Bank Muamalat Malaysia Berhad: Annual Report 2016

Transcription

3. CONTENT Highlights and Overview Accountability Leadership The Financial 04 05 06 09 10 14 16 26 27 30 32 34 36 10 Years Financial Highlights Corporate Information Asset Performance Connected Party Media Highlights Board of Directors Profile of Board of Directors Shariah Committee Profile of Shariah Committee Terms of Reference Statement from the Chairman of Shariah Committee Senior Management Profile of Senior Management 92 100 102 110 112 Statement on Corporate Governance Statement on Internal Controls Statement on Risk Management Statement on Compliance Code of Conduct & Ethical Principles 113 Financial Statements 303 Basel II – Pillar 3 Disclosures Others 380 Branch Network Insights 46 Chairman’s Statement 50 From The CEO’s Blog 56 Business Division 64Operations Division 70 Credit Management Division 72 Corporate Services Division 74 Finance Division 76 Human Capital Division 78 Muamalat Invest Sdn. Bhd. (MISB) 79 Muamalat Venture Sdn. Bhd. (MVSB) 80 Musharakah Property Investment Department (MPID) 81 Tabung Mawaddah 82 Wakaf Selangor Muamalat 84 Corporate Responsibility 88 Calendar of Events 1 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
4. To Become the Preferred Islamic Financial Service Provider VISION & MISSION To Deliver Best Value to the Stakeholders VALUE • Care • Respect • Integrity • Innovative • Service Oriented 2 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
5. B ank Muamalat ’s logo and identity are essentially formed by a dynamic line in a continuous motion. The principal objective of efficiency and dynamism are reflected by this single line. The single line signifies an efficient, clear and focused vision. This reflects the strong relationship between Bank Muamalat and its customers. The dome is a basic design element of Islamic architecture. It is used to signify the place for prayers and shelter. This represents the products and services that Bank Muamalat can offer to its customers. The five domes are representative of the five tenets of Islam and the five times Muslims are called to pray. The five points are also used in relation to the five principles of the Rukun Negara, giving a truly Malaysian objective to its existence. The linkage of the five domes with a single line signifies networking of Bank Muamalat and the relationship between Bank Muamalat, customers and its external environment. This networking and togetherness translate the very meaning of Muamalat itself, which is “relationship between mankind”. An hour glass embedded in the centre within the logo design stands for the time which is the essence of a bank. Investments grow over time. Two colours are used within the logo. Sultan blue, a royal colour is used to provide a feeling of strength and confidence. Orange is a warm and exciting colour. It gives light and signifies growth. The orange is used to signify the warmth of Bank Muamalat which is in continuous growth, never static but always dynamic. 3 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
6. 10 Years Financial Highlights 2012 Restated 2013 2014 2015 2016 737 ,331 702,236 1,319,131 1,348,286 1,401,004 1,598,476 1,745,576 1,854,694 1,995,937 Profit/(Loss) Before Tax (RM’000) 103,409 64,238 44,068 142,061 186,785 103,006 235,963 208,284 121,966 167,233 Profit/(Loss) After Tax (RM’000) 72,520 48,138 31,951 98,834 120,433 69,244 167,936 151,564 89,280 131, 909 Total Assets (RM’000) 13,450,636 13,808,090 14,398,645 16,733,420 18,659,940 20,504,037 21,071,590 20,061,690 22,438,036 22,636,889 Total Deposits (RM’000) 12,178,691 12,172,868 12,447,970 14,920,856 16,216,173 18,151,087 18,744,179 17,629,228 19,544,549 19,643,428 Total Financing (RM’000) 5,373,343 5,870,585 6,427,747 7,037,126 7,495,007 9,064,271 10,352,626 11,899,691 13,414,670 14,512,877 No of Branches No of Service Centres/Kiosk No of Offshore Branches/Labuan No of Staff 43 6 1 1,380 48 3 1 1,454 48 5 1 1,419 49 6 1 1,584 51 4 1 1,763 58 2 1 1,929 59 7 1 2,099 59 7 1 2,135 59 7 1 1,987 61 1 1 1,703 Return on Asset (%) - Pretax Return on Equity (%) - Pretax 0.87 16.72 0.47 8.86 0.31 6.12 0.73 11.24 1.06 15.24 0.53 7.49 1.14 15.73 1.01 12.46 0.57 6.78 0.74 8.69 2008 713,126 2007 Total Shareholders Fund (RM’000) 2006 2011 Restated Jan 2009 - Mar 2010 (2006-2016) – GROUP _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ _____________________________________________________________________________________________________________________________________________ 4 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
