17 Business Operations Review

8/6/2019 17 Business Operations Review

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BuSINeSS

operati ns Review

r tail BankingRetail Bankings strategy has been

ocusing on loans growth in viableproduct segments whilst maintainingattention to enlarge the deposit baseparticularly low-cost deposits. Whilstdynamically ocusing on volume versusprice trade o s, business growth was

ounded on continuous improvement tocustomer service excellence, expansiono distribution ootprints and increasedsales productivity, underpinned byproactive risk management, credit andasset quality management and improvinge eciencies.

B sin ss Banking The Business Bankings growth agendawas centred on building sustainableasset base whilst proactively managingexisting accounts to mitigate higherrisk o de ault. Growth was targetedtowards high-growth industry segments,with greater diversi cation into securingnon-interest income, by building a nity

and business rapport. Focus wasgeared towards nancing or small andmedium enterprises, deposits, trade andcash management services, orex andremittance, transactional banking anddeposits.

Inv stm nt BankingIn spite o so tening equity and capitalmarkets last year, Investment Bankingcontinued to harness businessopportunities in the market by maintainingstrong relationships with key clientelewhilst repositioning its strategy to ace

market downturn. Main revenue streamsoriginated rom unds management andcorporate nance, with capital markets andbroking division providing contributions inearly FY 2009.

r lati nshi Banking Andr gi nal B sin ss

The Relationship Banking and RegionalBusiness was uniquely segmented inFY 2009 with the aspiration to deepenand expand corporate and institutionalrelationships to garner larger leads or

nancing and advisory businesses. Themove to create this new business segmentalso provides greater specialisation inmanaging international businesses andasset (REITs) management.

Ma k ts B sin ss The Markets business (primarily treasuryand other und-based activities) weretrans erred rom AmInvestment BankBerhad to AmBank (M) Berhad and

AmIslamic Bank Berhad in the course o the nancial year. In light o challengingmarket conditions, Markets divisionhas stepped up its risk ramework andexecution. Focus was on reducingvolatile exposures and diversi yingrevenues. With the technical expertise o

ANZ, the orex, interest rate derivativesand commodities business unit wassuccess ully established.

Islamic BankingIslamic Banking lived up to its aspirationto become an Islamic bank o choiceby ensuring high degree o value to itscustomers and stakeholders. Duringthe nancial year, its pro ts, loans anddeposits recorded notable growth, withasset quality and cost e ciency ratiosmaintained at healthy levels. The growth

was characterised by expansion o product and business alliances and strongretail segment.

Ins anc The tactical plan in FY 2009 revolvedon diversi cation into bancassurancebusiness, with various innovative bundledinsurance products being launched. Inaddition, we have improved the e ciencyo our agency orce, marketing channelsand branches, as well as the back-endoperating plat orm. At the strategic level,the segregation o composite license

between li e and general insurance wasconcluded to extract greater synergies

rom our business partners.

Moving into the ensuing nancial year Strength in the ace o adversity pillared

by the sturdy execution o strategies on income diversifcation, risk management and cost management enhancement, will be the core operating theme, optimising AmBank Groups position or the economic recovery in the oreseeable uture.

reTAIL BANKING The Retail Banking division maintained itskey business strategies o growing assetsin pre erred segments which provide

or long term viability and pro tabilityand increasing ocus on deposit-taking businesses. Business units werecontinuously reinvented and expandedwhere easible to ensure customer needsare ul lled and a strong relationshipproposition is delivered, and to improvethe Groups long-term pro tability.

With the combined expertise o ANZsresources and our intimate marketknowledge, the ocus within the businesshas been to improve all aspects ranging

rom product development, rontlineservices and processing e ciency.

ANZs international exposure and bestpractices have been leveraged uponin the areas o strategic development,

nancial management, risk management,distribution channel management andservices innovation.

G wth And p mancFor FY 2009, the Retail Bankings pro ta ter tax improved by 13.0% year onyear, mainly driven by improved revenueo RM40mil (2.0%) and improved assetquality (lower provisions by 28.0%). Netlending grew 3.0% and total retail depositgrowth was recorded at 15.0% (retail low-cost deposits being 9.0%). Additionally,

xed deposits saw an accelerated growtho 16.0% due to the clear avourableinterest rate.

In FY 2009, Retail Banking was once again

the largest contributor to the Groupspre-tax pro ts accounting or RM820.8mil.

Auto nancing and mortgage loanscontributed approximately two thirds o total Retail revenue. Net non-per ormingloan ratios urther improved to 3.1%(previous nancial year at 3.2%) due tostronger credit risk management, creditscoring, collections and recoveriesmanagement.

Retail Bankings customer depositsincrease o RM4.9 billion rom theprevious year was largely contributed by

success ul deposit garnering campaigns,introduction o new segment-based andrepackaged products (including bundlingand cross-selling to the AmBank Groupscustomer base), ocus on salary crediting

acility and acquisition o main bankcustomer relationships. All these deposit

AmBank Groups solid momentum growth in nancial year ended 31 March 2009 refects thefawless execution o well-cra ted strategies. We have delivered commendable pro t growth over

our quarters o FY 2009 against the background o deteriorating global, regional and domestic

market per ormance, and intense banking industry competition.


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Ma k t p siti n & F c s p d cts & S vic s Dist ib ti n Chann l M di m T m As i ati ns

Sali nt HighlightsFY 2009

DepoSITS AND CuSToMer SoLuTIoNS

Overall ranked sixth positionin terms o total bank widedeposits (amongst local banks).

Grow low cost deposits base. Enhance product suite. Acquire new main bank

customers. Stronger ocus on corporate

deposits acquisition, especiallyoperating accounts, by segment

ocused deposits sales. Focus on acquiring more salary

crediting accounts to SMEsthrough our payroll services e-AmBiz and Autopay.

D sits (C nv nti nal andIslamic) d cts:

T ansacti nal D sitsSavings Basic Savings Basic Savings-i AmGenius Savers G.a.n.g Savers G.a.n.g-i Family First Special Savings

AccountCurrent Account Basic Current Account Basic Current Account-i AmStar AmStar Extreme Family First Everyday Account

Inv stm nt D sitsFixed Deposits (FD) Conventional FD Mega FD Am50 Plus Interest Plus AmQuantum Investment

187 branches nationwide Dedicated deposit sales

desk and team at eachRegional O ce.

Total o 611 ATMs nationwide(including those located at7-Eleven stores).

Continued strong relationshipmanagement with Governmentbodies and key corporateclients.

Grow low cost deposits to20.0% o total deposits.

Reduce cost o unds. Reduce customer attrition

and dormancy throughactive customer relationshipmanagement initiatives.

Build Top Rate as a brandidentity or Fixed Deposit toensure top o mind recall bycustomers.

Launched all-in-one Family Firstnancial solution which o ers

a ull suite o products andservices to meet every aspecto a amilys nancial needs.

Relaunched and rebranded AmStar and AmStar Extremeaccount. AmStar Extreme( ormerly known as e-AmStar)is an innovative deposit accountaimed at providing greatconvenience and cost savings.

Enhanced Salary CreditingFacility to AutoPay-WIN a Windows-based programme.It is a no ril ls, user- riendlysalary crediting acility. It givescustomers the convenienceo monthly salary crediting,and cash handling withimproved security.

Embarked on trans ormationinitiatives to improve services(e.g. improved account openingturnaround time, o site accountopening process).

Launched the Treasure Questcampaign to garner deposits.

AuTo FINANCING Premier auto nancier with

21.0% market share (based onpurchase o passenger cars asat 31 March 2009).

Maintain product pro tability. Focus on AmBanks accredit ed

dealers via Dealer ManagementProgramme.

Conventional auto nancing. Islamic auto nancing. Conventional re nancing

schemes. Floor plan/foor stocking

or dealers. Step-up repayment schemes. Interest subsidy scheme. Zero interest. Floating rate auto nancing. Balloon repayment scheme. KPUB nancing scheme.

18 auto nancing businesscentres and 21 hybrid branchesnationwide.

Strategic alliances with majorranchise holders and vehicle

companies in Malaysia. Relationships with more than

4,000 authorised dealersnationwide.

To achieve ROE o double digit. Maintain the premier position

as the pre erred auto nancierin terms o passenger vehicles.

Won the prestigious 2008 Frost& Sullivan ASEAN Automotive

Award (Automotive FinanceCompany o the Year Malaysia)held on 26 June 2008.

MorTGAGe

6th largest nancier o housingloans amongst local banks,with 5.9% market share.

Focus on mid to mid-high endproperty segments.

AmBank home loan & propertyloan choice o term loanor combination o term loanand overdra t with fexible andmanageable repayment terms.

AmBank HomeLink &PropertyLink combines a termloan with current account to helpsave on loan interest.

Family First Home Solutions Peace o mind with 5-year

xed rate. A similar Shariah-compliant programme iso ered by AmIslamic Bank.

AmIslamic Bank Home Financing Shariah-compliant productswith options o xed or fexirates.

Direct sales teams based across8 regional business centres inmajor cities nationwide.

187 branches nationwide withconsumer lending specialistsand personal bankers.

Strategic alliances with majordevelopers on propertylaunches.

To be best-in-class and beamongst top 5.

Achieve Making MortgagesSimple. Deliver good customerexperiences by streamliningkey processes to improve sta productivity.

Expanded Direct Sales Teamsnationwide and put strongeremphasis on branch sales.

Embarked on trans ormationinitiatives to simpli y products,services and processes.

Implemented risk-based pricingmodel to urther emphasised onimportance o loan quality andpro tability.

CreDIT CArDS

7th largest credit card nancierwith 7.7% market share.

To increase product-holdingratio across AmBank andbe card o choice to ourtargeted segments.

