ANNUAL REPORT 2020
STRATEGIC RECALIBRATION Recalibrated Forward23+ strategy to deliver sustainable financial returns - page 37
CONTINUED RESILIENCE Underlying business remains resilient and well-capitalised against shocks - page 40
ACCELERATING RECOVERY Reshaping our portfolio with focused investments to drive growth - page 44
Delivering Sustainable Disciplined Customer Transform Purpose-Driven Financial Returns Execution Centricity Fundamentals Organisation TO BE THE LEADING FOCUSED ASEAN BANK Reducing the Environmental Impacts of this Annual Report We have taken conscious efforts to manage and minimise the environmental impact of our There is annual report and related processes. approximately 45% However, you can make the greatest difference. reduction Paper and printing in paper used, Did you know that the equivalent of one 436,400 wastes are football field of forest is cut down every less sheets in being second? Play your part. If you can, download the printing and responsibly the soft copy of CIMB’s Annual Report, production of CIMB handled Printed with Annual Report 2020 Financial Statements and Sustainability Report, Paper sourced to recycle and compared to our instead of requesting for a hard copy. eco ink from responsibly up-cycle materials in made from higher 2019 Annual Report. order to reduce the percentage of vegetable managed forests burden on landfills. oil to reduce emission of that provide volatile organic environmental benefits. compounds (VOCs). Covers are printed on Contains low levels of 300gsm Xtella Brilliant chemicals, thus White (FSC Mix) paper; Inner pages are less pollution printed on 128gsm to the environment Printed with carbon Xtella Brilliant White throughout the printing (FSC Mix) paper. process. neutral press machines, eco materials and managed under and certified with ISO 14001:2015 environmental management system to minimise environmental impact.
View our Annual Report, Accounts and other information about CIMB Group Holdings Berhad at www.cimb.com Reducing the Environmental Impacts of this Annual Report We have taken conscious efforts to manage and minimise the environmental impact of our There is annual report and related processes. approximately 45% However, you can make the greatest difference. reduction Paper and printing in paper used, Did you know that the equivalent of one 436,400 wastes are football field of forest is cut down every less sheets in being second? Play your part. If you can, download the printing and responsibly the soft copy of CIMB’s Annual Report, production of CIMB handled Printed with Annual Report 2020 Financial Statements and Sustainability Report, Paper sourced to recycle and compared to our instead of requesting for a hard copy. eco ink from responsibly up-cycle materials in made from higher 2019 Annual Report. order to reduce the percentage of vegetable managed forests burden on landfills. oil to reduce emission of that provide volatile organic environmental benefits. compounds (VOCs). Covers are printed on Contains low levels of 300gsm Xtella Brilliant chemicals, thus White (FSC Mix) paper; Inner pages are less pollution printed on 128gsm to the environment Printed with carbon Xtella Brilliant White throughout the printing (FSC Mix) paper. process. neutral press machines, eco materials and managed under and certified with ISO 14001:2015 environmental management system to minimise environmental impact.
View our Annual Report, Accounts and other information about CIMB Group Holdings Berhad at www.cimb.com About This Report
At CIMB Group, our REPORTING SCOPE AND BOUNDARIES aspiration is to build a high This Annual Report covers our financial and non-financial performance during the performing sustainable period 1 January 2020 to 31 December 2020. organisation to help Through this report, it is our sincere effort to keep our stakeholders abreast of key advance customers and developments; programmes and initiatives; market challenges and business solutions; our achievements; mid- to long-term direction; and the overall health of operations in society. Towards fulfilling 2020 in various geographical markets where we operate. The report also presents rich this purpose, we embrace insights and forward-looking statements on financial position and performance in the year ahead. principles of good governance, responsible Our report is particularly relevant for our stakeholders in the ASEAN markets of Malaysia, Indonesia, Singapore, Thailand, Brunei, Cambodia, Myanmar, Vietnam and banking and Values-based Laos. A range of other stakeholders across the globe will also find our report Intermediation. We also informative. take an inclusive approach Our financial statements are independently audited and provide in-depth and to planning and delivering transparent disclosure of our financial performance. Unless we indicate otherwise, all the data presented relates to the Group, which includes our banking operations and our our growth strategies. Our subsidiaries. efforts are always focussed In preparing our report, we were guided by the requirements of local and international on going beyond meeting statutory and reporting frameworks, including those of Bursa Malaysia. immediate expectations of our most critical stakeholders, to deliver NAVIGATION ICONS shared value, which is all about helping them shape a better future. Our Annual STAKEHOLDERS KE Y MARKE T TR ENDS Impacts of COVID-19 & Report is a true account of Financial Market Proliferation of Shareholders/ Accelerated Digital New Competitors Employees Regulators Trends & Fluctuations Technology our performance, our ability Investors Penetration Economic, Geopolitical and to overcome challenges, and Shifting Policy and Environmental, Social Customers of the Customers Suppliers Communities Economic Regulatory Landscape and Governance Future Developments optimise our potential as a (EES&G) Factors purpose-driven business. ‘FutureForward’ is our STRATEGIC THEME S RISKS Delivering Non-Financial Risk: Customer Purpose-driven Non-Financial Risk: endeavour to make Sustainable Credit Risk Shariah Non- Country Risk Centricity Organisation Fraud Risk business a force for good, a Financial Returns Compliance Risk Non-Financial Risk: Disciplined Transform Liquidity & Funding Market Risk Business Continuity Sustainability Risk catalyst to a better planet Execution Fundamentals Risk and a sustainable future. Risk Non-Financial Risk: Non-Financial Risk: Interest Rate Risk in CAPITALS Operational Risk Technology Risk The Banking Book
Financial Manufactured Social MATERIAL MATTERS Sustainability Human Intellectual Natural Climate Change Diversity and Inclusion Awareness and Technology Participation Financial Literacy, Corporate Citizenship Inclusion and Well- Sustainable Finance and Volunteerism being
Corporate Culture Governance Sustainable Supply Chain
Health, Safety and Talent Attraction, Growth Customer Experience Well-being and Retention MATERIALITY STATEMENT OF THE BOARD OF DIRECTORS OF All our Annual Reports present a balanced and accessible CIMB GROUP HOLDINGS BERHAD assessment of our strategies, performance, governance, The Board acknowledges its responsibility to ensure the sustainability and prospects. integrity of the Annual Report. In the Board’s opinion, the report addresses all material issues and matters and fairly The various matters and developments included in the 2020 presents the Group’s performance for the year 2020. edition were determined by a range of considerations, such as quantitative and qualitative criteria; issues likely to impact our Approved by the Board of Directors and signed on behalf of ability to deploy our strategies or create shared value and sustain the Board: financial and non-financial performance; the matters covered in reports presented to our Board of Directors; the risks identified by our risk management team; and the interests of our key stakeholders. We also consider factors that affect the economic, environmental, social and governance landscape in various countries and regions where we conduct business. Datuk Mohd Nasir Ahmad Dato’ Abdul Rahman Ahmad INTEGRATED APPROACH Chairman Group Chief Executive Officer/ In documenting our reports, our attempt is to establish clear Executive Director linkages between our business performance and various internal and external factors or influences such as market trends, stakeholder expectations, organisational priorities, regulatory regime, competitive strategies, national agenda, and global best practices. In 2020, we have also adopted various principles prescribed by the International Integrated Reporting Council.
NAVIGATION ICONS
STAKEHOLDERS KE Y MARKE T TR ENDS Impacts of COVID-19 & Financial Market Proliferation of Shareholders/ Accelerated Digital New Competitors Employees Regulators Trends & Fluctuations Technology Investors Penetration Economic, Geopolitical and Shifting Policy and Environmental, Social Customers of the Customers Suppliers Communities Economic Regulatory Landscape and Governance Future Developments (EES&G) Factors
STRATEGIC THEME S RISKS Delivering Non-Financial Risk: Customer Purpose-driven Non-Financial Risk: Sustainable Credit Risk Shariah Non- Country Risk Centricity Organisation Fraud Risk Financial Returns Compliance Risk Non-Financial Risk: Disciplined Transform Liquidity & Funding Market Risk Business Continuity Sustainability Risk Execution Fundamentals Risk Risk
Non-Financial Risk: Non-Financial Risk: Interest Rate Risk in CAPITALS Operational Risk Technology Risk The Banking Book
Financial Manufactured Social MATERIAL MATTERS Sustainability Human Intellectual Natural Climate Change Diversity and Inclusion Awareness and Technology Participation Financial Literacy, Corporate Citizenship Inclusion and Well- Sustainable Finance and Volunteerism being
Corporate Culture Governance Sustainable Supply Chain
Health, Safety and Talent Attraction, Growth Customer Experience Well-being and Retention What’s Inside This Report
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Footprint in Technology Internet/ Enquiries and Branch Ratio or No. of ATMs/ Mobile Banking Transactions Physical Customer Customers via Online Touchpoints Touchpoints Platforms per Customer 8UEDQ5XUDO SOCIAL & RELATIONSHIP CAPITAL 2XUEUDQGLVVWUHQJWKHQHGE\WKHUHODWLRQVKLSVDQGWKHWUXVWWKDW Inputs Outputs ZHEXLOGZLWKRXUVWDNHKROGHUV%HLQJDUHJLRQDO*URXSVRFLDO QHWZRUNVDQGUHODWLRQVKLSHTXLW\KHOSIRUJHSDUWQHUVKLSV No. of Customers Customer Satisfaction H[SDQGRXUFXVWRPHUEDVHDQGEXLOGHFRV\VWHPVZLWKVKDUHG Score/NPS score SXUSRVHSULQFLSOHVDQGSURJUHVV Contributions to Sustainability Index :HZRUNZLWKRXUZLGHQHWZRUNRIVWDNHKROGHUVWRFUHDWHDVWDEOH Community Ratings ȴQDQFLDOVHUYLFHVHQYLURQPHQWIRUWKHFRXQWULHVZKHUHZH RSHUDWH2XUUHJLRQDOQHWZRUNDQGEUDQGHTXLW\LPSURYHRXU VRFLDODQGUHODWLRQVKLSFDSLWDOZKLOHVWUHQJWKHQLQJRXUSRVLWLRQLQ ASEAN Clients/ ASEAN Trade Financing/ $6($1 Networks Transactions 8 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Capitals: Inputs and KPIs NATURAL CAPITAL 2XURSHUDWLRQVDVZHOODVWKHFOLHQWVWKDWZHVXSSRUWFRQVXPHZDWHUHQHUJ\DQGRWKHUUDZPDWHULDOVDQGSURGXFHZDVWHDQG HPLVVLRQV2XUPDQDJHPHQWRIQDWXUDOFDSLWDOUHVWVRQPLQLPLVLQJRXUGLUHFWDQGLQGLUHFWQHJDWLYHIRRWSULQWDFURVVWKHYDOXHFKDLQDQG FUHDWLQJSRVLWLYHKDQGSULQWVWKURXJKVWUDWHJLFEXVLQHVVLQWHUYHQWLRQVΖWDOVRLQFOXGHVRXULQYHVWPHQWVLQWRSULRULW\6'*VDQGDVVHW DOORFDWLRQLQWR*UHHQ6XVWDLQDEOHΖPSDFWORDQVDFWLYLWLHVDQGSURMHFWV:KLOHRXUDVSLUDWLRQLVWRPHDVXUHPDQDJHDQGUHSRUWERWK GLUHFWDQGLQGLUHFWLPSDFWVFXUUHQWO\ZHDUHSULRULWLVLQJRXUGLUHFWIRRWSULQW Inputs Outputs Electricity Use Energy Use Green and Reduction in Energy Returns on N:K N:K Sustainable Scope 1 and Intensity Green and Impact Scope 2 GHG Sustainable products Emissions Impact Intensity (QYLURQPHQW (Direct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nputs RZQSHUVRQDODQGSURIHVVLRQDOJURZWK Development of New Digital Solutions or Technologies 2XUXOWLPDWHREMHFWLYHLVWRLPSURYHRXUKXPDQFDSLWDO'PL[ GLYHUVLW\LQFOXVLRQDQGZHOOEHLQJRIRXUVWD Investment in IT/Tech Inputs No. of New Product Launches/Improvements 6WD&RVW Investment in Training that supports Strategic Outputs Themes and Material Issues Brand Value No. of Engagement Sessions UDQNLQJ$ZDUGVLQGH[ ZLWKPDQDJHPHQW No. of Published Papers for the Industry Outputs No. of Knowledge or Value Creation Platforms No. of Employee Training Hours Created Employee Engagement Talent 3D Mix CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 9 How Do We Create Shared Value? FOR CIMB & #teamCIMB* We manage our business and people with the responsibility of delivering sustainable ȴQDQFLDOUHWXUQV$FRPPLWPHQWWRSULQFLSOHVRIJRRGJRYHUQDQFHDQGWKHVWUDWHJLFUROHRI our Board, Senior Leadership and skilled workforce collectively contribute to shaping a SURȴWDEOHRUJDQLVDWLRQ (PSOR\HHV WHAT MATTERS Risk, Governance & Culture Talent, Diversity, Inclusion & Well-being 5HPDLQUHVLOLHQWDQGUHVSRQVLYHWRWKHG\QDPLF )XWXUHSURRIHPSOR\HHVE\XSVNLOOLQJDQGUHVNLOOLQJ RSHUDWLQJHQYLURQPHQW WDOHQWHQDEOLQJWKHPWRPDQDJHHPHUJLQJULVNV ΖQWHJUDWHHQYLURQPHQWDOVRFLDODQGJRYHUQDQFH DQGRSSRUWXQLWLHV ULVNVLQWRRXUULVNPDQDJHPHQWIUDPHZRUN 3URPRWHGLYHUVLW\WRIRVWHULQQRYDWLRQDQGGULYH 8SKROGKLJKVWDQGDUGVRIFRUSRUDWHJRYHUQDQFHLQ SHUIRUPDQFH WKHFRQGXFWRIEXVLQHVVDQGYDOXHFKDLQ &UHDWHRSSRUWXQLWLHVIRUHPSOR\HHVDQGYDOXHFKDLQ &UHDWHDFXOWXUHRIKLJKSHUIRUPDQFHE\SURPRWLQJ partners WHDP&Ζ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ost to Income or Return on Equity (QJDJHPHQW ΖQFOXVLYHQHVV 5HFUXLWPHQW (ɝFLHQF\5DWLR 5HPXQHUDWLRQ3ROLF\ &Ζ0%*URXS'LYHUVLW\6WDWHPHQW %RDUG 'LYHUVLW\DQGΖQFOXVLRQ 3HUIRUPDQFH0DQDJHPHQW 3HRSOH 'HYHORSPHQW3ROLF\ 30% >RM1.2 billion *URXS2FFXSDWLRQDO6DIHW\DQG+HDOWK3ROLF\ Female Directors on in Procurement 3URFHGXUHV the Board Spend towards *URXS3URFXUHPHQW3ROLF\ 6XVWDLQDEOH Suppliers/Vendors 3URFXUHPHQW*XLGHOLQHV 9HQGRU&RGHRI (Malaysia**) &RQGXFW 0DMRULW\RIRXUVXSSOLHUVDUHEDVHGLQ0DOD\VLDZKLFKDFFRXQWV IRU RIRXUWRWDO*URXSSURFXUHPHQWVSHQG2XUODUJHVWVSHQGVDUHLQ*URXS 7HFKQRORJ\*URXS2SHUDWLRQVDQG*URXS$GPLQLVWUDWLRQ 3URSHUW\ 10 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 How Do We Create Shared Value? FOR CUSTOMERS & CLIENTS We support the aspirations of our customers and clients by taking an inclusive approach to growth. Our objective is to create net positive impact through our products and services, positively advancing customers and making business a force for good. WHAT MATTERS Customer Centricity &XOWLYDWHDȆFXVWRPHUȴUVWȇPLQGVHW 7UDQVIRUPFXVWRPHUMRXUQH\VWRFUHDWHDXQLTXHDQGXQLIRUPH[SHULHQFH 'HVLJQDQGGHOLYHUȴQDQFLDODQGGLJLWDOVROXWLRQVWKDWFRQWULEXWHWRZHOOEHLQJDQGZHOIDUH 2HUEHVSRNHSURGXFWVVHUYLFHVDQGDGYLVRU\WRHPSRZHUEXVLQHVVHVIRUDFKLHYLQJJURZWKDPELWLRQV (VWDEOLVKSDUWQHUVKLSVWRUDLVHDZDUHQHVVDQGEXLOGFDSDFLW\WRGULYHUHVSRQVLEOHDQGFRPSHWLWLYHEXVLQHVVHVRI WKHIXWXUH (QFRXUDJHLQGLYLGXDOVDQGEXVLQHVVHVWRPDQDJHWKHLUȴQDQFHVEHWWHULPSURYLQJWKHLUZHOOEHLQJDQGTXDOLW\RIOLIH Sustainable Finance 0RELOLVHFDSLWDOȵRZVIRUJUHDWHUJRRGZKLOHPHHWLQJEXVLQHVVPRWLYHV (QDEOHSROLFLHVDQGJXLGHOLQHVWRPDQDJHH[SRVXUHWRYDULRXVVXVWDLQDELOLW\ULVNVWRFUHDWHSRVLWLYHLPSDFWVDQG UHGXFHQHJDWLYHLPSDFWV Financial Inclusion &RQWULEXWHWRVRFLRHFRQRPLFGHYHORSPHQWE\FUHDWLQJEDQNLQJRSSRUWXQLWLHVIRUWKHXQGHUVHUYHGDQG GLVDGYDQWDJHGFRPPXQLWLHVDQGGHPRJUDSKLFVWRZDUGVEXLOGLQJDPRUHUHVLOLHQWDQGȴQDQFLDOO\VHFXUH population HOW WE CREATE VALUE 7UHDWFXVWRPHUVIDLUO\ZLWKLQWHJULW\DQGFRPPLWPHQWWRȴQDQFLDOLQFOXVLYHQHVVDQGZHOOEHLQJ *LYHDFFHVVWRȴQDQFHRHUUHVSRQVLEOHSURGXFWVDQGLQVSLUHVXVWDLQDEOHEXVLQHVVSUDFWLFHV ΖPSURYHFUHGLWTXDOLW\E\PHHWLQJUHVSRQVLEOHOHQGLQJVWDQGDUGV KEY DRIVERS OF HIGHLIGHTS 2020 SHARED VALUE &XVWRPHU ([SHULHQFH &; 3ROLF\ 7UHDWLQJ Within 72% >5 million &XVWRPHU)DLUO\ NPS Relative to Peers CIMB Digital Users *URXS6XVWDLQDEOH )LQDQFLQJ3ROLF\ *6)3 DQG6HFWRU *XLGHV Ζ76HFXULW\3ROLF\ 179 ~25,000 *URXS3HUVRQDO'DWD Financing Facilities with Customer to Branch 3URWHFWLRQ3ROLF\ in-depth due diligence on Ratio or Physical Environmental and Social risks Touchpoints per Customer CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 11 How Do We Create Shared Value? FOR SOCIETY & COMMUNITY We champion purposeful programmes to help communities prosper and shape a better SODQHW)URPȴQDQFLDOOLWHUDF\WRJHQGHUHPSRZHUPHQWDQGIURPHQWUHSUHQHXUVKLSWR environmental stewardship, we identify issues that impede socio-economic development of communities who matter to us. WHAT MATTERS Corporate Citizenship Sustainability/Climate Change Social Inequalities 8QGHUVWDQGWKHQHHGVDQG 0LQLPLVHQHJDWLYHLPSDFWRI $VVHVVWKHVRFLDOLQHTXDOLWLHV H[SHFWDWLRQVRIFRPPXQLWLHV RXURSHUDWLRQVDQGȴQDQFHG DQGLQMXVWLFHVSUHYDOHQWLQ Ζ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ΖQWHJUDWHFRPPXQLW\PHPEHUV DZDUHQHVVDQGPRELOLVHDFWLRQ LQWRPDLQVWUHDPPDUNHWSODFH RQFOLPDWHUHVLOLHQFHLQWKH E\SURPRWLQJHQWUHSUHQHXULDO ȴQDQFLDOVHFWRU DQGHGXFDWLRQSURJUDPPHV HOW WE CREATE VALUE 3URYLGHRSSRUWXQLWLHVIRUHPSOR\HHVWRGHVLJQDVZHOODVFRQWULEXWHWRFRPPXQLW\SURJUDPPHV &KDQQHOVLJQLȴFDQWLQYHVWPHQWVWRSXUSRVHIXOFRPPXQLW\SURJUDPPHVDQGLQLWLDWLYHV &UHDWHORQJWHUPQHWSRVLWLYHHQYLURQPHQWDODQGVRFLDOLPSDFWLQDUHDVWKDWPDWWHUWRFRPPXQLWLHV KEY DRIVERS OF SHARED VALUE HIGHLIGHTS 2020 *URXS6XVWDLQDELOLW\3ROLF\ 6XVWDLQDELOLW\5LVN0DQDJHPHQW)UDPHZRUN *URXS$GPLQLVWUDWLRQDQG3URSHUW\ 0DQDJHPHQW3ROLF\ Top 35% 8.8% *URXS&RUSRUDWH5HVSRQVLELOLW\3ROLF\ Dow Jones Reduction (YoY) in *URXS&653ROLF\ Sustainability Scope 1 and Scope 2 )OH[&653ROLF\ (PSOR\HH9ROXQWHHULVP Index (DJSI) GHG Emissions Ranking Intensity RM29.3 million Invested in Communities, supporting 118,808 EHQHȴFLDULHV 12 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Economic Value Distributed & Retained DISTRIBUTED TO DISTRIBUTED TO DISTRIBUTED TO PROVIDERS OF CAPITAL THE GOVERNMENT EMPLOYEES (Cash Dividends to Shareholders & (Taxation & Zakat) (Personnel Costs) Non-controlling Interests) RM’000 RM’000 RM’000 383,760 693,046 1,142,901 1,519,653 5,764,674 5,144,070 2019 2020 2019 2020 2019 2020 DISTRIBUTED TO DISTRIBUTED TO DISTRIBUTED TO THE COMMUNITY SUPPLIERS/VENDORS REINVEST TO THE GROUP (CSR/Community Investments) (Group Procurement) (Dividend Reinvestment Plan; RM’000 RM’000 Depreciation & Amortisation; Retain Earnings) RM’000 896,192 45,800 29,300 945,000 1,200,000 4,606,672 2019 2020 2019 2020 2019 2020 DISTRIBUTION OF TOTAL ECONOMIC VALUE 10.2% 13.6% 33.9% 58.5% 42.5% 0.3% 2020 2019 13.0% 7.0% 4.4% 0.3% 5.1% 11.2% Ʉ7R HPSOR\HHV Ʉ7R SURYLGHUV RI FDSLWDO Ʉ7R WKH VXSSOLHUVYHQGRUV Ʉ7R WKH *RYHUQPHQW Ʉ7R WKH FRPPXQLW\ Ʉ7R UHLQYHVW WR WKH *URXS Community investments LQFOXGHFRQWULEXWLRQVWRFKDULWLHV1*2VDQGUHVHDUFKLQVWLWXWHV XQUHODWHGWRWKHRUJDQLVDWLRQȇVFRPPHUFLDOUHVHDUFKDQG GHYHORSPHQW IXQGVWRVXSSRUWFRPPXQLW\LQIUDVWUXFWXUHVXFKDVUHFUHDWLRQDOIDFLOLWLHV DQGGLUHFWFRVWVRIGHYHORSLQJDQGLPSOHPHQWLQJVRFLDODQG HQYLURQPHQWDOSURJUDPPHVLQFOXGLQJDUWVDQGHGXFDWLRQDOHYHQWVȂDOOFKDQQHOOHGWKURXJK&Ζ0%)RXQGDWLRQDVZHOODVUHVSHFWLYHEXVLQHVVXQLWV Value to Suppliers/Vendors LQFOXGHSD\PHQWPDGHWRZDUGVSURGXFWVRUVHUYLFHVRULQYHVWPHQWVLQDQ\VXSSOLHUHGXFDWLRQRUGHYHORSPHQWSURJUDPPHV 0DMRULW\RIRXUVXSSOLHUVDUHEDVHGLQ0DOD\VLDZKLFKDFFRXQWVIRU RIRXUWRWDO*URXSSURFXUHPHQWVSHQG2XUODUJHVWVSHQGVDUHLQ*URXS7HFKQRORJ\ *URXS2SHUDWLRQVDQG*URXS$GPLQLVWUDWLRQ 3URSHUW\ CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 13 CIMB’s Supported by sound institutional framework Value Creation Our business model and operating processes are managed Model conduct, sustainability and stakeholder stewardship. INPUTS KEY BUSINESS AREAS Refer to Capital: Inputs and KPIs pages 8 & 9. Financial Strong balance sheet with CONSUMER COMMERCIAL WHOLESALE invested capital and BANKING BANKING BANKING total assets valued at ISLAMIC CIMB DIGITAL TRANSACTION RM602.4 billion BANKING ASSETS BANKING Refer to Business Review pages 78-89. Manufactured 668 branches, 6,153 ATMs, MARKET TRENDS 8,546 self-service customer IMPACTING OUR BUSINESS access points Impacts of COVID-19 Proliferation of & Accelerated Digital Technology Penetration Human ~34,000 workforce across Geopolitical and Economic, 10 ASEAN countries Economic Environmental, Social Developments and Governance (EES&G) Factors Financial Market Trends & New Competitors Social Fluctuations >16 million customers and 2,239 registered suppliers Shifting Policy & Customers of the Regulatory Future 4,216 volunteer hours towards Landscape community CSR programmes KEY RESOURCES KEY RESOURCES Refer to Market Trends & Approaches page 49. Intellectual MATERIAL MATTERS Engagement and knowledge Economic Environment Social Governance platforms such as The Cooler Earth Sustainability Summit SUSTAINABLE ACTION CORPORATE SOCIAL and CEO Action Network • Climate Change RESPONSIBILITY • Health, Safety and Well-being • Corporate Citizenship • Sustainable Supply Chain & Volunteerism • Talent Attraction, Growth and Retention • Diversity and Inclusion Natural GOVERNANCE & RISK Five (5) sector guidelines • Governance include environmental criteria • Corporate Culture and RM644.9 million in SUSTAINABLE BUSINESS • Customer Experience • Sustainable Finance STAKEHOLDER • Technology ENGAGEMENT & • Financial Literacy, Inclusion & ADVOCACY Well-being • Sustainability Awareness and Participation 14 CIMB Group Holdings Berhad Annual Report 2020 Driven by our values and culture A Go the extra mile to delight customers CIMB’s Value Creation Model B Respect each other, engage openly and work together C OUTPUTS VALUE CREATED (2020) Five strategic themes of the Revised Strategic CIMB & #teamCIMB Plan (2020-2024) in Response to the New Normal in the Post-COVID era. 52.2% 2.1% Delivering Sustainable Cost to Income or Return on Equity Financial Returns Disciplined Execution Customer Centricity 30% Female Directors on the Board Transform Fundamentals Purpose-driven Organisation >RM1.2 billion Refer to Group’s Forward23+ in Procurement Spend towards Strategic Themes pages 52 & 53. Suppliers/Vendors (Malaysia*) PRIORITIES IN FY2020 Customers & Clients Customers • Customer Solutions: Restructuring & Rescheduling • Customer’s safety 72% >5 million Customer CIMB Digital Users Regulators Satisfaction • Industry Leadership towards Score/NPS Score maintaining a stable and healthy 179 ~25,000 Suppliers Clients undergoing Customer to Branch • Suppliers’ Safety, Well-being and Enhanced Ratio Project Continuity Sustainability Due Diligence Employees Society & Community • Risk Management/Business Continuity • Employee Safety & Well-being Top 35% 8.8% Dow Jones Reduction (YoY) in OUR KPIs (2024) Sustainability Index Scope 1 and Scope 2 (DJSI) Ranking GHG Emissions Intensity Sustainability CIR ROE CET1 NPS RM29.3 million Rankings Invested in Communities, Top Top DJSI supporting 118,808 45% 13% Quartile Quartile Top Quartile * Majority of our suppliers are based in Malaysia, which accounts for 90% of our total Group procurement spend. Our largest spends are in Group Technology, Group Operations, and Group Administration & Property. CIMB Group Holdings Berhad Annual Report 2020 15 The year 2020 was extraordinary. The impact of the global pandemic has been unprecedented by all measures. While we continue to navigate the new normal, the future will see us growing stronger and better. After almost a year of uncertainty, we see new opportunities for transformation and resilient growth. Most importantly, as both individuals and businesses, we have developed a deeper appreciation for our responsibility as citizens of one planet. We have seen the spirit of cooperation that will keep humanity and the purpose of businesses alive for generations. DATUK MOHD NASIR AHMAD &KDLUPDQ 16 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Message from The Chairman Dear Stakeholders, If there is one word to describe the year 2020, it would of course be ”unprecedented”. However, it was also a year of paradoxes as we H[SHULHQFHGFRQȵLFWLQJHPRWLRQVΖWZDVD\HDUZKHUHZHOHDUQHGWR appreciate the little wins and pleasures of life in an uncertain environment, from the uncertainty of the pandemic’s impact to some FRQȴGHQFHWKDWZHZLOOVXUYLYHWKHFRQVHTXHQFHV)URPGHSUHVVLQJ lockdown situations and limited social interactions, to enriching times ZLWKIDPLO\DQGORYHGRQHVZKHQZHZHUHȴQDOO\UHXQLWHG)URPWKH VWUHVVRILQFRPHDQGMREVHFXULW\WRUHȵHFWLRQVRQWKHJUHDWHU purpose in life. In short, it has been the most unsettling year where people searched for meaning even as they focused on survival. At CIMB, amid all the challenges, we found respite in our ability to be part of the many solutions for our customers, employees, partners, and communities who matter to us. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 17 Message from The Chairman YEAR EXTRAORDINAIRE 1RFRXQWU\QRHFRQRP\QREXVLQHVV DQGQRFRPPXQLW\KDVEHHQLPPXQHWR WKHLPSDFWRIWKH&29Ζ' SDQGHPLF 7KHSHULRGRIWKHȇ*UHDW/RFNGRZQȇLQ GLHUHQWSDUWVRIWKHZRUOGDQGDFURVV LQGXVWULHVSOXQJHGWKHJOREDOHFRQRP\ LQWRDUHFHVVLRQDU\VLWXDWLRQ7KHWKUHDW WRKXPDQLW\DQGWKHFRVWRIKXPDQ FDSLWDOURVHWRDOHYHOWKDWSURYHG GHWULPHQWDOWRERWKSURGXFWLYLW\DQG SHUIRUPDQFHRIEXVLQHVVHV7UDGHDQG VXSSO\FKDLQGLVUXSWLRQVDHFWHGWKH LQFRPHSRWHQWLDODQGVRFLRHFRQRPLF ZHOOEHLQJRI60(VZKLFKDUHWKH EDFNERQHRIPDQ\HPHUJLQJPDUNHWV 7KHVLOYHUOLQLQJLQDQRWKHUZLVHGDUN Inaugural visit by the Minister of Finance, YB Senator Tengku Datuk Seri Utama Zafrul Tengku FORXGKDVEHHQWKHVXSSRUWV\VWHPLQ Abdul Aziz, former Group CEO CIMB to Menara CIMB Kuala Lumpur, Malaysia. 0DOD\VLDΖQWKHVSLULWRIDOOLDQFHDQGLQ VXSSRUWRIWKHSKLORVRSK\RIOHDYLQJQR RQHEHKLQGDFURVVVHFWLRQRI RISK & GOVERNANCE VWDNHKROGHUVDFFHOHUDWHGDQGVXSSRUWHG JRYHUQPHQWHRUWVIRUUHVLOLHQWUHFRYHU\ ΖQZHZLWQHVVHGEXVLQHVVHV 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Championing a better tomorrow During his 6 years as Group CEO, YB Senator Tengku Datuk Seri banking group to support the United Nations Environment Utama Zafrul Tengku Abdul Aziz transformed CIMB, laying the Programme Finance Initiative in framing the Principles for foundation for us to become a regionally focused, customer- Responsible Banking, in addition to joining 29 global business centric and sustainable organisation for the future. titans on the Global Investors for Sustainable Development Alliance to free-up trillions of dollars from the private sector to The former Group CEO/Executive Director of CIMB Group and ȴQDQFH6XVWDLQDEOH'HYHORSPHQW*RDOV 6'*V the current Minister of Finance Malaysia, strengthened CIMB’s regional presence as a leading ASEAN banking group and Closer to home, he led CIMB through an ambitious T18 spearheaded its shift towards responsible banking. His roadmap, a four-year strategic plan to shift our focus and OHDGHUVKLSDQGFRPPLWPHQWWRGHȴQLWLYHDFWLRQDQGYDOXH delivery model, as well as achieve new growth potential across creation for all stakeholders have helped to set the stage for RXUEXVLQHVVHV7KHHɝFLHQWO\H[HFXWHGPLGWHUPVWUDWHJLHV the Group’s continued success. under T18 strengthened our foundations and improved our resilience as a leading regional bank. YB Minister was driven by his conviction in meaningful growth for, not just the organisation, but also stakeholders along its His contributions have been invaluable, especially in charting a value chain. From expanding CIMB’s footprint into all 10 ASEAN GLHUHQWLDWHGFRPSHWLWLYHDQGUREXVWDSSURDFKWRGHOLYHULQJ countries to forging partnerships to strengthening the bank’s stakeholder value. 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I am excited to CIMB Thai. I would also like to thank Khun work together with you to navigate CIMB FY21 Targets Sutee Losoponkul for stepping in as through Forward23+. Acting President and CEO of CIMB Thai. As we bid farewell, I am utterly grateful for I must thank the regulators who have their past contributions, and wish them all been instrumental in overseeing our FY21 Target the best in their future endeavours. As business and providing guidance on the saying goes, “Once a CIMBian, always handling the pandemic to enable us to ROTCE 8-9% a CIMBian.” I am certain that the assist our customers. I am also grateful to relationships they built in CIMB will be our customers, clients, peers and ROE 6-7% everlasting. partners for their continued trust in us, thus enabling CIMB to create value for our Dividend Payout At the Board level, please allow me to stakeholders. We hope you will continue 40-60% Ratio express my sincerest gratitude to Encik supporting us in our journey ahead. Ahmad Zulqarnain bin Che On for his Total Loan Growth 4-5% service on the Board of CIMB Group, as Last but not least, I would like to express well as Dato’ Zainal Abidin Putih, gratitude and appreciation to #teamCIMB. Venkatachalam Krishnakumar and Rosnah Thank you for your continuous support in Loan Loss Charge 80-90BPS Dato’ Kamarul Zaman for their service on the past year, allowing me to experience the Board of CIMB Bank Berhad. We the true #teamCIMB sprit in such a short CET1 (CIMB Group) >12.5% cannot thank you enough for your period. I feel honoured to have been able invaluable advice. In 2020, we also to witness firsthand your commitment Cost to Income welcomed the appointments of Ms. and dedication in overcoming the difficult <52% Ratio Shulamite N K Khoo as an Independent year together. My journey with CIMB has Director and Ms Serena Tan Mei Shwen as only just begun, and I look forward to a Non-Independent Director on the Board working closely with each and every one ACKNOWLEDGEMENTS of CIMB Group. Given their experience of you as we forge ahead with and expertise, we look forward to Forward23+. Let’s embrace the challenges First and foremost, CIMB owes benefitting from their advice and insights. ahead with optimism as we strive towards tremendously to my predecessor, YB our vision of becoming the leading Senator Tengku Datuk Seri Utama Zafrul I am also appreciative of the warm focused ASEAN bank. Tengku Abdul Aziz, for his years of welcome extended to me by the Board, leadership at the bank and invaluable especially Datuk Mohd Nasir Ahmad, contributions in growing the business. We Chairman of CIMB Group, and Group wish him well in his role as Malaysia’s Management. I am aware that I joined at a Finance Minister as he navigates the particularly challenging juncture, and I country’s economic recovery. thank them for the trust placed in me to Dato’ Abdul Rahman Ahmad Group Chief Executive Officer We also saw several changes to our leadership team and our organisation structure in order to provide better focus and accountability in driving the strategic priorities of Forward23+. I am confident that they will be able to carry out their new roles admirably, and look forward to working closely with our leadership bench to grow the business. We appointed Paul Wong Chee Kin in his new role as the President and CEO of CIMB Thai. His extensive leadership experience within the Group and the banking sector will be useful in driving our ambition to be the leading focused ASEAN bank. I would also like to express my gratitude to several key executives who departed the business in 2020: Dato’ Hamidah Naziadin, Group Chief People Bidding farewell to our former Group CEO, YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz. Officer; Shahnaz Jammal, CEO of Group Wholesale Banking; and Khun Adisorn CIMB Group Holdings Berhad Annual Report 2020 45 MANAGEMENT DISCUSSION AND ANALYSIS – STRATEGIC REVIEW Economic Review & Outlook 7+(8135(&('(17('<($5 7KH&29Ζ' SDQGHPLFLVDWDLOULVN KHDOWKHFRQRPLFVRFLDODQGȴQDQFLDO EHFRPHEDVHFDVHDVWFHQWXU\YHUVLRQ HHFWVRIWKHSDQGHPLF7KHEXONRIWKH RIDORQJWLPHKXPDQVFRXUJHHSLGHPLFV ȴVFDODFWLRQVKDYHIRFXVHGRQLPSURYLQJ 8QOLNHWKHERRPEXVWF\FOHVWKDWW\SLFDOO\ WKHFDVKȵRZVRIKRXVHKROGVDQGȴUPVKLW SURGXFHUHFHVVLRQVWKLVSDQGHPLFGRHV E\WKHORFNGRZQVDQGEROVWHULQJRQWKH QRWKDYHLWVURRWVLQȴQDQFLDOH[FHVV VWUHQJWKHQLQJWKHKHDOWKFDUHV\VWHPDQG DOWKRXJKLWWULJJHUVȴQDQFLDOGLVWUHVV WKHFRPSRQHQWVQHHGHGWRPDQDJHWKH (FRQRPLFPHDVXUHVKDYHEHHQUROOHGRXW SDQGHPLF WROHVVHQWKHHFRQRPLFȴQDQFLDO FRQWDJLRQ7KH\FDQQRWSURWHFWXVIURP 2QWKHFUHGLWDQGȴQDQFLDOSROLF\IURQW WKHHFRQRPLFGRZQWXUQ7KHHFRQRPLF WKHIRFDOSRLQWKDVEHHQQRWRQO\ DQGPDUNHWRXWFRPHRIWKLVSDQGHPLFKDV SURYLGLQJGHEWUHOLHIERUURZHUVEXWDOVR DQLPSRUWDQWVXSSO\VLGHHHFWWKDWLV 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FDOFXODWHGXVLQJXQVFKHGXOHGGRZQWLPH Ȃ&Ζ0%&OLFNV2FWR0RELOH 7DUJHWUDQJHVEHWZHHQ WR FDOFXODWHGXVLQJERWKVFKHGXOHGDQGXQVFKHGXOHGGRZQWLPH CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 53 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Group Financial Review by Group CFO KHAIRUL RIFAIE *URXS&KLHI)LQDQFLDO2ɝFHU 54 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Financial Review by Group CFO 2020 was unlike any year in recent history as the Group faced its most challenging year \HW$JDLQVWWKHEDFNGURSRIDJOREDOSDQGHPLFWKH*URXSSRVWHGDQHWSURȴWRI 50 ELOOLRQRUDQHWHDUQLQJVSHUVKDUH (36 RIVHQ:HDNUHYHQXHVWKDWUHȵHFWWKH challenging operating environment and elevated provisions meant that our key headline ȴQDQFLDOWDUJHWVQDPHO\52(DQGORDQJURZWKZHUHQRWDFKLHYHG+RZHYHUZHDUH pleased to report that the Group-wide initiatives to rein in operating costs, resulted in an improved cost-to-income ratio of 52.2%. In addition, having a robust capital management led to the Group ending 2020 with its strongest ever capital position with a CET1 ratio of 13.3%. As such, we declared a 40% dividend payout for 2020, in line with our 40-60% payout target, whilst meeting our shareholder’s expectations despite the unprecedented headwinds. THE YEAR IN REVIEW From an operational stand point, 2020 quality was a major focus during the year, ORDQVZHUHORZHU CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 55 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Group Financial Review by Group CFO Ȃ 7RWDOJURVVORDQVGHFOLQHGE\ 56 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Financial Review by Group CFO 50ELOOLRQ(&/RQORDQVDGYDQFHV portfolio in Thailand and Indonesia OVERVIEW OF COUNTRY DQGȴQDQFLQJLQFUHDVHGE\ CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 57 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Group Financial Review by Group CFO OPERATING INCOME, PBT AND TAX BY COUNTRY 2020 2019 Operating Current Taxation Operating Current Taxation The Group (RM’million) Income PBT year tax paid Income PBT year tax paid 0DOD\VLD 9,087 1,657 (564) (1,005) 3,925 (1,285) Indonesia 4,739 761 (208) (185) 960 (363) Singapore 1,106 (979) (2) (55) 1,316 490 (52) (31) Thailand 1,921 172 (40) (44) 2,029 452 (51) Other countries 336 (81) (35) (27) 415 148 (25) (18) 17,189 1,530 (849) (1,316) UHPDLQHGXQGHUFRQWUROZLWK&Ζ0% Niaga’s CIR improving to 48.9% from Loans by country as at Deposits by country as at 49.1% previously. b'HFHPEHU b'HFHPEHU – Despite turning around its operations in Others Others 7KDLODQGIHOWWKHHHFWVRIWKH Singaporee 6%6 Singaporee 2%% pandemic equally hard as its PBT fell 8%% MalaysiaM 10%% MalaysiaM FINANCIAL POSITION – With capital management amongst the – As highlighted over recent years, capital manage its capital via: (i) RAROC driven WRSȴQDQFLDOSULRULW\WKH*URXSIXUWKHU DGHTXDF\DQGHɝFLHQF\UHPDLQVD capital deployment, (ii) evaluation of strengthened its capital position with a pertinent focal point both for regulatory options within the dividend CET1 ratio of 13.3% as at end-2020, and operational requirements. The reinvestment scheme, (iii) continued UHSUHVHQWLQJDESV 58 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Financial Review by Group CFO – The Liquidity Coverage Ratio and Net guides in the foreseeable future, GOING FORWARD Stable Funding Ratios remains aligning well with the Group’s comfortably above target levels and Forward23+ direction. :HH[SHFWRXUȴQDQFLDO regulatory requirement, with high performance to be stronger in line with quality liquid assets recording B) CUSTOMER CENTRICITY the hope that widespread vaccination will improvement in yields. drive economic recovery globally. While :HȴUPO\EHOLHYHWKDW&XVWRPHU WKHȴQDQFLDOSHUIRUPDQFHZDV – The strategic plans laid out within ([SHULHQFH &; LVDGLHUHQWLDWRULQ disappointing, we believe that the Group )RUZDUGDUHȴUPO\IRFXVVHGRQ ȴQDQFLDOVHUYLFHVDQGKDYHGRXEOHG has strengthened its fundamentals, driving RAROC-driven returns, which will down on our Customer Centricity internal infrastructure and is in a stronger determine the Group’s capital program within the Forward23+ position to navigate a less predictable deployment over the coming 4 years. strategic plan. The transformation of future. Our strategic direction will be Optimal utilisation of capital for prioritised customer journeys guided by the revamped Forward23+ as coupled with enhanced digitisation LGHQWLȴHGJURZWKVHJPHQWVDQG we streamline the regional portfolio, businesses across the region are to reinforce system reliability and to continue to invest in technology and expected to bring about superior achieve market-leading turnaround digital capabilities, realign our strategic returns on capital and subsequently, times, are projected to lead the investments and ensure decisive drive the Group’s ROE within the Group to top-quartile Net Promoter execution to drive higher RAROC and ROE Forward23+ timeframe. Scores (NPS) moving forward. CX is for the Group and shareholders. At the essential in retaining customer same time, we continue to keep our loyalty, minimise reputation risk, customers as our utmost priority and RETURNS TO SHAREHOLDERS mitigates risk and allows for making progress on the sustainability improved propensity of product front. The Board approved and declared total cross-selling and increasing market GLYLGHQGVDPRXQWLQJWR50PLOOLRQRU share. That said, we remain cognisant that the 4.81 sen per share to be distributed to pandemic remains a real threat and that VKDUHKROGHUVIRU)<7KHVLQJOHLQWHULP C) COMPLIANCE economies are not yet out of the woods. dividend of 4.81 per share is to be paid by 7KHVLJQLȴFDQFHRIFRPSOLDQFH We will continue to be cautious to our 0D\ZLWKDIXOO\HOHFWDEOH'56 continues to rise each year, even approach to growth. As we continue to option. The dividends translated to a more so after a year like 2020. The play our role to assist vulnerable payout ratio of 40.0%, on the Group’s Group has ingrained the compliance segments and customers, our risk )<QHWSURȴW culture across the organisation, management and asset quality monitoring particularly across the pertinent initiatives will have to remain alert and lines of defence. Forward23+ seeks responsive. Growth need not necessarily NON-FINANCIAL MEASURES OF to further streamline the corporate be asset-driven but will be sought in PERFORMANCE structure, Board of Directors and above-average RAROC segments. Cost management committees, with management will be a primary focal point, 1RQȴQDQFLDOPHDVXUHVUHPDLQUHOHYDQW emphasis on reporting automation as we transform our fundamentals, components in evaluating the success of to minimise errors, improve culture and values, towards a more our initiatives towards achieving our reporting and operational HɝFLHQWDQGUHWXUQGULYHQRUJDQLVDWLRQ strategic goals. Some of these key HɝFLHQFLHVDQGWRUDLVHWKH measures include: governance bar higher. A wide range 0DQDJHPHQWH[SHFWVDQLPSURYHG RIYLUWXDOVWDWUDLQLQJSURJUDPVKDG performance in 2021 and have set A) SUSTAINABILITY been conducted and will be lined up UHODWLYHO\SUXGHQWȴQDQFLDOWDUJHWVIRUWKH year ahead, namely: an ROE of between The Group is ensuring that going forward to entrench the Sustainability is at the heart of importance of compliance and 5HWXUQRQ7DQJLEOH&RPPRQ(TXLW\ (ROTCE) of 8-9%, a CET1 ratio of over everything that we do, as economic, governance. environmental, social and &Ζ5RIEHORZDQGDQ//&RI between 80-90bps. This will be governance (EES&G) factors are now D) PEOPLE AND CULTURE underpinned by a projected loan growth core to the Group’s strategic As a purpose-driven organisation, of between 4-5% and we aim to maintain direction and risk evaluations. One &Ζ0%*URXSSODFHVFRQVLGHUDEOH the dividend payout ratio within the of the major developments in 2020 emphasis on values and culture. The 40-60% range. was the launch of the Group Coal Ȋ&Ζ0%&XOWXUHȋLVEDVHGRQD Sector Guide which outlines the combination of trust, performance I wish you and your families the best of SODQVWRUHPRYHFRDOȴQDQFLQJIURP and integrity, which has created solid health in 2021 and beyond, as we look WKHSRUWIROLRE\$VWKHȴUVW bonds within the organisation. This forward to a brighter future together. 0DOD\VLDQȴQDQFLDOLQVWLWXWLRQWR not only develops the Group’s make such a declaration, we have human capital but plays a crucial role positioned ourselves at the forefront LQVWDSURGXFWLYLW\DQGMRE of the sustainability agenda, which satisfaction. The development of the VKRXOGKROG&Ζ0%*URXSLQJRRG HR Blueprint under Forward23+ stead going forward. We have aims to reinforce this initiative over intentions to launch other sector the coming years, particularly under the new normal. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 59 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Five-Year Group Financial Summary 323,719,559 324,218,054 346,290,529 369,491,503 365,844,401 338,530,629 356,994,529 379,671,991 401,636,021 401,839,559 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 GROSS LOANS DEPOSITS FROM CUSTOMERS^ 50ȇ 50ȇ 8.3 9.6 11.4 8.5 2.1 20.0 25.0 25.0 26.0 4.8 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 ROE DIVIDEND PER SHARE (%) (Sen) ^ Include investment accounts of customers and structured 16.7 17.8 19.0 19.4 18.6 LQYHVWPHQWVFODVVLȴHGDVȴQDQFLDO 2016 2017 2018 2019 2020 liabilities designated at fair value TOTAL CAPITAL RATIO (CIMB BANK)# WKURXJKSURȴWRUORVVDQGRWKHU liabilities (%) # Before deducting proposed dividend 60 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Five-Year Group Financial Highlights Financial Year Ended 31 December 2020 2019 2018 2017 2016 Key Highlights RM’000 RM’000 RM’000 RM’000 RM’000 Consolidated Statement of Income Operating income 17,189,003 16,065,255 Overheads 8,976,794 8,655,821 8,651,690 3URȴWEHIRUHH[SHFWHGFUHGLWORVVHV 8,212,209 8,492,921 Expected credit losses on loans, advances and ȴQDQFLQJ 5,342,209 1,432,661 2,408,883 3URȴWEHIRUHWD[DWLRQDQG]DNDW 1,530,329 6,109,985 4,884,144 1HWSURȴWIRUWKHȴQDQFLDO\HDU 1,194,424 4,559,656 5,583,510 3,564,190 Consolidated Statement of Financial Position *URVVORDQVDGYDQFHVDQGȴQDQFLQJ 365,844,401 369,491,503 346,290,529 324,218,054 Total assets 602,354,899 534,089,043 506,499,532 Deposits from customers^ 410,839,559 401,681,309 356,994,529 338,530,629 Total liabilities 545,180,777 Shareholders’ funds 55,925,641 Commitments and contingencies 1,123,995,768 1,146,023,486 1,129,138,654 Financial Ratios (%) &RPPRQHTXLW\WLHUUDWLR &Ζ0%*URXS # 13.3 13.3 n/a n/a n/a 7LHUUDWLR &Ζ0%*URXS # 14.6 14.4 n/a n/a n/a 7RWDOFDSLWDOUDWLR &Ζ0%*URXS # 17.6 n/a n/a n/a &RPPRQHTXLW\WLHUUDWLR &Ζ0%%DQN # 13.1 13.8 12.9 12.9 12.1 7LHUUDWLR &Ζ0%%DQN # 14.8 15.2 14.3 14.3 13.6 7RWDOFDSLWDOUDWLR &Ζ0%%DQN # 18.6 19.4 19.0 Return on average equity 2.1 8.5 11.4 9.6 8.3 Return on average total assets 0.20 0.82 0.90 Net interest margin 2.32 2.46 2.50 2.63 2.63 Cost to income ratio 52.2 55.5 49.8 51.8 53.9 Gross impaired loans to gross loans 3.6 3.1 2.9 3.4 3.3 Allowance coverage ratio 91.6 91.0 Loan loss charge 1.46 0.44 0.41 0.69 Loan deposit ratio 89.0 92.0 91.2 90.8 95.6 1HWWDQJLEOHDVVHWVSHUVKDUH 50 4.65 4.39 4.14 3.92 %RRNYDOXHSHUVKDUH 50 5.64 5.23 5.11 CASA ratio 41.3 34.4 35.0 Other Information Earnings per share (sen) – basic 12.0 49.6 41.0 Dividend per share (sen) 4.8 26.0 25.0 25.0 20.0 Dividend payout ratio (%) 40 56 42 51 49 Number of shares in issue (’000)* 9,922,966 9,922,966 9,564,455 8,868,384 Weighted average number of shares in issue (’000) 9,922,966 9,356,695 9,016,943 8,689,362 Non Financial Highlights 6KDUHSULFHDW\HDUHQG 50 4.30 5.15 6.54 4.51 Number of employees~ 34,183 35,265 36,104 38,952 A ΖQFOXGHLQYHVWPHQWDFFRXQWVRIFXVWRPHUVDQGVWUXFWXUHGLQYHVWPHQWVFODVVLȴHGDVȴQDQFLDOOLDELOLWLHVGHVLJQDWHGDWIDLUYDOXHWKURXJKSURȴWRUORVVDQG other liabilities # Before deducting proposed dividend * Excludes 4,908 ordinary shares held as treasury shares ~ Excludes headcount borne by third parties CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 61 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Simplified Group Statement of Financial Position ASSETS 7.8% 8.3% 6.6% 9.0% 0.7% 2.0% 24.4% 19.5% 2020 2019 58.8% 62.9% Cash and short term funds, 3RUWIROLRRIȴQDQFLDO Statutory deposits with Other assets (including reversed repurchase investments central banks intangible assets) agreements and deposits and placements with banks Loans, advances and DQGRWKHUȴQDQFLDO ȴQDQFLQJ institutions EQUITY AND LIABILITIES 0.1% 0.1% 5.0% 0.2% 5.3% 0.2% 4.3% 4.5% 5.9% 7.4% 66.8% 68.4% 12.0% 9.4% 2020 2019 4.1% 5.3% 0.6% 0.4% Deposits from customers Deposits and placements of Debt securities issued and Reserves EDQNVDQGRWKHUȴQDQFLDO other borrowed funds Investment accounts of institutions Perpetual preference shares customers Ordinary share capital Bills and acceptances Non-controlling interests payable and other liabilities 62 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Quarterly Financial Performance 2020 RM’000 Q1 Q2 Q3 Q4 Operating revenue 4,143,029 3,865,322 4,464,614 4,716,038 1HWLQWHUHVWLQFRPH DIWHUPRGLȴFDWLRQORVV 2,572,785 2,480,079 2,547,090 2,619,022 Net non-interest income and income from Islamic banking operation 1,570,244 1,385,243 1,917,524 2,097,016 Overheads (2,318,450) (2,124,448) (2,204,973) (2,328,923) 3URȴWEHIRUHWD[DWLRQDQG]DNDW 713,964 196,385 453,998 165,982 1HWSURȴWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW 507,925 277,079 194,444 214,976 Earning per share (sen) 5.12 2.79 1.96 2.17 Dividend per share (sen) – – – 4.81 2019 RM’000 Q1 Q2 Q3 Q4 Operating revenue 4,166,146 4,468,851 4,638,445 Net interest income 2,461,543 Net non-interest income and income from Islamic banking operation 1,844,583 Overheads (2,302,416) (2,293,626) 3URȴWEHIRUHWD[DWLRQDQG]DNDW 1,603,126 1,955,829 1,336,883 1HWSURȴWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW 1,192,042 1,508,625 1,010,348 848,641 Earning per share (sen) 12.46 15.60 10.36 8.56 Dividend per share (sen) – 14.00 – 12.00 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 63 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Key Interest Bearing Assets and Liabilities Financial Year Ended 31 December 2020 Interest As at (HFWLYH income/ 31 December interest rate expense RM’million % RM’million Interest earning assets: Cash and short-term funds & deposits and placements with banks and RWKHUȴQDQFLDOLQVWLWXWLRQV 43,126 1.52 743 )LQDQFLDOLQYHVWPHQWVDWIDLUYDOXHWKURXJKSURȴWRUORVV 42,713 1.82 767 Debt instruments at fair value through other comprehensive income 47,726 3.42 1,348 Debt Instruments at amortised cost 56,128 3.83 1,922 /RDQVDGYDQFHVDQGȴQDQFLQJ 353,916 5.03 17,932 Interest bearing liabilities: Total deposits* 447,458 1.88 8,439 Bonds, Sukuk, debentures and other borrowings 22,870 2.72 685 Subordinated oligations 12,809 4.12 600 Financial Year Ended 31 December 2019 Interest As at (HFWLYH income/ 31 December interest rate expense RM’million % RM’million Interest earning assets: Cash and short-term funds & deposits and placements with banks and RWKHUȴQDQFLDOLQVWLWXWLRQV 42,564 2.39 1,111 )LQDQFLDOLQYHVWPHQWVDWIDLUYDOXHWKURXJKSURȴWRUORVV 1,068 Debt instruments at fair value through other comprehensive income 33,318 3.63 Debt instruments at amortised cost 39,833 4.40 /RDQVDGYDQFHVDQGȴQDQFLQJ 360,340 5.88 Interest bearing liabilities: Total deposits* 429,482 Bonds, Sukuk, debentures and other borrowings 28,691 925 Subordinated oligations 13,521 5.33 7RWDOGHSRVLWVLQFOXGHGHSRVLWVIURPFXVWRPHUVLQYHVWPHQWDFFRXQWVRIFXVWRPHUVGHSRVLWVDQGSODFHPHQWVRIEDQNVDQGRWKHUȴQDQFLDOLQVWLWXWLRQVȴQDQFLDO OLDELOLWLHVGHVLJQDWHGDWIDLUYDOXHWKURXJKSURȴWRUORVVDQGVWUXFWXUHGGHSRVLWV 64 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Value Added Statements 2020 2019 RM’000 RM’000 Value added Net interest income (before modification loss) 10,440,041 10,083,918 0RGLILFDWLRQ ORVV (221,065) – Net interest income (after modification loss) 10,218,976 10,083,918 Income from Islamic banking operations 2,937,513 3,040,663 Net non-interest income 4,032,514 Overheads excluding personnel costs, depreciation, payments to community and suppliers/vendors (1,710,900) Expected credit losses on loans, advances and financing (5,342,209) Expected credit losses (made)/written back for commitments and contingencies (191,520) 12,019 Other expected credit losses and impairment allowances made (1,264,646) (352,018) Share of results of joint ventures 118,834 31,401 Share of results of associates (2,339) 9DOXH DGGHG DYDLODEOH IRU GLVWULEXWLRQ 8,796,223 Distribution of Value Added To employees: Personnel costs 5,144,070 7R WKH *RYHUQPHQW Taxation and zakat 383,760 1,519,653 7R SURYLGHUV RI FDSLWDO Cash dividends paid to shareholders 1,190,756 Non-controlling interests (47,855) (104,469) To the community1: Community investments 29,300 45,800 7R WKH VXSSOLHUVYHQGRUV2: 6XSSOLHUV9HQGRUV 0DOD\VLD 1,200,000 945,000 7R UHLQYHVW WR WKH *URXS Dividend reinvestment plan – Depreciation and amortisation 892,524 844,531 Retained earnings 3,668 2,050,082 9DOXH DGGHG DYDLODEOH IRU GLVWULEXWLRQ 8,796,223 10.2% 13.6% 33.9% 58.5% 42.5% 0.3% 2020 2019 13.0% 7.0% 4.4% 0.3% 5.1% 11.2% Ʉ7R HPSOR\HHV Ʉ7R SURYLGHUV RI FDSLWDO Ʉ7R WKH VXSSOLHUVYHQGRUV2 Ʉ7R WKH *RYHUQPHQW Ʉ7R WKH FRPPXQLW\1 Ʉ7R UHLQYHVW WR WKH *URXS 1 Community investments include contributions to charities, NGOs and research institutes (unrelated to the organisation’s commercial research and GHYHORSPHQW IXQGVWRVXSSRUWFRPPXQLW\LQIUDVWUXFWXUHVXFKDVUHFUHDWLRQDOIDFLOLWLHV DQGGLUHFWFRVWVRIGHYHORSLQJDQGLPSOHPHQWLQJ VRFLDO DQG HQYLURQPHQWDO SURJUDPPHV LQFOXGLQJ DUWV DQG HGXFDWLRQDO HYHQWV Ȃ DOO FKDQQHOOHG WKURXJK &Ζ0% )RXQGDWLRQ DV ZHOO DV UHVSHFWLYH EXVLQHVV XQLWV 2 Suppliers/Vendors include payment made towards products or services or investments in any supplier education or development programmes. 