Annual Report 2015 - Affin Islamic Bank Berhad Rep… · EXECUTIVE SUMMARY 14 Chairman’s ... He is also the Chairman of Boustead Heavy Industries Corporation Berhad, ... Straits

Annual Report 2015

COVER RATIONALE

Identifying and converting potential can be challenging, especially in volatile markets. It requires conviction, discipline and a focus on the long term.

At AFFIN ISLAMIC, we understand the value of potential.

With expertise across a wide array of disciplines, backed by our focus on results, we constantly think ahead and strive to anticipate change before it happens.

This forward thinking approach helps our customers look to the future with confidence.

TABLE OF CONTENTS

FINANCIAL STATEMENTS

25 Financial Statements

ORGANISATION

02 Corporate Information03 Corporate Structure04 Board of Directors05 Profile of Board of Directors09 Management Team10 Shariah Committee Members11 Profile of Shariah Committee Members

EXECUTIVE SUMMARY

14 Chairman’s Statement17 CEO’s Performance Review20 Corporate Diary22 Financial Highlights

OTHER INFORMATION

23 Network of Branches24 Notice of Annual General Meeting

OUR VISIONAFFIN ISLAMIC to play a significant role in the ever expanding Islamic banking world by providing innovative Shariah Compliant financial solutions and services, which will establish itself as a “PREMIER LOCAL AND INTERNATIONAL ISLAMIC FINANCIAL INSTITUTION”.

02

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

CORPORATE INFORMATION

ChairmanYBhg. Jen. Tan Sri Dato’ Seri Ismail Bin Haji Omar (Bersara)(Non-Independent Non-Executive Director)

DirectorsYBhg. Tan Sri Dato’ Seri Lodin Bin Wok Kamaruddin(Non-Independent Non-Executive Director)

YBhg. Laksamana Madya Tan Sri Dato’ Seri Ahmad Ramli Bin Mohd Nor (Bersara)(Non-Independent Non-Executive Director)

YBhg. Tan Sri Dato’ Seri Mohamed Jawhar (Independent Non-Executive Director)

En. Mohd Suffian Bin Haji Haron(Independent Non-Executive Director)

YBhg. Tan Sri Dato’ Sri Abdul Aziz Bin Abdul Rahman (Independent Non-Executive Director)

Assoc. Prof. Dr. Said Bouheraoua (Independent Non-Executive Director)

BOARD OF DIRECTORS

NAME

Affin Islamic Bank Berhad

(Co. No.: 709506-V)

REGISTEREDOFFICE

17th FloorMenara AFFIN

80, Jalan Raja Chulan50200 Kuala LumpurTel.: 03-2055 9000 Fax: 03-2026 1415

DATE OF INCORPORATION

13 September 2005

AUTHORISED SHARE CAPITAL

No. of shares1,000,000,000

Par valueRM1.00

TotalRM1,000,000,000

PRINCIPAL ACTIVITIES

Affin Islamic Bank Berhad is principally

involved in the carrying out of Islamic banking and finance related services. The Bank

has two (2) associate companies which

are principally engaged in property

management services.

ISSUED AND PAID-UP SHARE CAPITAL

No. of shares460,000,002

Par valueRM1.00

TotalRM460,000,002

CHIEF EXECUTIVE OFFICER

En. Kamarul Ariffin Bin Mohd Jamil

(Resigned w.e.f. 31.3.2015)

En. Nazlee Bin Khalifah(Appointed w.e.f.

3.6.2015)

SUBSTANTIAL SHAREHOLDER

No. of sharesAffin Bank Berhad

460,000,002

SECRETARY

Nimma Safira BintiKhalid

EXTERNAL AUDITORS

PricewaterhouseCoopers (AF 1146)

03

Affin Islamic Bank Berhad (709506-V

) | Annual Report 2015

CORPORATE STRUCTURE

as at 31 December 2015

1 Dormant companies – inactive but company currently holding asset.2 Associate companies.3 Companies where application to strike-off has been filed by the Bank.

OTHERS

AFFIN HOLDINGS BERHAD

AFFIN Bank BerhadAFFIN Islamic Bank Berhad

Lembaga Tabung Angkatan Tentera

AXA AFFIN Life Insurance Berhad

AXA AFFIN General Insurance Berhad

AFFIN MoneyBrokers Sdn Bhd

AFFIN-ACF Holdings Sdn Bhd

AFFIN Hwang Investment Bank Berhad

AFFIN Investment Berhad(formerly known as AFFIN Investment Bank Berhad)

AFFIN-i Nadayu Sdn Bhd 2

(jointly owned by AFFIN Islamic Bank Berhad and Jurus Positif Sdn Bhd with a 50:50 ownership)

Boustead Holdings Berhad Bank of East Asia Limited

AFFIN Hwang Nominees (Tempatan) Sdn Bhd

AFFIN Hwang FuturesSdn Bhd

AFFIN Hwang Nominees (Asing) Sdn Bhd

AFFIN Nominees (Tempatan) Sdn Bhd

AFFIN Hwang Asset Management Berhad

AFFIN Nominees (Asing) Sdn Bhd

Asian Islamic InvestmentManagement Sdn Bhd

AFFIN Capital Services Berhad(formerly known as AFFIN Fund Management Berhad)

PAB Properties Sdn Bhd

ABB Trustee Berhad 2

(80% held by Directors of AFFIN Bank Berhad in trust for AFFIN Bank Berhad)

AFFIN Futures Sdn Bhd 1

ABB IT & Services Sdn Bhd 1

BSNCB Nominees (Tempatan) Sdn Bhd 1

AFFIN Recoveries Berhad 1

ABB Nominee (Tempatan) Sdn Bhd AFFIN-ACF Nominees (Tempatan) Sdn Bhd 3

AFFIN Factors Sdn Bhd 1

ABB Nominee (Asing) Sdn Bhd 1

PAB Property Development Sdn Bhd 3

BSNC Nominees (Tempatan) Sdn Bhd 3

59.98%

20.69%

100%

100%

100%

51%

34.5%

100%

100%

100% 100%

100% 100%

70% 100%

100%

100%

100%

100% 100%

100%

100% 100%

100%

100%

100%

100%

100%

100%

100%

50%

23.52% 20.51%

35.28%

KL South Development Sdn Bhd 2

(jointly owned by AFFIN Islamic Bank Berhad and Albatha Bukit Kiara Holdings Sdn Bhd with a 30:70 ownership)

30%

04

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

BOARD OF DIRECTORS

YBHG. LAKSAMANA MADYA TAN SRI DATO’ SERI AHMAD RAMLI BIN MOHD NOR (BERSARA)

Non-Independent Non-Executive Director

YBHG. TAN SRI DATO’ SRI ABDUL AZIZ BIN ABDUL RAHMAN

Independent Non-Executive Director

ASSOC. PROF. DR. SAID BOUHERAOUA


YBHG. JEN. TAN SRI DATO’ SERI ISMAIL BIN HAJI OMAR (BERSARA)

Chairman/Non-Independent

Non-Executive Director

EN. MOHD SUFFIAN BIN HAJI HARON


YBHG. TAN SRI DATO’ SERI LODIN BIN WOK KAMARUDDIN

Non-Independent Non-Executive Director

YBHG. TAN SRI DATO’ SERIMOHAMED JAWHAR


05



PROFILE OF DIRECTORS

YBHG. JEN. TAN SRI DATO’ SERI ISMAIL BIN HAJI OMAR (BERSARA)Chairman / Non-Independent Non-Executive Director

YBHG. TAN SRI DATO’ SERI LODIN BIN WOK KAMARUDDINNon-Independent Non-Executive Director

Jen. Tan Sri Dato’ Seri Ismail Bin Haji Omar (Bersara), aged 74, was appointed as Director and Chairman of AFFIN ISLAMIC on 1 April 2006.

