SPECIAL BRIEFING TO DELEGATES FROM THE … DE CHANGE SMS BANKING CORPORATE DESKTOP ... 2 CBC Batu Pahat JHR 02 Oct 2009 ... 5 CBC Universiti Darul Iman Malaysia / UniSZA TRG 12 Aug

SPECIAL BRIEFING TO DELEGATES FROM THE FINANCIAL ACCESS FOR INVESTING

AND DEVELOPMENT OF AFGHANISTAN (FAIDA) PROJECT

Hizamuddin JamalluddinFebruary 2013

Strictly Private & Confidential

Managing Director’s Office 2

CORPORATE OVERVIEW


CORPORATE INFORMATION

4

Shareholders Number of Shares Shareholdings

BIMB Holdings Berhad^ 1,155,400,000 51%

Dubai Investment Group 690,196,000 30.5%

Lembaga Tabung Haji 419,894,000 18.5%

Issued Share Capital 2,265,490,000 100%

Bank Islam was incorporated on 1 March 1983 to become Malaysia’s pioneer bank to operate wholly according to Shariah principles

Bank Islam was licensed under Islamic Banking Act 1983

^ Lembaga Tabung Haji (Pilgrimage Funds Board) is deemed as the ultimate controlling shareholder of Bank Islam by virtue of its 51% controlling stake in BIMB Holdings Bhd

Managing Director’s Office

CORPORATE STRUCTURE


OUR SHAREHOLDERS


• Lembaga Tabung Haji (18.5%)Lembaga Tabung Haji (Pilgrim Fund Board) (TH) is a government controlled entity that was established mainly to assist Muslims in saving gradually for the purpose of pilgrimage. TH manages a fund size exceeding RM30 bil. Currently, TH controls at least 6 listed companies in Bursa Malaysia that are involved in banking, Takaful, palm oil plantation, property development, construction and IT services. TH is highly determined to make each business and investment venture a roaring success at home and abroad. It has also made an impressive mark in its asset management as well as in facilitating various Islamic investment instruments such as sukuk/bonds, corporate notes, Government Investment Certificates, Mudharabah Bank Account and Bill of Acceptance.

• BIMB Holdings Bhd (51%)BIMB Holdings was incorporated in Malaysia on 20 March 1997 and was listed on the Main Board of Kuala Lumpur Stock Exchange (now Bursa Malaysia) on 16 September in the same year. The core subsidiaries of BIMB Holdings are leaders and pioneers of various Islamic financial services in the region, namely Bank Islam Malaysia Berhad, Syarikat Takaful Malaysia Berhad, ASEAN Retakaful International (L)

• Dubai Financial Group LLC(30.5%)Dubai Financial Group is the financial holding company of Dubai Group, focusing on identifying opportunities across the banking, foreign exchange, brokerage and asset management areas. It currently covers three regions – South East Europe and the Balkans, the Middle East and North Africa (MENA) region and Asia. Its portfolio currently includes the following companies, in which it has significant stakes: 19% stake at Marfin Popular Bank in Greece; 16% stake in Marfin Investment Group; 12% stake in Global Investment House, one of the major investment companies in the Gulf region; 25% EFG-Hermes, one of the top investment banks in the MENA region; 15% stake in Bank Muscat, Oman’s largest retail and corporate bank; 10% in Sun Hung Kai Financial, Hong Kong and Borse Dubai, the holding company of Dubai Financial Market and Dubai International Financial Exchange

VISION STATEMENT

““To be a Global Leader in Islamic BankingTo be a Global Leader in Islamic Banking””

““Global LeaderGlobal Leader”” is defined as being the ultimate guidance and source of referenis defined as being the ultimate guidance and source of reference for ce for innovative Shariahinnovative Shariah‐‐based products & servicesbased products & services

7Managing Director’s Office

MISSION STATEMENTTo continually develop and innovate universally accepted financial solutions in line with Shariah principles

To provide a reasonable and sustainable return to shareholders

To provide a conducive working environment and to become an Employer of Choice for top talents in the market

To deliver comprehensive financial solutions of global standards using state-of-the-art technology