To be one o the leadingEPP acquirers.

Conventional credit cards(classic, gold, platinum).

Islamic credit cards(classic, gold, platinum).

Co-branded cards: RealRewardsGold MasterCard; Visa SamsungImagine Visa Card; eCoswayPlatinum & Gold MasterCardcards.

Specialty cards: FIFA WorldCup Cards; True Visa Card.

Corp: Business PlatinumMasterCard.

Direct sales (in-house) AmBank branches nationwide Outsourced vendors Outbound telemarketing

To improve revenue andpro tability and be amongstthe best.

Launched Malaysias rstNo Frills Card True Visa whicho ers low interest o 12.0% p.a.and ee based optional eatures.

Available in both conventional& Islamic.

Launched co-branded creditcard with eCosway.

Added Gold RealRewardsMasterCard to the amily.

Introduced Hilton 1- or-1 diningprivileges and Plaza PremiumLounge into AmBank Platinumcard.

Associate sponsor or 11thPhilips Astro Masters 2008.

Launched two Balance Trans er/ QuickCash campaigns broughtin more than RM200mil

receivables. Introduced I am Me newsletter bursting with reviewo latest ladies must-haves andprivilege o ers.

Won an award or AmBankBusiness Platinum Card inthe Best Business Programmecategory rom MasterCardWorldwide.


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Ma k t p siti n & F c s p d cts & S vic s Dist ib ti n Chann l M di m T m As i ati ns

Sali nt HighlightsFY 2009

prepAID CArDS

Largest prepaid card issuerin the market.

NexG prepaid cards andco-branded cards CathayCineplexes, iTalk, Smartlink,eCosway etc.

Collectible - cards leveragingon priced properties like FIFAWorld Cup and UEFA .

On-line registration via EDC. Card available balance on

sales slip.

Direct marketing sales personnel. AmBank branches nationwide. More than 5,000 reload locations

with ePay mainly at shoppingcomplexes.

Potentially more than 400 outletso 7-Eleven in Klang Valley andPOS Malaysia nationwide.

To improve revenue andpro tability.

Expanded retail sales channelto include Pos Malaysia overand above existing distributionchannels.

Rolled out real-time on-lineregistration at EDC terminals.

Rolled out card available balanceon sales slips.

Cash reload convenienceat numerous locations,including at convenientstores that operate 24/7.

Aggressively expanding prepaidcard applications to coverremittance, payroll and travel.

ASSeT FINANCING AND SMALL BuSINeSS

To meet the nancial needs o small and medium enterprisesby providing a comprehensiverange o nancial packages.

To increase our presencein commercial lending toBumiputera companies underBumiputera Development unit.

To intensi y our participationin BNM unded loans/CGCguaranteed loans.

To promote micro nancingunder AmMikro unit.

Industrial HP Asset re nancing Overdra t Term loan Commercial property loan Trade nancing Bank guarantee Block discounting CGC guaranteed loans BNM unded loans Micro credit nancing

Marketing O cers based ineight regional hubs and desksnationwide.

187 branches nationwide. Re errals rom suppliers and

business associates. Strategic marketing tie-up with

established manu acturers/ distributors or micro nancing.

To set best in class industrystandards or equipment

nancing and to be a topsupporter o CGC guaranteedloans.

Continuous productdevelopment and innovation.

Unsecured overdra t acility to AmBank Platinum car dealers,a structured lending programmeo ered to AmBanks paneldealers.

Tie-up with Arab MalaysianCredit Berhad to promoteindustrial hire purchase (IHP)re nancing.

Expanded distribution o AmMikro through nationwidebranch network.

perSoNAL FINANCING

Third largest nancier with8.0% market share.

Focus on government, semi-government agencies, RoyalMalaysian Police & governmentlinked companies employees.

Personal Financing based onSyariah concept o Bai-Al-Inah.

Direct marketing sales o cersplaced at all major townsnationwide.

AmBank branches nationwide Strategic alliances with

participating business partners. Third party distribution channels.

To make AmBank the pre erredgovernment servant personal

nancing bank by enlargingthe government servantcustomers database.

18.0% growth in gross loansor FY 2009

Excellent asset quality o port olio with minimal NPLs.

reTAIL DISTrIBuTIoN

A ter opening more branchesin FY 2009, AmBank now has187 branches and has moved

rom sixth position to ourthposition in total number o branches nationwide.

AmBank moved to third place interms ATMs available within theMEPS network.

Collaboration between AmBankand 7-Eleven will see an overallincrease o 400 ATMs in7-Eleven stores nationwide.

Launch o Family First an all-in-one nancial solution

or the mass consumer marketwhich eatures a cash fowmanagement solution designedto help amilies manage their

nances with access to a rangeo tools, resources and services.

Launch o new AmStar and AmStar Extreme account withone o the most convenientcustomer propositions in themarket in terms o access toelectronic banking channels.

The partnership between AmBank and 7-Eleven hasseen an increase in the numbero ATM installations. To date,

AmBank has more than 200 ATMs at selected 7-Elevenstores nationwide with a total o 611 ATMs nationwide.

More than 20 Electronic BankingCentres were established indi erent regions nationwide

New branches were openedin Pandan Indah, Jalan KlangLama, Bandar Bukit TinggiKlang, Bandar Mahkota Cherasand Bandar Menjalara; and twoSales and Service Kiosks inKuching, Sarawak; The Springand Boulevard Shopping Mall.

Improvements were recentlymade to the look and eel o theonline banking system whichwas also upgraded to a newplat orm. These changes havestimulated a 55.0% growth in thenumber o customer sign ups.

A new mobile phone bankingplat orm has been designedand is in pilot phase with liveimplementation scheduled orearly FY 2010.

The Sales Force Strategy project

was initiated in view o creatinga specialised work orce to ocussolely on Consumer Lending,Wealth and Small Business.Upon completion, AmBank willhave signi cantly increased thenumber o rontline revenuegenerating sta rom historicallevels.

In view o trans orming ourbranch business rom a serviceculture to sales and serviceculture, AmAzing Way sales andsales leadership program wasdesigned to equip customer-

acing sta with various essentialskill sets. The key objective o the AmAzing Way is to improveneeds based selling and cross-selling abilities.

AmBank Contact Centrebagged the Gold Award or Best

Telemarketer and Best MysteryShopper or Telemarketing on10 October 2008 at the9th CCAM Annual ContactCentre Awards.

Branch sales productivity hasimproved signi cantly romhistorical levels and continueson an upward trajectory.

A pilot Electronic Banking Centremodel was set-up in Jalan RajaChulan Branch in December2008 with the objective o projecting an image o prestige

or Sel Service Banking withthe latest technology installed.

Introduction o AmLink Re erralsystem in November 2008,allowing AmBank Group sta to participate in Lead Generatingprogramme. This will help toincrease the customer base inbranches, thus increasing newsales opportunities.

AmStar Extreme account,o cially launched in December2008 with the aim o providingextreme convenience to

AmBank customers.


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initiatives combined o er a broad range o solutions that cater to di erent customersegments and li ecycle stage.

Highlights And Achi v m ntsRetail Banking counts, amongst its majorhighlights or FY 2009, the launch o itsFamily First Solution in September 2008.

Aligned to its customer segmentationocus, this is an innovative nancial

solution designed to aid growingMalaysian amilies in nancial planning. Itencapsulates a holistic suite o nancialproducts and services to meet consumersdynamic needs, coupled with website,tools and resources akin to savings andbudget planner to help amilies bettermanage nances. Family First aims toplace AmBank brand as a amily-orientedbank that cares or the well-being o theaverage Malaysian amily, especially incurrent times o nancial uncertainties.

As testament to its commitment indelivering best-in-class products andservices, Retail Banking garnered the

ollowing awards and accolades duringthe course o the nancial year:

Best Business Platinum Programme atMasterCard Asia/Paci c Middle Eastand A rica Awards 2008;

Gold Award or Best Contact Centre Telemarketer (Individual Category)and Special Excellence Award orBest Mystery Shopper Results or

Telemarketing Contact Centre at the

Ninth CCAM Annual Contact Centre Awards 2008; and

Automotive Finance Company o the Year (Malaysia) Award at the 2008 Frost& Sullivan ASEAN Automotive Awardsin June 2008.

Throughout FY 2009, Retail Banking hassuccess ully rolled out regional roadshowsto educate employees nationwideon AmBank Groups medium termaspirations (MTA) and Retail Bankingsagenda to contribute to the achievement

o the goals. In addition, the regional

roadshows accorded the avenue or sta rom di erent o ces to meet and interact.

Earlier this year, Retail Banking launchedthe AmHorizon programme to drive thebusiness change and trans ormationacross all business and operating

unctions, in the spirit o urther awakeningsta awareness and commitment towardsattaining the objectives o the MTA.

K y S cc ss Fact s Trends in todays retail banking marketprovide evidence that Malaysianconsumers are becoming moresophisticated and discerning in theirbanking needs. Likewise, servicedelivery expectations have moved rom atraditional over the counter service modelto a 24-hour, seven day a week business.

This necessarily means that our customerservice sta and transaction servicesneed to be accessible through a varietyo channels on an increasingly expandedbasis with consistent service delivery atall touch points. To meet and exceed thegrowing expectations o our customers,Retail Banking division has made materialinvestments in people, in rastructure,and systems, and is in the initial stage o a signi cant investment to enhance theRetail Bankings core system.

One critical success actor or the RetailBanking division is attributable to our abilityto connect with our customers throughan expanded branch and ATM ootprint,a larger and more highly skilled sales

orce and convenient and simple to use

distribution channels. Innovative products,compelling campaigns, continuousprocess improvements and technologyinvestments have been made on anongoing basis to exceed the expectationso our growing customer base.