7. Corporate Information BOARD OF DIRECTORS COMPANY SECRETARY __________________________________ Chairman __________________________________ Nora Shikhen Ramli (LS 01587) Tan Sri Dato’ Dr. Mohd Munir Abdul Majid REGISTERED OFFICE __________________________________ Members __________________________________ Dato’ Sri’ Che Khalib Mohamad Noh Dato’ Ahmad Fuaad Mohd Kenali (appointed w.e.f. 29 July 2015) Dato’ Haji Mohd Redza Shah Abdul Wahid Dato’ Haji Mohd Izani Ghani Haji Abdul Jabbar Abdul Majid Tengku Dato’ Seri Hasmuddin Tengku Othman Dato’ Azmi Abdullah Dato’ Haji Kamil Khalid Ariff Dr. Azura Othman (appointed w.e.f. 24 April 2015) 5 20th Floor, Menara Bumiputra Jalan Melaka 50100 Kuala Lumpur Tel: 603-2615 7069 Fax: 603-2693 3367 AUDITORS __________________________________ Ernst & Young Level 23A, Menara Milenium Jalan Damanlela Pusat Bandar Damansara 50490 Kuala Lumpur BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
8. Asset Performance Financing by Business Segments 6 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
9. Financing by Islamic Contract Asset Quality Performance COMPONENTS 2012 2013 2014 2015 2016 Gross impaired financing (RM Million) 446.3 265.4 325.7 339.7 326.5 Gross impaired financing ratio (%) 2.9% 2.5% 2.7% 2.5% 2.2% Financing loss reserve ratio (%) 87.8% 102.2% 83.3% 83.3% 88.7% Collective assessment ratio (%) 2.9% 2.3% 1.6% 1.8% 1.4% 7 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
10. Impaired Financing by Sector Impaired Financing by Business 8 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
11. Connected Party 9 As at end of FY2016 , connected parties exposure accounted for 6.5% of the total outstanding credit exposures of RM24.0 billion. The amount stood at 72% against Bank Muamalat’s capital base of RM2.17 billion. Both measurements were well below the threshold limit set by Bank Negara Malaysia. BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
12. MEDIA HIGHLIGHTS 10 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
13. 11 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
14. 12 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
15. 13 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
16. Board of Tan Sri Dato ’ Dr. Mohd Munir Abdul Majid Directors Haji Abdul Jabbar Abdul Majid Dato’ Haji Mohd Redza Shah Abdul Wahid Dato’ Haji Mohd Izani Ghani Dato’ Sri Che Khalib Mohamad Noh 14 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
17. Tengku Dato ’ Seri Hasmuddin Tengku Othman Dato’ Haji Kamil Khalid Ariff Dato’ Azmi Abdullah 15 BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016 Nora Shikhen Ramli (Company Secretary) Dr. Azura Othman
18. Profile of Board of Directors TAN SRI DATO ’ DR. MOHD MUNIR ABDUL MAJID Chairman T an Sri Dato’ Dr. Mohd Munir Abdul Majid is the Chairman of Bank Muamalat and was appointed to the Board of Bank Muamalat on 3 June 2008. He is also the Chairman of Veto Committee. He obtained a B.Sc (Econ) from the London School of Economics and Political Science (LSE) in 1971 where he also obtained his Ph.D in International Relations in 1978. He taught at the Department of International Relations in LSE from 1972-1975. He was a research analyst for Daiwa Europe NV in London from 1975-1978. Dr. Munir joined the New Straits Times (NST) at the end of 1978 as leader writer and progressed to become the Group Editor. During his time at NST, he published numerous articles on national and international politics, and economics. (He continues to write, now as a columnist for The Star, Malaysia’s leading English language newspaper). He left NST in 1986 to become the CEO of a small merchant bank, Pertanian Baring Sanwa (PBS), whose name he changed to Commerce International Merchant Bankers (CIMB) which was then transformed into one of Malaysia’s leading merchant banks. He was invited by the Government of Malaysia to establish and become the first and founding Executive Chairman of the Securities Commission in 1993, where he served for two terms until 1999. As the founding Executive Chairman he was instrumental in shaping the legal and regulatory framework of the capital markets, as well as introducing the country’s first code of corporate governance. During this time, he was the chairman of the emerging markets committee of the International Organisation of Securities Commissions (IOSCO). In 1997, he received the Cranfield Management Excellence award. After leaving the Securities Commission, he served as a Senior Independent NonExecutive Director of Telekom Malaysia Berhad for 4 years until June 2004, and was the chairman of its mobile subsidiary Celcom (M) Berhad from 2002-2004. In June 2004, 16 Dr. Munir joined Malaysia Airlines Board of Directors and in August he was appointed its Non-Executive Chairman until July 2011. He became the Chairman of Bank Muamalat Malaysia Berhad, an Islamic financial