0DMRULW\RIRXUVXSSOLHUVDUHEDVHGLQ0DOD\VLDZKLFKDFFRXQWVIRU RIRXUWRWDO*URXSSURFXUHPHQWVSHQG2XUODUJHVWVSHQGV DUH LQ *URXS Technology, Group Operations, and Group Administration & Property. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 65 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Capital Management OVERVIEW &DSLWDOPDQDJHPHQWDW&Ζ0%*URXS Ȋ*URXSȋ UHPDLQVIRFXVHGRQPDLQWDLQLQJDKHDOWK\FDSLWDOSRVLWLRQWKURXJKEXLOGLQJDQHɝFLHQW capital structure. The capital position and structure of the Group are designed to meet the requirements of the Group’s key FRQVWLWXHQFLHVLHVKDUHKROGHUVFXVWRPHUVUHJXODWRUVH[WHUQDOUDWLQJDJHQFLHVDQGRWKHUV*XLGHGE\&Ζ0%*URXSȇV&DSLWDO 0DQDJHPHQW3ROLF\DQG3URFHGXUHWKHREMHFWLYHVRIFDSLWDOPDQDJHPHQWDUHDVIROORZV 7RPDLQWDLQDVWURQJDQGHɝFLHQW 7RDOORFDWHFDSLWDOHɝFLHQWO\ (3) To maintain capital at optimal levels to meet capital base for the Group and its across the business units and the requirements of other stakeholders of entities to (a) meet regulatory subsidiaries to (a) support the the Group, including rating agencies and FDSLWDOUHTXLUHPHQWVDWDOOWLPHV organic growth generation (b) customers through (a) liability management (b) realise returns for take advantage of strategic (b) dividend reinvestment scheme (c) shareholders through acquisitions and new businesses deployment of capital based on risk- sustainable return on equity and ZKHQRSSRUWXQLWLHVDULVH DQG F adjusted return on capital (RAROC) VWDEOHGLYLGHQGSD\RXW DQG F optimise the return on capital for performance measurement (d) risk- withstand stressed economic the Group. weighted assets (RWA) optimisation exercise and market conditions. and exploring strategic divestments, if any. 7KH*URXSȇVUHJXODWHGEDQNLQJHQWLWLHVKDYHDOZD\VPDLQWDLQHGDVHWRILQWHUQDOFDSLWDOWDUJHWVZKLFKSURYLGHDVWURQJEXHUDERYHWKH minimum regulatory requirements. The following table shows the relevant capital ratios of each of the regulated banking entities of the Group in comparison to the minimum level required by the respective central banks under the Basel III framework. Common Equity Tier 1 Capital Tier 1 Capital Total Capital As at Minimum As at Minimum As at Minimum 31 December Regulatory 31 December Regulatory 31 December Regulatory Capital Ratios 2020 Ratio 2020 Ratio 2020 Ratio &Ζ0%*URXS 14.49% 8.50% 10.50% &Ζ0%%DQN 13.13% 8.50% 18.56% 10.50% &Ζ0%ΖVODPLF 13.31% 14.10% 8.50% 10.50% &Ζ0%ΖQYHVWPHQW%DQN*URXS 83.18% 83.18% 8.50% 83.18% 10.50% &Ζ0%1LDJD 20.12% 10.00% 20.12% 11.50% 21.24% 13.50% &Ζ0%7KDL 14.94% 14.94% 8.50% 11.00% ΖQFOXVLYHRIULVNSURȴOHQRDQGFDSLWDOVXUFKDUJHEXHU KEY INITIATIVES single tier dividend will be payable by April 2021 and will consist of an electable portion of 4.81 sen per ordinary share which Our goal is to continuously build capital towards the full shareholders can elect to reinvest in new ordinary shares in implementation of Basel III requirements, whilst optimising its accordance with the DRS. use fully. Tools that are employed to achieve this include but not limited to the following: (1) liability management via redemption of non-Basel III DIVIDEND REINVESTMENT SCHEME FRPSOLDQWLQVWUXPHQWV DQGLVVXDQFHRIQHZ%DVHOΖΖΖ LQVWUXPHQWV The DRS was implemented in 2013 to provide shareholders with GLYLGHQGUHLQYHVWPHQWVFKHPH '56 DQRSWLRQWRUHLQYHVWGLYLGHQGVLQWRQHZRUGLQDU\VKDUHVRI&Ζ0% 5:$RSWLPLVDWLRQ DQG and at the same time to help preserve the Group’s capital. It was (4) Group-wide stress testing and impact assessment. ȴUVWDSSOLHGWRWKH*URXSȇVVHFRQGLQWHULPGLYLGHQGIRUWKH ȴQDQFLDO\HDUHQGHG'HFHPEHU7KHGLYLGHQG Key capital management initiatives that were undertaken during reinvestment rate has been encouraging, with an average rate of the 2020 calendar year include: DSSUR[LPDWHO\ VLQFHLQFHSWLRQ &Ζ0%*URXSLVVXHG50PLOOLRQ%DVHOΖΖΖ$7&DSLWDO 6HFXULWLHVRQ'HFHPEHUDQG50ELOOLRQ%DVHOΖΖΖ7 49.5%9.5% 551.0%1.0 50.8%*0.8% 50.9%**.9% Subordinated Debt on 12 November 2020. 41.9%1.9% 40.0%0.0% (2) The continuing RWA optimisation initiatives during the year, largely through active loan portfolio rebalancing, system and data enhancements and model recalibrations. DIVIDEND POLICY 14.00 20.00 25.00 25.00 26.00 4.81 2015015 2016016 2017017 2018018 20192019 2020 )RUWKHȴQDQFLDO\HDUHQGHG'HFHPEHUDQLQWHULPVLQJOH Total Payout Ratio tier dividend of 4.81 sen per ordinary share, on 9,922,966,350 RUGLQDU\VKDUHVDPRXQWLQJWR50 ZDVDSSURYHGE\ 3D\RXWUDWLREDVHGRQ3$7H[FOXGLQJ&3$0DQG&3Ζ$0JDLQRI50 PLOOLRQ WKH%RDUGRI'LUHFWRUVDQG%DQN1HJDUD0DOD\VLD7KHLQWHULP ** Payout ratio based on BAU PAT excluding transformational cost. 66 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Credit Ratings Ʉ&Ζ0%%$1.%(5+$' Rating Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook 0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Foreign Currency Bank Deposits Rating A3 6HUYLFH 0RRG\ȇV 2. Short-term Foreign Currency Bank Deposits Rating P-2 3. Long-term Domestic Currency Bank Deposits Rating A3 4. Short-term Domestic Currency Bank Deposits P-2 Rating A3 Stable 5. Senior Unsecured Notes (P)A3 86'ELOOLRQ0XOWL&XUUHQF\(XUR0HGLXP7HUP Notes Programme (P)A3/(P)Ba1 86'ELOOLRQ(XUR0HGLXP7HUP1RWH3URJUDPPH (Senior Unsecured/ Subordinated) Standard & Poor’s January 2021 1. Long-term Foreign Currency Rating A- Ratings Services 2. Short-term Foreign Currency Rating A-2 Negative (S&P) 3. Long-term Local Currency Rating A- 4. Short-term Local Currency Rating A-2 5$05DWLQJ August 2020 1. Long-term Financial Institution Rating AAA Services Berhad 2. Short-term Financial Institution Rating P1 5$0 50ELOOLRQ7LHU%DVHOΖΖΖ&RPSOLDQW Subordinated Debt Programme a. Issuances prior to 1 January 2016 with non- AA΄ YLDELOLW\HYHQWVOLQNHGWR&Ζ0%%DQN%HUKDG b. Issuances on or after 1 January 2016 with AA΅ Stable QRQYLDELOLW\HYHQWVOLQNHGWR&Ζ0%%DQN %HUKDGDVZHOODV&Ζ0%*URXS+ROGLQJV%HUKDG and its subsidiaries A΄ 50ELOOLRQ$GGLWLRQDO7LHU&DSLWDO6HFXULWLHV Programme AAA 50ELOOLRQ0HGLXP7HUP1RWHV3URJUDPPH 0DOD\VLDQ5DWLQJ August 2020 1. Long-term Financial Institution Rating AAA Corporation 2. Short-term Financial Institution Rating 0$5& %HUKDG 0$5& 50ELOOLRQ6XERUGLQDWHG'HEWDQG-XQLRU6XNXN AA+/AA+IS Stable Programmes 50ELOOLRQ7LHU6XERUGLQDWHG'HEW3URJUDPPH AA+ CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 67 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Credit Ratings Ʉ&Ζ0%*5283+2/'Ζ1*6%(5+$' Rating Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook 0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Issuer Rating Baa1 Stable 6HUYLFH 0RRG\ȇV 2. Short-term Issuer Rating P-2 0DOD\VLDQ5DWLQJ August 2020 1. Long-term Corporate Credit Rating AA+ Corporation 2. Short-term Corporate Credit Rating 0$5& Stable %HUKDG 0$5& 50ELOOLRQ7LHU%DVHOΖΖΖ&RPSOLDQW AA Subordinated Debt Programme 5$05DWLQJ August 2020 1. Long-term Corporate Credit Rating AA΄ Services Berhad 2. Short-term Corporate Credit Rating P1 5$0 50ELOOLRQ&RQYHQWLRQDODQGΖVODPLF0HGLXP AA΄ term Notes Programme Stable 50ELOOLRQ&RQYHQWLRQDO&RPPHUFLDO3DSHU P1 Programme 50ELOOLRQ$GGLWLRQDO7LHU&DSLWDO6HFXULWLHV A΄ Programme Ʉ&Ζ0%Ζ19(670(17%$1. Rating Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook 5$05DWLQJ August 2020 1. Long-term Financial Institution Rating AAA Services Berhad 2. Short-term Financial Institution Rating P1 Stable 5$0 0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Issuer Rating A3 Stable 6HUYLFH 0RRG\ȇV 2. Short-term Issuer Rating P-2 Ʉ&Ζ0%Ζ6/$0Ζ&%$1. Rating Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook 0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Foreign Currency Bank Deposits Rating A3 6HUYLFH 0RRG\ȇV 2. Short-term Foreign Currency Bank Deposits Rating P-2 3. Long-term Domestic Currency Bank Deposits Rating A3 Stable 4. Short-term Domestic Currency Bank Deposits P-2 Rating 5$05DWLQJ August 2020 1. Long-term Financial Institution Rating AAA Services Berhad 2. Short-term Financial Institution Rating P1 Stable 5$0 50ELOOLRQ6XNXN:DNDODK3URJUDPPH AAA 0DOD\VLDQ5DWLQJ August 2020 1. Long-term Financial Institution Rating AAA Corporation 2. Short-term Financial Institution Rating 0$5& Stable %HUKDG 0$5& 50ELOOLRQ7LHU-XQLRU6XNXN3URJUDPPH AA+IS 50ELOOLRQVHQLRU6XNXN:DNDODK3URJUDPPH AAAIS 68 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Credit Ratings Ʉ&Ζ0%7+$Ζ Rating Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook 0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Issuer Rating Baa2 6HUYLFH 0RRG\ȇV 2. Long-term Foreign Currency Bank Deposits Rating Baa2 3. Short-term Foreign Currency Bank Deposits Rating P-2 Stable 4. Long-term Domestic Currency Bank Deposits Rating Baa2 5. Short-term Domestic Currency Bank Deposits P-2 Rating Fitch Ratings April 2020 1. Long-term National Rating AA-(tha) 2. Short-term National Rating F1+(tha) Negative 3. Long-term Rating on Subordinated Lower Tier 2 AA-(tha) 4. Short-term Rating for Short-term Debt F1+(tha) 5$05DWLQJV August 2020 1. Long-term Financial Institution Rating AA2 Services Berhad 2. Short-term Financial Institution Rating P1 Stable 5$0 50ELOOLRQ7LHU6XERUGLQDWHG'HEW3URJUDPPH AA3 Ʉ&Ζ0%1Ζ$*$ Rating Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook Fitch Ratings February 2021 1. Long-term Issuer Default Rating BBB- 2. Short-term Issuer Default Rating F3 3. Long-term National Rating AA+(idn) Negative 4. Short-term National Rating F1+(idn) 5. IDR1.6 trillion Subordinated Debt AA-(idn) 0RRG\ȇVΖQYHVWRUV June 2020 1. Long-term Issuer Rating Baa2 6HUYLFH 0RRG\ȇV 2. Long-term Foreign Currency Bank Deposits Rating Baa2 3. Short-term Foreign Currency Bank Deposits Rating P-2 Stable 4. Long-term Domestic Currency Bank Deposits Rating Baa2 5. Short-term Domestic Currency Bank Deposits P-2 Rating CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 69 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Balance Sheet Management The core functions of Balance Sheet Management team include generating balance sheet strategies and providing guidance to business units on sustainable value creation for the *URXSE\RSWLPLVLQJVWUXFWXUDOIXQGLQJDQGOLTXLGLW\SURȴOHRIWKH*URXSȇV%DQNLQJERRN The team also maintains a robust and responsive Funds Transfer Pricing (FTP) framework, which is governed by the Group Asset Liability Committee (GALCO). The FTP mechanism is reviewed and calibrated based on best market practices and various regulatory principles while accommodating for balance sheet strategies as approved by the management and the Board of Directors. 7KH)73IUDPHZRUNSURPRWHVDQHɝFLHQW as securitised assets. Our core source of well above the minimum requirement of Group-wide allocation of funding costs funding, deposits and investment 100% for 2020. The bank also observes its DQGEHQHȴWVWRWKHEXVLQHVVXQLWVE\ accounts from customers have shown level of liquidity using indicators such as taking into account the interest rate and steady and modest growth of 3% in 2020, loans-to-funding (LTF) which includes debt liquidity positions of the Bank. In ensuring with a marginal decrease in composition issuances in addition to deposits while sustainable balance sheet funding, a in the overall funding source but still loan-to-fund-and-equity (LTFE) expands liquidity premium is charged to the user UHȵHFWVDKHDOWK\EXHULQIXQGLQJWKH on with the inclusion of equity. The of funds based on the tenure of the ORDQERRN/RDQVDGYDQFHVDQGȴQDQFLQJ measure for LTF and LTFE for the Group WUDQVDFWLRQV DQGOLTXLGLW\FUHGLW shrunk by 2% in 2020 due to DVDW'HFHPEHULVDQG incentivises the provider of funds that XQSUHFHGHQWHGDGYHUVHHHFWVFDXVHGE\ respectively. Given the introduction of generate long-term, stable funding. the COVID-19 pandemic. new liquidity measures such as Net Stable Presently, we focus on attracting stable Funding Ratio (NSFR) in the recent years, retail deposits to provide sustainable the Group has been focusing on the funding required to extend long-term LCR growth of high quality liquid assets as well UHWDLODQG60(FUHGLWWKDWDUHEHQHȴFLDOWR as sticky deposits in ensuring a the economic livelihood of the society. The Group maintained a healthy and VXVWDLQDEOHOLTXLGLW\EXHUQRWRQO\WR stable level of liquid assets which is VXUYLYHDVLJQLȴFDQWVWUHVVVFHQDULR The Group maintains a robust liquidity UHȵHFWHGE\D/LTXLGLW\&RYHUDJH5DWLRRI lasting 30 calendar days but also for SURȴOHWRFRPSO\ZLWKLQWHUQDOPHDVXUHV 141% as at 31 December 2020, which is longer time horizons. that adhere to the best market practices as guided by the Basel Standards. The Group also observes Basel III Liquidity Framework, namely the Liquidity ASSETS LIABILITIES Coverage Ratio (LCR), with a primary focus RQHQVXULQJDVXɝFLHQWEXHURIOLTXLG 6.6% 5.8% 9.7% 13.7% DVVHWVWRVXUYLYHDVLJQLȴFDQWVWUHVV 8.1% scenario lasting 30 calendar days. 6.3% %DODQFH6KHHW0DQDJHPHQWWHDPLV responsible in implementing the Base 5DWH %5 )UDPHZRUNLQ0DOD\VLD%5LV 62.9% 58.8% computed in accordance with the 69.0% 67.4% methodology approved under Reference 5DWH)UDPHZRUNRI%DQN1HJDUD0DOD\VLD 6.6% %10 7KHGHSOR\PHQWRI%5HQDEOHVWKH 6.6% *URXSWRVXSSRUWHɝFLHQWȴQDQFLDO intermediation and monetary policy 23.9% 28.8% 3.2% 3.1% transmission while at the same time 10.0% 9.5% remaining competitive through 2019 2020 2019 2020 transparent asset pricing. Other Assets Treasury Liabilities 7KHORDQVDGYDQFHVDQGȴQDQFLQJRIWKH Loans, Advances and Financing Long-Term Debts Group’s assets is funded from a funding Cash & Short-Term Funds Deposits & Investment Accounts from mix comprising of customer deposits and Financial Instruments Customers investment accounts alongside stable Other Liabilities long-term borrowings such as senior Total Equity funding, subordinated obligations, as well 70 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Investor Relations Challenging would probably be too kind a word to describe 2020 in terms of its impact on JOREDOVRFLHWLHVHFRQRPLHVDQGȴQDQFLDOV\VWHPV:LWKWKHZRUOGOLWHUDOO\EHLQJWXUQHGRQ its head by the COVID-19 pandemic within a span of a few short months, the Group had to PDNHVLJQLȴFDQWDGMXVWPHQWVQRWMXVWWRRSHUDWLRQVEXWDOVRIURPDȴQDQFLDOGLVFORVXUH perspective due to changes in the operating environment, regulations and accounting treatments. Thrown into the mix was the unexpected change in the Group’s leadership with the abrupt departure of YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz and the subsequent entry of Dato’ Abdul Rahman Ahmad. As such, the Group’s Investor Relations initial plans and targets for the year were very quickly set aside and UHSODFHGE\DQH[HUFLVHRIHGXFDWLRQDQGVXVWDLQHGQRWLȴFDWLRQRIODWHVWGHYHORSPHQWV ZLWKLQWKH*URXSDQGȴQDQFLDOLQGXVWU\ Against a backdrop of a global pandemic team persevered to upkeep the high 50ELOOLRQIRU6XVWDLQDELOLW\OLQNHGORDQV and economic emergencies, the operating VWDQGDUGVRIWLPHOLQHVVDQGVXɝFLHQF\RI as well as announcement of the Coal environment threw up a cocktail of crises disclosure, when investors demanded 6HFWRU*XLGHZKLFKJDUQHUHGVLJQLȴFDQW over the past 12 months. Central banks immediate information. attention and plaudits, particularly across the region and world cut interest amongst institutional investors which UDWHVWRNHHSHFRQRPLHVDȵRDW HFRQRPLF Whilst the year did not entail many viewed this as a major step for a South growth forecasts were reduced by the corporate developments, the Group did (DVW$VLDQȴQDQFLDOLQVWLWXWLRQDOVR PRQWK RLOSULFHVWKUHDWHQHGWRVSLUDOLQWR witness an unexpected leadership change VDZ&Ζ0%3KLOLSSLQHVFRQWLQXHLWVVWHOODU DFULVLV HTXLW\PDUNHWVWXPEOHGJOREDOO\ with the entry of a new Chief Executive growth culminating in just under 3.1 directly impacted sectors like airlines, 2ɝFHULQ0D\'DWRȇ$EGXO5DKPDQ million customers within 2 years of hospitality and leisure faced uncertain Ahmad’s immediate leadership was most inception and seeing an over 8-fold IXWXUHV XQSUHFHGHQWHGGRPHVWLFDQG welcome, although its timing in the midst JURZWKLQGHSRVLWVLQLWVȴUVWIXOO\HDURI JOREDOSROLWLFDOXSKHDYDOVZHUHDSOHQW\ DOO of the pandemic and while the deposit taking. of which came together to form an RUJDQLVDWLRQZDVODUJHO\ZRUNLQJRVLWHRU unparalleled year in history. Undoubtedly, IURPKRPHSRVHGVLJQLȴFDQWORJLVWLFDO Despite the intense pressure over the investor sentiment was shaken to the core and operational challenges. He had within year, the inability to travel and working as forecasts and budgets were continually a relatively short period of time, put from home challenges, the Investor UHYLVHGDQGWKLVNHSWWKH&Ζ0%*URXS together the recalibrated Forward23+ Relations team strived to provide as best Investor Relations team fully engaged strategic plan by September 2020 to access as possible for domestic and throughout the year. account for the new world order. The foreign stakeholders to senior members investment community had the RI&Ζ0%*URXSPDQDJHPHQW:LWKWKH For 2020, the Investor Relations opportunity to listen to and speak with pandemic in full swing, all investor undertaking was focused on delivering Dato’ Rahman via video conference and engagements were moved to virtual up-to-date status on various market- and ZHUHSURYLGHGVXɝFLHQWLQVLJKWVWRWKH SODWIRUPVSDUWLFXODUO\:HEH[=RRP06 operations-related developments. This revised strategic plan to reshape the Teams and old-school teleconference included evaluation of the impact of portfolio, improve the Group’s operational facilities. Engagements were largely led by FRQWLQXRXVLQWHUHVWUDWHFXWVLQGLHUHQW DQGȴQDQFLDOVWDELOLW\XQGHUVWDQGWKH the Group CFO Khairul Rifaie over the FRXQWULHVRQORDQGHPDQGDQG1Ζ0VWKH increased emphasis on governance and year, while the Group CEO Dato’ Abdul HHFWRIHFRQRPLFORFNGRZQVRQVWD oversight, as well as the CEO’s personal Rahman Ahmad took a more active role operations and customers, the accounting thoughts on the Group’s strengths and around the year-end after the unveiling of WUHDWPHQWRIGLHUHQWIRUPVRI weaknesses. Similar to the Forward23 the Forward23+ program. The Investor moratoriums and repayment schemes plan, Customer Experience and Relations team provided continuous implemented by regional central banks, 6XVWDLQDELOLW\ZLOOUHPDLQFRUHGLHUHQWLDOV ground support, along with other selected status of customer repayment trends as IRU&Ζ0%JRLQJIRUZDUG PHPEHUVRI*URXS0DQDJHPHQW well as updates on COVID-19-related particularly David Richard Thomas (Group sector exposures. Given that systems, On the Sustainability front, the Group &KLHI5LVN2ɝFHU DQG6LHK/XDQQH +HDG databases and general infrastructure was extended its leadership within the of Sustainability) through the year. not designed for the scale and speed of environmental, social and governance the disruption, the Investor Relations (ESG) sphere in 2020 with the allocation of CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 71 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Investor Relations ANALYST BRIEFINGS Despite the various travel and work restrictions in place, the Group conducted investor conference calls for all four TXDUWHUO\ȴQDQFLDOUHVXOWVDQQRXQFHPHQWV over the year. We continued to receive active participation from both domestic and regional equity and debt analysts and fund managers. Given the leadership WUDQVLWLRQWKUHHRIWKHDQDO\VWEULHȴQJV were conducted by the Group CFO, who presented the year-end and quarterly ȴQDQFLDOSHUIRUPDQFH7KHQHZ*URXS CEO took the helm for the third quarter ȴQDQFLDOUHSRUWLQ1RYHPEHUZKHUH he addressed questions on the rapidly changing operating environment as well as partook in discussions on his strategic 7KH*URXS&(2DQG*URXS&)2DWWKHȴUVWYLUWXDOSUHVVFRQIHUHQFHLQ$XJXVW plans for the Group under Forward23+. The Group maintained its twice-yearly press conferences to brief the media on LWVȴQDQFLDOSHUIRUPDQFH:KLOHWKH SIGNIFICANT EVENTS: IXOO\HDU UHVXOWVSUHVVEULHȴQJLQ February was routine, the half-year 2020 Date (YHQW UHVXOWVSUHVVFRQIHUHQFHZDVWKHȴUVWWR 0DUFK 5HVLJQDWLRQRI<%6HQDWRU7HQJNX'DWXN Bursa be held virtually with both the Group CEO Seri Utama Zafrul Tengku Abdul Aziz as Announcement and Group CFO holding court. The *&(2RI&Ζ0%*URXS+ROGLQJV%HUKDG Investor Relations team ensured that all DQG&Ζ0%%DQN%HUKDG ȴQDQFLDOVWDWHPHQWVDQGSUHVVUHOHDVHV ZHUHVXEPLWWHGWR%XUVD0DOD\VLDZLWKLQ 0D\ &Ζ0%*URXSDSSRLQWV'DWRȇ$EGXO Bursa Rahman Ahmad as Group CEO and Announcement the stipulated dates and times, all ([HFXWLYH'LUHFWRUHHFWLYH-XQH necessary documentations are uploaded to the Group’s Investor Relations 18 June 2020 Resignation of Adisorn Sermchaiwong as Bursa webpage, as well as ensure that the 3UHVLGHQW&(2RI&Ζ0%7KDL Announcement investor presentations are emailed to pertinent internal and external stakeholders. ANNOUNCEMENT OF FINANCIAL RESULTS: Date (YHQW Type of Meeting 0D\ &Ζ0%*URXS45HVXOWV Conference Call 28 August 2020 &Ζ0%*URXS45HVXOWV Conference Call 1RYHPEHU &Ζ0%*URXS45HVXOWV Conference Call 26 February 2021 &Ζ0%*URXS45HVXOWV Conference Call 72 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Investor Relations personally with senior members of PDQDJHPHQWWRDVNVSHFLȴFTXHVWLRQV and to receive responses face-to-face. This provides the bedrock to a strong investor-management relationship, where trust is built and earned. As a result of global travel restrictions, investors were XQDEOHWRWUDYHOWR0DOD\VLDWRPHHWXV while we were unable to participate in any conferences and roadshows over the year. Investor engagements were moved online as investor conferences went virtual, as did all corporate access. 7KH%RDUGRI'LUHFWRUVDGGUHVVLQJVKDUHKROGHUVDWWKHUG$*0 0DNLQJWKHEHVWRIWKHFLUFXPVWDQFHVWKH Group kept a high level of investor engagement throughout the year. We AGM/EGM conducted a total of 63 investor meetings in 2020, a predictable decrease from the 2020 marked the Group’s inaugural virtual Group CEO personally addressed queries 85 meetings in 2019. Nonetheless, going $QQXDO*HQHUDO0HHWLQJ $*0 LQOLJKWRI IURPWKH0LQRULW\6KDUHKROGHUV:DWFKGRJ online accorded the opportunity to the exceptional circumstances. The *URXS 06:* DQG3HUPRGDODQ1DVLRQDO engage with a higher number of buy- and RULJLQDO$*0GDWHRI$SULOZDV Berhad (PNB). Unsurprisingly, a large sell-side analysts and fund managers as GHOD\HGGXHWRWKHDGYHQWRIWKH0&2 proportion of the topics raised at the virtual meetings accommodated higher ORFNGRZQZLWK%XUVD0DOD\VLDDOORZLQJDOO UG$*0FHQWHUHGRQWKHLPSDFWRI number of participants. As such, we had listed companies a 2-month grace period COVID-19 on loan growth, asset quality, direct engagement with 561 analyst and WRFRQGXFWWKHLU$*0V:LWKVWULFWVRFLDO moratorium and account restructurings, investors in 2020, a 46% increase from distancing measures and inability of and exposures to vulnerable sectors. the 385 in 2019. Apart from these VHYHUDOQRQ0DOD\VLDQPHPEHUVRIWKH one-on-one and group meetings, the Board of Directors to travel to Kuala Group maintained its practice of twelve /XPSXU&Ζ0%*URXSȇVUG$*0ZDV INVESTOR MEETINGS larger-group meetings annually – eight FRQGXFWHGRQ-XQHLQ0HQDUD pre-closed period meetings with the &Ζ0% One of the major changes to the Investor Relations undertaking in 2020 was the domestic buy- and sell-side, and four TXDUWHUO\ȴQDQFLDODQQRXQFHPHQW As one of the major corporate highlights inability to conduct live investor meetings. FRQIHUHQFHFDOOV&Ζ0%1LDJDDOVRVDZD RIHYHU\\HDUWKH$*0LVWUDGLWLRQDOO\ One-on-one meetings allow for similar drop in the number of meetings where shareholders have the opportunity institutional investors to engage and investors met in 2020. to engage with members of Group 0DQDJHPHQW'HVSLWHKDYLQJMXVWMRLQHG NO. OF MEETINGS/NO. OF FUND MANAGERS AND ANALYSTS the Group less than a month before, the *URXS&(2SUHVHQWHGWKH ȴQDQFLDO 2019 2020 performance, the progress of the FM/ FM/ Forward23 roadmap, an update on the Meetings Analysts Meetings Analysts impact of COVID-19 on the Group’s RSHUDWLRQVLQWHUPVRIVWDFXVWRPHUV CIMB Group DQGȴQDQFLDOV'DWRȇ5DKPDQRXWOLQHGWKH In-house meetings 38 199 432 somber outlook for 2020 as the pandemic Conferences 19 85 14 109 would inevitably impact the Group’s Non deal roadshows 18 86 953 DELOLW\WRDFKLHYHLWVȴQDQFLDOWDUJHWVIRU Teleconferences 10 15 37 367 the year. In addition, he disclosed his plan to recalibrate the Forward23 program in Total 85 385 63 561 light of the new normal, which was eventually unveiled as Forward23+ in CIMB Niaga 2FWREHU:KLOHWKHYLUWXDO4 $VHVVLRQ In-house meetings 12 48 946 proved to be less engaging than normal, VKDUHKROGHUVȴHOGHGDZLGHUDQJHRI Total 12 48 946 pointed questions to the Board of Directors via electronic submissions. The CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 73 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Investor Relations CONFERENCES AND ROADSHOWS RESEARCH COVERAGE It is worth reiterating the importance of face-to-face meetings between Group &Ζ0%*URXSUHPDLQVZHOOFRYHUHGE\WKH 0DQDJHPHQWZLWKLQVWLWXWLRQDODQGVWUDWHJLFVKDUHKROGHUVSDUWLFXODUO\DWLQYHVWRU investment community as it remains a conferences as well as via non-deal roadshows (NDRs) regionally and globally. While the FRUHFRPSRQHQWRIWKH)%0./&ΖΖQGH[ The Group remains the second largest pandemic scuttled travel plans for most of the year, the Group was fortunate to ȴQDQFLDOLQVWLWXWLRQLQ0DOD\VLDE\DVVHWV participate in 2 investor conferences in January 2020 in Kuala Lumpur and Singapore, DQGWKHȴIWKODUJHVWLQ$6($1$VRIHQG before global travel restrictions kicked in. As most planned live events were cancelled December 2020, the stock had active throughout the year, many gravitated towards virtual conferences. The Group CFO coverage by a total of 22 analyst and represented the Group in most of the online events where he provided updates on the research houses, and continues to be well VWDWHRIWKHEXVLQHVVZLWKLQWKHHYHUFKDQJLQJȵX[RIWKHSDQGHPLFDQGGLVFXVVHG tracked by buy-side analysts and fund LVVXHVUHODWLQJWRDVVHWTXDOLW\DQGȴQDQFLDOSHUIRUPDQFH managers domestically, regionally and globally. :HDOVRFRQGXFWHGRXUȴUVWYLUWXDO&Ζ0%*URXS&(2URDGVKRZLQ2FWREHUIROORZLQJWKH announcement of the recalibrated Forward23+ program, where we held a large group No Research House RQOLQHEULHȴQJIROORZHGE\DVHULHVRIVPDOOJURXSVDQGWDUJHWHGRQHRQRQHPHHWLQJV $ɝQ+ZDQJΖQYHVWPHQW%DQN with pertinent shareholders. In light of the lower number of events held in 2020, we had 2 AllianceDBS Research HYHQWUHODWHGPHHWLQJVGXULQJWKH\HDUFRPSDUHGWRLQ 6LPLODUO\WKHQXPEHU 3 AmInvestment Bank RIIXQGPDQDJHUVDQGEX\VLGHDQDO\VWVHQJDJHGDWHYHQWVIHOOWRYHUVXVWKHWKH 4 Bernstein Research year before. The share register analysis remains an important tool for the Investor 5 BofA Global Research Relations program to better identify and engage strategically important stakeholders. 6 Citi Investment Research &/6$6HFXULWLHV CONFERENCES AND ROADSHOWS 8 Credit Suisse Securities 9 Hong Leong Investment Bank Date (YHQW Location Organiser -30RUJDQ6HFXULWLHV 6 January 2020 &Ζ0%WK$QQXDO0DOD\VLD Kuala Lumpur &Ζ0% 11 KAF-Seagroatt & Campbell Corporate Day Securities 12 Kenanga Investment Bank 21 January 2020 8%60DOD\VLD&RUSRUDWH'D\ Singapore UBS 0DFTXDULH&DSLWDO6HFXULWLHV 0DUFK Credit Suisse ASEAN Virtual Kuala Lumpur Credit Suisse 0D\EDQNΖQYHVWPHQW%DQN Corporate Day 0Ζ')$PDQDKΖQYHVWPHQW%DQN 10 June 2020 UBS OneASEAN Virtual Kuala Lumpur UBS 0RUJDQ6WDQOH\5HVHDUFK Conference 1RPXUD6HFXULWLHV 18 Public Investment Bank 4 August 2020 CLSA Cashless Society Day Kuala Lumpur CLSA 19 RHB Research October 2020 &Ζ0%*URXS&(2ΖQYHVWRU Kuala Lumpur &Ζ0%*URXS 20 TA Securities Roadshow 21 UBS Securities 22 UOB Kay Hian CREDIT RATING The Investor Relations team undertakes SURȴOHIRUDOOEDQNLQJHQWLWLHVLQFOXGLQJ 2020 as the world reeled from the the management of all communications &Ζ0%*URXS pandemic and where external with domestic, regional and global credit stakeholders placed greater reliance on rating agencies. The Group has solicited Credit ratings are vital indicators of a the independent credit ratings. As such, and unsolicited arrangements with FRUSRUDWHRUEDQNȇVȴQDQFLDOKHDOWKULVN the relationships with credit rating 0RRG\ȇVΖQYHVWRUV6HUYLFHV5$05DWLQJV and stability, and are relied on by agencies are treated with utmost 6WDQGDUGDQG3RRUȇV 6 3 0DOD\VLDQ numerous stakeholders including importance as we maintain year-round 5DWLQJ&RUSRUDWLRQ 0$5& DQG)LWFK FRXQWHUSDUW\ȴQDQFLDOLQVWLWXWLRQV engagements culminating in annual rating 5DWLQJV WRSURYLGHORFDODQGIRUHLJQ institutional investors and ecosystem review discussions with senior members currency rating coverage on the credit partners. This was especially pertinent in RI&Ζ0%*URXSPDQDJHPHQW7KHWHDP provides substantial data and disclosure to ensure fair and thorough analysis. 74 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Investor Relations SHARE PRICE PERFORMANCE AND FOREIGN SHAREHOLDING With a backdrop of a world reeling from DW502YHUWKHPRQWKSHULRGWKH (versus the target of <53.4%). Despite the the COVID-19 pandemic, it was no Group’s share price declined by 14% GLɝFXOW\HDUWKH*URXSZDVSOHDVHGWR surprise that global equity markets took a compared to the adjusted share price of announce a respectable dividend payout severe beating in 2020. The threatening 50DVDWHQG WUDQVODWLQJWRD ratio of 40%, in line with its 40-60% economic crisis sent markets plunging in 12.5% underperformance against the payout policy. the middle of the year, before optimism of )%0./&ΖLQ a vaccine-driven recovery triggered a 7KHSDQGHPLFIXHOHGFDSLWDOȵLJKWRI rebound in December. The benchmark With the combination of lower operating global investors during the year translated )%0./&ΖHQGHGWKH\HDUXSDIWHU income and elevated provisions, partially to a sharp reduction in the Group’s GHFOLQLQJE\DVPXFKDV <7'LQ RVHWE\VKDUSO\UHGXFHGRSHUDWLQJ foreign shareholding, which stood at 0DUFK1HYHUWKHOHVVȴQDQFLDOVWRFNVERUH expenses, the Group expectedly fell short 20.9% as at end-2020 compared to 30.2% WKHEUXQWRIWKHPDUNHWVHOORDQG of its headline ROE and loan loss charge DVDWWKHHQGRI ȂD CIMB GROUP SHARE PRICE AND VOLUME 6 300 5 250 4 200 3 150 2 100 1 50 0 0 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 Volume (’mil) (RHS) Price (RM) (LHS) CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 75 MANAGEMENT DISCUSSION AND ANALYSIS – PERFORMANCE REVIEW Investor Relations CIMB GROUP FOREIGN SHAREHOLDING 32 30.2% 30.4% 30.4% 30 27.9% 28 26.3% 26 25.6% 24 22.5% 22.3% 22.0% 22 20.9% 20.9% 20.6% 20.7% 20 18 16 14 Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20 SHAREHOLDERS’ RETURNS (6 JUNE 2005* – 31 DECEMBER 2020) 500 450 400 350 300 -12.5% 250 200 150 100 1 YEAR 15.5 YEARS &Ζ0% 209.6% 50 )%0./&Ζ 4.5% 222.2% 0 Jun 05 Jun 06 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17Jun 18 Jun 19 Jun 20 Dec 20 FBMKLCI Index CIMB Note: 'DWHRIDQQRXQFHPHQWRIWKH0 $EHWZHHQ&Ζ0%%HUKDGDQG&$+% 10-YEAR FOREIGN SHAREHOLDING (DECEMBER 2010 – DECEMBER 2020) 45% 40% 35% 30% 25% 20.9% 20% 15% 10% Dec 10 Dec 11 Dec 12 Dec 13Dec 14 Dec 15 Dec 16 Dec 17 Dec 18Dec 19 Dec 20 76 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Financial Calendar 28 FEBRUARY 2020 16 MARCH 2020 17 MARCH 2020 9 APRIL 2020 Announcement of the Notice of book closure for Date of entitlement for the Issuance of Annual Report unaudited consolidated single tier second interim single tier second interim IRUWKHȴQDQFLDO\HDUHQGHG ȴQDQFLDOUHVXOWVIRUWKH dividend of 12.00 sen per dividend of 12.00 sen per b'HFHPEHU fourth quarter and VKDUHIRUWKHȴQDQFLDO\HDU VKDUHIRUWKHȴQDQFLDO\HDU ȴQDQFLDO\HDUHQGHG ended 31 December 2019 ended 31 December 2019 b'HFHPEHU 13 APRIL 2020 22 MAY 2020 2 JUNE 2020 30 JUNE 2020 Payment of the single tier Announcement of the Notice of 63rd 63rd Annual General interim dividend of 12.00 unaudited consolidated sen per share for the ȴQDQFLDOUHVXOWVIRUWKHȴUVW Annual General 0HHWLQJ ȴQDQFLDO\HDUHQGHG TXDUWHUHQGHG0DUFK 0HHWLQJ b'HFHPEHU 2020 28 AUGUST 2020 27 NOVEMBER 2020 26 FEBRUARY 2021 Announcement of the Announcement of the Announcement of the unaudited consolidated unaudited consolidated unaudited consolidated ȴQDQFLDOUHVXOWVIRUWKH ȴQDQFLDOUHVXOWVIRUWKH ȴQDQFLDOUHVXOWVIRUWKH second quarter and half third quarter ended fourth quarter ended year ended 30 June 2020 b6HSWHPEHU b'HFHPEHU 2021 TENTATIVE DATES 31 MAY 2021 30 AUGUST 2021 30 NOVEMBER 2021 FEBRUARY 2022 1Q 2021 2Q 2021 3Q 2021 4Q 2021 Financial Results Financial Results Financial Results Financial Results CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 77 MANAGEMENT DISCUSSION AND ANALYSIS – BUSINESS REVIEW Group Consumer Banking Despite the challenging environment and headwinds, our business remained resilient DQGUREXVW:HDFKLHYHGKHDOWK\EDODQFHVKHHWJURZWKDQGSUHSURYLVLRQRSHUDWLQJSURȴW improvement. As the pandemic curtailed business momentum and impacted our critical VWDNHKROGHUVLQFOXGLQJFXVWRPHUVDQGHPSOR\HHVZHIRFXVHGRXUHRUWVRQ implementing key risk mitigation strategies mainly to ensure safety of our employees, while rolling-out various loan relief programmes for our customers-in-need. Various measures were also taken to manage credit risk and asset delinquencies. During the year, our emphasis was also on accelerating digital engagement through transactions and digital acquisition, optimising loans and deposits spread and cost management. by Samir Gupta WHO WE ARE AND WHAT WE DO We provide conventional and Islamic banking solutions to individual Our products and services are also accessible over-the-counter in all our customers and small businesses. Our range of products include branches regionally. By tapping the potential of digital, big data and GHSRVLWDFFRXQWV ORDQV SHUVRQDOȴQDQFLQJ FUHGLWFDUGV ZHDOWK advanced analytics, and backed by a holistic product proposition as well management and investments; bancassurance; remittance and FX. as our integrated regional banking model, we aim to deliver superior 7KHVHRHULQJVFDQEHDFFHVVHGWKURXJKPXOWLSOHGHOLYHU\FKDQQHOV customer experience. i.e., online banking, mobile banking, self-service banking via ATM WHUPLQDOVSKRQHEDQNLQJDOORIZKLFKKHOSIDFLOLWDWHȴQDQFLDO transactions beyond normal banking hours. WHAT OUR STAKEHOLDERS EXPECT Shareholders Customers Communities Employees Regulators Achieve stability, respond to 2HUFRQYHQLHQWVHFXUH Provide support to Build talent pipeline to Remain nimble to customers’ needs and and reliable access to customers impacted by the support big data & advance regulations and policies to deliver resilient growth and ȴQDQFLDOVROXWLRQV pandemic via various relief analytics industrialisation. support customers sustainable returns. programmes. impacted by the pandemic. HOW WE CREATED VALUE IN 2020 6.5% > 13m 257k >70 13% pre-provision operating Customers served across Accounts assisted through machine learning models of total gross loans granted profits. MISTC. relief programmes across completed delivering relief. MISTC. business uplift. Strategic Themes Material Matters &DSLWDOV$HFWHG • Delivering Sustainable Financial Returns • Health, Safety, & Well-being • Financial • Customer Centricity • Technology • Manufactured • Customer Experience • Intellectual FINANCIAL PERFORMANCE While business growth and momentum were impacted by the pandemic, loans and CASA growth remained resilient. Loans grew +2.7% YoY, mainly due to the uptake in Malaysia. CASA grew +30.2% contributed by strong growth across all ASEAN markets. In 2020, Group Consumer %DQNLQJ *&% DFKLHYHGDFRPPHQGDEOHSUHSURYLVLRQRSHUDWLQJSURȴWJURZWK2SHUDWLQJH[SHQVHVUHGXFHGE\DVDUHVXOWRI prudent cost management measures across MIST. GCB’s growth potential was optimised despite headwinds such as central bank rate cuts DFURVV0Ζ67DQGWKHSDQGHPLFLQGXFHGPRGLȴFDWLRQORVVHV'XULQJWKH\HDU*&%DOVRDFFHOHUDWHGLWVGLJLWDOHQJDJHPHQWE\HQFRXUDJLQJ LQWHUQHWEDQNLQJWUDQVDFWLRQVDQGLQWHQVLI\LQJGLJLWDODFTXLVLWLRQV$VDUHVXOWDFWLYHGLJLWDOXVHUVJUHZE\GLJLWDOWUDQVDFWLRQV and proportion of digital acquisitions increased to 66.0% of total sales (by sales count). Pre-Provision Digital Transactions Loans CASA Operating Expenses 2SHUDWLQJ3URȴW Active Digital Users (Web & App) (RM billion) (RM billion) (RM million) (RM million) (#’million) (#’million) 2.7% 30.2% 4.6% 6.5% 17.7% 46.9% (4,495) (4,289) 184.9 189.8 63.2 82.3 2,942 3,133 YoY YoY YoY YoY 4.2 5.0 YoY 344 506 YoY 19 20 19 20 19 20 19 20 19 20 19 20 78 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Consumer Banking KEY RISKS & CHALLENGES Mitigation Strategies Results Operations disruption: – Implemented stringent health and safety – Seamless delivery of banking services. – Disruptions in operations and BAU SOPs, including physical distancing and – Minimal disruption to business operations. functions due to movement control orders crowd management at all branches. – No decline in employee productivity. and safety/health concerns of both Ȃ 6XSSRUWHGJRYHUQPHQWȇV&29Ζ' UHOLHI employees and customers. Split operations for call centre and collections, with work-from-home options IRUVWD Decelerating Business Momentum: – Focused on CASA growth and increasing – CASA increased +30.2% YoY & launched – Slow-down of business momentum across investment fee income through sales force GLJLWDO&$6$SURGXFWVLH'LJLWDO MISTC, exacerbated by central bank’s rate recalibration, digital engagement and sales journey via eKYC (MY) & Chill D (TH). cuts and external headwinds, which enablement. – Active Digital Users +17.7% YoY; total digital impacted both performance and Ȃ (ɝFLHQWO\PDQDJHGWKHVSUHDGIRUORDQV WUDQVDFWLRQV ZHE DSS Increasing Credit Risk: – Enhanced credit policies, devised customer – Devised Customer Segmentation to identify – Health and socio-economic impacts of segmentation criteria, and optimised credit high risk/impacted customers and &29Ζ' VHYHUHO\DHFWHGLQFRPH collection processes. proactively engage customers. potential of consumers, requiring us to Ȃ ([HFXWHGUHJLRQDO&29Ζ' SROLF\SURFHVV – Provided payment relief assistance to 257k HɝFLHQWO\PDQDJHFUHGLWFRVWVDQGDVVHW RNR (Rewards and Recognition) programme accounts across MISTC covering ~RM22 delinquencies. and exit approaches. billion in gross loans. – Provided seamless and convenient experience for customers to seek assistance via online and straight-through acceptance SURFHVVXVLQJ273IRUSRVLWLYHYHULȴFDWLRQ OPPORTUNITIES & GROWTH DRIVERS 2021 OUTLOOK & PROSPECTS Despite the challenges and headwinds, our During the year, we devised a customer In the year ahead, we will remain cautious core business engine remained robust. We segmentation strategy to identify high risk/ given the challenging outlook as business achieved balance sheet growth and impacted customers and proactively engaged momentum and operations will continue to improvements in pre-provision operating with them to provide relevant solutions. We EHLPSDFWHGE\WKH&29Ζ' DQG SURȴWVWKURXJKVSUHDGRSWLPLVDWLRQ also accelerated our digital engagement economic disruption as a result. For 2021, investment fee focus and prudent expense initiatives by driving digital user activation, Group Consumer Banking is looking to management. Our consumer franchises in transactions and digital sales acquisition. Digital GULYHVXVWDLQDEOHSURȴWJURZWKWKURXJK Malaysia and Indonesia continue to take account opening via eKYC was also CASA, RAROC (Risk-Adjusted Return on market share and grow faster than industry for RSHUDWLRQDOLVHGWKURXJK0DOD\VLDȇV'LJLWDO Capital) optimisation, fee income, and mortgage, auto loans and CASA. In Malaysia, journey and Thailand’s Chill D products, while doubling-down on preferred banking and wealth management services. This will be the sales engine was recalibrated to emphasise Indonesia launched a mobile sales app for auto supported by personalised banking and on investment fee income growth resulting in loans. At the core, we continue to democratise reinforcing a customer experience VWURQJLQYHVWPHQW12ΖΖJURZWK FORWARD23+ FOCUS AREAS Group Consumer Banking will further accelerate its digital agenda particularly in Delivering Sustainable Financial Returns Customer Centricity the areas of innovation, operational ȏ (HFWLYHO\RSWLPLVHGDQGPDQDJHGORDQV • Ensured customers have access to essential digitalisation, payments, sales enablement and deposit spreads to grow net interest banking services during the pandemic while and acquisition. This is to strengthen our income and executed expense safeguarding customers’ well-being during digital banking leadership as we transform management initiatives to reduce cost. their branch visits. into a digitally-led bank. As we navigate a • Recalibrated sales force to develop fee • Proactively engaged with customers to challenging environment, cost income focus, achieving strong investment provide assistance via payment relief management will remain crucial and fee growth and investment product sales in programmes and for restructuring or Malaysia. rescheduling of loans across our core HQKDQFHGFUHGLWULVNPDQDJHPHQWHRUWV will continue to manage provisions. • Coherently led and executed a regional markets in ASEAN. credit policy and processes across MISTC to In summary, we expect to sustain growth manage delinquencies and manage credit risks. DQGSURȴWDELOLW\WKURXJKLQQRYDWLRQ • Accelerated digital engagement initiatives FRQWLQXRXVSURFHVVLPSURYHPHQWHɝFLHQW cost management and service excellence through driving digital user activation, as we move the franchise towards meeting transactions, digital sales acquisition and our Forward23+ goals and maintain our digital sales enablement. position as the leading consumer bank in • Leveraged and industrialised big data and ASEAN. advanced analytics for business uplift and support personalisation initiatives. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 79 MANAGEMENT DISCUSSION AND ANALYSIS – BUSINESS REVIEW Group Commercial Banking COVID-19 has had a profound impact on the way we deliver real value to our customers. The key has been to stand by our customers when they need us the most. ΖQbNHHSLQJZLWKWKLVVSLULWZHGLVEXUVHG50ELOOLRQLQORDQVWR60(VLQWKHODVWWZR years as committed in 2019. We also successfully remained on track towards digitalising RXU60(HFRV\VWHP$VZHFRQWLQXHWRPDQDJHWKHLPSDFWVRIWKHSDQGHPLFZHUHPDLQ vigilant and focused on what we can deliver to our customers, grounded on the principles of sustainability and our commitment to ever-improving customer experience. by Victor Lee Meng Teck WHO WE ARE AND WHAT WE DO We are a regional business committed to support the growth of the :HDGRSWDQLQWHJUDWHGPDUNHWLQJDSSURDFKZLWKUHJDUGVWRRXUȴQDQFLDO $6($1HFRQRP\WKURXJKWKHSURYLVLRQRIDIXOOVXLWHRIȴQDQFLDO product and services, which are tailored to meet the individual needs of services and solutions such as credit facilities, cash management RXUFXVWRPHUV:HRHUERWKFRQYHQWLRQDODQGΖVODPLFVROXWLRQVZKHUH solutions, treasury and structured products. We serve the businesses applicable in the respective markets. These are made available to our community, ranging from small and medium enterprises (SMEs), to customers through multiple channels such as online banking, our mid-corporates. dedicated relationship managers, SME and business centres; as well as CIMB’s extensive branch network across the region. WHAT OUR STAKEHOLDERS EXPECT Customers Communities Employees Regulators 2HUGLYHUVHGLJLWDOHQDEOHG Support local entrepreneurs, Keep the employee morale high Embrace the spirit of the regulatory product portfolio, agile services especially the SME segment, with and continue to support them with standards and codes of conduct and competitive prices to our ȵH[LEOHVROXWLRQVWKDWDUHDGMXVWHG their personal and professional and provide continuous support target customer segment. to the group’s sustainability aspirations. during the pandemic. policies. HOW WE CREATED VALUE IN 2020 RM15 billion 1,000 SMEs 2YHUVWDZRUNIURPKRPH RM2.5 billion In loans disbursed to the critical Attended the webinar sessions Foster a positive work Received by businesses by way of SME customers between organised to raise awareness on environment, with minimal relief facilities initiated by CIMB as KHOSLQJWKHPJURZ eCommerce solutions to help with disruption through implementation ZHOODVȴQDQFLDOVFKHPHV their operations, and maintain business continuity. RIHIIHFWLYHFRXQWHU&29Ζ' mandated by the regulator/ KHDOWK\FDVKȵRZSRVLWLRQ measures. government. Strategic Themes Material Matters &DSLWDOV$HFWHG • Customer Centricity • Customer Experience • Financial • Transform Fundamentals • Governance • Social & Relationship • Purpose-driven Organisation FINANCIAL PERFORMANCE RECOGNITION Despite the fact that the new business growth and income from 2020 was $ZDUGV $ZDUGLQJ%RG\ PXWHGLQPRVWPDUNHWVWKHUHZDVDSRVLWLYHJURZWKLQGHSRVLWVE\DVDW • Best SME Bank, Malaysia 31 December 2020. The imperative on loans in 2020 was about providing our • Best SME Bank, Singapore customers access to the right type of relief measures – both government- and • Best Digital Transformation &Ζ0%LQLWLDWHGȂVRWKDWWKH\DUHDEOHWRPDLQWDLQWKHLUFDVKȵRZSRVLWLRQDQG Initiative for SMEs (Banking), Global Business continue to build business resilience. Malaysia Outlook (GBO) • Most Innovative Credit Card (CIMB Awards 2020 Platinum Business Card) Loans Deposits Operating Income ȏ 0RVW&XVWRPHU&HQWULF&29Ζ' (RM billion) (RM billion) (RM billion) Debt Relief Scheme, Singapore • Outstanding Digital Innovation in Global Retail SME Banking Banking Innovation Awards 2020 -3.7%- 8.1% -3.5%- • Singapore International Initiative 65.5 63.1 65.7 71.0 3.4 3.3 Asian Banking and YoY YoY YoY of the Year for Supply Chain Finance 2020 19 20 19 20 19 20 Financing 80 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Commercial Banking KEY RISKS & CHALLENGES Mitigation Strategies Results Rising Credit Risks: – Redeployed resources to manage surge of – Over 51% of Commercial Banking loans in – Business disruption, loss of revenue, and payment assistance programme. the region opted for the loan moratorium FDVKȵRZFKDOOHQJHVDHFWLQJRXU Ȃ 6XSSRUWHGJRYHUQPHQWȇV&29Ζ' UHOLHI programme as extended by each country. FXVWRPHUVGXHWR&29Ζ' ORFNGRZQLQ initiatives such as relief funds for businesses – Over RM2.5 billion in relief funds approved CIMB’s core ASEAN markets. and credit relaxation such as loan for Commercial Banking customers in the repayment moratorium. region. – Encouraged adoption of eCommerce – Encouraging participation of over 1000 business models, as well as use of cloud- SMEs in webinars conducted to raise based solutions such as HR solutions to awareness on the various programmes minimise costs and maintain business RHUHGE\&Ζ0% continuity. 