Our branch network has expanded to187 points o representation and we arenow ranked ourth nationwide ( rom sixthonly one year ago) in terms o number o branches. Likewise, a partnership uniquein nature between AmBank and 7Elevenconvenience stores adds signi cantly to

our many existing avenues and contactpoints or customer service transactions.In this area, now with more than 611

ATMs, AmBank has similarly moved romsixth position to third position nationallyin terms o the number o ATMs available

or our customers. Branches, sel -serviceterminals, call centre and e-channelsare continuously being expanded andenhanced to provide extended reach,improve sales and elevate the quality o customer interaction and servicing.

Coupled with these investments in

in rastructure we have also madesigni cant progress in equipping oursta with leading edge training to enrichtheir skill-set levels in their respective job

unctions. With the current emphasison superior service and ul llment o customer needs, ront-end sta are

continuously trained in various essentialsales skills ocused on leadership anddiagnostic sales methodologies. Thistraining is designed to ensure our sta

rstly understand and then meet theneeds o existing and potential customersmore e ectively.

In line with business growth, a structuredrisk management ramework has beendesigned and built to dynamically supportthe end-to-end product and servicedelivery to the customer, whilst sustainingan acceptable quality port olio o assets.Risk-based scoring has been automatedand the retail collection unit has been

ully centralised over the years, or allretail products. These e orts have alsoextended to improving our collections

unctions and port olio risk managementactivities, which in turn have assistedour customers to manage their nancialsituations more e ectively.

The Retail Banking enhancementsemphasise the importance we placeon best practice, product and servicedelivery to our customers. Retail Bankingis relentless in continuing with itsinitiatives on product innovation, serviceexcellence, channel enhancement,operations optimisation and humancapital development. They ultimatelyresult in a win or the customer, a win

or our sta and a win or AmBank andour stakeholders.

r tail Banking As i ati ns

We will continue to establish and growRetail Banking products and servicesin targeted areas o pro tability or thecoming year. Our ocus is to grow ourbusiness in identi ed and selectedsegments o the market where we canestablish sustainable and superior levelso pro tability and to support the Groupkey priority to grow deposits base. Thiswill be achieved via delivering customervalue propositions centering around thethemes o riendliness, simplicity andconvenience.

For nancial year ending 31 March 2010(FY 2010), Retail Bankings summary keystrategic agenda are to: ocus target market and port olio base

by product, with special emphasis ondeposits;

streamline distribution channels orproductivity and e ciency;

strengthen risk and sustain port oliohealth;

enhance customer service levels; and continue to build operational

in rastructure or e ciency and capacity.

Whilst we are currently operating in toughernancial environment, Retail Banking isever ready to engage scalable growthahead to harness opportunities rom theeventual economic upturn. Retail Bankingis poised to be amongst the best.


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BuSINeSS BANKINGBusiness Banking has been able toachieve good growth in its port olioamidst adverse changes in the operatingenvironment in FY 2009. Gross loan andadvances grew by 19.5% year-on-yearsupported by a healthy growth in Islamic

nancing (32.0%).

The increase in the loan base has invariablycontributed to a growth in total income by42.0%. The collaboration with the Australiaand New Zealand Banking Group (ANZ)has yielded positive results as we witnessan increase in cross-border trade andother cross-sell activities, culminating in

ee income growth o 40.0% in this areaalone. On the trade ront, revenues havegrown by 37.0% and the trade book sizeby 12.0%. This is despite general overallmarket decline in exports and imports.

As part o our regional expansion strategy,

our business centres in the SouthernRegion have been bolstered with moremarketing personnel. Business Bankinghas our regional business centres andtwelve commercial business centresthat are strategically located across thecountry. At this end, we witnessed animproved regional per ormance by 20.0%in loans growth.

Focus on the SME segment has beenanother strategy employed by the division.

As at the end o the nancial year, SMEloans contributed more than 40.0% o the

Business Banking port olio and this hasincreased our market share to 6.0%.

Emphasis was also placed on improvingthe risk management o our port olio wheree ort was spent on strengthening thecredit assessment process and ne tuningthe risk grading model. This has helped toimprove the quality o our asset port olio.

In addition, the upgrade o tradeprocessing capabilities is underway tomove into a new trade system. This newtrade system will enable AmBank to moveahead more quickly and with morefexibility in managing uture challengesvia improved processing e ciencies to bederived rom the system.

Moving orward, the division expectsa more challenging operating environmentin view o the global and domestic nancialcrisis. Our ocus will be on managingthe existing customer base and buildinga sustainable asset base. E orts are beingmade to closely monitor our customersper ormance and to have more regularcommunication with the customers toenable us to respond to their requestsand react to market changes swi tly.

Cash Manag m nt AndT ansacti nal Banking

Towards mid 2008, it was apparent thatthe impact o the nancial crisis in theUS was no longer con ned to the USand Europe. With the global economicslowdown, the demand or our countrysexports declined resulting in a cut backin production volumes. Companies were

orced into managing their overall coststo ensure business sustainability andthey urther have to bear the burden o sourcing or unds with the tightening o credit in the market.

Despite these challenging times, AmBankscash management division was still ableto double its customer base and achievea revenue growth o 91.0%.

The division expects urther growth inthe next nancial year as more and morecorporates seek cash management

services in their quest to achieve costreduction through process automation.Corporates are also resorting to cashmanagement solutions to help improvetheir unds management through better

orecasting o their cash fow requirements

in their daily management o salesturnover.

AmBanks cash management solutiono ering is now extended to include oreigncurrency payments via oreign currencydra ts or SWIFT wire. Other unctionalityenhancements also include the abilityto assist our corporate customers inper orming their account receivablesreconciliation via automated invoice levelmatching. In anticipation o the currentstate o the economy, the AmBankCash Management Solution Suite hasincorporated two new services, SupplierFinancing and Post Dated ChequeDiscounting, to ensure the sustainabilityo our customers businesses andassist them through the challengingeconomic times.

INVeSTMeNT BANKING The local capital market has not been

spared rom the global recession thatwas triggered by the nancial meltdownwhich began since August 2007. Therecessionary pressures continued into thebeginning o 2009, spearheaded by thesharp contraction in the Bursa turnover

Signifcant C at Financ T ansacti ns In 2008-2009

IOI Corporation Berhad Matrix International Bhd Sarawak Oil Palms Bhd PacificMas BerhadExchangeable Bond Issue

USD600 million

January 2008

Adviser &Senior Co-Lead Manager

Renounceable Two-CallRights issue

RM207.99 million

March 2008

Adviser

RenounceableRights Issue

RM1123 million

April 2008

Adviser

Take-Over Offer byOCBC Capital (Malaysia) Sdn Bhd

RM735.0 million

April 2008

Independent Adviser

MATRIXINTERNATIONAL BERHAD

Dayang Enterprise HoldingsBerhad

Luxchem Corporation Berhad Jati Cakerawala Sdn BhdIPO Market Capitalisation:

RM510.4 million

April 2008

Adviser, ManagingUnderwriter & Placement Agent

IPO Market Capitalisation:RM143.0 million

June 2008


Take-Over of Teknologi TenagaPerlis Consortium Sdn Bhd

RM448 million

June 2008

Adviser

Uzma Berhad

IPO Market Capitalisation:RM152.0 million

July 2008


Boustead Properties Berhad Ranhill Utilities Berhad IJM Land BerhadDRB-HICOM Berhad

Take-Over Exercise

RM584 million

August 2008

Independent Adviser

Take-Over Exercise

RM305.1 million

August 2008

Independent Adviser

Rights Issue withWarrants

RM306.82 million

September 2008

Adviser

Acquisition ofRangkai Positif Sdn Bhd

RM720.0 million

October 2008

Independent Adviser

Malaysian Bulk CarrierBerhad

Lion Diversified Holdings

Bhd

VADS Berhad

Cross-Border Acquisitions

USD221 million

December 2008

Adviser

Rights Issue of ICULS

RM327.46 million

December 2008

Adviser

Selective Capital Reductionand Repayment Exercise

RM413 million

February 2009

Independent Adviser

Ranhill Berhad

Proposed Disposal of WaterAssets and Corresponding

Liabilities

RM850 million

Pending Completion

Adviser


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volume during the entire second hal o the nancial year ended 31 March 2009(FY 2009). In the wake o a credit andliquidity crunch, investors quickly becameacutely risk-adverse. In response to thisshi t in investor appetite, most initial publico erings and bond issuance activitieswere put on hold.

In spite o the above challenges, wehave maintained our market share invirtually every sector o our engagementin the capital market. We also took theopportunity o ered by the lull in economicactivities to streamline our internalin rastructure to improve productivity andexpand our equity trading and distributionnetwork both domestically and regionallywhere nancially viable.

C at Financ The Corporate Finance division providesa ull spectrum o equity capital raising

and corporate advisory services. Widelyregarded as one o the leading CorporateFinance houses in Malaysia, weconsistently deliver innovative businessand nancial solutions which meetthe corporate, capital and investmentobjectives o our valued clients.

Through our detailed market and industryknowledge and experience, we are ableto analyse and structure transactionsto maximise the value and ultimateoutcome or our clients. We have in thepast structured and executed scores o

landmark deals in the market. We also havesigni cant experience in executing bothdomestic and cross-border transactionsin di cult market conditions and havedemonstrated our ability in providingbest-in-class solutions to complexassignments.

AmInvestment Bank (the Bank)operated in a more challengingoperating environment during the yearwith uncertainties in market conditions.However, our experience and capabilityin structuring and executing proli cand demanding transactions, and ourcapability to distribute equity and equity-linked issues o various sizes and romvarious sectors, have helped deliver strongmarket share in some key products.