To be a responsible and prudent corporate citizen

In carrying out this corporate mission, Bank Islam shall be guided by its corporate brand values of being: A Leader, Dynamic, Professional, Caring and Trustworthy


CORPORATE VALUES


NOTABLE ACHIEVEMENTS


OVERSIGHT STRUCTURE


OVERSIGHT STRUCTURE


BOARD OF DIRECTORS


SHARIAH SUPERVISORY COUNCIL


1. Dr Muhammad Syafii Antonio 2. Professor Dr Ahmad Hidayat Buang 3. Sheikh Dr. Ahmed Mohieldin Ahmed 4. Dr. Ahmad Shahbari @ Sobri Salamon 5. Ustaz Mohd Bakir Haji Mansor 6. Assistant Professor Dr. Uzaimah Ibrahim7. Mohd Nazri Chik

1 2 3 4 5 6 7

ORGANIZATION STRUCTURE


BUSINESS & OPERATIONS


A UNIVERSAL LICENSE


BANK ISLAM POSITIONING

18

… growing recognition that the inherent tenets of Islamic finance are aligned to sustainable dimensions of ethical banking and responsible financing.


SERVICE DELIVERY CHANNELS


BRANCH NETWORKS

INTERNET BANKING

CONSUMER BANKING CENTERS

AR RAHNU OUTLETS

BUREAU DE CHANGESMS BANKING

CORPORATE DESKTOP BANKING

ELECTRONIC BANKING CENTERS

BRANCH NETWORKS


…127 branches as at end of 2012… 6 new branches in 2013 …150 branches by 2015

Perlis - 1

Kedah - 10

Kelantan - 9Pulau Pinang - 5

Perak - 9

Pahang - 9

Terengganu - 5

Selangor & KL - 25

NegeriSembilan -5

Melaka - 4

Johor - 14

Sarawak - 7

Sabah - 5

Labuan- 1

SELF SERVICE TERMINALS (ATM, CDM & CQM)


ATM – 8 CDM – 4

CQM – 1 SP - 1

Location Type ATM

CDM CQM SP Total

Branch 271 197 109 43 620

Shopping Centers 94 14 4 1 113

Academic Buildings

119 19 4 4 146

Corporate Offices 69 28 11 4 112

Others 132 48 1 0 183

Total 685 306 129 52 1172

ATM – 31 CDM – 12

CQM – 6 SP -1

ATM – 30 CDM – 15

CQM – 6 SP -3

ATM – 2 CDM – 1

CQM – 1 SP - 1

ATM – 57 CDM – 26

CQM – 13 SP -4

ATM – 49 CDM –27

CQM – 10 SP - 4

ATM – 62 CDM – 34

CQM – 11 SP - 4

ATM – 39 CDM – 16

CQM – 6 SP - 1

ATM – 30 CDM – 12

CQM – 3 SP - 1

ATM – 38 CDM – 21

CQM – 7 SP - 2

ATM – 50 CDM – 17

CQM – 10 SP - 7

ATM -148 CDM – 53

CQM – 26 SP - 10

ATM – 31 CDM – 14

CQM – 6 SP -2

ATM – 78 CDM- 37

CQM – 16 SP – 7

ATM – 32 CDM – 17

CQM – 7 SP - 4

ATM – Automated Teller MachineCDM – Cash Deposit MachineCQM – Cheque Deposit MachineSP – Statement Printer

CONSUMER BANKING CENTERS


Kelantan (2)

Terengganu (1)

Penang (1)

Perak (1)

Selangor (2)

Negeri Sembilan (1)

Melaka (1)

Johor (1)

…currently, 10 CBCs… another 1 new CBCs by end of 2012 ( in Sarawak)… as part of the “Spoke & Hub” business model

No. Location State Day 1 1 CBC Padang Garong KLN 01 Mar 20092 CBC Batu Pahat JHR 02 Oct 20093 CBC Ar-Rahnu KB KLN 10 Jun 20104 CBC UiTM Puncak Alam SGR 25 Jun 20105 CBC Universiti Darul Iman Malaysia / UniSZA TRG 12 Aug 20106 CBC Seberang Jaya PNG 17 Feb 20117 CBC Bandar Melaka MLK 09 Sept 20118 CBC USIM NS 20 Jan 20129 CBC Space U8, Bukit Jelutong SGR 09 Mar 2012