'HFHOHUDWLQJ(FRQRPLF*URZWK – Shifted our strategy to focus on Deposits Ȃ $FKLHYHG OPPORTUNITIES & GROWTH DRIVERS 2021 OUTLOOK & PROSPECTS The year 2020 has changed the dynamics of TXHULHVRQ&29Ζ' ȴQDQFLDOVFKHPHVDQG The ASEAN and the global economy has our business and operations. The key game working capital loans. In short, we have had EHHQKLWKDUGE\&29Ζ' LQ:HDUH changer was our ability to remain agile and many opportunities to ensure our customers hopeful that the rapid introduction of adapt to the ‘new normal’, which is all about have seamless access to credit and other vaccinations will not only help the recovery creative and innovative ways to stay connected ȴQDQFLDOVROXWLRQVGXULQJWKHFKDOOHQJLQJ\HDU HRUWVEXWDOVRDFFHOHUDWHWKHHFRQRP\DW to our customers through digitalisation. In In 2020, we deployed various relief facilities in a faster pace. While we remain committed doing so, we enhanced our processes and the form of loan moratoriums and extended/ to support our ASEAN growth aspirations equipped our customers with alternative in the post-COVID era, our key focus will be relaxed credit terms by various governments/ solutions. on enhancing our value propositions for authorities in ASEAN. We also introduced our our customers. For instance, through our InstaBiz solution, we own relief facilities such as Business Relief facilitated quick turnaround on decisions for Fund and Payment Assistance Programme for • &DWDO\VH60(*URZWK We will build on loan applications from micro segment SMEs and Restructuring and Rescheduling to the SME segment and assist them with customers in Malaysia. During the year, more HDVHEXVLQHVVHVLQWKHLUȴQDQFLDOFRPPLWPHQW WKHLUFDVKȵRZQHHGVDVZHOODVOHYHUDJH than 3,000 customer accessed and submitted DQGFDVKȵRZV on government guarantee schemes to loan applications through CIMB’s BizChannel drive SME growth in all our markets. As a result, businesses were able to retain and Clicks online banking platform. • Maintain Asset Quality: As the global QHFHVVDU\FDVKȵRZVZKLOHWDNLQJDSUXGHQW economy continues to grapple with the Similarly, in Indonesia, our Octo Smart virtual and cautious approach to managing their ‘new normal’ in the post-COVID era, we assistant, which provides automation of investments. Despite the many disruptions recognise that certain sectors such as product application & approval process, caused by the pandemic, we witnessed a hotel and tourism will remain vulnerable VLJQLȴFDQWO\UHGXFHGZDONLQVWREUDQFKHVΖQ growth in deposits in Malaysia, Indonesia, ZLWKVORZUHFRYHU\2XUHRUWVZLOOEHWR Singapore, we introduced an Electronic Virtual Singapore and Cambodia. continue to assess and improve our due Assistant (EVA) to help customers with their diligence mechanisms such as onboarding, credit underwriting, performance monitoring, in addition to FORWARD23+ FOCUS AREAS pro-actively strengthening the fundamentals of asset quality Delivering Sustainable Financial Returns Customer Centricity management. • Deployed de-risk strategies to manage risk • Engaged with customers to help them exposure at portfolio level, which in turn DFFHVVDQGEHQHȴWIURPYDULRXVORDQ • ΖPSURYH(ɝFLHQFLHV Our contributes to improved asset quality. moratorium schemes in our core markets, GLHUHQWLDWHGDSSURDFKWRFXVWRPHUV ZLOOLQFOXGHRXUGLJLWDOLVDWLRQHRUWV • Rolled-out a robust asset quality of Malaysia, Indonesia, Singapore, Thailand which will focus on expanding our digital management programme to assess and and Cambodia. banking capabilities, as well as deploying DGGUHVVYDULRXV&29Ζ' LPSDFWV • Rolled-out a well-orchestrated regional advanced analytics for data-driven • Heightened delinquency management and communications plan to channel useful decision making for targeted cross proactively introduced repayment information and assist customers selling and up selling opportunities. assistance measures for our customers. throughout the moratorium period. • Elevate Sustainability Agenda: Over • Leveraged on advanced analytics and • Provided relief funds to help customers the next 3 years, our aspiration is to $UWLȴFLDOΖQWHOOLJHQFH $Ζ WRGLJLWDOLVHSURGXFW recapitalise their businesses to be able to implement the Group Sustainability and application and approval processes. manage the disruptions and cash crunch Sustainable Financing policies to guide • Promoted greater use of online banking VLWXDWLRQVGXHWR&29Ζ' all decision making, and drive solutions as a means to accelerate adoption responsible business practices in RIWKHQHZQRUPGXHWR&29Ζ' 7KLVLV Commercial Banking. Towards this, we done through the various digitalisation have already introduced relevant environment and social standards and initiatives such as InstaBiz, Octo Smart guidelines for our customers. virtual assistant and Electronic Virtual Assistant. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 81 MANAGEMENT DISCUSSION AND ANALYSIS – BUSINESS REVIEW Group Wholesale Banking We defended our business in an unprecedented market environment and demonstrated RXUOHDGHUVKLSLQVXVWDLQDELOLW\DQGUHVSRQVLEOHEDQNLQJ:KLOVWRXURYHUDOOȴQDQFLDO performance has been impacted by increased provisions due to elevated credit concerns amid WKHSDQGHPLFRXUEXVLQHVVUHPDLQHGVWURQJUHSRUWLQJUHYHQXHDW50 ELOOLRQZLWK 7UHDVXU\ 0DUNHWVVHHLQJ WHO WE ARE AND WHAT WE DO We are a leading Wholesale Banking franchise (FICC) securities and derivatives, structured online trading platform that provides our in ASEAN, catering to the banking needs of investments and equity derivatives. Our clients access to Asian and US debt and equity both corporate and institutional clients. Our products are distributed across various markets. In addition, our regional Private regional banking solutions for corporate and customer segments – from retail and high %DQNLQJVHUYLFHRHUVFXVWRPLVHGDGYLVRU\ LQVWLWXWLRQDOFOLHQWVLQFOXGH L LQYHVWPHQW net-worth individuals to Corporates, Non-Bank portfolio planning and wealth management banking services such as capital market fund Financial Institutions and Financial Institutions. solutions for high net-worth individuals. raising, corporate advisory services, mergers and acquisitions (M&A); (ii) cash and trade Beyond our tailored solutions for corporate In line with the Group’s footprint, our key value products such as cash management and trade and institutional clients, we are also one of the proposition is our regional presence, ȴQDQFLQJ LLL ȴQDQFLQJVROXWLRQVUDQJLQJIURP top brokers in the region through CGS-CIMB, platforms and solutions. Our cross-border traditional trade and capital expenditure our joint-venture with China Galaxy Securities, regional operating model equips us with the ȴQDQFLQJWRVWUXFWXUHGWUDGHYDOXHFKDLQ where we have one of the most FDSDELOLWLHVWRRHULQVLJKWVRQUHJLRQDO SURMHFW0 $DQGOHYHUDJHȴQDQFLQJ DVZHOODV comprehensive research coverage in the PDUNHWVDQGRHUEHVSRNHSURGXFWVZLWK (iv) treasury and markets products such as region, producing in-depth research analysis sustainable returns. In doing so, we also ȴ[HGLQFRPHFXUUHQF\DQGFRPPRGLWLHV FRYHULQJHTXLWLHVȴ[HGLQFRPHDQGHFRQRPLFV deliver a best-in-class and seamless customer in addition to our award-winning i-Trade, an experience across all markets. WHAT OUR STAKEHOLDERS EXPECT Shareholders Customers Communities Employees Regulators Achieve stability, respond to Continuous support by Demonstrate leadership in Invest in building capabilities Remain responsive to the customers’ needs and deliver providing loan moratorium, sustainability and responsible and skills of our employees. changing market regulations resilient growth and restructuring and banking. and policies such as the sustainable returns. rescheduling during and FHVVDWLRQRIΖQWHUEDQN2HUHG post-COVID. Rates (IBOR). HOW WE CREATED VALUE IN 2020 10% YoY 93% RM970 million 96% USD100 million Growth in Revenue from Percentage of loan New Sustainability Linked Employees across the region Inaugural KLIBOR-USD SOFR Treasury & Markets. moratoriums as well as Loans approved to support who completed Digital, Data, cross currency basis swap. restructuring and sustainability causes. Design related education. rescheduling requests approved, to support clients impacted by the pandemic. Strategic Themes Material Matters &DSLWDOV$HFWHG • Delivering Sustainable Financial Returns • Customer Experience • Financial • Disciplined Execution • Sustainable Finance • Social & Relationship • Purpose-driven Organisation FINANCIAL PERFORMANCE :KROHVDOH%DQNLQJFRQWULEXWHGSRVLWLYHO\WRWKH*URXSȇVUHYHQXHDW50 ELOOLRQȵDW Wholesale Banking Loans and Deposits by Country 7RWDO:KROHVDOH 7RWDO:KROHVDOH (%) 3URȴW%HIRUH7D[ /RDQV 'HSRVLWV 3URYLVLRQV Singapore Others Others (RM billion) (RM billion) (RM billion) (RM billion) 6.7% 3.6% 6.0% Malaysia Thailand Singapore 51.4% 3.3% 16.7% Indonesia 9.6% Thailand Loans Deposits 8.6% 0.657 0.352 -81.8%- -5.2% 3.8% 293.5%2 1.935 119.1 112.9 156.1 162.1 Indonesia Malaysia YoY YoY YoY 2.587 YoY 17.3% 76.8% 19 20 19 20 19 20 19 20 82 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Wholesale Banking CHALLENGES/RISKS Mitigation Strategies Results Increasing Credit Costs: – Introduced more rigorous Ȃ RIORDQPRUDWRULXPVDVZHOODV – Loss of revenue and income opportunities due to the impact credit monitoring procedures restructuring and rescheduling requests RI&29Ζ' SRWHQWLDOO\LQFUHDVLQJWKHGHIDXOWUDWHVDQG and engaged impacted clients were approved, to support clients FUHGLWORVVHV&UHGLWFRVWLQFUHDVHGIURPLQ WR proactively for restructuring impacted by the pandemic. 2.3% in 2020. and rescheduling. Shrinking Interest Margins: – Focused on diversifying – Despite the shrinking interest margins, – Low policy interest rates as a result of the pandemic; eroding revenue sources beyond our Net Interest Income has increased interest margins. The average net interest margin dropped loans. by 10.6% YoY. by 10-15bps YoY, especially in Malaysia and Indonesia. Decelerating Business Activities: – Focused on robust cost Ȃ &RVWWRΖQFRPH5DWLRORZHUHGIURP – Weak investor sentiments and lower risk appetites management. LQ WRLQ decreasing the pace and volume of business. Fee wallet from investment banking across the region dropped from 86'PLOOLRQ WR86'PLOOLRQLQ OPPORTUNITIES & GROWTH DRIVERS 2021 OUTLOOK & PROSPECTS The year 2020 was unprecedented, with and succesfully extended multiple unique socio-economic challenges across the Sustainability Linked Loans to support clients In 2021 and beyond, as we enter the world. Multiple policy rate cuts by central with environmental and social related post-COVID era and the ‘new normal’, banks across the globe, including in our core initiatives. We also supported companies we will continue to face operational and ASEAN markets, coupled with regulatory and across the region to weather the storm with a growth challenges across our ASEAN client requests on loan moratoriums have had DSSURYDOUDWHRQPRUDWRULXPDVZHOODV PDUNHWV+RZHYHURXUHRUWVZLOOEH VLJQLȴFDQWLPSDFWRQWKHSHUIRUPDQFHRI restructuring and rescheduling requests IRFXVHGRQ ȴQDQFLDOLQVWLWXWLRQV aimed at helping businesses navigate through the impacts of the pandemic as well as sustain • Disciplined execution, with clear Despite strong external headwinds, we their growth journey into post-COVID era. accountability and KPIs towards defended our income at a level similar to increasing our wallet share. We will GHPRQVWUDWLQJRXUDELOLW\WRUHPDLQ With a strong focus on improving client continue to deliver value by taking a resilient and agile in delivering sustainable experience, we strengthened our digital client-centric approach, cross-selling to business outcomes. Our Investment Banking capabilities to initiate several projects across improve returns and making our account WHDPFORVHGVHYHUDOKLJKSURȴOHGHDOV Treasury & Markets and Private Banking. In planning process more robust. including Axiata’s USD1.5 billion Sukuk, where the long run, our objective is to build CIMB was the only Malaysian bank in the innovative and intuitive CRM-tools for better • Regionalisation of operations to improve syndicate, and MR DIY's RM1.5 billion initial client relationship management. Towards this, HɝFLHQFLHVRSWLPLVHUHVRXUFHDOORFDWLRQ SXEOLFRHULQJ we remained true to our commitment to and manage capital expenditure. In the future-proof our employees by equipping process, we will also streamline middle We continued to take tangible measures to them with skills of the future. In 2020, we improve our Economic, Environmental, Social DQGEDFNRɝFHIXQFWLRQVWREHWWHU successfully rolled-out a wide-range of VXSSRUWUHJLRQDOIURQWRɝFHWHDPV (EES) orientation and performance in our immersive 3D educational programmes for ȴQDQFLQJDFWLYLWLHVΖQ&RUSRUDWH%DQNLQJ RXUVWDWRHQKDQFHWKHLUNQRZOHGJHRQ 7KH\HDUZLOODOVRVHHXV built upon our responsible banking initiative digital, data, and design. • 6KDUSHQRXUFOLHQWIRFXV This would FORWARD23+ FOCUS AREAS mean focused account planning and XQLȴHGJRWRPDUNHWDSSURDFKWR Purpose-driven Organisation strengthen our position as a dominant/ • Successfully approved three new high • Strengthened digital infrastructure to SURȴOH6XVWDLQDELOLW\/LQNHG/RDQVWRWDOLQJ HQVXUHRIZKROHVDOHEDQNLQJVWD preferred banker for key clients. We will FORVHWR50 PLOOLRQLQ0DOD\VLDDORQHWR across the region were able to work-from- recalibrate our portfolio to maximise support sustainability initiatives in reducing home without disruptions, ensuring returns and address tail-end credit risks. carbon emissions, accelerating rural seamless day-to-day business operations. • 6WUHQJWKHQSURȴWDELOLW\DQGJURZWK HOHFWULȴFDWLRQDQGSURYLGLQJGLJLWDODQG The priority will be to grow and expand technology including internet and our product suite to drive higher income, communication services to focus areas. while also enhancing asset quality. • Accelerate digitalisation: We will RECOGNITION continue to drive adoption and $ZDUGV $ZDUGLQJ%RG\ pervasiveness of core systems with a • Best Bond House in Malaysia focus on improving frontline capability. Alpha Southeast Asia Best FI • Best Equity House in Malaysia $XWRPDWLRQRIPLGGOHDQGEDFNRɝFH Awards 2020 • Best Investment Bank in Malaysia operations will be critical to improve HQGWRHQGHɝFLHQFLHV • Best FX Bank for Interest Rates, FX Research and Market Alpha Southeast Asia Coverage Treasury & FX Awards 2020 • Best Corporate Treasury Sales and Structuring Team • Best Counterparty in Malaysia, Indonesia, Thailand (Asian Banks) Asiamoney FX Survey 2020 • Petrochemical Deal of the Year, Regional & Malaysia The Asset Triple-A Asia • Oil and Gas Deal of the Year, Regional & Indonesia Infrastructure Awards 2020 • Best Domestic Private Bank in Malaysia Asiamoney Private Banking • Best for Wealth Transfer/Succession Planning in Malaysia Awards 2020 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 83 MANAGEMENT DISCUSSION AND ANALYSIS – BUSINESS REVIEW Group Transaction Banking Despite a challenging business environment, we recorded strong growth in our deposit balances which has been our focus in 2020. The lockdown has accelerated the shift towards a cashless economy, an already growing trend, which further helped us JURZRXUFDVKPDQDJHPHQWEXVLQHVV2QWKHWUDGHȴQDQFHVLGHRXUIRFXVDUHDVKHOSHG LQFUHDVHRXUUHYHQXHZKLOHWKHPRUDWRULXPSRUWIROLRZDVHɝFLHQWO\PRQLWRUHGDQG managed with no negative impact. Our securities services business also registered positive growth despite market volatility. by Rafe Haneef WHO WE ARE AND WHAT WE DO :HRHUDZLGHUDQJHRISURGXFWVDQGVHUYLFHVFRYHULQJFDVK traditional trade products to structured trade and supply chain PDQDJHPHQWWUDGHȴQDQFHVXSSO\FKDLQȴQDQFLQJVROXWLRQVRQOLQH ȴQDQFLQJVROXWLRQVȂGHVLJQHGWRFDWHUWRRXUFOLHQWVȇGLYHUVHEXVLQHVV banking and securities services to best serve our clients – from large needs in domestic and international trade. corporates to small and medium enterprises, as well as institutional clients across the region. We also provide end-to-end securities services solutions via fund accounting services, custody services, corporate trustee and agency We provide comprehensive end-to-end cash management solutions services. GHVLJQHGWRKHOSRXUFOLHQWVPDQDJHWKHLUFDVKLQȵRZVDQGRXWȵRZV VDIHO\DQGHHFWLYHO\7KHVHVHUYLFHVDUHDOVRRHUHGWKURXJKRXURQOLQH Our key value proposition is our unique ability to fully facilitate banking platform, which is accessible via our website or mobile, catering WUDQVDFWLRQVVXSSO\FKDLQVDQGWUDGHȵRZVDFURVVWKH$6($1UHJLRQ to our clients’ business needs at their time of convenience. and beyond. We are the gateway to ASEAN, empowered by our strong networks, comprehensive digital platforms, best-in-class shariah 2XUWUDGHȴQDQFHSURGXFWVFRYHUDFRPSUHKHQVLYHUDQJHWKDWLQFOXGHV expertise as well as strategic alliances across the ecosystems that ERWKLPSRUWDQGH[SRUWVHUYLFHVEX\HUDQGVHOOHUȴQDQFLQJIURP represent the economic potential of this diverse region. WHAT OUR STAKEHOLDERS EXPECT Shareholders Customers Communities Employees Regulators Achieve stability, respond Help transition to a digital Financial inclusion during 3ULRULWLVHVDIHW\RHU Comply to all local payment to customers’ needs and and cashless society, and the lockdown period across alternative work-from- gateways and cross border deliver resilient growth and facilitate working capital the region through online home options, engage with regulations and adhere to sustainable returns. ȴQDQFLQJWRVXSSRUW account opening and VWDDFURVVWKHUHJLRQDQG mandated policies and deployed dropboxers and FDVKȵRZ pick up services to apply to build a learning culture. governance. BizChannel for online transaction. HOW WE CREATED VALUE IN 2020 0.2% RM883 million 23% 65% RM35.2 million Improvement in New limit working capital Increase in BizChannel Employees opted for Embarked on 15 regulatory Cost-to-Income (CIR) ratio. ȴQDQFLQJOLPLWVDSSURYHGLQ clients across the region. work-from-home options. related projects. 2020. Strategic Themes Material Matters &DSLWDOV$HFWHG • Delivering Sustainable Financial Returns • Health, Safety, & Well-being • Financial • Customer Centricity • Technology • Manufactured • Customer Experience • Intellectual FINANCIAL PERFORMANCE ΖQRXU7UDQVDFWLRQ%DQNLQJSHUIRUPDQFHLQWKHUHJLRQGHFOLQHGE\ RECOGNITION YoY, due to lower NIM, with revenue at RM2.7 billion. However, our securities $ZDUGV $ZDUGLQJ%RG\ services business continued to show a healthy growth of 6% YoY. Despite a GHFOLQHLQUHYHQXHRXUGHSRVLWVUHFRUGHGDGRXEOHGLJLWJURZWKE\ CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Transaction Banking KEY RISKS & CHALLENGES Mitigation Strategies Results (VFDODWLQJLPSDFWVRI&29Ζ' Ȃ 0RQLWRUHGWKHFDVKȵRZDQGȴQDQFLDO Ȃ RIWKHWUDGHPRUDWRULXPORDQVKDYH – Disrupted global business and trade, also position of our moratorium customers been settled DHFWLQJFXVWRPHUVȇUHYHQXHLQFRPH through their current accounts balances. – 11% of the loans were approved for potential and their ability to service their – Implemented cost-saving initiatives, and Rescheduling and Restructuring loans and credit facilities. instilled a cost-conscious culture and – 0.2% improvement in Cost-to-Income ratio mindset across the region. (CIR) 5XQQLQJWKHULVNRIXQVWDEOHV\VWHPV – Barred any and all system enhancements Ȃ XSWLPHUHFRUGHGIRURXURQOLQH – Technology vendors inability to travel to and updates during lockdown period to banking platform, BizChannel. work due to movement restrictions posed ensure system stability. challenges. – Launched BizChannel mobile banking app with a single sign-on/view of accounts across the region. Increasing regulatory pressures: – Responded swiftly through repricing – 67% of our revenue is from CASA which is – Policy rate cuts by Central Banks across the strategies at both client and product levels. partly impacted due to rate cuts. ASEAN markets impacted revenue potential – Implemented targeted strategies and Ȃ JURZWKLQ&$6$EDODQFHVGXHWRJURZWK DQGRYHUDOOȴQDQFLDOUHVXOWV launched multiple campaigns across the in deposit base. region to grow our deposit base. OPPORTUNITIES & GROWTH DRIVERS 2021 OUTLOOK & PROSPECTS The year 2020 started with a high degree of business also registered a healthy growth We expect the volatility of the market to XQFHUWDLQW\DVWKH&29Ζ' SDQGHPLFVWDUWHG despite market volatility. HVFDODWLQJGLVUXSWLQJHFRQRPLFDFWLYLWLHVȵRZ continue in 2021, with more interest rate of trade and commerce. Movement restrictions In keeping with our focus on improving cuts in the region. However, our growth impacted both people productivity and customer experience and digital banking strategy in strengthening our deposits is business performance. The situation was capabilities, during the year, we became the progressing well and for the year ahead, exacerbated as Central Banks across all our ȴUVWEDQNWRRɝFLDOO\LQQRYDWH%L]&KDQQHO we will be focused and committed to ASEAN markets responded through policy rate mobile banking app, where customers can view continue to grow our deposits in the cuts and corrective measures. their accounts across Malaysia, Indonesia, region. We will also focus on deepening Singapore, Thailand and Cambodia, with a client penetration in high-potential sectors Despite the challenging economy and business single sign-on in the app. As a result, our such as Automotive, Healthcare, environment, we recorded a very strong growth e-banking users continued to expand. As at in our deposits balances from all the countries end 2020, we registered a double-digit growth Telecommunication and Transportation. across the region, with an increase in Malaysia of 17% in the number of active e-banking DWΖQGRQHVLDDW6LQJDSRUHDW clients across the region. With slow and gradual economic recovery 7KDLODQGDWDQG&DPERGLDDW'HVSLWH IURPWKHLPSDFWVRI&29Ζ' ZHZLOO the lockdown, our cash management non- We continue to see this promising growth continue to focus on niche target markets LQWHUHVWLQFRPH 12ΖΖ DOVRLQFUHDVHGE\ trend in digital adoption into 2021. With to grow our trade business. On the digital acceleration in digital enablement and the compared to the previous year, with the front, we will continue to invest in associated risks, during the year, we also increase in number of transactions. Transaction Banking’s front, middle and rolled-out an online fraud monitoring platform )RURXUWUDGHȴQDQFHEXVLQHVVRXUHFRV\VWHP LQ6LQJDSRUHDVSDUWRIRXULQLWLDWLYHVWRRHU EDFNRɝFHSODWIRUPVPDLQO\WRHQDEOH solutions helped boost the revenue with new our customers a safe, secure and seamless automation, support business scalability WUDGHOLPLWRI50PLOOLRQIRUZRUNLQJFDSLWDO banking experience. and strengthen our internal processes to ȴQDQFLQJ6LPLODUO\RXUVHFXULWLHVVHUYLFHV enhance customer experience. FORWARD23+ FOCUS AREAS Delivering Sustainable Financial Returns Customer Centricity • Surpassed the 2020 target with the • Successfully implemented BizChannel HFRV\VWHPȴQDQFLQJSURJUDPPHRQERWK Customer Experience (CX) project to Working Capital and Value Chain Finance. execute upgrade/downgrade BizChannel • Won the Alpha Southeast Asia Award for packages within the same working day, Best Trade Finance Solution in Malaysia ZKLFKIXOȴOOHGRIWKHLQWHQGHGVXFFHVV 2020 for the Proton Ecosystem Programme. metrics. • Met 100% targets set for the former mid-term strategy Forward23+. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 MANAGEMENT DISCUSSION AND ANALYSIS – BUSINESS REVIEW Group Islamic Banking We responded rapidly to the unprecedented COVID-19 crisis and implemented extraordinary measures and changes in the way we work and how we serve our FXVWRPHUVGHVSLWHVHYHUHȴQDQFLDORSHUDWLRQDOPRYHPHQWDQGVDIHW\DQGKHDOWK FRQVWUDLQWV:HHPEUDFHGWKHOHDGHUVKLSJXLGDQFHSURYLGHGE\WKHFRXQWU\DQGȴQDQFLDO UHJXODWRUVDQGGHYHORSHGUHOLHISDFNDJHVDQGSURJUDPPHVIRURXUȴQDQFLDOO\LPSDFWHG FXVWRPHUV:HWRRNVWURQJSURDFWLYHDFWLRQWREHWWHUPDQDJHȴQDQFLDODQGQRQȴQDQFLDO risks through prudent capital allocation and industry advocacy, while working with our FROOHDJXHVWREHWWHUVHUYHFXVWRPHUVGXULQJWKLVGLɝFXOWSHULRG:HFRQWLQXHGLQRXU HRUWVWRHQDEOHORFDO60(VWREXLOGWKHLUUHVLOLHQFHDQGUHFRYHU\HRUWVWUDLQDQG GHYHORSPLFURHQWUHSUHQHXUVDQGGHYHORSȴQDQFLQJVROXWLRQVIRUWKHJUHHQHFRQRP\ sector. E\$KPDG6KDKULPDQ0RKG6KDUL WHO WE ARE AND WHAT WE DO :HDUHWKHΖVODPLFEDQNLQJDQGȴQDQFLDOVHUYLFHVIUDQFKLVHRIWKH*URXS In conducting Islamic business, we monitor and ensure good Shariah with an extensive suite of innovative Shariah-compliant products and governance and compliance across the Group. With the execution of our VHUYLFHV2XUVROXWLRQVLQFOXGHȴQDQFLQJVXNXNLQYHVWPHQWEDQNLQJ Islamic First strategy, we aim to extend the value proposition of Islamic transaction banking, banca-takaful and securities services for individual, products to our customers and the wider public. We aspire to provide commercial, corporate and institutional customers across ASEAN. ZRUOGFODVVΖVODPLFEDQNLQJDQGȴQDQFHVROXWLRQVZKLFKZLOOSURJUHVVLYHO\ integrate environmental, social and governance factors via a value-based DSSURDFKDKDOOPDUNRIΖVODPLFȴQDQFH WHAT OUR STAKEHOLDERS EXPECT Shareholders Customers Communities Employees Regulators Achieve stability, respond to 3URYLGHDGHTXDWHȴQDQFLDO Support the disadvantaged Invest in building capacities Remain responsive to the customers’ needs and deliver facilities to support micro businesses by and skills of the employees, changing market regulations resilient growth and operational and growth plans equipping them with relevant especially to build digital and and policies to relieve sustainable returns. GXULQJDQGSRVW&29Ζ' skills and providing access to technical skillsets that will economic burden to customers ȴQDQFH FRPSOHPHQWΖVODPLFȴQDQFH DVDUHVXOWRIWKH&29Ζ' expertise to deliver relevant pandemic. solutions. HOW WE CREATED VALUE IN 2020 40% Islamic 19% RM57 billion 30 micro-SMEs 30 VKDUHRIERRN of Group Islamic Banking *URVVȴQDQFLQJZDV 7KHȴUVW0LFUR%L]5HDG\ CIMB employees from )RUȴQDQFLQJWRPHHW%DQN revenue was contributed granted automatic cohort received grants, 7 divisions completed the Negara Malaysia’s (BNM) by Indonesia. Shariah-compliant training and capacity Associate Qualification in ȴQDQFLDOVHFWRUEOXHSULQW moratorium for individual development from CIMB Islamic Finance, an Islamic aspiration for Islamic and SME customers. Islamic and its partners. banking industry certification. banking industry. Strategic Themes Material Matters &DSLWDOV$HFWHG • Delivering Sustainable Financial Returns • Customer Experience • Financial • Disciplined Execution • Sustainable Finance • Social & Relationship • Purpose-driven Organisation (Value-based Intermediation) • Natural FINANCIAL PERFORMANCE RECOGNITION 2YHUDOOUHJLRQDOΖVODPLFȴQDQFLQJLQFOXGLQJDVVHWVXQGHU5HVWULFWHG$JHQF\ΖQYHVWPHQW $ZDUGV $ZDUGLQJ%RG\ $FFRXQWUHJLVWHUHGȴQDQFLQJJURZWKRI 86 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Islamic Banking CHALLENGES/RISKS Mitigation Strategies Results Adapting and Developing Islamic – Swiftly and proactively developed solutions – Handbooks were developed to support )LQDQFLQJ5HOLHI3DFNDJHVDQG to guide operations, systems treatment and roll-out of solutions in line with the Programmes: legal documentation to accommodate guidelines prescribed by the regulator as – Creating relief packages which reduced the ȵH[LEOHSD\PHQWDVVLVWDQFHSURJUDPPHV well as the Shariah Advisory Council (SAC), ȴQDQFLDOKDUGVKLSRIWKRVHDHFWHGE\WKH and relief packages for individuals and ZKLFKHQVXUHGWKDWDHFWHGFOLHQWVZHUH pandemic under the principle of ‘Ihsan’. businesses. not unduly burdened with additional payments. Planning Capital Allocation: – Developed controls and actions in response – CIMB Islamic Bank CET1 was 13.3% in 2020, – Loss of income due to the impacts of WRLGHQWLI\LQJNH\ULVNV FUHGLWULVNOLTXLGLW\ which enabled the bank to extend payment &29Ζ' SRWHQWLDOO\LQFUHDVLQJWKHGHIDXOW risk, negative carry risk and earnings risk. moratorium and assistance to eligible rates and credit losses in the absence of customers and companies. additional credit provisions. Managing Decelerating Business: – Streamlined our cost-and-spend behaviour Ȃ 2YHUDOORSHUDWLQJFRVWIHOOE\50PLOOLRQ – Rising costs due to lower product demand, to extract further savings. as discretionary spending was cut movement control orders, digitalisation and VLJQLȴFDQWO\ automation delays, and operational slow-down. OPPORTUNITIES & GROWTH DRIVERS The year 2020 was unprecedented, with the proactively to ensure that our solutions were We further moved towards the streamlining of ZRUOGFRSLQJDQGDGMXVWLQJWRWKH&29Ζ' aligned to the Islamic banking industry. process , documentation and Shariah contract pandemic. The health crisis and the resulting Our continuous focus on innovation providently IRUDOOIXQGHGWUDGHȴQDQFLQJSURGXFWVZKLFK movement control restrictions caused massive enabled the bank to provide an industry-wide IDFLOLWDWHGDȵH[LEOHDSSURDFKIRUIXQGHGWUDGH disruptions and negative socio-economic products during the moratorium phase. This liquidity solution by introducing Islamic impact globally. Market regulators and collateralised commodity Murabahah (CCM), VLPSOLȴFDWLRQRISURFHVVZDVDFDWDO\VWLQ ȴQDQFLDOLQVWLWXWLRQVWRRNDFWLRQWRPDQDJH LQFUHDVLQJWKHΖVODPLFWUDGHȴQDQFLQJDYHUDJH PDNLQJ&Ζ0%WKHȴUVWEDQNLQ0DOD\VLDWR DQGPLWLJDWHWKHȴQDQFLDOLPSDFWRQ introduce such a solution. We also rolled-out EDODQFHE\ individuals and businesses. We made and an awareness and capacity-building exercise, We also worked with our colleagues in FRQWLQXHWRPDNHVLJQLȴFDQWHRUWVWR ZKLFKOHGRWKHUΖVODPLFȴQDQFLDOLQVWLWXWLRQV FRPPHUFLDOEDQNLQJWRSURPRWHȴQDQFLDO prioritise the safety of our customers, while to sign the CCM agreement. This widened the inclusion through the launch of MicroBizReady continuing to serve them and minimise ability of Malaysia’s Islamic money market to in October, with an inaugural group of 30 business disruptions. We also took every raise short-term liquidity, which will help entrepreneurs from our ongoing CSR precaution to ensure the well-being of our FXVKLRQWKHHFRQRPLFLPSDFWVRIWKH&29Ζ' SURJUDPPHVZLWKWKH%DQGPLFUREXVLQHVV employees by maintaining strict safety health crisis. segments receiving critical business skills SURWRFROVDWWKHRɝFHDQGHQDEOLQJD training towards growing incomes for this We were the joint bookrunner for the issuance VLJQLȴFDQWQXPEHURIVWDWRZRUNIURPKRPH vulnerable segment in partnership with premier of RM203.6 million in Islamic convertible Although we were negatively impacted by the educational institutions. We continued our redeemable preference shares (CRPS), a major multiple policy rate cuts in 2020, the strength milestone in the development of Islamic equity HRUWVZLWKFRPSDQLHVLQWKHJUHHQHFRQRP\ of our people and resources enabled us to market for us, as it is an area that is ripe for VHFWRUWRREWDLQȴQDQFLQJZLWKDSLSHOLQHRI respond rapidly to our customers and develop opportunities in these sectors for 2021. innovation. We look forward to spurring the ΖVODPLFȴQDQFLQJUHOLHISDFNDJHVDQG growth of the Islamic equity capital markets programmes in a very short time frame. We through new shariah compliant equity engaged the industry and the regulator solutions. FORWARD23+ FOCUS AREAS 2021 OUTLOOK & PROSPECTS Delivering Sustainable Financial Returns In 2021, we will continue to grow and innovate to serve our • Continued to identify and tap opportunities to grow the Islamic FXVWRPHUVEHWWHULQWKHΖVODPLFȴQDQFHVSDFH2XUIRFXVZLOOEHRQ ȴQDQFHDQGHFRV\VWHPWREHWWHUVHUYHWKHJURZLQJ+DODOHFRQRP\ • enabling businesses in the green and halal sectors to navigate with a focus on food, pharmaceuticals and cosmetics, modest through the impacts of the pandemic with resilience as well as fashion, and Muslim-friendly travel sectors. sustain their growth journey into post-COVID era. • Continued focus on our HalalBizReady initiative to help Halal SMEs • working with our clients to maintain Shariah-compliant status, as JURZDQGREWDLQWKHQHHGHGFHUWLȴFDWLRQDVZHOODVWRLQFUHDVHWKHLU ZHOODVIDFLOLWDWLQJKDODOFHUWLȴFDWLRQZKHUHRSSRUWXQLW\DULVHVWR understanding of sustainability in order to help build the capacity of ensure both Islamic institutional as well as customer demands export-ready SMEs to grow continuously beyond their borders. are met. • increasing customers’ resilience into the future, with a stronger Purpose-driven Organisation DSSURDFKRQSURPRWLQJWKHLPSRUWDQFHRIȴQDQFLDOSODQQLQJDQG • Continued integration of Value-based Intermediation (VBI) into our wealth preservation. business strategies, to better drive business decisions based on true • catalysing Malaysian SMEs to transition towards sustainability FRVWVDQGEHQHȴWVWREXVLQHVVDQGRXUVWDNHKROGHUV7KHJUHDWHU through GreenBizReady, a one-stop sustainability solution that REMHFWLYHLVWRFDWDO\VHVRFLDOLPSDFWDQGVRFLDOȴQDQFHYLDPLFUR HPSRZHUV60(VZLWKȴQDQFLDOVROXWLRQVDQGLQFHQWLYHVVXFKDV entrepreneur programmes that empower underserved communities VXVWDLQDELOLW\OLQNHGȴQDQFLQJEHQHȴWVDFFHVVWRVXVWDLQDELOLW\ WRJDLQDFFHVVWRȴQDQFLDOVHUYLFHVDQGVROXWLRQV VHUYLFHSURYLGHUVWUDLQLQJDQGFDSDFLW\EXLOGLQJFHUWLȴFDWLRQDQG • Continued prioritisation of responsible banking products aligned advisory services, and business matching with support from with VBI through contributions to environmentally-focused projects industry leaders and government agencies. and initiatives via our EcoSave Savings Account-I where a total of ȏ FRQWLQXLQJHRUWVWRȴQDQFHEXVLQHVVHVIURPWKH%DQGPLFUR 0.2% is contributed by the bank on total average portfolio balance segments in priority or high-potential sectors that will contribute saved by customers. to shape a green economy. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 87 MANAGEMENT DISCUSSION AND ANALYSIS – BUSINESS REVIEW CIMB Digital Assets KDVEHHQDQXQSUHFHGHQWHG\HDUIRUDOOEXWLWKDVDOVREHHQDGHȴQLQJ\HDUIRU us where our digital businesses are concerned. As physical activity curtailed and public spaces shuttered in the face of lockdowns, the acceleration of digital adoption became synonymous with the new norm, and the need to build digital plays that are future-proof has never been more acute. Through active pivots and strategic measures, we have successfully navigated pandemic-driven challenges thus far and outperformed our key growth targets for the year. Our TNG-Ant Group joint venture doubled its user base, as did our digital bank in the Philippines, which saw triple-digit growth in its balance sheet year-on-year. We remain optimistic on the potential and trajectory of our digital assets, and we have clear strategic postures going into 2021 in terms of driving franchise growth and value. E\(HQG\6KDKXO+DPLG WHO WE ARE AND WHAT WE DO CIMB Digital Assets (CDA) comprises CIMB’s portfolio of digital businesses Ant Group has allowed the franchise to leapfrog into the retail payments and ventures, which today includes Touch ‘n Go and TNG Digital space, and today operates Malaysia’s leading e-wallet. (collectively Touch ‘n Go Group), as well as CIMB’s digital bank businesses in the Philippines and Vietnam. Also within the ambit of CDA is the Group’s start-up digital bank businesses in the Philippines (CIMB PH) and Vietnam (CIMB VN). CIMB PH continues to In addition to driving strategy, growth and overseeing the execution of lead the way as one of the fastest growing banks in ASEAN, whilst CIMB VN these businesses, our focus extends towards spearheading value creation is gaining recognition as it continues its transformation journey towards a of CIMB's investments in these franchises through equity and non-equity GLJLWDOȴUVWPRGHO partnerships. We also maintain general oversight in the digital bank space for the Group, 7RXFKȆQ*R 71* DUJXDEO\0DOD\VLDȇVȴUVWȴQWHFKFRPSDQ\KDVEHHQ in addition to platform-centric and ecosystem-based developments, Malaysia’s pioneering cashless payments platform centred on mobility and FROODERUDWLRQVDQGWUHQGVLQȴQDQFLDOVHUYLFHV transportation for over 20 years. TNG Digital (TNGD), our joint venture with WHAT OUR STAKEHOLDERS EXPECT Shareholders Customers Communities Employees Regulators Long-term returns and 'LHUHQWLDWHGYDOXH Financial inclusivity, Exposure to leading-edge digital Innovation, digital adoption and proliferation of high-growth, propositions and best-in-class accessibility and alternative EXVLQHVVPRGHOVȴQDQFLDO IXWXUHSURRȴQJRIȴQDQFLDO value-accretive digital digital platform experiences. GLJLWDOSODWIRUPVIRUȴQDQFLDO technology and forging of services delivery. businesses. services. strategic partnerships. HOW WE CREATED VALUE IN 2020 123.4% YoY 11.5 million RXWRI 82.7% YoY HZDOOHWLQ0DOD\VLD Growth in number of e-KYCed TNG eWallet users Customers of CIMB PH that Growth in number of The TNG eWallet captured 66% registered users for the PERFORMANCE HIGHLIGHTS RECOGNITION Despite challenging market environments, we have outperformed our key growth targets for 2020. TNGD recorded triple-digit growth in number of registered users, underpinned by the $ZDUGV $ZDUGLQJ%RG\ TNG eWallet’s strong performance across the Malaysian government’s eTunai and ePenjana initiatives, as well as a general uptick in demand for cashless services. CIMB PH also • Best Digital Bank – Global Banking & continued to grow at scale, breaching 3 million customers as at end-2020, merely two years Philippines 2020 (CIMB PH) Finance Review since we started operating. Our deposit book in the Philippines grew almost tenfold during the year, spurred by our strong digital propositions in partnership with GCash, as well as a • Innovative Digital Bank of PDUNHGLQFUHDVHLQVDYLQJVSURSHQVLW\DVDUHVXOWRI&29Ζ' the Year – Philippines The European No. of Customers Deposit Balance Loan Balance 2020 (CIMB PH) (million) (RM million) (RM million) • Best Employer Brand Employer Branding Award – Philippines 2020 Institute & World HRD (CIMB PH) Congress 82.7% 77 858.3% 17 442.5% • Best New Digital Bank Global Banking & 1.69 3.08 YoY 737 YoY 93 YoY FY19 FY20 FY19 FY20 FY19 FY20 – Vietnam 2020 (CIMB VN) Finance Review Registered Users Annual Active Users No. of Merchants (million) (million) (’000) 15.2 6.8 123.4% 148.7% 149.7% 11.5 4.2 10.5 118 293 1.3 YoY YoY YoY FY19 FY20 FY19 FY20 FY19 FY20 eKYC-ed users 88 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 CIMB Digital Assets CHALLENGES/RISKS Mitigation Strategies Results Pandemic-driven movement TNGD TNGD restrictions: – Shifted focus towards essential Ȃ ΖQLWLDOGHFOLQHLQWUDQVDFWLRQYROXPHVRVHWE\KHDOWK\QXPEHUVIRURQOLQH – Impacted volumes in mobility, services and online from the onset and essential services, user stickiness captured and subsequently transit as well as general retail of lockdowns, managed growth leveraged during recovery phases transactions strategically – Merchant growth exceeded targets for the year as SMEs began shifting to cashless/digital during pandemic Decelerated business CIMB PH CIMB PH activities: Ȃ 7KURWWOHGDFTXLVLWLRQHRUWVDQG – Improved deposit cash-in rate to 55% from 36.5% in the preceding year – Disrupted economic growth, cost, refocused on existing – Average deposit balance per cashed-in customer increased by over 300% deprioritised expansion customer base to deliver higher against prior year agendas, shifts in focus quality deposits and loans – Triple-digit growth for both deposit and loan balances towards survival and cross-selling sustainability CIMB VN CIMB VN – First in market to implement e-KYC solution, successfully piloted use case Ȃ ΖQWHQVLȴHGHRUWVWRZDUGVEXLOGLQJ in partnership with Toss towards the end of 2020 digital capability 6KLIWVLQRSHUDWLQJQRUPVDQG TNG TNG consumer behaviour: – Undertook multiple optimisation Ȃ 5)Ζ'VDOHVFRQWLQXHGWRJURZGHVSLWHSDQGHPLFDQGGHFUHDVHGWUDɝFDQG – Accelerated digital adoption, strategies to focus on key levers, WUDQVDFWLRQYROXPHVWRPLOOLRQWDJVIURPPLOOLRQLQWKHSUHFHGLQJ more acute demands for recalibrated views on business year best-in-class digital services, model and potential – Number of TNG cards linked to TNG eWallet (via PayDirect), increased competition ramping up digital transformative pathways OPPORTUNITIES & GROWTH DRIVERS Much has been documented about 2020 and PLOOLRQWDJVGHVSLWHVLJQLȴFDQWO\ORZHUWUDɝF In the Philippines, CIMB PH continued to acquire WKHIDUUHDFKLQJHHFWVRIWKH&29Ζ' volumes throughout 2020. We also recorded a VWURQJO\HQGLQJWKH\HDUZLWKPLOOLRQ pandemic on people, businesses and operating marked increase in PayDirect-linked TNG cards, customers. Our partnership with GCash and joint norms; and CDA’s stable of businesses were not signalling accelerated shifts towards the eWallet digital propositions remained attractive to the spared. Lockdowns restricted activities and thus platform. TNGD successfully answered the call market, and we have continued to be one of the dampened volumes. Planned initiatives were for increased cashless payments avenues during most accessible digital banks in the Philippines delayed or cancelled, requiring aggressive HDUO\ORFNGRZQVWDJHV:KLOVWRɞLQHYROXPHV during the crisis. It is estimated that a third of recalibrations to ensure continued business dipped, we maintained strong volumes for online our customers are new to banking. Throughout momentum. Regulatory measures and economic and essential services transactions from the 2020, we successfully shifted our focus towards slow-downs have heightened caution on onset, and continued to expand our merchant strengthening deposit and asset quality, and expansion initiatives as we continued building QHWZRUNHHFWLYHO\DVWKH71*H:DOOHWJDLQHG KDYHPDGHVLJQLȴFDQWOHDUQLQJVLQSLORWLQJGLJLWDO our start-up franchises. ubiquity. The vast acceptance of the TNG eWallet lending as we continued to ride out the allowed us dominate the government’s eTunai pandemic. In Vietnam, we maintained focus on Despite the challenges, we have emerged and ePenjana initiatives and grow our base our transformative agenda for CIMB VN, stronger than before through a combination of exponentially to 15.2 million registered users, of completing several key digital initiatives including aggressive pivots and strategic decisions in view which 11.5 million have been electronically EHLQJWKHȴUVWEDQNWRODXQFKH.<&FDSDELOLWLHV of market movements and the new norm. TNG KYC-ed. and piloting use cases with platform partners in PDQDJHGWRJURZLWV5)Ζ'VDOHVWRUHDFK preparation for digital growth. FORWARD23+ FOCUS 2021 OUTLOOK & PROSPECTS AREAS As we go deeper into the “post-COVID” era in 2021, we expect digital adoption and digital plays to continue accelerating Selective Digital Investments DQGEHPRUHUHOHYDQWWKDQHYHUΖQDUHDVRISD\PHQWVDQGȴQDQFLDOVHUYLFHVZHH[SHFWDGMXVWPHQWVWRWKHQHZQRUPWR • Proliferate focused investments be positive for digital businesses if executed with the right strategies. CDA’s businesses have weathered 2020 on the in key digital businesses and right footing, and 2021 will see us shift towards monetisation and proliferating value in our franchises. grow these ventures as • On the TNG front, we have established a strategic blueprint and a recalibrated leadership team. Our focus in 2021 attacker franchises, leveraging ZLOOEHRQVWUHQJWKHQLQJUHYHQXHVWUHDPVDQGLPSURYLQJȴQDQFLDOUHWXUQVDVZHOODVEXLOGLQJFRVWGLVFLSOLQH:HZLOO on equity and non-equity be expanding product potential anchored on RFID use cases, and also injecting innovation in our product designs and partnerships. commercial models. Data and technology will be a vital area, and will undergo enhancements as we begin to look for longer-term alternative avenues in which TNG can evolve as a franchise, whilst continuing to operate its core mobility Technology, Analytics & and transportation businesses in a robust fashion. Digital Plays • Through our digital ventures, • TNGD KDVDFTXLUHGVLJQLȴFDQWVFDOHDQGLVQRZWKHPDUNHWOHDGHULQ0DOD\VLDȇVHZDOOHWVSDFHZLOOVHHXVIRFXV pursue new capabilities in tech, RQPRQHWLVDWLRQRIRXUXVHUEDVHDVZHZRUNWRZDUGVUROOLQJRXWȴQDQFLDOVHUYLFHVRQWKH71*H:DOOHW:HZLOO data and analytics to deliver sharpen our merchant strategy with new value-added services with the goal of becoming the largest merchant GLHUHQWLDWHGVHUYLFHVYDOXH acceptance platform by end-2021. In the medium to long term, we will also pursue potential corporate exercises for propositions and customer the JV to deliver accretive value to CIMB Group franchise. experience that are accretive to • CIMB PH has become the Group’s model digital bank and is expected to continue operating on an accelerated the Group. JURZWKWUDMHFWRU\$NH\REMHFWLYHLQLVWREHJLQVFDOLQJGLJLWDOOHQGLQJRHULQJVDQGGULYHUHYHQXHDVZHVWDUW FKDUWLQJDSDWKWRSURȴWDELOLW\LQWKHQH[WIHZ\HDUV7HFKQRORJ\DQGGDWDDQDO\WLFVZLOOFRQWLQXHWREHWXUQNH\VWRRXU Sustainable Returns, Value- business model, which will be enhanced as we launch credit products. Our partnerships strategy has been pivotal to driven RXUHDUO\VXFFHVVDQGZLOOVHHXVGHHSHQFROODERUDWLRQVDVZHFRQWLQXHWRSXWȴQDQFLDOVHUYLFHVRXWWRPDUNHW • Focused on long-term growth digitally via ecosystems. and creating strategic hedges • CIMB VN has laid the foundations required to operate and scale as a digital bank in Vietnam. 2021’s focus will involve for the future in terms of activating our capabilities by pursuing strategic partners and rolling out use cases as we begin to tackle the market on platform economics, new DGLHUHQWLDWHGEDVLV&XVWRPHUDFTXLVLWLRQLVH[SHFWHGWRUDPSXSDVZHFRQWLQXHQDYLJDWLQJWKHPDUNHWVHOHFWLYHO\ revenue streams, and valuation and strategically with the right partners. upside. