Our strong brand presence comes from having the abilities and capabilities to deliver superior customer service and sustaining uncompromising standards to ensure we exceed expectations at all times. Delivering In Everything We Do Creating an unmatched legacy in banking and finance, we have grown to become a respected financial institution in Malaysia and remained Your Choice Bank for the past 60 years. Building Through 60 Years of Progressive Growth Our commitment has and will always be on our customers, focusing our attention and energy to create and offer the right products and financial tools whilst providing outstanding value through services. Cultivating For Our Diverse Customers Everywhere The unique synergistic strengths of our people, resounding strategies and product diversification are key factors that have led to our unprecedented expansion and promising growth. Optimising Through Synergistic Strengths Our accomplishments have earned us a reputation for excellence. Exploring new ways in order to move forward, we will embrace opportunities and harness possiblities to strengthen our position and ensure a sustainable future for the Bank, its stakeholders and shareholders. Creating For A Sustainable Future SUSTAINABILITY EXCELLENCE GROWTH INNOVATION VALUE FORTITUDE COMMITMENT COVER RATIONALE More than just about being a bank, we are a leading multinational financial services group that believes in delivering more through everything we do. Our 60 years of commitment has proved to be fruitful and we are now reaping the rewards together. But it doesn’t stop here, we will continue to innovate and improvise, undertake new initiatives, find new ways to create better banking experiences and we believe this is just the beginning of a new journey to deliver more value to you. INSIDE CHAIRMAN’S This Report STATEMENT For us to deliver on our vision – ‘Bank Rakyat, Your Choice Bank’, modern infrastructure, strategic resources that comprise our assets, capacity and talent are the key pre-requisites to drive the Bank towards the successful achievement of our corporate and business objectives. 96 FEATURES Our doors Today, we have were first grown to be the opened in largest Islamic 1954. Co-operative Bank in Malaysia. In Essence Our Quintessential Journey The Vision & The Mission 018 Our Journey 044 Corporate Information 019 Leaders From The Past 046 Business Pillars (Our Aspirations) 020 Board of Directors 048 Our Profile 021 Profile of Directors 050 About Us 026 Shariah Committee 060 Five-Year Performance (Financial) 030 Shariah Committee’s Profile 062 Five-Year Performance (Non-Financial) 031 Management Committee 066 Asset and Liability 2014 & 2013 032 Management Committee’s Profile 068 Our Members 033 Enriching Lives 074 Banking Operation Performance 034 • Transformation of Human Capital 075 Quarterly Performance 2014 & 2013 035 • Our Employees 077 Organisation Chart 037 • Valuing Our People 079 Group Corporate Structure 038 Servicing Our Customers 080 Bank Rakyat and the Government 039 • Exceeding Expectations 080 Performance Against KPIs 040 • Our Diverse Services 081 Notice of Annual General Meeting 041 • Improving Service Standards 082 • Safeguarding Financial Systems Security 083 2014’s Significant Events 084 Media Highlights 088 Achievements & Awards 2014 090 PErfORMANCE REVIEW by 102 MANagiNG DIRECTOR/ PRESIDENT Given the challenging business environment in 2014 where industry players were intensely competing for a bigger slice of market share, Bank Rakyat continues to confound critics to maintain its position as the biggest Islamic Co-operative Bank in Malaysia and the second largest Islamic financial institution based on Shariah assets. From The Top Governance Chairman’s Statement 096 Board of Directors & Main Committee 138 Performance Review by Managing Director/ Audit Committee Report 149 President 102 Risk Management Committee 152 Business Review Shariah Committee Report 156 Shariah Committee Terms of Reference 158 Economic Environment in 2014 112 Our Financial Stability Analysis 114 Financial Statements Giving Back Financial Statements 162 Our Philanthropy 120 Additional Information and Directory Yayasan Bank Rakyat 122 Corporate Office & Branches 312 The Bank’s First International Islamic Bank Rakyat Service Centre 320 Banking Conference 123 Ar-Rahnu X’change 320 Re-defining Communities 124 Subsidiaries 322 • Assisting Entreprenurs 124 Service Agents 323 • Consumer Squad Card 125 Rakyat Xcess & Ar-Rahnu X’change 327 • 1Malaysia Student Discount Card 125 Rakyat Xcess 328 Energising Co-Operatives 128 Susulan Berpusat Selangor 1 (SBS1) 329 • Opportunities in the Franchise Business 128 Agencies under the Ministry of Domestic Trade, • Co-Operative Business Development Seminar 128 Co-operatives and Consumerism 329 • Islamic Credit System Seminar 128 • CO-OP Merchant Card 129 • Bank Rakyat Service Agents 129 • Showcase Cabinet 130 • CO-OP Partner Programme 130 • Memorandum Of Understanding Strategic Alliance Between Bank Rakyat and ANGKASA 131 Community Bonding 132 Enhancing Access To Innovative & Value-Added Financial Services 133 Caring for the Environment 135 IN ESSENCE One day Bank Rakyat will become a major bank and operate as the central bank for the co-operative movement in Malaysia. Royal Professor Ungku Aziz Ungku Abdul Hamid (Bank and Credit Seminar, ANGKASA, Johor Bahru. 