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NURTURING

TOMORROW
ANNUAL REPORT 2015
NURTURING
TOMORROW
We have a passion for nurturing. In nurturing the young, we
reap the rewards today and, vitally, tomorrow. In nurturing
our Bank, we are where we are today - the biggest Islamic

recognised. We nurture an innovative culture. We nurture


our employees. But we do not end with us. We nurture our

and services they need. So they can nurture their businesses,


their dreams, their families. We nurture the youth of the
nation. They are all part of our larger glorious heritage. We do
not just plant the seeds. We nurture them until they grow,

heritage and enduring is all about. And we intend to continue


doing so.
VISION OUR VALUES
Bank Rakyat is its memBeRs ChoiCe Bank

R=
foR all its pRoduCt and seRviCe offeRings RajIn
aRe the Best CompaRed with those
pRovided By otheR Competing finanCial

A=
institutions. sinCe memBeRship in
Bank Rakyat is veRy signifiCant, theRe is aManah
no Reason foR them to look at otheRs.
this vision geneRates the tagline :-

K=
Bank Rakyat youR ChoiCe Bank
KoMpeTen

MISSION
Y=
YaKIn
to help impRove the eConomiC
well-Being of memBeRs By pRoviding

A=
finanCial faCilities at an affoRdaBle Rate aKhlaK MUlIa
foR agRiCultuRe, pRoduCtion, maRketing,
industRy, fishing, tRanspoRtation, (Exemplary Behaviour)
housing and Business aCtivities deemed

T=
BenefiCial to memBeRs and to also TaKwa
pRomote thRift and savings.
(God-conscious)
By-law article 5(i)
CORPORATE INFORMATION
ChaIRMan BoaRD of DIReCToRs
General Tan Sri DaTo Sri abDul aziz zainal (r) General Tan Sri DaTo Sri abDul aziz zainal (r)
(FroM 16 JulY 2015) DaTo MuSTaFha hJ. abD. razak
DaTo' MaT noor naWi DaTo Sri aliaS hJ. ahMaD
(unTil 15 JulY 2015) DaTo SiTi zauYah MD. DeSa
Tan Sri Dr alieS anor abDul
ManagIng DIReCToR/pResIDenT DaTuk hJ. abDul rahMan kaSiM
DaTuk hJ. MohD. iDriS hJ. MohD. iSa
DaTo MuSTaFha hJ. abD. razak DaTo hJ. abDullah hJ. abaS
DaTo hJ. iSMail norDin
razalee aMin
DaTo' abDul MuTalib aliaS (unTil 31 DeCeMber 2015)
DaTo' roSelan baki (unTil 14 aPril 2016)

BanK seCReTaRY
liza roS DaMSi (FroM 1 DeCeMber 2015)
DaTin Suria Che Selia (unTil 1 DeCeMber 2015)
RegIsTeReD offICe CoopeRaTIve RegIsTRaTIon nUMBeR
bank kerJaSaMa rakYaT MalaYSia berhaD 2192
TinGkaT 35, Menara 1
Menara keMbar bank rakYaT CoRpoRaTe offICe
no. 33, Jalan rakYaT
50470 kuala luMPur bank rakYaT
TinGkaT 35, Menara 1
Menara keMbar bank rakYaT
aUDIToR
no. 33, Jalan rakYaT
keTua auDiT neGara 50470 kuala luMPur
JabaTan auDiT neGara MalaYSia Tel : 03-2612 9600
no. 15, araS 4
PerSiaran PerDana, PreSinT 2
weBsITe
PuSaT PenTaDbiran keraJaan PerSekuTuan
62518 PuTraJaYa www.bankrakyat.com.my
Tel : 03-8889 9000
Fax : 03-8888 9721
OUR BUSINESS PILLARS