The Bank maintained its leadershipposition in the Initial Public O erings(IPOs) in Malaysia, where wesuccess ully advised and listed our outo 13 companies during the year. Weraised more than RM400 million in unds,accounting or 41.0% o the market shareo IPOs in Malaysia. We also led the marketin terms o the number o issues advisedin the equity and equity-linked marketwith a market share o 23.0% duringthe period.

As a testament o our strengths in thecapital markets, AmInvestment Bank wasaccorded the ollowing industry accolades:

B st p ivatisati n D al th Y ain S th ast Asia at Alpha Southeast

Asias Second Annual Deal/Solution Awards 2008 as the Principal Adviserand Leader Arranger or the RM2.4 billionPrivatisation o AmInvestment GroupBerhad and RM1.0 billion RenounceableRights Issue.

T 4 Asian Inv stm nt Bank Asia ex-Ja an M&A D als 2008 award by the Malaysian InvestmentBanking Association (MIBA) and ThePinnacle Group International Pte Ltdin recognition o the number o AsianM&A deals achieved in the rst quartero 2008 based on the ThompsonFinancial League Tables.

We also advised TIME dotCom Berhadin its RM654.5 million deal with cellularprovider Digi.Com Berhad, which won theInn vativ D al th Y a award bythe Malaysian Mergers and Acquisitions

Association.

Some o our prominent deals include:

Adviser to IOI CorporationBerhad (IOI Corp) in thevoluntary take-over o ero IOI Properties Berhad(IOI Prop). The voluntary

o er was undertaken withthe intention o providingIOI Corp with greater liberty toplan and decide on the uturebusiness direction o IOI Prop,improve operating synergieswithin the IOI Group via theconsolidation o plantationand property businesses heldunder the IOI Group as well asto enable IOI Prop to leverageon the much stronger nancialresources o IOI Corp tosatis y its substantial undingrequirement in respect o on-going projects.

Adviser to Lion CorporationBerhad (LCB) and AmsteelCorporation Berhad (ACB)on their corporate anddebt restructuring. Theprincipal concept o the debtrestructuring was to match theprojected available cash fowso ACB/LCB to redemption/ repayment obligations whichwere acceptable to the lenderso ACB/LCB. In conjunctionwith the above, an assetdivestment programme wasinstituted to monetise theassets o ACB.

Adviser to TIME dotComBerhad (TdC) on thestrategic business alliancebetween TdC and Digi.ComBerhad (DiGi). This win-windeal enabled DiGi to acquire

TdCs third generation (3G)spectrum whilst allowing

TdC to hold a strategic stakein DiGi and capitalise on

DiGis s trength and experiencein the telecommunicationsindustry. This deal was namedthe most innovative dealunder the Malaysian Mergers& Acquisitions Associationawards.

Adviser to a consortium o Middle Eastern and Malaysianinvestors known as Abu Dhabi-Kuwait-Malaysia InvestmentCorporation (ADKM) andUBG Berhad (UBG) on thestrategic entry o ADKM into

the Malaysian constructionsector. The completion o thescheme trans ormed UBG

rom a cash rich shell into aconstruction group with two(2) listed entities PutrajayaPerdana Berhad and Loh &Loh Corporation Berhad under its wing with the bene to two (2) strong shareholders,namely Cahya Mata SarawakBhd and Majestic MasterpieceSdn Bhd coming together.

The deal refects the growinginterest o West Asian investorsin Malaysia and is a vote o con dence in the Malaysianeconomy.

Adviser to AmInvestmentGroup Berhad (AIGB) or theprivatisation o AIGB by AMMBHoldings Berhad via a schemeo arrangement and capitalreduction exercise. AIGBwas valued at RM4.5 billion,representing 15.6% premiumto AIGBs market value priorto announcement, 8.8%premium over ve (5)-dayvolume weighted averageprice prior to announcementand 164.3% premium over theinitial public o ering price.

Adviser to Eastern & OrientalBerhad (E&O) involvinga members scheme o arrangement to streamlineE&O and E&O Property Berhad(E&O Property) into a singlelisted entity. Creative options,namely ull share swap,

xed combination optionand maximised cash option,were provided to the minority

shareholders o E&O Propertyto serve their varied investmentobjectives.

IOI Corporation Berhad

Voluntary Take-Over Offer ofIOI Properties Berhad

RM518.9 million

April 2009

Adviser

Lion Corporation BerhadAmsteel Corporation Berhad

Corporate and DebtRestructuring

RM1.9 billion

February 2009

Adviser

Abu Dhabi-Kuwait-MalaysiaInvestment Corporation and

UBG Berhad

Strategic Entry into MalaysianConstruction Sector

RM1.57 billion

September 2008

Adviser

AmInvestment Group Berhad

Privatisation of AmInvestmentGroup Berhad

RM2.4 billion

January 2008

Adviser

Eastern & Oriental Berhad

Scheme of Arrangement

RM608 million

July 2008

Adviser

TIME dotCom Berhad

Strategic Alliance withDiGi.Com Berhad and

Transfer of 3G Spectrum

RM654.5 million

May 2008

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Adviser, Managing Underwriterand Placement Agent toSealink International Berhad(Sealink) on its IPO. Sealink,a major integrated serviceprovider in both shipbuildingand chartering services, waslisted in July 2008. It was oneo the biggest public o eringsin 2008. The IPO had a price-

to-earnings per share o 12.5times and was oversubscribedamidst heightened uncertaintyin the capital marketsand un avourable marketconditions.

Going orward, we expect to remaina leading provider o corporate nance andadvisory services by capitalising on ourstrength as an innovative advisory partnerand track record o superior executionwith distribution capabilities.

With the rapid evolvement o the capitalmarkets and the requirements o our clients,we will continue to proactively monitormarket trends and embrace opportunitiesto urther enhance the development o the Malaysian capital markets and also

ul ll our primary objective o providingoutstanding client service.

eq ity Ca ital Ma k ts The Equity Capital Markets unit overseesthe Banks distribution activities in theprimary equity and equity-linked markets. Itprovides market intelligence support in the

origination o primary market transactionsand manages structuring, syndication,marketing and distribution. In addition,it also provides underwriting services orboth IPOs and ollow-on equity und raisingexercises and secondary placement.

A success ul equity issuance/o ering isa unction o accurate pricing, e ectivedistribution and market awareness o an issuer/company. We help our clientsto achieve such success by leveragingour strengths in market intelligence,distribution network and requent

communication with the investmentcommunity. Our clients include corporatesand individuals rom Malaysia, Singaporeand Indonesia that seek access to theregional equity capital markets.

D bt Ca ital Ma k ts The Banks Debt Capital Markets teamprovides a wide range o innovative

nancing solutions via the MalaysianDebt Capital Markets and Islamic CapitalMarkets. With a proven track record inarranging Sukuk and Private Debt Securities(PDS) or project nancing, asset-backedsecuritisation and structured nancing, theteam has consistently placed the Bank asa ront-runner in the Bloomberg and Rating

Agency Malaysia (RAM) league tablesover the past 5 years.

The un olding global nancial crisispresented the Malaysian bond market withvarious challenges in 2008. Given risingcredit concerns, the local bond markethas seen total bond issuances beinglargely dominated by nancial institutionsand triple-A rated bonds. The totalamount o PDS issued in 2008 stands atRM48.6 billion which is 11.0% less thanthe total PDS issued in 2007.

Notwithstanding the challenging marketconditions in 2008 a, the Debt CapitalMarkets team completed 10 transactionsin 2008, raising over RM6.0 billion PDSacross a diversi ed port olio o debtinstruments and issuers catering to a widespectrum o industry sectors including

nancial services, in rastructure andutilities and transportation.

Our landmark transactions issued in 2008include the ollowing:

p n bangan Malaysia B hadIslamic Medium Term Notes Programmeo up to RM2.2 billion in Nominal ValueGuaranteed by the Federal Governmento Malaysia. This transaction is theinaugural Ringgit issuance by thenational airlines aircra t lessor andrepresents the rst GovernmentGuaranteed issue o 2009.

Sya ikat p asa ana N ga a B hadRM2.0 billion issuance o Nominal ValueGovernment-Guaranteed Sukuk Ijarah.

This transaction, a winner o AlphaSouth East Asias Best Islamic FinancingDeal o the Year in Southeast Asia 2008,represents one o the largest sukukissues in the Malaysian Debt CapitalMarkets in 2008 and serves to deepenthe market or Government GuaranteedIslamic Securities.

Al-Aqa Ca ital Sdn BhdUp to RM300.0 million Nominal ValueIslamic Commercial Papers (CP)/ Islamic Medium Term Notes (MTN)Programme. Winner o numerousawards including the Islamic FinanceNews or the Real Estate Deal o the

Year or 2008 and Most InnovativeDeal by Euromoney Islamic Finance

Awards 2008, this transaction sets thebenchmark or uture issues o Islamicsecurities by other REITs as well asspearheads the introduction o a newasset class in the Islamic Securitiesmarket in Malaysia.

pinnacl T w Sdn BhdIslamic Financing acilities comprisingan Islamic Medium Term NotesProgramme o up to RM400.0 millionand Islamic Commercial PapersProgramme o up to RM50.0 million.

This AAOIFI-compliant transaction

Adviser to YTL CorporationBerhad (YTL) on its cross-border acquisitions. YTLmade inroads into Singaporesreal estate sector with theacquisition o interests inStarhill Global Real EstateInvestment Trust ( ormerlyknown as Macquarie PrimeReal Estate Investment Trust)

(MP REIT) and Prime REITManagement Holdings Pte Ltdat a 49.0% discount to MPREITs net asset value per unit,17.0% premium over its 30-day volume weighted averageprice and premium o 52.0%over the last traded price priorto announcement. Apart romproviding stable earningsand good upside potential to

YTL, YTL would also be wellplaced to tap into Singaporesexpanding real estate sectorand promote the Starhill brandin the international market.

