Bank Rakyat Annual Report 2013 1 1954 1964 1968
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LEADING CHANGE Annual Report 2013 Vision Bank Rakyat is its members’ Choice Bank for all its product and service offerings are the best compared with those provided by other competing financial institutions. Since membership in Bank Rakyat is very significant, there is no reason for them to look at others. This vision generates the tagline:- ‘Bank Rakyat Your Choice Bank’ Vision Bank Rakyat Your Choice Bank By Means of Offering the best products and services compared to other financial institutions in the market Tagline “Your Choice Bank” Mission To help improve the economic well-being of members by providing financing facilities at an affordable rate for agriculture, production, marketing, industry, fishing, transportation, housing and business activities deemed beneficial to members and to also promote thrift and savings. By-law Article 5(I) Just like a child setting off an imaginative bird in flight, we unleash our potentials beyond borders, challenging traditions to bring meaningful changes. Practicing with imagination, creativity and innovation in our business dynamics, this is about our story of leading change in the lives of millions of Malaysians. Contents 2013 Snapshot Strategy and Awards 2013 106 Realising Aspiration • Vision And Mission 40 2013 Business Strategy 109 Human Capital Excellence 2 59 Years History (1954-2013) 41 Achievements and Awards 2013 Accountability - Our Evolution Management Commentary 114 Board of Directors and 6 Business Pillars 44 Message from the Chairman Main Committees 7 Our Profile 48 Commentary from the 120 Audit and Inspection Committee 11 Snapshot - About Us Managing Director/President 124 Risk Management Committee 12 Snapshot - 2013 Financial Summary 131 Shariah Committee 14 Snapshot – Asset And Liability Business Review 134 Financial Calendar 2013 15 Snapshot - Five Year Performance 56 2013 Economic and Banking 135 Annual General Meeting Notice (Financial) Environment 16 Snapshot - Our Members 59 Analysis of Banking Business Financial Statement 17 Our Corporate Information 60 Our Financial Stability Analysis 137 Financial Statements 18 Bank Rakyat Organization Chart Our Leaders Other Information and Directory 20 Bank Rakyat and The Government 64 Board of Directors 269 Head Office and Branches 21 Group Corporate Structure 66 Board of Directors Profile 281 Bank Rakyat Service Centres Our History and Achievements 74 Audit and Inspection Committee 282 Ar-Rahnu X’change 24 Our Bond With Customers 76 Shariah Committee 284 Subsidiaries 28 Spotlight On Us 78 Shariah Committee Profile 285 Service Agents 30 2013 Event Highlights 82 Management Committee 291 Rakyat Xcess & Ar-Rahnu X’change 36 Five-Year Performance Summary 84 Management Committee Profile 292 Rakyat Xcess (Financial) 293 Susulan Berpusat Selangor 1 (SBS1) Philanthropy - The Changes We Bring 37 Five-Year Performance Summary 294 Agencies under the Ministry of 88 Philanthropy (Non-Financial) Domestic Trade, Co-operatives 90 Our Philanthropy 38 Banking Operation Performance and Consumerism 91 Affecting Change to Communities 39 Quarterly Performance 2013/2012 295 Appendix A 100 Beyond Customer Expectations 296 Appendix B 103 Energising Cooperative Movement 297 Appendix C and Members Socio-economic Status Bank Rakyat Annual Report 2013 1 1954 1964 1968 THE BEGINNING OF BANK RAKYAT OPERATIONAL EXPANSION RAPID EXPANSION The establishment of Bank Agong, following the Bank Agong increases its authorised Bank Kerjasama opens its first branch amalgamation of 11 cooperative banks under the share capital to RM20 million from in Sungai Petani, Kedah Cooperative Ordinance 1948 RM2 million 59 Years History (1954-2013) - Our Evolution MOVING TO THE CAPITAL CHANGING NAME Bank Agong head office moves to a temporary building at - Bank Agong changes its name to Bank Cooperative Development Department, at Jalan Swettenham Kerjasama Malaysia Berhad (Bank Kerjasama) (now Jalan Mahameru), Kuala Lumpur - Individuals can become members of the Bank 1961 and it is not restricted to just cooperatives, automatically expanding the Bank’s financing activities - Bank Kerjasama moves to its own building at Jalan Ipoh, Kuala Lumpur 1967 FROM BANK KERJASAMA TO BANK RAKYAT - Bank Kerjasama changes its name to Bank Kerjasama Rakyat Malaysia Berhad, also known as Bank Rakyat - Bank Rakyat is allowed to form subsidiaries after amendments to the Bank’s By-Laws 1973 2 Bank Rakyat Annual Report 2013 1974 1993 1999 GROWING RAPIDLY TRANSFORMATION TO RAPID GROWTH AND PROGRESS - Angkasaraya Development ISLAMIC BANKING - Bank Rakyat’s Authorised Share Sdn Bhd, a subsidiary of Bank - Bank Rakyat launches its Shariah Capital is increased to RM1 billion Rakyat, develops a Banking System at branches in - Bank Rakyat