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 89 LEADERSHIP Board of Directors BOARD COMPOSITION 1 6 2 Senior Independent Non- Independent Directors Independent Director Directors DATUK MOHD NASIR AHMAD Chairperson/Independent Director DATO’ ABDUL RAHMAN AHMAD TEOH SU YIN *URXS&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU Senior Independent Director (Appointed on 10 June 2020) ROBERT NEIL COOMBE DATO’ MOHAMED ROSS MOHD DIN Independent Director Independent Director 90 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Board of Directors GENDER NATIONALITY 7 Male 7 Malaysians 3 Female 3 Non-Malaysians AGE GROUP LENGTH OF TENURE 2 50% 3 40% 5 10% 50 years & below 5 years & above 51 years – 60 years 2 years – 5 years DATO’ LEE KOK KWAN 61 years – 70 years 0 year – 2 years Non-Independent Director AFZAL ABDUL RAHIM DIDI SYAFRUDDIN YAHYA Independent Director Independent Director SHULAMITE N K KHOO SERENA TAN MEI SHWEN Independent Director Non-Independent Director (Appointed on 15 May 2020) (Appointed on 30 September 2020) CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 91 LEADERSHIP Board of Directors’ Profile DATUK MOHD NASIR Nationality | Malaysian DATO’ ABDUL RAHMAN Nationality | Malaysian AHMAD Age | 66 AHMAD Age | 51 Chairperson/ Group Chief Executive Independent Director Gender | Male 2ɝFHU([HFXWLYH'LUHFWRU Gender | Male Date of Date of Appointment | 20 July 2015 Appointment |10 June 2020 Length of Tenure | 5 Years Length of Tenure | Less than BR GN 1 Year AC CC RC QUALIFICATION QUALIFICATION ȏ )HOORZ$VVRFLDWLRQRI&KDUWHUHG&HUWLȴHG$FFRXQWDQWV $&&$ • Chartered Accountant, Malaysian Institute of Accountants, United Kingdom Malaysia ȏ &KDUWHUHG$FFRXQWDQW0DOD\VLDQΖQVWLWXWHRI$FFRXQWDQWV 0Ζ$ • Chartered Accountant, Institute of Chartered Accountants England Malaysia ȏ 0DVWHUVLQ%XVLQHVV$GPLQLVWUDWLRQ )LQDQFH 8QLYHUVLWL DQG:DOHV Ζ&$(: (QJODQG Kebangsaan Malaysia, Malaysia ȏ 0DVWHURI$UWV (FRQRPLFV 8QLYHUVLW\RI&DPEULGJH(QJODQG AREAS OF EXPERTISE AREAS OF EXPERTISE • Accounting and Finance, Operations, Governance, Strategy • Corporate Leadership, Strategy Development and Execution, Asset Development and Implementation Management, Private Equity, Corporate Advisory, Accounting and DIRECTORSHIP/RELEVANT APPOINTMENTS Audit Listed Entities (Other than CIMBGH) • Nil DIRECTORSHIP/RELEVANT APPOINTMENTS Public Companies Listed Entities (Other than CIMBGH) • Chairperson/Independent Director of CIMB Bank Berhad • Commissioner of PT Bank CIMB Niaga TBK ȏ &KDLUSHUVRQΖQGHSHQGHQW'LUHFWRURI&Ζ0%%DQN3/& &DPERGLD • Non-Independent Director of CIMB Thai Bank PCL • Independent Director of SIRIM Berhad Public Companies RELEVANT EXPERIENCE ȏ &KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRURI&Ζ0%%DQN%HUKDG Datuk Mohd Nasir Ahmad was appointed as Chairperson/ Independent Director of CIMB Group Holdings Berhad on 20 October RELEVANT EXPERIENCE 2018. He was the President of Malaysian Institute of Accountants 'DWRȇ$EGXO5DKPDQ$KPDGZDVDSSRLQWHG([HFXWLYH'LUHFWRUDQG 0Ζ$ IURP$XJXVWWR-XO\ΖQ6HSWHPEHUKHZDV elected as a Council Member of the Association of Chartered *URXS&KLHI([HFXWLYH2ɝFHURI&Ζ0%*URXS+ROGLQJV%HUKDGDQG &HUWLȴHG$FFRXQWDQWV $&&$ 8.DQGUHHOHFWHGLQ6HSWHPEHU &KLHI([HFXWLYH2ɝFHURI&Ζ0%%DQN%HUKDGRQ-XQH and November 2019. He has more than 20 years of leadership experience across multiple He brings with him vast experience in the areas of leadership, LQGXVWULHVZKHUHKHKHOG&KLHI([HFXWLYH2ɝFHUSRVLWLRQVLQ PDQDJHPHQWȴQDQFHDQGDFFRXQWLQJZKLFKVSDQVRYHU\HDUV well-established organisations such as Malaysian Resources having started his career as a Trainee Accountant with Tenaga 1DVLRQDO%HUKDG 71% LQ DQGPRYLQJRQWRKROGYDULRXV Corporation Berhad, Media Prima Berhad, Ekuiti Nasional Berhad positions in the Finance Division. and Permodalan Nasional Berhad. Prior to joining CIMB, Dato' Abdul Rahman was with Sime Darby Berhad and Velesto Energy Berhad as ΖQ-DQXDU\ 'DWXN0RKG1DVLUZDVVHFRQGHGWR71%ȇVVXEVLGLDU\ Non-Executive Non-Independent Chairman. company, Malaysia Transformer Manufacturing Sdn Bhd as the )LQDQFLDO&RQWUROOHUEHIRUHEHLQJDSSRLQWHGDV&KLHI([HFXWLYH2ɝFHU Dato' Abdul Rahman is currently a panel member of Kumpulan Wang &(2 LQ-XQH $PDQDK1HJDUD0DOD\VLDȇVQDWXUDOUHVRXUFHIXQGPDQDJHGE\%DQN In January 2000, he joined Sharikat Permodalan Kebangsaan Berhad Negara Malaysia. Besides being a member of Association of Banks in as its CEO. On 1 June 2001, he was appointed CEO of Perbadanan 0DOD\VLD $%0 KHDOVRVLWVRQWKH%RDUGRI)LQDQFHΖQGXVWU\ Usahawan Nasional Berhad, a position he held until his retirement on &ROOHFWLYH2XWUHDFK )Ζ1&2 DQGLVDFRPPLWWHHPHPEHURIWKH-RLQW 1 June 2011. &RPPLWWHHRQ&OLPDWH&KDQJH -& Datuk Mohd Nasir also holds directorships in private companies namely Prokhas Sdn Bhd and CIMB EOP Management Sdn Bhd and is a Trustee of Yayasan Canselor UNITEN. BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE BOD AC BRCC GNRC BOD AC BRCC GNRC Chairperson Member Member Member Member 18/18 15/15 5/5 18/18 10/10––– Declaration Declaration ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies in 2020 relevant regulatory bodies in 2020 92 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Board of Directors’ Profile TEOH SU YIN Nationality | Malaysian ROBERT NEIL COOMBE Nationality | Australian Senior Independent Director Age _ Independent Director Age | 57 Gender | Female Gender | Male Date of Date of Appointment _2FWREHU Appointment _$SULO Length of Tenure | 6 Years Length of Tenure | 6 Years GN BR BR GN RC AC CC CC RC Sustainability Sponsor QUALIFICATION QUALIFICATION ȏ %DFKHORURI$UWV +RQV %XVLQHVV6WXGLHV6KHɝHOG+DOODP ȏ %DFKHORURI/DZV +RQV 8QLYHUVLW\RI7HFKQRORJ\6\GQH\ University, United Kingdom Australia ȏ %XVLQHVVDQG7HFKQRORJ\(GXFDWLRQ %7(& +LJKHU1DWLRQDO 'LSORPD +1' %XVLQHVV6WXGLHV6KHɝHOG+DOODP8QLYHUVLW\ AREAS OF EXPERTISE United Kingdom • Accounting and Audit, Banking and Finance, Operations, Consumer • Diploma, Chartered Institute of Marketing, United Kingdom Marketing, Human Resource and Sustainability • Licensed Investment Adviser by Securities Commission of Malaysia DIRECTORSHIP/RELEVANT APPOINTMENTS AREAS OF EXPERTISE Listed Entities (Other than CIMBGH) • Banking, Finance and Sustainability • Non-Executive Chairperson of Generation Development Group, Australia DIRECTORSHIP/RELEVANT APPOINTMENTS Public Companies Listed Entities (Other than CIMBGH) • Nil • Nil Public Companies RELEVANT EXPERIENCE • Nil Mr. Robert Neil Coombe is currently the Non-Executive Chairperson RIWKH*HQHUDWLRQ'HYHORSPHQW*URXSDȴQDQFLDOVHUYLFHVEXVLQHVV RELEVANT EXPERIENCE IRFXVHGRQJHQHUDWLRQDOȴQDQFLDOVROXWLRQV Ms. Teoh Su Yin is a Senior Independent Director of CIMB Group He was previously a Chairperson of Craveable Brands, the largest +ROGLQJV%HUKDGVLQFH2FWREHU6KHKDVDOPRVW\HDUVȇ Australian owned Quick Service Restaurant business and was the experience in equity research and investments. &(2RI&UDYHDEOH%UDQGVEHWZHHQDQG$SULO%HIRUHMRLQLQJ Ms. Teoh began her career with JP Morgan Malaysia as a Junior &UDYHDEOH%UDQGV0U&RRPEHZDVUHVSRQVLEOHIRUDOORI:HVWSDFȇV $QDO\VWLQ ΖQVKHEHFDPH+HDGRI5HVHDUFKZLWKVHFWRU Retail, Business and Agri banking operations throughout Australia. coverage experience in infrastructure, plantations, power, gaming, Prior to this role, Mr. Coombe spent six years as the CEO of BT real estate and conglomerates. )LQDQFLDO*URXSUHVSRQVLEOHIRUDOORI:HVWSDFȇVIXQGVPDQDJHPHQW ȴQDQFLDOSODQQLQJLQVXUDQFHSULYDWHEDQNLQJEURNLQJSODWIRUPDQG In 2002, she left JP Morgan to join Deutsche Bank Malaysia Berhad, VXSHUDQQXDWLRQEXVLQHVVHVLQ$XVWUDOLDΖQWRWDOKHKDVRYHU initially as a Senior Analyst and later as Managing Director, Head of \HDUVȇFRUSRUDWHH[SHULHQFHLQERWK$XVWUDOLDDQG$VLD Malaysia and ASEAN Equity Research. As individual analyst, Ms. Teoh ZDVUDQNHG7RSE\$VLDPRQH\LQDQG In addition to the above, Mr. Coombe is a Director of Tibra Capital, 6XUȴQJ$XVWUDOLDDQGWKH$XVWUDOLDQΖQGLJHQRXV(GXFDWLRQ She currently serves on the Board of Albizia ASEAN Opportunities Foundation. Fund in Singapore, the Board of World Wildlife Fund-Malaysia and holds directorships in various other private companies. BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE BOD AC BRCC GNRC BOD AC BRCC GNRC Member Member Member Chairperson Member Chairperson Member 18/18 18/18 18/18 – 5/5 17/18 Declaration Declaration ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies in 2020 relevant regulatory bodies in 2020 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 93 LEADERSHIP Board of Directors’ Profile DATO’ MOHAMED ROSS Nationality | Malaysian DATO’ LEE KOK KWAN Nationality | Malaysian MOHD DIN Age | 68 Non-Independent Director Age | 55 Independent Director Gender | Male Gender | Male Date of Date of Appointment | 19 April 2016 Appointment | 20 July 2015 Length of Tenure _ BR GN BR AC CC RC CC QUALIFICATION QUALIFICATION ȏ %DQNLQJ'LSORPD 3DUW ΖQVWLWXWHRI%DQNHUV8QLWHG.LQJGRP • Masters in Business Administration, Simon Fraser University, Canada AREAS OF EXPERTISE ȏ %DFKHORURI%XVLQHVV$GPLQLVWUDWLRQ )LUVW&ODVV 6LPRQ)UDVHU University, Canada • Banking and Finance, Operations and International Experience AREAS OF EXPERTISE DIRECTORSHIP/RELEVANT APPOINTMENTS • Banking and Finance Listed Entities (Other than CIMBGH) • Capital Market • Nil DIRECTORSHIP/RELEVANT APPOINTMENTS Public Companies Listed Entities (Other than CIMBGH) • Chairperson/Independent Director of CIMB Islamic Bank Berhad • Nil RELEVANT EXPERIENCE Public Companies • Non-Independent Director of CIMB Bank Berhad 'DWRȇ0RKDPHG5RVVMRLQHG+6%&%DQN0DOD\VLD%HUKDG +6%& LQ • Non-Executive Director of Cagamas Holdings Berhad early 1972 and served in various capacities ranging from Corporate and Retail Banking and Branch Management. He also served as Head RELEVANT EXPERIENCE of Treasury Malaysia and Head of Group Audit Malaysia between 'DWRȇ/HH.RN.ZDQZDVWKH'HSXW\&KLHI([HFXWLYH2ɝFHU &(2 RI 1987 and 1996. During this period he also worked for a year in Hong CIMB Group prior to his Board appointments. His areas of Kong, London and New York in areas of Foreign Exchange and responsibilities included Corporate Banking, Transaction Banking and 7UHDVXU\$VWKH0DQDJLQJ'LUHFWRU KHZDVUHVSRQVLEOHIRU Sales and Trading businesses in interest rates, credit, foreign +6%&ȇVΖVODPLFRQVKRUHEXVLQHVVIUDQFKLVHLQ0DOD\VLDXQWLOKHUHWLUHG exchange, bonds, equity, commodities and their derivatives, treasury RQ'HFHPEHU DQGIXQGLQJIRUWKH*URXSȴ[HGLQFRPHLQYHVWPHQWVDQGGHEW capital markets which he developed since joining CIMB in 1996, and 8SRQUHWLUHPHQW'DWRȇ0RKDPHG5RVVZDVDSSRLQWHGDVDQ has since grown the businesses to be one of the largest global Executive Director and Senior Advisor of HSBC Amanah Takaful markets operations in ASEAN. Malaysia Sdn Bhd until December 2008. At the same time and until 3ULRUWRMRLQLQJ&Ζ0%LQ 'DWRȇ/HHKDGPRUHWKDQVHYHQ\HDUVRI April 2016, he was also an Independent Director of HSBC Amanah markets and treasury experience in the Canadian banking industry. Malaysia Berhad, where he sat as Chairman of the Risk Committee He was the Treasury Portfolio Manager responsible for interest rates and was a member of the Audit Committee and Nomination and optionality risk and return for a leading Canadian bank and a Committee. member of its Senior Asset-Liability Management Committee. 'DWRȇ0RKDPHG5RVVFXUUHQWO\VLWVRQWZR$GYLVRU\%RDUGV 'DWRȇ/HHLVDOVRDPHPEHURIWKH%RDUGRI7UXVWHHVRIWKH&DSLWDO RYHUVHHLQJD3ULYDWH(TXLW\)XQG (NXLQDV2)03URJUDPPH DVDQ 0DUNHWV'HYHORSPHQW)XQG &0') DQG$GYLVHUWRWKH6HFXULWLHV Independent Member. Additionally he also sits as a Trustee on the Commission Malaysia. He was appointed as First Director and Board of Lembaga Zakat Selangor and also serves as an Independent Chairman of the Bond and Sukuk Information Platform Sdn Bhd with Director on the Board of an Asset Management company. HHFWIURP1RYHPEHUDQG1RYHPEHUUHVSHFWLYHO\ He also holds directorships in various other private companies. BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE BOD AC BRCC GNRC BOD AC BRCC GNRC Member Chairperson Member Member Member Member 18/18 15/15 5/5 18/18 18/18 – 5/5 – Declaration Declaration ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies in 2020 relevant regulatory bodies in 2020 94 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Board of Directors’ Profile AFZAL ABDUL RAHIM Nationality | Malaysian DIDI SYAFRUDDIN YAHYA Nationality | Indonesian Independent Director Age _ Independent Director Age _ Gender | Male Gender | Male Date of Date of Appointment _-DQXDU\ Appointment | 7 May 2019 Length of Tenure | 2 Years Length of Tenure | 1 Year GN BR RC CC QUALIFICATION QUALIFICATION • Bachelor in Mechanical Engineering with Electronics, University of • Fellow Chartered Accountant, Institute of Chartered Accountants Sussex at Brighton, United Kingdom in England and Wales, United Kingdom • Master of Arts, University of Cambridge, United Kingdom AREAS OF EXPERTISE • Legal, Operations, Information Technology, Human Resource, AREAS OF EXPERTISE Strategy Development and Implementation, Innovation and • Capital Market, Banking & Finance, Accounting & Audit and Transformation International Experience DIRECTORSHIP/RELEVANT APPOINTMENTS DIRECTORSHIP/RELEVANT APPOINTMENTS Listed Entities (Other than CIMBGH) Listed Entities (Other than CIMBGH) ȏ &KLHI([HFXWLYH2ɝFHURI7LPHGRW&RP%HUKDG • President Commissioner of PT Bank CIMB Niaga Tbk • Non-Independent Director of Symphony Communication Public Public Companies Company Limited • Independent Director of CIMB Investment Bank Berhad Public Companies • Nil RELEVANT EXPERIENCE Encik Didi Syafruddin previously worked for J.P. Morgan for more than RELEVANT EXPERIENCE 20 years based in Indonesia and subsequently Malaysia where he Encik Afzal Abdul Rahim is a technology entrepreneur who currently was the Managing Director and Head of Investment Banking. At J.P. serves as Commander-In-Chief of TIME dotCom Berhad, an ASEAN Morgan, Encik Didi Syafruddin was responsible for client coverage based telecomunications operator encompassing Fixed Line, Data and providing advice on mergers and acquisitions, equity and debt Centres and Global Submarine Cable Systems. He joined TIME in capital markets transactions. He started his banking career with 2008 after establishing The AIMS Asia Group and Global Transit Morgan Grenfell & Co. in London after qualifying as a Chartered International in 2006. Accountant. He is currently a Member of Investment Panel of Urusharta Jamaah Sdn Bhd. (QFLN$I]DOIRXQGHGWKHQRQSURȴW0DOD\VLDQΖQWHUQHW([FKDQJH 0\Ζ; LQDQGDOVRVHUYHVDVD%RDUG0HPEHURI(QGHDYRU Malaysia, an organisation that is devoted to nurturing high-impact entrepreneurs. He began his career in the automotive sector, initially as a Chassis Development Engineer and thereafter managing clients on the engineering consultancy side of the business at Group Lotus PLC. He is also a Licensed Commercial Pilot. BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE BOD AC BRCC GNRC BOD AC BRCC GNRC Member Member Member Member 17/18––– 18/18 – 2/2 18/18 Declaration Declaration ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies in 2020 relevant regulatory bodies in 2020 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 95 LEADERSHIP Board of Directors’ Profile SHULAMITE N K KHOO Nationality | Singaporean SERENA TAN MEI SHWEN Nationality | Malaysian Independent Director Age | 59 Non-Independent Director Age _ Gender | Female Gender | Female Date of Date of Appointment | 15 May 2020 Appointment _6HSWHPEHU Length of Tenure | Less than Length of Tenure | Less than 1 Year 1 Year GN BR GN RC CC RC QUALIFICATION QUALIFICATION • Chartered Fellow, Chartered Institute of Personnel & Development, • Master of Business Administration, MIT Sloan School of United Kingdom Management, USA ȏ %DFKHORURI6FLHQFH 6WDWLVWLFV $FWXDULDO6FLHQFH 8QLYHUVLW\RI • Bachelor of Commerce, Accounting & Finance, Macquarie Toronto, Canada University, Australia AREAS OF EXPERTISE AREAS OF EXPERTISE • Human Resource and International Experience • Banking and Finance and International Experience DIRECTORSHIP/RELEVANT APPOINTMENTS DIRECTORSHIP/RELEVANT APPOINTMENTS Listed Entities (Other than CIMBGH) Listed Entities (Other than CIMBGH) • Independent Director of Kerry Logistics Network Limited, Hong • Nil Kong Public Companies • Independent Director of Shangri-La Asia Limited • Non-Independent Director of CIMB Bank Berhad Public Companies • Independent Director of Aviva Ltd • Nil RELEVANT EXPERIENCE RELEVANT EXPERIENCE Ms. Serena Tan joined Khazanah Nasional Berhad in 2005 and is Ms. Khoo was the Group Human Resources Director and Executive currently an Executive Director of Investments where she heads Vice President of AIA Group, the largest public listed pan-Asian life Private Markets and Financial Services. She has over 20 years of insurance group based in Hong Kong. This was a position she held H[SHULHQFHFRYHULQJWKHȴQDQFLDOVHFWRULQFOXGLQJVHFRQGPHQWVWR from 2011. .KD]DQDKLQYHVWHHFRPSDQLHVVXFKDV%DQN/LSSR QRZ37%DQN &Ζ0%1LDJD7EN LQΖQGRQHVLD6KHFXUUHQWO\VLWVRQWKH%RDUGRI&Ζ0% 3ULRUWRWKLVVKHKHOGVHYHUDOVHQLRUH[HFXWLYHSRVLWLRQVRQ$;$D Bank Berhad and a Director of various other private companies. )UHQFKPXOWLQDWLRQDOLQVXUDQFHȴUPWKDWHQJDJHVLQJOREDO LQVXUDQFHLQYHVWPHQWPDQDJHPHQWDQGRWKHUȴQDQFLDOVHUYLFHV Prior to Khazanah, Ms. Serena Tan was with Boston Consulting Group and McKinsey & Company. She was previously an International Advisory Panel Member of the Singapore Civil Service. She also served on the Board of AIA Malaysia from 2018 up until her resignation in February 2020. BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE BOD AC BRCC GNRC BOD AC BRCC GNRC Member Member Member Member Member 9/10 – – 6/6 7/7 – 1/1 Declaration Declaration ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUV nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any relevant regulatory bodies in 2020 relevant regulatory bodies in 2020 96 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Company Secretary’s Profile DATIN ROSSAYA MOHD Nationality | Malaysian NASHIR Age | 52 Group Company Secretary Gender | Female Date of Appointment | 2002 Length of Tenure | 19 Years QUALIFICATION RELEVANT EXPERIENCE ȏ %DFKHORURI/DZV PDMRULQJLQ%XVLQHVV/DZ &RYHQWU\8QLYHUVLW\ Datin Rossaya Mohd Nashir has worked at the bank since joining the United Kingdom Corporate Legal Services Unit in 2002. She was instrumental in • Licensed Secretary, Companies Commission of Malaysia VHWWLQJXSWKH&RPSDQ\6HFUHWDULDO'HSDUWPHQWLQDQGZDV ȏ $ɝOLDWH0DOD\VLDQΖQVWLWXWHRI&KDUWHUHG6HFUHWDULHVDQG appointed as Group Company Secretary in 2006. Administrators In her role, she is responsible for providing counsel and advice on Board duties and responsibilities, to ensure that CIMB complies with AREAS OF EXPERTISE relevant laws and regulatory requirements. She also plays a liaison • Company Law, Corporate Secretarial Practice, Corporate role between the Board and its key stakeholders both in Malaysia *RYHUQDQFHDQG&RQȵLFWV0DQDJHPHQW DQGLQWKH*URXSȇVUHJLRQDORSHUDWLRQVHQVXULQJWKDWDFRUSRUDWH governance framework is deployed in a manner that supports the DIRECTORSHIP/RELEVANT APPOINTMENTS *URXSȇVYLVLRQDQGDVSLUDWLRQV Listed Entities She has extensive industry knowledge, with over 25 years of • Nil experience in corporate secretarial practice. Previously, she was with Public Companies Permodalan Nasional Berhad where she assumed the position of • Nil Joint Company Secretary for several of its subsidiaries. She began her career with the Time Engineering Group. Datin Rossaya serves as a member of the Companies Commission of 0DOD\VLDȇV&RUSRUDWH3UDFWLFH&RQVXOWDWLYH)RUXPDQGLVD'LUHFWRURI several subsidiaries in the CIMB Group. She is a CIMB Sustainability Champion and has initiated several projects to encourage sustainability in the workplace for #teamcimb. She actively advocates greater participation of women in the boardroom and has been involved in various networking initiatives to promote this agenda. Declaration ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWKDQ\RWKHU'LUHFWRUDQGRUPDMRUVKDUHKROGHUVRIWKH&RPSDQ\ ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\RHQFHVZLWKLQWKHSDVWȴYH \HDUVQRUKDVVKHEHHQLPSRVHGRIDQ\SXEOLFVDQFWLRQRUSHQDOW\E\DQ\UHOHYDQW regulatory bodies in 2020 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 97 LEADERSHIP Board of Major Subsidiaries as at 1 March 2021 CIMB BANK BERHAD CIMB INVESTMENT BANK BERHAD PT BANK CIMB NIAGA TBK CHAIRPERSON CHAIRPERSON PRESIDENT COMMISSIONER Datuk Mohd Nasir Ahmad Dato’ Robert Cheim Dau Meng Didi Syafruddin Yahya Independent Director Non-Independent Director President Commissioner (Redesignated as Chairperson on 29 June (Appointed as President Commissioner on 2020) 9 April 2020) MEMBERS Jefferi Mahmud Hashim MEMBERS Chief Executive Officer/Executive Director MEMBERS Dato’ Abdul Rahman Ahmad Nadzirah Abd Rashid Glenn Muhammad Surya Yusuf Chief Executive Officer/Executive Director Independent Director Vice President Commissioner (Appointed on 10 June 2020) (Appointed on 9 April 2020) Manu Bhaskaran Independent Director Datin Grace Yeoh Cheng Geok Jeffrey Kairupan Independent Director Didi Syafruddin Yahya Senior Independent Commissioner Independent Director Dato’ Lee Kok Kwan David Richard Thomas Non-Independent Director Non-Independent Commissioner SECRETARY Serena Tan Mei Shwen Datin Rossaya Mohd Nashir Sri Widowati Non-Independent Director Independent Commissioner Chu Hong Keong Dato’ Abdul Rahman Ahmad Independent Director Non-Independent Commissioner (Appointed on 25 September 2020) Sukanta Kumar Dutt Independent Director CIMB ISLAMIC BANK BERHAD YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz Nadzirah Abd Rashid CHAIRPERSON President Commissioner Independent Director Dato’ Mohamed Ross Mohd Din (Resigned on 9 March 2020) Independent Director Venkatachalam Krishnakumar Zulkifli M. Ali Independent Director Independent Commissioner (Retired on 6 May 2020) MEMBERS (Retired on 9 April 2020) Ahmad Shahriman Mohd Shariff Dato’ Zainal Abidin Putih Chief Executive Officer/Executive Director Pri Notowidigdo Independent Director Independent Commissioner (Retired on 28 June 2020) Ahmed Baqar Rehman (Retired on 9 April 2020) Independent Director Rosnah Dato’ Kamarul Zaman Ho Yuet Mee Independent Director Independent Director CORPORATE SECRETARY (Retired on 18 January 2021) Jalalullail Othman Fransiska Oei Independent Director SECRETARY Rosnah Dato’ Kamarul Zaman Datin Rossaya Mohd Nashir Independent Director (Retired on 18 January 2021) SECRETARY Datin Rossaya Mohd Nashir 98 CIMB Group Holdings Berhad Annual Report 2020 Board of Major Subsidiaries CIMB THAI BANK PUBLIC COMPANY CIMB BANK PLC (CAMBODIA) CIMB BANK (VIETNAM) LIMITED LIMITED CHAIRPERSON CHAIRPERSON CHAIRPERSON Dato’ Robert Cheim Dau Meng Datuk Mohd Nasir Ahmad Effendy Shahul Hamid Non-Independent Director Independent Director Non-Independent Director (Redesignated as Chairman on 19 March MEMBERS 2020) Paul Wong Chee Kin MEMBERS President and Chief Executive Officer/ Bun Yin Executive Director MEMBERS (Appointed on 1 February 2021) Chief Executive Officer/Executive Director Thomson Fam Siew Kat Chanmanu Sumawong Dr. Mey Kalyan Chief Executive Officer/Executive Director Independent Director Independent Director Dr. Rom Hiranpruk Le Le Thuy Independent Director Aisyah Lam Abdullah Independent Director Omar Siddiq Independent Director Non-Independent Director Aisyah Lam Abdullah Omar Siddiq Independent Director Niti Jungnitnirundr Independent Director Non-Independent Director Gurdip Singh Sidhu Natasak Rodjanapiches Ahmad Shazli Kamarulzaman Non-Independent Director Independent Director Non-Independent Director (Appointed on 19 March 2020) Oranuch Apisaksirikul Independent Director Dato’ Wira Zainal Abidin Anon Sirisaengtaksin JOINT SECRETARIES Mahamad Zain Independent Director Non-Independent Director Ly Sophea (Appointed on 26 June 2020) (Retired on 19 March 2020) Hafriz Abdul Rahman Datin Rossaya Mohd Nashir Independent Director (Appointed on 24 September 2020) JOINT SECRETARIES Dato’ Abdul Rahman Ahmad Tran Hai Long Non-Independent Director (Appointed on 6 October 2020) Datin Rossaya Mohd Nashir Watanan Petersik Independent Director (Resigned on 26 June 2020) Serena Tan Mei Shwen Non-Independent Director (Resigned on 30 July 2020) Adisorn Sermchaiwong Non-Independent Director (Resigned on 1 September 2020) Shahnaz Farouque Jammal Ahmad Non-Independent Director (Resigned on 30 September 2020) Sutee Losoponkul Acting President and Chief Executive Officer/Executive Director (Appointed on 16 September 2020 and Retired on 1 February 2021) SECRETARY Patima Jumpasut CIMB Group Holdings Berhad Annual Report 2020 99 LEADERSHIP Group Shariah Committee '56+$)$$Ζ086$ 6+(Ζ.+352)(6625'5<286()$%'8//$+$/6+8%$Ζ/< $662&Ζ$7(352)(6625'5$Ζ6+$7+081((=$ AHMED BAQAR REHMAN DR AHMAD SUFIAN CHE ABDULLAH $662&Ζ$7(352)(6625'508+$0(')$Ζ522= ABDUL KHIR 100 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Shariah Committee Profile '56+$)$$Ζ086$ Nationality | Malaysian Nationality | Saudi Arabian SHEIKH PROFESSOR '5<286() Age _ Age | 50 ABDULLAH AL Gender | Male Gender | Male SHUBAILY Date of Date of Appointment | 9 January 2006 Appointment | 28 October 2008 Length of Tenure _ QUALIFICATION QUALIFICATION • PhD, Glasgow Caledonian University, UK • PhD in Islamic Jurisprudence from Imam Muhammad ibn Saud ȏ 0DVWHUȇVGHJUHHLQ&RPSDUDWLYH/DZVΖΖ80 Islamic University • Degree in Shariah, Al-Azhar University, Egypt ȏ 0DVWHUȇVGHJUHHIURPWKH'HSDUWPHQWRI&RPSDUDWLYH Jurisprudence at Imam Muhammad ibn Saud Islamic University DIRECTORSHIP/RELEVANT APPOINTMENTS ȏ %DFKHORUȇVGHJUHHIURP)DFXOW\RI6KDULDKDQG)XQGDPHQWDOVRI • Chairman of the Shariah Committee at Sun Life Malaysia Islam, Department of Comparative Jurisprudence at Imam Takaful Berhad Muhammad ibn Saud Islamic University • Chairman of Shariah Advisory Council of RGA Retakaful • Former member of Shariah Expert Panel of Department of DIRECTORSHIP/RELEVANT APPOINTMENTS ΖVODPLF'HYHORSPHQW0DOD\VLD -$.Ζ0 • Member of Shariah Board of AAOIFI ȏ 0HPEHURI6KDULDK%RDUGRIΖΖ)0 ΖVODPLFΖQWHUQDWLRQDO)LQDQFH RELEVANT EXPERIENCE 0DUNHW • Former Associate Professor at the Ahmad Ibrahim Kulliyyah of • Member of Shariah Board of Albilad Bank in Saudi Arabia /DZVDWWKHΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\0DOD\VLD ΖΖ80 ȏ )RUPHU&KLHI([HFXWLYH2ɝFHURIWKH-RKRUΖQVWLWXWHRI RELEVANT EXPERIENCE Integrity, Leadership and Training • Currently lectures in the Department of Comparative ȏ )RUPHU([HFXWLYH'LUHFWRURIΖΖ80ȇV&HQWUHIRU&RQWLQXLQJ -XULVSUXGHQFH+LJKΖQVWLWXWHRI-XGLFLDU\DW6DXGL$UDELDȇVΖPDP Education Muhammad ibn Saud Islamic University in Riyadh ȏ )RUPHU&KLHI([HFXWLYH2ɝFHURIWKHΖQWHUQDWLRQDOΖVODPLF • Serves as a Cooperating Professor for the American Open &ROOHJHFXP&KLHI([HFXWLYH2ɝFHUΖQWHUQDWLRQDOΖVODPLF University University Malaysia Higher Education Sdn Bhd • Performs advisory functions within numerous religious and charitable organisations both within and outside Saudi Arabia • Written many books, academic papers and articles on Islamic jurisprudence and commercial law • Participated in numerous seminars and conventions in related areas • Expert of Islamic Fiqh Academy CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 101 LEADERSHIP Group Shariah Committee Profile ASSOCIATE PROFESSOR Nationality | Maldivian Nationality | Pakistan AHMED BAQAR DR AISHATH MUNEEZA REHMAN Age _ Age | 62 Gender | Female Gender | Male Date of Date of Appointment _$SULO Appointment | 1 June 2019 Length of Tenure | 2 Years Length of Tenure | 2 Years QUALIFICATION QUALIFICATION • PhD in Law – International Islamic University Malaysia • Bachelor of Arts-Economics – University of Michigan, USA ȏ //0 %DQNLQJ ȂΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\0DOD\VLD ȏ %DFKHORURI/DZV +RQV ȂΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\ DIRECTORSHIP/RELEVANT APPOINTMENTS Malaysia Independent Board Director – CIMB Islamic Bank Berhad – Malaysia DIRECTORSHIP/RELEVANT APPOINTMENTS • Chairman Board Risk Committee • Chairman, Shariah Advisory Council of Capital Market • Member Board Shariah Committee Development Authority, Maldives • Chairman of Shariah Board at Ayady Takaful-Allied Insurance Independent Board Director – Al Baraka Bank (Pakistan) Company, Maldives Limited – Pakistan • Chairman of Shariah Board at Alia Investment Pvt Ltd, Maldives • Chairman Board Human Resource and Remuneration • Deputy Head of World Zakat Forum Research and Committee Development • Member Board Risk Committee RELEVANT EXPERIENCE IFC/World Bank Nominee Director – Asean Financial • Former Deputy Minister – Ministry of Finance and Treasury, Innovation Network – Singapore Republic of Maldives ȏ )RUPHU'HSXW\0LQLVWHUȂ0LQLVWU\RIΖVODPLF$DLUV5HSXEOLFRI RELEVANT EXPERIENCE Maldives ȏ 0U$KPHG5HKPDQKDVRYHU\HDUVRIH[SHULHQFHZLWK • Former Chairman, Board of Directors, Maldives Center for multinational banks in senior management roles, such as Chief Islamic Finance Ltd Executive as well as direct responsibility for wholesale bank • Former Chairman, Board of Directors, Maldives Hajj and risk. He was also involved in the Corporate Banking &RUSRUDWLRQ/WG 7DEXQJ+DMLRI0DOGLYHV integration of Standard Chartered Bank Pakistan with Grindlays Bank Pakistan ȏ +LVH[SHULHQFHFRYHUVGLHUHQWJHRJUDSKLHVLQ$VLD0LGGOH East and Africa, with American Express Bank, Standard Chartered Bank and Al Rajhi Bank • Former CEO of Al Rajhi Bank Malaysia 102 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Shariah Committee Profile '5$+0$'68)Ζ$1 Nationality | Malaysian Nationality | Malaysian ASSOCIATE PROFESSOR CHE ABDULLAH '508+$0(' Age _ Age _ FAIROOZ ABDUL KHIR Gender | Male Gender | Male Date of Date of Appointment | 1 November 2019 Appointment | 16 August 2020 Length of Tenure | 1 Year Length of Tenure | 1 Year QUALIFICATION QUALIFICATION • PhD in Islamic Economy and Banking – University of Yarmouk, • PhD in Shariah - University of Malaya Jordan • Masters of Shariah - University of Malaya ȏ 0DVWHUȇV'HJUHHLQ6KDULDK ΖVODPLF)LQDQFH Ȃ8QLYHUVLW\RI • Degree in Islamic Revealed Knowledge and Human Sciences Malaya, Malaysia ΖVODPLF-XULVSUXGHQFH ΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\ • Bachelor Degree in Shariah and Management – University of Malaysia Malaya, Malaysia DIRECTORSHIP/RELEVANT APPOINTMENTS DIRECTORSHIP/RELEVANT APPOINTMENTS ȏ 0HPEHU6KDULDK$GYLVRU\&RXQFLO 6$& RI6HFXULWLHV • Member, Shariah Committee, Small Medium Enterprise Commission Malaysia Development Bank Malaysia Berhad • Chairman of Shariah Committee, Agrobank • Member, Shariah Advisory Board, Syarikat Takaful Malaysia • Member, Shariah Committee, Zurich Takaful Malaysia Berhad Keluarga Berhad • Member, Perak Islamic Religious Council & Malay Customs • Member, Fatwa Committee, Jabatan Mufti Negeri Perlis 0$Ζ3N • Member, Islamic Legal Consultative Committee, Federal • Member, Fatwa Committee of Perak, Jabatan Mufti Negeri Territories Perak • Member, Waqaf Committee, Majlis Agama Islam dan Adat ΖVWLDGDW1HJHUL.HODQWDQ 0$Ζ. RELEVANT EXPERIENCE • Member, Shariah Advisor Committee, Sabnuha Jewellery PLT • Associate Professor, International Centre for Education in • Shariah Adviser, KAB Goldynamics Sdn Bhd ΖVODPLF)LQDQFH Ζ1&(Ζ) • Former Shariah Committee, Maybank Islamic Berhad RELEVANT EXPERIENCE • Former Shariah Committee, Group Shariah Committee, MNRB • Currently a Senior Lecturer at the Department of Shariah and Holdings Berhad Management, Academy of Islamic Studies of University Malaya • Former Shariah Committee, Malaysian Industrial Development • Previously Shariah Committee, Kenanga Investment Bank )LQDQFH%HUKDG 0Ζ') Berhad • Former Researcher and Head of Islamic Banking Unit, • Previously Muamalat Expert Panel of Jabatan Kemajuan Islam International Shari`ah Research Academy for Islamic Finance 0DOD\VLD -$.Ζ0 Ζ65$ • He has produced numerous publications such as book and UHVHDUFKSDSHUVLQΖVODPLFOHJDOWKHRULHV XVXOȴTK ΖVODPLF FRPPHUFLDOODZVΖVODPLFEDQNLQJDQGȴQDQFH7DNDIXODQG Shariah Fintech • He is the founder and administrator of “muamalat.my”, a social media platform that strives to become a medium of education in enhancing public awareness with regards to Islamic Finance DQG7DNDIXOVLQFH CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 103 LEADERSHIP Group Management DATO’ ABDUL AHMAD SHAHRIMAN RAHMAN MOHD SHARIFF BIN AHMAD &KLHI([HFXWLYH2ɝFHU Country Head, Malaysia Group Islamic Banking Group Chief Executive &KLHI([HFXWLYH2ɝFHU 2ɝFHU Executive Director, Executive Director, CIMB CIMB Islamic Bank Berhad &KLHI([HFXWLYH2ɝFHU Executive Director, CIMB Bank Berhad GURDIP SINGH SIDHU KHAIRUL RIFAIE KWAN KEEN YEW Group Chief Legal & *URXS&KLHI3HRSOH2ɝFHU *URXS&KLHI)LQDQFLDO2ɝFHU &RPSOLDQFH2ɝFHU RAFE HANEEF &KLHI([HFXWLYH2ɝFHU DATIN ROSSAYA Group Transaction Banking MOHD NASHIR &KLHI([HFXWLYH2ɝFHU Group Company CIMB Foundation Secretary Group Chief Sustainability 2ɝFHU 104 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Management AMRAN EFFENDY SHAHUL MOHAMAD DAVID RICHARD HAMID Group Chief THOMAS &KLHI([HFXWLYH2ɝFHU Internal Auditor Group Chief Risk CIMB Digital Assets 2ɝFHU Group Chief Executive 2ɝFHU Touch ’n Go Group OMAR SIDDIQ PAUL WONG CHEE Deputy Chief Executive KIN 2ɝFHU&Ζ0%%DQN Country Head, Berhad Thailand &KLHI([HFXWLYH2ɝFHU President & Group Wholesale &KLHI([HFXWLYH2ɝFHU Banking CIMB Thai Bank PCL SAMIR GUPTA TIGOR M. SIAHAAN VICTOR LEE MENG Chief Executive Country Head, TECK 2ɝFHU Indonesia Country Head, Group Consumer President Director & Singapore Banking &KLHI([HFXWLYH2ɝFHU &KLHI([HFXWLYH2ɝFHU PT Bank CIMB Niaga Tbk CIMB Bank, Singapore &KLHI([HFXWLYH2ɝFHU Group Commercial Banking CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 105 LEADERSHIP Group Management Profile OMAR SIDDIQ QUALIFICATION • Previously was Group Chief Operating 'HSXW\&KLHI([HFXWLYH2ɝFHU • BSc (Hons) Economics, London School of 2ɝFHU&Ζ0%*URXS CIMB Bank Berhad Economics and Political Science, UK • Former Head of Group Wholesale Banking &KLHI([HFXWLYH2ɝFHU • Fellow member of the Institute of at RHB Group • Former Executive Director and Group Group Wholesale Banking Chartered Accountants in England and Wales &KLHI)LQDQFLDO2ɝFHUDW0DOD\VLD$LUOLQHV • CFA Charterholder, CFA Institute Berhad Nationality Malaysian • Former Executive Director in the Age 47 DIRECTORSHIP/RELEVANT APPOINTMENTS Investments Division at Khazanah Nasional Berhad • Director, CIMB Thai Bank Public Company Gender Male • Former Managing Director in the Limited (Thailand) Investment Banking Division at CIMB • Director, CIMB Cambodia PLC (Cambodia) Investment Bank Berhad • Director, CIMB Group Sdn Bhd • Former Executive Director in the • Director, CGS-CIMB Sdn Bhd Corporate Finance Practice of PricewaterhouseCoopers (PwC) RELEVANT EXPERIENCE TIGOR M. SIAHAAN QUALIFICATION • Vice Chairman of Indonesia Banker Country Head, Indonesia • Double major in Finance and Accounting, Institute President Director & University of Virginia, Charlottesville, USA &KLHI([HFXWLYH2ɝFHU RELEVANT EXPERIENCE PT Bank CIMB Niaga Tbk DIRECTORSHIP/RELEVANT APPOINTMENTS • President Director and Chief Executive • Chairman of Indonesia Malaysia Bilateral 2ɝFHURI37%DQN&Ζ0%1LDJD7EN ȏ &KLHI&RXQWU\2ɝFHURI&LWLΖQGRQHVLDIURP Nationality Indonesian Committee of Indonesian Chamber of Commerce and Industry (KADIN) 2011 to 2015. First Indonesian to be Age 49 • Vice Chairman of Perbanas (Indonesian appointed to the post Gender Male Banks Association) • Held several key positions in Citi Indonesia • Member of the Board of Trustees of Jakarta including Country Head for Institutional International School (JIS) Clients Group, Head of Corporate & • Mentor in Endeavor Indonesia Investment Banking and Country Risk • Executive Committee of Young Presidents Manager Organization (YPO) Indonesia • Served as Vice President in Institutional • The Employers’ Association of Indonesia Remedial Management Group in Citi Head (APINDO), Chairperson of Banking, 2ɝFHLQ1HZ PAUL WONG CHEE KIN QUALIFICATION the Group, including stints in Philippines Country Head, Thailand • Bachelor of Business (Major in Banking & and was subsequently appointed President 3UHVLGHQW &KLHI([HFXWLYH2ɝFHU Finance), Monash University, Melbourne, and CEO of CIMB Thai Bank PCL in CIMB Thai Bank PCL Australia February 2021 • He has a strong track record in strategic DIRECTORSHIP/RELEVANT APPOINTMENTS projects regionally, in digitalisation and Nationality Malaysian transformation, and brings in depth • Director, CIMB Thai Bank Public Company functional experience in operations, having Age 51 Limited successfully led and transformed Group Gender Male Operations RELEVANT EXPERIENCE • He also served as the Board of Directors • Over 25 years of experience in banking for Principal Asset Management Berhad DQGȴQDQFHLQ$6($1 from September 2016 to January 2021 • He joined CIMB Group in 2007 as Senior • Prior to CIMB, he served in various Vice President, Head of Sales Management FDSDFLWLHVLQVHYHUDOȴQDQFLDOLQVWLWXWLRQVLQ – Consumer Sales & Distribution of CIMB Malaysia and Singapore Bank Berhad. Held various positions within 106 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Management Profile VICTOR LEE MENG TECK QUALIFICATION operational risk governance and Country Head, Singapore • Bachelor of Applied Science (Materials performance excellence. He also held &KLHI([HFXWLYH2ɝFHU Engineering), Nanyang Technological various board directorships within the CIMB Bank, Singapore University, Singapore Fullerton Group • Was Managing Director at United Overseas &KLHI([HFXWLYH2ɝFHU • Alumni of ASIAN Financial Leaders Bank (UOB) and led the Small Business Group Commercial Banking Programme (AFLP), mandated by Monetary Authority of Singapore banking segment at United Overseas Bank (UOB) and delivered the fastest CAGR Nationality Singaporean DIRECTORSHIP/RELEVANT APPOINTMENTS growth • A member of the SME Banking Age 50 • Nil management committee in Standard Gender Male Chartered where he was responsible for its RELEVANT EXPERIENCE global liability, treasury business and • Responsible to grow and drive innovation lending businesses in Singapore, Taiwan for the SME and Mid-Corporate segments and China. He also led several mergers and in the region. Champions customer rationalisations for the bank centricity, digital enablement, as well as • At SME Banking Singapore, he worked with CIMB's sustainability agenda for the entire the local SME GMs to develop the value Commercial Banking business propositions of the SME Liabilities and • Responsible for Singapore's banking Treasury Business in the key countries in business and strategic positioning, and to the SME Banking network. He then moved deepen its foothold in ASEAN region to Taiwan where he led the integration of • Over 20 years of experience in Retail the Hsinchi International Bank with the EDQNLQJ&KDQQHOV'LVWULEXWLRQ SME banking business 0DQDJHPHQW0LFURȴQDQFHDQG%XVLQHVV • At Citibank, he was responsible for the Banking with markets coverage in ASEAN, strategic positioning of business banking North Asia, Africa and Middle East within the Global Consumer Group in • At Fullerton Financial Holdings, he was Singapore and for driving key initiatives for responsible for managing its investments CitiGold and CitiBanking LQEDQNVDQGȴQDQFLDOVHUYLFHVȴUPV7KLV • Awarded “Top 50 Most Promising Young includes driving its strategy and Leaders’’ award in 2008 by The Asian implementations, leading several digital Banker for bankers aged below 40 in Asia initiatives across Asia and delivering strong 3DFLȴFDQG0LGGOH(DVWUHJLRQ SAMIR GUPTA QUALIFICATION RELEVANT EXPERIENCE &KLHI([HFXWLYH2ɝFHU • Bachelor of Technology in Mechanical ȏ 2YHU\HDUVȇH[SHULHQFHLQWKHEDQNLQJ Group Consumer Banking Engineering, Indian Institute of Technology, industry including digital, retail, wealth India PDQDJHPHQWFRQVXPHUȴQDQFHFDUGV • Master of Management Studies, University risk, operations and audit Nationality Singaporean of Bombay, India • Senior Manager with track record of Age 58 building consumer banking franchises in Gender Male DIRECTORSHIP/RELEVANT APPOINTMENTS Asia, Africa and Middle East • Nil • Started his working career with Citibank, India and moved to Singapore in 1990 • Managed various roles in Citibank and Barclays and PT Bank CIMB Niaga Tbk based out of Singapore, Thailand, Dubai, Turkey and Indonesia • Joined CIMB Group as Consumer Banking Director of PT Bank CIMB Niaga Tbk in 2010 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 107 LEADERSHIP Group Management Profile RAFE HANEEF QUALIFICATION Islamic operates as a parallel franchise to &KLHI([HFXWLYH2ɝFHU • Master of Laws (LL.M), Harvard Law School the Group’s conventional operations and Group Transaction Banking • Bachelor of Laws (LL.B), International covers Islamic wholesale banking, Islamic &KLHI([HFXWLYH2ɝFHU&Ζ0%)RXQGDWLRQ Islamic University Malaysia consumer banking, Islamic commercial banking and Islamic asset management *URXS&KLHI6XVWDLQDELOLW\2ɝFHU ȏ 4XDOLȴHGIRUWKH1HZ 108 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Management Profile EFFENDY SHAHUL HAMID QUALIFICATION investments in platform-based businesses, &KLHI([HFXWLYH2ɝFHU&Ζ0%'LJLWDO$VVHWV • Honours in Electronic Engineering with and steering CIMB’s approach and *URXS&KLHI([HFXWLYH2ɝFHU Optoelectronics, University College SUDFWLFHVLQWHUPVRIȴQDQFLDOWHFKQRORJ\ Touch ’n Go Group London, UK trends. Began management oversight of • CIMB INSEAD Leadership Programme, the Group’s digital bank operations in INSEAD Vietnam and the Philippines, in addition to Nationality Malaysian • Digital Business Leadership Programme, OHDGLQJHRUWVDQGVWUDWHJLHVLQWKHGLJLWDO Age 47 Columbia Business School, Columbia banking space for the overall Group University • Prior to that, was CEO of Group Asset Gender Male Management & Investments, responsible DIRECTORSHIP/RELEVANT APPOINTMENTS for the Group’s asset management and investments businesses across both public • Chairman, TNG Digital Sdn Bhd and private markets, including the regional • Chairman, CIMB Bank (Vietnam) Ltd asset management business, its private • Director, Touch ’n Go Sdn Bhd equity fund management business and the • Director, Financial Park (Labuan) Sdn Bhd equity investments portfolio in companies • Director, Principal Asset Management such as Principal Asset Management and Berhad, PT Principal Asset Management, Touch ’n Go Principal Asset Management Co Limited • Previously also the CEO of Group and Principal Islamic Asset Management Commercial Banking, managing the Sdn Bhd Group’s regional banking businesses for • Member of the Board of Directors, The the small and medium enterprise and International School of Kuala Lumpur mid-sized corporate segment, with a key IRFXVRQFUHDWLQJGLHUHQWLDWHG RELEVANT EXPERIENCE propositions and executing long term • Responsible for CIMB’s portfolio of digital growth strategies businesses and ventures, which today • Preceding that, was Group Chief Marketing includes Touch ‘n Go and TNG Digital DQG&RPPXQLFDWLRQV2ɝFHUPDQDJLQJWKH (collectively Touch ‘n Go Group), as well as Group’s entire marketing and CIMB’s digital bank franchises in Vietnam communications initiatives and lead and the Philippines. In addition to driving IUDQFKLVHZLGHHRUWVWRHQVXUHD strategy, growth and overseeing the FRQVLVWHQWDQGGLHUHQWLDWHG&Ζ0%EUDQG execution of these businesses, his focus for all of the Group’s Businesses across the also extends towards spearheading value region creation of CIMB's investments in these • Before that, served as a Director in the franchises through equity and non-equity Group’s Investment Banking Division, partnerships. Also continues to maintain primarily focusing on corporate advisory oversight in the digital banking space for and origination the Group, as well as platform and • Prior to joining the Group, had career ecosystem-based developments and stints in several international companies in trends a corporate development capacity, mostly • Most recently, was CEO of Group Ventures involved in private equity, merger and and Partnerships, responsible for the DFTXLVLWLRQDFWLYLWLHVDFURVV$VLD3DFLȴF development of the Group’s new and and general business expansion initiatives disruptive revenue and value creation • Regional business experience having streams, with a focus on cultivating worked and lived in Malaysia, Hong Kong platform partnerships, strategic and Singapore CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 109 LEADERSHIP Group Management Profile AHMAD SHAHRIMAN MOHD SHARIFF QUALIFICATION experience in the corporate sector, of &KLHI([HFXWLYH2ɝFHU • Bachelor of Arts in Accounting and which 16 years were in Islamic Banking and Group Islamic Banking Finance, Lancaster University, UK Finance-related leadership roles. He played an active role in the development of &KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU ȏ 0DOD\VLDQ)LQDQFLDO0DUNHWV&HUWLȴFDWH Malaysia’s Islamic banking industry, with a CIMB Islamic Bank Berhad Persatuan Pasaran Kewangan Malaysia dan Institut Bank-Bank Malaysia, Malaysia longstanding role in the Treasury • Chartered Professional in Islamic Finance, committee of the Association of Islamic Nationality Malaysian Chartered Institute of Islamic Finance Banks in Malaysia (AIBIM). In this capacity, Professionals, Malaysia he was involved in instrumental industry Age initiatives such as developing, amongst Gender Male DIRECTORSHIP/RELEVANT APPOINTMENTS others, a commodity exchange for Islamic ȴQDQFHSXUSRVHVΖVODPLFVWUXFWXUHG • Board Member, CIMB Islamic Bank Berhad products, documentation standards for • Vice President and Council Member, Islamic derivatives as well as an Islamic Association of Islamic Banking and credit support mechanism Financial Institutions Malaysia (AIBIM) • He previously headed the Wholesale • Member, Standing Committee on Islamic Banking at HSBC Amanah Malaysia Berhad Financial Reporting, Malaysian Accounting as Director, and served as the Head of Standards Board (MASB) Islamic Banking at Citibank Berhad prior to • Honorary Senior Fellow, Centre for Islamic that. Under these leadership roles, he has (FRQRPLFVΖΖ80 HHFWLYH-DQXDU\ been an instrumental contributor towards the growth of the Islamic banking and RELEVANT EXPERIENCE ȴQDQFHLQGXVWU\ZLWKWKHLQWURGXFWLRQRI ȏ $KPDG6KDKULPDQ0RKG6KDULZDV global award-winning capital markets and DSSRLQWHG&KLHI([HFXWLYH2ɝFHURI&Ζ0% treasury solutions. Shahriman has strong Islamic Bank on 1 October 2019 and heads leadership, technical, legal and risk the Group Islamic Banking business of management expertise gained from his CIMB Group that includes Islamic stint in these cross-border institutions wholesale banking, Islamic consumer • He started his career as a management banking, Islamic commercial banking and associate with Citibank before being Islamic asset management and investment selected to undertake the leadership across the key markets of Malaysia, development programmes both regionally Singapore and Indonesia and globally in his time with Citigroup. • Shahriman has over two decades of KHAIRUL RIFAIE QUALIFICATION • Director of Southeast Asia Special Asset *URXS&KLHI)LQDQFLDO2ɝFHU • First Class Honours degree in Accounting Vehice Ltd (SEASAV) and Finance, University of Warwick, UK • Director of CIMB Holidngs Sdn Bhd • MSc in Finance from Imperial College, • Commerce MGI Sdn Bhd Nationality Malaysian London • CSI Investments Limited Age 40 • Member of the Institute of Chartered RELEVANT EXPERIENCE Gender Male Accountants in England and Wales (ICAEW) • Member of the Chartered Banker Institute ȏ $SSRLQWHGDV*URXS&KLHI)LQDQFLDO2ɝFHU (MCBI) in January 2019 and prior to his current • Member of Malaysian Institute of role, he held the position of CFO, Malaysia Accountants (MIA) and Regional Head, Financial Control with responsibility for tax, regulatory reporting, DIRECTORSHIP/RELEVANT APPOINTMENTS ȴQDQFLDODFFRXQWLQJPDQDJHPHQW • Director of SIBB Berhad UHSRUWLQJEXVLQHVVȴQDQFHDGYLVRU\ • Director of Perdana Nominees Sdn Bhd SURGXFWFRQWURODQGȴQDQFLDOSODQQLQJ • Director of S.B Properties Sdn Bhd ȏ 6WDUWHGKLVFDUHHULQZLWK.30* • Director of S.B. Venture Capital London focusing on servicing Investment Corporation Sdn Bhd Banking clients • Director of Premier Fidelity Sdn Bhd • In 2006, he joined Goldman Sachs, London • Director of SBB Berhad as an equity analyst covering the European • Director of Commerce Returns Berhad Insurance Sector. He then joined UBS, • Director of CIMB Berhad Malaysia in 2009 to cover the Malaysian • Director of CIMB Southeast Asia Research Banking Sector and later on also covered Sdn Bhd (CARI) the Singapore Banking sector • Director of CIMB Real Estate Sdn Bhd • Prior to joining CIMB Group, Khairul was • Director of CIMB Group Sdn Bhd working at RHB Group, Malaysia as the • Director of CIMB Bank (L) Limited Head of Finance of RHB Islamic and Head of Investor Relations 110 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Management Profile GURDIP SINGH SIDHU QUALIFICATION and priorities. He oversees organisation *URXS&KLHI3HRSOH2ɝFHU • Honours in Accounting and Finance, design, performance management, talent London School of Economics and Political acquisition and management, employee experience and learning Nationality Malaysian Science, UK • Chartered Financial Analyst (CFA) • Prior to his appointment as Group Chief Age 47 • Alumni of the CIMB-INSEAD Leadership 3HRSOH2ɝFHU*XUGLSKHOGWKHSRVLWLRQRI Gender Male Programme *URXS&KLHI6WUDWHJ\DQG'HVLJQ2ɝFHURI CIMB Group, overseeing and supporting DIRECTORSHIP/RELEVANT APPOINTMENTS the execution of transformation and growth initiatives under T18 and • Director, Proton Commerce Sdn Bhd )RUZDUG • Director, CIMB Bancom Capital • Before joining CIMB Group, Gurdip spent a Corporation decade in an international management • Director, CIMB Bank (Vietnam) Limited FRQVXOWLQJȴUPDGYLVLQJEDQNV telecommunications companies and RELEVANT EXPERIENCE Governments across ASEAN, India, South ȏ $V*URXS&KLHI3HRSOH2ɝFHU*XUGLSLV Korea and Spain responsible for setting the human capital direction and strategy of the Group, in alignment with the Group’s overall strategy DAVID RICHARD THOMAS QUALIFICATION management policies and frameworks, *URXS&KLHI5LVN2ɝFHU • Bachelor’s Degree, Whitman College, including operationalising the Risk Appetite Washington USA Statement. The Risk Division of CIMB *URXSLGHQWLȴHVDVVHVVHVPHDVXUHV Nationality American DIRECTORSHIP/RELEVANT APPOINTMENTS controls and reports the material risks that Age 61 may impact the Group’s business • Commissioner, PT Bank CIMB Niaga Tbk Gender Male RSHUDWLRQVSURȴWDELOLW\FDSLWDODQGRU reputation RELEVANT EXPERIENCE ȏ 6HUYHGDVWKH&KLHI5LVN2ɝFHUIRU$VLD • Oversees the risk management function of 3DFLȴFIRUWKH5R\DO%DQNRI6FRWODQG 5%6 CIMB Group, including Credit, Market, Prior to RBS, he served as the Chief Credit Non-Financial Risk, Shariah, Asset Liability 2ɝFHUIRU$VLD3DFLȴFIRU%DQNRI$PHULFD Management and Credit Risk Infrastructure • Held various senior level positions based & Risk Analytics in Singapore, Hong Kong, Thailand and • Responsible for ensuring the consistent Taiwan throughout his 26-year tenure in implementation of the Group’s risk Asia KWAN KEEN YEW QUALIFICATION • Held various roles in a foreign bank which *URXS&KLHI/HJDO &RPSOLDQFH2ɝFHU • Bachelor of Laws (Hons), University of included Regional Head of Compliance for 6KHɝHOG8. Malaysia, Australia, Brunei, and Vietnam, Head of Wholesale Banking Compliance for Nationality Malaysian DIRECTORSHIP/RELEVANT APPOINTMENTS Hong Kong, and Head of Legal & Age 46 Compliance for Malaysia • Nil Gender Male • Prior to joining the banking industry, Keen Yew was in private practice at a regional RELEVANT EXPERIENCE ODZȴUPDQGZDVDGYLVLQJFOLHQWVRQ • Oversees the Group Legal and Compliance SURMHFWVDVZHOODVEDQNLQJDQGȴQDQFH function which is responsible for the management of regulatory, legal and compliance risks across CIMB Group CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 111 LEADERSHIP Group Management Profile AMRAN MOHAMAD QUALIFICATION Audit Committees of Group's subsidiaries Group Chief Internal Auditor • Bachelor of Science (Hons) in Accountancy, in discharging their responsibilities, as well University of East Anglia, Norwich, UK as managing their