Adviser to PermodalanNasional Berhad (PNB) orthe privatisation o MalaysianIndustrial Development FinanceBerhad, a nancial institution,via a take-over o er. It ormedpart o the rationalisationexercise undertaken by PNBin re-engineering the listedentities under its stable. It wascompleted with one o thelowest price-to-net tangibleassets ratio amongst listedbanking institutions or thelast ve (5) years.

Adviser to AMMB HoldingsBerhad (AHB) in relation tothe rights issue undertaken by

AMMB in conjunction with theprivatisation o AIGB valued atRM4.5 billion. The privatisationwas part o a restructuringexercise or AHB to migrateto a universal bankingplat orm. The rights issuewas the second largest rightsissue undertaken in 2008.

Issuance by AmInvestmentBank Berhad o its rst ZeroStrike Call Warrants whichcomplements its existingleveraged call warrantsprogramme. The BerkshireZero Strike o ers local investorssimple and a ordable access tocounters which may otherwisebe expensive or di cult toaccess. Priced at RM1.00each, it is the rst such o ering

or investors in Asia.

Sealink International Berhad

IPO Market Capitalisation:RM625 million

July 2008

Adviser, Managing Underwriter& Placement Agen t

AMMB Holdings Berhad

Fund Raising

RM1.0 billion

January 2008

Adviser

Permodalan Nasional Berhad

Privatisation of MalaysianIndustrial Development Finance

Berhad

RM1.48 billion

October 2007

Adviser

YTL Corporation Berhad

Cross-Border Acquisitions

SGD264 million

December 2008

Adviser

Zero Strike Call Warrants overBerkshire Hathaway Inc.

Zero Strike Call Warrants

RM100 million

April 2009

Issuer


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Putrajaya Holdings Sdn Bhd

Sukuk Musyarakah Medium TermNotes Programme of up to

RM1,500.0 Million

April 2009

Joint Principal Adviser/Joint LeadArranger/Joint Lead Manager

Khazanah Nasional Berhad

RM10.0 Billion

Multi-Currency Islamic SecuritiesProgramme through

Danga Capital Berhad

April 2009

Joint Principal Adviser/ Joint Lead Arranger

Penerbangan Malaysia Berhad

RM2,200 Billion

Islamic Medium Term NotesProgramme Guaranteed by the

Government of Malaysia

March 2009

Joint Principal Adviser andJoint Lead Arranger

Cagamas Berhad

RM2,070.0 Million

Conventional and IslamicMedium Term Notes Issuance

March 2009

Joint Lead Manager/ Joint Bookrunner

RM400.0 Million Islamic MediumTerm Notes Programme andRM50.0 Million Commercial

Papers Programme

March 2009

Joint Principal Adviser/ Joint Lead Arranger/ Joint Lead Manager

Pinnacle Tower Sdn Bhd


RM2,000.0 Million

Placement under RM10.0 BillionSukuk Musyarakah Facility

August 2008

Joint Primary Subscriber

Syarikat Prasarana Negara

Berhad

RM2,000.0 Million

Government GuaranteedSukuk Ijarah

May 2008

Joint Principal Adviser/ Joint Lead Arranger/

Joint Lead Manager/Joint Bookrunner


RM1,000.0 Million

Placement under RM10.0 BillionSukuk Musyarakah Facility

July 2008

Primary Subscriber

RM400.0 Million

Medium Term Notes Programme

October 2008

Principal Adviser/Lead Arranger/ Lead Manager

Berjaya Infrastructure Sdn Bhd

RM2,035.0 Million

Conventional and IslamicMedium Term Notes Issuance

October 2008

Joint Lead Manager/ Joint Bookrunner

Cagamas Berhad

RM500.0 Million CP Programmeand RM1,000.0 Million MTNProgramme with aggregate

outstanding CPs and/or MTNsnot exceeding RM1,000.0 Million

April 2008

Joint Principal Adviser/ Joint Lead Arranger/ Joint Lead Manager

Sabah Development Bank

Berhad

Accolades And Awards AccordedIn 2008

IFR Asia Awards 2008Best Malaysia Capital MarketsDeal Binariang GSM Sdn Bhd

Alpha South East Asia Deal Awards 2008Best Islamic Financing Deal o the Year Syarikat PrasaranaNegara

Asiamoney Awards 2008Best Deal o the Year inMalaysia Binariang GSMSdn Bhd

Islamic Finance News Awards 2008Real Estate Deal o the Year Al-Aqar Capital Sdn Bhd

No. 3 on BloombergsUnderwriter League Table2008 or Malaysia DomesticBonds By Volume

No. 2 on BloombergsUnderwriter League Table2008 or Malaysian RinggitIslamic Bonds By Volume

No. 2 on RAM LeadManagers League Table2008 By Number o Issues

No. 2 on RAM Lead

Managers League Table2008 or Sukuk Issues By Number o Issues

No. 3 on RAM LeadManagers League Table2008 or Sukuk Issues By Issue Value

Blueprint Awards 2009New Real Estate BenchmarkDeal Al-Aqar Capital Sdn Bhd

Islamic Capital Markets The year 2008 had provided bothopportunities and challenges to the Islamiccapital markets sector. Global marketturmoil, recession worries and wideningcredit spreads all made their presence

elt in the domestic bond market and thesukuk market has not been spared romit. The local sukuk market had contractedmore than 70.0% in 2008 in terms o actual and prospective issuance value,contrary to the initial view that the industrywould remain largely insulated rom theslump. Notwithstanding, going orward,despite the bearish view on the economy,the Bank is optimistic on the Islamicfnance outlook given the strong support

rom the government to promote Malaysiaas an international Islamic fnancial hubadded by the overall projected spendingunder the budget and the fnancialstimulus package.

The Bank has always been in the leagueas a leading Islamic investment bankingsolutions provider in the local Islamiccapital market scene. The team comprisesdedicated and experienced pro essionalpersonnel which provides internal Shariahadvice to the Banks strategic businessunits on consultative basis rom timeto time. In addition, the team strives tomaintain the highest standards o Shariah-compliant procedures in our productsand services o erings within the industry.Whilst the development o sukuk hasslowed down in the overall market, there

have been potential new business linesto be tapped rom, such as, the Islamicprivate equity and trust unds.

A ter the launch o the MalaysiaInternational Islamic Financial Centre(MIFC) in August 2006, there havebeen many initiatives introduced to createa vibrant, innovative and competitiveinternational Islamic fnancial servicesindustry in Malaysia. In our e ort topromote the MIFC, the Bank had duringthe fnancial year participated in several

employs an innovative Islamic structurebased on the Shariah principleso Musyarakah with an underlyingIjarah transaction and supports thegovernments initiative to developmore internationally acceptable Islamicprinciples.

Cagamas BerhadIssuances o RM2,035 million under theRM20.0 billion Islamic/ConventionalCommercial Paper Programme andRM40.0 billion MTN Programme. Thistransaction, which included the issueo RM1.82 billion conventional MTNsand RM215.0 million Islamic MTNsrepresented the second largest issuemade by this prolifc issuer o bonds/ Islamic securities in 2008.

Sabah Development Bank BerhadRM500.0 million Nominal Value CPProgramme and RM1.0 billion Nominal

Value MTN Programme with theaggregate outstanding CPs and/orMTNs not exceeding RM1.0 billion inNominal Value. This transaction heraldsthe sole issue by a development fnancialinstitution in 2008 and represents oneo the ew issues by a Sabah issuer.

In the ace o the global fnancial crisis andeconomic downturn, the outlook o theDebt Capital Markets business in 2009remains stable, underscored by strongliquidity in the Malaysian fnancial systemo over RM250 billion coupled with high

national savings.

Total Ringgit debt o up to RM141 billion isexpected in 2009, comprising RM91 billionMalaysian Government Securities (MGS)/ Government Investment Issues (GII) andup to RM50 billion PDS. With the proposedestablishment o the Financial GuaranteeInstitution (FGI) under the secondStimulus Plan, we expect issuances in2009 to be dominated by FGI-backedbonds alongside triple-A rated bonds andgovernment-guaranteed bonds.

Signifcant DCM Transactions Completed In 2008 Q1 2009

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Outlook For The Islamic CapitalMarketIn the local ront, we expect that thesukuk issuance will be well supportedby the strong liquidity in the Malaysian

nancial system and also the impact romthe government pump-priming activities.Malaysia has the liquidity and size o market to remain a signi cant player in theglobal sukuk market. In addition, globalsukuk issuance or the next ew years isexpected to resume momentum oncesome semblance o normalcy returns tothe global nancial markets, uelled by themassive investment and nancing needso the Gul economies and emergingmarkets in Asian countries. In the short-term period, the impact o the global creditand liquidity crisis will still be seen althoughit might not be as severe as be ore.

Achievements League Tables

No.3 on RAM Lead

Managers League Table2008 (Islamic) Issue Value No.2 on RAM Lead

Managers League Table2008 (Islamic) Numbero Issues.

