BIMB Integrated Annual Report 2019

Takaful Takaful Malaysia recorded higher PBZT compared to the previous year, with an increase of 24% to RM417.7 million from RM337 million in 2018. This was due to higher net wakalah fee income arising from the growth in the Family Takaful business, coupled with stronger net investment income. Profit After Zakat and Tax (“PAZT”) rose by 25% to RM366.3 million , increased from RM292.6 million as compared to the previous financial year. Family Takaful’s total gross contributions increased by 27% from the previous year to RM2 billion , while General Takaful’s total gross contributions increased by 2% in 2019 to RM723.6 million . Over the last five years, Takaful Malaysia has charted a strong PAZT CAGR at 17.6% . Securities Macroeconomic indicators such as economic growth, interest rates and policies can have an impact on BIMB Securities’ business. Against a weak economic and market environment that underscored the year in review, BIMB Securities recorded a Loss Before Zakat and Tax (“LBZT”) of RM3.2 million for 2019. While the institutional business segment dropped sharply in gross brokerage revenue contribution, retail business segment grew by 19% . More details on the financial performance of Bank Islam, Takaful Malaysia and BIMB Securities are noted in the Management Discussion and Analysis section on page 114. STRONG RETURNS TO SHAREHOLDERS With the strong performance charted by BHB in 2019, earnings per share increased to 44.75 sen compared to 40.36 sen in the previous financial year, while our Return On Equity (“ROE”) stood strongly at 15.7% . Net asset per share improved to RM3.34 as at end 2019 compared with RM2.97 for the same period in 2018. Net profit attributable to shareholders rose 15.4% or RM104.8 million to RM786.9 million . The Board had declared an interim single tier dividend of RM282.3 million or 16 sen per ordinary share for 2019, of which, approximately 63% or RM177.8 million was distributed as cash dividend. The remaining 37% amounting to RM104.4 million was distributed via the Dividend Reinvestment Plan (“DRP”) as opted by shareholders at RM3.68 per share. A total of 28,381,100 new ordinary shares were issued under the DRP. PRIORITIES THAT DRIVE PURPOSE FOR PROGRESS We are guided by five key PRIORITIES – Responsible Finance, Inclusive Growth, Talent Enrichment, Ethical Practice and Reporting, and Islamic Finance and Knowledge-Sharing . These priorities drive our purpose to build a sustainable, profitable and progressive business, and realise value for our stakeholders. These key priorities shape the strategies undertaken by our subsidiaries, and align our efforts to reflect our triple bottom line focus on people, planet and prosperity by catalysing positive economic, social and environmental outcomes for all our stakeholders. As guided by these priorities, we took further steps in 2019 to strengthen our digital transformation capabilities. We looked at harnessing digital technologies that can deliver Shariah solutions and excellence to our customers and support the needs of our communities in fulfilling our social responsibility. The ongoing digital transformation initiative will continue to be an important building block towards long-term business sustainability. We have also put in place efforts to elevate customers’ experience with our businesses through initiatives that seeks to deliver relevant responsible and innovative financial programmes to suit their needs, deliver better accessibility, improve operational efficiency and increase productivity. +15.7 % +12.5 % GROUP RETURN ON EQUITY NET ASSET PER SHARE RM3.34 51 BIMB HOLDINGS BERHAD 199701008362 (423858-X) Shareholders’ Information Financial Statements Additional Information Disclosure Summary