institution, in 2008. In February 2014 Dr. Munir was appointed Chairman of CIMB Asean Research Institute and also joined the board of the Institute of Strategic and International Studies (ISIS) Malaysia. He is Chairman of the Asean Business Advisory Council – Malaysia Chapter and is 2015 chair of the Council region-wide. He is the President of the Asean Business Club and also the Co-chair of the Malaysia-America Foundation, which seeks to deepen relations between the two countries. Dr. Munir was the founder President of the Kuala Lumpur Business Club (2003-2008). In May 2004, he was appointed a member of the Court of Fellows of the Malaysian Institute of Management. In December 2005, he was made an Honorary Fellow of the LSE and in 2008 he was appointed Visiting Senior Fellow at LSE IDEAS (Centre for International Affairs, Diplomacy and Strategy) where he started the Southeast Asia International Affairs Programme and headed it until 2012. He has written for IDEAS publications and published in International Politics, a British academic journal. A collection of his articles was published in a book, 9/11 and the Attack on Muslims. He is a member of the International Institute of Strategic Studies. Dr Munir received his early education at St Mark’s Primary School in Butterworth and the Bukit Mertajam High School in the state of Penang. He received his upper secondary education at the Royal Military College in Sungei Besi near Kuala Lumpur where he was awarded the Commandant’s Prize for being the best all-round student in 1967. He left for London the next year. BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
19. Profile of Board of Directors DATO ’ HAJI MOHD REDZA SHAH ABDUL WAHID Chief Executive Officer/Executive Director Dato’ Haji Mohd Redza Shah Abdul Wahid was appointed to the Board of the Bank on 1 November 2008. He holds a Bachelor of Science in Economics (Industry and Trade) from London School of Economics, University of London and a Master of Science in Economics (International Banking and Finance) from University of Wales, Cardiff. He is also a qualified Chartered Banker. Dato’ Haji Mohd Redza Shah started his career with Touche Ross & Co., London (now known as Deloitte & Touche) in 1988 as Trainee Accountant and qualified as Associate Chartered Accountant (ACA). In 1992 he joined Arab Malaysian Corporation Berhad, in Internal Audit and progressed to become the Corporate Finance Manager. He then joined Khazanah Nasional Berhad when 17 it commenced operations in July 1994 as a Senior Finance Manager and later moved to Silterra Malaysia Sdn Bhd, as Chief Financial Officer. He left Silterra Malaysia Sdn Bhd to spearhead Tradewinds Corporation Berhad as the Group CEO from September 2002 to November 2005. Prior to joining Bank Muamalat, he was the Executive Director and Group Chief Operating Officer of DRBHICOM from 1 March 2006 till October 2008. Dato’ Haji Mohd Redza Shah currently sits on the Board of Malaysian Electronic Payment System Sdn Bhd (MEPS), Islamic Banking & Finance Institute Malaysia (IBFIM) and Raeed Holding Sdn Bhd. He also sits on the Board of the Bank’s subsidiaries. BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016
20. DATO ’ SRI CHE KHALIB MOHAMAD NOH Non-Independent Non-Executive Director D ato’ Sri Che Khalib Mohamad Noh was appointed as Non-Independent Non-Executive Director of Bank Muamalat nominated by DRB-HICOM Berhad on 27 August 2012. He is a member of Remuneration, Nomination and Veto Committees. Dato’ Sri Che Khalib is currently the Group Managing Director of MMC Corporation Berhad. He was the former President and Chief Executive Officer of Tenaga Nasional Bhd (TNB), prior to his position as the Chief Operating Officer - Finance, Strategy & Planning of DRB-HICOM Berhad. A qualified accountant, Dato’ Sri Che Khalib is a member of the Malaysian Institute of Accountants (CA, M) and also a Fellow of the Association of Chartered Certified Accountants (FCCA, UK) United Kingdom. 18 Dato’ Sri Che Khalib began his career with Messrs Ernst & Young in 1989 and later joined Bumiputra Merchant Bankers Berhad. He was previously a member of the Board and the Executive Committee of Khazanah Nasional Berhad from year 2000 to 2004. He also served as a Board member within the United Engineers Malaysia (UEM) Group of companies and Bank Industri & Teknologi Malaysia Berhad. He currently sits on the Board of Gas Malaysia Berhad, Zelan Berhad, Malakoff Corporation Berhad, Johor Port Berhad, MMC Engineering Group Berhad, NCB Holdings Bhd, Aliran Ihsan Resources Berhad, Kontena Nasional Berhad, Northport (Malaysia) Berhad and several private limited companies. BANK MUAMALAT MALAYSIA BERHAD (6175-W) • annual report 2016