MEMBERS ISLAMIC
CUSTOMERS (SHAREHOLDERS) PRINCIPLES

To conduct business in a fair and To ensure continuous success by To uphold an exemplary Islamic
transparent manner by providing collectively directing the companys financial system by providing
Shariah compliant banking affairs, whilst maintaining Shariah compliant financial
services and products, to offer shareholders confidence by services that are exceptional,
prompt, courteous and effective ensuring the appropriate interests recognised and trusted, with the
services, and to focus on sound of shareholders and stakeholders aim of being acknowledged as a
are met. Further, to deal with issues model Islamic development
corporate governance and
relating to business, finance, finance institution.
responsible financing. corporate governance, corporate
social responsibility and corporate
ethics in a transparent manner.
COOPERATIVE
SOCIETY MOVEMENT NATION

To effect positive changes in To steer the development and To be a responsible corporate


society by providing financial advancement of the cooperative citizen that is not just driven by
services and corporate social movement, and contribute to profit, but more notably, bringing
responsibility activities that will making the cooperative positive changes to the economy,
elevate the standard of living and movement a force in the generating jobs and spearheading
well-being of Malaysians. economic growth of the nation. economic activities that will assist
Malaysia in achieving developed
nation status with a high-income
economy.
NURTURING TOMORROWS
NURTURING TOMORROWS DREAMS
the young will always be close to
our hearts
they are our most precious resource. they are citizens of
today, and our nations future depends on them. how we nurture
them and what we do for them determines their outcomes and
potential in life.

our young are the future economic


actors whose financial decisions will
dictate the future of world economies
Children are also an important stakeholder for us - as present
and future consumers, family members of our customers and the opportunity to build customers for life. one of our choices
employees, and as future employees and business leaders. and in recruiting new customers is to nurture. Recruit at a young age,
they will be the people who will generate the wealth to support develop and maintain the relationship.
our services as we grow with them. and help grow the nation.
the children we nurture today will grow into economically productive,
almost every business activity can leave a footprint on childrens
lives which is why we work towards ensuring our footprints have tomorrow.

of their dreams.
it follows then that we do not only think of ourselves. we look
as we are a bank that is passionate about nurturing, through at the broader picture. after all, we have a responsibility to our
our products, services and CsR initiatives, we offer children the nation too.
realization of dreams. we engage in activities
aimed at nurturing and supporting children,
who represent our future.
so, we nurture childrens dreams for
tomorrow in many ways
we also hold seminars and workshops to aid students achieve
in march 1986, we launched nuri account (now called nuri better grades, to motivate them to be the best they can be, and
savings-i account), a shariah compliant savings account for
children to encourage the savings habit from a very young age
and to encourage parents to start saving for their childrens to nurture creativity and innovation, we held six Robokid workshops
future. account holders range from babies a day old to for primary and secondary schoolchildren in 2016. these aimed
12 years old. at developing creativity and innovation in technology.

even a small savings account can change the way that children our colouring contest in 2015 also helped children unleash their
and parents think about their future and gaining higher education. creativity. a number of them won vouchers worth Rm1,000, Rm700
having an account can have a positive effect on the nurturing and Rm500, which were deposited for them into their nuri
of childrens dreams for their future. therefore, we create a