10 CBC Universiti Pendidikan Sultan Idris, Tajung Malim PRK 04 May 2012

AR RAHNU OUTLETS


Kota Bharu Outlet

Pasir Puteh Outlet

Pasir Mas Outlet

Tanah Merah Outlet

…another 3 outlets (Kuantan, Kuala Trengganu & Kubang Kerian)

No. Location State Day 11 Kota Bahru KLN 10 Jun 2010

2 Pasir Puteh KLN 15 Jul 2010

3 Pasir Mas KLN 29 Jul 2011

4 Tanah Merah KLN 28 Jun 2012

BUREAU DE CHANGE (“BDC”)


…currently, 4 BDCs… another 1 new BDCs (Penang International Airport ) by end of Dec 2012

Kota Kinabalu International Airport

Contact Pier, Kuala Lumpur International Airport

KLIA - LCCT

Penang International Airport*

Bukit Bintang BDC

No. Location State Day 1 1 LCCT, Sepang SGR 15 Dec 2008

2 Contact Pier International, KLIA SGR 01 Oct 2010

3 Bukit Bintang KL 03 Dec 2010

4 Kota Kinabalu International Airport SBH 26 Jul 2012

CAPITAL MARKET - SUKUK

25

RM1.0 billionIstisna’

Projek Usahasama Transit Aliran RinganJoint Arranger & Shariah Advisor

RM2.2 billionBaIDS

KL International Airport BerhadSole Lead Arranger

RM1.5 billionAl-Ijarah Muntahiyah Bit-Tamlik

Kumpulan Guthrie BerhadStructuring & Shariah Advisor

USD150.0 millionSukuk Al Ijarah

First Global Sukuk IncSole Lead Arranger

USD600.0 millionSukuk Al Ijarah

Malaysia Global Sukuk IncCo-Arranger

RM1.28 billionBaIDS

SAJ Holdings Sdn BhdJoint Lead Arranger/Lead Manager & Shariah Advisor

RM752.2 millionMudharabah Sukuk

Manfaat Tetap Sdn BhdShariah Advisor

RM200.0 million BBA CPs RM3.0 billion BBA MTNs

Syarikat Bekalan Air Selangor Sdn BhdJoint Lead Arranger & Shariah Advisor

RM1.5 billion Islamic Medium Term Notes Programme

Malaysia Debt Ventures BerhadJoint Lead Manager

RM200.0 million Bai’ Murabahah Medium Term Notes Programme

TH Plantations BerhadJoint Lead Arranger & Shariah Advisor


RECENT NOTABLE TRANSACTIONS

26

RM4.0 billionIjarah Medium Term Notes Programme

Syarikat Prasarana Negara BerhadCo-Manager

RM500.0 millionBank Guaranteed Sukuk Ijarah

Aras Sejagat Sdn BhdJoint Lead Arranger &Joint Lead Manager

RM4.0 billionSukuk Musyarakah

Plus SPV BerhadJoint Book Runner

RM327.0 millionSyndicated Islamic Financing Facility

Prolintas Expressway Sdn BhdLead Arranger

RM330.0 millionSyndicated Islamic Financing Facility

Kedah Sato Sdn BhdLead Arranger

USD150.0 million*Syndicated Islamic Financing Facility

Qatar Airways Q.C.S.CArranger

* Ijarah Deal of the Year 2009 – Islamic Finance News* Qatar Deal of the Year 2009 – Islamic Finance News* Best Islamic Structured Financing – The Asset Triple A Islamic Finance Awards 2010

RM10.0 billionIslamic Medium Term Notes Programme

Aman Sukuk BerhadJoint Lead Manager &Shariah Adviser

RM800.0.0 millionSyndicated Islamic Financing Facilities

Aura Bayu Sdn BhdSenior Manager

RM667.5 millionSyndicated Project Financing Facilities

Ranhill Powertron II Sdn BhdSenior Manager

RM5.0 billion**Islamic Securities Programme

Manjung Island Energy BerhadJoint Principal Adviser/ Lead Arranger/ Lead Manager/ Shariah Adviser