respective governance, risk and control functions. He oversees the Nationality Malaysian • Fellow member of the Association of &KDUWHUHG&HUWLȴHG$FFRXQWDQWV $&&$ Internal Audit functions across the entire Age 45 • Member of the Malaysian Institute of Group Gender Male Accountants (MIA) • Amran has over 20 years of audit • Member of Institute of Internal Auditors experience in the areas of capital market, Malaysia (IIA) corporate and retail banking gained working in Malaysia and the United DIRECTORSHIP/RELEVANT APPOINTMENTS Kingdom. Amran’s last held position before joining CIMB was Senior Vice President, • Nil Internal Audit with Royal Bank of Scotland in London. He had also previously worked RELEVANT EXPERIENCE with PwC, KPMG, UniCredit Bank and • Ensures that the Group Corporate Barclays Capital Assurance Division supports the CIMB Group Audit Committee, CIMB Banking Group Audit Committee and other relevant 112 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Human Capital Development We started the year 2020 with a focus on various programmes designed to build capability in the digital space, motivate performance and build A Better CIMB (ABC) FXOWXUH7RZDUGVWKHHQGRIWKHȴUVWTXDUWHUZHZHUHVZLIWLQUHVSRQGLQJWRRXU stakeholders, mainly helping them navigate through the impact of the novel Corona Virus or COVID-19. The health crisis and the resultant movement restrictions accelerated GLJLWDOLVDWLRQLQERWKWKHPDUNHWSODFHDQGWKHZRUNSODFH2XUHRUWVZHUHIRFXVHGRQ achieving a balance between safeguarding the health and the well-being of our employees, while helping them to remain productive even with the new normal of virtual and onsite working arrangements. Towards the latter part of the year, in line with a new leadership DQGDUHFDOLEUDWHG)RUZDUGVWUDWHJ\KXPDQFDSLWDOZDVUHDɝUPHGDVRQHRIWKHNH\ result areas. This resulted in a series of focused programmes and interventions. +XPDQ&DSLWDODQG+XPDQ&DSLWDO(ɝFLHQF\DUHFULWLFDOLQSXWVIRUGHOLYHULQJYDOXHWRRXUVWDNHKROGHUVLQWKHȴQDQFLDOVHUYLFHVVHFWRU From our skilled portfolio managers, to our responsive customer service personnel; from our dedicated relationship managers to our adept technology specialists; from experienced leaders to committed executives – every employee of CIMB contributes to our performance and growth, positioning CIMB as a focused ASEAN banking group. At CIMB, our human capital growth strategies are premised on three key fundamentals: Deploy a Robust People Strategy Create a Workplace Ecosystem Levarage on the Value of Data Driven at the top-most levels Aimed at attracting and Focused on understanding of the organisation, to nurturing talent, making the employees and shaping ensure human capital is most of their inherent programmes and policies to nurtured and optimised. strengths as well as develop improve their experience skills for the future. with CIMB. Strategic Themes Material Matters &DSLWDOV$HFWHG Purpose-driven Organisation CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 113 LEADERSHIP Human Capital Development FREE COVID-19 insurance ZERO HOW WE and screening for all (PSOR\HH/D\RV CREATED VALUE employees in or Pay-cuts IN 2020 Thailand and Malaysia respectively RM1.01 500% million increase in number on COVID-19 of training hours screening in delivered under Malaysia '$FDGHP\ According to MSCI, human capital has been amongst the top ESG trends in 2020, where businesses have had to deal with the XQSUHFHGHQWHGLPSDFWRI&29Ζ' RQSHRSOH%XVLQHVVHVKDYHKDGWRPDNHGLɝFXOWGHFLVLRQVDQGWUDGHRVLQWKHIDFHRIWKLVJOREDO health crisis, balancing internal human capital requirements to ensure business continuity and seamless delivery of services. The DGGHGFKDOOHQJHZDVWRUHWDLQWKHPXFKQHHGHGKXPDQFDSLWDODPLGVWSRRUPDUNHWDQGȴQDQFLDOSHUIRUPDQFH0RVWEXVLQHVVHV WDFNOHGWKHVLWXDWLRQE\WDNLQJFDOFXODWHGGHFLVLRQVEDODQFLQJEHWZHHQOD\LQJRHPSOR\HHVZKLOHDOVRUHFUXLWLQJQHZWDOHQWZKRFDQ assume critical roles in an operating environment where we have witnessed accelerated digital enablement due to the restrictions in movement and health scares. In short, the current crisis that erupted in early 2020 has reinforced how economies, business performance and human capital are interdependent for shaping an inclusive, progressive, and sustainable world. In 2020, at CIMB, our primary focus was on the following four areas, with an ultimate objective to drive a customer-centric, collaborative and positive work culture through A Better CIMB (ABC) and a refreshed set of values. Focus Areas in 2020 Key Initiatives Achievements Health & Safety of – Safe Workplace Measures • RM4.7 million invested as digital enablement our Workforce Ȃ :HOIDUHDQG:HOOEHLQJ%HQHȴWV EHQHȴWIRUQRQPDQDJHPHQWDQGMXQLRUVWDWR support access to digital platforms and technology Adapting to the – Viable Remote Working Infrastructure ȏ 6WDFRQWLQXHGWRZRUNIURPKRPHLQOLQHZLWK New Normal – Listening Posts and Pulse Surveys & Engagement the BCP activation plan in a pandemic scenario. – Employee Communications and Motivation 114 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Human Capital Development Focus Areas in 2020 Key Initiatives Achievements Upskilling and – Programmes to drive Digital Transformation ȏ ' 'LJLWDO'DWD 'HVLJQ PRELOHHQDEOHG Reskilling Initiatives Ȃ 7HFKQRORJ\ΖQIUDVWUXFWXUH'LJLWDO(QDEOHPHQWIRUD learning modules on Gametize made mandatory Digital Workforce (Knowledge Acquisition) for Malaysia and Indonesia • 2,297 employees from ASEAN region attended 'LQWHUPHGLDWHRUDGYDQFHGOHYHOSURJUDPPHV in AI, data science, design thinking • 50% of Associates under our graduate associate programme, The Complete Banker (TCB) and the CIMB ASEAN Scholarship Programme are from non-business disciplines such as engineering, mathematics, bio-medical sciences and psychology New ‘People – High-Performance & Purpose-driven Culture • CIMB Future of Work awarded TalentCorp’s 2019 Strategy’ to support – Digital and Tech Talent in addition to Talent from Life@Work Awards for “Outstanding Practice Forward23+ outside Financial Services or Non-Business – Talent Development Initiative” Disciplines ȏ RIQHZUHFUXLWVLQIURPQRQȴQDQFLDO – New Rewards and Recognition through ABC institutions mainly in digital and technology roles Culture-Building Initiatives ȏ $VVRFLDWHVRQERDUGHGDVWKHȴUVWFRKRUWRI TCB Digital, a graduate programme targeted at tech talent FEATURE: OUR COVID-19 EMPLOYEE RESPONSE By 2020Q1, we saw an increase in community-wide COVID-19 infections and movement control orders were implemented in all the core ASEAN markets where we operate. As a provider of essential services, our priority was to shift our focus on VXSSRUWLQJEXVLQHVVFRQWLQXLW\HRUWVZKLOHHQVXULQJWKHKHDOWKVDIHW\ZHOOEHLQJDQGPRUDOHRIRXUHPSOR\HHV CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 115 LEADERSHIP Human Capital Development PROTECTING OUR EMPLOYEES AND ENSURING THEIR WELL-BEING In early 2020, we deliberated and anticipated the potential impact of COVID-19 on our work life. In February, the Business Continuity Team had already initiated a phased transition to work-from-home arrangements. The deployment of digital platforms for communication and collaboration was accelerated to enable teams to continue working remotely. At the pandemic's peak in April, approximately 65% of employees across Malaysia, Indonesia, Singapore and Thailand opted for work-from-home arrangement. +RZHYHUWKHUHZHUHDOVRDSSUR[LPDWHO\RIRXUHPSOR\HHVZKRZHUHXQDEOHWRZRUNIURPKRPHGXHWRWKHQDWXUHRIWKHLUUROHV FRQWLQXHGWRZRUNRQVLWH7KH\ZHUHRXUIURQWOLQHUVDWRXUEUDQFKHVDQGRXUEDFNHQGΖ7RSHUDWLRQV:HSUDFWLFHGVSOLWRSHUDWLRQV VKLIWVDURVWHUZLWKWLJKWHU623VWRUHGXFHH[SRVXUHDQGHQKDQFHHPSOR\HHȇVDIHW\ • Supported employees with ȏ 'LVLQIHFWLRQRIKRPHVRIVWD personal protective with or who have been in At Work At Home equipment and sanitisers direct contact with COVID-19 • Adapted branches to reduce positive cases in-person contact • Testing for employees' • Limited the number of parents aged 60 and above customers allowed into branches at any one time • Mandated screening for employees who were in close contact with positive cases • Flight or accommodation compensation for travel cancelled during the movement control period ȏ 2HUHGPHDODOORZDQFHVZKLOH working during restricted movement ȏ 5HVWULFWHGLQWHUȵRRU movement or socialisation among split teams • Operationalised a call tree to keep employees informed and provide quick updates ȏ 2HUHGORDQPRUDWRULXPWR employees for 6 months and a VXEVHTXHQWPRQWK extension (for those who TXDOLȴHG While these measures did not entirely prevent our employees from being infected with COVID-19, through contact tracing and split operations, on-site infections were contained and we established that these infections were likely to have occurred outside of our work premises. )RUHPSOR\HHVLQIHFWHGLQ0DOD\VLDZHSURYLGHGIXUWKHUȴQDQFLDODVVLVWDQFHDPRXQWLQJWR50SHUHPSOR\HHDQGSURYLGHG disinfection services of their homes and branches where they worked. 116 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Human Capital Development EMPLOYEE ENGAGEMENT AND LISTENING ΖQD\HDUȴOOHGZLWKXQFHUWDLQWLHVLWZDVKLJKO\FULWLFDOWRHQJDJHHPSOR\HHVPDLQO\WRERRVWWKHLUPRUDOHDVZHOODVKHOSWKHPFRSHZLWK PHQWDOGLVWUHVVDVVRFLDWHGZLWKWKHKHDOWKVFDUHDQGSRWHQWLDOWKUHDWWRSURGXFWLYLW\DQGLQFRPHV(HFWLYHDQGHɝFLHQWLQWHUQDO communications proved extremely valuable in retaining talent and keeping them motivated as part of our productive workforce. Digital solutions especially the CIMB Intranet and virtual meeting platforms helped maintain a healthy channel for dialogue and exchange of mission-critical information between the teams and senior leadership. In May 2020, we conducted an independent third-party pulse survey to gauge employee engagement levels and understand the pandemic’s impact on well-being, stress and new ways of working virtually. The survey focused on four key areas: wellness and safety, FRQFHUQVDQGFRQQHFWLRQVHQLRUOHDGHUVKLSUHVSRQVHDQGFRPPXQLFDWLRQDVZHOODVYLUWXDOZRUNHHFWLYHQHVV Senior Leadership Frontline Managers (78%) (84%) Sharing concern and connection with co-employees in the spirit of #teamCIMB 7KHȴQGLQJVRIWKH Key Strengths Good peer support to deliver work Clarity in process and policies survey indicated that our employees’ experiences (84%) (79%) were consistent with those of over 158 companies that 0RUHHHFWLYH Better Review of certain participated in the virtual work communication on work processes to survey. technologies for remote working LPSURYHHɝFLHQFLHV collaboration and arrangements to and ensure seamless productivity help employees delivery. Employees manage boundaries Needed Support (65%) between work and personal life. CIMB GROUP’S RESPONSE TO EMPLOYEE EXPECTATIONS • Introduced fun and • Increased intensity of • Recognised front liners • Conducted virtual learning uplifting Group wide employee recognition with weekly messages VHVVLRQVWRWUDLQVWDWR activities on social media campaign taking from senior management support customers during platforms advantage of a new and disseminated these the pandemic endorsement module messages across multiple available on our HR digital platforms to ensure system, Y.O.D.A. (Your maximum outreach Own Digital Assistant) CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 117 LEADERSHIP Human Capital Development SUPPORTING AND INTENSIFYING DIGITAL UPSKILLING EFFORTS AND ACCESS TO DIGITAL We continued to focus on creating and strengthening the digital quotient of our workforce in line with the demands of accelerated digitalisation brought on by the pandemic. As such, improving digital skills and access to tools, remote work management and digital learning were prioritised to help employees upskill and acquire the skills needed to operate in the new normal. Going beyond training, we also looked into the material needs of employees who suddenly found themselves having to work from home and priority was given to those most in need of support in accessing technology and adapting to new modes of working. Our priority was to remain inclusive in our approach and leave no one behind when it comes to digital enablement. Digital Data Plan Allowance for Non-Management and Junior Grades Digital Training INCLUSIVE DIGITAL Subsidy for all ENABLEMENT Employees at all BENEFITS: Levels to support LEAVING NO Online Courses and ONE BEHIND Workshops Digital Enablement %HQHȴWIRU1RQ Management and Junior Grades SHIFTING OUR PEOPLE STRATEGY WITH FORWARD23+ ΖQWKHODVWTXDUWHURIZHHPEDUNHGRQDQHZRUJDQLVDWLRQZLGHH[HUFLVHWRUHFDOLEUDWHDQGODXQFK)RUZDUGVWUDWHJ\ Following this, we also revised and realigned our People policies and programmes to support the new strategy and our vision to be a leading focused ASEAN bank by 2024. Under the revised plan, Human Capital Growth as a function will continue to deliver value and support the business in achieving its REMHFWLYHVDFURVVIRXUNH\SURJUDPPHVZKLFKDUHSDUNHGXQGHUȴYHVWUDWHJLFWKHPHVRI)RUZDUG:KLOHWKHVHSURJUDPPHVZLOOEH RXUSULPDU\IRFXVRWKHULQLWLDWLYHVUROOHGRXWWRHQVXUHRXUSHRSOHUHPDLQFRQȴGHQWDQGFRPSHWHQWWRRSHUDWHLQDGLJLWDO environment will also continue. In this age of digital imperative, when designing various people-centric interventions, including crafting new policies and processes, we will look at opportunities for human capital growth that are also conducive to the growth of the organisation as well as our ecosystem. 118 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Human Capital Development Strategic theme Why An organisational design and size that UHȵHFWVEXVLQHVVQHHGVDQGVXSSRUWVWKH desired organisational culture. Delivering Sustainable 01 Financial Returns Organisation Design $ȴWIRUSXUSRVHSHUIRUPDQFH management framework and rewards strategy that drives the desired 02 behaviours, accountability as well as alignment with business goals. Revised Disciplined Execution Performance Framework and Rewards $FXOWXUHUHȵHFWLYHRIDSXUSRVHGULYHQ organisation and that seeks to drive accountability, collaboration and inspire customer trust. Purpose-driven Values and Organisation Culture Reviewing Group HR and re-examining policies, processes and practices to: • curate career paths for talent at various OHYHOVFDWHULQJWRGLHUHQWDVSLUDWLRQV • enhance delivery of the Employee 04 Experience (Ex); HR Blueprint • achieve Diversity and Inclusion targets Purpose-driven especially in narrowing the gender gap Organisation in remuneration and increasing female participation at the Board and C-level; • increase the use of data in decision making and programme and policy design; and • deliver organisational capability that creates value for stakeholders in a sustainable way. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 119 LEADERSHIP Corporate Structure 100% Other Subsidiaries iCIMB (MSC) SDN. BHD. 85.83% TOUCH ‘N GO SDN. BHD. 47.1% TNG DIGITAL SDN. BHD. 100% CIMB GROUP SDN. BHD. 99.99% 100% CIMB BANK BERHAD CIMB INVESTMENT BANK BERHAD 100% CIMB ISLAMIC BANK BERHAD OTHER SUBSIDIARIES 100% CIMB BANK (L) LTD. 100% 100% iCIMB (MALAYSIA) SDN. BHD. CIMB SI SDN. BHD. 94.83% CIMB THAI BANK PUBLIC 100% COMPANY LTD. CIMB SI 1 SDN. BHD. 100% CIMB BANK PLC (CAMBODIA) 14.17% 100% TOUCH ‘N GO SDN. BHD. CIMB BANK (VIETNAM) LIMITED OTHER SUBSIDIARIES 60% CIMB BANCOM CAPITAL CORPORATION 92.5% 50% PT BANK CIMB NIAGA TBK CGS-CIMB SECURITIES INTERNATIONAL PTE. LTD. OTHER SUBSIDIARIES OTHER SUBSIDIARIES 120 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Organisation Structure BOARD OF DIRECTORS BOARD COMMITTEES GROUP CORPORATE ASSURANCE GROUP RISK GROUP LEGAL & COMPLIANCE GROUP CHIEF EXECUTIVE OFFICER GROUP COMPANY SECRETARY COUNTRY HEADS GROUP STRATEGY AND GROUP CEO’S OFFICE GROUP SUSTAINABILITY GROUP WHOLESALE BANKING GROUP FINANCE GROUP CONSUMER BANKING GROUP HUMAN RESOURCE GROUP COMMERCIAL BANKING GROUP TECHNOLOGY AND DATA GROUP TRANSACTION BANKING GROUP BRANDING AND COMMUNICATION GROUP ISLAMIC BANKING CIMB DIGITAL ASSETS BUSINESS UNITS BUSINESS ENABLERS CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 121 GOVERNANCE Chairman’s Statement on Corporate Governance DEAR STAKEHOLDERS, At CIMB, the emphasis has been to understand the application of corporate governance principles for corporate sustainability – to bring about reforms, UHYLYDODQGUHVLOLHQFH WRWKLQNGLHUHQWO\DQGSURYLGH both immediate solutions and an impetus to recovery; and most importantly, to balance near-term priorities with long-term growth objectives. It is my privilege to present the CIMB 2020 Corporate Governance Overview Statement. The COVID-19 pandemic has posed extraordinary risks and many challenges for transparency, participation and accountability. It has been a real test of Corporate Governance in practice across organisations and governments around the world. A report by Euler Hermes states that %H\RQGWKHLPSDFWVRIWKHSDQGHPLFLQ At CIMB, we believe it is more than just a “COVID-19 is creating an insolvency time late 2020, we also witnessed the Local ȴGXFLDU\UHVSRQVLELOLW\RIWKH%RDUGWR bomb”, predicting a 35% hike in $XWKRULW\3HQVLRQ)XQG)RUXPRIWKH8. UHLQIRUFHWKHLQWHJUDWLRQRI(6* insolvencies between 2019 and 20211. put out a statement seeking mandatory considerations into the governance, :KLOHPRVWDHFWHGDUHVPDOOWRPHGLXP climate votes, giving investors an annual VWUDWHJ\DQGRSHUDWLRQVRIWKH*URXS$V sized enterprises (SMEs), large companies VD\RQ%RDUGȇVSODQVWRFXWFDUERQ we adapt to a new economic landscape are also at stake. Major players in various emissions. Earlier in the year, Barclays Plc and evolving expectations, we are aligning sectors, such as aviation, retail and oil and VKDUHKROGHUVYRWHGLQIDYRXURIDQHW]HUR our strategic priorities with intangible JDVKDYHVLPLODUO\VXHUHGIURP SURSRVDODWWKHEDQNȇV$QQXDO*HQHUDO GULYHUVIRUYDOXHFUHDWLRQ bankruptcies. Meeting. Similarly, the Investor Forum that UHSUHVHQWV8.ȇVLQVWLWXWLRQDOLQYHVWRUV 7RGD\ȇVXQLTXHFLUFXPVWDQFHV 7KHVLJQLȴFDQWHFRQRPLFFRQWUDFWLRQ FDPHIRUZDUGWRVWURQJO\VXSSRUWD demonstrate the need to continuously triggered by the virus is a strong example non-binding shareholder vote that would reassess policies and enhance business RIWKHPDWHULDOLPSRUWDQFHRI(6* VHQGDSRZHUIXOVLJQDORQWKHHHFWLYHQHVV FRQWLQXLW\DQGFULVLVSODQVIRUWKHLU (QYLURQPHQWDO6RFLDODQG*RYHUQDQFH RIDQ\PDQGDWHGFOLPDWHGLVFORVXUHV HHFWLYHQHVV'XULQJWKH\HDUWKH%RDUG risks. The crisis highlights our own position supported various management strategies as a stakeholder, in which we have intrinsic 7KLVJURZLQJWUHQGUHLQIRUFHVWKHUROHRI GHSOR\HGIRUSURWHFWLQJHPSOR\HHV LQWHUHVWVLQWKHUHVLOLHQF\RIUHJLRQDODQG WKH%RDUGRI'LUHFWRUVLQFOXGLQJWKH customers and other stakeholders i.e. with global economic, social and environmental independent non-executive directors DȆQHZQRUPDOȇRIUHPRWHZRUNLQJ systems. In Malaysia, we saw the Ζ1('V LQFKDPSLRQLQJ(6*JRYHUQDQFH arrangements and social-distancing while FRQVHTXHQFHVRIWKHLQFUHDVLQJSUHVVXUHV PDLQO\WRVWUHQJWKHQLQYHVWRUFRQȴGHQFH banking. The Board encouraged an open GXHWRLQYHVWRUDFWLYLVPRQ(6* LQ(6*PLWLJDWLRQDQGWUDQVLWLRQVWUDWHJLHV dialogue on the immediate workplace SHUIRUPDQFH2QHRIWKHZRUOGȇVELJJHVW RIDEXVLQHVVVDIHJXDUGLQJWKHLQWHUHVWVRI health and productivity issues as well as asset manager, BlackRock Inc had raised shareholders. the impending business challenges. The FRQFHUQVRQWKHPDQDJHPHQWRI&29Ζ' %RDUGDOVRSURYLGHGNH\RYHUVLJKWRI outbreak by a major local company, and ORQJWHUPȴQDQFLDOULVNVDQGUHVLOLHQF\ YRWHGDJDLQVWUHHOHFWLRQRIWKH measures, while management strategies LQGHSHQGHQWGLUHFWRUVDWLWVODVW$*0 IRFXVHGRQVXSSRUWLQJFULWLFDOIXQFWLRQV DQGRSHUDWLRQVIRUEXVLQHVVFRQWLQXLW\ KWWSV ZZZHXOHUKHUPHVFRPHQBJOREDO$3$&DSDFHFRQRPLFUHVHDUFK&DOPEHIRUHWKHVWRUP&RYLG DQGWKHEXVLQHVVLQVROYHQF\WLPHERPEKWPO 122 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Chairman’s Statement on Corporate Governance During the year under review, the Board ΖQ'HFHPEHU&Ζ0%EHFDPHWKHȴUVW SOD\HGDFULWLFDOUROHLQIXUWKHU bank in Malaysia to commit to distancing FKDPSLRQLQJHRUWVWRVWUHQJWKHQWKH IURPFRDOȴQDQFLQJZKHQZHDQQRXQFHG JRYHUQDQFHSUDFWLFHVRI&Ζ0%DQGLWV WKDWZHZLOOFHDVHWRIXQGQHZWKHUPDOFRDO Board. In February 2020, the Board projects as well as existing coal by 2040. In HVWDEOLVKHGD&RGHRI&RQGXFWIRU addition, recognising that SMEs are the Directors which provides a transparent HQJLQHRIHFRQRPLFJURZWK&Ζ0%KDV RYHUYLHZRIWKHKLJKHUH[SHFWDWLRQVDQG pioneered sustainability-linked loans in VWDQGDUGVVHWIRU'LUHFWRUVRI&Ζ0%:H Malaysia, where lower interest charges are also introduced the Board Diversity RHUHGWR60(VWKDWKDYHVXVWDLQDELOLW\ Framework to guide the Board in targets. GHWHUPLQLQJWKHRSWLPXPFRPSRVLWLRQRI WKH%RDUGWDNLQJLQWRFRQVLGHUDWLRQ(6* Post-pandemic, the Board will remain agile principles. DQGSURDFWLYHWRFXUUHQWDQGIXWXUHULVNV Where necessary, we will re-prioritise our In garnering the Senior Management IRFXVDUHDVEDVHGRQWKHHYROYLQJVLWXDWLRQ 7HDPȇVFRPPLWPHQWWRZDUGVSXUVXLQJ over the next 2 years. Most importantly, we better decision-making with clearer ZLOOQRWIDOWHUDVDSXUSRVHGULYHQ accountability and outcomes, we organisation, committed to advancing streamlined the Management Committees customers and society. We will adapt and WRVKLIWWKHIRFXVWRZDUGVSHUIRUPDQFH operate to the changing market, oversight and monitoring, introducing stakeholders, and business contexts, LQWHUQDOJXLGHOLQHVWRIXUWKHUVWUHQJWKHQ without compromising on value creation. ULVNDZDUHQHVV7RSXW0DQDJHPHQWȇV interest into greater alignment with sustainable practices, CIMB has, since OLQNHGWKHNH\SHUIRUPDQFH LQGLFDWRUVRIWKH6HQLRU0DQDJHPHQW 7HDPLQFOXGLQJWKH*URXS&KLHI([HFXWLYH 2ɝFHUZLWKVXVWDLQDELOLW\SHUIRUPDQFH Datuk Mohd Nasir Ahmad Chairman CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 123 GOVERNANCE Corporate Governance Overview Statement (Pursuant to Paragraph 15.25(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad) The Board is strongly During the year ended 31 December 2020, 5) Best Corporate & Investment Bank by &Ζ0%ȇVFRUSRUDWHJRYHUQDQFHSUDFWLFHV $VLDPRQH\%HVW%DQN$ZDUGVIRU committed to ensuring that were consistent and complied with the Malaysia 2020 CIMB’s systems, procedures IROORZLQJJXLGHOLQHVDQGEHVWSUDFWLFHV 0RVW2XWVWDQGLQJ0DOD\VLDQ%UDQG DQGSUDFWLFHVUHȵHFWDKLJK %DQN1HJDUD0DOD\VLD %10 ȇV 2019 – Banking by Branding standard of corporate &RUSRUDWH*RYHUQDQFH3ROLF\ $VVRFLDWLRQRI0DOD\VLD %10&*3ROLF\ governance. It has a well- 7) Best Private Bank in Malaysia by GHȴQHGDQGZHOOVWUXFWXUHG 2) Main Market Listing Requirements *OREDO)LQDQFH3ULYDWH%DQN$ZDUGV 00/5 RI%XUVD0DOD\VLD6HFXULWLHV 2020 corporate governance Berhad (Bursa Malaysia) 8) Best Bond House in Southeast Asia framework in place to 0DOD\VLDQ&RGHRI&RUSRUDWH by Alpha Southeast Asia 14th Deal support the Board’s aim of *RYHUQDQFH 0&&* SXEOLVKHGE\WKH and Solution Awards 2020 Securities Commission achieving long-term and %HVW5LQJJLW6XNXN+RXVHRIWKH 124 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Corporate Governance Overview Statement PRQLWRUVWKHEXVLQHVVDQGDDLUVRI&Ζ0%RQEHKDOIRIWKH6KDUHKROGHUV7KH%RDUGDOVRRYHUVHHVDQGDSSUDLVHV&Ζ0%ȇVRYHUDOOVWUDWHJLF REMHFWLYHVGLUHFWLRQDQGSHUIRUPDQFHZLWKVRPHRYHUVLJKWGHOHJDWHGWRWKH%RDUG&RPPLWWHHV 7KH*URXS&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU *URXS&(2 ZKRDOVRVLWVRQWKH%RDUGDVWKHVROH([HFXWLYH'LUHFWRULV UHVSRQVLEOHIRUWKHGHYHORSPHQWDQGLPSOHPHQWDWLRQRI&Ζ0%ȇVVWUDWHJ\DQGLWVRYHUDOOGD\WRGD\UXQQLQJ&RQVLVWHQWZLWK&Ζ0%ȇV SULPDU\REMHFWLYHWRHQKDQFHORQJWHUPVKDUHKROGHUYDOXHWKLVLQFOXGHVSURYLGLQJGLUHFWLRQRQDOODVSHFWVRIRSHUDWLRQDOPDWWHUVVXFKDV ȴQDQFLDOULVNPDQDJHPHQWDQGFRPSOLDQFH7KH%RDUGGHOHJDWHVWRWKH*URXS&(2WRJHWKHUZLWKWKH6HQLRU0DQDJHPHQWRI&Ζ0%WKH DXWKRULW\IRUPDQDJLQJ&Ζ0%ȇVEXVLQHVVWRDFKLHYHLWVFRUSRUDWHWDUJHWVDQGSODQV GOVERNANCE FRAMEWORK Shareholders Board of Directors Board Risk & Group Nomination Audit Group Shariah Compliance & Remuneration Committee Committee Committee Committee Group CEO Group EXCO Group-wide Committees Divisional Committees Country-level Committees ENTITY GOVERNANCE 7RHQVXUHWKDW&Ζ0%FRQWLQXHVWRKDYHHHFWLYHRYHUVLJKWRYHULWVHQWLWLHVWKH*URXS(QWLW\*RYHUQDQFH3ROLF\ 3ROLF\ ZDVUHYLHZHGDQG HQKDQFHGLQ7KHUHYLHZH[HUFLVHZDVFRQGXFWHGHDUOLHUWKDQSODQQHGWRHQVXUHWKDWWKH3ROLF\PHHWV&Ζ0%ȇVJRYHUQDQFH UHTXLUHPHQWVWRUHȵHFWWKHRUJDQLVDWLRQDOFKDQJHVWKDWZHUHHHFWHGLQHDUO\ DVZHOODVWRVLPSOLI\WKHDGPLQLVWUDWLYHSURFHVVHV LQYROYHGLQWKHDGRSWLRQRI*URXSZLGH3ROLFLHV 3URFHGXUHVE\WKH*URXSȇVHQWLWLHV CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 125 GOVERNANCE Corporate Governance Overview Statement PRINCIPLE A: BOARD LEADERSHIP AND EFFECTIVENESS BOARD RESPONSIBILITIES 7KH%RDUGȇVSULPDU\UROHLVWRGHWHUPLQH PRQLWRUWKHSHUIRUPDQFHDQGNH\VWUDWHJLF DQGDQDO\VHUHOHYDQWLQIRUPDWLRQ7KH &Ζ0%ȇVVWUDWHJLFREMHFWLYHVDQGSROLFLHVWR PDWWHUVRIWKHUHVSHFWLYHFRXQWULHVȇHQWLWLHV deliberations and decisions arrived at deliver sustainable value to its and business divisions. In addition, the during Board meetings are clearly minuted Shareholders. In ensuring the protection *URXS&(2ZLOODOVREHDEOHWRWUDFNDQG LQDWLPHO\PDQQHUDQGDFWLRQLWHPVIRU DQGHQKDQFHPHQWRIVKDUHKROGHUYDOXHLW PHDVXUHWKHSHUIRUPDQFHRIFRUH Management will be communicated to the WDNHVLQWRDFFRXQWWKHLQWHUHVWVRI programmes against the agreed strategies UHOHYDQWSDUWLHVZLWKLQKRXUVDIWHUWKH stakeholders including employees, and roadmap and provide regular %RDUGPHHWLQJV7KHGUDIWPLQXWHVDUH customers, suppliers, business partners, IHHGEDFNDQGHQVXUHWLPHO\FRXUVH WKHQWDEOHGDWWKHIROORZLQJPHHWLQJIRU regulators, local communities, non- FRUUHFWLRQV7RIXUWKHUSURPRWH&Ζ0%ȇV FRQȴUPDWLRQDQGWKHUHDIWHUVLJQHGE\WKH governmental organisations and the sustainability agenda, the Board has Chairperson. general public. The Board is ultimately GHVLJQDWHG5REHUW&RRPEHDV&Ζ0%ȇV DFFRXQWDEOHWR6KDUHKROGHUVIRUWKH Sustainability Sponsor. His role includes The Board meets on a regular basis, with a SHUIRUPDQFHRI&Ζ0%DQGLVUHVSRQVLEOH advising and recommending to the Board PLQLPXPRIVL[VFKHGXOHGPHHWLQJVLQD IRU&Ζ0%ȇVRYHUDOOJRYHUQDQFH RQEXVLQHVVVWUDWHJLHVIURPWKHDVSHFWRI ȴQDQFLDO\HDURUDWOHDVWRQFHHYHU\WZR sustainability and acts as an advocate PRQWKVRUPRUHIUHTXHQWO\DV The Board acknowledges the importance within the organisation and externally. FLUFXPVWDQFHVGLFWDWH7KHGDWHVRIWKHVH RIDFOHDUGLYLVLRQRIUHVSRQVLELOLW\EHWZHHQ scheduled meetings are determined well in WKH&KDLUSHUVRQDQGWKH*URXS&(27KH 7KH%RDUGKDVDSSRLQWHGWKH*URXS advance to enable the Directors to plan UROHVRI&KDLUSHUVRQDQG*URXS&(2DUH Company Secretary who, under the ahead. In addition to the scheduled WKHUHIRUHH[HUFLVHGE\VHSDUDWHLQGLYLGXDOV GLUHFWLRQRIWKH&KDLUSHUVRQLV meetings, Special Meetings may be to ensure optimal balance, resulting in DFFRXQWDEOHIRUDOOPDWWHUVZLWKUHJDUGWR convened as and when required. 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WKHȴQDQFLDO\HDUZDV50PLOOLRQ DQGFRPSOLDQFHȴQGLQJVDVZHOODVSHRSOH 138 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Corporate Governance Overview Statement 7$%/( *8$5$17(('%2186(66Ζ*121%2186(6$1'6(9(5$1&(3$<0(176 SOs MRTs Category (RM’000) (RM’000) 1XPEHURIJXDUDQWHHGERQXVHV –– 1XPEHURIVLJQRQERQXVHV 21 1XPEHURIVHYHUDQFHSD\PHQWV –– 7RWDODPRXQWRIDERYHSD\PHQWVPDGHGXULQJWKHȴQDQFLDO\HDU 281 96 TABLE 2: BREAKDOWN OF DEFERRED REMUNERATION SOs MRTs Category (RM’000) (RM’000) 7RWDODPRXQWRIRXWVWDQGLQJGHIHUUHGUHPXQHUDWLRQ • Cash 1,944 3,240 • Shares 34,378 40,229 7RWDODPRXQWRIGHIHUUHGUHPXQHUDWLRQSDLGRXWGXULQJWKHȴQDQFLDO\HDU • Cash • Shares 15,212 18,477 2XWVWDQGLQJGHIHUUHGUHPXQHUDWLRQ SHUIRUPDQFHDGMXVWPHQWV ȏ 2IZKLFKH[SRVHGWRH[SRVWDGMXVWPHQWV 100% 100% • Reductions in current year due to ex-post adjustments (explicit) – – • Reductions in current year due to ex-post adjustments (implicit) – – 2XWVWDQGLQJUHWDLQHGUHPXQHUDWLRQ SHUIRUPDQFHDGMXVWPHQWV ȏ 2IZKLFKH[SRVHGWRH[SRVWDGMXVWPHQWV – – • Reductions in current year due to ex-post adjustments (explicit) – – • Reductions in current year due to ex-post adjustments (implicit) – – ȏ ([DPSOHVRIH[SOLFLWH[SRVWDGMXVWPHQWVLQFOXGHPDOXVFODZEDFNVRUVLPLODUUHYHUVDOVRUGRZQZDUGUHYDOXDWLRQVRIDZDUGV ȏ ([DPSOHVRILPSOLFLWH[SRVWDGMXVWPHQWVLQFOXGHȵXFWXDWLRQVLQWKHYDOXHRIVKDUHVRUSHUIRUPDQFHXQLWV TABLE 3: BREAKDOWN OF GROUP CEO’S REMUNERATION Cash Shares Total Name Category (RM’000) (RM’000) (RM’000) 'DWRȇ$EGXO5DKPDQ$KPDG Fixed remuneration – (appointed on 10 June 2020) Variable remuneration ȏ 1RQGHIHUUHG 531 – 531 ȏ 'HIHUUHG – 203 203 Total remuneration award for ȴQDQFLDO\HDU 2,202 203 2,405 <%6HQDWRU7HQJNX'DWXN6HUL Fixed remuneration 590 – 590 8WDPD=DIUXO7HQJNX$EGXO Variable remuneration Aziz ȏ 1RQGHIHUUHG ––– (resigned on 9 March 2020) ȏ 'HIHUUHG ––– Total remuneration award for ȴQDQFLDO\HDU 590 – 590 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 139 GOVERNANCE Corporate Governance Overview Statement PRINCIPLE B: EFFECTIVE AUDIT AND RISK MANAGEMENT AUDIT COMMITTEE RISK MANAGEMENT AND INTERNAL CONTROL 7KH$&LVFKDLUHGE\'DWRȇ0RKDPHG5RVV FRAMEWORK Mohd Din and the members are Teoh Su 140 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Corporate Governance Overview Statement PRINCIPLE C: INTEGRITY IN CORPORATE REPORTING AND MEANINGFUL RELATIONSHIP WITH STAKEHOLDERS COMMUNICATION WITH SUMMARY STAKEHOLDERS The Board considers that CIMB has 7KLV&RUSRUDWH*RYHUQDQFH2YHUYLHZ CONDUCT OF GENERAL FRPSOLHGDQGDSSOLHGWKH3ULQFLSOHVRIWKH Statement is made in accordance with the MEETINGS 0&&*LQH[FHSWIRU3UDFWLFH 7KH UHVROXWLRQRIWKH%RDUGGDWHG)HEUXDU\ UHPXQHUDWLRQRI7RS.H\6HQLRU 2021. 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UG$*0RQ-XQHZLWKWKH1RWLFH ȏ 'LVFORVXUHRIDOWHUQDWLYHSUDFWLFH com/en/investor-relations/reports-and- DQG$JHQGDRIWKH$*0GHOLYHUHGWRWKH adopted and how the alternative presentations/annual-reports.html#read/ 6KDUHKROGHUVRQ-XQHWKLVEHLQJ practice achieves the Intended GD\VEHIRUHWKH0HHWLQJ7KH1RWLFHDQG Outcome; Agenda were also published in the local • Actions which CIMB has taken or intends English and Bahasa Malaysia newspapers to take; and DQGPDGHDYDLODEOHRQ&Ζ0%ȇVZHEVLWHDW ȏ 7KHWLPHIUDPHUHTXLUHGWRDFKLHYH ZZZFLPEFRP7KHUG$*0ZDVKHOG DSSOLFDWLRQRIWKHSUHVFULEHG3UDFWLFH IXOO\YLUWXDODVSHUWKH*XLGDQFHDQG)$4V RQWKH&RQGXFWRI*HQHUDO0HHWLQJVIRU /LVWHGΖVVXHUV *XLGDQFH1RWH LVVXHGE\ PRACTICE 7.2 the Securities Commission Malaysia. The Board has decided not to disclose, on 7KHUG$*0ZDVDWWHQGHGE\DOO DQDPHGEDVLVWKHWRSȴYHVHQLRU 'LUHFWRUV0DQDJHPHQWDQG PDQDJHPHQWȇVUHPXQHUDWLRQFRPSRQHQWV Shareholders as the Attendance List. The LQFOXGLQJVDODU\ERQXVEHQHȴWVLQNLQG Chairperson, who chaired the proceedings, DQGRWKHUHPROXPHQWVLQEDQGVRI SURYLGHGIDLURSSRUWXQLW\DQGWLPHWRDOO RM50,000. The Board believes that Shareholders to exercise their rights to GLVFORVXUHRINH\H[HFXWLYHVȇUHPXQHUDWLRQ raise questions and make LVQHLWKHUWR&Ζ0%ȇVDGYDQWDJHQRULQLWV UHFRPPHQGDWLRQV7KHSURFHHGLQJVRIWKH business interests, given the sensitive UG$*0ZHUHUHFRUGHGLQWKHPLQXWHVRI QDWXUHRIVXFKLQIRUPDWLRQDQGWKHȴHUFH the meeting and made available within two FRPSHWLWLRQIRUWDOHQWLQWKHEDQNLQJ ZHHNVDIWHUWKHPHHWLQJRQ&Ζ0%ȇVZHEVLWH industry. at www.cimb.com. $FURVVWKH*URXS&Ζ0%FXUUHQWO\GLVFORVHV &Ζ0%KDVOHYHUDJHGWHFKQRORJ\WRIDFLOLWDWH WKHUHPXQHUDWLRQRIWKHWRSIRXU JUHDWHUVKDUHKROGHUVȇSDUWLFLSDWLRQDQG management positions in their respective HQKDQFHWKHSURFHHGLQJVRI*HQHUDO ȴQDQFLDOVWDWHPHQWVDVIROORZV 0HHWLQJV5HVROXWLRQVGXULQJWKHUG &(2&Ζ0%*URXS+ROGLQJV%HUKDG $*0ZHUHDUULYHGDWYLDRQOLQHHOHFWURQLF poll voting to enable all Shareholders to 2. CEO, CIMB Bank Berhad* cast their votes. The Share Registrar, 3. CEO, CIMB Investment Bank Berhad Boardroom Share Registrars Sdn Bhd, 4. CEO, CIMB Islamic Bank Berhad acted as the Poll Administrator to conduct the online electronic polling process and * Positions 1 and 2 are held by the same individual Messrs Deloitte was appointed as the 6FUXWLQHHUWRYHULI\WKHSROOUHVXOWV CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 141 GOVERNANCE Additional Disclosures (As at 31 December 2020 pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad) 1. UTILISATION OF PROCEEDS EHDULQJDȴ[HGUDWHFRXSRQRI 4. AMERICAN DEPOSITORY RAISED FROM CORPORATE per annum and 4.00% per annum RECEIPT (ADR) OR GLOBAL PROPOSALS respectively, payable on a semi- DEPOSITORY RECEIPT (GDR) DQQXDOEDVLV7KHSURFHHGVIURPWKH 'XULQJWKHȴQDQFLDO\HDUHQGHG issuances were used to subscribe to 7KH*URXSGLGQRWVSRQVRUDQ\$'5RU 'HFHPEHUWKH*URXSKDVFROOHFWLYHO\ AT1 Capital Securities issued by CIMB *'5SURJUDPPHGXULQJWKHȴQDQFLDO\HDU LVVXHGWKHIROORZLQJLQVWUXPHQWV Bank, based on similar terms. under review. (A) IDR1,000,000 MILLION (E) MEDIUM TERM NOTES BONDS (“MTN”) RM600 MILLION 5. IMPOSITION OF SANCTION AND/OR PENALTIES On 27 March 2020, CIMB Niaga On 3 April 2020, the Company issued LVVXHGΖ'5bPLOOLRQERQGV 50PLOOLRQ\HDU071ZKLFKZLOO There were no public sanctions and/or The bonds are divided into 3 series. mature on 3 April 2025. The MTN was material penalties imposed on the 1RPLQDOYDOXHRI\HDU6HULHV$ LVVXHGRXWRILWVH[LVWLQJ&RQYHQWLRQDO Company and its subsidiaries, Directors or Bond, 3-year Series B Bond, and and Islamic Medium Term Notes Management by any regulatory body 5-year Series C Bond amounted to Programmes, which has a combined GXULQJWKHȴQDQFLDO\HDUXQGHUUHYLHZ IDR322,000 million, IDR287,000 OLPLWRI50ELOOLRQLQQRPLQDOYDOXH million, and IDR391,000 million UHVSHFWLYHO\ZLWKȴ[HGLQWHUHVWUDWHRI (F) MTN RM350 MILLION 5.80%, 7.00% and 7.25% per annum 121$8'Ζ7)((6 2Q-XQHWKH&RPSDQ\ respectively. issued RM350 million 3-year MTN 1RQDXGLWIHHVSD\DEOHWRWKH([WHUQDO ZKLFKZLOOPDWXUHRQ-XQH Auditors, Messrs. PricewaterhouseCoopers (B) SUBORDINATED LOANS 7KH071ZDVLVVXHGRXWRILWVH[LVWLQJ 3/7DQGLWVDɝOLDWHVDPRXQWHGWR 2020/2030 USD10 MILLION Conventional and Islamic Medium 50IRUWKH*URXSDQG On 23 March 2020, CIMB Bank PLC Term Notes Programmes, which has 50IRUWKH&RPSDQ\ LVVXHG86'PLOOLRQVXERUGLQDWHG DFRPELQHGOLPLWRI50ELOOLRQLQ ORDQZKLFKTXDOLȴHGDV7LHUΖΖFDSLWDO nominal value. IRU&Ζ0%%DQN3/&7KHVXERUGLQDWHG 7. VARIATION IN RESULTS loan was issued as a single tranche at (G) RM200 MILLION PERPETUAL Dȴ[HGUDWHRISHUDQQXPZLWK PREFERENCE SHARES There were no material variations in DPDWXULW\RI\HDUVIURPWKHLVVXH UHVXOWVIRUWKHȴQDQFLDO\HDUHQGHG 2Q-DQXDU\&Ζ0%ΖVODPLF date with a call option starting at the issued RM200 million Basel-III b'HFHPEHUIURPWKHXQDXGLWHG HQGRI\HDUDQGRQHDFKUHOHYDQW compliant Additional Tier I Perpetual UHVXOWVUHOHDVHGRQ)HEUXDU\ FRXSRQSD\PHQWGDWHWKHUHDIWHU7KH 3UHIHUHQFH6KDUHVZKLFKZDV subordinated loan was subscribed by subscribed by CIMB Bank. The CIMB Bank. 8. PROFIT GUARANTEE issuance was approved by CIMB ΖVODPLF VVKDUHKROGHUDQG%10RQ (C) SUBORDINATED DEBTS 7KH*URXSGLGQRWUHFHLYHDQ\SURȴW b1RYHPEHU DQG'HFHPEHU 2020/2025 RM2.5 BILLION JXDUDQWHHGXULQJWKHȴQDQFLDO\HDUHQGHG 2019 respectively. 31 December 2020. On 12 November 2020, the Company issued RM2.5 billion 10 years 7KHSURFHHGVUDLVHGIURPWKH non-callable 5 years Tier II FRUSRUDWHSURSRVDOZLOOEHXVHGIRU 9. REVALUATION POLICY ON 6XERUGLQDWHGGHEWVEHDULQJDȴ[HG working capital, general banking and LANDED PROPERTIES UDWHFRXSRQRISHUDQQXP other corporate purposes, as payable on a semi-annual basis. The intended. 3OHDVHUHIHUWRWKHDFFRXQWLQJSROLF\RQ SURFHHGVIURPWKHLVVXDQFHVZHUH 3URSHUW\3ODQWDQG(TXLSPHQWLQ1RWHV. used to subscribe to AT1 Capital /DQG1RIWKH6XPPDU\RI6LJQLȴFDQW Securities issued by CIMB Bank, 6+$5(6%8<%$&. *URXS$FFRXQWLQJ3ROLFLHVLQWKH)LQDQFLDO based on similar terms. 'XULQJWKHȴQDQFLDO\HDUWKH&RPSDQ\GLG Statements which are set out in the Financial 6WDWHPHQWVVHFWLRQRIWKH$QQXDO5HSRUW (D) SUBORDINATED DEBTS QRWEX\EDFNDQ\RILWVLVVXHGVKDUHFDSLWDO 2020/2025 RM550 MILLION & IURPWKHRSHQPDUNHW SUBORDINATED DEBTS 10. MATERIAL CONTRACTS 2020/2030 RM200 MILLION 3. OPTIONS, WARRANTS OR On 3 December 2020, the Company CONVERTIBLE SECURITIES There were no material contracts entered issued RM550 million perpetual LQWRE\&Ζ0%*URXSDQGLWVVXEVLGLDULHV non-callable 5 years Additional Tier I There were no options, warrants or LQYROYLQJ'LUHFWRUVȇDQGPDMRUVKDUHKROGHUVȇ Capital Securities and RM200 million convertible securities issued during the interest which were still subsisting as at perpetual non-callable 10 years ȴQDQFLDO\HDUE\WKH*URXS WKHHQGRIWKHȴQDQFLDO\HDUXQGHUUHYLHZ Additional Tier I Capital Securities or which were entered into since the end RIWKHSUHYLRXVȴQDQFLDO\HDUH[FHSWDV disclosed in Notes 53 to the Financial Statements which are in the Financial 6WDWHPHQWVVHFWLRQRIWKH$QQXDO5HSRUW 142 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Statement on Risk Management and Internal Control business and other support units. The BOARD RESPONSIBILITY MANAGEMENT RESPONSIBILITY SULQFLSDOUHVSRQVLELOLW\RI*&$'LVWR 7KH%RDUGDɝUPVLWVFRPPLWPHQWRQLWV Management is accountable to the Board provide independent appraisal on the RYHUDOOUHVSRQVLELOLW\DQGRYHUVLJKWRI&Ζ0% DQGLVRYHUDOOUHVSRQVLEOHIRUWKHHHFWLYH DGHTXDF\HɝFLHQF\DQGHHFWLYHQHVV *URXSȇVV\VWHPRILQWHUQDOFRQWURODQGULVN LPSOHPHQWDWLRQRIWKH%RDUGȇVSROLFLHVDQG RIULVNPDQDJHPHQWFRQWURODQG management, and is constantly keeping procedures on risks and controls. Its governance processes implemented by DEUHDVWZLWKGHYHORSPHQWVLQDUHDVRIULVN UHVSRQVLELOLWLHVLQUHVSHFWRIULVN 0DQDJHPHQW*&$'SURYLGHVDXGLW and governance. To this end, the Board is management and internal control include: opinion based on the 5 components assisted by the Board Risk & Compliance set out in the Internal Control ȏ ΖGHQWLI\LQJDQGHYDOXDWLQJWKHULVNV Committee and the Audit Committee, Integrated Framework issued by the IDFHGE\WKH*URXSDQGWKH which have been delegated with primary &RPPLWWHHRI6SRQVRULQJ DFKLHYHPHQWRIEXVLQHVVREMHFWLYHV RYHUVLJKWUHVSRQVLELOLWLHVRQWKH*URXSȇV 2UJDQLVDWLRQVRIWKH7UHDGZD\ and strategies; risk management and internal control Commission (COSO); namely control systems. The Board remains responsible • Formulating relevant policies and environment, risk assessment, control IRUWKHJRYHUQDQFHRIULVNDQGLQWHUQDO procedures to manage these risks in DFWLYLWLHVLQIRUPDWLRQDQG FRQWURODQGIRUDOOWKHDFWLRQVRIWKH%RDUG DFFRUGDQFHZLWKWKH*URXSȇVVWUDWHJLF communication, and monitoring Committees with regard to the execution vision and overall risk appetite; activities. 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For this • Reporting in a timely manner to the annual audit plan that is approved by purpose, the Board has ensured the Board on any changes to the risks and &Ζ0%*URXS$XGLW&RPPLWWHHDQGWKH HVWDEOLVKPHQWRINH\SURFHVVHVIRU the corrective actions taken. %DQNLQJ*URXS$XGLW&RPPLWWHH7KH UHYLHZLQJWKHHHFWLYHQHVVDGHTXDF\DQG annual audit plan is developed based LQWHJULW\RIWKH*URXSȇVV\VWHPRILQWHUQDO 7KH*URXS&KLHI([HFXWLYH2ɝFHU *URXS RQDVVHVVPHQWRIULVNVH[SRVXUHVDQG control and risk management. &(2 DQG*URXS&KLHI)LQDQFLDO2ɝFHU VWUDWHJLHVRI&Ζ0%*URXS$UHDVWKDW have provided assurance to the Board that are assessed to be high risk are subject The risk management and internal control WKH*URXSȇVULVNPDQDJHPHQWDQGLQWHUQDO to an annual audit, while those that are systems are designed to manage risk control systems are operating adequately assessed to be medium or low risk are exposures within the risk appetite set by DQGHHFWLYHO\ subject to a cycle audit. 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UHTXLUHPHQWIURPWRZKLOH RETAIL CREDIT RISK the implementation date remained Business continuity plans have been The various movement control order RQ-XO\%DQNVZLOOEHUHTXLUHG activated across all our geographies PHDVXUHVWDNHQE\*RYHUQPHQWV to comply with the minimum LHDFWLYDWLRQRIVSOLWRSHUDWLRQVDQG ZRUOGZLGHWRFXUEWKHVSUHDGRI UHTXLUHPHQWRIIURP ZRUNIURPKRPHDUUDQJHPHQWV DQG COVID-19 has a material adverse b6HSWHPEHURQZDUGV remains in place where required to impact on the global economy and ensure our services are continuously EXVLQHVVHV7KH*URXSKDV available to customers. 164 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Audit Committee Report OVERVIEW The Audit Committee of CIMB Group Holdings Berhad (Group AC) is committed to its role of ensuring high corporate governance practices and providing oversight on the Group’s ȴQDQFLDOUHSRUWLQJULVNPDQDJHPHQWDQGLQWHUQDOFRQWUROV\VWHPV Ʉ$77(1'$1&(2)0((7Ζ1*6 Ʉ$87+25Ζ7< 7KHGHWDLOVRIWKH*URXS$&PHPEHUVKLSDQGPHHWLQJVKHOGLQDUHDVIROORZV The AC is a Board delegated committee. In discharging its duties, the AC has explicit Number of authority to investigate any matter within Committee Meetings Name of LWVWHUPVRIUHIHUHQFHΖWKDVIXOODFFHVVWR Committee Member Status Held Attended DQGFRRSHUDWLRQIURP0DQDJHPHQWDQG 'DWRȇ0RKDPHG5RVVELQ Chairman/ 15 15 IXOOGLVFUHWLRQWRLQYLWHDQ\'LUHFWRURU Mohd Din Independent Director ([HFXWLYH2ɝFHUWRDWWHQGLWVPHHWLQJV The AC shall have the necessary resources Datuk Mohd Nasir Ahmad Independent Director 15 15 IURPWKH*URXSWRGLVFKDUJHLWVIXQFWLRQV HHFWLYHO\7KH$&KDVIXOODQGXQUHVWULFWHG 0V7HRK6X 'DWRȇ=DLQDO$ELGLQ3XWLK Non-Independent Director F $SSURYHGWKH.3ΖVIRU*&Ζ$DQGKLV (retired w.e.f. 28 June 2020) direct reports and evaluated the *&Ζ$ȇVDQQXDOSHUIRUPDQFHWRJHWKHU 'HOLEHUDWLRQVDWWKH$&PHHWLQJVZHUHUREXVWDQGGHWDLOHGJHQHUDOO\ODVWLQJIRUDIHZ with the remuneration payout. KRXUV0LQXWHVRIWKH$&PHHWLQJVKHOGZHUHSURYLGHGWRPHPEHUVRIWKHUHVSHFWLYH %RDUGV7KH%RDUGZRXOGEHEULHIHGRQWKHVLJQLȴFDQWPDWWHUVGHOLEHUDWHGGXULQJWKH$& G (YDOXDWHG*&$'ȇVRYHUDOO meetings. SHUIRUPDQFHIRUDQGSURYLGHG ZULWWHQIHHGEDFNIRULPSURYHPHQWV CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 165 GOVERNANCE Audit Committee Report H 5HYLHZHGWKHVXPPDU\RILQWHUQDO ȏ $SSURSULDWHQHVVRIDXGLWDSSURDFK J &RQWLQXHGWRVXSSRUW*URXSȇV DXGLWZRUNSHUIRUPHGDFURVVWKH DQGWKHHHFWLYHQHVVRIDXGLW initiative to promote sustainability region together with the audit planning DJHQGDE\UHYLHZLQJWKHDGRSWLRQRI outcome on a quarterly basis. ȏ 7LPHOLQHVVRIDXGLWGHOLYHUDEOHV WKH*URXS6XVWDLQDEOH)LQDQFLQJ 3ROLF\DQGLPSOHPHQWDWLRQRIWKH • Non-audit services rendered by the I 5HYLHZHGDQGDSSURYHGWKH([WHUQDO relevant programs. External Auditor so that it does not $XGLWRUȇVDXGLWSODQDQGVFRSH impede their independence RIZRUNRQ)HEUXDU\ K 0RQLWRUHGWKHLPSOHPHQWDWLRQRI corrective actions by Management; J +HOGDFORVLQJPHHWLQJRIH[WHUQDO k. On track in achieving the requirement Management need to provide audits with the External Auditor to RQ&HUWLȴFDWLRQRI%DQNLQJ$XGLWRUV MXVWLȴFDWLRQVIRUDQ\XQGXHGHOD\DQG UHYLHZWKHȴQDQFLDOUHVXOWV0)56 &%$ DVLPSRVHGE\$VLDQΖQVWLWXWHRI SUHVHQWIRU$&ȇVDSSURYDO related matters, credit related Chartered Bankers (AICB). PDWWHUVΖ7JHQHUDOFRQWUROȴQGLQJV i. Held joint meetings with the group and tax related matters and GOVERNANCE, RISK AND UHVSHFWLYH$&VDQG0DQDJHPHQWRI DUHDVRIFRQFHUQVLGHQWLȴHG CONTROL CIMB Niaga, CIMB Thai, CIMB a. Reviewed the adequacy and Cambodia, CIMB Vietnam and Touch h. Held 2 meetings with the External HHFWLYHQHVVRIWKH*URXSȇVV\VWHPRI ȆQ*RΖQHDFKRIWKHPHHWLQJVWKH $XGLWRUZLWKRXWWKHSUHVHQFHRIWKH LQWHUQDOFRQWUROVȴQDQFLDOUHSRUWLQJ businesses and audit related issues *URXS0DQDJHPHQWDQG([HFXWLYH and risk management (based on audit RIWKHUHVSHFWLYHRSHUDWLRQVDQG 'LUHFWRUVRQ-DQXDU\DQG plan coverage). control environments were presented b1RYHPEHUWRGLVFXVV and discussed. 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Completed the annual assessment on the External Auditor in November d. Encouraged robust discussion on AUDIT ISSUES RESOLUTION 2020 prior to recommendation to the emerging risks, key challenges and COMMITTEE (AIRCOM) Board on its reappointment; the operational concerns, including a. AIRCom, an AC delegated committee, principal areas assessed were in requiring Management to present assisted the AC in ensuring the DFFRUGDQFHWR%10ȇV*XLGHOLQHVRQ their strategies and action plans in HHFWLYHQHVVRIPDQDJHPHQWDFWLRQV External Auditor covering achieving established objectives. in addressing key risks and internal SHUIRUPDQFHLQGHSHQGHQFHDQG control weaknesses. The appointment objectivity. 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The AIRCom meetings were held &RPSDQ\ZKLFKLQYROYHGVLJQLȴFDQW encompassed all business and PRQWKO\SULRUWRDQ\$&PHHWLQJVIRU judgement and estimates by the support units; areas audited included WKHPRQWK PLQXWHVRIWKH$Ζ5&RP 0DQDJHPHQW7KH$&LVVDWLVȴHGWKDW treasury related matters, loans & PHHWLQJVZHUHVXEPLWWHGWR$&IRU based on the audit procedures ȴQDQFLQJ UHWDLO QRQUHWDLO QRWLȴFDWLRQDQGGLVFXVVLRQ SHUIRUPHGE\WKH([WHUQDO$XGLWRUV GLVWULEXWLRQFKDQQHOVEDFNRɝFH no material exceptions were noted operations, IT operations & security, FINANCIAL REPORTING & TAX on those matters. +HDG2ɝFH(QDEOHUVIXQFWLRQVDQG DOVRVSHFLDOIRFXVDUHDVVXFKDV$0/ D 5HYLHZHGWKHȴQDQFLDOVWDWHPHQWVRI G 5HYLHZHGZULWHRSURSRVDOVDV &)7FXVWRPHULQIRUPDWLRQVHFUHF\ WKH*URXSRQDTXDUWHUO\EDVLVDQG presented by the Management product transparency, outsourced WKHGUDIWDQQRXQFHPHQWVEHIRUH EHIRUHUHFRPPHQGLQJWKHPIRUWKH IXQFWLRQVDQGEXVLQHVVFRQWLQXLW\ UHFRPPHQGLQJWKHPIRUWKH%RDUGȇV %RDUGȇVDSSURYDOLQDFFRUGDQFHWR approval. established policy. 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Submitted periodic reports to the AC, top Management and regulators. 168 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Board Shariah Committee Report Pursuant to the enterprise wide Shariah governance framework as provided by Bank Negara Malaysia in its Guideline on Shariah Governance for Islamic Financial Institutions DQGQRZDVHQVKULQHGLQWKHHHFWLYHΖVODPLF)LQDQFLDO6HUYLFHV$FWWKH%RDUGRI Directors (“the Board’’) is ultimately responsible and accountable for the oversight and management of Shariah matters in the operation of the Group’s Islamic banking and ȴQDQFHDFWLYLWLHVΖQXQGHUWDNLQJLWVGXWLHVDQGUHVSRQVLELOLWLHVUHODWLQJWR6KDULDKWKH Board relies on the advice of the Board Shariah Committee of CIMB Group Holdings Berhad that it established under its core Islamic operating entity, CIMB Islamic Bank Berhad (“CIMB Islamic”). 7KHPDLQUHVSRQVLELOLW\RIWKH%RDUG The Board Shariah Committee shall at all ZAKAT OBLIGATIONS Shariah Committee is to assist the Board in times assist the Board to ensure that the WKHRYHUVLJKWDQGPDQDJHPHQWRIDOO *URXSȇVΖVODPLFEDQNLQJDQGȴQDQFH CIMB Islamic Bank Berhad pays business Shariah matters relating to the Islamic business does not have elements/activities ]DNDWE\DGRSWLQJWKH$GMXVWHG*URZWK EDQNLQJDQGȴQDQFHEXVLQHVVRIWKH&Ζ0% which are not permissible under Shariah. Method to state zakat authorities in line *URXS+ROGLQJV%HUKDG7KH%RDUG with the methodology approved by Board Shariah Committee operates on the 7KHPHPEHUVRIWKH%RDUG6KDULDK Shariah Committee. However, the amount authority as delegated and empowered to &RPPLWWHHDUHDVIROORZV payable by the CIMB Islamic Bank Berhad LVDWWKHGLVFUHWLRQRIWKHPDQDJHPHQWRI it by the Board and as attributed to it 'U6KDIDDLELQ0XVD XQGHUUHOHYDQWȴQDQFLDOUHJXODWLRQVDQG CIMB Islamic Bank Berhad and it is the 3URIHVVRU'U CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 169 GOVERNANCE Board Shariah Committee Report BOARD SHARIAH COMMITTEE’S Our independent assessment and In ensuring that the activities and REPORT FRQȴUPDWLRQKDVEHHQXVHGDVWKHEDVLV RSHUDWLRQVRI&Ζ0%*URXSDUH6KDULDK IRUWKH%RDUGȇVDɝUPDWLRQRIWKHVDPHLQ compliant, Shariah Review conducts post ΖQWKHQDPHRI$OODKWKH0RVW%HQHȴFHQW WKH'LUHFWRUȇV5HSRUWKHUHLQEHIRUH UHYLHZRI&Ζ0%*URXSȇVDFWLYLWLHVDQG WKH0RVW0HUFLIXO operations in accordance with the annual In making our independent assessment Shariah review work plan approved by us :HWKHPHPEHUVRIWKH&Ζ0%*URXS DQGFRQȴUPDWLRQZHKDYHDOZD\V DQGWKHUHVSHFWLYH%RDUGVRI'LUHFWRUVRI Board Shariah Committee as established UHFRJQLVHGWKHLPSRUWDQFHRI&Ζ0%*URXS &Ζ0%*URXS$GGLWLRQDOO\6KDULDK5HYLHZ under CIMB Islamic Bank Berhad (“CIMB PDLQWDLQLQJDQGUHLQIRUFLQJWKHKLJKHVW conducts investigations on issues Islamic”), are responsible to assist the SRVVLEOHVWDQGDUGVRIFRQGXFWLQDOORILWV escalated by the stakeholders and %RDUGLQWKHRYHUVLJKWDQGPDQDJHPHQWRI actions, including the preparation and SHUIRUPVDGKRFUHYLHZDVUHTXLUHGIURP 6KDULDKPDWWHUVLQWKHRSHUDWLRQRIWKH GLVVHPLQDWLRQRIVWDWHPHQWVSUHVHQWLQJ time to time by us and the regulators. 