He was formerly Chief Defence Forces (CDF) Malaysia from 1995 until his retirement in 1998, after 38 years of military service. He graduated from the Royal Military Academy, Sandhurst, United Kingdom in 1961 and subsequently attended professional and management development courses at several institutions including the Land Forces Command and Staff College, Canada; the United Nations International Peace Academy, Vienna; the National Defence College, India and the National Institute of Public Administration (INTAN), Malaysia.

His military service saw Key Command and Staff appointments at all levels of the Armed Forces. As CDF, his responsibilities included key roles in Malaysia’s Regional and International Defence Relations.

He was the Chairman of Affin Holdings Berhad and Affin-ACF Finance Berhad from 1999, prior to joining AFFINBANK. He currently holds directorships in AFFINBANK, ABB Trustee Berhad, EP Engineering Sdn Bhd and Global Medical Alliance Sdn Bhd.

Jen. Tan Sri Dato’ Seri Ismail Bin Haji Omar (Bersara) attended all 11 scheduled monthly Board Meetings and all 3 Special Board Meetings held during the financial year ended 31 December 2015.

Tan Sri Dato’ Seri Lodin Bin Wok Kamaruddin, aged 66, was reappointed to the Board of Directors of AFFIN ISLAMIC on 4 October 2010. He was appointed as the Managing Director of Affin Holdings Berhad in February 1991 and redesignated as Deputy Chairman on 1 July 2008.

He has extensive experience in managing a provident fund and in the establishment, restructuring and management of various business interests ranging from plantation, trading, financial services, property development to oil and gas, pharmaceuticals and shipbuilding.

Tan Sri Dato’ Seri Lodin is the Chief Executive of LTAT and the Deputy Chairman/Group Managing Director of Boustead Holdings Berhad. Prior to joining LTAT, he was the General Manager of Perbadanan Kemajuan Bukit Fraser for 9 years.

He is also the Chairman of Boustead Heavy Industries Corporation Berhad, Boustead Naval Shipyard Sdn Bhd, Pharmaniaga Berhad and Boustead Petroleum Marketing Sdn Bhd. He sits on the Board of The University of Nottingham in Malaysia, Minority Shareholder Watchdog Group, FIDE Forum, AFFINBANK, Affin Hwang Investment Bank Berhad, AXA Affin Life Insurance Berhad and Boustead Plantations Berhad.

Tan Sri Dato’ Seri Lodin graduated from the University of Toledo, Ohio, USA with a Bachelor of Business Administration and a Master of Business Administration. Among the many awards he received todate include the Chevalier De La Legion D’Honneur from the French Government, the Malaysian Outstanding Entrepreneurship Award, the Degree of Doctor of Laws (honoris causa) (LLD) from the University of Nottingham, United Kingdom, the UiTM Alumnus of the Year 2010 Award and The BrandLaureate Most Eminent Brand ICON Leadership Award 2012 by Asia Pacific Brands Foundation. He is also a Chartered Banker, AICB.

Tan Sri Dato’ Seri Lodin Bin Wok Kamaruddin attended all 11 scheduled monthly Board Meetings and all 3 Special Board Meetings held during the financial year ended 31 December 2015.

06

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

YBHG. LAKSAMANA MADYA TAN SRI DATO’ SERI AHMAD RAMLI BIN MOHD NOR (BERSARA)Non-Independent Non-Executive Director

YBHG. TAN SRI DATO’ SERI MOHAMED JAWHARIndependent Non-Executive Director

Tan Sri Dato’ Seri Ahmad Ramli Bin Mohd Nor, aged 71, was appointed to the Board of Directors of AFFIN ISLAMIC on 1 July 2006.

He graduated from the Brittania Royal Naval College Dartmouth, United Kingdom in 1965, the Indonesia Naval Staff College in 1976, the United States Naval War College and Naval Post-Graduate School Monterey in 1981. He also holds a Masters Degree in Public Administration from the Harvard University, United States of America. He was in the Malaysian Navy and retired as Chief of Royal Malaysian Navy in 1999.

Presently he is the Executive Deputy Chairman / Managing Director of Boustead Heavy Industries Corporation Berhad. He is also the Board member of Favelle Favco Berhad.

Tan Sri Dato’ Seri Ahmad Ramli Bin Mohd Nor attended 10 out of 11 scheduled monthly Board Meetings and all 3 Special Board Meetings held during the financial year ended 31 December 2015.

Tan Sri Dato’ Seri Mohamed Jawhar, aged 71, was appointed to the Board of Directors of AFFIN ISLAMIC on 1 July 2006.

His other positions include: Independent Non-Executive Director, AFFINBANK; Non-Executive Chairman, New Straits Times Press (Malaysia) Berhad; Member of Securities Commission Malaysia; Member, Operations Review Panel, Malaysian Anti-Corruption Commission; Distinguished Fellow, Institute of Diplomacy and Foreign Relations (IDFR); Distinguished Fellow, Malaysian Institute of Defence and Security (MiDAS); Fellow, Institute of Public Security of Malaysia (IPSOM), Ministry of Home Affairs; Board Member, Institute of Advanced Islamic Studies (IAIS); and Member, Laureate Advisory Board, INTI International University and Colleges. He is also the Expert and Eminent Person from Malaysia for the ASEAN Regional Forum (ARF).

He was also Co-Chair, Network of East Asia Think-tanks (NEAT) 2005-2006; Chairman, Malaysian National Committee, Pacific Economic Cooperation Council (PECC) 2006-2010; and Co-Chair, Council for Security Cooperation in the Asia Pacific (CSCAP) 2007-2009.

He served with the government for over 20 years before he joined Institute of Strategic & International Studies (ISIS) Malaysia as Deputy Director-General in 1990. He was appointed Director-General in March 1997 and later as Chairman and CEO in 2006. He was appointed Chairman ISIS Malaysia on 9 January 2010 relinquished the position on 8 January 2015.

During his government service, his positions include Director-General, Department of National Unity; Under-Secretary, Ministry of Home Affairs; Director (Analysis) Research Division, Prime Minister’s Department; and Principal Assistant Secretary, National Security Council. He also served as Counselor in the Malaysian Embassies in Indonesia and Thailand.

