GROWING and WINNING TOGETHER Customers’ Needs in This Rapidly Changing GROWING 2018 and WINNING World
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ANNUAL REPORT GROWING 2018 AND WINNING TOGETHER ANNUAL REPORT GROWING 2018 AND WINNING TOGETHER OUR BUSINESSES AMMB Holdings Berhad The Group’s purpose to help individuals and AmBank is the first bank in Malaysia to introduce businesses in Malaysia grow and win together a Digital Auto Finance Instant Approval service, AMMB Holdings Berhad is the holding company demonstrates our renewed vision to support through the Mobile Application Terminal (MAT). of AmBank Group and has been listed on the and empower our customers and our people Main Market of Bursa Malaysia since 1988. to achieve their aspirations. This purpose The Australia and New Zealand Banking Group It is the sixth-largest banking group by assets in underpins the Group’s holistic Top 4 Aspiration, (ANZ) is the biggest shareholder in the AmBank Malaysia, with a market capitalisation of around which is focused on sustenance, improvement Group with a 23.8% holding and provides support RM11.6 billion and assets of RM137.9 billion at and growth in key segments and products as with Board and senior management representation, 31 March 2018. well as our role as an Employer. AmBank Group risk and financial governance, product offerings is a modern Malaysian diversified financial and new business developments. In the general AmBank Group is one of Malaysia’s premier solutions partner that understands and meets insurance business, the Group has partnered financial solutions groups with over 43 years the diverse needs of Malaysians. with Insurance Australia Group Ltd (IAG). In the of experience in supporting Malaysians in their life assurance and family takaful businesses, the economic development. AmBank Group offers AmBank’s Digital Journey is about making Group has a partnership with MetLife International a wide range of both conventional and Islamic banking an easy, fast experience for our valued Holdings Inc (MetLife). The Group benefits in terms financial solutions and services, including customers across all touch points: branches, of expertise transfer from IAG and MetLife. wholesale banking, retail banking, investment telephone, machines, online and mobile. banking, underwriting of general insurance, We are accelerating the next phase of our life assurance and takaful, stock and share digital capabilities with a Group-wide digital broking, futures broking, investment advisory roadmap that focuses on integrating our and management services in assets, real estate services into the daily lives of customers in investment trust and unit trusts. an innovative and practical manner. AmInvestment Bank Berhad Member of Malaysian Investment Banking Association. AmInvestment Bank Berhad (AmInvestment Bank), part of the AmBank Group, is a leading Malaysian investment bank with more than 30 years of experience. It provides a full range of wholesale banking related products and services that include Corporate Finance, Equity Markets, Debt Markets, Islamic Capital Markets, and Markets & Private Banking. AmInvestment Bank has an award-winning track record in the debt, equity and Islamic capital markets. AmFunds Management Berhad (AmInvest) is the funds management business of AmBank Group and manages both conventional and Shariah-compliant funds. It is one of the leading fund management houses in Malaysia and has an award-winning track record spanning more than three decades. As at 31 March 2018, AmInvest has approximately RM27.9 billion assets under management. AmInvest manages unit trust and wholesale funds, institutional mandates, exchange-traded funds and Private Retirement Scheme under AmFunds Management, encompassing both conventional and Shariah-compliant funds. ANNUAL REPORT GROWING 2018 AND WINNING TOGETHER OUR BUSINESSES AmBank (M) Berhad 12 Regional Supported by a Offices strong network of 174 763 Branches ATMs Member of Association of Banks in Malaysia. AmBank (M) Berhad (AmBank) is part of the AmBank Group and offers a comprehensive suite of financial products and services focused on retail banking and preferred segments in small business, SME, mid-corporate and corporate customers. Supported by a strong network of 174 branches, 12 regional offices, 763 ATMs, a 24-hour contact centre and a digital banking system, access to AmBank’s financial solutions and services is simple and convenient. AmBank Islamic Berhad A solutions provider in Islamic personal banking, business › banking, investment banking, stockbroking, funds management and family takaful from the AmBank Group, backed by a strong Member of Association of Islamic Banking Institutions Malaysia. tradition of innovation and customisation from across the AmBank Islamic Berhad (AmBank Islamic) is the Islamic banking Group’s