sports undoubtedly nurtures good health, team spirit and


their dreams for tomorrow a reality. camaraderie in the young. our football competitions for
schoolchildren aim to do just that as they are all requisites for a
gaining an education certainly helps children dream big and realise better today and tomorrow.
their dreams. we understand that very well. underprivileged
children gain extra help in their education through our tuition these are just some of our initiatives in nurturing our children.
Rakyat programme. 64% of the children at these classes improved
their grades, helping them to realize their dreams of a better we nurture families, our bank and the nation as well.
tomorrow through education.
so, while we let our children have free reign dreaming
for tomorrow, we nurture our children towards
realizing their dreams, no matter how big. and
we are passionate about that.
what's inside
FROM OUR LEADERS 1 80 ELEvAtINg LIvES: OUR CORPORAtE SOCIAL
ChAIRMANS StAtEMENt 2 INItIAtIvES
MANAgINg DIRECtOR/PRESIDENtS PERFORMANCE REvIEw 6 84 YAYASAN BANK RAKYAt: NURtURINg FOR SUCCESS tOMORROw
89 BANK RAKYAt CSR ACtIvItIES
BANK RAKYAt At A gLANCE 13
A SNAPShOt 14 93 NURtURINg OUR CUStOMERS
FROM OUR BEgINNINgS tO OUR PRESENt 15
2015 ACCOLADES 20 97 gROwINg ENtREPRENEURS
2015 US IN thE MEDIA 22 98 MICRO FINANCINg-i
ORgANISAtION ChARt 24 102 MALAYSIA StUDENt DISCOUNt CARD
gROUP CORPORAtE StRUCtURE 26 102 CONSUMER SQUAD CARD
BANK RAKYAt AND thE gOvERNMENt 27
FIvE-YEAR PERFORMANCE (FINANCIAL) 28 103 NURtURINg thE UMMAh
FIvE-YEAR PERFORMANCE (NON-FINANCIAL) 29 105 SURAU AL-BARAKAh
ASSEtS AND LIABILItIES 30 107 ShARIAh CSR PROgRAMMES
SEgMENtAL ANALYSIS FOR BANK EARNINgS 30 107 hUMANItARIAN MISSION tO CAMBODIA
OUR MEMBERS 31 108 REPAIR AND CONStRUCtION OF hOMES
BANKINg OPERAtION PERFORMANCE 31
DIvIDEND 32 109 NURtURINg ISLAMIC BANKINg
QUARtERLY PERFORMANCE 32
113 EMPOwERINg COOPERAtIvES
OUR LEADERShIP tEAM 33
BOARD OF DIRECtORS 34 119 CORPORAtE gOvERNANCE
BOARD OF DIRECtORS PROFILE 36 120 BOARD OF DIRECtORS AND MAIN COMMIttEES
ShARIAh COMMIttEE 44 136 AUDIt COMMIttEE REPORt
ShARIAh COMMIttEE'S PROFILE 46 142 RISK MANAgEMENt COMMIttEE
MANAgEMENt COMMIttEE 50 145 ShARIAh COMMIttEE tERMS OF REFERENCE
MANAgEMENt COMMIttEE'S PROFILE 52
149 NOtICE OF ANNUAL gENERAL MEEtINg
ECONOMIC AND BUSINESS REvIEw 2015 55
151 FINANCIAL StAtEMENtS
NURtURINg OUR BUSINESS 61
281 ADDItIONAL INFORMAtION AND DIRECtORY
NURtURINg A CULtURE OF INNOvAtION 64
INItIAtIvES tO ENCOURAgE INNOvAtION 66
OUR PRODUCt AND SERvICE INNOvAtIONS 68

NURtURINg OUR tALENt 70


hR MISSION AND vALUES 72
hR tRANSFORMAtION PROgRAMME 72
NURtURINg LIFELONg LEARNINg 76
NURtURINg wELL-BEINg 77
CLOSINg thE gENDER gAP 78
FROM
OUR LEADERS
GENERAL TAN SRI DATO SRI
ABDUL AZIZ ZAINAL (R)
Chairman

chairman's
statement
Dear Members and Shareholders
Alhamdulillah. All praise and thanks to Allah the Almighty.
Bank Rakyat successfully weathered the waves of uncertainty and myriad challenges
faced by the Malaysian economy in 2015. The economy registered moderate growth of
around 5% and we were not spared from feeling the impact of external developments
and the continued slide in crude oil prices and weakening of our currency. However,
I am extremely pleased that despite the challenging operating environment, we
remained on track and sustained our growth trajectory thanks to the strength of our
leadership team, the commitment of our employees and the steadfast confidence
and loyalty of our customers.
chairmans
statement
I am thus pleased to report that 2015 was a year of continued
progress for Bank Rakyat. Despite a challenging year, Bank integrity, and empathy, grounded in respect. This is how

amounted to RM443.50 million.

future.