Tan Sri Dato’ Seri Mohamed Jawhar attended all 11 scheduled monthly Board Meetings and all 3 Special Board Meetings held during the financial year ended 31 December 2015.


07



EN. MOHD SUFFIAN BIN HAJI HARONIndependent Non-Executive Director

YBHG. TAN SRI DATO’ SRI ABDUL AZIZ BIN ABDUL RAHMANIndependent Non-Executive Director

En. Mohd Suffian Bin Haji Haron, aged 70, was appointed to the Board of Directors of AFFIN ISLAMIC on 1 July 2006

He graduated from the University of Malaya (1970) with a Bachelor of Economics and holds a Master of Business Administration from University of Oregon (USA) in 1976.

He started his career as a Diplomatic and Administrative Officer, attached to the Prime Minister’s Department and the Ministry of Public Enterprises. Whilst at the Prime Minister’s Department, he was also assigned as the Assistant to the Special Economic Adviser to the Government. He served the Board of Directors of Fraser’s Hill Development Corporation, the State Development Corporations of Perak, Pahang and Terengganu as well as the Board of Directors of Bank Pembangunan Malaysia Berhad, Kompleks Kewangan Malaysia Berhad, HICOM and the Council of Majlis Amanah Rakyat (MARA). After thirteen years of service, he left the Government Service to serve a GLC involved in international business, after which he ventured on his own to be the Managing Director of Insurance Broking Company. Amongst his other involvements after that were in the securities industry and asset management activities. He has also served as a Director of Hitachi Sales (Malaysia) Sdn Bhd, Meiden Electric Engineering Sdn Bhd, Far East Computers (India) and Affin Discount Berhad. He also brings with him vast experience in general trading, power generation and transmission, aircraft maintenance as well as the oil and gas services sectors.

Presently he is a Board member of AFFINBANK, ABB Trustee Berhad, L.K & Associates Sdn Bhd and Pharmaniaga Berhad.

En. Mohd Suffian Bin Haji Haron attended all 11 scheduled monthly Board Meetings and all 3 Special Board Meetings held during the financial year ended 31 December 2015.

Tan Sri Dato’ Sri Abdul Aziz Bin Abdul Rahman, aged 69, was appointed to the Board of Directors of AFFIN ISLAMIC on 1 November 2011.

He graduated with a Bachelor of Commerce from University of New South Wales, Sydney, Australia. He is a member of the Malaysian Institute of Certified Public Accountants (MICPA) and the Malaysian Institute of Accountants (MIA).

He has served as Chairman and Board member of several government institutions, agencies and public listed companies, both in Australia and Malaysia.

At the corporate level, he was with PricewaterhouseCoopers Sydney, Malaysia Airlines Berhad and Managing Director of Bank Kerjasama Rakyat Malaysia Berhad before venturing into politics and public service as the Pahang State Assemblyman, State Executive Councillor and Deputy Chief Minister of Pahang. He was a Senator of Malaysian Parliament for a maximum period of two (2) terms.

Presently he is a Board member of the International Islamic University Malaysia.

Tan Sri Dato’ Sri Abdul Aziz Bin Abdul Rahman attended 10 out of 11 scheduled monthly Board Meetings and 2 out of 3 Special Board Meetings held during the financial year ended 31 December 2015.


08

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

ASSOC. PROF. DR. SAID BOUHERAOUAIndependent Non-Executive Director

Assoc. Prof. Dr. Said Bouheraoua, aged 48, was appointed to the Board of Directors of AFFIN ISLAMIC on 19 June 2014.

Dr. Said, an Algerian, obtained his Ph.D in Fiqh/Usul Fiqh (Shariah) from International Islamic University Malaysia (IIUM) in 2002. He was also an Associate Professor at Department of Islamic Law, Ahmad Ibrahim Kulliyyah of Laws, IIUM. He is currently a Senior Researcher at the International Shariah Research Academy for Islamic Finance (ISRA) and the editor-in-chief of ISRA International Journal of Islamic Finance.

Dr. Said has throughout his career as Lecturer/Researcher published several books and articles in international referred journals. He has also presented papers in international conferences and conducted training sessions in Islamic finance in Malaysia and abroad.

Assoc. Prof. Dr. Said Bouheraoua attended 8 out of 11 scheduled monthly Board Meetings and all 3 Special Board Meetings held during the financial year ended 31 December 2015


09



MANAGEMENT TEAM

EN. MOHD RUSLEE BIN OMARHead, Strategic Business Alliances

EN. MOHD FAIZ BIN RAHIMHead, Shariah Supervisory

EN. MOHD FIZAR BIN MOHIDINHead, Islamic Treasury

PN. JOZAIMAH BINTI JOHAN ALIHead, Strategic Management

EN. FERDAUS TOH BIN ABDULLAHDeputy Chief Executive Officer

PN. RADZIAH BINTI AHMADHead, Islamic Consumer & Bancatakaful

EN. KAMARUL ARIFFIN BIN MOHD JAMIL Chief Executive Officer

(Resigned w.e.f 31.3.2015)

EN. NAZLEE BIN KHALIFAHChief Executive Officer

(Appointed w.e.f. 3.6.2015)

PN. ZURINA AYU BINTI SAMSUDINHead, Product Development

EN. HAZLAN BIN HASANHead, Investment & Structured Finance

CIK NORAZLINDA BINTI MOHD FADZILHead, Promotion & Marketing Communications

10

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

SHARIAH COMMITTEE MEMBERS

ASSOCIATE PROFESSOR DR. SAID BOUHERAOUA

ASSOCIATE PROFESSOR DR. ZULKIFLI HASAN

USTAZ AHMAD ALFISYAHRIN JAMILIN

ASSOCIATE PROFESSOR DR. AHMAD AZAM OTHMAN

USTAZ MOHAMMAD MAHBUBI ALI

11



PROFILE OF SHARIAH COMMITTEE MEMBERS

ASSOCIATE PROFESSOR DR. SAID BOUHERAOUA

ASSOCIATE PROFESSOR DR. AHMAD AZAM OTHMAN

Associate Professor Dr. Said Bouheraoua was appointed as a Director of AFFIN ISLAMIC on 19 June 2014. Dr. Said, an Algerian, obtained a Bachelor in Fiqh and Usul Fiqh from the University of Algiers in 1991, Master of Quran and Sunnah in 1998 and Ph.D in Fiqh/Usul Fiqh (Shariah) from International Islamic University Malaysia (IIUM) in 2002. He was also an Associate Professor at Department of Islamic Law, Ahmad Ibrahim Kulliyyah of Laws, IIUM. He is currently a Senior Researcher at the International Shariah Research Academy for Islamic Finance (ISRA), and is the editor-in-chief of ISRA International Journal of Islamic Finance. Dr. Said has throughout his career as Lecturer/ Researcher published four books, five chapters in books and several articles in international referred journals. He has also presented several papers in international conferences and conducted several training sessions in Islamic finance in Malaysia and abroad.