** Ijarah Deal of the Year 2011 – Islamic Finance News** Asia Pacific Bond Deal of the Year – Project Finance

International** RAM Blueprint Award 2011


CORPORATE FINANCE

27

Y.S.P. Southeast Asia Holding Berhad

Renounceable Two-Call Rights Issue of 27.7 million ordinary

shares of RM1.00 each in YSPSAH at an issue price of

RM1.00 per rights share

Main Adviser

ES Ceramics Technology

Berhad

Exemption from the obligation to undertake

mandatory take-over offer arising from a rights issue

Independent Adviser

Akarmas Sdn Bhd

Conditional Mandatory Take-over Offer by

Akarmas Sdn Bhd to acquire all the

remaining ordinary shares of RM1.00 each

in PK Resources Berhad for a cash consideration of RM0.60 per share

Main Adviser

Listing of APFT Berhad on the Main Market

of Bursa Malaysia Securities Berhad

Main Adviser

APFT Berhad

Listing of Focus Lumber Berhad

on the Main Market of Bursa

Malaysia Securities Berhad

Main Adviser

Focus Lumber Berhad

Astral Asia Berhad

Joint venture between related parties to jointly

develop a piece of leasehold land into mixed

property development

Independent Adviser

Acquisition of the entire equity interest in Asian Corporation

Limited for a total cash consideration of RM11 million

Main Adviser

Listing of PESTECH International

Berhad on the Main Market

of Bursa Malaysia Securities Berhad

Main Adviser

TH Plantations Berhad•Acquisitions of Syarikat Sabaco Sdn Bhd and Ladang Bukit Belian Sdn Bhd from TH Ladang (Sabah & Sarawak) Sdn Bhd for a total purchase consideration of RM199 million

•Bonus Issue•Employees’ Share Option Scheme

Main Adviser

Exemption from the obligation to undertake

Mandatory Take-over Offer arising from the acquisition of Syarikat Sabaco Sdn Bhd from TH Ladang (Sabah &

Sarawak) Sdn Bhd

Main Adviser

Lembaga Tabung Haji


2012 RANKING – MALAYSIA'S 100 LEADING EMPLOYER


38. Bank Islam (2011 – 62 place)

FINANCIAL HIGHLIGHTS


PROFIT BEFORE ZAKAT & TAX


Turnaround Plan Sustainable Growth PlanBuilding strong foundation (i.e. good credit portfolio and operation)Rebuilt infrastructure (risk management, IT, delivery network and etc)Enhanced Capability (Skill-set & competency)

RM

mill

ion

ASSETS GROWTH


Turnaround Plan Sustainable Growth PlanRecapitalizationBalance Sheet RestructuringRejuvenate Bank Islam brand

Rebuilding Strong Credit PortfolioOptimizing Balance Sheet MixCustomer centric focus

RM

mill

ion

FINANCINGS GROWTH


…still primarily a retail bank

“Putting the House in Order”Revamp Business Model

New Credit ScorecardRisk based Target MarketFocus on Secured Financing

RM

mill

ion

Gross Financing by Business Unit

3,696.6 (62.7)641.3 1,110.0

ASSET QUALITY


RM million Dec 10* Mar 11*June 11* Sept 11* Dec 11* Mar 12 June 12 Sept 12 Dec 12

Gross Impaired Financing 552 551 556 551 380 351 331 322 309Gross Financing 12,283 12,855 13,253 13,740 14,564 15,327 16,828 18,571 19,949

Individual Assessment 79 88 79 108 76 72 72 72 127Collective Assessment 347 342 349 338 328 341 345 348 313

Net Impaired Financing 126 121 128 105 (24) (62) (86) (98) (132)

Gross Impaired Financing Ratio 4.50% 4.29% 4.19% 4.01% 2.61% 2.29% 1.97% 1.74% 1.55%Net Impaired Financing Ratio 1.06% 0.98% 0.99% 0.79% -0.17% -0.42% -0.53% -0.54% -0.67%

* Restated arising from change in accounting policy on the determination of collective assessment allowance under MFRS 139

