code New Branch Category Region Region Code 163. 019 RETAIL A SARAWAK SWK 164. 049 RETAIL A SARAWAK 165. 065 RETAIL B 166. 067 167. Branch Address General & Fax Line MIRI BOULEVARD AmBank (M) Berhad Lot 2504 & 2505 Boulevard Commercial Centre KM3, Jalan Miri-Pujut 98000 Miri Sarawak GL : 085-437 085-437 085-437 085-437 Fax : 085-437 908 909 910 912 915 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. SWK MIRI – BEAUTIFUL JADE CENTRE AmBank (M) Berhad Lot 244 & 246 Beautiful Jade Centre 98007 Miri Sarawak GL : 085-414 988 085-411 257 Fax : 085-419 676 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. SARAWAK SWK SARIKEI AmBank (M) Berhad Ground & 1st Floor No. 18A & 18B Lorong Tun Razak 96100 Sarikei Sarawak GL : 084-656 084-655 Fax : 084-656 084-655 804 777 764 775 RETAIL B SARAWAK SWK SERIAN AmBank (M) Berhad Ground Floor, Lot 295 Serian Town District 94700 Serian Sarawak GL : 082-875 082-875 084-875 Fax : 082-875 158 177 178 155 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 238 SATELITE SARAWAK SWK SIBU JAYA AmBank (M) Berhad Lot 1195 S/L 37 Ground Floor, Block 1 Menyan L.D., Sibu Jaya 96000 Sibu Sarawak GL : 084-237 084-236 084-237 Fax : 084-237 849 978 030 927 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 168. 180 PRIORITY SARAWAK SWK SIBU – JALAN PEDADA AmBank (M) Berhad No. 14-15, Ground Floor Pusat Pedada, Jalan Pedada Delta Commercial Centre 96000 Sibu Sarawak GL : 084-337 791 084-339 105 Fax : 084-337 736 Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 169. 012 PRIORITY SARAWAK SWK SIBU – JALAN TUNKU OSMAN AmBank (M) Berhad Jalan Tunku Osman No. 21-25 Ground & 1st Floor Jalan Tuanku Osman 96000 Sibu Sarawak GL : 084-321 084-348 Fax : 084-321 084-348 170. 179 PRIORITY SARAWAK SWK SIBU – TANAHMAS AmBank (M) Berhad Ground Floor, Lot 115 101 & 102 Wisma Sibu Chinese Chamber of Commerce & Industry, Jalan Chambers 96000 Sibu, Sarawak GL : 084-314 126 084-321 789 Fax : 084-318 786 AMMB HOLDINGS BERHAD Branch Name 01 Overview of AmBank Group 02 Key Messages 03 Key Highlights 777 746 788 745 Banking Hours (HP) (OPS) (HP) (OPS) (HP) (OPS) (HP) (OPS) Mon - Thu: 9.00 a.m. to 4.30 p.m. Fri: 9.00 a.m. to 4.00 p.m. Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. Mon - Thu: 8.45 a.m. to 4.15 p.m. Fri: 8.45 a.m. to 3.45 p.m. 04 Management Discussion and Analysis
  237. Form of Proxy No . of Shares Held AMMB HOLDINGS BERHAD Registration No. 199101012723 (223035-V) (Incorporated in Malaysia) CDS Account No. Telephone No. Proportion of Holdings to be Represented by Each Proxy Proxy 1 % Proxy 2 % I/We (Full Name in Capital Letters) NRIC/Passport/Company No. of (Full Address) being a member of AMMB Holdings Berhad, hereby appoint (Full Name in Capital Letters) NRIC/Passport No. of (Full Address) or failing him/her (Full Name in Capital Letters) NRIC/Passport No. of (Full Address) or failing him/her, THE CHAIRMAN OF THE MEETING, as my/our proxy to vote for me/us and on my/our behalf at the 29th Annual General Meeting of the Company to be held virtually through live streaming, at the Broadcast Venue at Board Room, 26th Floor, Bangunan AmBank Group, Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia on Thursday, 27 August 2020 at 10.00 a.m. or at any adjournment thereof. Please indicate with a “X” or “√ “ in the boxes below how you wish your vote to be cast. In the absence of specific directions, your proxy will vote or abstain as he/she thinks fit. My/ our proxy is to vote as indicated below: Ordinary Resolutions No. To approve the payment of Directors’ fees for the financial year ended 31 March 2020. 1 To approve the payment of benefits payable to the Directors for the period from 1 August 2020 until the next AGM of the Company. 2 To re-elect Voon Seng Chuan as Director. 3 To re-elect Farina binti Farikhullah Khan as Director. 4 To re-elect Hong Kean Yong as Director. 5 To re-elect Dato’ Kong Sooi Lin as Director. 6 To re-appoint Messrs Ernst & Young PLT as Auditors and to authorise the Directors to determine their remuneration. 7 To empower Directors to allot and issue new ordinary shares for the purpose of the Company’s Dividend Reinvestment Plan. 8 To empower Directors to allot and issue new ordinary shares pursuant to Sections 75 and 76 of the Companies Act, 2016. 9 To approve the Proposed Renewal of Authority for the Purchase by the Company of its own Ordinary Shares. 10 To approve the Proposed Renewal of Existing Shareholder Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature with Amcorp Group Berhad Group. 11 Dated this day of For Against 2020. Signature of Shareholder (If the shareholder is a corporation, this part should be executed under seal)