Dr. Ahmad Azam Othman is currently an Associate Professor at Islamic Law Department, Ahmad Ibrahim Kulliyyah of Laws (AIKOL), International Islamic University Malaysia (IIUM). He was the Director of Harun M. Hashim Law Centre, AIKOL, IIUM and the Head of Islamic Law Department, AIKOL, IIUM. His specialised areas are Islamic Law of Property, Obligations, Transactions, Personal Bankruptcy, Banking and Takaful as well as comparative laws. He has vast experience in teaching for postgraduate as well as undergraduate courses. He is also an internal examiner and supervisor to a number of PhD Theses and Master Dissertation in various areas including Islamic Banking, Islamic Microfinance, Islamic Capital Market, Takaful and Waqf. Dr. Ahmad Azam Othman holds a PhD from University of Wales, UK. In addition, he holds a Master of Comparative Laws from IIUM where he also obtained his LLB (Bachelor of Laws) and LLB.S (Bachelor of Shariah) as his first degree.

12

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5


USTAZ MOHAMMAD MAHBUBI ALI

Mohammad Mahbubi Ali was a researcher at the International Shari’ah Research Academy for Islamic Finance (ISRA). During his stint in ISRA, he had contributed to numerous ISRA’s research publications, mainly involving in Central Bank of Malaysia’s Shari’ah Standards. Currently, he serves as a Shariah consultant for ZICO Shariah Advisory, Shariah/research consultant for ISRA and ISRA Consultancy Sdn Bhd, associate consultant for IIFIN Consulting Sdn Bhd, and associate trainer for Amanie Academy Centre of Excellence. He was also a lecturer at University of Kuala Lumpur and Unitar International University. In his young age, he has managed to contribute extensively in Islamic Finance through his regular writings featured in the Islamic Finance News (IFN), Business Islamica, The General Council for Islamic Banks and Financial Institutions (CIBAFI), Epicentre and many others. He has published numerous articles in international and local referred academic journals, written several book chapters and presented a number of papers in various international conferences. His paper entitled: “A Framework of Income Purification for Islamic Financial Institutions,” co-authored with Dato’ Dr. Asyraf Wajdi Dusuki and Lokmanulhakim Hussain, was conferred best paper presentation in Sharia Economics Conference, University of Hannover, Germany, 2013. He received a bachelor degree in Shari’ah Business and Finance from Islamic Business School, Tazkia Indonesia and Chartered Islamic Finance Professional (CIFP) from INCEIF, The Global University in Islamic Finance, Malaysia. He is a PhD candidate in Islamic Banking and Finance from the Institute of Islamic Banking and Finance, International Islamic University Malaysia (IIUM).

ASSOCIATE PROFESSOR DR. ZULKIFLI HASAN

Dr. Zulkifli Hasan is an Associate Professor at the Faculty of Syariah and Law, Universiti Sains Islam Malaysia (USIM). He has vast experiences in applied banking and finance including takaful and these include as an advocate and solicitor, in-house counsel for Bank Muamalat Malaysia Berhad, member of Rules and Regulations Working Committee for Association of Islamic Banking Institutions Malaysia and member of corporate governance working committee for Awqaf South Africa. He also underwent internship at Hawkamah, the Institute for Corporate Governance, Dubai International Financial Centre whereby he was involved in developing corporate governance guidelines for Islamic Financial Institutions in the Middle East and North Africa (MENA) as well as in the Task Force on Environmental, Social and Governance (ESG) which led towards development of the S&P/ Hawkamah Pan Arab ESG Index. His articles and books have been published in reputable academic journals and publishers and he has presented numerous papers in various conferences both local and abroad. His book entitled ‘Shari’ah Governance in Islamic Bank’ published by the Edinburgh University Press won the MAPIM Best Publication in the category of social science. In 2013, he represented Malaysia in the prestigious Young Muslim Intellectuals in Southeast Asia Programme in Japan organized by Japan Foundation. He has been selected as a recipient of a 2014 grant to conduct scholarly research at Fordham University, New York, United States of America by the J. William Fulbright Foreign Scholarship Board through the Fulbright US-ASEAN Visiting Scholars Initiative. Dr. Zulkifli Hasan holds a PhD in Islamic Finance from Durham University, UK. Besides this, he holds a Master of Comparative Laws from International Islamic University of Malaysia where he also obtained his LLB (Bachelor of Laws) and LLB.S (Bachelor of Shariah) as his first degree. His research interest include corporate and Shari’ah governance and regulation in Islamic finance.

13




USTAZ AHMAD ALFISYAHRIN JAMILIN(Appointed w. e. f.1 September 2015)

Ahmad Alfisyahrin Jamilin is currently the Head of Shariah at First Gulf Bank, United Arab Emirates. He was previously the Chief Shariah Officer at Al Rajhi Bank Malaysia and Shariah Counsel at HSBC (Amanah) Middle East based in Dubai, United Arab Emirates. Alfisyahrin came with a colorful experience in his career where he was a Vice President in Global Markets and Structured Investment for Al Rajhi Bank Malaysia and a Shariah specialist for Sukuk and syndication for Global HSBC Amanah while he holds a Bachelor in Shariah (honours) from the Islamic University of Madinah, Saudi Arabia.

Alfisyahrin practiced Islamic banking and finance in multiple areas such as front-liner, product structurer and developer, Shariah specialist and documentation expert. He used to be the originator, transactor and developer for Sukuk and Treasury products and transactions, and had experience in the conversion of conventional bank to Islamic. Apart from that, he undertake corporate financial advisory for specialized or non-vanilla requirements in the areas which include general corporate finance, structured finance, capital management, contract finance and project finance, managing global Shariah affairs in the global Islamic banking presence including but not limited to United Arab Emirates, Bahrain, Qatar, Saudi Arabia, United States of America, United Kingdom, Mauritius, Bangladesh, Malaysia, Indonesia, Brunei and Singapore. He also has experience in establishing and managing Shariah division and fund custodial and administrative services by providing Shariah advisory, equity screening, audit and purification process.

14

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

CHAIRMAN’S STATEMENT

DEAR SHAREHOLDERS,

It gives me pleasure to present the financial and operational highlights of AFFIN ISLAMIC, given the Bank’s very encouraging performance within a challenging economic environment that faces the financial industry in Malaysia.

The Board of Directors is committed to ensure the Bank continues to grow from strength to strength, building on its fundamentals in order to ensure its long-term sustainability and steady returns to stakeholders. Since the Bank was established in 2006, we have kept a keen eye on its progress and been pleased not only by its financial scorecard but also with increasing market awareness of the brand and its reputation as an Islamic bank that keeps innovating to introduce Shariah compliant products that appeal to the various segments of the market.