CUSTOMERS’ DEPOSIT


Growth+ 15.1%

of which Al-Awfar

7032.5%

of which Al-Awfar

1120.4%

of which Al-Awfar1,1213.6%

of which Al-Awfar

1090.4%

KEY FINANCIAL RATIOS


AuditedFY

June 07

AuditedFY

June 08

Audited FY

June 09

ActualFYE Dec 2010**

Audited FY

Dec 11 **

Audited Dec 12

IslamicBanking System

Banking System

PROFITABILITY

Return on equity (%) – based on PBT 23.3% 26.5% 16.5% 14.4% 18.5% 20.4% ^ 13.7% * 17.4% *

Return on assets (%) – based on PBT 1.4% 1.5% 0.9% 1.2% 1.6% 1.7% ^ 1.0% * 1.6% *

Cost Income Ratio (%) 68.2% 60.8% 56.7% 55.4% 53.8% 51.4% 45.0% * 46.0% *

Non-Fund Based Income Ratio (%) 9.0% 7.8% 10.3% 10.8% 13.8% 13.5% 9.4% * 20.4% *

ASSET QUALITY

Gross Non-Performing/Impaired Financing Ratio (%) 24.7% 21.2% 16.4% 4.5% 2.6% 1.6% 1.7% # 2.2 % #

Net Non-Performing/Impaired Financing Ratio - Less IA & CA (%) 11.4% 7.8% 6.7% 1.1% -0.2% -0.7% -0.5% # 0.1% #

Financing Loss Coverage Ratio (%) 67.7% 75.8% 80.8% 77.2% 106.2% 142.6% 119.3% # 68.1% #

EFFICIENCY

Financing to Deposits (%) 57.6% 52.0% 43.5% 45.7% 51.5% 61.2% 59.9% # 78.4% #

CAPITALISATION

RWCR (%) – before proposed dividend 12.0% 12.9% 13.6% 16.8% 16.9% 14.1% 14.3% # 15.2% #

^ Annualised * Bank Negara Malaysia Annual Report 2011 # Bank Negara Malaysia Monthly Statistical Bulletin @ Jan 2013 ** Restated arising from adoption of MFRS

…healthy capitalization

…financing-to deposit ratio inching closer to optimum level

…cost income ratio continue to trend downwards

…commendable post 2006 asset quality

CORPORATE BLUEPRINT :MOVING FORWARD


CORPORATE MASTER PLAN/BLUE PRINT


OCT 2006 – JUNE 2009 JULY 2009 – DEC 2012

…in our pursuit to be a “Global Leader in Islamic Banking”

JAN 2013 – DEC 2015

SUSTAINABLE GROWTH PLAN… ENDED DEC 2012


HIJRAH TO EXCELLECE PLAN – JAN 2013 TO DEC 2015


www.bankislam.com .my


THANK YOU

Disclaimer: This presentation material has been prepared by Bank Islam Malaysia Berhad (the Bank”) for information purposes only and does not purport to contain all the information that may be required to evaluate the

Bank or its financial position. No representation or warranty, express r implied, is given by or on behalf of the Bank as to the accuracy of the information or

opinions contained in this presentation. The presentation does not constitute or form part of an offer, solicitation or invitation of any offer, to buy or

subscribe for any securities , nor should it or any part of it form the basis of, or be relied in any connection with, any contract, investment decision or

commitment whatsoever. The Bank does not accept any liability whatsoever for any loss howsoever arising from any use of this presentation or their

contents or otherwise arising in connection therewith.

BANK ISLAM MALAYSIA BERHADExecutive Suite, Menara Bank Islam 22, Jalan Perak 50450 Kuala Lumpurwww.bankislam.com.my

Stakeholders’ Relation Contact:

Hizamuddin JamalluddinGeneral Manager, Strategic Planning & Managing Director’s OfficeTel: 603 2088 [email protected]

Haryati YahyaSenior Manager, Managing Director’s OfficeTel 603 2088 [email protected]

Documents

SPECIAL BRIEFING TO DELEGATES FROM THE … DE CHANGE SMS BANKING CORPORATE DESKTOP ... 2 CBC Batu Pahat JHR 02 Oct 2009 ... 5 CBC Universiti Darul Iman Malaysia / UniSZA TRG 12 Aug