No.2 on BloombergsUnderwriter League Table2008 (Value o MalaysianRinggit Islamic Bonds)

Achievements Other Islamic Awards And Accolades

2nd Annual Deal Awardsof Alpha South East Asia

Best Islamic Financing Dealo the Year (Syarikat PrasaranaNegara Berhad RM2.0bSukuk Ijarah GovernmentGuaranteed)

IFR Asia Awards 2008 Malaysia Capital MarketDeal Award (Binariang GSMSdn Bhd RM15.35b SukukMusyarakah)

Islamic Finance News Deal Awards 2008 Real Estate Deal o the

Year (Al-Aqar Capital RM300m Sukuk Ijarah)

Asiamoney Deals of the Year Country Deal o the

Year- Malaysia (Binariang GSMSdn Bhd Sukuk Musyarakah)

Structured FinanceStructured Finance o ers alternativeand integrated undraising solutions.Whilst our clients bene t rom suchcomprehensive customised solutionswhich assist them in raising both equityand debt, they also get the opportunityto tap into our array o alternative

unding sources both in Malaysia andin the region. In a short span o less thanthree years, Structured Finance hassuccess ully undertaken and coordinatedthe ollowing strategic initiatives:

MIFC roadshows together with theregulators (i.e. the Securities Commission,Bank Negara Malaysia and MalaysianIndustrial Development Authority) andselected Islamic nancial institutions toPerth, Sydney, Kuwait and Saudi Arabia.

The Bank is aided by both our internalGroup Shariah Committee and ourhighly distinguished independent Shariah

Advisers who are world-renowned Islamicscholars and are well versed in bothlocal and global Shariah standards. TheBank continues to o er our existing andprospective clients a wide spectrum o innovative Shariah-compliant productsthat are closely aligned with their

nancing objectives.

For FY 2009, the Bank completed a totalo 4 Islamic transactions comprising sukukand syndicated deals which amounted toover RM4.8 billion in value. For the record,

in FY 2009, the sukuk transactions appliedvarious Shariah principles which includeMusyarakah, Ijarah and Murabahah tosatis y local and or some, internationalacceptance. Despite the contractionin the sukuk market and the toughereconomic conditions, we managed toplace ourselves among the top threeprimary market leaders with a marketshare o 6.8%.

Some o the Banks notable Islamictransactions during FY 2009 include the

ollowing:

Syarikat Prasarana Negara Bhd RM2.0 billion Sukuk IjarahGovernment GuaranteedJoint Principal Adviser and Joint Lead

Arranger or the above issuance. TheSukuk was oversubscribed by over 2.86 3.81 times on the 7-15 year tenuredespite uncertainties and volatility in thelocal and international bond markets.

Pinnacle Tower Sdn Bhd RM450.0million Islamic Commercial Papers/Islamic Medium Term NotesProgrammeJoint Principal Adviser and Joint Lead

Arranger or the above issuance. Thedeal has marked another innovation inthe Islamic capital market as the structurehas applied the Shariah principle o Musyarakah with an underlying Ijaraharrangement.

Penerbangan Malaysia Berhad RM2.2 billion MurabahahMedium Term Notes ProgrammeGovernment GuaranteedJoint Principal Adviser and Joint Lead

Arranger or the above Sukuk issuance.Being government guaranteed papers,this has been over subscribed by4.25 times and priced at 49 basis pointsabove the Malaysian GovernmentSecurities.

Advising and arranging mezzanineunding or companies undertaking

capital restructuring; Advising and arranging private equity

and debt unding or companiesundergoing business reorganisationand trans ormation;

Advising and arranging private equityinvestments or property developmentin Malaysia and Asian region;

Advising and arranging distressed retailand corporate loans disposal to specialpurpose unds; and

Advising and arranging bank capitalor ull-fedged and quasi nancial

institutions.

Our team is expected to continue to assistour clients in enhancing and tapping theirshareholder value whether or purposeso spearheading growth, leap rogginginto the regions or salvaging restructuredor distressed assets.

Equities Trading The period under review saw themeltdown o the nancial markets in theUS, triggering the economic and nancialcrisis on a global scale.

Against this economic environment, theKuala Lumpur Composite Index (KLCI)dropped by 375 points or about 30.0%to end at 873 points as at 31 March2009. Turnover on Bursa Malaysiadeclined sharply by about RM600 billionor 56.0% to RM470 billion or the period

corresponding to our nancial year ended31 March 2009.

This resulted in the stockbroking industryplayers struggling to break even. Ourmarket share o 8.2% was about thesame as the previous nancial year whilepretax pro t was reduced to RM18.7million against RM80.2 million o theprevious period.

In line with the Groups Medium Term Aspirations (MTA), continued e ortsare being made to increase the revenuebase and to manage operating costswithout sacri cing the quality and level o our services.

We have improved our equity derivativesproduct range and also enabled oursalespersons to cross-sell the wide rangeo nancial products o ered by the Group.

Continued investment in our researchdivision will remain our top priority as webelieve high quality research productsand services will underpin the successo our business.

We have extended the reach o ourservices to our institutional and retail clientsvia electronic trading and this will be anincreasing contribution to our business.


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During the year, the Bank establishedstockbroking services at its branchesin Penang, Kuching and Johor Bahruand this will ensure better geographicalcoverage and services to our clients.

All the above initiatives have strengthenedthe core o the equities division and willplace us on a strong position to ace thechallenging times ahead.

With the lower interest rates and economicstimulus packages introduced by theMalaysian government and many othercountries throughout the world, there aresigns o a possible economic recovery in2010 and this would be positive or theequities trading division in the coming

nancial year.

F t s B king The Kuala Lumpur Composite Index(FKLI) spot month contract decreased

in total volume traded between 2007 and2008 (2.2 million vs 2.1 million). The FKLIwas at the peak o a strong bull-run lastyear when the highest price registeredwas 1,536.0 be ore tumbling down to aslow as 803.5 when the global nancialcrisis started to bite towards the laterpart o the year.

Crude Palm Oil Futures third monthcontract (FCPO) on the other handsaw a 12.5% increase in volume to 1.8million contracts traded in 2008. The CPOcommodity was tracking the crude oil

prices that spiraled to more than USD140per barrel be ore tumbling down belowUSD40 later in the year, which was thereason the volatility or 2008 was higherthan the previous year.

On 5 September 2008, Bursa Malaysialaunched the USD Crude Palm OilFutures contract but the cash settledinstrument ailed mainly due to lacko liquidity. Market makers were non-existent and underlying participantsshunned away rom a contract witha large bid/o er spread.

Out o the 19 registered utures brokerswith Bursa Malaysia, AmFutures wasranked second and seventh or FKLIand FCPO respectively; we recordeda market share o 16.0% or FKLI and 5.0%

or FCPO. In December, we were the rstbroker to launch Direct Market Access(DMA) to our retail clients or BursaMalaysia products and we will continueto strive by o ering Speci ed ForeignFutures Exchanges products by the thirdquarter o 2009. Eventually, when Bursalaunches Equity DMA, we will combinethe plat orms and o er clients one login tomultiple global product groups.

eq ity D ivativ s AmInvestment Bank aims to be at the

ore ront o the equity derivatives marketin Malaysia. Our equity derivatives deskdevelops and issues instruments such aswarrants, structured products, exchange-traded unds, and over-the-counteroptions in order to provide investors with abroader range o investment instruments.

We launched our zero strike call warrantsprogramme in March 2009 with thesuccess ul o ering o RM100 millionBerkshire Zero Strikes (Berkshire ZS).

The Berkshire ZS, priced at RM1 each,gives investors simple and a ordableaccess to the per ormance o BerkshireHathaway Inc. shares. We are also proudto be advisers and market-makers orMalaysias rst two exchange traded unds(ETFs), the ABF2 and the FBM30et .

Additionally, we ocus on client solutions,customising equity-structured products

to meet speci c objectives o clientsor enhanced income, and nancing orprincipal protection.

In addition, our work on hybrid securitiesenables the Bank to meet the increasinglycomplex unding requirements o corporations. Noteworthy deals in 2008include our roles as Joint Lead Manager

or Khazanahs USD550 million PakaCapital Exchangeable Sukuk and SeniorCo-Lead Manager or IOIs USD600 millionExchangeable Bonds.

We are committed to increasing marketawareness through investor educationand market liquidity by establishing ourmarket making ranchise or listed andover-the-counter (OTC) products.

F nds Manag m nt The Funds Management Division (FMD)o ers unds management services ondomestic and regional equities, bonds andglobal sukuks. Our business philosophy isto be the pre erred investment solutionsprovider or our retail and institutionalclients.

The division is made up o threeentities; AmInvestment Services Bhd,

AmInvestment Management Sdn Bhd andour latest endeavour, AmIslamic FundsManagement Sdn. Bhd.

We ormalised two decades o in-houseIslamic unds management expertise intothis new institution in order to ocus anddevelop the business urther across Asiaand beyond. One notable e ort duringthe year was the launch o Malaysias rst

master/ eeder und structure (AmNamaa Asia Paci c Equity Growth based in USDand its eeder called Namaa Asia Paci cEquity Growth based in Ringgit) underthe purview o Malaysian Islamic FinanceCentre (MIFC).

Over the years, FMD has beenrecognised as the premier MalaysianBond Funds Management House andwe have received numerous accoladesas testament. We won or the secondtime, the Best Bond Group at theEdge-Lipper Funds Award 2009 ( orthe period ended 31 December 2008).In the same ceremony, AmDynamic Bondwon Best Bond Malaysian Ringgit und:3-Year category or the ourth consecutiveyear and the 5-Year category. AmBonIslam took the Best Bond MalaysianRinggit Islamic Fund: 3-Year categorytwice in a row. Failaka Islamic Fund

Awards acknowledged AmBon Islamas the best per orming Malaysia IslamicBond Fund (3-Years) recently.