We are also committed to play our role in advancing Islamic banking more generally within the local financial landscape. In 2015, we made a quantum leap in this direction when AFFIN ISLAMIC joined forces with five other Islamic banking institutions to form a consortium offering an Islamic Account Platform (IAP). Through the IAP, we will be presenting investment opportunities in local businesses and entrepreneurs that have been risk-assessed by the participating banks. We also see the IAP as presenting a new medium to facilitate greater public-private partnerships in financing strategic ventures within specific industries. It is also envisaged for IAP to be eventually positioned to facilitate fund intermediation across borders.

Along with enhanced governance in the Islamic banking sector, we believe that Islamic financial institutions in general are better positioned to meet the requirements of the market. AFFIN ISLAMIC in particular has been focusing intently on fulfilling both the investment and financing needs of our growing customer base.

JEN. TAN SRI DATO’ SERI ISMAIL BIN HAJI OMAR (BERSARA)

Chairman

RM117.4million

PROFIT BEFOREZAKAT AND TAXATION

(PBZT) RM13.4billion

TOTAL ASSETS

“Our total assets grew 5.2% to RM13.4 billion and profit before zakat and taxation (PBZT) increased by 28.1% to RM117.4 million.”

As a result, I am pleased to share that the Bank has grown our assets by 5.2%, increased our profit before zakat and taxation (PBZT) by 28.1% to RM117.4 million, and our earnings per share to 23.5 sen compared to 18.5 sen in 2014.

In addition to increasing our shareholder value in financial terms, the Bank has also been working assiduously to grow our market reputation and integrate ourselves more fully into local communities via a series of community outreach programmes and zakat (business tithes) contributions. These initiatives are undertaken not out of a sense of obligation but because we truly believe that, by giving back to the communities that surround us, we are building our brand thus increasing the intrinsic and long-term value of the Bank.

In 2015, AFFIN ISLAMIC contributed a total of RM5.5 million in zakat to different causes and sectors of the under-served population. We contributed a total of RM1.5 million to the six state zakat centres, while also channelling RM4.0 million in direct contributions to deserving individuals and charitable organisations. Of this sum, RM2.6 million went towards helping the poor and needy to provide for themselves. A total of RM478,842 was channelled towards knowledge cause (Fisabilillah), inclusive of Muallaf activities. Among our Muallaf contributions were RM60,000 to Multiracial Reverted Muslim (MRM) and RM25,000 to Interactive Da’wah Training to assist newly converted Muslims. On our educational aid, AFFIN ISLAMIC contributed RM250,000 to support deserving students pursuing tertiary education at local institutions of higher learning such as Universiti Teknologi MARA (UiTM), Universiti Kebangsaan Malaysia (UKM) and Management & Science University (MSU) to

15




Contribution to Tabung Zakat Angkatan Tentera Malaysia.

Contibution from AFFIN Barakah Charity Account-i to PDK Kasih Autisma.

name a few. To help eligible recipients to settle their debts, the Bank disbursed RM45,212.43 under Gharimin. Meanwhile, we also contributed RM75,000 towards Riqab (rehabilitation of Aqidah), which included RM50,000 to Pusat Jagaan Remaja Puteri Raudhatus Sakinah.

In addition, we contributed RM700,000 to Tabung Zakat Angkatan Tentera Malaysia, which manages funds to be allocated to deserving members of the armed forces.

Besides our zakat contribution, through the AFFIN Barakah Charity Account-i, AFFIN ISLAMIC donated RM18,360 to Yayasan Kanser Malaysia (YKM) for the purchase of basic medical needs and equipment for poor patients; and RM20,000 to Pemulihan Dalam Komuniti (PDK) Kasih Templer Autisma to assist children with autism and other special needs.

We launched the AFFIN Barakah Charity Account-i as a Mudharabah savings account in 2013 to facilitate charitable donations by depositors. Via the account, customers pledge to donate a certain percentage of their monthly earned investment profit to a worthy cause.

We also support corporate responsibility initiatives together with our parent company, AFFINBANK. Every year, we join forces to hold a ‘Majlis Berbuka Puasa Bersama Anak-anak Yatim’, at AFFINBANK’s Head Office to bring cheer to orphans. This year, about 160 children from three orphanages in the Klang Valley were invited to a ‘buka puasa’ (breaking of fast) dinner which was attended by Senior Management from both banks during the month of Ramadhan. We also presented the children with a token of ‘duit raya’ to add to the occasion.

In addition, we jointly sponsored Utusan Melayu’s Tutor Pull-out Programme under which specially prepared Tutor Pull-out were distributed to primary and secondary school students, to supplement their normal curriculum learning materials.

16

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5


Zakat presentation to Management & Science University (MSU).

Presentation of Zakat to Pusat Jagaan Remaja Puteri Raudhatus Sakinah.

Ultimately, we function to serve the needs of the nation. This is reflected not only in our corporate responsibility initiatives but also in the emphasis we place on providing our customers with products that truly meet their needs. I’m pleased to share that in January 2016, as part of a Group Strategic Transformation Programme, we are conducting a thorough review of our position within the Islamic finance industry, assessing segments of the population that we are ideally suited to serve, and plan strategically to deliver products that will add value to these target markets. In addition, we are building on our customer service to further enhance our customer experience. The idea is ensure we keep relevant to a rapidly changing marketplace and become a ‘dream bank’ not only for our customers but also our employees.

Our employees, after all, are our most valued assets. I would like to take this opportunity to thank them, on behalf of the Board of Directors, for their hard work and commitment to the Bank. I would also like to acknowledge our Management for their able leadership which has seen the Bank grow over the years. Finally, I would like to express my sincerest appreciation to all other stakeholders from the regulators to our business partners, shareholders and customers for their continued support. We value all your contributions, which have helped us achieve all our successes to date, and are committed to keep growing so we can attain even greater heights in the Islamic banking space in the years to come.

Jen. Tan Sri Dato’ Seri Ismail Bin Haji Omar (Bersara)Chairman

17



CEO’S PERFORMANCE REVIEW


GROWTH IN NET

FINANCING

28.5%GROWTH IN PROFIT BEFORE ZAKAT AND

TAXATION

28.1%

The year 2015 was challenging for the banking sector in Malaysia - both Islamic and conventional - due to a bearish capital market and decline of our currency which, combined with an increase in US interest rates, led to capital outflow. This necessitated conscious efforts to increase our capital adequacy, hence competition and increased cost for deposits.

Despite the narrowing net profit margin (NPM) and challenging environment, however, AFFIN ISLAMIC continued to grow our overall financing and assets as compared to the previous year while increasing our profit before zakat and taxation (PBZT) by 28.1% to RM117.4 million year-on-year, exceeding the 2015 target by 16.7%.

This has been the result of conscientious efforts to strengthen the Bank at our core – building its fundamentals while strengthening our relationships with retail and commercial customers. We have continued to identify and segmentalise our key markets, and invest in products that are relevant and provide extra value to them.