implements a fully 24-storey modern Alor Star, Kota Bharu, Jalan Ipoh integrated retail banking system to Angkasaraya building (Kuala Lumpur) and Sungai Besar improve efficiencies and cater for the at Jalan Ampang, - Bank Rakyat introduces Islamic increase in the number of customers Kuala Lumpur pawn broking Ar-Rahnu at branches - Bank Rakyat offers Islamic Banking - Forges cooperation in Bandar Tun Razak, Mergong, at 80 branches with First National City Seremban, Butterworth, Muar and Bank of New York and Kuala Terengganu via cooperation the establishment of its with the Malaysian Islamic Economic investment arm, Rakyat First Development Foundation (YPEIM) Merchant Bankers Berhad 59 Years History (1954-2013) - Our Evolution OPENING OF AR-RAHNU OUTLET INTRODUCTION OF ISLAMIC BANKING The Bank launches its first Ar-Rahnu - Bank Rakyat opens a fully Islamic banking Outlet in Kota Bharu, Kelantan THE NEW HEADQUARTERS branch in Jertih, Terengganu Bank Rakyat moves to its new 22-storey - The Bank introduces ATM services and the 2000 corporate office at Jalan Tangsi, Kuala Lumpur Bank’s Authorised Share Capital is increased to RM100 million 1979 - Bank Rakyat opens its first branch in Sabah after amendments to the Cooperative Act AMENDMENTS TO THE ACT 1993 - The Bank Kerjasama Rakyat Malaysia - The Bank creates the Shariah Monitoring Berhad Act (Special Provisions) 1978 Council to ensure all its activities are amendments are passed by Parliament. Shariah-compliant The government provides 1994 RM155 million financing facility to Bank Rakyat to expand its financing activities - Bank Rakyat is placed under the ministry that is responsible for the development and progress of cooperatives 1978 Bank Rakyat Annual Report 2013 3 2001 CORPORATE REBRANDING - The launch of the Bank’s new corporate logo and colours 2003 - Introduction of off-premise ATMs, putting 2006 the Bank on an equal playing field with SHIFTING GEARS other financial institutions in electronic - The Annual General Meeting approves CUSTOMER CONVENIENCE banking services the resolution to increase the Bank’s - Bank Rakyat launches tele-Rakyat, - The Bank is placed under direct supervision Authorised Share Capital to its call centre to provide easy access of Bank Negara Malaysia in accordance with RM2 billion to banking services to customers the Development of Financial Institutions Act - The Bank launches e-Rakyat or - Bank Rakyat opens its first 2002 Electronic Banking Centre (EBC) at its Ar-Rahnu X’Change in Sentul, branch in Jalan Tangsi, Kuala Lumpur Kuala Lumpur - RAM Rating Services Berhad assigns a long-term financial rating of AA3 with a stable outlook to Bank Rakyat while the Bank’s short-term financial rating remains at P1 59 Years History (1954-2013) - Our Evolution NEW REGULATOR FULLY ISLAMIC BANKING - Bank Rakyat is placed under the Bank Rakyat’s total assets are Ministry of Entrepreneur and Cooperative fully Shariah-compliant Development 2002 - The Bank joins Malaysian Electronic Payment System (MEPS), the first non-commercial financial institution to do so 2004 AT PAR WITH OTHER BANKS IN INTERNET BANKING - Bank Rakyat launches its Internet banking service, i-Rakyat, putting it at par with local and international banking institutions - The opening of the Ar-Rahnu X’change in Klang by Koperasi Pembangunan Pulau Lumut Berhad under the the Bank’s franchise scheme 2007 4 Bank Rakyat Annual Report 2013 2008 EXCEEDING RM1 BILLION AND BRAND STRENGTHENING - Bank Rakyat records over RM1 billion profit before tax and zakat, the first time in its history 2013 - The launch of credit card-i and Tabung 2010 Haji services at Bank’s branches and EXTENDING EXCELLENCE ATM/CDM terminals STRENGTHENING THE - Records a profit before tax and zakat - The launch of Bank Rakyat Foundation COOPERATIVE MOVEMENT of RM2.13 billion to provide financial assistance and The launch of the CO-OP Card and - The launch of Islamic Medium-Term improve the education level of Merchant Partner programme to assist Notes Sukuk Musharakah worth Malaysians especially the Bank’s cooperatives and their business activities. RM500 million, the second Islamic members The CO-OP Card also functions as an bond issued by the Bank - The first financial institution in Malaysia ATM, MEPS e-Debit, discount and to use the fuselage of an aircraft for loyalty card branding purposes 59 Years History (1954-2013) - Our Evolution BIGGEST IN MALAYSIA AND 12TH LARGEST IN THE WORLD - International financial magazine, The Asian Banker lists Bank Rakyat as the biggest Islamic Bank in Malaysia and 12th largest in the world LAUNCH OF RM1 BILLION SUKUK based on assets - The first cooperative Bank to launch its - The launch of Bank Rakyat Twin Towers Project own Islamic Medium-Term Notes Sukuk at Jalan Travers, Kuala Lumpur, the Bank’s new Musharakah worth RM1 billion corporate