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Although the Board is ultimately ΖVODPLFEDQNLQJDQGȴQDQFHEXVLQHVVHV WKH*URXSDGRSWHGWKHVWUDWHJLF UHVSRQVLEOHDQGDFFRXQWDEOHIRUDOO LPSOHPHQWDWLRQRIWLHUHGPRGHOLH7KUHH 6KDULDKPDWWHUVXQGHUWKH*URXSWKH ΖQWKLVUHJDUGVXɝFLHQWLQWHUQDOFRQWUROV /LQHVRI5LVN'HIHQVHLQJRYHUQLQJDQG Board relies on our independent advice on are in place to ensure that any new Islamic managing Shariah Non-Compliant risk. the same. ȴQDQFLDOWUDQVDFWLRQLVSURSHUO\DXWKRULVHG /DVWO\WKHUHLVDOVRDWHDPRILQWHUQDO WKHJURXSȇVDVVHWVDQGOLDELOLWLHVXQGHULWV auditors who conduct periodic Shariah Our main responsibility and accountability VWDWHPHQWVRIȴQDQFLDOSRVLWLRQDUH DXGLWVRIDOOWKH*URXSȇVΖVODPLFEDQNLQJ is to assist the Board in ensuring that the VDIHJXDUGHGDJDLQVWSRVVLEOH6KDULDK DQGȴQDQFHRSHUDWLRQVRQDVFKHGXOHG *URXSȇVΖVODPLFEDQNLQJDQGȴQDQFH non-compliance; and, that the day to day and periodic basis. businesses does not have elements/ FRQGXFWRILWVRSHUDWLRQVGRHVQRW activities which are not permissible under contradict Shariah principles. $OOLQDOOWKH0DQDJHPHQWRIWKH*URXSLV Shariah. In undertaking our duties we shall responsible and accountable to the Board IROORZDQGDGKHUHWRWKHGHFLVLRQVYLHZV In addition to the necessary policies and to ensure that the Islamic banking and DQGRSLQLRQVRIWKH6KDULDK$GYLVRU\ SURFHGXUHVWKH*URXSKDVDZHOOGHȴQHG ȴQDQFHEXVLQHVVHVRI&Ζ0%*URXSDUH &RXQFLORIWKHUHOHYDQW0DOD\VLDQȴQDQFLDO GLYLVLRQRIUHVSRQVLELOLW\DQGJXLGHOLQHVRI done in accordance with the requirement UHJXODWRUVIRUEXVLQHVVHVXQGHUWDNHQLQ EXVLQHVVFRQGXFWWRDOOVWD RI6KDULDKΖWLVRXUUHVSRQVLELOLW\WRIRUP 0DOD\VLDDQGIRUEXVLQHVVHVRXWVLGH DQLQGHSHQGHQWRSLQLRQRIWKHVWDWHRI Malaysia we shall take into consideration (HFWLYH6KDULDKJRYHUQDQFHLVVXSSRUWHG 6KDULDKFRPSOLDQF\RIWKHEXVLQHVVDQGLWV WKHGHFLVLRQVYLHZVDQGRSLQLRQVRIWKH E\DSURIHVVLRQDOVWDRI6KDULDK operations and advise the Board UHOHYDQWDXWKRULW\RQ6KDULDKPDWWHUV LI researchers as well as the advisory and accordingly. 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Over the last one year, we have DFKLHYHGVLJQLȴFDQWPLOHVWRQHVDQGPDGHFRPPLWPHQWVWRWDNHWDQJLEOHVWHSVWRZDUGV addressing sustainability challenges facing our organisation, and our stakeholders. 2XUPLGWHUPVWUDWHJ\RQVXVWDLQDELOLW\WDNHVLQWRDFFRXQWKRZRXUEXVLQHVVDQGVXSSO\FKDLQZLOOEHLPSDFWHGE\ULVNVVXFKDVFOLPDWH FKDQJHDQGSDQGHPLFVDVZHOODVRSSRUWXQLWLHVWRFUHDWHGLUHFWQHWSRVLWLYHLPSDFWLQRXURSHUDWLRQV2XUHPSOR\HHVSOD\DQLPSRUWDQW UROHLQFKDPSLRQLQJGHȴQLWLYHDFWLRQWRPLWLJDWHQHJDWLYHLPSDFWVDQGFUHDWHSRVLWLYHFKDQJHZLWKLQRXUFLUFOHVRILQȵXHQFHDVZHOODVWKH FRPPXQLWLHVZKHUHZHRSHUDWH:HVWULYHWRFUHDWHDQLQFOXVLYHZRUNSODFHWKDWZHOFRPHVGLYHUVLW\DVLWLPSURYHVGHFLVLRQPDNLQJ HQKDQFHVLQQRYDWLRQFUHDWLYLW\SURGXFWLYLW\UHSXWDWLRQHQJDJHPHQWDQGSHUIRUPDQFH HOW WE MAP SUSTAINABLE ACTION MATERIAL K E Y SUSTAINABLE TOPICS CONSIDERATIONS DEVELOPMENT GOALS How do we reduce our direct RSHUDWLRQDOLPSDFWVRQWKH HQYLURQPHQWDQGFRPPXQLWLHV who matter to us? 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How do we ensure the safety of RXUHPSOR\HHVGXULQJWKH SDQGHPLF" Talent How can we strengthen Attraction, VXVWDLQDEOHVXSSO\FKDLQ Growth, & PDQDJHPHQWSUDFWLFHV" Retention RELEVANT STRATEGIC THEMES Delivering Sustainable Financial Returns Purpose-driven Organisation 184 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 SUSTAINABLE ACTION: PERFORMANCE HIGHLIGHTS 2020 )HPDOHUHSUHVHQWDWLRQ 2FFXSDWLRQDO6DIHW\DQG 2,195.8 tCO2e 22% 5 'LUHFW 6FRSH *+*(PLVVLRQV LQ.H\0DQDJHPHQW Health related training SURJUDPPHVFRQGXFWHG 0DOD\VLDDQG7KDLODQG )HPDOHUHSUHVHQWDWLRQ 81,754.5 tCO2e 43% (QHUJ\ΖQGLUHFW 6FRSH LQ6HQLRU0DQDJHPHQW *+*(PLVVLRQV $EVHQWHHLVPUDWHRI 47% )HPDOHUHSUHVHQWDWLRQ 0.95% 8.8% 5HGXFWLRQLQ6FRSH LQPDQDJHPHQWSRVLWLRQVZLWKLQ DQG*+*(PLVVLRQV 5HYHQXH*HQHUDWLQJIXQFWLRQV ΖQWHQVLW\YV 45.4% (PSOR\HHVFRYHUHGE\DWUDGH 1 : 0.83 5DWLRRI XQLRQRUFROOHFWLYHEDUJDLQLQJ RM644.9 million remuneration between male DJUHHPHQW 0DOD\VLD LQUHQHZDEOHHQHUJ\ȴQDQFLQJ DQGIHPDOHHPSOR\HHVLQ.H\ 0DQDJHPHQW 0DOD\VLD 48 3HUVRQVZLWK'LVDELOLWLHV HPSOR\HG RM94 million 783 89 LQYHVWHGLQWUDLQLQJDQG 7KH&RPSOHWH%DQNHUȠ $YHUDJHWUDLQLQJKRXUV GHYHORSPHQW SURJUDPPHSDUWLFLSDQWVWRGDWH SHUHPSOR\HH 98.8% 33,421 (PSOR\HHV FRPSXOVRU\HOHDUQLQJ ZKRDWWHQGHG'WUDLQLQJ FRPSOHWLRQUDWH 79 &Ζ0%$6($1 $URXQG 620 6FKRODUVKLSKROGHUVWRGDWH 3527*VKLUHGE\&Ζ0%WRGDWH 2,239 5HJLVWHUHGVXSSOLHUV 89% 5HJLVWHUHGDV >RM1.2 billion ORFDOVXSSOLHUV LQSURFXUHPHQWVSHQG 3OHDVHUHIHUWRSDJHRI&Ζ0% V6XVWDLQDELOLW\5HSRUWSDJHIRUPRUHGHWDLOV CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 185 SUSTAINABILITY STATEMENT Sustainable Business Aligning business priorities with stakeholders’ expectations is an essential aspect of FUHDWLQJDYDOXDEOHDQGVXVWDLQDEOHEXVLQHVV7KURXJKWKHSURYLVLRQRIȴQDQFLDOVHUYLFHV ZHKDYHH[SRVXUHWRDEURDGUDQJHRIVHFWRUVDQGDFWLYLWLHVWKDWEULQJFROOHFWLYHEHQHȴWWR the planet, as well as economic opportunities, uplifting of living standards, and overall ZHOOEHLQJ2XUVXVWDLQDEOHȴQDQFLQJIUDPHZRUNJXLGHVRXUȴQDQFLQJRIQHWSRVLWLYHDQG sustainable projects, while minimising our risk of negative impacts through robust risk mitigation processes. 7KHDGYDQFHPHQWRIWHFKQRORJ\DQGGDWDLVWUDQVIRUPLQJRXUEXVLQHVVWKURXJKRSHUDWLRQDOHɝFLHQFLHVDQGWKHZD\ZHVHUYHRXU FXVWRPHUV7KURXJKGDWDDQDO\WLFVZHDUHDEOHWREHWWHUXQGHUVWDQGRXUFXVWRPHUV QHHGVDQGVHOHFWLYHO\HQJDJHWKHPZLWKUHOHYDQW VHUYLFHVWRLPSURYHWKHLUEDQNLQJH[SHULHQFH7KHSHUYDVLYHQHVVRIWHFKQRORJ\DQGGDWDDOVRDOORZVXVWRSURYLGHGLJLWDOVHUYLFHVDQG SURGXFWVWKDWSURPRWHȴQDQFLDOLQFOXVLRQ HOW WE MAP SUSTAINABLE BUSINESS MATERIAL K E Y SUSTAINABLE TOPICS CONSIDERATIONS DEVELOPMENT GOALS :KRDUHXVLQJRXUSURGXFWVDQG VHUYLFHVDQGKRZ" Customer Experience How do we ensure fair and HTXLWDEOHWUHDWPHQWRIFXVWRPHUV" +RZDUHZHOHYHUDJLQJWHFKQRORJ\ WRWUDQVIRUPFXVWRPHUH[SHULHQFH" +RZGRZHFUHDWHSRVLWLYHLPSDFWV Sustainable Finance RQWKHHQYLURQPHQWDQG FRPPXQLWLHVWKURXJKRXUSURGXFWV DQGVHUYLFHV" :KDWLVRXUHQYLURQPHQWDODQG Technology VRFLDOLPSDFWDORQJWKHYDOXHFKDLQ" +RZGRRXUSURGXFWVDQGVHUYLFHV FDWHUWRXQGHUVHUYHGFRPPXQLWLHV" How do we contribute to the greater Financial Literacy, Inclusion DJHQGDRIȴQDQFLDOZHOOEHLQJ" and Well-being RELEVANT STRATEGIC THEMES Delivering Sustainable Customer Purpose-driven Financial Returns Centricity Organisation Disciplined Execution Transform Fundamentals 186 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Sustainable Business SUSTAINABLE BUSINESS: PERFORMANCE HIGHLIGHTS 2020 2YHU > RM1.35 billion 5 6HFWRU*XLGHVUROOHGRXW 16 million ȴQDQFLQJIRUDRUGDEOHKRXVLQJ RQ(QYLURQPHQWDODQG UHWDLOFXVWRPHUVVHUYHGE\ 6RFLDOULVNV EUDQFKHVDQGPRUHWKDQ VHOIVHUYLFHWHUPLQDOV RM1.2 billion SHUVRQDOȴQDQFLQJIRU% 2YHU 179 consumers )LQDQFLQJ)DFLOLWLHVZLWKLQGHSWK 5 million GXHGLOLJHQFHRQ(QYLURQPHQWDO digital users DQG6RFLDOULVNVRIZKLFK RM0.97 billion FRPPLWWHGIRU6XVWDLQDELOLW\/LQNHG /RDQV)LQDQFLQJ 3 )LQDQFLQJ)DFLOLWLHVZHUHQRW UHFRPPHQGHGGXHWRHOHYDWHG sustainability risks RM285 million 18 )LQDQFLQJ)DFLOLWLHVZHUH ȴQDQFLQJIRUJUHHQKRPHV UHFRPPHQGHGZLWK$FWLRQ3ODQV >RM339 million 7 out of 8 ȴQDQFLQJIRUHOHFWULFDQG FOLHQWV ZLWK$FWLRQ3ODQV K\EULGYHKLFOHV More than GXHLQFRPSOHWHGWKHP 14,000 students engaged RQȴQDQFLDOOLWHUDF\ 1HW3URPRWHU6FRUHZLWKLQ More than 72% 1,300 60(VHPSRZHUHG UHODWLYHWRSHHUV RQVXVWDLQDEOHSUDFWLFHV 3OHDVHUHIHUWRSDJHRI&Ζ0% V6XVWDLQDELOLW\5HSRUWSDJHIRUPRUHGHWDLOV CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 187 SUSTAINABILITY STATEMENT Corporate Social Responsibility In aspiring to be a leading focused ASEAN Bank, CIMB is committed to its purpose of “building a high-performing sustainable organisation to help advance customers and society”. We focus on issues that are most important and meaningful to the communities around us, and do our part to help ensure that no one is left behind, especially among communities from the lowest 40% of income earners (B40), where the needs and inequality are the greatest. We help create sustainable communities in markets where we operate through supporting programmes that promote equality, inclusion, stewardship, empowerment and entrepreneurship. We encourage and facilitate our employees and stakeholders to volunteer and be agents of change. HOW WE MAP CORPORATE SOCIAL RESPONSIBILITY MATERIAL K E Y SUSTAINABLE TOPICS CONSIDERATIONS DEVELOPMENT GOALS How do we instil new skills that KDYHWKHSRWHQWLDOWRLPSURYH Corporate Citizenship & FRPSHWHQFLHVLQFRPH Volunteerism HPSOR\DELOLW\FRPSHWLWLYHQHVV DQGTXDOLW\RIOLIHRIEHQHȴFLDULHV" +RZGRZHLPSURYHKHDOWKDQG ZHOOEHLQJRIEHQHȴFLDULHV" +RZGRZHSURYLGHDVSULQJERDUG IRUPHDQLQJIXOSDUWLFLSDWLRQE\RXU RELEVANT STRATEGIC THEME VWDNHKROGHUVWRVXSSRUWORFDO communities? Purpose-driven Organisation CORPORATE SOCIAL RESPONSIBILITY: PERFORMANCE HIGHLIGHTS 2020 RM29.3 million RM10.5 million RM10.9 million LQYHVWHGLQFRPPXQLWLHV VSHQWRQ'LVDVWHU5HOLHI VSHQWRQ(GXFDWLRQ *HQHUDO'RQDWLRQVDQG2WKHUV 4,216 7RWDOYROXQWHHUKRXUV 118,808 RM3.9 million RM4.0 million 7RWDOQXPEHURIEHQHȴFLDULHV VSHQWRQ&RPPXQLW\ VSHQWRQ6SRUWV 'HYHORSPHQW 3OHDVHUHIHUWRSDJHRI&Ζ0% V6XVWDLQDELOLW\5HSRUWSDJHIRUPRUHGHWDLOV 188 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Governance and Risk A robust governance framework supports the navigation of risks and creates a culture of transparency and accountability, which leads to long-term value creation for stakeholders. Our Sustainability performance is enabled by a robust governance framework that lays the foundation for us to drive net positive economic, environmental and social impacts. &RUSRUDWHJRYHUQDQFHLQYROYHVWKHSROLFLHVSURFHGXUHVSURFHVVHVDQGSUDFWLFHVWKDWDFRPSDQ\GHSHQGVRQDQGLVYLWDOWRKHOSDFKLHYH LWVJRDOVPDQDJHULVNDQGIDFLOLWDWHGHFLVLRQPDNLQJ&RUSRUDWHFXOWXUHVHWVZKDWLVFRPPRQO\GHVFULEHGDVWKHVKDUHGYDOXHVDQGQRUPV WKDWVKDSHWKHEHKDYLRXUDQGPLQGVHWZLWKLQDQRUJDQLVDWLRQ+DYLQJDVWURQJFXOWXUHRILQWHJULW\SURPRWHVEHKDYLRXUVFRQVLVWHQWZLWKD FRPSDQ\WKDWKROGVJRRGFRUSRUDWHJRYHUQDQFHDVDFRUQHUVWRQHRILWVRSHUDWLRQVDQGEXVLQHVV HOW WE MAP GOVERNANCE AND RISK MATERIAL K E Y SUSTAINABLE TOPICS CONSIDERATIONS DEVELOPMENT GOALS +RZGRZHHVWDEOLVKEHVWSUDFWLFH JRYHUQDQFHSULQFLSOHVIRUGULYLQJ the sustainability agenda? +RZGRZHHQVXUHSROLFLHV SURFHGXUHVDQGIUDPHZRUNVDUH UREXVWLQFOXVLYHDQGHHFWLYHLQ Governance LPSOHPHQWDWLRQDQGDGGUHVV PDWHULDOWRSLFV" How do we strengthen internal FRQWUROVH[WHUQDOFRPSOLDQFH Corporate Culture PRQLWRULQJPHDVXUHPHQWDQG UHSRUWLQJ" +RZGRZHSURPRWHJRRGFRUSRUDWH JRYHUQDQFHDQGHQKDQFHSUHYHQWLRQ RIIUDXGDQGȴQDQFLDOFULPHV" +RZGRZHLPSURYHIHHGEDFNDQG JULHYDQFHPHFKDQLVPVWKDWSURYLGH DVDIHHQYLURQPHQWIRUHPSOR\HHV and other stakeholders to share FRQFHUQVDQGSURYLGHVDWLVIDFWRU\ RELEVANT STRATEGIC THEME resolution? +RZGRZHFUHDWHDFRUSRUDWH FXOWXUHDQGYDOXHVWKDWKHOSWRGULYH EHWWHUJRYHUQDQFHZLWKLQWKH Purpose-driven Organisation organisation? GOVERNANCE AND RISK: PERFORMANCE HIGHLIGHTS 2020 Governance- 5LVN &ULVLV0DQDJHPHQW th related scores 65 Percentile 30% 5DQNLQJRQ'-6Ζ )HPDOHUHSUHVHQWDWLRQ on Dow Jones 85/100 XSIURPstSHUFHQWLOHLQ on the Board Sustainability $QWL&ULPH3ROLF\ Index Measures Corporate 11 out of 13 30% Assessment 86/100 PDWHULDOLVVXHVVXSSRUWHGE\ $FWLYH%RDUGPHPEHUVLQ (2020) Code of Business Conduct SROLF\FRPPLWPHQWV QRQSURȴWVRFLDO HQYLURQPHQWDO 66/100 organisations 3OHDVHUHIHUWRSDJH RI&Ζ0% V6XVWDLQDELOLW\5HSRUWSDJHIRUPRUHGHWDLOV CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 189 SUSTAINABILITY STATEMENT Stakeholder Engagement and Advocacy Systematic engagement is fundamental to understanding stakeholders' needs, while advocacy creates consensus and an ecosystem of support and change. It is critical to analyse, understand and respond to the evolving expectations, needs, and issues of our stakeholders. The primary objective for our engagement is to raise awareness and to mobilise support for meaningful action towards sustainable development. 2YHUWKHSDVW\HDUZHZRUNHGWRUDLVHRXUOHYHORIHQJDJHPHQWZLWKLQWHUQDOVWDNHKROGHUVDFURVVWKH*URXSDVWKHRULHQWDWLRQRIRXU HPSOR\HHVRQVXVWDLQDELOLW\VXVWDLQDEOHȴQDQFHDQGVXVWDLQDEOHGHYHORSPHQWLVFULWLFDOWRWKHVXFFHVVRIRXUVWUDWHJ\UROORXW ([WHUQDOO\ZHDFWLYHO\SDUWLFLSDWHGLQUHJXODWRU\OHGDQGLQGXVWU\SHHUZRUNLQJJURXSVWRVXSSRUWWKHGHYHORSPHQWRIVWDQGDUGVDQG WRRONLWV:HLQLWLDWHGGLDORJXHVDQGMRLQHGGHOLEHUDWLRQVZLWKEXVLQHVVOHDGHUVDVVRFLDWLRQVFOLHQWVFLYLOVRFLHW\RUJDQLVDWLRQVVXSSOLHUV DQGJRYHUQPHQWRɝFLDOVRQFDWDO\VLQJDQHFRV\VWHPWKDWLVFRQVFLHQWLRXVO\GULYLQJWRZDUGVVXVWDLQDEOHGHYHORSPHQW HOW WE MAP STAKEHOLDER ENGAGEMENT AND ADVOCACY MATERIAL K E Y SUSTAINABLE TOPICS CONSIDERATIONS DEVELOPMENT GOALS +RZGRZHSDUWQHUZLWKLQGXVWU\ SHHUVDQGUHJXODWRUVWRIDFLOLWDWH systemic changes in sustainable Sustainability Awareness and ȴQDQFLQJ" Participation How do we engage and orientate internal stakeholders towards sustainable business? +RZGRSDUWQHUZLWKVWDNHKROGHUV WRFRQGXFWRXWUHDFKDZDUHQHVV DQGDGYRFDF\WRDGYDQFHWKH sustainabilty agenda? RELEVANT STRATEGIC THEME Purpose-driven Organisation STAKEHOLDER ENGAGEMENT AND ADVOCACY: PERFORMANCE HIGHLIGHTS 2020 1,223 &Ζ0%LVDQDFWLYHPHPEHURI HPSOR\HHVWUDLQHGEULHIHGRQ 7 1DWLRQDODQGΖQWHUQDWLRQDO:RUNLQJ*URXSV sustainability issues 196 &Ζ0%6XVWDLQDELOLW\&KDPSLRQV 3OHDVHUHIHUWRSDJHRI&Ζ0% V6XVWDLQDELOLW\5HSRUWSDJHIRUPRUHGHWDLOV 190 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Regional Notable Deals REGIONAL DEBT DEALS Axiata SPV5 (Labuan) Limited Malaysia Rail Link Sdn Bhd USD1.0 billion Notes due 2050 Islamic Medium Term Notes Programme of RM9.75 billion in nominal value, guaranteed by the Government of Malaysia Axiata SPV2 Berhad Gamuda Land (T12) Sdn Bhd USD500.0 million Sukuk Wakala due 2030 Islamic Medium Term Notes Programme and Islamic Commercial Papers (“ICP”) Programme with a combined aggregate limit of RM2.0 billion and a sub-limit of RM500.0 million for the ICP Programme, guaranteed by Gamuda Berhad PT Bank Mandiri (Persero) Tbk USD500.0 million Senior Notes due 2025 Sarawak Energy Berhad Issuance of RM1.9 billion in nominal value Islamic Medium Term Notes pursuant to an Islamic Medium Term Notes PT Tower Bersama Infrastructure Tbk Programme of RM15.0 billion in nominal value USD350.0 million Senior Unsecured Notes due 2025 IDR1,500.0 billion Senior Bonds via 3rd Shelf Registration Programme Tranche 4 of IDR7,000.0 billion IDR700.0 billion Senior Bonds via 4th Shelf Registration Top Glove Corporation Bhd Programme Tranche 1 of IDR7,000.0 billion RM1.3 billion Perpetual Sukuk Wakalah IDR750.0 billion Senior Bonds via 4th Shelf Registration Programme Tranche 2 of IDR7,000.0 billion Sime Darby Property Berhad Islamic medium term notes (“Sukuk Musharakah”) issuance of PT Lippo Karawaci Tbk RM800.0 million in nominal value, including an ASEAN USD420.0 million Senior Unsecured Notes due 2025 Sustainability SRI Sukuk Musharakah of RM150.0 million in nominal value, pursuant to a Sukuk Musharakah programme of up to RM4.5 billion in nominal value under the Shariah principle of Musharakah Swirl Assets Berhad Tenaga Nasional Bhd Issuance of medium term notes of RM623.9 million in Islamic Medium Term Notes Programme of up to RM10.0 nominal value, backed by the receivables due from billion in nominal value and ICP Programme of up to RM2.0 Pengurusan Air Selangor Sdn. Bhd. (“Air Selangor”) pursuant billion in nominal value to a share purchase agreement signed between Syarikat Pengeluar Air Selangor Holdings Berhad and Air Selangor CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 191 HIGHLIGHTS AND ACHIEVEMENTS Regional Notable Deals REGIONAL DEBT DEALS (CONTINUED) Tropicana Corporation Berhad PT Permodalan Nasional Madani (Persero) RM589.0 million Senior Sukuk Wakalah IDR250.0 billion Senior Bonds via 3rd Shelf Registration Programme Tranche 3 of IDR6,000.0 billion RM318.0 million Senior Sukuk Wakalah IDR1,733.8 billion Senior Bonds via 3rd Shelf Registration Programme Tranche 4 of IDR6,000.0 billion AEON Credit Service (M) Berhad RM500 million Senior Sukuk Wakalah and RM200 million Subordinated Sukuk Wakalah PT Bank Tabungan Negara (Persero) Tbk IDR1,500.0 billion Senior Bonds via 4th Shelf Registration Programme Tranche 1 of IDR8,000.0 billion Dialog Group Berhad Islamic notes issuance programme of up to an aggregate amount of RM3.0 billion in nominal value for the issuance of PT Federal International Finance Senior Islamic Medium Term Notes and/or Subordinated IDR1,500.0 billion Bonds via 4th Shelf Registration Perpetual Islamic Notes Programme Tranche 2 of IDR15,000.0 billion PT Sinar Mas Agro Resources and Technology Tbk PT Sarana Multigriya Finansial (Persero) IDR775.0 billion Senior Bonds via 2nd Shelf Registration IDR4,001.0 billion Senior Bonds via 5th Shelf Registration Programme Tranche 1 of IDR3,000.0 billion Programme Tranche 3 of IDR19,000.0 billion IDR1,400.0 billion Senior Bonds via 2nd Shelf Registration Programme Tranche 2 of IDR3,000.0 billion PT Astra Sedaya Finance IDR2,183.05 billion Corporate Bonds via 4th Shelf Registration Programme Tranche 4 of IDR8,000.0 billion PT Merdeka Copper Gold Tbk IDR1,400.0 billion Senior Bonds via 1st Shelf Registration IDR1,500.0 billion Corporate Bonds via 5th Shelf Registration Programme Tranche 1 of IDR1,700.0 billion Programme Tranche 1 of IDR10,000.0 billion IDR300.0 billion Senior Bonds via 1st Shelf Registration Programme Tranche 2 of IDR1,700.0 billion PT Jasa Marga (Persero) Tbk IDR2,000.0 billion Senior Bonds via 2nd Shelf Registration PT Bank CIMB Niaga Tbk Programme Tranche 1 of IDR4,500.0 billion IDR1,000.0 billion Mudharabah Sukuk via 1st Shelf Registration Programme Tranche 3 of IDR4,000.0 billion 192 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Regional Notable Deals REGIONAL DEBT DEALS (CONTINUED) PT Polytama Propindo PT Chandra Asri Petrochemical Tbk Issue Size IDR150.4 billion Senior Bonds I and IDR156.5 billion IDR600.0 billion Senior Bonds via 3rd Shelf Registration Ijarah Sukuk I Programme Tranche 2 of IDR5,000.0 billion Lembaga Pembiayaan Ekspor Indonesia IDR100.0 billion Mudharabah Sukuk via 2nd Shelf PT Bank Pembangunan Daerah Jawa Barat Dan Registration Programme Tranche 1 of IDR2,000.0 Banten Tbk billion IDR500.0 billion Subordinated Bonds via 2nd Shelf Registration Programme Tranche 1 of IDR1,000.0 billion Housing & Development Board IDR500.0 billion Subordinated Bonds via 2nd Shelf SGD800.0 million Fixed Rate Notes due 2025 Registration Programme Tranche 2 of IDR1,000.0 billion China Construction Bank Corporation Singapore Branch SGD500.0 million Senior Unsecured Fixed Rate Notes due 2023 PT Tunas Baru Lampung Tbk IDR500.0 billion Senior Bonds via 1st Shelf Registration Programme Tranche 2 of IDR1,500.0 billion True Corporation Public Company Limited THB23,441.1 million Senior Unsecured Debenture PT Bank QNB Indonesia Tbk THB4,800.0 million Senior Unsecured Debenture IDR448.0 billion Senior Bonds via 1st Shelf Registration Programme Tranche 3 of IDR1,000.0 billion True Move H Universal Communication Co., Ltd. THB9,800.0 million Senior Unsecured Debenture PT PP Properti Tbk IDR416.5 billion Senior Bonds via 2nd Shelf Registration Programme Tranche 1 of IDR2,400.0 billion TPI Polene PCL. THB7,000.0 million Senior Unsecured Debenture PT Indomobil Finance Indonesia THB4.4 billion Senior Unsecured Debenture IDR336.0 billion Senior Bonds via 4th Shelf Registration Programme Tranche 1 of IDR4,000.0 billion THB4,200.0 million Senior Unsecured Debenture CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 193 HIGHLIGHTS AND ACHIEVEMENTS Regional Notable Deals REGIONAL DEBT DEALS (CONTINUED) Muangthai Capital PCL. SC Asset Corporation PCL. THB5,000.0 million Senior Unsecured Debenture THB1,200 million Senior Unsecured Debenture THB4,000.0 million Senior Unsecured Debenture THB500 million Senior Unsecured Debenture THB250 million Senior Unsecured Debenture Siamgas & Petrochemicals PCL. THB4.0 billion Senior Unsecured Debenture Ananda Development PCL. THB1,169.9 million Senior Unsecured Debenture THB1,000 million Perpetual Debenture Sansiri PCL. THB4,000.0 million Senior Unsecured Debenture THB3,000 million Perpetual Debenture PTG Energy PCL. THB1,000 million Senior Unsecured Debenture Toyota Leasing (Thailand) Co., Ltd. THB3,000 million Senior Secured Debenture Origin Property PCL. THB990.6 million Senior Unsecured Debenture Sena Development PCL. THB1.7 billion Senior Secured Bond THB1,110.4 million Senior Unsecured Debenture Lalin Property PCL. THB525.0 million Senior Unsecured Debenture Rojana Industrial Park PCL. THB1,600 million Senior Unsecured Debenture Krungthai Car Rent and Lease PCL. THB100.0 million Senior Unsecured Debenture Noble Development PCL. THB1,250 million Senior Unsecured Debenture THB482.5 million Senior Unsecured Debenture 194 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Regional Notable Deals REGIONAL EQUITY DEALS Mr D.I.Y. Group (M) Berhad Mr D.I.Y. Group (M) Berhad’s RM1.5 billion (USD363.2 million) Hibiscus Petroleum Berhad ΖQLWLDO3XEOLF2HULQJLQFRQMXQFWLRQZLWKWKHOLVWLQJRQWKH Hibiscus Petroleum Berhad’s RM203.6 million (USD49.5 Main Market of Bursa Malaysia Securities Berhad million) Islamic Convertible Redeemable Preference Shares (CRPS) Placement Khazanah Nasional Berhad Khazanah Nasional Berhad’s RM1.0 billion (USD231.2 million) Tenaga Nasional Berhad Block Trade Khazanah Nasional Berhad’s RM735.7 million (USD169.1 million) Telekom Malaysia Berhad Block Trade InNature Berhad 50PLOOLRQΖQLWLDO3XEOLF2HULQJRIRUGLQDU\VKDUHVRI InNature Berhad in conjunction with the listing on the Main Market of Bursa Malaysia Securities Berhad Unisem (M) Berhad Unisem (M) Berhad’s RM284.0 million (USD69.4 million) Primary Placement Axiata Group Berhad The listing of Robi Axiata Limited, a subsidiary of Axiata Group Berhad on the Dhaka Stock Exchange Limited and Chittagong Stock Exchange Limited in Bangladesh ΖFRQ2VKRUH%HUKDG RM247.2 million share consolidation and Rights Issue with new free detachable Warrants on the Main Market of Bursa Malaysia Securities Berhad Elite Commercial REIT Elite Commercial REIT’s GBP135.4 million (USD173.8 million) IPO on Mainboard of Singapore Stock Exchange MY E.G. Services Berhad MY E.G. Services Berhad’s RM216.0 million (USD53.1 million) Primary Placement Credit Bureau Asia Limited Credit Bureau Asia’s SGD53.9 million (USD40.5 million) Initial 3XEOLF2HULQJRQ0DLQERDUGRI6LQJDSRUH([FKDQJH REGIONAL ADVISORY DEALS CJ Century Logistics Holdings Berhad/ Telenor South East Asia Investment Pte Ltd CJ Logistics Asia Pte Ltd Divestment of Valyou Sdn Bhd, a wholly-owned subsidiary of RM100.0 million acquisition of CJ Korea Express Malaysia Telenor South East Asia Investment Pte Ltd to Merchantrade Sdn Bhd by CJ Century Logistics Holdings Berhad Asia Sdn Bhd CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 195 HIGHLIGHTS AND ACHIEVEMENTS Notable Achievements GRADUATES’ CHOICE AWARDS THE ASSET TRIPLE A THE ASSET TRIPLE A : PRIVATE SUSTAINABLE CAPITAL CAPITAL AWARDS FOR PRIVATE • Top 10 Most Attractive Employers MARKETS COUNTRY & BANKS, WEALTH & • Top 3 Most Preferred in Banking REGIONAL AWARDS 2020 INVESTMENT BANK ADVISERS, SOLUTIONS AND INDEX PROVIDERS 2020 • Best FIG Bond – Indonesia ALPHA SOUTHEAST ASIA 14TH • Best Corporate Bond – Indonesia DEAL AND SOLUTION AWARDS • Best Bank for Investment Solutions • Best Syndicated Loan – Indonesia 2020 • Best Primary Placement – Malaysia – Malaysia • Best Bank for Investment Solutions • Best Block Trade – Malaysia • Best Bond House in Southeast Asia – Thailand • Best Investment Grade Bond • Best Ringgit Sukuk House of the Year • Best Bank for Investment Solutions, – Malaysia • Best Social Impact Islamic Finance Equity – Thailand • Best Bank Capital Bond – Malaysia House in Asia • Best Bank for Investment Solutions, • Best Sri Sukuk Rates – Malaysia • Best Islamic & Conventional Finance IFN DEALS OF THE YEAR 2020 • Best Bank for Investment Solutions, Deal of the Year Rates – Indonesia • Best Islamic Subordinate Perpetual • IFN Real Estate Deal of the Year 2020 • Best Bank for Investment Solutions, Bond Rates – Thailand • Most Innovative Islamic Finance Deal • Best Bank for Investment Solutions, IFN AWARDS 2020 of the Year Credit – Malaysia • Best Corporate Sukuk • Best Bank for Investment Solutions, • IFN Best Islamic Bank in Malaysia • Best Local Currency Sukuk Credit – Thailand 2020 • Best Islamic Finance Project Finance • Best Bank for Investment Solutions, • IFN Best Islamic Investment Bank Deal of the Year FX – Malaysia 2020 • Best Equity Deal of the Year, Malaysia • Best Bank for Investment Solutions, • Best Local Currency Bond Deal of the FX – Indonesia Year, Thailand • Best Bank for Investment Solutions, GLOBAL RETAIL BANKING • Best Bond Deal for Retail Investors in Commodities – Malaysia INNOVATION AWARDS 2020 Southeast Asia • Best Structured Investment and • Outstanding Digital Innovation in SME Financing Solutions, Credit – Thailand Banking ASIAMONEY BEST BANK AWARDS • Best Structured Investment and • Best Digital Sales Initiative FOR MALAYSIA 2020 Financing Solutions, Rates – Thailand • Best Structured Investment and • Best Corporate & Investment Bank Financing Solutions, Fund – Thailand THE ASSET TRIPLE A PRIVATE CAPITAL AWARDS 2020 THE ASSET TRIPLE A ISLAMIC THE BANKER GLOBAL • Best Bank for Investment Solutions FINANCE AWARDS 2020 TRANSACTION BANKING AWARDS – Malaysia 2020 • Best Bank for Investment Solutions, • Best Quasi-Sovereign Sukuk – Rates – Malaysia Malaysia • Cash Management • Best Bank for Investment Solutions, Credit – Malaysia • Best Bank for Investment Solutions, GLOBAL BUSINESS OUTLOOK THE ASSET TRIPLE A FX – Malaysia (GBO) AWARDS 2020 TREASURY, TRADE, SSC AND • Best Bank for Investment Solutions, RISK MANAGEMENT AWARDS Commodities – Malaysia • Best SME Bank – Malaysia 2020 • Best Digital Transformation Initiative for SME’s – Banking – Malaysia • Best in Treasury and Working Capital ALPHA SOUTHEAST ASIA • Most Innovative Credit Card – CIMB – SMEs – Malaysia TRANSACTIONAL BANKING Platinum Business Card – Malaysia • Best Service Provider – Trade AWARDS 2020 Finance – Malaysia • Best Cash Management Solution in Malaysia • Best Trade Finance Solution in Malaysia 196 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Notable Achievements CORPORATE TREASURER AWARDS THE ASSET TRIPLE A ASIA 2020 INFRASTRUCTURE AWARDS 2020 • Best Cash Management House in Malaysia • Oil and Gas Deal of the Year – • Best Transaction Bank in Malaysia Regional • Petrochemical Deal of the Year – Regional ASIAMONEY ASIA PRIVATE • Oil and Gas of the Year – Indonesia BANKING AWARDS 2020 • Power Deal of the Year – Indonesia • Petrochemical Deal of the Year • Best for Investment Research – Malaysia – Malaysia • Telecom Deal of the Year – Malaysia • Best Domestic Private Bank • Water Deal of the Year – Malaysia • Best for Wealth Transfer/Succession • Power Deal of the Year – Thailand Planning 2019 LIFE@WORK AWARDS SATISFACTION, LOYALTY & ENGAGEMENT AWARDS 2020 • Best Malaysian Organisation • Outstanding Practice – Talent • Best Bank in Mortgage Category – CIMB Development Initiative Niaga • CEO Champion – Malaysian Organisation INDONESIA GREEN AWARDS GLOBALCAPITAL ASIA 2020 CAPITAL MARKET AWARDS 2019 • Winner, Developing Biodiversity Category – CIMB Niaga • Best Local Currency Bond House • Best Asian Investment Bank TOP DIGITAL COMPANY AWARD 2020 BRANDING ASSOCIATION OF MALAYSIA • Best in Building Digital Transformation – CIMB Niaga • Most Outstanding Malaysian Brand 2019 – Banking GLOBAL FINANCE PRIVATE BANK AWARDS 2020 • Best Private Bank in Malaysia ALPHA SEA BEST FINANCIAL INSTITUTION AWARDS 2020 • Best Bond House in Malaysia • Best Equity House in Malaysia • Best Investment Bank in Malaysia • Best Cash Management Bank in Malaysia • Best Bank for Sustainable Financing in Malaysia CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 197 HIGHLIGHTS AND ACHIEVEMENTS Corporate Event Highlights 13 March 2020, Menara CIMB Inaugural Visit by the Minister of Finance, Malaysia YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, and Farewell Town Hall for our former GCEO 4 May 2020, Hospital Kuala Lumpur 9 April 2020, PT Bank CIMB Niaga Tbk – CIMB & Project Setia, PPE Handover CIMB Niaga Annual General Meeting of PPE Handover to Hospital Kuala Lumpur; a CIMB & Shareholders 2020 Setia collaboration. 3,000 PPE were delivered to over 10 government hospitals and clinics nationwide. 14-17 May 2020, CIMB Facebook Live CIMB Bazar Siberturahim. Bringing the Raya 4, 11 & 18 May 2020, HKL, IPK, Hosp. Putrajaya, Hosp. Shopping Experience online for customers and local Selayang, Hosp. Serdang businesses. CIMB Foundation Bubur Lambuk Distribution to Frontliners 198 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Corporate Event Highlights 10 June 2020, Menara CIMB GCEO Dato’ Abdul Rahman Ahmad’s First Day in CIMB 30 June 2020, Menara CIMB AGM 2020 (Live Virtual Event) 7 September – 31 October 2020, Virtual Platform The Cooler Earth Sustainability Summit 3 October – 15 November 2020, 4-10 September 2020, The Boulevard, bSDUWLFLSDWLQJ Publika Shopping Gallery local Art Galleries The Launch of CIMB X Poptron #ExtraNotOrdinary Bazaar CIMB Artober 22-25 October 2020, Impact Arena Muang Thong Thani, Thailand MONEY EXPO 2020 Bangkok 17 November 2020, Virtual Platform 13 December 2020, Pattana CIMB Singapore x Warees Halal Limited Sports Resort, Chonburi Strategic Partnership Signing Ceremony Thailand CIMB Thai Triathlon, Forward ASEAN Pride 2020 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 199 HIGHLIGHTS AND ACHIEVEMENTS Media Highlights The Edge 19 October Sinar Harian 20 March CIMB Group CEO Tengku Dato' Sri IPO Prospectus Launch for Mr D.I.Y. Zafrul Is Malaysia's New Minister Of Finance RinggitPlus 10 March New Straits Times 10 October The Star 19 March Banks remain committed to helping customers, CIMB's Abdul Rahman says The Edge Financial Daily 6 January Fintech News Malaysia 21 September The Star 30 May The Star 23 November COVID-19 pandemic shows the need for SMEs to embark on digital transformation New Straits Times 14 May The Edge 6 February The Sun 21 August The Edge 21 July Borneo Post (Kuching) 18 September Berita Harian 27 June CIMB Philippines receives 10th award as PH Best New Digital Bank The Star 28 February The Sun 17 April Manila Times 8 June 200 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Media Highlights &Ζ0%%DQNRHUVWRPRQWKV moratorium extension to the unemployed The Edge Markets 7 November New Straits Times 7 July China Press 4 August Malaysia's CIMB commits to The Star 29 August WOHZLV\[JVHSÄUHUJPUNI` Reuters 8 December The Sun 23 December The Star 23 May Harian Metro 19 September CIMB Islamic contributes RM1 mil for Digital payments Setiu Wetlands, Terengganu project give users more bang for their ringgit Value-added Koran Sindo Sulsel 27 August features, hygiene New Straits Times 17 October concerns and business &Ζ0%7KDLLVFRQȴGHQWRIVWURQJ$6($1HFRQRP\ initiatives are accelerating the shift to a cashless society The Edge 17 August Borneo Post (Kuching) 9 April CIMB Foundation gives alms to the elderly and orphans Bangkok Today 5 August The Business Times 2 April CIMB’s The Cooler Earth Summit 2020 Tuoi Tre News 25 November Sin Chew Daily 22 May The Edge 14 September Khmer Times 14 January Utusan Sarawak 1 September SoyaCincau 26 June CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 201 STAKEHOLDER INFORMATION Shareholders’ Statistics as at 1 March 2021 Issued and Paid-up Share Capital : RM25,843,808,251 comprising 9,922,966,350 ordinary shares Class of Shares : Ordinary shares Voting Rights : One vote per ordinary share ANALYSIS OF SHAREHOLDINGS (AS PER THE RECORD OF DEPOSITORS) No. of % of No. of % of Size of Shareholdings Shareholders Shareholders Shares^ Issued Shares 1 – 99 3,248 3.32 111,167 0.00 100 – 1,000 34,988 35.72 18,258,666 0.18 1,001 – 10,000 45,631 46.59 179,032,331 1.80 10,001 – 100,000 12,257 12.51 333,108,801 3.36 100,001 – 496,148,316(*) 1,825 1.86 4,628,795,046 46.65 496,148,317 and above(**) 3 0.00 4,763,660,339 48.01 Director holding 0 0.00 0 0.00 Total 97,952 100.00 9,922,966,350 100.00 Notes: * Less than 5% of issued holdings. ** 5% and above of issued holdings. ^ Excludes 4,908 shares retained as treasury shares as at 1 March 2021. ANALYSIS OF EQUITY STRUCTURE (AS PER THE RECORD OF DEPOSITORS) No. of Holders No. of Shares % Malaysian Malaysian Malaysian Non- Category of Non- Non- Bumi- Bumi- Shareholders Bumiputra BumiputraForeign Bumiputra Bumiputra Foreign putra putra Foreign 1) Individual 8,578 65,140 1,062 26,746,728 473,465,409 17,026,287 0.27 4.77 0.17 2) Body Corporate A) Banks/Finance Companies 77 5 0 2,005,719,886 789,932 0 20.21 0.01 0.00 B) Investments Trusts/ Foundation/ Charities 0 7 0 0 599,620 0 0.00 0.01 0.00 C) Other Types of Companies 74 662 31 2,681,991,649 83,944,152 39,456,036 27.03 0.84 0.40 3) Government Agencies/Institutions 5 0 0 29,821,091 0 0 0.30 0.00 0.00 4) Nominees 14,347 6,430 1,534 276,098,710 2,295,995,761 1,991,311,089 2.78 23.14 20.07 5) Trustee0000000.000.000.00 6) Others 0 0 0 0 0 0 0.00 0.00 0.00 23,081 72,244 2,627 5,020,378,064 2,854,794,874 2,047,793,412 50.59 28.77 20.64 Grand Total 97,952 9,922,966,350 100.00 202 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Shareholders’ Statistics as at 1 March 2021 DIRECTORS’ SHAREHOLDINGS (AS PER THE REGISTER OF DIRECTORS’ SHAREHOLDINGS) No. of Shares Held Direct Interest %*¹ Deemed Interest %*¹ Dato’ Lee Kok Kwan 1,205,072 0.01 88,648 –*² Didi Syafruddin Yahya – – 45,262 –*² Notes: *¹ Excludes 4,908 shares retained as treasury shares as at 1 March 2021. *² Less than 0.01%. SUBSTANTIAL SHAREHOLDERS (AS PER THE REGISTER OF SUBSTANTIAL SHAREHOLDINGS) No. of Shares Held Name of Substantial Shareholders Direct %*¹ Indirect %*¹ Khazanah Nasional Berhad 2,700,806,354 27.22 – – Employees Provident Fund 1,592,033,641*² 16.04*² – – Kumpulan Wang Persaraan (Diperbadankan) 646,884,641 6.52 – – Notes: *¹ Excludes 4,908 shares retained as treasury shares as at 1 March 2021. *² Includes shares held through nominees. 30 LARGEST SHAREHOLDERS (AS PER REGISTER OF MEMBERS AND RECORDS OF DEPOSITORS) % of No. of Issued Name of Shareholders Shares Held Capital*¹ 1. Khazanah Nasional Berhad 2,700,806,354 27.22 2. Citigroup Nominees (Tempatan) Sdn Bhd 1,440,359,584 14.52 Employees Provident Fund Board 3. Kumpulan Wang Persaraan (Diperbadankan) 646,884,641 6.52 4. Amanahraya Trustees Berhad 483,995,262 4.88 Amanah Saham Bumiputera 5. Amanahraya Trustees Berhad 232,711,556 2.35 Amanah Saham Malaysia 2 – Wawasan 6. Amanahraya Trustees Berhad 174,825,338 1.76 Amanah Saham Malaysia 7. Citigroup Nominees (Tempatan) Sdn Bhd 114,737,761 1.16 Exempt An For AIA Bhd 8. Cartaban Nominees (Asing) Sdn Bhd 114,294,712 1.15 Exempt An For State Street Bank & Trust Company (West CLT OD67) 9. Citigroup Nominees (Tempatan) Sdn Bhd 111,573,4 45 1.12 Great Eastern Life Assurance (Malaysia) Berhad (PAR 1) 10. Cartaban Nominees (Tempatan) Sdn Bhd 107,666,674 1.09 PAMB For Prulink Equity Fund CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 203 STAKEHOLDER INFORMATION Shareholders’ Statistics as at 1 March 2021 % of No. of Issued Name of Shareholders Shares Held Capital*¹ 11. Amanahraya Trustees Berhad 107,489,197 1.08 Amanah Saham Bumiputera 2 12. HSBC Nominees (Asing) Sdn Bhd 91,301,608 0.92 JPMCB NA For Vanguard Emerging Markets Stock Index Fund 13. HSBC Nominees (Asing) Sdn Bhd 90,495,923 0.91 JPMCB NA For Vanguard Total International Stock Index Fund 14. Amanahraya Trustees Berhad 79,141,233 0.80 Amanah Saham Malaysia 3 15. Cartaban Nominees (Asing) Sdn Bhd 67,004,670 0.68 GIC Private Limited For Government Of Singapore (C) 16. Citigroup Nominees (Tempatan) Sdn Bhd 59,655,951 0.60 Employees Provident Fund Board (Nomura) 17. HSBC Nominees (Asing) Sdn Bhd 55,047,650 0.55 HSBC BK Plc For The Prudential Assurance Company Limited 18. Permodalan Nasional Berhad 54,280,113 0.55 19. Citigroup Nominees (Asing) Sdn Bhd 48,346,300 0.49 Exempt An For Citibank New York (Norges Bank 14) 20. Citigroup Nominees (Tempatan) Sdn Bhd 45,517,595 0.46 Great Eastern Life Assurance (Malaysia) Berhad (PAR 3) 21. DB (Malaysia) Nominee (Asing) Sdn Bhd 42,445,603 0.43 BNYM SA/NV For People's Bank Of China (SICL Asia EM) 22. Citigroup Nominees (Asing) Sdn Bhd 41,549,700 0.42 CBHK For Fubon Life Insurance Co., Ltd (CTL) 23. Citigroup Nominees (Asing) Sdn Bhd 38,985,839 0.39 CBNY For Norges Bank (FI 17) 24. Pertubuhan Keselamatan Sosial 38,820,944 0.39 25. Maybank Nominees (Tempatan) Sdn Bhd 36,738,247 0.37 Maybank Trustees Berhad For Public Regular Savings Fund (N14011940100) 26. Citigroup Nominees (Asing) Sdn Bhd 34,579,182 0.35 CBNY For Dimensional Emerging Markets Value Fund 27. Cartaban Nominees (Asing) Sdn Bhd 32,487,549 0.33 SSBT Fund SWV4 For California Public Employees Retirement System 28. HSBC Nominees (Asing) Sdn Bhd 32,438,235 0.33 -30&%1$)RU%ODFNURFNΖQVWLWXWLRQDO7UXVW&RPSDQ\1$ΖQYHVWPHQW)XQGV)RU(PSOR\HH%HQHȴW Trusts 29. Lembaga Tabung Angkatan Tentera 28,492,100 0.29 30. HSBC Nominees (Asing) Sdn Bhd 26,573,400 0.27 JPMCB NA For Vanguard Fiduciary Trust Company Institutional Total International Stock Market Index Trust II Total 7,179,246,366 72.38 Note: *¹ Excludes 4,908 shares retained as treasury shares as at 1 March 2021. 204 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Internal Policies, Procedures and Guidelines Policies are formulated to govern standard day-to-day operations and to manage the expected risks of CIMB Group. As such, the Group’s policies are developed from the baseline of current regulatory requirements and industry best practices to govern the business and operations of the Group. The policies of our business units have been documented, endorsed by the Group Risk & Compliance Committee (GRCC) or its sub-committee(s) and approved by our Board or Board Risk & Compliance Committee for implementation across our Group, where relevant. Operational procedures are approved by Group Policy & Procedure Oversight Committee (GPOC) for implementation. Approved policies and procedures are timely disseminated to stakeholders. Reviews and updates are performed regularly on approved policies, procedures and guidelines. This is done with the intent to ensure continuous improvements in operational HɝFLHQF\ZKLOHWDNLQJLQWRFRQVLGHUDWLRQWKHFKDQJLQJLQGXVWU\SURȴOHRQUHJXODWRU\UHTXLUHPHQWVULVNVDQGLQWHUQDOFRQWUROPHDVXUHV for mitigation, and new products and services. Listed below are some of the Group’s key policies and procedures: No. Title Description 1. a) Group Administration & Property These documents relate to the administrative operations of the Group and covers Management Malaysia Policy the operational policies governing procurement, property, maintenance services, b) Group Administration & Property security services, logistics, telecommunications, insurance and occupational Management Malaysia Procedure safety and health administration. 2. a) Accounting Policy 7KHVHGRFXPHQWVGHȴQHWKHDFFRXQWLQJFRQFHSWVDQGSROLFLHVWKDWDUHFRQVLVWHQW b) Group Finance – Business Finance with Malaysia Financial Reporting Standards and Generally Accepted Accounting Advisory & Financial Reporting Practices. Standards Procedures c) Accounting Procedure – Hedge Accounting 3. a) Group Outsourcing Policy This document sets out how outsourcing arrangements in the Group is managed b) Group Outsourcing Procedure across the lifecycle of the arrangement to ensure proper controls in place in managing outsourcing risk. 4. a) Business Continuity Management 7KHVHGRFXPHQWVGHȴQHWKHPLQLPXP%XVLQHVV&RQWLQXLW\0DQDJHPHQW %&0 Policy requirements for developing, implementing and testing BCM within the CIMB b) Business Continuity Management Group to ensure that BCM arrangements continue to meet the needs of CIMB Procedure Group in the event of a crisis. 5. Group Corporate Communications This document sets out the framework for the dissemination of information by the Group to its shareholders, media and other stakeholders. Information given by the Group to the general public shall always be timely, accurate, relevant and reliable so as to enable a properly informed view of how the Group is governed, its ȴQDQFLDODQGRSHUDWLRQDOSHUIRUPDQFHVIXWXUHSURVSHFWVDQGNH\FRUSRUDWH developments. 6. Group Crisis Communications &ULVHVDHFWRUJDQLVDWLRQVLQYDU\LQJGHJUHHVDQGIUHTXHQF\7KHFKDOOHQJHIRU Guidelines WKHDHFWHGRUJDQLVDWLRQLVWRPDQDJHWKHVHFULVHVZHOOLQRUGHUWRJHWEDFNWRWKH business of running the organisation as quickly as possible. CIMB Group has a &ULVLV&RPPXQLFDWLRQV*XLGHWRDLGHHFWLYHUHVSRQVHDQGFRPPXQLFDWLRQZLWK DHFWHGVWDNHKROGHUVLQDWLPHO\DQGFRQVLVWHQWPDQQHUΖWGHȴQHVFULVLVFULVLV FODVVLȴFDWLRQHVFDODWLRQSURFHGXUHVDQGWKHHVWDEOLVKPHQWRIDFULVLV communication management team and centre. 7. a) Group Data Management Policy These policies and procedures enable a structured approach to the management Manual of data and dissemination of information throughout CIMB Group. The manual b) Group Data Management Procedure spells out the data governance and management information system frameworks. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 205 STAKEHOLDER INFORMATION Internal Policies, Procedures and Guidelines No. Title Description 8. a) Group Anti-Money Laundering/ &Ζ0%*URXSSODFHVLPSRUWDQFHRQDQGLVFRPPLWWHGWRHVWDEOLVKLQJDQHHFWLYH Counter Financing of Terrorism internal control system for AML/CFT in compliance with all related laws, Policy regulations, guidelines and industry best practices. The Group AML/CFT policies b) Group Anti-Money Laundering/ encompasses all reporting institutions of CIMB Group, to ensure consistency in Counter-Financing of Terrorism managing the AML/CFT compliance. The manual governs the appointment of Procedure DQWLPRQH\ODXQGHULQJFRPSOLDQFHRɝFHUVWKHPRQLWRULQJDQGUHSRUWLQJRI suspicious transactions, sanction management, record retention, employee training, risk and status reporting to Board and Senior Management and an independent audit of the internal AML/CFT measures. 9. Recruitment Policy This document sets out the minimum requirements to ensure that a standard and professional approach is adopted to assist the Group in talent acquisition through proper sourcing, selection and appointment, from the date the position becomes DYDLODEOHRUYDFDQWWRWKHGDWHWKHSRVLWLRQLVȴOOHG 10. Risk Management of Travel Policy 7KLVGRFXPHQWDGGUHVVHVȵLJKWWUDYHOIRUVWDLQRUGHUWRPLQLPLVHWKHSRWHQWLDO risks to CIMB Group in terms of continuity of leadership and operations. The SROLFLHVFRYHUVHQLRUPDQDJHPHQWVWDDWGHSDUWPHQWOHYHOVDQGVWDLQJHQHUDO 11. Policy & Procedure on Fit and Proper This document sets out the procedures on Fit and Proper assessment for key Criteria For Key Responsible Persons responsible persons who are accountable or responsible for the management and oversight of the entities in the Group regulated by Financial Services Act 2013, Islamic Financial Services Act 2013 and Insurance Act 1996. These comprise 'LUHFWRUVPHPEHUVRIWKH6KDULDK&RPPLWWHH&KLHI([HFXWLYH2ɝFHUV([HFXWLYH Directors, any person performing a senior management function who has the SULPDU\RUVLJQLȴFDQWUHVSRQVLELOLW\IRUWKHPDQDJHPHQWDQGSHUIRUPDQFHRI VLJQLȴFDQWEXVLQHVVDFWLYLWLHV DQGDQ\SHUVRQZKRKDVSULPDU\RUVLJQLȴFDQW responsibility of key control functions. 12. 6WD5HMXYHQDWLRQ3URJUDPPH 7KLVGRFXPHQWVHWVRXWWKHUXOHVDQGJXLGHOLQHVWRDOORZVWDWRWDNHDEUHDNIURP work without any loss in service or disadvantage in career progression. 13. +53ROLF\RQ6WD9ROXQWHHULVP 7KLVGRFXPHQWVHWVRXWWKHUXOHVDQGJXLGHOLQHVWRHQFRXUDJHVWDWRYROXQWHHU for CSR activities funded by CIMB Foundation. The policies provide recognition of WLPHVSHQWE\VWDRQ&65DFWLYLWLHV7KLVLVSDUWRI&Ζ0%*URXSȇVHRUWWRHQKDQFH FRPPXQLW\SURMHFWVE\FRQWULEXWLQJH[SHUWLVHHQHUJ\HQWKXVLDVPDQGHRUWVRI VWD 14. 6WD:HOIDUH)XQG 7KH6WD:HOIDUH)XQGLVHVWDEOLVKHGWRSURYLGHȴQDQFLDODVVLVWDQFHWRRXUVWD and their family members to cope with high medical expenses, as a result of being involved in an accident or due to serious illness. The fund is also used to assist in ORVVGDPDJHRISURSHUW\GXHWRQDWXUDOGLVDVWHUVHJȴUHȵRRG 15. Sexual Harassment Policy & Guidelines These documents set out the policies and guidelines to maintain a working environment which is free of sexual coercion and annoyance. CIMB Group is committed to ensure that all employees are protected from harassment of any kind and in particular from sexual harassment. The policy covers all CIMB Group employees including contract and temporary employees. 16. Whistle Blowing Policy This document is in place to ensure CIMB Group has a disciplined and professional workforce. Under this policy, employees are required to promptly report incident of wrongdoings, malpractices or irregularities at their workplace to the 0DQDJHPHQWIRULPPHGLDWHUHFWLȴFDWLRQDQGDFWLRQDQGWKH0DQDJHPHQWLV FRPPLWWHGWRHQVXUHVWULFWFRQȴGHQWLDOLW\DQGZLOOQRWRQO\SURWHFWWKHLGHQWLW\RI the complainants and will also protect the complainant from any harassment and victimisation at work due to the disclosure. 206 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Internal Policies, Procedures and Guidelines No. Title Description 17. Anti Bribery and Corruption Policy This document sets out policy matters relating to the prevention of bribery and corruption, and sets out the responsibilities of Group employees and associated persons working for and on behalf of the Group, in observing and upholding the Group’s position on anti-bribery and corruption. 18. Global Employee Mobility Policy 7KLVGRFXPHQWVHWVRXWWKHWHUPVEHQHȴWVDQGJXLGHOLQHVIRU&Ζ0%HPSOR\HHV GHSOR\HGRQUHJLRQDOVHFRQGPHQWV7KLVLVSDUWRI&Ζ0%*URXSȇVHRUWWR encourage movement of talent across borders for business and/or talent development purposes. 19. D *URXS&RQȵLFW0DQDJHPHQW These documents consolidated the Group Chinese Walls Policy and Procedures Chinese Wall Policy DQGWKH*URXS&RQȵLFW0DQDJHPHQW3ROLF\DQG3URFHGXUHV E *URXS&RQȵLFW0DQDJHPHQW The revised policy is to prescribe standards, outline the requirements and provide Chinese Wall Procedure guidance to ensure processes and controls are in place in order to identify and PDQDJHDQ\FRQȵLFWRUZKHQSRWHQWLDOFRQȵLFWRILQWHUHVWVLWXDWLRQDULVHV The Personal Account Dealing (PAD) sections that were previously provided by the *URXS&RQȵLFW0DQDJHPHQW3ROLF\DQG3URFHGXUHVUHPDLQYDOLGXQWLOWKHQHZ standalone PAD Policy and Procedures is approved. 20. a) Shariah Advisory and Board Shariah 7KHVHGRFXPHQWVGHȴQHDQGH[SODLQWKHRYHUDOOIUDPHZRUNDSSOLFDEOHWRWKH Committee Secretariat Policy Islamic businesses of CIMB Group so that they can be conducted in the most b) Shariah Advisory and Board Shariah HHFWLYHPDQQHUDQGLQOLQHZLWKWKH6KDULDKDQGWKHUHJXODWLRQVRI%DQN1HJDUD Committee Secretariat Procedure Malaysia (BNM), Securities Commission (SC), the rulings of both Shariah Advisory Councils of BNM and SC (SAC) and the rulings of Group Shariah Committee. Wherever appropriate, reference will also be made to the Shariah rulings issued E\WKH6KDULDKDXWKRULWLHVLQRWKHUMXULVGLFWLRQVVXFKDV'HZDQ6KDULDK1DVLRQDO 0DMHOLV8ODPDΖQGRQHVLD '6108Ζ WKH6KDULDK&RPPLWWHHDW$XWKRULWL0RQHWDUL %UXQHL'DUXVVDODPHWFEDVHGRQWKHMXULVGLFWLRQDODQGORFDOLW\UHTXLUHPHQWV applicable to regional Islamic businesses of CIMB Group. 21. a) Group T&M – General Policy 7KHVHGRFXPHQWVGHȴQHWKHSROLFLHVDQGSURFHGXUHVRQDFWLYLWLHVFDUULHGRXWE\ b) Group T&M – General Procedure Treasury & Markets department in relation to the Group’s markets, sales and trading businesses in interest rates, credit, foreign exchange, commodities, HTXLWLHVDQGWKHLUGHULYDWLYHVGHEWFDSLWDOPDUNHWVȴ[HGLQFRPHLQYHVWPHQWVDQG treasury and funding operations for the Group. 22. a) Group Fraud Risk Policy These documents outline the commitment of CIMB Group to uphold zero- b) Group Fraud Risk Governance and tolerance approach to fraudulent activities and aim to provide the policies to Procedure develop controls that will aid in the prevention, detection and investigation of fraud against CIMB Group, thereby establishing an integrated and robust Group Fraud Risk Management framework in the organisation. 23. a) IT Infrastructure and Service Policy These documents govern all aspects of information technology within the Group b) Disaster Recover Policy and provides Management with direction and support in accordance with relevant c) IT General Control Policy laws, regulations and business requirements. It is designed to increase adherence d) Information Security Policy to regulatory and internal requirements and ensures consistency in the Group’s (E-Banking, Digital & Internet standards of operations and practices whilst at the same time facilitating sharing Application Policy + Cyber Security of information across the Group and improved controls across the Group when Policy + Information Security Policy) managing information technology. These are global best practices and in e) Group System Development Policy accordance with global standards such as COBIT, ITIL, CMMi, ISO etc. This f) End User Computing Policy document has been standardised across the Region to facilitate a Regional (Desktop & Mobility) Operating Model. g) Bring Your Own Device (BYOD) Policy h) IT Service Management Policy L Ζ73URMHFW0DQDJHPHQW3ROLF\ CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 207 STAKEHOLDER INFORMATION Internal Policies, Procedures and Guidelines No. Title Description 24. a) Technology Risk Management Policy 7KHVHGRFXPHQWVSURYLGHDFRQVLVWHQWDQGXQLȴHGDSSURDFKIRUGHYHORSLQJ b) Technology Risk Management managing and improving technology (including Cyber) risk management within the Procedure Group’s business operations. It is a systematic approach to identify, analyse, evaluate, treat, monitor and communicate technology risks associated with any activity, function or process, thereby protecting the Group by minimising its losses. 