FINANCIAL RESULTS

In defiance of the challenging environment, the Bank’s performance for the year ended 31 December 2015 was extremely encouraging, with positive results in all key financial parameters. AFFIN ISLAMIC achieved a total financing growth of 28.5% and experienced an increase in net financing, advances & other financing to RM9.2 billion with our net impaired financing ratio stable at 1.1%.

The bank’s deposit portfolio continued to grow, surpassing the RM10.0 billion mark, as a result of various collaborations with our parent, AFFINBANK. These included promotions such as the AFFIN Best Deposit Campaign, Merdeka Combo Campaign and Year End Bonanza 2015. Together, these enabled AFFIN ISLAMIC to end the year with total assets of RM13.4 billion, an expansion by 5.2% from the previous financial year.

In an increasingly competitive environment, it is more important than ever to operate at a high level of efficiency, and I am pleased to say that constant efforts towards this end have had a positive effect on our balance sheet. By managing our operating costs effectively, AFFIN ISLAMIC managed to improve our cost to income ratio from 55.48% in 2014 to 47.61%. This played a part in the increase in PBZT as reported above, and a 27.3% increase in profit after zakat and taxation from RM66.6 million to RM84.8 million.

BUSINESS INITIATIVES

We continued to explore different market segments in order to better understand consumers’ characteristics, needs and how we can better serve them.

Our marketing efforts were concentrated on channels that appeal to an increasingly more tech-savvy and ‘connected’ population via various online and social media interaction. During the year, we organised competitions on social media such as ‘Create Your Own Version of Raya Song’ and ‘Guess for an iPad’. Supplementing on our online efforts, we extended our reach to consumers belonging to Gen Y via more direct approach, such as presenting a talk geared specifically towards first-time home buyers during Prospek Hartanah.

These targeted efforts were supplemented by mass advertising in order to increase brand visibility among the public. We ran a nationwide advertisement campaign using digital displays at Giant hypermarkets, while also promoting Ar-Rahnu and AFFIN ISLAMIC Impian Haji, a Term Deposit-i campaign, on digital screens at selected locations.

18

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5


Ground breaking ceremony of Kompleks At-Tijarah AFFIN-UiTM.

Additionally, we created more awareness of our Term Deposit-i by advertising it on a highly visible billboard in Petaling Jaya. Other products were advertised in the New Straits Times daily and i-Property, Prospek Hartanah and Solusi magazines. The Bank collaborated with strategic business partners such as MARA, Management & Science University (MSU) and Universiti Teknologi MARA to organise events and create awareness on Islamic banking.

2015 also saw AFFIN ISLAMIC work with other Islamic banking institutions to raise the bar of Islamic financial services in the country, enabling Islamic banks to become financial intermediaries. In October, the Bank, along with five others chosen by Bank Negara Malaysia, set up a consortium - Raeed Holdings Sdn Bhd - to offer a Shariah compliant Investment Account Platform (IAP) providing investors the opportunity to fund businesses, corporates, new growth industries as well as entrepreneurs with viable projects.

The IAP is an exciting development as it marks the first cooperation among Islamic banks to create a new Shariah compliant investment avenue with attractive returns. The initiative is particularly beneficial to investors who do not have dedicated risk assessment resources, as this function will be overseen by the sponsoring banks. IAP will also be positioned to facilitate more public-private partnerships in financing strategic ventures within specific industries. Through the IAP, government agencies can identify viable ventures to invest in and create opportunities for the private sector to partially fund them. It is also envisaged for IAP to be eventually positioned to facilitated fund intermediation across borders.

The fact that AFFIN ISLAMIC was chosen by BNM to be part of this IAP speaks volumes of our credibility and integrity, which are qualities that we will continue to uphold as we serve our valued customers.

During the year, we also strengthened our position in the community via various contributions. Key among these were a RM4.5 million contributed to help build Kompleks At-Tijarah UiTM; and RM18,360 to Yayasan Kanser Malaysia (YKM). The amount channelled to YKM was partly derived from our AFFIN Barakah Charity Account-i, through which customers pledge a certain percentage of their monthly profits to charity. This year, RM20,000 from this savings account was also channelled towards Pemulihan Dalam Komuniti (PDK) Kasih Templer Autisma, which cares for children with autism and other special needs.

OUTLOOK & PROSPECTS

The year 2016 is going to be challenging for the banking industry, given the expected slowdown in both global and local economies. We expect intense competition for market share and more stringent regulatory requirement, therefore; it is essential for banks to manage the envolving of customer behaviours and expectations.

In response, AFFIN ISLAMIC together with our parent, AFFINBANK, are embarking on a comprehensive Strategic Transformation Programme that will analyze our position in the industry to capture greater growth, profitability and sustainability.

In 2016, we continue to invest in new product capabilities and infrastructure to seize opportunities offered by new affluent segments. Together, we will step up efforts to enhance our efficiency and productivity to establish a high-performance culture by integrating strategic functions of AFFIN ISLAMIC with AFFINBANK for greater operational effectiveness and optimal utilization of resources.

19




Distributing ‘duit raya’ to orphans from selected orphanages.

The bank will continue to safeguard strong asset quality, pursuing disciplined risk management framework, while maintaining best practices in corporate governance and adhering to the regulators’ capital and liquidity requirements. The launch of IAP with our partner banks will elevate our role in the expanding Islamic banking world. We will continue to launch innovative Shariah-based financial solutions and services to strengthen AFFIN ISLAMIC’s position as a premier local and international Islamic financial institution.

ACKNOWLEDGEMENTS

The Bank is at an exciting juncture in our onward journey. We have achieved much over the years, and in 2015, for which I would like to thank our various stakeholders - from our customers to our partners and investors as well as to our Board of Directors, Management Team and Shariah Committee members. To everyone who has contributed to AFFIN ISLAMIC, thank you for your support. Let us continue to work together for even better performance and results in the future.


Launching of Kompleks At-Tijarah AFFIN-UiTM.

20

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

CORPORATE DIARY

FEBPusat Zakat Perak

Contribution of RM364,800 to Pusat Zakat Perak was presented by Encik Kamarul Ariffin, Chief Executive Officer of AFFIN ISLAMIC during Corporate Zakat Presentation Ceremony which was graced by Duli Yang Maha Mulia Paduka Seri Sultan Nazrin Muizzuddin Shah, the Sultan of Perak. The ceremony was witnessed by Menteri Besar Perak,

Dato’ Seri Dr. Zambry Abdul Kadir.

JAN Zakat contribution to Pusat Zakat Melaka

AFFIN ISLAMIC contributed RM364,800 of its Zakat funds to eligible Asnaf of Pusat Zakat Melaka. The mock cheque was presented by Ustaz Mohd Faiz Rahim, Head of Shariah Supervisory to Yang Dipertua Negeri Melaka, Tun Mohd Khalil Yaakob during Sambutan Maulidur Rasul held at Bukit Falah, Melaka.