We managed to stay our path of growth as a result of our focus

and the capacity to meet the challenges and seize the


opportunities that lie ahead.
of our culture and purpose.

conscious of these risks, and our Board of Directors considers

MOST OUTSTANDING
I S L A M I C
RETAIL BANKING AND
MOST OUTSTANDING
I S L A M I C
PAW N B R O K I N G
Kuala Lumpur Islamic Finance Forum 2015

bank rakyat
annual report
2015
03
chairman's
statement

ConfidenCe in the future our AppreCiAtion

While we expect the economic conditions in the markets in which


the Bank operates to remain challenging, we have the utmost

also deserves commendation for spearheading our continued

and continued innovation in our products, services and processes


will allow us to make the most of the opportunities ahead as we

stakeholders and customers and of forging and nurturing long-term

the relationships we have with all our stakeholders into a win-win

BEING YOUR CHOICED BANK IS ABOUT BUILDING ON THOSE


ASPIRATIONS AND EXPECTATIONS AND AUGMENTING THE
RELATIONSHIPS WE HAVE WITH ALL OUR STAKEHOLDERS
INTO A WIN-WIN FORMULA. WE AIM TO DO JUST THAT.

bank rakyat
04 annual report
2015
chairmans
statement

WHILE WE EXPECT THE ECONOMIC CONDITIONS IN THE MARKETS


IN WHICH THE BANK OPERATES TO REMAIN CHALLENGING,
WE HAVE THE UTMOST CONFIDENCE THAT THE BANKS
MANAGEMENT AND EMPLOYEES WILL CONTINUE TO DELIVER
SUPERIOR PERFORMANCE AND MAINTAIN THE BANKS STRONG
FINANCIAL PERFORMANCE AND PROSPECTS.

bank rakyat
annual report
2015
05
DATO MUSTAfHA HJ. ABD. RAZAK
Managing Director/President

managing director/president's
performance
review
Alhamdullilah, with the grace and blessings of Allah the Almighty, Bank Rakyat
continued to make steady progress in 2015 towards achieving our strategic
objectives despite intense competition. We surpassed a number of our short-term

been against a backdrop of challenging and volatile domestic and global economic
conditions and waves of constant change and uncertainty.
managing director/presidents
performance review

for which in 2015 was 1.3%.

nations economy as a whole due to the impact of internal and

to the increase in the cost of funding to depositors despite

WE GO FURTHER BY ANTICIPATING OUR CUSTOMERS NEEDS; WE WORK


UNCEASINGLY TOWARDS THE CREATION OF NEW AND INNOVATIVE
PRODUCTS AND SERVICES FOR THEIR BENEFIT AND CONVENIENCE AND
TO HELP FULFIL THEIR FINANCIAL GOALS. THIS IS CRUCIAL AS CUSTOMER
NEEDS AND WANTS ARE BECOMING INCREASINGLY SOPHISTICATED AND
CHANGE CONTINUOUSLY AND THEY DEMAND MUCH MORE OF US. WE ARE
STRONG ON NURTURING OUR CLIENTS AND MEETING THEIR NEEDS.
AFTER ALL, THEY ARE THE YOU IN OUR TAGLINE YOUR CHOICE BANK.

customers

6.01 MILLION

bank rakyat
annual report
2015
07
managing director/presidents
performance review

underpin our performance and provide a strong foundation for


our continued success and without whom we would not have come

We are proud of their commitment to serve the needs of our

bank rakyat
08 annual report
2015
managing director/presidents
performance review
foCus on Customers foCus on prudent mAnAgement And prACtiCes

rd

success of our earlier two phases, ensuring we can look forward

customers to us and strive towards projecting this in all their Our comprehensive and detailed three-phase transformation

Our key strengths of customer focus, financial


strength, prudent asset management and banking
practices, a culture of innovation, and a passion
for nurturing drive our success. These strengths
underpin our performance and provide a strong
foundation for future growth and sustainability.

bank rakyat
annual report
2015
09
managing director/presidents
performance review
foCus on innovAtion

Our focus on innovation will help us to continue to move forward

products and services that will allow us to meet future demand to gain instant access to information on our products and services

users to keep track of their savings and expenditure, empowering

Innovation helps us discover the opportunities that exist,


or which are likely to emerge in the future. It is imperative
that we not only respond to our current customer or
organisational needs, but also anticipate future trends
and develop ideas, products and services that will allow us
to meet future demand rapidly and effectively. Innovation
will help us stay ahead of our competition as markets,
technologies or trends shift rapidly.
bank rakyat
10 annual report
2015
managing director/presidents
performance review
foCus on nurturing

we help steer them towards accumulating savings, starting

focuses on the training and development of all levels of

Children who save early are


health and team spirit through sports competitions, their education much more likely to dream of
attaining higher education and
accomplishing big in their future.
We help them do just that.