  238. Notes : (1) A member of the Company entitled to participate and vote at the AGM is entitled to appoint more than one proxy to participate and vote on his/her behalf, provided he/she specifies the proportion of his/her shareholdings to be represented by each proxy. (6) (2) A proxy need not be a member of the Company. There shall be no restriction as to the qualification of the proxy. A proxy appointed to participate and vote at the AGM shall have the same rights as the member to pose questions at the AGM. (3) Where a member of the Company is an authorised nominee, as defined in the Securities Industry (Central Depositories) Act, 1991 (SICDA), it may appoint more than one proxy in respect of each securities account it holds in ordinary shares of the Company standing to the credit of the said securities account. The appointments shall be invalid unless the proportion of shareholdings to be represented by each proxy is specified in the instrument appointing the proxies. (7) The appointment of a proxy may be made in the following manner and must be received by the Company via its Share Registrar, Boardroom Share Registrars Sdn Bhd not less than 48 hours before the time appointed for holding the 29th AGM, i.e. latest by Tuesday, 25 August 2020 at 10.00 a.m.:- (4) Where a member of the Company is an exempt authorised nominee which holds ordinary shares in the Company for multiple beneficial owners in one securities account (omnibus account), there is no limit to the number of proxies which the exempt authorised nominee may appoint in respect of each omnibus account it holds. An exempt authorised nominee refers to an authorised nominee defined under the SICDA which is exempted from compliance with the provisions of subsection 25A(1) of SICDA. The appointments shall be invalid unless the proportion of shareholdings to be represented by each proxy is specified in the instrument appointing the proxies. If the Form of Proxy is returned without indication as to how the proxy shall vote, the proxy will vote or abstain as he/she thinks fit. If no name is inserted in the space provided for the name of your proxy, the Chairman of the Meeting will act as your proxy. • By electronic means via online The proxy appointment must be made via Boardroom Smart Investor portal at https://boardroomlimited.my • By electronic means via email The form of proxy must be received via email at Boardroom’s email address at BSR.Helpdesk@boardroomlimited.com • By electronic means via facsimile The form of proxy must be received via facsimile at Boardroom’s fax number 03-7890 4670 • In hardcopy form (5) The instrument appointing a proxy shall be in writing under the hand of the appointor or of his/her attorney duly authorised in writing or if the appointor is a corporation, either under seal or under the hand of an officer or attorney of the corporation duly authorised. The form of proxy must be deposited at the office of the Company’s Share Registrar, Boardroom Share Registrars Sdn Bhd, 11th Floor, Menara Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor Darul Ehsan, Malaysia Personal Data Privacy: By submitting an instrument appointing a proxy(ies) and/or representative(s) to participate and vote at the AGM and/or any adjournment thereof, a member of the Company (i) consents to the collection, use and disclosure of the member’s personal data by the Company (or its agents) for the purpose of the processing and administration by the Company (or its agents) of proxies and representatives appointed for the AGM (including any adjournment thereof), and the preparation and compilation of the attendance lists, minutes and other documents relating to the AGM (including any adjournment thereof), and in order for the Company (or its agents) to comply with any applicable laws, listing rules, regulations and/or guidelines (collectively, the “Purposes”), (ii) warrants that where the member discloses the personal data of the member’s proxy(ies) and/or representative(s) to the Company (or its agents), the member has obtained the prior consent of such proxy(ies) and/or representative(s) for the collection, use and disclosure by the Company (or its agents) of the personal data of such proxy(ies) and/or representative(s) for the Purposes, and (iii) agrees that the member will indemnify the Company in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the member’s breach of warranty. Please fold here to seal AFFIX STAMP The Share Registrar for AMMB Holdings Berhad Boardroom Share Registrars Sdn Bhd 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13 46200 Petaling Jaya Selangor Darul Ehsan Malaysia Please fold here to seal
  239. AMMB Holdings Berhad 199101012723 (223035-V) (Incorporated in Malaysia) 22nd Floor, Bangunan AmBank Group No. 55, Jalan Raja Chulan, 50200 Kuala Lumpur, Malaysia Tel: 603-2036 2633 Fax: 603-2032 1914 ambankgroup.com