JANWakaf Desa Fahmi

A total of RM350,000 was contributed to Wakaf Desa Fahmi, a centre that offers accommodation to hardcore poor, homeless, neglected Muslims and tahfiz students. The mock cheque was presented by Deputy CEO AFFIN ISLAMIC, En. Ferdaus Toh Abdullah to Dr. Kamarolzaman Hajar, founder of

Wakaf Desa Fahmi.

MARYayasan Kanser Malaysia

Yayasan Kanser Malaysia, a non-profit organisation received donation of RM18,360.49. The amount was raised from customers’ dividends through AFFIN Barakah Charity Account-i, which provides customers the option to donate a certain percentage of their monthly earned Hibah (profit/dividend)

to a worthy cause.

APRIslamic Relief Malaysia

A mock cheque of RM15,000 zakat contribution was presented by Ustaz Helmi Afizal Zainal from Zakat Management to En. Zairulshahfuddin Zainal Abidin, Country Director of Islamic Relief Malaysia in a ceremony held at Bangi, Selangor. Islamic Relief Malaysia is a Non-Government Organisation (NGO) that provides humanitarian aid in Asia Pacific region.

JULZakat contribution to Management and

Science University (MSU)

Management and Science University (MSU) received a total of RM100,000 to assist Asnaf students and RM30,000 for MSU Mobile Clinic.The zakat contribution was presented by Deputy Chief Executive Officer of AFFIN ISLAMIC, En. Ferdaus Toh Abdullah to President of MSU, Prof. Tan Sri Dato’ Wira Dr. Mohd

Shukri Ab. Yajid.

OCTPusat Jagaan Bakti Cahaya Hati

AFFIN ISLAMIC spreads cheer and happiness to 45 children of Pusat Jagaan Bakti Cahaya Hati (PJBCH). The centre is a welfare home for orphans and underprivileged children. The mock cheque was presented by Head of Shariah Supervisory AFFIN ISLAMIC, Ustaz Mohd Faiz Rahim, to Puan Hajah Wahyuning, founder of PJBCH in Rawang, Selangor.

NOVMSU Islamic Finance Conference 2015

AFFIN ISLAMIC presented a seminar entitled Islamic Finance: Maturing Towards Sustainable Talent at MSU Islamic Finance Conference 2015. The event was attended by 800 students from universities around

Selangor and KL.

NOVMajlis Pelancaran Tabung Pendidikan

Kanak-kanak PDK Kasih Autisma

Ninety autistic and disabled children of PDK Kasih Templer Autisma, a community rehabilitation centre for autistic and disabled children received a contribution amounting to RM20,000 from AFFIN Barakah Charity Account-i. The mock cheque was presented by Chief Executive Officer of AFFIN ISLAMIC, En. Nazlee Khalifah and Deputy Chief Executive Officer, En. Ferdaus Toh Abdullah to Dato’ Saiful Bahri Abdul Hadi, Chairman of PDK Kasih Autisma at

Putrajaya Lake Club.

JUNGround breaking ceremony of Kompleks

At-Tijarah AFFIN-UiTM

The ground breaking ceremony of Kompleks At-Tijarah AFFIN UiTM which was funded by AFFINBANK & AFFIN ISLAMIC was held at UiTM Puncak Alam campus on 11 June. The ceremonious event was graced by Chairman of AFFINBANK & AFFIN ISLAMIC, YBhg. Jen. Tan Sri Dato’ Seri Ismail Hj. Omar (Bersara), Managing Director/CEO of AFFINBANK, En. Kamarul Ariffin Mohd Jamil, Chief Executive Officer of AFFIN ISLAMIC, En. Nazlee Khalifah, Deputy Chief Executive Officer of AFFIN ISLAMIC, En. Ferdaus Toh Abdullah, and Vice Chancellor of Universiti Teknologi Mara, YBhg. Tan Sri Dato’ Sri Prof. Ir. Dr. Sahol Hamid Abu Bakar. The first in UiTM, the complex of Islamic Centre consists of four components which are ‘Rukhsah’, Food &

Beverages, Da’wah and Medical & Health.

JULInternational Islamic University Malaysia

(IIUM) Hijrah Grand Iftar

In the month of Ramadhan, AFFIN ISLAMIC presented zakat contribution amounting RM100,000 to deserving students of International Islamic University Malaysia (IIUM). The mock cheque was presented by En. Nazlee Khalifah, Chief Executive Officer of Affin Islamic Bank Berhad to, The Honourable Tan Sri Dato’ Seri Utama Dr. Rais Yatim, Advisor to the Government of Malaysia and President of IIUM in a Hijrah Grand

Iftar held at IIUM Gombak.

JUL Majlis Penyampaian Sumbangan Angkatan

Tentera Malaysia (ATM)

AFFIN ISLAMIC contributed zakat funds amounting to RM700,000 to ‘Tabung Zakat Angkatan Tentera Malaysia’. The zakat contribution was presented by AFFIN ISLAMIC Independent Non-Executive Director, YBhg. Tan Sri Dato’ Sri Abdul Aziz bin Abdul Rahman, to Minister of Defence, YB Datuk Seri Hishammuddin Tun Hussein during Majlis Penyampaian Sumbangan Hari Raya Aidilfitri held at Ministry of Defence,

Kuala Lumpur.

21



CORPORATE DIARY

22

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

FINANCIAL HIGHLIGHTS

Earnings Per Share (EPS)Sen

Profit Before Zakat And TaxationRM’million

Total AssetsRM’billion

Net Financing, Advances & Other FinancingRM’billion

Deposits From CustomersRM’billion

Shareholders’ EquityRM’million

AFFIN ISLAMIC’s EPS for the financial year ended 31 December 2015 stood at 23.5 sen compared to 18.5 sen the year before with an increase of 27.0%.

‘15 23.5

‘14 18.5

‘13 16.4

‘12 25.8

AFFIN ISLAMIC achieved profit before zakat and taxation of RM117.4 million for the year ended 31 December 2015 with an increase of 28.1% compared with RM91.7 million in 2014.

‘15 117.4

‘14 91.7

‘13 87.3

‘12 106.4

AFFIN ISLAMIC’s financial position as at 31 December 2015 continued to remain strong with total assets of RM13.4 billion, an increase of 5.2% compared with RM12.7 billion as at 31 December 2014.

‘15 13.4

‘14 12.7

‘13 12.3

‘12 11.7

AFFIN ISLAMIC’s net financing, advances and financing grew by 28.5% to RM9.2 billion compared to RM7.2 billion in 2014.

‘15 9.2

‘14 7.2

‘13 6.0

‘12 5.1

Total deposits increased by 1.3% year-on-year to RM10.0 billion as at 31 December 2015 compared to RM9.9 billion in the year before.

‘15 10.0

‘14 9.9

‘13 9.3

‘12 9.0

Total shareholders’ equity of AFFIN ISLAMIC is RM954.8 million as at 31 December 2015 with an increase of 23.7% compared to RM772.1 million in 2014.