25. a) Group Compliance Policies These documents are to establish a compliance programme framework to ensure b) Group Compliance Procedures compliance with relevant laws, regulations, rules, related self-regulatory organisation standards, and codes of conduct applicable to its regulated and licenced activities that govern the overall working of the business and support units within CIMB Group. 26. a) Group Competition Law Policy The Malaysian Competition Act came into force in 2012 and has changed the b) Group Competition Law Procedure EXVLQHVVODQGVFDSHLQ0DOD\VLDDQGDHFWHGWKHZD\DOO0DOD\VLDQEXVLQHVVHV operate. The Competition Law Manual provides an overview of the Competition Act and guides all business units within the Malaysian banking entities of CIMB Group to familiarise and understand the competition laws of Malaysia. It is a general guide on anti-competitive conduct, anti-competitive agreements and compliance reporting of any violations or breach of the Malaysian Competition Act. 27. Group Liquidity Risk Management Policy This is the primary reference document on matters relating to the key principles for the management of liquidity risk across the banking entities within CIMB Group. The policy sets out key approaches and critical areas for an integrated liquidity risk management process including liquidity risk management strategies, Board and management oversight, roles and responsibilities of various divisions/ departments, measurement methodologies, controls, monitoring and reporting SURFHGXUHVWRHQVXUHWKDWWKH*URXSKDVVXɝFLHQWOLTXLGLW\WRPHHWLWVREOLJDWLRQV as they fall due. Group’s contingency funding plan is in place to alert and to enable the PDQDJHPHQWWRDFWHHFWLYHO\DQGHɝFLHQWO\GXULQJDOLTXLGLW\FULVLVDQGXQGHU adverse market conditions. 28. Group Reputation Risk Policy The policy sets out how reputation risk should be managed robustly and proactively by identifying the sources of reputation risk, and to monitor and PDQDJHWKHVHZLWKLQWKHGHȴQHGULVNDSSHWLWH 29. Group Credit Risk Policy (Non-Retail) 7KHVHGRFXPHQWVRXWOLQHWKHEURDGFUHGLWȴQDQFLQJSULQFLSOHVWKDWLVDSSOLFDEOH (with Islamic addendum and Private to CIMB Group’s conventional and Islamic banking businesses, with the purpose of Banking addendum) HVWDEOLVKLQJGLVFLSOLQHIRURUGHUO\H[WHQVLRQRIFUHGLWȴQDQFLQJDFWLYLWLHV 30. a) CIMB Group Personal Data These documents outline the requirements of the Personal Data Protection Act Protection Policy 2010 (PDPA) and is intended to assist CIMB Group in meeting its statutory b) CIMB Group Personal Data responsibilities as detailed in the PDPA. It serves as a general guide to the PDPA Protection Procedure DQG&Ζ0%*URXSȇVUHODWHGSURFHVVHVDQGREOLJDWLRQVWRHQVXUHWKDWDOOVWDZLWKLQ the relevant entities/divisions of the Group in Malaysia is familiar with, understand and comply with the personal data protection laws of Malaysia. 31. a) Group Shariah Review Policy 7KHVHGRFXPHQWVGHȴQHDQGH[SODLQWKHRYHUDOO6KDULDKFRPSOLDQFHUHYLHZ b) Group Shariah Review Procedure IUDPHZRUNDSSOLFDEOHWRWKHΖVODPLFEDQNLQJDQGȴQDQFHEXVLQHVVHVRI&Ζ0% Group to ensure Shariah compliance and handle Shariah non-compliance events. 32. CIMB Group Enterprise-Wide Risk This describes the policies, guidelines & methodologies, and provides guidance to Management (EWRM) Framework the risk management teams towards achieving a common platform and consistent DSSURDFKWRULVNPDQDJHPHQWDFURVVWKH*URXS SURYLGHVDQRYHUYLHZRIHDFK LGHQWLȴHGULVNWRSURPRWHFOHDUDQGDFFRXQWDEOHULVNPDQDJHPHQWSURFHVVHV DQG facilitates readiness and compliance to Bank Negara Malaysia and other regulatory requirements. 208 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Internal Policies, Procedures and Guidelines No. Title Description 33. Group Market Risk Policy This policy prescribes a consistent Group-wide framework to manage market risk across all CIMB entities. It serves as a primary reference document for the Group in establishing a sound operating environment for market risk activities that is consistent with the governance and control standards of the Group Risk Appetite Statement. 34. Group Operational Risk Management This policy sets out the Group's approach in managing operational risk. The policy Policy VHWVRXWWKHWRROVXVHGE\WKHȴUVWOLQHRIGHIHQFHWRLGHQWLI\DVVHVVPDQDJHDQG report their operational risks. 35. Group Interest Rate Risk/Rate of Return This is the primary reference document on the key principles for the management in the Banking Book Policy of interest rate risk in the banking book across the banking entities within CIMB Group. This policy sets out key approaches and critical areas for an integrated management of the interest rate risk in the banking book including Board and management oversight, roles and responsibilities of divisions/departments, measurement methodologies, controls, monitoring and reporting procedures to ensure that the interest rate risk arising from the Group operations is properly LGHQWLȴHGPHDVXUHGPRQLWRUHGDQGPDQDJHGRYHUDUDQJHRISRWHQWLDOFKDQJLQJ interest rate environments including stress conditions. 36. a) CIMB Group Shariah Risk D 7KLVGRFXPHQWDUWLFXODWHVWKHREMHFWLYHVPLVVLRQJXLGLQJSULQFLSOHV Management Policy governance structure as well as methodology and approach adopted by the Group in managing Shariah Non-Compliance (SNC) risk. b) CIMB Group Shariah Risk b) This document provides the explanation/illustration that could facilitate the Management Procedures Group in identifying, assessing, controlling and monitoring SNC risk inherent in its Islamic products and day-to-day activities. 37. Group Credit Risk Policy This Policy sets out the credit risk guiding principles for application across the Group to ensure consistency in its credit risk management activities. 38. Group New Product Approval Procedure This Policy sets out a consistent framework to risk manage the launch of new and YDULHGSURGXFWV1HZSURGXFWVZLOOEHVXEMHFWHGWRDUREXVWLQWHUQDODSSURYDO SURFHVVWKDWUHTXLUHVREMHFWLYHUHYLHZDQGDSSURSULDWHVHQLRUPDQDJHPHQWVLJQ REHIRUHWKH\DUHRHUHGWRFXVWRPHUVRULQYHVWRUV 39. Group Retail Credit/Financing Policy This Policy is an overarching group policy which governs the credit aspects of 5HWDLOOHQGLQJEXVLQHVVΖWDSSOLHVWRPDMRUUHWDLOOHQGLQJSURGXFWVVXFKDV Property Financing, Vehicle Financing, Credit Cards and other revolving credit IDFLOLWLHVVHFXUHGDQGXQVHFXUHGWHUPȴQDQFLQJIRU&Ζ0%UHWDLOEDQNLQJLQDOOWKH countries where CIMB is present. 40. Group Internal Capital Adequacy This Policy describes the policies aspects of ICAAP for all entities within CIMB Assessment Process (ICAAP) Policy *URXSΖWHQVXUHVDGHTXDWHSROLFLHVDUHLQSODFHIRUHɝFLHQWDQGSURSHUFRQGXFW of ICAAP across various divisions within the Group. The Policy also sets out the NH\Ζ&$$3UHTXLUHPHQWVZKLFKLQFOXGHDVVHVVLQJWKHULVNSURȴOHRIWKHEDQN assessing capital adequacy, monitoring compliance with regulatory requirement on capital adequacy, reporting to management and regulator on ICAAP and ICAAP governance and independent review. 41. a) Group Delegated Authority Policy These documents set out the nature and extent of the authority formally b) Group Delegated Authority delegated from the CIMB Group Holdings Berhad’s Board of Directors. The Procedure FRQWHQWVFRYHUERWKȴQDQFLDODSSURYDODQGGRFXPHQWH[HFXWLRQ7KLVSROLF\GRHV not apply to delegated credit and human resource authorities which are covered separately by the respective Divisions’ policies. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 209 STAKEHOLDER INFORMATION Internal Policies, Procedures and Guidelines No. Title Description 42. Group Corporate Assurance Policy This document sets out the policies governing GCAD in order to deliver an HɝFLHQWDQGHHFWLYHLQWHUQDODXGLWVHUYLFH LQFOXGLQJLQYHVWLJDWLRQ LQFRQJUXHQFH with the goals of the CIMB Group of Companies. 43. a) Group Entity Governance Policy These documents are developed to put in place the minimum governance b) Group Entity Governance Procedure requirements for entities across the Group in terms of: ȏ 'LUHFWRUVȇDQG5HVSRQVLEOH2ɝFHUVȇUHTXLUHPHQWVUROHVDQGUHVSRQVLELOLWLHV • Management accountability • Committee structure and oversight • Adherence to Group Policies and Procedures • Inter-entity Service Level Agreements • Adherence to the Group Financial Booking Governance • Financial Delegation of Authority 7KH3ROLF\VHWVRXWKRZVXEVLGLDULHVMRLQWYHQWXUHHQWLWLHVDVVRFLDWHVDQGWKHOLNH are governed by its parent and the apex entity, through (i) how the entities communicate with each other and (ii) the implementation of controls that are dependent on the entities’ categorisation. 44. a) Group Customer Experience These documents set out the standard framework and mechanism when dealing Management – Complaints Handling with customers’ complaints regionally in accordance with regulatory and CIMB Policy Manual Group standards. This is to ensure prompt and constructive responses are given b) Group Customer Experience WR&XVWRPHUZKLFKLQWXUQZLOOEXLOGFXVWRPHUOR\DOW\DQGFRQȴGHQFHWRZDUGV Management – Complaints Handling CIMB Group. Procedure Manual 45. a) CIMB Group Customer Exit Handling These documents provide a common customer exit handling standards which are Policy to be adhered to by all relevant business units and/or departments within CIMB b) CIMB Group Customer Exit Handling *URXSHQWLWLHVLQRUGHUWRHHFWLYHO\VDIHJXDUGWKHUHSXWDWLRQRIWKHIUDQFKLVH Procedure and to mitigate associated negative impacts. 46. a) Group Customer Experience These documents are established in line with BNM’s Market Conduct and Management – Treating Customers Consumer Empowerment standards. It aims to inculcate the Treating Customers Fairly Policy Manual Fairly principles into the corporate culture of CIMB Group. b) Group Customer Experience Management – Treating Customers It states the guidelines to be applied in managing and working towards fair Fairly Procedure Manual treatment of customers and sets out the principles to ensure CIMB Group of employees comply with internal Treating Customers Fairly requirements. 47. a) Disclosure of Customer Information These documents describe the broad principles on disclosure of customer to Law Enforcement Agency Policy documents or information to law enforcement agency(ies) with the purpose to Manual facilitate the investigation or prosecution by law enforcement agency(ies). It is b) Disclosure of Customer Information established to provide a clear guidance on the circumstances that a disclosure of to Law Enforcement Agency customer documents or information is permitted and the method of such Procedure Manual disclosure is to be released to the Law Enforcement Agency. This is to ensure compliance with the guidelines issued by BNM on disclosure of customer information. 48. The Group Sustainability Policy (GSP) This document outlines our overarching principles and approach to sustainability and sustainability risk management. 49. The Group Sustainable Finance Policy 7KLVGRFXPHQWLGHQWLȴHVDVVHVVHVDQGPDQDJHVULVNVDULVLQJIURPȴQDQFLQJRI (GSFP) non-individual clients, especially in sectors that are most vulnerable to environmental and social risks, and those with activities that have high potential adverse impacts on the environment and society. 25 economic activities in six VHFWRUVKDYHEHHQLGHQWLȴHGWRKDYHKLJKHQYLURQPHQWDODQGVRFLDOULVNDQG Sector Guides are in place for coal, palm oil, oil & gas, forestry, and infrastructure, construction & real estate activities. A structured due diligence and escalation is LQSODFHIRUFOLHQWVDQGWUDQVDFWLRQVLGHQWLȴHGWRKDYHKLJK6XVWDLQDELOLW\5LVN 210 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Top 10 Properties of CIMB Group Tenure/ Remaining Age of Net Book Date of Lease Property Value* Year of Date of Location Description/Existing Use Expiry (years) (years) (MYR) Acquisition Revaluation MENARA CIMB VWRUH\RɝFHEXLOGLQJZLWK Freehold n/a 6 670,000,000 2015 Dec-19 1 Jalan Stesen Sentral 2 6 storey of basement car Kuala Lumpur Sentral SDUN%XLOGLQJPDMRULW\ 50470 Kuala Lumpur occupied by CIMB Group of Malaysia companies with partial lower zone leased out to 3rd party. CIMBTHAI VWRUH\RɝFHEXLOGLQJZLWK Freehold n/a 21 270,369,866 1999 Sep-16 Langsuan Building 1 basement level. Premises 44 Langsuan Road, Lumpini occupied by CIMB Thai Bank Patumwan, Bangkok 10330 +HDG2ɝFH%UDQFK &Ζ0% 7KDL%DQNȇVGLYLVLRQRɝFHV and subsidiary company RɝFHV WISMA CIMB VWRUH\RɝFHEXLOGLQJ Freehold n/a 13 119,268,210 2018 Aug-17 No. 11, Jalan 4/83A together with 3 levels of 2-DODQ3DQWDL%DUX basement car park. Building 59200 Kuala Lumpur PDMRULW\RFFXSLHGE\&Ζ0% %DQNZLWK*URXQGȵRRU leased out to 3rd party. Menara Sentraya VWRUH\RɝFHEXLOGLQJ Freehold n/a 4 115,429,371 2015 May-19 Lt. 28, 29, 30, 31, 32 CIMB Niaga owned 5 storey. Jl. Iskandarsyah No. 2, Melawai Blok M Jakarta Selatan Wisma CIMB Niaga VWRUH\RɝFHEXLOGLQJXVHG Leasehold 33070,887,4972001May-19 Jl. Gatot Subroto DV&Ζ0%1LDJD+HDG2ɝFH expiring on No. 2, Bandung DQGVRPHȵRRUVDUHUHQWHG b'HFHPEHU to 3rd party. 2023 -O*DMDK0DGD VWRUH\RɝFHEXLOGLQJXVHG Leasehold 16 30 51,061,669 2006 May-19 Jakarta Pusat DV&Ζ0%1LDJD+HDG2ɝFH expiring on and Branch. b-DQXDU\ 2036 CIMB Niaga Lippo Cikarang VWRUH\RɝFHEXLOGLQJXVHG Leasehold 32849,784,5932012May-19 Jl. MH Thamrin Lippo DV&Ζ0%1LDJD+HDG2ɝFH expiring on Cikarang DQGVRPHȵRRUVDUHUHQWHG b0D\ to 3rd party. Synergy Building VWRUH\RɝFHEXOGLQJ Leasehold 4936,737,3002014May-19 Jl. Sutera Barat Kav 17 CIMB Niaga owned 7 Floors expiring on Alam Sutera, Serpong (GF, UG, 1st, 2nd, 3rd, 5th, b$SULO Tangerang, Banten 6th), used as CIMB Niaga %UDQFKDQG+HDG2ɝFH business support. Puri Indah Financial Tower VWRUH\RɝFHEXLOGLQJ Freehold n/a – 34,071,506 2020 May-19 Lt. 21, 23, 25 & 26 CIMB Niaga owned 4 Floors Jl. Puri Linglar Dalam (21st, 23rd, 25th & 26th), Blok T8, Kembangan used as CIMB Niaga Head Jakarta Barat RɝFH CIMB Niaga Kebon Sirih CIMB Niaga Branch Leasehold 11 36 32,052,171 2003 May-19 Jl. Kebon Sirih 33 premises. expiring on Jakarta Pusat b$XJXVW 2031 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 211 STAKEHOLDER INFORMATION Corporate Information as at 1 March 2021 BOARD OF DIRECTORS GROUP COMPANY SECRETARY Datuk Mohd Nasir Ahmad Didi Syafruddin Yahya Datin Rossaya Mohd Nashir Chairperson/Independent Director Independent Director LS 0007591/PC No. 202008000361 Dato’ Abdul Rahman Ahmad Shulamite N K Khoo *URXS&KLHI([HFXWLYH2ɝFHU Independent Director Executive Director (Appointed on 15 May 2020) AUDIT COMMITTEE (Appointed on 10 June 2020) Serena Tan Mei Shwen Dato’ Mohamed Ross Mohd Din Teoh Su Yin Non-Independent Director Chairman/Independent Director Senior Independent Director (Appointed on 30 September 2020) Datuk Mohd Nasir Ahmad Robert Neil Coombe YB Senator Tengku Datuk Seri Member/Independent Director Independent Director Utama Zafrul Tengku Abdul Aziz *URXS&KLHI([HFXWLYH2ɝFHU Teoh Su Yin Dato’ Mohamed Ross Mohd Din Executive Director Member/Senior Independent Director Independent Director (Resigned on 9 March 2020) Dato’ Lee Kok Kwan Ahmad Zulqarnain Che On Non-Independent Director Non-Independent Director (Resigned on 30 June 2020) Afzal Abdul Rahim Independent Director BOARD RISK AND COMPLIANCE GROUP NOMINATION AND GROUP SHARIAH COMMITTEE COMMITTEE REMUNERATION COMMITTEE Dr. Shafaai Musa Robert Neil Coombe Teoh Su Yin Chairperson/Independent Member Chairman/Independent Director Chairperson/Senior Independent Director Sheikh Professor Dr. Yousef Abdullah Teoh Su Yin Datuk Mohd Nasir Ahmad Al Shubaily Member/Senior Independent Director Member/Independent Director Independent Member Datuk Mohd Nasir Ahmad Dato’ Mohamed Ross Mohd Din Associate Professor Dr Aishath Member/Independent Director Member/Independent Director Muneeza Independent Member Dato’ Mohamed Ross Mohd Din Robert Neil Coombe Member/Independent Director Member/Independent Director Ahmed Baqar Rehman Independent Member Dato’ Lee Kok Kwan Didi Syafruddin Yahya Member/Non-Independent Director Member/Independent Director 'U$KPDG6XȴDQ&KH$EGXOODK Independent Member Didi Syafruddin Yahya Shulamite N K Khoo Member/Independent Director Member/Independent Director Associate Professor Dr Muhamed (Appointed on 27 July 2020) (Appointed on 15 May 2020) Fairooz Abdul Khir Independent Member Serena Tan Mei Shwen Serena Tan Mei Shwen (Appointed on 16 August 2020) Member/Non-Independent Director Member/Non-Independent Director (Appointed on 30 September 2020) (Appointed on 30 September 2020) Sheikh Dr Nedham Yaqoobi Independent Member Ahmad Zulqarnain Che On Ahmad Zulqarnain Che On (Retired on 13 June 2020) Member/Non-Independent Director Member/Non-Independent Director (Resigned on 30 June 2020) (Resigned on 30 June 2020) 212 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Corporate Information REGISTERED OFFICE REGISTRAR AUDITORS Level 13, Menara CIMB Boardroom Share Registrars Sdn Bhd PricewaterhouseCoopers PLT Jalan Stesen Sentral 2 (199601006647 (378993-D)) (LLP0014401-LCA & AF 1146) Kuala Lumpur Sentral 11th Floor Menara Symphony Chartered Accountants 50470 Kuala Lumpur, Malaysia No. 5 Jalan Prof. Khoo Kay Kim Level 10, 1 Sentral, Jalan Rakyat Seksyen 13 Kuala Lumpur Sentral Tel: 603-2261 8888 46200 Petaling Jaya, Selangor PO Box 10192 Fax: 603-2261 0099 Malaysia 50706 Kuala Lumpur, Malaysia Website: www.cimb.com Helpdesk: 603-7890 4700 Tel: 603-2173 1188 Investor Relations: [email protected] Fax: 603-7890 4670 Fax: 603-2173 1298 Senior Independent Director: E-mail address: [email protected] [email protected] Social media: STOCK EXCHANGE LISTING www.facebook.com/CIMBMalaysia Listed on Main Market of Bursa Malaysia www.twitter.com/CIMB_Assists Securities Berhad since 3 November 1987 www.instagram.com/cimbmalaysia/ www.linkedin.com/company/cimb Stock Code: 1023 GROUP MANAGEMENT Dato’ Abdul Rahman Ahmad (HQG\6KDKXO+DPLG Country Head, Malaysia &KLHI([HFXWLYH2ɝFHU&Ζ0%'LJLWDO$VVHWV *URXS&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU&Ζ0% *URXS&KLHI([HFXWLYH2ɝFHU7RXFKȇQ*R*URXS &KLHI([HFXWLYH2ɝFHU Executive Director, CIMB Bank Berhad $KPDG6KDKULPDQ0RKG6KDUL &KLHI([HFXWLYH2ɝFHU*URXSΖVODPLF%DQNLQJ Omar Siddiq &KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU 'HSXW\&KLHI([HFXWLYH2ɝFHU&Ζ0%%DQN%HUKDG CIMB Islamic Bank Berhad &KLHI([HFXWLYH2ɝFHU*URXS:KROHVDOH%DQNLQJ Khairul Rifaie Tigor M. Siahaan *URXS&KLHI)LQDQFLDO2ɝFHU Country Head, Indonesia 3UHVLGHQW'LUHFWRU &KLHI([HFXWLYH2ɝFHU Gurdip Singh Sidhu PT Bank CIMB Niaga Tbk *URXS&KLHI3HRSOH2ɝFHU Paul Wong Chee Kin David Richard Thomas Country Head, Thailand *URXS&KLHI5LVN2ɝFHU 3UHVLGHQW &KLHI([HFXWLYH2ɝFHU CIMB Thai Bank PCL Kwan Keen Yew *URXS&KLHI/HJDO &RPSOLDQFH2ɝFHU Victor Lee Meng Teck Country Head, Singapore Amran Mohamad &KLHI([HFXWLYH2ɝFHU&Ζ0%%DQN6LQJDSRUH Group Chief Internal Auditor &KLHI([HFXWLYH2ɝFHU*URXS&RPPHUFLDO%DQNLQJ Datin Rossaya Mohd Nashir Samir Gupta Group Company Secretary &KLHI([HFXWLYH2ɝFHU*URXS&RQVXPHU%DQNLQJ Rafe Haneef &KLHI([HFXWLYH2ɝFHU*URXS7UDQVDFWLRQ%DQNLQJ &KLHI([HFXWLYH2ɝFHU&Ζ0%)RXQGDWLRQ *URXS&KLHI6XVWDLQDELOLW\2ɝFHU CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 213 STAKEHOLDER INFORMATION Group Corporate Directory 2020 CIMB Group Holdings Berhad CIMB Bank Plc CIMB Bank Berhad Level 13, Menara CIMB 20A/B, Corner Preah Norodom PHILIPPINES BRANCH Jalan Stesen Sentral 2 Boulevard & Street 118, Ground Floor, ORE Central Building Kuala Lumpur Sentral Sangkat Phsar Chas, 9th Avenue Corner 31st Street 50470 Kuala Lumpur, Malaysia Phnom Penh 12203, Bonifacio Global City, Taguig Tel : 603 2261 8888 Cambodia 1634 Philippines Fax : 603 2261 0099 Tel : 855 23 988 388 Tel : 63 2 249 9000 Website : www.cimb.com Fax : 855 23 988 099 Fax : NIL Website : www.cimbbank.com.kh Website : www.cimb.com CIMB Bank Berhad Level 17, Menara CIMB CIMB Bank (Vietnam) Limited CIMB Bank (L) Limited Jalan Stesen Sentral 2 Level 2, CornerStone Building /HYHO $ 0DLQ2ɝFH7RZHU Kuala Lumpur Sentral 16 Phan Chu Trinh Financial Park Labuan 50470 Kuala Lumpur, Malaysia Hoan Kiem District Jalan Merdeka Tel : 603 2261 8888 Hanoi, Vietnam 87000 W P Labuan, Malaysia Fax : 603 2261 0099 Tel : 84 4 3266 3388 Tel : 6087 597 500 Website : www.cimb.com Fax : 84 4 3266 3389 Fax : 6087 597 501 Website : www.cimbbank.com.vn Website : www.cimb.com CIMB Investment Bank Berhad Level 17, Menara CIMB CIMB Bank Berhad CIMB Bank Berhad Jalan Stesen Sentral 2 SINGAPORE BRANCH LABUAN OFFSHORE BRANCH Kuala Lumpur Sentral #09-01, Singapore Land Tower 50470 Kuala Lumpur, Malaysia 5DɞHV3ODFH /HYHO $ 0DLQ2ɝFH7RZHU Tel : 603 2261 8888 Singapore Financial Park Labuan Fax : 603 2261 0099 Tel : 65 6337 5115 Jalan Merdeka Website : www.cimb.com Fax : 65 6337 5335 87000 W P Labuan, Malaysia Website : www.cimb.com.sg Tel : 6087 597 500 CIMB Islamic Bank Berhad Fax : 6087 597 501 Level 17, Menara CIMB CIMB Bank Berhad Website : www.cimb.com Jalan Stesen Sentral 2 LONDON BRANCH Kuala Lumpur Sentral CIMB Investment Bank Berhad Ground Floor, 27, Knightsbridge 50470 Kuala Lumpur, Malaysia BRUNEI BRANCH London SW1X 7LY Tel : 603 2261 8888 United Kingdom 14th Floor, PGGMB Building Fax : 603 2261 0099 Tel : 44 0 20 7201 3150 Jalan Kianggeh Website : www.cimb.com Fax : 44 0 20 7201 3151 Bandar Seri Begawan BS8111 Website : www.cimb.com Brunei Darussalam PT Bank CIMB Niaga Tbk Tel : 673 224 1888 Graha CIMB Niaga CIMB Bank Berhad Fax : 673 224 0999 16th Floor, Ji. Jend Sudirman Kav. 58 SHANGHAI BRANCH Website : www.cimb.com Jakarta 12190, Indonesia Tel : 6221 250 5252 Unit 1805-1807, Azia Center CIMB Thai Bank Pcl Fax : 6221 252 6749 /XMLD]XL5LQJ5RDG VIENTIANE BRANCH Website : www.cimbniaga.com Pudong New District Shanghai 200120, China 010, Lanexang Avenue CIMB Thai Bank Public Company Tel : 86 21 2026 1888 Unit 2, Ban Hatsadi Limited Fax : 86 21 2026 1988 Chanthabury District 44, Langsuan Road Website : www.cimb.com Vientiane, Lao Pdr Lumpini, Pathumwan Tel : 856 21 255 355 Bangkok 10330, Thailand CIMB Bank Berhad Fax : 856 21 255 356 Tel : 662 638 8000/662 626 7000 HONG KONG BRANCH Website : www.cimb.com Fax : 662 657 3333 Rooms 2501 & 2507-2510, Website : www.cimbthai.com 25th Floor, Gloucester Tower, The Landmark, 15 Queen's Road, Central, Hong Kong Tel : 852 2586 7288 Fax : 852 2556 3863 Website : www.cimb.com 214 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Group Corporate Directory 2020 Touch ‘N Go Sdn. Bhd. CIMB Foundation Principal Islamic Asset Management Tower 6, Avenue 5, Bangsar South Level 17, Menara CIMB Sdn. Bhd. No. 8, Jalan Kerinchi Jalan Stesen Sentral 2 10th Floor, Bangunan CIMB 59200 Kuala Lumpur, Malaysia Kuala Lumpur Sentral Jalan Semantan, Damansara Heights Tel : 603 2714 8000 50470 Kuala Lumpur, Malaysia 50490 Kuala Lumpur, Malaysia Fax : 603 2714 8001 Tel : 603 2261 8888 Tel : 603 2084 8888 Website : www.touchngo.com.my Fax : 603 2261 8874 Fax : 603 2084 8899 Website : www.cimbfoundation.com Website : www.principal.com.my CIMB Trust Limited /HYHO $ 0DLQ2ɝFH7RZHU CIMB Bancom Capital Corporation CIMB Bank Berhad Financial Park Labuan 28th Floor, ORE Central Building YANGON REPRESENTATIVE Jalan Merdeka 9th Avenue Corner 31st Street OFFICE 87000 W P Labuan, Malaysia Bonifacio Global City, Taguig 1219, Level 12-A, Sakura Tower, Tel : 6087 414 252 1634 Philippines Kyauktada Township, Yangon, Fax : 6087 411 855 Tel : NIL Myanmar Website : www.cimb.com Fax : NIL Tel : 951 8 255 430 Website : www.cimb.com Fax : 951 8 255 430 CIMB Islamic Trustee Berhad Website : www.cimb.com Level 21, Menara CIMB CIMB Investment Bank (Private) Jalan Stesen Sentral 2 Limited CIMB Bank Berhad Kuala Lumpur Sentral No.47, Alexandra Place, MUMBAI REPRESENTATIVE 50470 Kuala Lumpur, Malaysia Colombo 07, Sri Lanka OFFICE Tel : 603 2261 8888 Tel : 94 11 269 5782 Fax : 603 2261 9887 Fax : 94 11 269 5410 Plot No.C-59, G-Block, Platina Website : www.cimb.com Website : www.cimb.com 2ɝFH1RDWK)ORRU Bandra Kurla Complex CIMB Commerce Trustees Berhad CGS-CIMB Holdings Sdn Bhd Bandra (East), Mumbai 400051 Level 21, Menara CIMB /HYHO7URSLFDQD&LW\2ɝFH7RZHU Tel : 91 22 6671 1570/ Jalan Stesen Sentral 2 No. 3, Jalan SS20/27, 91 02 2650 0330 Kuala Lumpur Sentral 47400 Petaling Jaya, Selangor Fax : NIL 50470 Kuala Lumpur, Malaysia Tel : 603 2261 8888 Website : www.cimb.com Tel : 603 2261 8888 Fax : 603 2261 8899 Fax : 603 2261 9887 Website : www.cgs-cimb.com.my Website : www.cimb.com CGS-CIMB Securities International iCIMB (Malaysia) Sdn. Bhd. Pte. Ltd. 19th Floor, Tower 5, Avenue 7 #16-02, Singapore Land Tower Bangsar South 5DɞHV3ODFH No. 8, Jalan Kerinchi Singapore 59200 Kuala Lumpur, Malaysia Tel : 65 6225 1228 Tel : 603 2180 7198 Fax : 65 6225 1522 Fax : 603 2180 7100 Website : www.cgs-cimb.com Website : www.cimb.com Principal Asset Management Berhad iCIMB (MSC) Sdn. Bhd. 10th Floor, Bangunan CIMB 19th Floor, Tower 5, Avenue 7 Jalan Semantan, Damansara Heights Bangsar South 50490 Kuala Lumpur, Malaysia No. 8, Jalan Kerinchi Tel : 603 2084 8888 59200 Kuala Lumpur, Malaysia Fax : 603 2084 8899 Tel : 603 2180 7198 Website : www.principal.com.my Fax : 603 2180 7100 Website : www.cimb.com CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 215 STAKEHOLDER INFORMATION Notice of Annual General Meeting NOTICE IS HEREBY GIVEN that the 64th Annual General Meeting (“AGM”) of CIMB Group Holdings Berhad (“CIMB” or “the Company”) will be held fully virtual at the broadcast venue at Level 31, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia on Thursday, 15 April 2021 at 10.00 a.m. to transact the following EXVLQHVVHVZLWKRUZLWKRXWPRGLȴFDWLRQV AS ORDINARY BUSINESS 1. 7RUHFHLYHWKH$XGLWHG)LQDQFLDO6WDWHPHQWVIRUWKHȴQDQFLDO\HDUHQGHG'HFHPEHUDQGWKH Reports of the Directors and Auditors thereon. Please refer to Explanatory Note 7 2. To re-elect the following Directors who retire pursuant to Article 81 of the Company’s Constitution: 2.1 Datuk Mohd Nasir Ahmad Ordinary Resolution 1 2.2 Mr. Robert Neil Coombe Ordinary Resolution 2 2.3 Encik Afzal Abdul Rahim Ordinary Resolution 3 Please refer to Explanatory Note 8 3. To re-elect the following Directors who retire pursuant to Article 88 of the Company’s Constitution: 3.1 Dato’ Abdul Rahman Ahmad Ordinary Resolution 4 3.2 Ms. Serena Tan Mei Shwen Ordinary Resolution 5 Please refer to Explanatory Note 8 4. 7RDSSURYHWKHSD\PHQWRI1RQ([HFXWLYH'LUHFWRUVȇIHHVZLWKHHFWIURPWKHWK$*0XQWLOWKH next AGM of the Company, as follows: Ordinary Resolution 6 Retainer Fee Chairperson’s Premium – per annum – per annum (RM) (RM) Board – Chairperson 170,000 510,000 – Member 170,000 N/A Board Committee – Chairperson N/A 100,000 – Member N/A N/A Please refer to Explanatory Note 9 5. 7RDSSURYHWKHSD\PHQWRIDOORZDQFHVDQGEHQHȴWVSD\DEOHWR1RQ([HFXWLYH'LUHFWRUVRIWKH Company up to an amount of RM3,895,000 from the 64th AGM until the next AGM of the Company. Ordinary Resolution 7 Please refer to Explanatory Note 9 6. 7RUHDSSRLQW0HVVUV3ULFHZDWHUKRXVH&RRSHUVDV$XGLWRUVRIWKH&RPSDQ\IRUWKHȴQDQFLDO\HDU HQGLQJ'HFHPEHUDQGWRDXWKRULVHWKH%RDUGRI'LUHFWRUVWRȴ[WKHLUUHPXQHUDWLRQ Ordinary Resolution 8 Please refer to Explanatory Note 10 216 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Notice of Annual General Meeting AS SPECIAL BUSINESS 7RFRQVLGHUDQGLIWKRXJKWȴWWRSDVVWKHIROORZLQJ2UGLQDU\5HVROXWLRQV 7. Proposed Renewal of the Authority for Directors to Allot and Issue Shares. “THAT pursuant to Section 76 of the Companies Act, 2016, the Directors be and are hereby given Ordinary Resolution 9 full authority to allot and issue shares in the Company, at any time and upon such terms and Ʉ FRQGLWLRQVDQGIRUVXFKSXUSRVHVDVWKH'LUHFWRUVPD\LQWKHLUDEVROXWHGLVFUHWLRQGHHPȴW provided that the aggregate number of shares issued pursuant to this resolution in any one ȴQDQFLDO\HDUGRHVQRWH[FHHGRIWKHLVVXHGFDSLWDORIWKH&RPSDQ\IRUWKHWLPHEHLQJAND THAT the Directors be and are hereby given full authority to obtain approval for the listing of and quotation for the additional shares so issued on the Bursa Malaysia Securities Berhad AND THAT such authority shall continue in force until the conclusion of the next Annual General Meeting of the Company or at the expiry of the period within which the next Annual General Meeting is required to be held in accordance with the provisions of the Companies Act, 2016, whichever is the earlier.” Please refer to Explanatory Note 11 8. Proposed Renewal of the Authority for Directors to Allot and Issue New Ordinary Shares in the Company (CIMB Shares) in Relation to the Dividend Reinvestment Scheme that provides the Shareholders of the Company with the Option to Elect to Reinvest Their Cash Dividend Entitlements in New Ordinary Shares in the Company (DRS). “THAT pursuant to the DRS approved at the Extraordinary General Meeting held on 25 February Ordinary Resolution 10 2013 and renewed at the Annual General Meeting held on 30 June 2020, approval be and is hereby Ʉ given to the Company to allot and issue such number of new CIMB Shares for the DRS until the conclusion of the next Annual General Meeting, upon such terms and conditions and to such SHUVRQVDVWKH'LUHFWRUVPD\LQWKHLUDEVROXWHGLVFUHWLRQGHHPȴWDQGLQWKHLQWHUHVWRIWKH Company PROVIDED THAT WKHLVVXHSULFHRIWKHVDLGQHZ&Ζ0%6KDUHVVKDOOEHȴ[HGE\WKH 'LUHFWRUVDWQRWPRUHWKDQWHQSHUFHQW GLVFRXQWWRWKHDGMXVWHGGD\YROXPHZHLJKWHG DYHUDJHPDUNHWSULFH 9:$03 RI&Ζ0%6KDUHVLPPHGLDWHO\SULRUWRWKHSULFHȴ[LQJGDWHRIZKLFK WKH9:$03VKDOOEHDGMXVWHGH[GLYLGHQGEHIRUHDSSO\LQJWKHDIRUHPHQWLRQHGGLVFRXQWLQȴ[LQJ WKHLVVXHSULFHDQGQRWOHVVWKDQWKHSDUYDOXHRI&Ζ0%6KDUHVDWWKHPDWHULDOWLPH AND THAT the Directors and the Secretary of the Company be and are hereby authorised to do all such acts and enter into all such transactions, arrangements and documents as may be necessary RUH[SHGLHQWLQRUGHUWRJLYHIXOOHHFWWRWKH'56ZLWKIXOOSRZHUWRDVVHQWWRDQ\FRQGLWLRQV PRGLȴFDWLRQVYDULDWLRQVDQGRUDPHQGPHQWV LIDQ\ DVPD\EHLPSRVHGRUDJUHHGWRE\DQ\ UHOHYDQWDXWKRULWLHVRUFRQVHTXHQWXSRQWKHLPSOHPHQWDWLRQRIWKHVDLGFRQGLWLRQVPRGLȴFDWLRQV YDULDWLRQVDQGRUDPHQGPHQWVDVWKH\LQWKHLUDEVROXWHGLVFUHWLRQGHHPȴWDQGLQWKHEHVW interest of the Company.” Please refer to Explanatory Note 12 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 217 STAKEHOLDER INFORMATION Notice of Annual General Meeting 9. Proposed Renewal of the Authority to Purchase Own Shares. “THAT VXEMHFWWRWKH&RPSDQLHV$FW DVPD\EHDPHQGHGPRGLȴHGRUUHHQDFWHGIURPWLPH Ordinary Resolution 11 to time), the Company’s Constitution and the requirements of the Bursa Malaysia Securities Berhad Ʉ (Bursa Securities) and approvals of all the relevant governmental and/or regulatory authorities, the Company be and is hereby authorised to purchase such number of ordinary shares in the Company (Proposed Shares Buy-Back) as may be determined by the Board of Directors of the Company from time to time through Bursa Securities upon such terms and conditions as the Board RI'LUHFWRUVPD\GHHPȴWDQGH[SHGLHQWLQWKHLQWHUHVWRIWKH&RPSDQ\SURYLGHGWKDWWKH aggregate number of ordinary shares purchased and/or held pursuant to this resolution does not exceed 10% of the total issued and paid-up share capital of the Company at any point in time and an amount not exceeding the total retained earnings of approximately RM1.399 billion based on WKH$XGLWHG)LQDQFLDO6WDWHPHQWVIRUWKHȴQDQFLDO\HDUHQGHG'HFHPEHUEHDOORFDWHGE\ the Company for the Proposed Shares Buy-Back AND THAT the ordinary shares of the Company to be purchased are proposed to be cancelled and/or retained as treasury shares and/or retained as treasury shares and cancel the remainder of the shares AND THAT where such shares are held as treasury shares, the Directors of the Company may distribute the shares as dividends, re-sold on Bursa Securities, transfer the shares under the employees’ share scheme or as purchase consideration or otherwise use the shares for such other purposes as the Minister may by order prescribe AND THAT the Board of Directors of the Company be and are hereby given full authority JHQHUDOO\WRGRDOODFWVDQGWKLQJVWRJLYHHHFWWRWKH3URSRVHG6KDUHV%X\%DFNZLWKWKHIXOO SRZHUWRDVVHQWWRDQ\FRQGLWLRQVPRGLȴFDWLRQVUHYDOXDWLRQVDQGRUDPHQGPHQWV LIDQ\ DVPD\ be imposed by the relevant authority with full power to do all such acts and things thereafter on any part of the shares bought back in accordance with the Companies Act, 2016, Company’s Constitution, Main Market Listing Requirements of Bursa Securities and any other rules and regulations that may be in force from time to time AND THAT such authority shall commence immediately upon passing of this ordinary resolution until: i. the conclusion of the next Annual General Meeting of the Company in 2022 at which time such authority shall lapse unless by ordinary resolution passed at that meeting, the authority LVUHQHZHGHLWKHUXQFRQGLWLRQDOO\RUVXEMHFWWRFRQGLWLRQV ii. the expiration of the period within which the next Annual General Meeting after that date is UHTXLUHGE\ODZWREHKHOG RU iii. revoked or varied by ordinary resolution passed by the Shareholders of the Company in a JHQHUDOPHHWLQJ ZKLFKHYHULVWKHHDUOLHUEXWQRWVRDVWRSUHMXGLFHWKHFRPSOHWLRQRISXUFKDVH V E\WKH&RPSDQ\ before the aforesaid expiry date and, in any event, in accordance with the provisions of the guidelines issued by the Bursa Securities and/or any other relevant authorities.” Please refer to Explanatory Note 13 10. To transact any other business of which due notice shall have been duly given in accordance with the Companies Act, 2016. BY ORDER OF THE BOARD Datin Rossaya Mohd Nashir Group Company Secretary LS 0007591/PC No. 202008000361 Kuala Lumpur 18 March 2021 218 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Notice of Annual General Meeting EXPLANATORY NOTES RE-ELECTION OF DIRECTORS VIRTUAL AGM 8. Article 81 of the Company’s Constitution provides that one-third (1/3) of the Directors of the Company for the time being shall retire by rotation at 1. As part of the initiatives to curb the spread of COVID-19, the 64th AGM of the AGM of the Company and be eligible for re-election. Three out of Eight the Company will be conducted entirely on a virtual basis through live Directors are to retire in accordance with Article 81 of the Company’s streaming and online remote voting via Remote Participation and Constitution. The Shareholders’ approval is sought under Ordinary Electronic Voting facilities which are available on Boardroom Share Resolutions 1, 2 and 3. Registrars Sdn Bhd’s website at Boardroom Smart Investor Online Portal at www.boardroomlimited.my. Please follow the procedures provided in Article 88 of the Company’s Constitution provides that the Board shall the Administrative Details for the 64th AGM in order to register, KDYHWKHSRZHUWRDSSRLQWDQ\SHUVRQWREHD'LUHFWRUWRȴOODFDVXDO participate and vote remotely. vacancy or as an addition to the existing Board of Directors. Any Director VRDSSRLQWHGVKDOOKROGRɝFHXQWLOWKHQH[W$*0DQGVKDOOWKHQEHHOLJLEOH 2. The venue of the 64th AGM is strictly for the purpose of complying with for re-election. The Shareholders’ approval is sought under Ordinary Section 327(2) of the Companies Act 2016 which requires the Chairman of Resolution 4 and 5. the meeting to be present at the main venue of the meeting. The venue of the 64th AGM is to inform shareholders where the electronic AGM The suitability of a Director as a Board member is in accordance with the production and streaming would be conducted from. No shareholder(s)/ Bank Negara Malaysia (BNM) Guidelines on Corporate Governance and proxy(ies) from the public will be physically present at the meeting venue. the Group’s Fit and Proper Policies and Procedures for Key Responsible Persons. The Group Nomination and Remuneration Committee (GNRC) PROXY considered the following criteria in determining the eligibility of the Directors to stand for re-election at the 64th AGM: 1. Section 334 of the Companies Act, 2016 provides that a member of a company shall be entitled to appoint another person or persons as his/ (i) The Director’s competency in specialised areas of practise and level her proxy or proxies to exercise all or any of his/her rights to attend, of contribution to the Board through their knowledge, skills and participate, speak and vote at a meeting of members of the company. A H[SHUWLVH proxy may, but need not, be a Member of the Company. A Member may appoint any person to be his/her proxy without any restriction as to the (ii) The level of independence demonstrated by the Directors, and his TXDOLȴFDWLRQRIVXFKSHUVRQ DELOLW\WRDFWLQWKHEHVWLQWHUHVWRIWKH&RPSDQ\ (iii) Probity, personal integrity and reputation, where the Directors must 2. Where a member appoints more than one (1) proxy, the appointment shall have personal qualities such as honesty, integrity, diligence, EHLQYDOLGXQOHVVKHVKHVSHFLȴHVWKHSURSRUWLRQRIKLVKHUVKDUHKROGLQJ LQGHSHQGHQFHRIPLQGDQGIDLUQHVV DQG to be represented by each proxy. A member shall be entitled to appoint only one (1) proxy unless he/she has more than 1,000 shares in which case (iv) Financial integrity, where the Directors must manage his debts or KHVKHPD\DSSRLQWXSWRȴYH SUR[LHVSURYLGHGHDFKSUR[\DSSRLQWHG ȴQDQFLDODDLUVSUXGHQWO\ shall represent at least 1,000 shares. The GNRC has also conducted an assessment on the independence of the 3. The instrument appointing a proxy shall be in writing under the hand of Independent Directors seeking re-election at this AGM based on the the appointer or his/her attorney duly authorised in writing or if such FULWHULDVHWE\WKH&RPSDQ\DQGJXLGHGE\WKHGHȴQLWLRQRIȊΖQGHSHQGHQW appointer is a corporation, under its Seal or the hand of its attorney. Director” as prescribed by the Main Market Listing Requirements of Bursa Securities and BNM Corporate Governance Policy. The Board has 4. This instrument duly completed must be deposited at the Registrar’s DVVHVVHGWKHLUWLPHDQGFRPPLWPHQWWRHHFWLYHO\GLVFKDUJHWKHLU RɝFHDW%RDUGURRP6KDUH5HJLVWUDUV6GQ%KGWK)ORRU0HQDUD respective roles as Directors of the Company. The retiring Directors had Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling abstained from deliberation and decision on their own eligibility to stand Jaya, Selangor, Malaysia, not less than twenty-four (24) hours before the for re-election at the relevant GNRC and Board meetings, where time appointed for holding the meeting which is no later than 10.00 a.m. DSSOLFDEOH7KH%RDUGLVVDWLVȴHGWKDWWKH'LUHFWRUVVHHNLQJUHHOHFWLRQ on Wednesday, 14 April 2021. KDYHPDLQWDLQHGWKHLULQGHSHQGHQFHLQWKHȴQDQFLDO\HDUHQGHG December 2020. 5. Pursuant to Paragraph 8.29A of Bursa Malaysia Securities Berhad Main Market Listing Requirements, all resolutions set out in the Notice of 64th Section 54(2)(a) of the Financial Services Act 2013 (FSA) provides that the AGM will be put to vote on a poll. appointment, re-appointment, election or re-election as Chairperson, 'LUHFWRURU&KLHI([HFXWLYH2ɝFHURIWKH&RPSDQ\LVVXEMHFWWRDSSURYDO MEMBERS ENTITLED TO ATTEND by BNM. In this respect, BNM’s approval for the tenures of the Directors VHHNLQJUHHOHFWLRQLVVWLOOHHFWLYHXQGHUOrdinary Resolutions 1, 2, 3, 4 6. For the purpose of determining a member who shall be entitled to attend and 5. the 64th AGM, the Company shall request Bursa Malaysia Depository Sdn. Bhd. in accordance with Article 59(c) of the Company’s Constitution and 7KHSURȴOHVRI'LUHFWRUVVHHNLQJUHHOHFWLRQDQGUHDSSRLQWPHQWDUHVHW Section 34(1) of the Securities Industry (Central Depositories) Act, 1991 to RXWLQWKH3URȴOHRI'LUHFWRUVȇVHFWLRQRIWKH&RPSDQ\ȇV$QQXDO5HSRUW issue a Record of Depositors as at 9 April 2021. Only a depositor whose 2020. name appears on the Record of Depositors as at 9 April 2021 shall be entitled to attend the said meeting or appoint proxies to attend, NON-EXECUTIVE DIRECTORS FEES AND BENEFITS PAYABLE participate, speak and/or vote on his/her behalf. 9. Section 230(1) of the Companies Act, 2016, provides amongst others, that AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ȊIHHVȋRIWKHGLUHFWRUVDQGȊDQ\EHQHȴWVȋSD\DEOHWRWKHGLUHFWRUVRID ENDED 31 DECEMBER 2020 listed company and its subsidiaries shall be approved at a general meeting. Pursuant thereto, Shareholders’ approval is sought for the 7. This Agenda item is meant for discussion only pursuant to the provisions SD\PHQWRIIHHVDQGEHQHȴWVSD\DEOHWRWKH1RQ([HFXWLYH'LUHFWRUVLQ of Section 340(1)(a) of the Companies Act, 2016 and will not be put separate Resolutions: forward for voting. (i) Ordinary Resolution 6: To approve the payment of the Non- ([HFXWLYH'LUHFWRUVȇIHHVZLWKHHFWIURPWKHWK$*0XQWLOWKHQH[W AGM of the Company CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 219 STAKEHOLDER INFORMATION Notice of Annual General Meeting The Board of Directors is recommending the Directors’ fees for the (ii) Ordinary Resolution 7: To approve the payment of allowances and Company and its subsidiaries as approved at the previous AGM of the EHQHȴWVSD\DEOHWR1RQ([HFXWLYH'LUHFWRUVRIWKH&RPSDQ\XSWRDQ Company, for Shareholders’ approval. There is no revision to the amount of RM3,895,000 from the 64th AGM until the next AGM of the amount proposed. Company. For the Company The amount payable to Non-Executive Directors comprises Chairperson’s DOORZDQFHVEHQHȴWVLQNLQGDQGRWKHUHPROXPHQWVSD\DEOHWRWKHP Retainer Fee Premium by the Company and its subsidiaries, details of which are as follows: – per annum – per annum For the Company (RM) (RM) Meeting Board Allowance – Chairperson 170,000 510,000 – per meeting – Member 170,000 N/A (RM) %HQHȴWVLQNLQG Board Committee Board – Chairperson N/A 100,000 – Chairperson 5,000 Club membership fees, driver, – Member N/A N/A leave passage, company car & RWKHUFODLPDEOHEHQHȴWV For Subsidiaries of the Company – Member 5,000 ΖQFOXGHVEHQHȴWVWKDWDUH Name Position Held Fee Type Amount claimable including Datuk Mohd CIMB Bank Berhad reimbursable expenses Nasir Fixed Fee: incurred in the course of Ahmad • Chairperson Chairperson’s carrying out their duties as premium – per Directors annum RM150,000 Board Board Committee N/A Retainer Fee – Chairperson – per annum RM150,000 & Member 5,000 • Audit Audit Committee Committee ΖQGHWHUPLQLQJWKHHVWLPDWHGDPRXQWRIEHQHȴWVSD\DEOHIRUWKH Chairperson Chairperson’s Non-Executive Directors, various factors, including the number of premium – per scheduled meetings for the Board, Board Committees and Boards of annum RM90,000 subsidiaries as well as the number of Non-Executive Directors CIMB Bank (Cambodia) PLC involved in these meetings were considered. The Board is hereby Fixed Fee: recommending up to an amount of RM3,895,000 as payment of • Chairperson Board DOORZDQFHVDQGEHQHȴWVSD\DEOHIURPWKHWK$*0XQWLOWKHQH[W Retainer Fee AGM of the Company. – per annum USD7,000 Monthly For the Subsidiaries Allowance USD1,200 Name Position Held Fee Type Amount • Audit Retainer Fee Committee – per annum USD4,500 Datuk Mohd CIMB Bank Berhad Member Nasir Variable Fee: Ahmad Dato’ Lee CIMB Bank Berhad • Chairperson Meeting Kok Kwan Fixed Fee: • Audit allowance Committee – per meeting RM5,000 • Director Board Chairperson Retainer Fee • Board Risk – per annum RM150,000 and Dato’ CIMB Islamic Bank Berhad Compliance Mohamed Fixed Fee: Committee Ross Mohd • Chairperson Chairperson’s member Din premium – per CIMB Bank (Cambodia) PLC annum RM140,000 Variable Fee: Board • Chairperson Meeting Retainer Fee allowance – per annum RM140,000 – per meeting USD1,000 Encik Didi CIMB Investment Bank Berhad • Audit Syafruddin Fixed Fee: Committee Yahya • Director Board Member USD600 Retainer Fee Dato’ Lee CIMB Bank Berhad – per annum RM140,000 Kok Kwan Variable Fee: PT Bank CIMB Niaga Tbk • Director Meeting Fixed Fee: • Board Risk allowance • Board of Retainer Fee and – per meeting RM5,000 Commissioner – per annum IDR1,212,166,667 Compliance Committee member 220 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Notice of Annual General Meeting Auditors. In its assessment, the AC considered several factors before Name Position Held Fee Type Amount recommending the re-appointment of the external auditors, as follows: Dato’ CIMB Islamic Bank Berhad (i) Level of knowledge, capabilities, experience and quality of previous Mohamed Variable Fee: ZRUN Ross Mohd • Chairperson Meeting Din • Board Risk allowance LL /HYHORIHQJDJHPHQWZLWKWKH$& and – per meeting RM5,000 (iii) Ability to provide constructive observations, implications and Compliance UHFRPPHQGDWLRQVLQDUHDVUHTXLULQJLPSURYHPHQWV Committee LY $GHTXDF\LQDXGLWFRYHUDJHHHFWLYHQHVVLQSODQQLQJDQGFRQGXFWRI Member DXGLW • Board Investment Y $ELOLW\WRSHUIRUPDXGLWZRUNZLWKLQDJUHHGWLPHIUDPH Committee (vi) Non-audit services rendered by the external auditor did not impede Member LQGHSHQGHQFH DQG Encik Didi CIMB Investment Bank Berhad (vii) The external auditor demonstrated unbiased stance when Syafruddin Variable Fee: interpreting standards/policies adopted by the Company. Yahya • Director Meeting • Board Risk allowance %HLQJVDWLVȴHGZLWK0HVVUV3ULFHZDWHUKRXVH&RRSHUVȇ 3Z& SHUIRUPDQFH and – per meeting RM5,000 in 2020, their technical competency and audit independence as well as Compliance IXOȴOOPHQWRIFULWHULDDVVHWRXWLQ&Ζ0%ȇV*XLGHOLQHVIRUWKH$SSRLQWPHQW Committee Re-appointment of External Auditors, the AC recommended the member appointment of PwC as external auditors for the Financial Year Ending PT Bank CIMB Niaga Tbk b'HFHPEHU7KH%RDUGDWLWVPHHWLQJKHOGRQ -DQXDU\ Variable Fee: approved the AC’s recommendation for the re-appointment of PwC as • President Meeting external auditors of the Company for the Financial Year Ending Commissioner allowance b'HFHPEHU7KH6KDUHKROGHUVȇ5HVROXWLRQLVVRXJKWXQGHU • Risk Oversight – per meeting IDR30,000,000 Ordinary Resolution 8. Committee Member AUTHORITY FOR DIRECTORS TO ALLOT AND ISSUE SHARES • Nomination and 11. Ordinary Resolution 9 is proposed for the purpose of renewing the Remuneration general mandate for issuance of Shares by the Company under Section 76 Committee of the Companies Act, 2016. If passed, it will give the Directors of the Member Company authority to issue ordinary shares in the Company at any time in their absolute discretion without the need to convene a general meeting. Recognising escalating costs and in view of the ongoing pandemic, the The authorisation, unless revoked or varied by the Company at a general Board had agreed in 2020, on temporary basis, to reduce the Retainer meeting, will expire at the conclusion of the next AGM of the Company. Fees and Chairperson’s Premium for CIMB Group Directors by 10% DQG0HHWLQJ$OORZDQFHE\ZKLFKWRRNHHFWRQ-XQH 7KHJHQHUDOPDQGDWHLIJUDQWHGZLOOSURYLGHȵH[LELOLW\WRWKH&RPSDQ\IRU 7KHUHDIWHUWKH%RDUGZRXOGUHDVVHVVWKHHHFWLYHQHVVRIWKHVH any possible fund raising activities, including but not limited to further temporary measures at the end of June 2021. SODFLQJRIVKDUHVIRUWKHSXUSRVHRIIXQGLQJIXWXUHLQYHVWPHQWSURMHFW V working capital and/or acquisition(s). 6XEMHFWWRWKHVKDUHKROGHUVȇDSSURYDOIRU2UGLQDU\5HVROXWLRQVDQG WKHSD\PHQWIRUWKHIHHVDQGEHQHȴWVIRUWKHSHULRGFRPPHQFLQJ The Company has not issued new shares pursuant to Section 76 of the from the 64th AGM until next AGM will be made by the Company and Companies Act, 2016 under the general mandate sought at the 63rd AGM its subsidiaries on a monthly basis and/or as and when incurred. The held on 30 June 2020, which will lapse upon the conclusion of the Board is of the view that the payments to the Non-Executive Directors forthcoming 64th AGM to be held on 15 April 2021. DUHMXVWDQGHTXLWDEOHWDNLQJLQWRDFFRXQWWKHLUUROHVDQG responsibilities towards the Group and the contribution and services AUTHORITY FOR DIRECTORS TO ALLOT AND ISSUE NEW they render to the Company and its subsidiaries. ORDINARY SHARES IN RESPECT OF THE DRS ΖQDGGLWLRQWKH'LUHFWRUVDQG2ɝFHUVRIWKH*URXSDQGWKH&RPSDQ\ 12. The proposed Ordinary Resolution 10 will give authority to the DUHFRYHUHGE\'LUHFWRUVDQG2ɝFHUVOLDELOLW\LQVXUDQFHIRUDQ\ Directors to allot and issue new ordinary shares in the Company in liability incurred in the discharge of their duties, provided that they respect of the DRS, until the conclusion of the next AGM. A renewal of this have not acted fraudulently or dishonestly or derived any personal authority will be sought at the subsequent AGM. SURȴWRUDGYDQWDJH7KHLQVXUDQFHSUHPLXPSDLGGXULQJWKHȴQDQFLDO year for the Group and the Company amounted to RM1,069,623 AUTHORITY TO PURCHASE OWN SHARES (2019: RM1,018,690) and RM Nil (2019: RM Nil). 