BIMB Integrated Annual Report 2019

MANAGEMENT DISCUSSION & ANALYSIS FUTUREPROOFING OUR BUSINESS FOR PROGRESSIVE AND SUSTAINABLE PROSPERITY However, gross brokerage revenue from the Retail Business segment increased by 19% as compared to 2018 as retail traders dominated the equity market in 2019. Income from Non-Dealing activities also increased by 40% in 2019 as compared to 2018 with the increase in fees and number of funds advised by the Shariah Advisory as well as increase in income from share margin financing. Increase in Retail Activities The increase in retail trading activities that grew in 2019 was also in line with the increase in the number of active Retail accounts opened for the year. As at end of 2019, 3,249 new accounts and active accounts were opened and traded compared to 1,192 new accounts as at 31 December 2018. BIMB Securities also conducted in-house technical analysis and fundamental analysis workshops with its retail investors to impart securities trading knowledge. This type of initiative goes a long way in inculcating deeper knowledge into Islamic and securities trading as part of its efforts towards the key priority of Islamic Finance & Knowledge-Sharing . Moving Forward As the securities business is deeply inter-linked with economic performance and market sentiment, we expect the year ahead to continue to be challenging against the uncertainties surrounding COVID-19 and its impact on the world. As at time of writing this report, global equity markets have trended downwards. We will continue to be vigilant on managing risks and capitalising on market opportunities ahead of the expected recovery from COVID-19. Within the organisation, we will continue with efforts to develop our people, while enhancing our trading platform towards digital enhancements, as well as augmenting our offerings to our customers. The operating environment going forward will continue to be challenging and requires us to be alert to risk mitigating measures as well as proactive in seeking growth opportunities. In the near term, we have some expectations of impact to our earnings following the extraordinary market and economic conditions. However, the Group has built a strong foundation of resilience and sustainability that allows us to enter 2020 on a solid footing. We will continue to reap the benefits of years of business strengthening and sustainability building efforts, while buttressing our risk management measures as we contend with the challenging future ahead of us. The corporate exercise that we aim to undertake, following regulatory and shareholder approvals as well as considerations to market conditions will be an apt and timely step towards futureproofing our business. This stance is critical to the Group as part of our main objective of creating sustainable value for our stakeholders. Each of our business has grown organically to a level where it is ready and able to chart its own course. They will have the focus and agility to pursue their distinct business strategies in pursuit of their aspirations, with the ability to make faster and empowered decisions. The Group’s corporate strategy has seen each of the business well-supported by a strong balance sheet while our established track record of cost discipline as well as our prudent risk practices will enable each of the subsidiary to continue to manage and grow the business despite an increasingly uncertain and volatile environment. 119 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary