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MANAGEMENT
DISCUSSION & ANAlYSIS
In the immediate future, the planned For our stakeholders, the restructuring offers continued commitments as
restructuring entails a fundraising exercise, well as a host of positive impacts:
a scheme of arrangement for settlement of
outstanding warrants of the Company, an
internal reorganisation of the Company’s Investors can unlock value and gain direct exposure
subsidiaries, a distribution and capital to Islamic Banking and Takaful businesses to meet their
repayment exercise involving the distribution individual investment preferences. They will also have
of the Company’s entire shareholdings in Bank
INTEGRATED ANNUAL REPORT 2020 of the Company, and lastly the transfer of listing contributes approximately 39% to the BHB Group’s PBZT,
a better insight of the business to help them analyse
Islam and Takaful Malaysia to the shareholders
its performance. Though currently, Takaful Malaysia
status of BHB to Bank Islam by end 2021.
the exercise should not have any significant impact in term
of profitability to Bank Islam. On its own, the Bank has
The timing for this exercise has been fortunate.
been able to generate sustainable profit over the years.
At the start of 2020, the greatest challenge in
It is evidenced by improving profitability for the past five
bringing the listing into fruition has been the
spread of COVID-19 which brought the global
pandemic situation.
economy to a standstill, resulting in an inevitable years, albeit profits have slightly tapered in 2020 due to the
disruption in the way businesses operate and With a clearer and more distinct business focus, customers
90 our restructuring plan. However, in ensuring will benefit from performance improvement, clear and
a sustainable future within this new business distinctive strategic and business direction, and improved
landscape compounded by the consequences decision-making process, which should enhance customer
of the pandemic and economic challenges, service.
BIMB HOLDINGS BERHAD 199701008362 (423858-X) to opportunities and reshape a sustainable without having to affect each other. Each entity will be able
the restructuring grants our Shariah-compliant
The pure-play entities will have greater autonomy to pursue
business entities greater autonomy to react with
their own growth strategies and business direction plan
agility to unique challenges of the day, respond
access more flexible funding options, which will help to
future in line with the Islamic principles and VBI
strengthen business relations with partners and suppliers.
agenda.
Employees of BHB will be absorbed into Bank Islam,
The gradual path to recovery is on-going and
and plans for improved talent-sourcing and better people
not expected to be smooth-sailing. While we
management and development have been established at all
can be cautiously optimistic, depending on the
successful implementation of vaccine roll-out
throughout the nation, weaker global growth
Communities stand to benefit from each pure-play
prospects could weigh on earnings. Within this entities
companies, which will continue to support and fund
uncertain landscape, resilience and agility will be sustained and well-managed CSR efforts. At Bank Islam,
key attributes of success. And these are precisely social finance will be the main focus where the financial
the benefits restructuring offers Bank Islam once capital leverage will ensure continuous contributions to the
it takes the helm as the only listed pure-play full- people and segments that matters. Efforts to engage with
fledged Islamic financial institution, poised and non-governmental organisations will continue.
ready to chart another meaningful journey in
the Islamic finance sphere. Dealings and engagements with the authorities and
regulators will continue to remain strong and improve with
We expect the next five years to be a a more significant business focus. Each pure-play entities
transformative journey for the Group. In the will be able to participate in government initiatives within
future, Bank Islam and Takaful Malaysia will their respective industries.
have greater autonomy to pursue their own
growth strategies, improve the decision-making With better access to information on financial and
process, and access more flexible funding operational matters, stakeholders such as analysts, media,
options. Capital will be made readily available academic and industry groups will be better able to assess
to accommodate and support respective entities each Company’s performance for benchmarking, research,
business growth for the long term, targetted to and analysis. The pure-play entities will also be able to
be sustainable. participate in industry associations independently.
