Aspirations Annual Report 2004 Annual Report
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2004 Aspirations annual report 2004 Annual Report Awww.spirationscimb.com.my A spirations CIMB BERHAD 582504-P thecover As we celebrate 30 years of achievements in 2004, a milestone that marks CIMB fulfilling much of the ambitions sketched out in our vision statement of 1996, it seems appropriate to look ahead, beyond the present, to future challenges. “Aspirations” is a theme that grounds our Annual Report this year, chosen to convey our ideas and ambitions for CIMB’s continuing evolution. “Children are our most valuable natural resource” Throughout this report, we have used Herbert Hoover CIMB employee’s children as symbols US President of potential, the promise that CIMB’s future holds. A child embodies courage, ambition, energy, creativity, enthusiasm and resilience; the very qualities that will bring us to the next stage as we our stake-out our wider regional aspirations. vision To be the Premier Investment Bank in Malaysia post liberalisation and deregulation our Mission To Invest in our people to derive a culture driven by innovation to deliver quality service whilst providing superior returns and value to our stakeholders 30th ANNIVERSARY Listed on Bursa in 2004 Malaysia in 2003 Incorporated in 1974 Market Leader In the MalaysiaN Transactions Capital Market Over 1,000 employees Strategic alliances RM14.7 Billion in Assets at a glance 3RD Annual General Meeting • Banquet Hall, Kuala Lumpur Golf & Country Club (KLGCC) No. 10 Jalan 1/70D, Off Jalan Bukit Kiara, 60000 Kuala Lumpur • Friday, 15 April 2005 • 9.30 a.m.. financial Highlights 2004 • Profit before tax increase 10% to RM384.9 million (2003: RM350.8 million) • Profit after tax and minority interest increased 11% to RM289.7 million (2003: RM260.6 million) • Return on weighted average equity was 20.7% (2003: 19.0%) • Earnings per share increased to 33.9 sen (2003: 30.6 sen) Return On Weighted Profit Before Tax (RM Million) Profit After Tax (RM Million) Average Equity 400 300 25.0% 350 250 20.0% 300 200 250 15.0% 200 150 150 10.0% 100 100 5.0% 50 50 0 0 0.0% 00 01 02 03 04 00 01 02 03 04 03 04 * The operating results for the years 2000 to 2002 are those of the Commerce International Merchant Bankers Berhad Group (CIMB Group) and are deemed to be representative of the proforma results of the CIMB Berhad Group. Zuraidah Zainal Corporate Resources “I’m proud to be a part of Malaysia’s Premier Investment Bank. Here we are all given the opportunity to better ourselves, no matter what level we are at.” Lim Eng Ping Debt Capital Markets & Syndicate “I relish the challenging nature of Suhanisa Abd. Kadir my work and the never-ending Group Finance opportunities to learn new skill sets.” “It is when people ask me where I work and my answer puts a smile on their faces, that’s when I know I’ve made the right decision with CIMB.” Penny Leong Sook Peng Retail Sales “CIMB has helped me to realise my full potential as a marketing person.” Realising Aspirations Jamaludin Zakaria Investment Banking “As a premier homegrown investment bank with increasing regional presence, CIMB offers excellent opportunities for individual’s to develop their technical core competencies.” Fauzanita Rathi Ishak Corporate Finance “Working with one of the forerunners of the industry, the thinking-out-of-the-box and the Alan Yew Teong Soon innovations that come with it Investment Banking make it ever exciting for me.” “Nothing beats the excellent infrastructure for further career development that I’ve discovered here.” Mohd Khairizal Fiona Yew Siew Li Mohd Khalif Corporate Finance Corporate Resources “My life has been enriched “I’m living my chance with the pleasure of working to advance my career with some of the best in town in a reputable and learn from them.” company that is well placed in the market.” Zamzarina Abu Bakar Corporate Finance Quek Chong Wee “Lots of learning and Investment Banking opportunities to gain here. “The business exposure of a year A good prospect not just for here is equivalent of 4 elsewhere.” my career but personal growth as well.” Yap See Woon Khairil Anuar Mohamad Sarif Julia Goh Mei Ling Corporate Finance Private Client Services Equities Research “I am blessed with a great “CIMB has groomed my way of thinking. “Working with highly capable, caring career opportunity and a To be more open-minded, susceptible to and driven people permits me to friendly working environment.” change and inspired to lead.” grow on a continuous learning path.” Enriching Lives Fulfilling Dreams Our Journey Continues... CORPORATE DIRECTORY • CIMB Berhad • CIMB Securities Sdn Bhd • Commerce International Merchant Bankers • CIMSEC Nominees Sdn Bhd Berhad • CIMSEC Nominees (Tempatan) Sdn Bhd • CIMB Holdings Sdn Bhd • CIMSEC Nominees (Asing) Sdn Bhd • CIMB Sharetech Sdn Bhd • CIMB Nominees (Tempatan) Sdn Bhd 9th Floor Commerce Square Jalan Semantan Damansara Heights • CIMB Nominees (Asing) Sdn Bhd 50490 Kuala Lumpur Malaysia • CIMB Real Estate Sdn Bhd/ PO Box 10126 CIMB-Mapletree Management Sdn Bhd 50704 Kuala Lumpur Telephone: 10th Floor Bangunan CIMB 603 2084 9999 (General) Jalan Semantan Damansara Heights 50490 Kuala Lumpur Malaysia Telex: PO Box 12362 MA 30991 CIMSEC 50776 Kuala Lumpur Facsimile: Telephone: 603 2084 9888 (General) 603 2084 8888 • CIMB Futures Sdn Bhd Telex: MA 30647 PEBSAM 10th Floor Bangunan CIMB Facsimile: Jalan Semantan Damansara Heights 603 2084 8899 (General) 50490 Kuala Lumpur Malaysia 603 2093 4955 (Corporate Finance) Telephone: 603 2093 5689 (Corporate Finance) 603 2084 9999 (General) 603 2093 5130 (Investment Banking) 603 2093 2968 (Dealing) 603 2095 0076 (Investment Banking) 603 2093 8112 (Equity Markets & Derivatives) Facsimile: 603 2092 3917 (Cross Markets Trading & Treasury) 603 2093 7782 (General) 603 2095 0112 (Debt Capital Markets & Syndicate) 603 2094 6368 (Dealing) 603 2723 8638 (Private Banking) 603 2092 2316 (Private Equity) • CIMB (L) Limited 603 2093 0685 (CIMB Islamic) 603 2093 1008 (Corporate Communications) Unit 11(B1) 11th Floor Main Office Tower Financial Park Complex • CIMB Discount House Berhad Jalan Merdeka 87000 WP Labuan Malaysia 10th Floor Bangunan CIMB Telephone: Jalan Semantan Damansara Heights 6087 451 608 (General) 50490 Kuala Lumpur Malaysia Facsimile: Telephone: 6087 451 610 (General) 603 2084 8888 (General) 603 2093 2399 (Dealing) • Commerce Asset Fund Managers Sdn Bhd/ 603 2094 5399 (Dealing) Commerce Trust Berhad 603 2094 6399 (Dealing) 603 2094 1399 (Dealing) Level 5, Menara Milenium 603 2093 5989 (Muamalat) 8, Jalan Damanlela, Bukit Damansara 603 2093 6989 (Muamalat) 50490 Kuala Lumpur Facsimile: Telephone: 603 2094 3566 (General) 603 2084 2222 Facsimile: 603 2084 2233 • PT CIMB Niaga Securities 12th Floor, Graha Niaga Jl. Jend. Sudirman Kav 58 Jakarta 12910 Indonesia Telephone: 622 1250 5717 Facsimile: 2004 622 1250 5708 Annual Report CIMB Group Website: www.cimb.com.my 4 12 18 OUR LETTER TO PERFORMANCE PROFILE OUR REVIEW BY SHAREHOLDERS GROUP CHIEF EXECUTIVE Our Profile 4 Transactions For The Year 44 Our Values 5 30th Anniversary Celebrations 58 Corporate History 6 Corporate Information 62 Financial Calendar 2004 7 Boards of Major Subsidiaries 64 Financial Summary 8 Shareholders and Sister Companies 65 Letter To Our Shareholders 12 Board of Directors’ Profile 66 Performance Review by Group Management Committee’s Profile 72 Group Chief Executive 18 Other Key Management 78 Group Corporate Structure 80 CONTENTS Organisation Chart 81 Summary of Businesses 82 Awards & Achievements 84 Corporate Governance 92 Audit Committee Report 110 Statement of Internal Control 114 Risk Management 120 Investor Relations 128 Corporate Resources Division 132 Corporate Communications 136 CIMB & The Community 140 Environmental Efforts 146 Corporate Events Calendar 148 Staff Recreation & Sports Activities 156 Analysis of the Financial Statements 160 Financial Statements 164 Analysis of Shareholdings 290 Property of The Group 294 Notice of Annual General Meeting 295 Statement Accompanying Notice of 3rd Annual General Meeting 298 Proxy Form • 44 164 295 TRANSACTIONS FINANCIAL NOTICE OF ANNUAL FOR THE YEAR STATEMENTS GENERAL MEETING OUR PROFILE CIMB 4 Malaysia’s Premier Investment Bank CIMB Berhad is the investment banking arm of Commerce Asset-Holding Berhad, Malaysia’s second largest financial services group. CIMB Berhad Group comprises eight major subsidiaries: OUR PROFILE Commerce International Merchant Bankers Berhad CIMB Discount House Berhad CIMB Securities Sdn Bhd CIMB Futures Sdn Bhd CIMB (L) Limited Commerce Asset Fund Managers Sdn Bhd Commerce Trust Berhad PT CIMB Niaga Securities CIMB is a fully integrated investment bank, offering the full range of services in the debt and equity and corporate advisory. CIMB also provides services in funds management, lending, private banking, private equity, Islamic capital markets as well as research capability in economics and the equity and debt markets. CIMB is a market leader in the Malaysian capital markets. Since 1991 to 2004, CIMB has arranged more than RM57 billion in domestic ringgit bonds. Since 1991, CIMB also raised over RM14.7 billion in initial public offerings (IPOs) on behalf of 139 client companies, equivalent to a 33% market share. Since 1992, it has arranged 79 rights issues on behalf of its clients raising over RM13 billion. CIMB also has strong market presence in the secondary bonds, equity and derivative markets. CIMB is listed on Bursa Malaysia. With a market capitalisation of USD1.3 billion as at 31 December 2004, CIMB is the South East Asia’s largest investment bank. SOUND FINANCIAL