13. Ordinary Resolution 11, if passed, will authorise the Directors to purchase CIMB shares through Bursa Securities up to 10% of the issued Please refer to the Notes to the Financial Statements for the amount and paid-up share capital of the Company. Details of the Proposed Shares of Directors’ Remuneration at the Group and the Company, for the Buy-Back are contained in the Statement Accompanying Notice of AGM. )LQDQFLDO CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 221 STAKEHOLDER INFORMATION Statement Accompanying Notice of Annual General Meeting (Pursuant to Paragraph 12.06(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad) A. PROPOSED RE-ELECTION OF DIRECTORS He brings with him vast experience in the areas of PURSUANT TO PARAGRAPH 8.27(2) OF THE OHDGHUVKLSPDQDJHPHQWȴQDQFHDQGDFFRXQWLQJZKLFK MAIN MARKET LISTING REQUIREMENTS OF spans over 40 years, having started his career as a Trainee BURSA MALAYSIA SECURITIES BERHAD Accountant with Tenaga Nasional Berhad (TNB) in 1979 and moving on to hold various positions in the Finance Division. 7KHSURȴOHRIWKH'LUHFWRUVZKRDUHVWDQGLQJIRUUHHOHFWLRQ DV per Ordinary Resolutions 1 to 5 as stated in the Notice of Annual In January 1993, Datuk Mohd Nasir was seconded to TNB’s General Meeting) at the 64th Annual General Meeting of CIMB subsidiary company, Malaysia Transformer Manufacturing Group Holdings Berhad which will be held fully virtual at the Sdn Bhd as the Financial Controller before being appointed broadcast venue at Level 31, Menara CIMB, Jalan Stesen Sentral 2, DV&KLHI([HFXWLYH2ɝFHU &(2 LQ-XQH Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia on Thursday, 15 April 2021 at 10.00 a.m. are as follows: ΖQ-DQXDU\KHMRLQHG6KDULNDW3HUPRGDODQ.HEDQJVDDQ Berhad as its CEO. On 1 June 2001, he was appointed CEO of 1. DATUK MOHD NASIR AHMAD Perbadanan Usahawan Nasional Berhad, a position he held (Chairperson/Independent Director) until his retirement on 1 June 2011. Nationality | Malaysian Datuk Mohd Nasir also holds directorships in private Age | 66 companies namely Prokhas Sdn Bhd and CIMB EOP Gender | Male Management Sdn Bhd and is a Trustee of Yayasan Canselor Date of Appointment | 20 July 2015 UNITEN. Length of Tenure | 5 The Board is of the view that Datuk Mohd Nasir’s leadership MEMBERSHIP OF BOARD COMMITTEES and experience is invaluable to CIMB. He has extensive • Member of Audit Committee, Board Risk and Compliance exposure and knowledge in the areas of audit, accounting Committee, Group Nomination and Remuneration DQGȴQDQFHDOORIZKLFKDUHFRPSOLPHQWDU\WRWKHGLYHUVLW\ Committee of skill sets of the Board of CIMB. Datuk Mohd Nasir constantly provides a balanced view of matters being QUALIFICATION discussed and is very professional in his approach. The ȏ )HOORZRI$VVRFLDWLRQRI&KDUWHUHG&HUWLȴHG$FFRXQWDQWV %RDUGDQG&RPPLWWHHVKDYHEHQHȴWWHGIURPKLVFRXQVHO (ACCA), United Kingdom RSLQLRQVDQGVRXQGLQGHSHQGHQWMXGJHPHQW • Chartered Accountant, Malaysian Institute of Accountants (MIA), Malaysia The Board hereby recommends the re-election of Datuk • Masters in Business Administration (Finance), Universiti Mohd Nasir Ahmad as Chairperson/Independent Director of Kebangsaan Malaysia, Malaysia the Company for the Shareholders’ approval. AREAS OF EXPERTISE 2. MR. ROBERT NEIL COOMBE • Accounting and Finance, Operations, Governance, (Independent Director) Strategy Development and Implementation Nationality | Australian DIRECTORSHIP/RELEVANT APPOINTMENTS Age | 57 Listed Entities (Other than CIMBGH) Gender | Male • Nil Date of Appointment | 16 April 2014 Public Companies Length of Tenure | 6 • Chairperson/Independent Director of CIMB Bank Berhad • Chairperson/Independent Director of CIMB Bank PLC MEMBERSHIP OF BOARD COMMITTEES (Cambodia) • Chairperson of the Board Risk and Compliance Committee • Independent Director of SIRIM Berhad • Member of the Group Nomination and Remuneration Committee RELEVANT EXPERIENCE Datuk Mohd Nasir Ahmad was the President of Malaysian QUALIFICATION Institute of Accountants (MIA) from August 2011 to July 2013. • Bachelor of Laws (Hons), University of Technology, Sydney, In September 2013 he was elected as a Council Member of Australia WKH$VVRFLDWLRQRI&KDUWHUHG&HUWLȴHG$FFRXQWDQWV $&&$ UK and re-elected in September 2016 and November 2019. 222 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Statement Accompanying Notice of Annual General Meeting AREAS OF EXPERTISE 3. ENCIK AFZAL ABDUL RAHIM • Accounting and Audit, Banking and Finance, Operations, (Independent Director) Consumer Marketing and Human Resource Nationality | Malaysian DIRECTORSHIP/RELEVANT APPOINTMENTS Age | 43 Gender | Male Listed Entities (Other than CIMBGH) Date of Appointment | 31 January 2019 • Non-Executive Chairperson of Generation Development Length of Tenure | 2 Group, Australia Public Companies MEMBERSHIP OF BOARD COMMITTEES • Nil • Nil RELEVANT EXPERIENCE QUALIFICATION Mr. Robert Neil Coombe is currently the Non-Executive • Bachelor in Mechanical Engineering with Electronics, Chairperson of the Generation Development Group, a University of Sussex at Brighton, United Kingdom ȴQDQFLDOVHUYLFHVEXVLQHVVIRFXVHGRQJHQHUDWLRQDOȴQDQFLDO solutions. AREAS OF EXPERTISE • Legal, Operations, Information Technology, Human He was previously the Chairperson of Craveable Brands, the Resource, Strategy Development and Implementation, largest Australian owned Quick Service Restaurant business Innovation and Transformation and was the CEO of Craveable Brands between 2013 and $SULO%HIRUHMRLQLQJ&UDYHDEOH%UDQGV0U&RRPEH DIRECTORSHIP/RELEVANT APPOINTMENTS was responsible for all of Westpac’s Retail, Business and Agri banking operations throughout Australia. Prior to this role, Listed Entities (Other than CIMBGH) Mr. Coombe spent six years as the CEO of BT Financial ȏ &KLHI([HFXWLYH2ɝFHURI7LPHGRW&RP%HUKDG Group, responsible for all of Westpac’s funds management, • Non-Independent Director of Symphony Communication ȴQDQFLDOSODQQLQJLQVXUDQFHSULYDWHEDQNLQJEURNLQJ Public Company Limited platform and superannuation businesses in Australia. In Public Companies total, he has over 35 years’ corporate experience in both • Nil Australia and Asia. RELEVANT EXPERIENCE In addition to the above, Mr. Coombe is also a Director of Encik Afzal Abdul Rahim is a technology entrepreneur who 7LEUD&DSLWDO6XUȴQJ$XVWUDOLDDQGWKH$XVWUDOLDQ currently serves as the Commander-In-Chief of TIME Indigenous Education Foundation. dotCom Berhad, an ASEAN based telecomunications operator encompassing Fixed Line, Data Centres and Global Mr. Coombe has continuously shown commitment and 6XEPDULQH&DEOH6\VWHPV+HMRLQHG7Ζ0(LQDIWHU professionalism as a Board member. The Board believes establishing The AIMS Asia Group and Global Transit that with his vast experience in Australia and Asia as well as International in 2006. his extensive knowledge in the international banking and ȴQDQFLDOLQGXVWU\0U&RRPEHZLOOFRQWLQXHWRSURYLGH (QFLN$I]DOIRXQGHGWKHQRQSURȴW0DOD\VLDQΖQWHUQHW insights and varied perspectives to the Board and Exchange (MyIX) in 2006 and also serves as a Board respective committees, as well as provide the Board with Member of Endeavor Malaysia, an organisation that is the right mix and balance. devoted to nurturing high-impact entrepreneurs. The Board hereby recommends the re-election of He began his career in the automotive sector, initially as a 0Ub5REHUW1HLO&RRPEHDVΖQGHSHQGHQW'LUHFWRURIWKH Chassis Development Engineer and thereafter managing Company for the Shareholders’ approval. clients on the engineering consultancy side of the business at Group Lotus PLC. Encik Afzal is also a Licensed Commercial Pilot. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 223 STAKEHOLDER INFORMATION Statement Accompanying Notice of Annual General Meeting 7KH%RDUGLVRIWKHYLHZWKDW&Ζ0%ZLOOEHQHȴWIURPKDYLQJ He has more than 20 years of leadership experience across Encik Afzal on the Board given his various skill sets, PXOWLSOHLQGXVWULHVZKHUHKHKHOG&KLHI([HFXWLYH2ɝFHU especially his competencies in Technology. With his positions in well-established organisations such as knowledge and experience, he provides insights on strategic Malaysian Resources Corporation Berhad, Media Prima DQGRSHUDWLRQDOWHFKQRORJ\PDWWHUV*LYHQWKHVLJQLȴFDQFH Berhad, Ekuiti Nasional Berhad and Permodalan Nasional of technology in the current socio-environmental context %HUKDG3ULRUWRMRLQLQJ&Ζ0%'DWRȇ$EGXO5DKPDQZDVZLWK DQGWKHWUDQVIRUPDWLRQHRUWVEHLQJXQGHUWDNHQE\&Ζ0% Sime Darby Berhad and Velesto Energy Berhad as Non- (QFLN$I]DOȇVSUHVHQFHZLOODGGYDOXHDQGIXOȴOWKHPL[DQG Executive Non-Independent Chairman. composition of the Board of CIMB. Dato’ Abdul Rahman is currently a panel member of The Board hereby recommends the re-election of Encik Kumpulan Wang Amanah Negara, Malaysia’s natural Afzal Abdul Rahim as an Independent Director of the resource fund managed by Bank Negara Malaysia. Besides Company for the Shareholders’ approval. being a member of the Association of Banks in Malaysia (ABM), he also sits on the Board of Finance Industry Collective Outreach (FINCO) and is a committee member of 4. DATO’ ABDUL RAHMAN AHMAD the Joint Committee on Climate Change (JC3). *URXS&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU Dato’ Abdul Rahman is a leader who is highly intellectual, Nationality | Malaysian IRFXVHGGHFLVLYHȴUPDQGWDNHVSHUVRQDODFFRXQWDELOLW\+LV Age | 51 analytical skills and passion for details will enable him to Gender | Male lead and execute CIMB’s strategy going forward. Dato’ Abdul Date of Appointment | 10 June 2020 Rahman’s previous exposure in overseeing several Length of Tenure | Less than 1 year companies as well as his execution and transformation skills will be critical especially in today’s uncertain environment to MEMBERSHIP OF BOARD COMMITTEES drive CIMB to achieve its Forward23+ goals. The Board • Nil believes that Dato’ Abdul Rahman’s leadership skills will further drive the culture of excellence and accountability QUALIFICATION within CIMB’s workforce. • Chartered Accountant – Member of Malaysian Institute of The Board hereby recommends the re-election of Dato’ Accountants, Malaysia Abdul Rahman Ahmad as Executive Director of the Company • Chartered Accountant – Institute of Chartered for the Shareholders’ approval. Accountants England and Wales (ICAEW), England • Master of Arts (Economics), University of Cambridge, England 5. MS. SERENA TAN MEI SHWEN (Non-Independent Director) AREAS OF EXPERTISE • Corporate Leadership, Strategy Development and Nationality | Malaysian Execution, Asset Management, Private Equity, Corporate Age | 42 Advisory, Accounting and Audit Gender | Female Date of Appointment | 30 September 2020 DIRECTORSHIP/RELEVANT APPOINTMENTS Length of Tenure | Less than 1 year Listed Entities (Other than CIMBGH) • Commissioner of PT Bank CIMB Niaga TBK MEMBERSHIP OF BOARD COMMITTEES • Non-Independent Director of CIMB Thai Bank PCL • Member of Board Risk and Compliance Committee and Public Companies Group Nomination and Remuneration Committee ȏ &KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRURI&Ζ0%%DQN Berhad QUALIFICATION • Master of Business Administration, MIT Sloan School of RELEVANT EXPERIENCE Management, USA Dato’ Abdul Rahman Ahmad was appointed as Group Chief • Bachelor of Commerce, Accounting & Finance, Macquarie ([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRURI&Ζ0%*URXS University, Australia +ROGLQJV%HUKDGDQG&KLHI([HFXWLYH2ɝFHU([HFXWLYH Director of CIMB Bank Berhad on 10 June 2020. 224 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Statement Accompanying Notice of Annual General Meeting AREAS OF EXPERTISE B. PROPOSED RENEWAL OF THE AUTHORITY FOR • Banking and Finance, International Experience DIRECTORS TO ISSUE SHARES PURSUANT TO PARAGRAPH 6.03(3) OF THE MAIN MARKET DIRECTORSHIP/RELEVANT APPOINTMENTS LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD Listed Entities (Other than CIMBGH) • Nil The details of the proposed renewal of the authority for Directors Public Companies to issue shares by the Company under Section 76 of the • Non-Independent Director of CIMB Bank Berhad Companies Act, 2016, are stated in the Explanatory Notes of the • Independent Director of Aviva Ltd Notice of Annual General Meeting. RELEVANT EXPERIENCE C. PROPOSED SHARES BUY-BACK PURSUANT TO Ms. Serena Tan was appointed as Non-Independent Director PARAGRAPH 12.06(2) OF THE MAIN MARKET of CIMB Group Holdings Berhad on 30 September 2020. LISTING REQUIREMENTS OF BURSA MALAYSIA SECURITIES BERHAD 0V6HUHQD7DQMRLQHG.KD]DQDK1DVLRQDO%HUKDGLQ and is currently an Executive Director of Investments where 1. INTRODUCTION she heads Private Markets and Financial Services. She has RYHU\HDUVRIH[SHULHQFHFRYHULQJWKHȴQDQFLDOVHFWRU 1.1 RENEWAL OF AUTHORITY FOR CIMB TO including secondments to Khazanah investee companies PURCHASE ITS OWN SHARES (PROPOSED such as the then Bank Lippo (now PT Bank CIMB Niaga Tbk) SHARES BUY-BACK) in Indonesia. She currently sits on the Board of CIMB Bank At the last Annual General Meeting of the Company Berhad as well as various other private companies. held on 30 June 2020, the Company had obtained the Shareholders’ approval to purchase its own shares as Prior to Khazanah, Ms. Serena Tan was with Boston may be determined by the Board of Directors of the Consulting Group and McKinsey & Company. Company from time to time through Bursa Securities, upon such terms and conditions as the Board of Ms. Serena Tan’s exposure, extensive experience and 'LUHFWRUVPD\GHHPȴWDQGH[SHGLHQWLQWKHLQWHUHVWRI knowledge has provided the right balance and the Company, provided that the aggregate number of FRPSHWHQFLHVWRHQKDQFHDQGIXOȴOWKHPL[DQGFRPSRVLWLRQ ordinary shares purchased and/or held does not of the Board of CIMB. Her ability to look at matters from exceed 10% of the total issued and paid-up share GLHUHQWSHUVSHFWLYHVDQGKHUOHDGHUVKLSDWWULEXWHVKDYH capital of the Company at any point in time and an also helped CIMB towards addressing and managing amount not exceeding the total retained earnings of challenges raised by various stakeholders, both in Malaysia approximately RM1.399 billion based on the Audited and regionally where the Group operates. )LQDQFLDO6WDWHPHQWVRIWKH&RPSDQ\IRUWKHȴQDQFLDO year ended 31 December 2020. The Board hereby recommends the re-election of Ms. Serena Tan Mei Shwen as Non-Independent Director of the The authority obtained by the Board of Directors for Company for the Shareholders’ approval. purchasing the Company’s own shares in accordance with the Main Market Listing Requirements of Bursa 7KHGLUHFWRUVOLVWHGDERYHGRQRWKDYHDQ\FRQȵLFWRI Securities governing shares buy-back by listed interest or any family relationship with any other Director companies, will lapse at the conclusion of the DQGRUPDMRUVKDUHKROGHUVRIWKH&RPSDQ\ forthcoming 64th Annual General Meeting to be held on 15 April 2021, unless renewed by an ordinary The directors listed above have not been convicted of any resolution. RHQFHZLWKLQWKHSDVWȴYH \HDUVQRUKDYHWKH\EHHQ imposed of any public sanction or penalty by any relevant On 5 March 2021, the Company announced its regulatory bodies in 2020. intention to seek shareholders’ approval at the forthcoming 64th Annual General Meeting, for the proposed renewal of the authority for the Company to purchase its own shares. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 225 STAKEHOLDER INFORMATION Statement Accompanying Notice of Annual General Meeting 1.2 PURPOSE OF STATEMENT CIMB Shares to be purchased will depend on market The purpose of this Statement is to provide relevant conditions and sentiments of Bursa Securities as well as the information on the Proposed Shares Buy-Back and to UHWDLQHGHDUQLQJVDQGȴQDQFLDOUHVRXUFHVDYDLODEOHWRWKH seek your approval for the ordinary resolution to renew Company. The audited retained earnings of the Company as the authority for the Company to purchase its own at 31 December 2020 was RM1.399 billion. shares, to be tabled at the forthcoming 64th Annual General Meeting. The Notice of Annual General CIMB may only purchase its own shares at a price which is Meeting together with the Proxy Form is set out not more than 15% above the weighted average market herewith. price for the past 5 market days immediately preceding the date of the purchase(s). The Company may only re-sell the 2. DETAILS OF THE PROPOSED SHARES BUY-BACK purchased shares held as treasury shares at a price which is (a) not less than the weighted average market price of CIMB The Board proposes to seek Shareholders’ approval for a Shares for the 5 market days immediately preceding the renewal of the authority to purchase and/or hold its own date of re-sale or (b) at a discounted price of not more than shares in aggregate of up to 10% of the issued and paid-up 5% to the weighted average market price of CIMB Shares for share capital of the Company at any point of time through the 5 market days immediately prior to the re-sale, provided Bursa Securities. Based on the issued and paid-up share that the re-sale takes place not earlier than 30 days from the capital of the Company as at 1 March 2021 of date of purchase and the re-sale price is not less than the RM25,843,808,251 comprising 9,922,966,350 ordinary cost of purchase of the CIMB Shares being re-sold. The shares in the Company (CIMB Shares), a total of 992,296,635 Company shall, upon each purchase or re-sale of shares CIMB Shares may be purchased by the Company pursuant bought back, make the necessary announcements through to the Proposed Shares Buy-Back. The maximum number of Bursa Securities. shares that can be bought back under this authority will take into account the number of shares previously bought The Proposed Shares Buy-Back will allow the Board to back and retained as treasury shares, if any. exercise the power of the Company to purchase its own shares at any time within the abovementioned time period 6XFKDXWKRULW\LIDSSURYHGZLOOEHHHFWLYHLPPHGLDWHO\ using internally generated funds and/or external upon passing of the ordinary resolution for the Proposed borrowings. The amount of internally generated funds and/ Shares Buy-Back until: or external borrowings to be utilised will only be determined (i) the conclusion of the next Annual General Meeting of at a later date, depending on the availability of internally CIMB in 2022 at which time such authority shall lapse generated funds, actual number of CIMB Shares to be unless by ordinary resolution passed at that meeting, SXUFKDVHGWKHDQWLFLSDWHGIXWXUHFDVKȵRZVRIWKH*URXS the authority is renewed, either unconditionally or and other cost factors. VXEMHFWWRFRQGLWLRQV The CIMB Shares purchased and held as treasury shares (ii) the expiration of the period within which the next may be distributed as share dividends, re-sold on Bursa Annual General Meeting after that date is required by Securities in accordance with the relevant rules of Bursa ODZWREHKHOG RU Securities, cancelled or continue to be retained as treasury (iii) revoked or varied by ordinary resolution passed by the shares. The decision whether to retain the purchased VKDUHKROGHUVRIWKH&RPSDQ\LQDJHQHUDOPHHWLQJ shares as treasury shares, to cancel the shares purchased, distribute the treasury shares as share dividends and/or ZKLFKHYHULVWKHHDUOLHUEXWQRWVRDVWRSUHMXGLFHWKH re-sell the treasury shares on Bursa Securities will be made completion of purchase(s) by the Company before the by the Board at the appropriate time. aforesaid expiry date and, in any event, in accordance with the provisions of the guidelines issued by Bursa Securities The distribution of treasury shares as share dividends may and/or any other relevant authorities. EHDSSOLHGDVDUHGXFWLRQRIWKHUHWDLQHGSURȴWVRIWKH Company. The treatment of the purchased shares held as The Board proposed to allocate an amount of up to retained treasury shares, this being to distribute as share dividends earnings of the Company for the purchase of its own shares or to re-sell on Bursa Securities or both will in turn, depend VXEMHFWWR6HFWLRQRIWKH&RPSDQLHV$FW DVPD\ RQWKHDYDLODELOLW\RIDPRQJVWRWKHUVUHWDLQHGSURȴWVRIWKH EHDPHQGHGPRGLȴHGRUUHHQDFWHGIURPWLPHWRWLPH DQG Company. any prevailing laws, rules, regulations, orders, guidelines and requirements issued by the relevant authorities at the time of the purchase (Prevailing Laws). The actual number of 226 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Statement Accompanying Notice of Annual General Meeting While the purchased shares are held as treasury shares, the 4. EVALUATION OF THE PROPOSED SHARES BUY- rights attached to them as to voting, dividends and BACK participation in any other distributions or otherwise are 4.1 ADVANTAGES suspended and the treasury shares shall not be taken into account in calculating the number of percentage of shares The potential advantages of the Proposed Shares or of a class of shares in the Company for any purposes Buy-Back are as follows: including, without limiting the generality of the provision of (i) Allow the Company to take preventive measures Section 127 of the Companies Act, 2016, the provision of any against excessive speculation, in particular when laws or requirements of the Constitution of the Company or WKH&RPSDQ\ȇVVKDUHVDUHXQGHUYDOXHG the Main Market Listing Requirements of Bursa Securities governing substantial shareholding, takeovers, notices, the LL $OORZWKH&RPSDQ\PRUHȵH[LELOLW\LQȴQHWXQLQJ requisitioning of meetings, quorum for a meeting and the LWVFDSLWDOVWUXFWXUH result of a vote on a resolution at a meeting. (iii) The resultant reduction of share capital base is expected to improve the Earnings Per Share and The Proposed Shares Buy-Back will be carried out in may strengthen the net tangible assets of the accordance with the Prevailing Laws at the time of the remaining shares as well as the probability of purchase including compliance with the public shareholding declaring a higher quantum of dividend in the spread as required by the Main Market Listing Requirements IXWXUH of Bursa Securities. (iv) To stabilise a downward trend of the market price The public shareholding spread of the Company before and RIWKH&RPSDQ\ȇVVKDUHV after the Proposed Shares Buy-Back is as follows: (v) Treasury shares can be treated as long-term investments. It makes business sense to invest in Before the After the our own Company as the Board of Directors is Proposed Proposed FRQȴGHQWZLWK&Ζ0%ȇVIXWXUHSURVSHFWVDQG Shares Shares SHUIRUPDQFHLQWKHORQJWHUP DQG Buy-Back Buy-Back (vi) If the treasury shares are distributed as dividend Public shareholding by the Company, it may then serve to reward the spread 50.22*΄ 55.80*΅ Shareholders of the Company. Notes: 4.2 DISADVANTAGES *΄ As at 1 March 2021 *΅ Based on the assumption that: The potential disadvantages of the Proposed Shares (i) the Proposed Shares Buy-Back involves the aggregate purchase of Buy-Back are as follows: 992,296,635 CIMB Shares (being 10% of issued and paid-up capital of the Company as at 1 March 2021) which are to be retained as (i) The purchases can only be made out of WUHDVXU\VKDUHV DQG distributable reserves resulting in a reduction of (ii) the number of CIMB Shares held by the Directors of CIMB, the the amount available for distribution as dividends substantial shareholders of CIMB and person connected to them DQGERQXVLVVXHVWR6KDUHKROGHUV DQG remain unchanged. (ii) The purchases of existing shares involve cash 3. RATIONALE FOR THE PROPOSED SHARES RXWȵRZIURPWKH&RPSDQ\ZKLFKPD\RWKHUZLVH BUY-BACK be retained and used for the businesses of the Company. The Proposed Shares Buy-Back will enable CIMB to utilise its VXUSOXVȴQDQFLDOUHVRXUFHVWREX\EDFN&Ζ0%6KDUHV7KH Nevertheless, the Board of Directors will be mindful of increase in Earnings Per Share, if any, arising from the the interests of the Company and its Shareholders in 3URSRVHG6KDUHV%X\%DFNLVH[SHFWHGWREHQHȴWWKH exercising the authority to purchase its own shares. Shareholders of the Company. The purchased shares can be held as treasury shares and re-sold on Bursa Securities to realise potential gain without DHFWLQJWKHWRWDOLVVXHGDQGSDLGXSVKDUHFDSLWDORIWKH Company. The distribution of the treasury shares as share dividends may also serve to reward the Shareholders of the Company. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 227 STAKEHOLDER INFORMATION Statement Accompanying Notice of Annual General Meeting 5. EFFECTS OF THE PROPOSED SHARES BUY-BACK Assuming that the Company buys back up to 992,296,635 CIMB Shares representing 10% of its issued and paid-up share capital DVDW0DUFKDQGVXFKVKDUHVSXUFKDVHGDUHFDQFHOOHGRUDOWHUQDWLYHO\EHUHWDLQHGDVWUHDVXU\VKDUHVRUERWKWKHHHFWVRI the Proposed Shares Buy-Back on the share capital, net tangible assets, working capital, earnings and substantial Shareholders’ and Directors’ shareholdings are as set out below: 5.1 SHARE CAPITAL In the event that all CIMB Shares purchased are cancelled, the Proposed Shares Buy-Back will result in the issued and paid-up share capital of CIMB as at 1 March 2021 to be reduced from RM25,843,808,251 comprising 9,922,966,350 CIMB 6KDUHVWR50 FRPSULVLQJ &Ζ0%6KDUHV+RZHYHULWLVQRWH[SHFWHGWRKDYHDQ\HHFWRQWKH issued and paid-up share capital if all CIMB Shares purchased are to be retained as treasury shares. 7KHHHFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKHLVVXHGDQGSDLGXSVKDUHFDSLWDORI&Ζ0%DUHLOOXVWUDWHGEHORZ As Per Audited Financial Statement After Share as at 31 December As at Purchase and 2020 1 March 2021 Cancellation Issued and paid-up share capital (RM) 25,843,808,251 25,843,808,251 23,259,427,426*¹ Notes: *΄ Assuming up to 10% of the issued and paid-up share capital of CIMB or 992,296,635 CIMB Shares are purchased and cancelled. 5.2 NET ASSET AND WORKING CAPITAL 7KHHHFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKHQHWDVVHWVSHUVKDUHRI&Ζ0%DUHGHSHQGHQWRQWKHSXUFKDVHSULFHVRI &Ζ0%6KDUHVDQGWKHHHFWLYHIXQGLQJFRVWRUORVVLQLQWHUHVWLQFRPHWR&Ζ0% If all CIMB Shares purchased are to be cancelled or retained as treasury shares, the Proposed Shares Buy-Back will reduce the net assets per share when the purchase price exceeds the net assets per share at the relevant point in time. On the contrary, the net assets per share will be increased when the purchase price is less than the net assets per share at the relevant point in time. The Proposed Shares Buy-Back will reduce the working capital of CIMB, the quantum of which will depend on the amount of ȴQDQFLDOUHVRXUFHVWREHXWLOLVHGIRUWKHSXUFKDVHRI&Ζ0%6KDUHV 5.3 EARNINGS PER SHARE 7KHHHFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKH(DUQLQJV3HU6KDUHRI&Ζ0%DUHGHSHQGHQWRQWKHSXUFKDVHSULFHVRI &Ζ0%6KDUHVDQGWKHHHFWLYHIXQGLQJFRVWRUORVVLQLQWHUHVWLQFRPHWR&Ζ0% 228 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Statement Accompanying Notice of Annual General Meeting 5.4 SUBSTANTIAL SHAREHOLDERS’ AND DIRECTORS’ SHAREHOLDINGS 7KHHHFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKH6XEVWDQWLDO6KDUHKROGHUVȇDQG'LUHFWRUVȇVKDUHKROGLQJVEDVHGRQWKH Register of Substantial Shareholders and the Register of Directors’ Shareholdings respectively as at 1 March 2021 are as follows: No. of CIMB Shares Held Before the Proposed Shares Buy-Back*¹ After the Proposed Shares Buy-Back*² Substantial Shareholders Direct % Indirect % Direct % Indirect % Khazanah Nasional Berhad 2,700,806,354 27.22 – – 2,700,806,354 30.24 – – Employees Provident Fund Board 1,592,033,641*³ 16.04 – – 1,592,033,641 17.83 – – Kumpulan Wang Persaraan (Diperbadankan) 646,884,641 6.52 – – 646,884,641 7.24 – – Notes: *΄ $GMXVWHGIRUWKHQXPEHURIWUHDVXU\VKDUHVKHOGDVDW0DUFK *΅ Assuming that 10% of the issued and paid-up capital is purchased and retained as treasury shares. *Ά Includes shares held through nominees. Before the Proposed Shares After the Proposed Shares Buy-Back*¹ Buy-Back*² No. of No. of Directors CIMB Shares Held % CIMB Shares Held % Dato’ Lee Kok Kwan*4 1,293,720*4 0.01*³ 1,293,720*4 0.01*³ Didi Syafruddin Yahya*5 45,262 0.00*³ 45,262 0.00*³ Notes: *΄ $GMXVWHGIRUWKHQXPEHURIWUHDVXU\VKDUHVKHOGDVDW0DUFK *΅ Assuming 10% of the issued and paid-up capital is purchased and retained as treasury shares. *Ά Less than 0.1%. *· Includes the shareholdings of his spouse. *Έ Shareholdings of his spouse. Save as disclosed above, none of the Directors, substantial Shareholders, and persons connected to the Directors and/or substantial Shareholders held any CIMB Shares. 6. APPROVAL REQUIRED The Proposed Shares Buy-Back is conditional upon the approval of the Shareholders of CIMB at the forthcoming 64th Annual General Meeting. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 229 STAKEHOLDER INFORMATION Statement Accompanying Notice of Annual General Meeting 7. SHARE PRICES 11. STATEMENT BY BURSA SECURITIES The monthly highest and lowest prices per share of CIMB Bursa Securities takes no responsibility for the contents of Shares traded on Bursa Securities for the last twelve (12) this Statement, makes no representation as to its accuracy months from March 2020 to 28 February 2021 are as or completeness and expressly disclaims any liability follows: whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this 2020 High (RM) Low (RM) Statement. March 4.46 3.14 12. DIRECTORS’ RESPONSIBILITY STATEMENT April 3.77 3.37 This Statement has been seen and approved by our Board, May 3.77 3.41 and our Directors collectively and individually accept full responsibility for the accuracy of the information contained June 4.05 3.53 KHUHLQDQGFRQȴUPWKDWDIWHUPDNLQJDOOUHDVRQDEOH enquiries and to the best of their knowledge and belief, July 3.81 3.53 there are no other facts, the omission of which would make August 3.60 3.30 any statement herein misleading. September 3.28 3.05 13. DIRECTORS’ RECOMMENDATION October 3.16 2.95 If you are in any doubt as to the course of action to be taken, you should consult appropriate independent advisers November 3.83 2.90 immediately. December 4.50 3.75 After having considered all aspects of the Proposed Shares Buy-Back, your Board is of the opinion that the Proposed 2021 High (RM) Low (RM) Shares Buy-Back is in the best interest of the Company. Accordingly, they recommend that you vote in favour of the January 4.30 3.84 ordinary resolution for the Proposed Shares Buy-Back to be February 4.33 3.86 tabled at the forthcoming 64th Annual General Meeting. Note: Based on the actual share price 14. DOCUMENTS AVAILABLE FOR INSPECTION Copies of the following documents are available for 8. PURCHASES, RESALE AND CANCELLATION OF LQVSHFWLRQDWWKHUHJLVWHUHGRɝFHRIWKH&RPSDQ\DW/HYHO TREASURY SHARES MADE DURING THE 13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur FINANCIAL YEAR ENDED 31 DECEMBER 2020 Sentral 50470 Kuala Lumpur, during the normal business 'XULQJWKHȴQDQFLDO\HDUHQGHG'HFHPEHUWKH hours from Monday to Friday (except public holidays) from Company did not buy back any of its issued share capital the date hereof up to the time stipulated for the holding of from the open market. the AGM:- L 7KH&RQVWLWXWLRQRIWKH&RPSDQ\ 9. DIRECTORS’ AND SUBSTANTIAL SHAREHOLDERS’ INTERESTS LL 7KHDXGLWHGFRQVROLGDWHGȴQDQFLDOVWDWHPHQWVRIRXU Company for the FYE 31 December 2018 and the FYE None of the Directors, substantial Shareholders and/or 'HFHPEHU persons connected to the Directors or substantial Shareholders of the Company have any interest, direct or iii. The latest available unaudited consolidated condensed indirect in the Proposed Shares Buy-Back or the re-sale of LQWHULPȴQDQFLDOVWDWHPHQWVRIRXU&RPSDQ\IRUWKH treasury Shares. FYE 31 December 2020 which was announced on b)HEUXDU\ DQG 10. MALAYSIAN CODE ON TAKE-OVERS AND iv. Other related documents which is referred to in this MERGERS 2016 (CODE) statement. The Proposed Shares Buy-Back if carried out in full (whether shares are cancelled or treated as treasury shares) may result in a substantial Shareholder and/or parties acting in FRQFHUWZLWKLWLQFXUULQJDPDQGDWRU\JHQHUDORHU obligation. In this respect, the Board is mindful of any implications arising from the Proposed Shares Buy-Back under the provision of the Code. 230 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Administrative Details for 64th Annual General Meeting (AGM) of CIMB Group Holdings Berhad Due to the unprecedented circumstances arising from the Please note that the Broadcast Venue is strictly for the measures that have been implemented nationally to limit the purpose of compliance with Section 327 of the Companies spread of the COVID-19, and in particular, the Government of Act 2016 and Article 57 of the Company’s Constitution. 0DOD\VLD Ȋ*RYHUQPHQWȋ ȇVRɝFLDOJXLGDQFHIRUSUDFWLVLQJVRFLDO NO SHAREHOLDERS/PROXIES/CORPORATE distancing, the Board of Directors of CIMB Group Holdings REPRESENTATIVES should be physically present at or Berhad (“Board”) has decided that the 64th Annual General admitted to the Broadcast Venue on the day of the AGM. Meeting (“64th AGM”) of CIMB Group Holdings Berhad (“the Company” or “CIMB”) shall be held fully virtual and entirely via Remote Participation and Electronic Voting (“RPEV”) facilities on VOTING PROCEDURE the date, time and at the Broadcast Venue, as follows: 1. The voting procedure will be conducted by poll in accordance with Paragraph 8.29A of Bursa Malaysia Date Thursday, 15 April 2021 Securities Berhad (“Bursa Malaysia”) Main Market Listing Time 10.00 a.m. Requirements. The Company has appointed Boardroom Share Registrars Sdn. Bhd. (“Boardroom”) as Poll Broadcast Level 31, Menara CIMB, Jalan Stesen Sentral Administrator to conduct the poll by way of electronic voting Venue 2, Kuala Lumpur Sentral, 50470 Kuala (“e-voting”) and Deloitte as Scrutineers to verify and validate Lumpur, Malaysia the poll results. Meeting https://web.lumiagm.com 2. For the purposes of this AGM, e-voting will be carried out via Platform the following voting devices: Mode of 1. Type text in the meeting platform. The a. Personal smart mobile phones , tablets or Communication Messaging window facility will be Laptops opened concurrently with the Virtual Meeting Portal, i.e. one (1) hour before 3. There are 2 methods for members and proxies who wish to the AGM, which is from 9.00 a.m. on use their personal voting device to vote. The methods are as Thursday, 15 April 2021 follows: 2. Shareholders may submit questions in advance on the AGM resolutions and a. Launch Lumi AGM by scanning the QR code given to Annual Report 2020 commencing from you in the email along with your remote participation 18 March 2021 and in any event no later 8VHUΖ'DQG3DVVZRUG RU than Friday, 9 April 2021 at 5.00 p.m., b. Access to Lumi AGM via website URL via Boardroom’s website at https:// https://web.lumiagm.com boardroomlimited.my using the same user ID and password provided in Step 4. The polling will only commence after the announcement of 2 below, and select “SUBMIT poll being opened by the Chairman and until such time QUESTION” to pose questions when the Chairman announces the closure of poll. (“Pre-AGM Meeting Questions”). 5. The Scrutineers will verify the poll result reports upon closing of the poll session by the Chairman and the PRECAUTIONARY MEASURES ON COVID-19 Chairman will declare whether the resolutions put to vote were successfully carried or not. 1. The Company invites shareholders to participate in the XSFRPLQJWK$*0IURPWKHLUKRPHRURɝFHDQGIROORZ 6. You must ensure that you are connected to the internet at the entire proceedings as the AGM would be conducted via all times in order to participate and vote remotely when the RPEV facilities. The AGM will be conducted in accordance 64th AGM has commenced. Therefore, it is your with the practices that have already been adopted by other responsibility to ensure that connectivity for the duration of internationally developed capital markets. The AGM is the AGM is maintained. Kindly note that the quality of the transparent, has a high level of integrity and is connectivity to Virtual Meeting Portal for live webcast as well environmentally friendly. Our approach also supports the as for remote online voting is dependent on the bandwidth Government’s initiative to ban mass gathering as part of its and stability of the internet connection at the location of the safety measure to contain the spread of COVID-19, while remote participants. concurrently observes AGM deadline as stipulated in the Companies Act, 2016. Furthermore, throughout the years, the resolutions in our AGM have been passed electronically, and the adoption of a fully online AGM is one step ahead for good corporate governance practice. CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 231 STAKEHOLDER INFORMATION Administrative Details for 64th Annual General Meeting (AGM) of CIMB Group Holdings Berhad REMOTE PARTICIPATION AND ELECTRONIC VOTING (“RPEV”) Step 2 – Submit Request for Remote Participation User ID and Password 7. Please note that the RPEV facilities is available to (Note: The registration for remote access will be opened on (i) Individual Members; (ii) Corporate Shareholders; b0DUFK (iii) Authorised Nominee; and (iv) Exempt Authorised Individual Members Nominee. – Login to https://boardroomlimited.my using your User ID and Password given above. 8. If you choose to participate in the Meeting online, you will be – Select “VIRTUAL MEETING” from main menu and able to view a live webcast of the Meeting, ask questions select the correct Corporate Event “CIMB GROUP and submit your votes in real time whilst the Meeting is in HOLDINGS BERHAD 64TH VIRTUAL ANNUAL progress. GENERAL MEETING”. – Read and agree to the terms & conditions. 9. Kindy follow the steps below on how to request for login ID – Enter your CDS Account Number and thereafter and password. submit your request. Corporate Shareholders, Authorised Nominee Step 1 – Register Online with Boardroom Smart and Exempt Authorised Nominee ΖQYHVWRU3RUWDO IRUȴUVWWLPHUHJLVWUDWLRQRQO\ – Write in to [email protected] by (Note: If you have already signed up with Boardroom Smart providing the name of Member, CDS Account Investor Portal, you are not required to register again. You may 1XPEHUDFFRPSDQLHGZLWKWKH&HUWLȴFDWHRI proceed to Step 2. Submit request for Remote Participation user Appointment of Corporate Representative or Form ID and password) of Proxy to submit the request. – Please provide a copy of the Corporate a. Access website https://boardroomlimited.my Representative’s or Proxy Holder’s MyKad (front b. Click < Step 3 – Login to Virtual Meeting Portal (Please note that the quality of the connectivity to Virtual Meeting Portal for live webcast as well as for remote online voting is highly dependent on the bandwidth and the stability of the internet connectivity available at the location of the remote users) a. The Virtual Meeting portal will be open for login starting an hour (1 hour) before the commencement of AGM at 9:00 am on 15 April 2021. b. Follow the steps given to you in the email along with your remote access user ID and password to login to the Virtual Meeting portal. (Refer to Step 2(c) above). c. The steps will also guide you on how to view live webcast, ask questions and vote. d. The live webcast will end and the Messaging window (for asking questions) will be disabled the moment the Chairman announces the closure of the AGM. e. You can now logout from Virtual Meeting Portal. 232 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Administrative Details for 64th Annual General Meeting (AGM) of CIMB Group Holdings Berhad PARTICIPATION THROUGH LIVE WEBCAST, 5. Alternatively, you may deposit your proxy form(s) by QUESTION AND VOTING AT THE 64TH AGM electronic means through the Share Registrar’s website, Boardroom Smart Investor Online Portal. Kindly follow the 1. The Chairman and the Board will endeavour their best to link at https://www.boardroomlimited.my to login and respond to the questions submitted by shareholders which deposit your proxy form electronically, also 24 hours before are related to the resolutions to be tabled at the 64th AGM, the meeting. For further information, kindly refer to the DVZHOODVȴQDQFLDOSHUIRUPDQFHSURVSHFWRIWKH&RPSDQ\ “Electronic Lodgment of Form of Proxy” below: 2. All modes of communications are accepted for the purpose of posting questions to the Chairman and Board before or Step 1 – Register Online with Boardroom Smart during the AGM. Shareholders are however encouraged to ΖQYHVWRU3RUWDO IRUȴUVWWLPHUHJLVWUDWLRQRQO\ post questions via the online platform during the AGM. (Note: If you have already signed up with Boardroom Smart Investor Portal, you are not required to register again. You may proceed to Step 2 on e-Proxy Lodgement) 3. Shareholders may proceed to cast votes on each of the proposed resolutions, to be tabled at the 64th AGM, after a. Access website https://boardroomlimited.my the Chairman has opened the poll on the resolutions. b. Click < CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 233 STAKEHOLDER INFORMATION Administrative Details for 64th Annual General Meeting (AGM) of CIMB Group Holdings Berhad REVOCATION OF PROXY ENQUIRY If you have submitted your Form(s) of Proxy and subsequently If you have general administrative enquiries on the AGM, please decide to appoint another person or wish to participate FRQWDFWWKHIROORZLQJGXULQJRɝFHKRXUV in our electronic AGM by yourself, please write in to Boardroom Share Registrars Sdn. Bhd. [email protected] to revoke the earlier 2ɝFH+HOSGHVN appointed proxy 24 hours before the meeting. Encik Mohamed Sophiee Ahmad Nawawi : +60 3-7890 4716 Puan Yusliana Md Yusof : +60 3-7890 4718 Fax No. : +60 3 7890 4670 RECORDING OR PHOTOGRAPHY AT THE ONLINE AGM E-mail : [email protected] No recording or photography of the AGM proceeding is allowed : [email protected] without the prior written permission of the Company. : [email protected] CIMB ANNUAL REPORT 2020 – GO DIGITAL & PAPERLESS! Datin Rossaya Mohd Nashir, Group Company Secretary Cik Farah Atikah Hasnan 1. As part of our dedicated commitment to sustainable Telephone : +603-2261 0085 practices, the Annual Report 2020 can be downloaded from Fax No. : +603 2261 0099 our website at https://www.cimb.com/en/investor-relations/ Email : [email protected] annual-reports.html and also at Bursa Malaysia website under “Company Announcements”. 2. Since the 64th AGM will be conducted electronically, there will be NO DISTRIBUTION of the Annual Report 2020 during the meeting. PERSONAL DATA PRIVACY By registering for the remote participation and electronic voting meeting and/or submitting the instrument appointing a proxy(ies) and/or representative(s), the member of the Company has consented to the use of such data for purposes of processing DQGDGPLQLVWUDWLRQE\WKH&RPSDQ\ RULWVDJHQWV DQGWRFRPSO\ with any laws, listing rules, regulations and/or guidelines. The member agrees that he/she will indemnify the Company in respect of any penalties, liabilities, claims, demands, losses and damages as a result of the shareholder’s breach of warranty. 234 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 Proxy Form CIMB Group Holdings Berhad 195601000197 (50841-W) (Incorporated in Malaysia) CDS Account No. I/We (name of shareholder as per NRIC/ID, in capital letters) NRIC No./ID No./Company No. (new) (old) of (full address) being a member of CIMB Group Holdings Berhad (“CIMB” or “the Company”), hereby appoint (name of proxy as per NRIC/ID, in capital letters) NRIC No./ID No. (new) (old) or failing whom, (name of proxy as per NRIC/ID, in capital letters) NRIC No./ID No. (new) (old) or failing whom, the Chairman of the Meeting as my/our proxy to vote for me/us on my/our behalf at the 64th Annual General Meeting (AGM) of the Company to be held fully virtual at the broadcast venue at Level 31, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur 6HQWUDO.XDOD/XPSXU0DOD\VLDRQ7KXUVGD\$SULODWDPRUDWDQ\DGMRXUQPHQWWKHUHRI My/our proxy is to vote as indicated below. RESOLUTIONS FOR* AGAINST* 1. Receipt of Audited Financial Statements and Reports of the Directors and Auditors. 2. Re-election of Directors pursuant to Article 81 of the Company’s Constitution: 2.1 Datuk Mohd Nasir Ahmad Resolution 1 2.2 Mr. Robert Neil Coombe Resolution 2 2.3 Encik Afzal Abdul Rahim Resolution 3 3. Re-election of Directors pursuant to Article 88 of the Company’s Constitution: 3.1 Dato’ Abdul Rahman Ahmad Resolution 4 3.2 Ms. Serena Tan Mei Shwen Resolution 5 4. 7RDSSURYHWKHSD\PHQWRI1RQ([HFXWLYH'LUHFWRUVȇIHHVZLWKHHFWIURPWKH Resolution 6 64th AGM until the next AGM of the Company. 5. 7RDSSURYHWKHSD\PHQWRIDOORZDQFHVDQGEHQHȴWVSD\DEOHWR1RQ([HFXWLYH Resolution 7 Directors of the Company up to an amount of RM3,895,000 from the 64th AGM until the next AGM of the Company. 6. To re-appoint Messrs. PricewaterhouseCoopers as Auditors of the Company Resolution 8 DQGWRDXWKRULVHWKH%RDUGRI'LUHFWRUVWRȴ[WKHLUUHPXQHUDWLRQ 7. Proposed Renewal of the Authority for Directors to Allot and Issue Shares. Resolution 9 8. Proposed Renewal of the Authority for Directors to Allot and Issue Shares in Resolution 10 relation to the Dividend Reinvestment Scheme. 9. Proposed Renewal of the Authority to Purchase Own Shares. Resolution 11 As Witness my hand this day of No. of Shares Held: Signature of Member(s) 3OHDVHLQGLFDWHZLWKDQȊ;ȋKRZ\RXZLVK\RXUYRWHWREHFDVW 8QOHVVRWKHUZLVHLQVWUXFWHGWKHSUR[\PD\YRWHDVKHWKLQNVȴW NOTES: 1. Section 334 of the Companies Act, 2016 provides that a member of a company shall be entitled to appoint another person or persons as his/her proxy or proxies to exercise all or any of his rights to attend, participate, speak and vote at a meeting of members of the company. A proxy may, but need not, be a PHPEHURIWKHFRPSDQ\$PHPEHUPD\DSSRLQWDQ\SHUVRQWREHKLVKHUSUR[\ZLWKRXWDQ\UHVWULFWLRQDVWRWKHTXDOLȴFDWLRQRIVXFKSHUVRQ :KHUHDPHPEHUDSSRLQWVPRUHWKDQRQH SUR[\WKHDSSRLQWPHQWVKDOOEHLQYDOLGXQOHVVKHVKHVSHFLȴHVWKHSURSRUWLRQRIKLVKHUVKDUHKROGLQJWREH represented by each proxy. A member shall be entitled to appoint only one (1) proxy unless he/she has more than 1,000 shares in which case he/she may DSSRLQWXSWRȴYH SUR[LHVSURYLGHGHDFKSUR[\DSSRLQWHGVKDOOUHSUHVHQWDWOHDVWVKDUHV 7KLVLQVWUXPHQWGXO\FRPSOHWHGPXVWEHGHSRVLWHGDWWKH5HJLVWUDUȇVRɝFHDW%RDUGURRP6KDUH5HJLVWUDUV6GQ%KGWK)ORRU0HQDUD6\PSKRQ\1R Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia, not less than twenty-four (24) hours before the time appointed for holding the meeting which is no later than 10.00 a.m. (Wednesday, 14 April 2021). 4. The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly authorised in writing or if such appointer is a corporation, under its Seal or the hand of its attorney. 5. For the purpose of determining a member who shall be entitled to attend the 64th Annual General Meeting, the Company shall request Bursa Malaysia Depository Sdn. Bhd. in accordance with Article 59(c) of the Company’s Constitution and Section 34(1) of the Securities Industry (Central Depositories) Act, 1991 to issue a Record of Depositors as at 9 April 2021. Only a depositor whose name appears on the Record of Depositors as at 9 April 2021 shall be entitled to attend the said meeting or appoint proxies to attend, participate, speak and/or vote on his/her behalf. fold here AFFIX STAMP The Share Registrars BOARDROOM SHARE REGISTRARS SDN. BHD. (1996010006647 (378993-D)) 11th Floor, Menara Symphony No. 5, Jalan Prof. Khoo Kay Kim Seksyen 13, 46200 Petaling Jaya Selangor, Malaysia fold here MINIMALIST, EFFICIENT, INTELLIGENT DESIGN APPROACH We worked with our creative agency to plan an optimal design that not only communicates effectively with the readers, but also minimises use of ink, energy for printing, and the associated costs, without compromising on the aesthetic value of the design elements. SIMPLICITY CLEAN LINES We have gone sparse – replacing We optimised use of line-drawings, full scale and massive images with non-filled bar graphs/charts, and more icons, and limited the use of clean lines for clarity and visually colours, keeping it rich. more pleasing and easier to decipher. MONOCHROMATIC MINIMAL ART COLOR PALETTE By using a single base colour, and Our design this year balances its variant shades and tones, we between a clever play of space, minimised the use of multiple creative design, and icons and colours that require more ink, with tighter leadings and margins for potential wastage. text to reduce number of pages. REDUCTIVISM Where possible, we have avoided and reduced the need for heavy texts, fonts, and design elements including photographs etc. www.cimb.com