During the 12 months to 31 December2008, which was an extremelychallenging period or nancial marketsworldwide, our o our fagship unds

were among the top ten unit trust undsin the industry. Topping that list was our AmDual Opportunities-Capital Protected,which recorded a one-year per ormanceo 16.0%. The other three unds in thelist were our bond exchange-traded-

und, ABF Malaysia Bond Index Fundwhich recorded a one year growth o 7.70%, ollowed by AmDynamic Bond o 6.44% and AmBond o 4.29%.

We are a leading private asset managerwith RM16 billion assets undermanagement as at 31 March 2009;

contributed equally rom both retail andinstitutional clients. We are ranked thesecond largest unit trust und managerwith a market share o 12.0%. We areamong the top three asset managers

or institutional investors with a marketshare o 13.0%.

We launched eight unit trust unds orthe year. We have introduced investmentproducts in line with investors needsin view o current adverse marketconditions. Almost all assets classes areadversely a ected under current marketconditions. We o er unds which woulde ectively protect investors capital andat the same time provide better than xeddeposit returns. We also continued to

ocus on longer tenure capital-protectedunds with options linked to underlying

market conditions/trend and consistentin-fows rom Treasury Solution Facility

unds. FMD manages a total o 45 unittrust unds and numerous discretionarymandates currently.


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p ivat Banking

AmPrivate Banking o ers a diversi edrange o products and services (both localand oreign) to its high net worth clients.

Our investment services include: Cash management solutions Direct investments (advisory) Managed investments

(discretionary port olio) Wealth protection and advisory

(estate planning) Financing

During the year, assets under managementgrew to RM3.3 billion, our th year o consecutive growth. Pro tability growthslowed due to a migration towards lowervolatility products. However, we stillmanaged to grow our income by 19.0%during the nancial year.

Our dedicated team o private clientmanagers work hand in hand with theclients to meet their investment objectivesand attitude towards risks. The clientshave a choice o either managing theinvestment port olio on their own (on an

advisory basis) or leaving the investmentmaking decisions to our und managers(discretionary mandate). Whichever optionis selected, the clients will be made awareo the varied methods o managing andsa eguarding their assets with the primaryaim o optimising the returns.

AmPrivate Bankings advisory model givesinvestors access to some o the mostadvanced and highly regarded names inmoney management. Our open architecturepartnership model encompasses theskills o world-class specialist investmentmanagers. We have care ully selectedthese managers or their unique investmentphilosophy and proprietary investmentprocess so as to bene t our clients.

AmPrivate Banking has added Miri inSarawak to its stable o branches whichare currently located in Penang, JohorBahru, Kuching and Kota Kinabalu.

reLATIoNSHIp BANKING ANDreGIoNAL BuSINeSSRelationship Banking is a new division

which ocuses on deepening andexpanding corporate and institutionalbanking relationships with the Groupscorporate clients, as well as o eringo a wider spectrum o the Groupscommercial banking and investmentbanking products.

Relationship Banking provides clientswith high quality comprehensive nancialsolutions, which include but are notlimited to lending, debt and equity capitalmarkets, trade and cash management,

oreign exchange and derivatives, o shoremarket solutions, as well as advisory andinvestment products.

The division is sta ed with various teamswith diversi ed experience, concentratingon niche client groups and speci csectors. The division is urther supportedby Regional Business Centres (RBCs)in Penang, Johor, Kota Kinabalu, Kuchingand Labuan to ensure that the Group hasa ootprint across Malaysia.

This division ocuses primarily onbuilding and developing strongrelationships with government-linkedcorporations (GLC), governmentand state-owned entities, oreign

multi-national companies, nancialinstitutional groups, conglomerates andlarge corporates which require a widerange o banking and capital marketsolutions. The division works closelywith other divisions within the Group tostructure value-added nancial solutions

or the Groups clients. With the increasein the coverage o banking solutions bythis division, the Relationship Bankingteams are able to increase coverage o clients in various sectors. In addition, bymarketing various products and servicesthat the Group o ers, this division also

plays a pivotal role in cross-selling theproducts and services o the Group.

Going orward, the broad strategies o thedivision will be to diversi y and di erentiate,in line with the Groups strategicobjectives. In addition, the division haswell-documented asset writing strategiesto provide it with clear direction during thecurrent nancial market conditions as wellas to manage the Groups risk appetite.

o sh BankingPursuant to the Groups internalrestructuring to streamline its nancialservices business, AmBank (M) Bhd,Labuan O shore Branch (AmBank-LOB) was set up to assume the businesso AmInvestment Bank, Labuan O shoreBranch (AmInvestment-LOB). As a result,the Groups o shore banking operationsin the Labuan International Business andFinancial Centre comprises AmBank-LOB,

AmInvestment-LOB and AmInternational(L) Ltd (AMIL). The internal restructuringalso resulted in the trans er o ownershipo AMIL rom AmInvestment Bank Bhd to

AmBank (M) Bhd.

As in previous years, we ocused onproviding oreign currency nancingsolutions to Malaysian corporationsventuring abroad. These included

nancing or cross-border acquisitions

in Singapore and joint venture projectsin India, China and Indonesia. Wealso provided nancing to Malaysiancorporations in the oil and gas industry aswell as the plantation sector. Despite tightliquidity in the USD market we managedto book USD150m in new credit acilitiesduring the year, representing a net loanincrease o 106.0%. At the same time, ournon-per orming loans declined to zero.

AmF as S c iti s pt Ltd,SingaIn a year o signi cant businesschallenges, AmFraser Securities PteLtd (AmFraser) continued to expandits business initiatives in Singaporeand developed growth opportunitiesin regional markets. The traditionalstockbroking sales orce expandedduring the year with the strengtheningo retail equity broking servicescomplemented by strong advances

in its enhanced Internet trading portalwww.am raser.com.sg. It specialisesin online equities trading in Singapore,Malaysia and the United States stockmarkets. In the year ahead, AmFrasertargets improvements in businesstechnology, processes and its stablebackroom support team, positions it wellto take advantage o new and developingbusiness conditions.

Close rapport with AmInvestment Bank(Malaysia) continues to bene t thedrive or larger market participation in

corporate nance, equity capital marketsand wealth management activities. Theinstitutional research unit collaboratedwell with AmResearch (Malaysia) in thedissemination o research publicationso both markets to institutional and retailclients, and provided strong support orthe Institutional Sales unit.

AmFraser aims to build on last yearsstructural improvements within theorganisation and to make urtherinroads into priority clients business onboth sides o the causeway and in the

regional marketplace.

pT AmCa ital Ind n siaPT AmCapital Indonesia (AmCI) isa ully licensed investment bank and hasbeen in operation in Indonesia since 1995.

AmCI provides a ull range o investmentbanking services including xed income,asset management and researchbesides its core business o equity salesand trading.

AmCIs in-depth knowledge andexperience o the Indonesian marketserved as a plat orm or Malaysianand oreign investors to participate inthe ever growing Indonesian capitalmarket. The Asset Management unit hasbeen aggressively working closely with

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several suitable products to be launchedand introduced into the Indonesianmarket. The unit implemented a new ITsystem to support uture activities as wellas recruiting experienced and capablesta in every area including operations,compliance, investment and marketing.

Our turnover on equity broking businessor the nancial year ended 31 March 2009

has reached IDR 15.4 trillion, equivalentto a market share o 0.92% o the entireJakarta Stock Exchanges turnover.We are ranked number 32 out o a total o 119 active stockbrokers.

Our Fixed Income unit is supportedby experienced dealers specialising ingovernment and corporate bonds trading.Our main clients are banks, pension unds,and asset management companies. AmCIranked top 10 in government bond tradingamong the securities rms in Indonesia.

The recent global nancial crisis hasresulted in negative investment sentimentand dwindling equity market volume.Nevertheless, AmCI will continue to

ocus on exploring new products andinvestment ideas and serving local and

oreign investors better.

AmCa ital (B) Sdn Bhd AmInvestment Bank Groups latestregional o ce, AmCapital (B) Sdn Bhd,was o cially opened on 11 May 2009. Itwill tap into the vast potential o both the

Brunei market as well as regional playersin meeting a rapidly growing interest in

unds management, Islamic nance, andcorporate advisory, with access to thevast resources, expertise, and award-winning experience o AmInvestmentBank Group.

Am ArA reIT Manag s Sdn Bhd Am ARA REIT Managers Sdn Bhd (Am ARA), the Manager o AmFIRST RealEstate Investment Trust (AmFIRST) hascompleted a revaluation exercise o its sixinvestment properties namely Bangunan

AmBank Group, Menara AmBank, AmBank Group Leadership Centre,Menara Merais, Kelana Brem Tower and

The Summit Subang USJ during thenancial year ended 31 March 2009.

Following the revaluation, AmFIRSTsassets under management (AUM) hasincreased rom RM837 million previouslyto RM980 million, representing a rise o 17 per cent. The revaluation o ve o

AmFIRSTs investment properties wasto ascertain the current market values

o AmFIRSTs AUM and to complywith Clause 10.03 o the SecuritiesCommissions REIT Guidelines. Therevaluation on The Summit Subang USJ,meanwhile, was in line with the FinancialReporting Standard 140.

During the year under review, AmFIRSThas undertaken various enhancement andupgrading works on all o its propertiesto attract quality tenants, earn betterrental and retain high occupancy rates,especially or its three top propertiesnamely Bangunan AmBank Group, Menara

AmBank and AmBank Group LeadershipCentre, which are located within the KualaLumpur Golden Triangle. AmFIRSTs threeo ce buildings in the Golden Triangle areacurrently achieved occupancy rates inexcess o 90 per cent.

Listed on 21 December 2006, AmFIRSTwhich is managed by Am ARA, is currentlyone o the larger commercial space REITsin Malaysia with 2.3 million sq t (inclusiveo The Summit Hotel) o net lettable area.It aims to diversi y its property port oliothrough investment in income-producingreal estate, which is primarily used orcommercial, retail and/or o ce purposes.