‘15 954.8

‘14 772.1

‘13 704.4

‘12 655.0

23



NETWORKOF BRANCHES

WILAYAH PERSEKUTUAN

1. Fraser20-G & 20-1,Jalan Metro Pudu,Fraser Business Park,55100 Kuala Lumpur.Tel : 03-9222 8877Fax : 03-9222 9877

SELANGOR

1. BangiNo.175 & 177 Ground Floor,Jalan 8/1, Seksyen 8,43650 Bandar Baru Bangi, Selangor.Tel : 03-8925 7333Fax : 03-8927 4815

2. MSU Shah AlamManagement & Science University,2nd Floor, University Drive,Persiaran Olahraga, Section 13,40100 Shah Alam, Selangor.Tel : 03-5510 0425Fax : 03-5510 0563

3. SS2161-163,Jalan SS2/24,47300 Petaling Jaya, Selangor.Tel : 03-7874 3513Fax : 03-7874 3480

NEGERI SEMBILAN

1. SenawangNo. 312-G & 312-1,Jalan Bandar Senawang 17,Pusat Bandar Senawang,70450 Seremban, Negeri Sembilan.Tel : 06-675 7066Fax : 06-675 7188

JOHOR

1. Taman MolekNo. 23, 23-01, 23-02,Jalan Molek 1/29,Taman Molek,81100 Johor Bahru, Johor.Tel : 07-351 9522Fax : 07-357 9522

PULAU PINANG

1. Juru Auto-CityNo. 1813A,Jalan Perusahaan, Auto-City,North-South Highway,Juru Interchange,13600 Prai, Pulau Pinang.Tel : 04-507 7422Fax : 04-507 6522 / 0522

KEDAH

1. JitraNo. 17, Jalan Tengku Maheran 2,Taman Tengku Maheran, Fasa 4,06000 Jitra, Kedah.Tel : 04-919 0888Fax : 04-919 0380

TERENGGANU

1. Kuala Terengganu63 & 63-A,Jalan Sultan Ismail,20200 Kuala Terengganu, Terengganu.Tel : 09-622 3725Fax : 09-623 6496

24

Affin

Isla

mic

Ban

k Be

rhad

(709

506-

V) |

Ann

ual R

epor

t 201

5

NOTICE OF ANNUAL GENERAL MEETING

AGENDA

1. To receive the Statutory Statements of Accounts for the year ended 31 December 2015 together with the Directors’ and Auditors’ Reports thereon.

2. To re-elect Assoc. Prof. Dr. Said Bouheraoua who retire pursuant to Article 68 of the Company’s Articles of Association and who, being eligible, offer himselves for re-election.

3. To consider and if thought fit, to pass the following resolutions in accordance with Section 129(6) of the Companies Act, 1965:

(a) That YBhg. Jen. Tan Sri Dato’ Seri Ismail bin Haji Omar (Bersara), retiring in accordance with Section 129(6) of the Companies Act, 1965, be and is hereby re-appointed as a Director of the Company to hold office until the conclusion of the next Annual General Meeting.

(b) That YBhg. Laksamana Madya Tan Sri Dato’ Seri Ahmad Ramli bin Mohd Nor (Bersara), retiring in accordance with Section 129(6) of the Companies Act, 1965, be and is hereby re-appointed as a Director of the Company to hold office until the conclusion of the next Annual General Meeting.

(c) That En. Mohd Suffian bin Haji Haron, retiring in accordance with Section 129(6) of the Companies Act, 1965, be and is hereby re-appointed as a Director of the Company to hold office until the conclusion of the next Annual General Meeting

(d) That YBhg. Tan Sri Dato’ Seri Mohamed Jawhar, retiring in accordance with Section 129(6) of the Companies Act, 1965, be and is hereby re-appointed as a Director of the Company to hold office until the conclusion of the next Annual General Meeting.

(e) That YBhg. Tan Sri Dato’ Sri Abdul Aziz bin Abdul Rahman, retiring in accordance with Section 129(6) of the Companies Act, 1965, be and is hereby re-appointed as a Director of the Company to hold office until the conclusion of the next Annual General Meeting.

4. To approve the payment of Directors’ fees and Committees’ fees for financial year ended 31 December 2015.

5. To re-appoint Messrs PricewaterhouseCoopers as Auditors for the financial year ending 31 December 2016 and to authorise the Directors to fix their remuneration.

6. To transact any other ordinary business of the Company.

BY ORDER OF THE BOARD

NIMMA SAFIRA BINTI KHALIDSecretary

NOTE:1. A member entitled to attend and vote at the Meeting is entitled to appoint a proxy to attend and vote instead of him and the proxy need not be a

member of the Company.

The instrument appointing a proxy shall be in writing under the hand of the appointor or his attorney duly authorised in writing or, if the appointor is a corporation, either under the seal or in some other manner approved by Directors.

The instrument appointing a proxy and the power of attorney or other authority, if any, under which it is signed or a notarially certified copy of such power or authority shall be deposited at the Company’s registered office at the 17th Floor, Menara Affin, 80, Jalan Raja Chulan, 50200 Kuala Lumpur, at least forty-eight (48) hours before the time appointed for holding the Meeting or adjourned Meeting as the case may be otherwise the person so named shall not be entitled to vote in respect thereof.

2. Reference is made to Recommendation 3.2 and 3.3 of the Malaysian Code on Corporate Governance 2012 which states that the tenure of an Independent Director should not exceed a cumulative term of nine (9) years.

Tan Sri Dato’ Seri Mohamed Jawhar and En. Mohd Suffian bin Haji Haron have served on the Board as Independent Non-Executive Directors for a cumulative term exceeding nine (9) years, however, they remain independent as they are free from any business or other relationship, which could interfere with the exercise of independent judgement or the ability to act in the best interest of the Company. The Nominating Committee and the Board have determined at the annual assessment carried out that Tan Sri Dato’ Seri Mohamed Jawhar and En. Mohd Suffian bin Haji Haron remain independent in mind and character. They participate actively in the Board as well as Board Committees’ deliberations and decision making.

NOTICE IS HEREBY GIVEN THAT THE 10TH ANNUAL GENERAL

MEETING OF AFFIN ISLAMIC BANK BERHAD

WILL BE HELD AT THE BOARD ROOM,

19TH FLOOR, MENARA AFFIN,

80, JALAN RAJA CHULAN, 50200

KUALA LUMPUR ON TUESDAY,

22 MARCH 2016 AT 8.30 A.M. FOR

THE TRANSACTION OF THE FOLLOWING

BUSINESSES:-

25



AFFIN ISLAMIC BANK BERHAD (709506-V)

17th Floor, Menara AFFIN, 80, Jalan Raja Chulan,50200 Kuala LumpurT : 03 2055 9000F : 03 2026 1415www.affinislamic.com.my

Documents

Annual Report 2015 - Affin Islamic Bank Berhad Rep… · EXECUTIVE SUMMARY 14 Chairman’s ... He is also the Chairman of Boustead Heavy Industries Corporation Berhad, ... Straits