bank rakyat
annual report
2015
11
managing director/presidents
performance review
nurturing islAmiC BAnking our ACColAdes

customer relationships, deliver more innovative products

reach a common agreement to facilitate the smooth running of

these discussions as a reference for scholars, practitioners and

and for whom we shall continue to work towards more innovative

and commitment to the Bank and working towards achieving

bank rakyat
12 annual report
2015
BANK RAKYAT
AT A GLANCE
A SNAPSHOT

Most Outstanding Islamic Cooperative Bank


Islamic Retail Banking and in Malaysia
Most Outstanding
Islamic Pawn Broking Islamic Banker of the Year 2015
(Kuala Lumpur Islamic Finance Forum 2015) (Global Islamic Finance Award (GIFA))

Strongest Islamic Retail Bank Most Innovative


in Asia Pacific Islamic Banking in Malaysia 2015
(International Retail Banking Awards) (International Finance Magazine)

NO.
BrandLaureate Industry Excellence Award in
Transformational Corporate Leader Corporate Social Responsibility
Brand Icon Leadership Award 2015 (Utusan Business Awards 2015)

Largest Islamic Financial Institution in Malaysia in Terms of Assets


NO.

6.01 million 907,918 5,135


Customers Shareholders Employees

960 148 95
ATM/CDM Branches Ar- Rahnu
Terminals Xchange

RM92.29 RM2.98 RM37.34


billion billion million
Total Assets in 2015 Members Share Capital Zakat Allocation

bank rakyat
14 annual report
2015
frOm Our begiNNiNgS TO Our PreSeNT

We started as a consortium of 11 union banks on 28 September 1954 registered under the Cooperative Ordinance 1948
(now known as the Cooperative Societies Act 1993). Then known as Bank Agong Kampong Berkerjasama-sama Persekutuan
Tanah Melayu Dengan Tanggongan Berhad (Bank Agong), we were given the mandate to raise the social and economic
status of rural communities, provide opportunities for self-improvement and to build a better future for their families
as well as their communities for the stability and prosperity of our nation.

non-members as well.

But, they had the noble vision of reducing the social inequalities in our rural society via the cooperative movement.
This vision we keep alive.

bank rakyat
annual report
2015
15
frOm Our begiNNiNgS
TO Our PreSeNT

unyielding courage, formidable spirit and commendable


achievements. In forging our success, our vision, mission and
values remain our teams pulse and thrust forward, enabling The historic moment was broadcast live on national TV.
us to achieve many developmental milestones since our At the end of the ceremony, he announced that the road
establishment.

Our move to our iconic Menara Kembar Bank Rakyat (MKBR)

remarkable growth and success. It was also in keeping with


our new commitment, New Face, New Era, New Aspirations Banks employees.
(Wajah Baharu, Era Baharu dan Aspirasi Baharu).

MENARA KEMBAR BANK RAKYAT (MKBR) the launch of the Bank Rakyat-Bangsar Station through
a partnership with Prasarana Malaysia Berhad (Prasarana),
TOWER 1 TOWER 2
36-STOREY 32-STOREY
services. Our obtaining naming rights for the station
represented not only a strategic move to strengthen

426,433 SQ FT 395,958 SQ FT
the Bank Rakyat brand, it also represented one of our
Corporate Social Responsibility Programme initiatives
towards the development of the public transport sector
by encouraging the use of public transport as an

Solid Financial Performance

among the highest rating given to a Malaysian banking


institution. The rating underscores our remarkable growth,
uncompromising and prudent asset management and

A Giant in Islamic Banking

In 1993, we made the momentous move towards becoming

converted all our conventional assets to comply with Shariah


guidelines.