Am ARA was incorporated in Malaysiaon 20 April 2006 and is wholly-ownedby Am ARA REIT Holdings Sdn Bhd. Am

ARA REIT Holdings is 70.0% owned by AmInvestment Group Berhad (AIGB) and30.0% owned by ARA Asset Management(Malaysia) Limited. AIGB is a wholly-owned subsidiary o AMMB HoldingsBerhad while ARA Asset Management(Malaysia) Limited is a wholly ownedsubsidiary o Singapore-based ARA AssetManagement Limited, an a liate o theCheung Kong Group o Hong Kong.

p ivat eq ityMalaysian Ventures ManagementIncorporated Sdn Bhd (MVMI), a wholly-owned subsidiary o AmInvestment GroupBerhad, is the private equity division o

AmInvestment Group. MVMI is the rstventure capital/private equity und inMalaysia and was set up in 1984.

MVMI currently manages a RM100 millioncountry und called AmPrivate Equity,our third private equity und. MVMI hasinvested RM34.1 million on behal o

AmPrivate Equity. The investments arein the logistics sector, energy servicessector and resource-based sector. Theseare sectors which will and are expected toenjoy and sustain healthy growth rates inthe medium term.

MVMI will continue to seek out and investin well-managed investee companiesthat run sustainable businesses andare capable o yielding good returns toinvestors o AmPrivate Equity. MVMImakes equity investments in the ollowingsectors: logistics services, energyservices, environmental services, businessservices, nancial services, resource-based manu acturing, value-addedmanu acturing in key growth industriesand promising IT companies with proventrack record.

Our joint venture with the Konzen Groupwas ormalised on 28 July 2008 withthe incorporation o AmKonzen WaterInvestments Management Pte Ltd inSingapore (AmKonzen). AmKonzenwill manage a proposed USD320 millionwater- ocused sector und. The und, tobe called the Asia Water Fund, will investin water assets in the regions boomingwater sector, primarily in China andincluding South East Asia. The und aimsto become a key plat orm or the nancingo Asian water in rastructure out o Singapore and create assets or investorswho are keen to invest in the Asian watersector. The unds objective is to providestrong, predictable and sustainable returnto investors. Investments will includenew and existing water plants, as well ascompanies with innovative and provenwater technologies. As part o our growthstrategy, MVMI intends to set up additionalsector- ocused unds and regional unds

that will provide acquisition and growthcapital or South East Asian companiesthat wish to expand regionally.

Our Asia Water Fund as well as theproposed sector and regional unds willprovide MVMI a regional plat orm to growits private equity unds managementbusiness into a sustainable ranchisewith tangible brand value to shareholdersand investors.

T st S vic s AmTrustee Berhad was incorporated on

28 July 1987 and is registered as a trustcompany under the Trust Companies Act,1949. The Trustee commenced operationsin March 1992 and o ers Innovative and

A ordable Trustee Services. It providescomprehensive conventional and Islamiccorporate and private trust services.

The services o ered include roles as trusteeor retirement unds, unit trust unds, REITs

and debentures, stakeholders, custodialservices, will-writing and the setting upo trust accounts or individuals, amilymembers and institutions.

MArKeTS BuSINeSS(G T as y, Fix d Inc mT ading And T as y D ivativ s)Following the strategic investment by

Australia and New Zealand BankingGroup Limited (ANZ) in AMMBHoldings Bhd (AHB or the AmBankGroup), together with our wholly-ownedcommercial banking arm, AmBank (M)Bhd (AmBank), we have on 28 August2008 entered into a Technical Services

Agreement (TSA) with ANZ to accelerate

the expansion and development o theoreign exchange, interest rate and

commodities derivatives business o the AmBank Group.


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The TSA represents another signi cantmilestone in the roll out o the strategicinitiatives which will contributeconsiderable value-add as part o AmBankGroups strategic partnership to developa sustainable and viable business or

oreign and local customers o AmBankGroup and its subsidiary companies.

This will be through leveraging ANZstechnical skills, processes and know-howin areas relating to sales and trading, risk,product development and systems. Thisis expected to ast-track the exponentialgrowth o the AmBank Groups marketshare in the expanding market or oreignexchange, interest rate and commoditiesderivatives products.

To refect the changes that are takingplace, the divisions present conventionalre erence i.e. Group Treasury consistingo conventional and Islamic banking willbe renamed Markets Business. This

will thus represent the merger o ourexisting treasury activities together withour collaborative partnership business in

orex and derivatives.

In the midst o current extreme ratevolatility, liquidity and credit marketsconcerns, it has undoubtedly beena challenging operating environment.

As crude oil prices rose sharply, sparkinginfationary ears, pressure was exertedon trading in both government andcorporate bonds. It is crucial to ensurea sustainable strong volume growth,

and maintain a liquid balance sheet andstrong asset quality which is o paramountimportance in the intensely competitiveand uncertain marketplace.

In tandem with the rapidly growing Islamicbanking markets, the Islamic Treasuryunit too played its role in managing theinvestment needs o our clients.

ISLAMIC BANKINGFor FY 2009, AmIslamic Bank Berhad(AmIslamic) has once again continuedto build on the strong growth achievedin the previous two nancial years. In anincreasingly competitive environment, itspre-tax pro t rose to RM213 million whiletotal assets expanded to RM14 billion asat end-March 2009. Total nancing wasreported at RM11 billion, which accounted

or 69.6% o total assets due to thecontinued demand or nancing in theRetail and Business Banking segments.

p d ct And B sin ss D v l m nt As part o the initiatives to urther expandour comprehensive range o products, the

ollowing programmes were rolled out:

In November 2007 Fully SecuredFinancing Cashline-i was introduced orindividuals against General Investment

Account-i (GIA-i) available at allbranches and regional o ces.

For the second year, AmIslamicPersonal Financing-i Win-a-CarContest was rolled out, in June 2008.

In July 2008, a partnership with Taka ulIkhlas Sdn Bhd and the FWU Group(a German-based international nanceservices company) was orged, tomarket a Taka ul and investment-linkedproduct under the AmIslamic brand,named AmHigh Taka ul Investment-Linked Plan.

Active Commodities Islamic NegotiableInstrument o Deposit (NID-i) waslaunched in August 2008.

AmIslamic True Card-i, a no rills cardwas launched, in November 2008.

In January 2009, Family First IslamicSolution, an all-in-one Shariah-compliant nancial solution or amilies

was introduced.

A variable rate home nancing acilitycalled Flexi Home Financing-i wasintroduced in February 2009.

St at gic pa tn shi B tw n AmBank G And A st alia AndN w Z aland Banking G (ANZ) Opportunities to leverage on the

international expertise, best practicesand capabilities o ANZ.

AmIslamic Bank mapped out goals and

aligned them to the Groups Medium Term Aspirations (MTA).

AmIslamic B anding F Th GIn conjunction with the InternationalCurrency Business Unit (ICBU) licensegranted by Bank Negara Malaysia(BNM) to AmIslamic, the Group is nowadopting the brand name o AmIslamicin order to create and build a brandthat is relevant and pre erred or Islamicbanking and nance both locally andglobally. AmIslamic shall be known asthe promoting brand or all the GroupsIslamic products and services suchas retail banking, business banking,investment banking, unds managementand ICBU products.

Th ICBu Initiativ s The AmIslamic ICBU is now ullyoperational under the wings o theGroups investment banking ICBU. Both

AmIslamic and the Groups ICBUs are nowoperating oreign currency denominatedbusinesses since July 2007.

Ma k ting And p m ti nsRepresenting the Group, AmIslamicparticipated in Bank o Zambia IslamicBanking Con erence, held in Zambia(on 20-21 October 2008), as well as IAS AEI (Islamic Area Studies Asia EuropeInstitute) International Con erence on

Islamic Area Studies, held at Nikko Hotel,Kuala Lumpur on 22-24 November 2008.

St at gic F c s And Initiativ s FFY 2010

The strategic initiatives that will be rolledout in FY 2010 include:

Expanding the ICBU business byleveraging on ANZ or internationalexposure/market accessibility.

Opening more AmIslamic Bankbranches where viable.

Finalising the development o the equitybusiness model/structure based on theMusharakah concept.

On-going product development,business tie-ups and dealings.

Strengthening o AmIslamic corporate

branding.

INSurANCeE ective 1 December 2008, AmAssurance(previously known as AmAssuranceBerhad) has split into two specialistcompanies, ollowing the acquisitiono a 30.0% stake in AmLi e InsuranceBerhad (AmLi e) by a UK-listed li e andpensions company known as FriendsProvident plc (FP) and a 49.0% stakein AmG Insurance Berhad (AmG)by Insurance Australia Group Limited(IAG), a general insurance group with

operations in Australia, New Zealand, theUnited Kingdom and Asia.

For the nancial year ended 31 March2009, AmAssurance achieved totalpremiums o RM546.1 million or 30.0%growth or li e insurance and RM585.8million or 7.4% increase or generalinsurance despite the tough conditions o the economic slowdown. The astonishinggrowth under AmLi e was contributed byour agency and bancassurance channelswhich registered commendable growtho 27.0% or RM61 million and 65.0% orRM65 million respectively.

AmLi Ins anc B had

Financial p manc AmLi e secured its strong double-digitgrowth o 23.0% in new business premiumto RM109 million compared to theprevious year. For the nancial year underreview, AmLi es total li e policyholders

und (inclusive o investment-linked unds)achieved a commendable growth o 19.0% to RM1.8 billion.

During the year, AmLi es asset size grewto RM2 million, an increase o 20.0%compared to the previous year. For F

Documents

17 Business Operations Review