subsidiaries and divisions: arm of the AmBank Group. Since its beginnings as AmBank Group’s Islamic banking division in 1993 and subsequently incorporated as › › an Islamic bank in 2006, AmBank Islamic has built a reputation in serving the banking needs of individuals, businesses and institutions. AmBank Islamic Islamic Capital Markets AmBank Islamic’s comprehensive range of Shariah-compliant retail and wholesale banking products and services (including treasury › › and trade solutions), and their delivery channels continuously evolve in line with market changes. This dynamic approach supports the AmInvest AmMetLife Takaful agenda to help individuals, businesses and institutions in Malaysia (Funds Management Business) grow and win together. ANNUAL REPORT GROWING 2018 AND WINNING TOGETHER OUR BUSINESSES AmGeneral Insurance Berhad AmMetLife Insurance Berhad › › Member of Life Insurance Association › of Malaysia. AmMetLife Insurance One of Malaysia’s largest General insurance Berhad (AmMetLife) is a strategic AmMetLife offers motor and leading general solutions distributed partnership between AMMB Holdings a comprehensive Berhad (AmBank Group) and MetLife insurance company through a network of 33 range of life AmAssurance and Kurnia International Holdings, Inc. (MetLife). insurance and wealth branches AmMetLife offers a comprehensive protection solutions range of life assurance and wealth distributed through Member of Persatuan Insurans Am Malaysia. AmGeneral protection solutions distributed the AmBank Group’s Insurance Berhad (AmGeneral Insurance) is one of the largest through a combination of AmBank network of nearly motor and general insurance companies in Malaysia with and AmMetLife branch offices 200 AmBank and over four million policy holders. It is backed by a strong nationwide, in addition to the strength AmMetLife branch partnership between AmBank Group and IAG Trading under of its authorised life insurance agents offices nationwide. its two trusted brands, AmAssurance and Kurnia. AmGeneral nationwide. Insurance generates business from a comprehensive range of general insurance solutions distributed through a network of 32 insurance branches servicing 7,000 agents and dealers, as well as through AmBank branches and customer touch points nationwide. AmMetLife Takaful Berhad Member of Malaysian Takaful Association. AmMetLife Takaful Berhad (AmMetLife Takaful) is a strategic partnership between AmBank Group and MetLife. The strategic partnership combines the international expertise and financial strength of MetLife with the local strength and reach of AmBank Group. AmMetLife Takaful offers a comprehensive range of takaful solutions distributed by its authorised takaful agents and AmBank branches nationwide. Offers a range of takaful products: Education Group Health Products Protection Reducing Term Savings Takaful ANNUAL REPORT GROWING AND WINNING TOGETHER customers’ needs in this rapidly changing GROWING 2018 AND WINNING world. We are dedicated to keeping in step TOGETHER The vibrant cover of our Annual Report signifies with technological advances and developing our passion for supporting all Malaysians and innovative products and services that working together to help them reach their simplify and enhance our customers’ lives. goals – whatever they may be. AmBank Group’s Chairman, Tan Sri Azman It also reflects our commitment to promoting Hashim, is an avid art collector and he draws diversity, which we embrace both within our parallels between bringing many individual workforce and in the broader community. elements together to create a piece of art, INSIDE like you see on our cover, and our aim to The cover’s modern design is reflective of work cohesively to create an organisation THIS our drive to be agile and responsive to our that draws on all of its parts to create a larger, stronger whole. REPORT MANAGEMENT DISCUSSION AND ANALYSIS SUSTAINABILITY STATEMENT Strategic Review Our Approach to Sustainability 50 Economic and Banking Industry Review Responsible Banking 53 and Outlook 15 Employer of Choice 73 Our Business Model 16 Positive Societal Impact 82 Material Matters Impacting Our Strategy 18 GRI Content Index 89 Key Risks and Mitigation 19 Our Strategy 20 LEADERSHIP FY18 Key Strategic Objectives and Achievements 21 Profile of Directors 91 Key Initiatives Profile of Company Secretary 98 - Customer Experience 21 Profile of Group Senior Management 99 - Human Resources: People, Talent and Culture 22 Profile of Shariah Committee 106 - Integrating Digital Technology 22 Sustainability 22 CORPORATE GOVERNANCE Governance Overview Statement 108 LETTER TO Performance Review SHAREHOLDERS Group Nomination and Group Financial Review by Remuneration Report 117 PAGE 2 Group Chief Financial Officer 23 Audit and Examination Committee Report 128 FY19 Quarterly Results Announcements 26 Risk Management