27th March 1981) Now in its 60th year, 2014 marks a milestone in the history of Bank Rakyat. The Vision Created on 28th September 1954 as Bank Agong Kampong Berkerjasama- Bank Rakyat is the “Bank of Choice” for its members due to the wide range of sama Persekutuan Tanah Melayu Dengan innovative products and services provided, that outperform those offered by its Bank Rakyat Tanggongan Berhad (Bank Agong), its competitors. The extensive benefits derived from being a part of the Bank Rakyat 60th Anniversary primary aim was to raise the social and story ensures that there is no reason for its’ members to look at other financial economic status of the rural agricultural institutions to fulfil their needs as it is the largest Islamic Co-operative Bank as community, provide opportunities for self- well as the second largest Islamic Bank, in Malaysia. The Bank’s success and 018 improvement and to build a better future for performance gives life to its vision that states: ‘Bank Rakyat Your Choice Bank’ their families as well as their communities for the stability and prosperity of our newly Since its creation in 1954, Bank Rakyat has never wavered from the founding independent nation. principal that to this day continues to be the main purpose behind all the Bank strives to achieve. Its mission, as relevant now as when the Bank was established, The Bank Rakyat of today has reached continues to push the Bank to greater heights to ensure it’s success. and surpassed its founding mandate, not only providing opportunities for the rural communities to prosper and grow through the provisions of financial products and The Mission services while addressing the education needs of its members and their families To help improve the economic well-being of our members by providing financial through the Bank Rakyat Foundation, facilities at an affordable rate for business activities in agriculture, production, but doing all this from a platform of care marketing, industry, fishing, transportation and for purchasing of housing that for its members, stakeholders, customers will be to the benefit of our members and also to promote thrift and savings. and staff through a platform that is 100% Shariah compliant. By-law Article 5(I) Corporate Information CHAIRMAN REGISTERED OFFICE Tan Sri Sabbaruddin Chik Bank Kerjasama Rakyat Malaysia (Until 8 April 2014) Berhad Datuk Mat Noor Nawi Tingkat 35, Menara 1 (From 28 April 2014) Menara Kembar Bank Rakyat No.33, Jalan Rakyat 50470 Kuala Lumpur MANAGING DIRECTOR/ PRESIDENT Datuk Mustafha Hj. Abd Razak AUDITOR Ketua Audit Negara Jabatan Audit Negara Malaysia BOARD OF DIRECTORS No. 15, Aras 4 Datuk Mat Noor Nawi Persiaran Perdana, Presint 2 Pusat Pentadbiran Kerajaan Datuk Mustafha Hj. Abd Razak Persekutuan Dato’ Sri Alias Hj. Ahmad 62518 Putrajaya Tel : 03-8889 9000 Dato’ Abdul Mutalib Alias Fax : 03-8888 9721 Bank Rakyat Dr. Roselan Baki 2014 CO-OPERATIVE Annual Report Tuan Haji Abdul Rahman Kasim REGISTRATION NUMBER Tan Sri Dr. Alies Anor Abdul 2192 019 Datuk Mohd Idris Mohd Isa CORPORATE OFFICE Dato’ Abdullah Abas Bank Rakyat Tingkat 35, Menara 1 Menara Kembar Bank Rakyat No.33, Jalan Rakyat BANK SECRETARY 50470 Kuala Lumpur Datin Suria Che Selia Tel : 03-2612 9600 WEBSITE www.bankrakyat.com.my Business Pillars Our Aspira tions Bank Rakyat 60th Anniversary 020 Customers Members Islamic (Shareholders) Principles To conduct business in a fair and To ensure continuous success by To provide an exemplary Islamic transparent manner by providing collectively directing the company’s financial system by providing Shariah compliant banking affairs, whilst maintaining Shariah compliant financial services and products that offer a shareholders confidence by services which are exceptional, prompt, courteous and effective ensuring the appropriate interests recognised and trusted with the service and focuses on sound of shareholders and stakeholders aim of being acknowledged as corporate governance and are met. Additionally, to deal with a model Islamic development responsible lending. issues relating to business, finance, finance institution. corporate governance, corporate social responsibility and corporate ethics in a transparent manner.