Today, we stand proud as Malaysias largest Islamic cooperative

on assets, earning us the honour of a unique niche in the

We were also among the pioneer operators of Islamic pawnshop


outlets with our Ar-Rahnu Xchange.

bank rakyat
16 annual report
2015
frOm Our begiNNiNgS
TO Our PreSeNT

Our Customer Focus

Bank Rakyat is the Choice Bank of our members. And no


wonder. We offer services unsurpassed by those of other cash deposit machines (CDMs) nation-wide. We are also a
member of the MEPS ATM network which allows our account

in Malaysia.
Your Choice Bank.
As part of our ongoing evolution, we focus on offering banking
Our growing array of innovative Shariah compliant retail services wherever our clients are. We utilise the internet
and social media platforms to bring us closer to our
services include savings and investments, credit card-i, customers and the public. Our customers can perform
debit card-i, Islamic pawn broking, property, hire purchase, numerous banking transactions through our internet
Takaful, wealth planning, corporate deposits, childrens portal www.irakyat.com.my and obtain the latest information
on our new corporate website at www.bankrakyat.com.my
individuals, corporations, businesses, small and medium scale as well as engage with us through social media
enterprises (SME), micro enterprises and rural industries. platforms such as www.facebook.com/myBANKRAKYAT,
twitter.com/myBANKRAKYAT and instagram.com/myBANKRAKYAT.
We also operate our contact centre, tele-Rakyat that can be
by our own Shariah Committee and adhere strictly to

Malaysia (BNM). Our focus is clearly to meet the needs


of a wide spectrum of increasingly sophisticated and
demanding customers.
these numbers will grow.

bank rakyat
annual report
2015
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frOm Our begiNNiNgS
TO Our PreSeNT
Innovative Award-Winning

be prudent yet to also take bold steps in moving forward. received provide clear testimony that we are certainly
We have successfully embedded a culture of innovation no mediocre industry player.
in our Bank. This is evidenced by our bold initiatives to
introduce innovative products, all of which have reaped
successes. Global Islamic Finance Award (GIFA) and Most Innovative
Islamic Banking in Malaysia by International Finance
Magazine. Our other laurels during the year were Most
of its kind in Malaysia. This allows our customers to manage Outstanding Islamic Retail Banking and Most Outstanding
their current accounts electronically. Doing away with cheques

International Retail Banking Awards. Not only that,

based on Shariah principles. Customers and non-customers


can download it for free, allowing them instant access
to information on our products and services at a click. Responsibility. All these were just a continuation of our
No waiting, no queuing. An important plus is it is a tool to winning streak, additions to the awards we received in
previous years.
a growing market for us. TouchStyle also enables users to
Driving Malaysias Cooperatives

These are just some of our innovations. We have also initiated economy and Bank Rakyat is the second largest contributor
innovations in our services and work procedures to enhance emanating from the cooperative sector. As an entity under
the control of the Ministry of Domestic Trade, Co-
You can read about them in the section Nurturing a Culture operatives and Consumerism, we are committed to support
of Innovation in a later part of this Report. the mission of the Ministry to consolidate the cooperative
sector as the mainstay of economic growth of the nation
through all the efforts and steps that we have initiated and
implemented.

and their members nurture their growth, aiding them to


develop and enhance their businesses and performance.

WE OFFER SERVICES UNSURPASSED BY THOSE OF OTHER


FINANCIAL INSTITUTIONS. OUR MANY AND VARIED REWARDS
AND BENEFITS GIVE OUR MEMBERS ABSOLUTELY NO REASON
TO GO ANYWHERE ELSE. THIS IS REFLECTED IN OUR CORPORATE
TAGLINE BANK RAKYAT YOUR CHOICE BANK.
bank rakyat
18 annual report
2015
frOm Our begiNNiNgS
TO Our PreSeNT
Passion for Nurturing

We have many differentiating factors. Factors that set us We nurture almost everybody. In the end, its a win-win
apart from our competitors. One important differentiator is
our passion for nurturing for a better tomorrow. reaps rewards all round.

We nurture almost everybody and in a variety of ways.


We nurture the young to realize their dreams of a better and stakeholders. Our success story and glorious heritage
will ensure we continue to evolve from being just a
society and to the country. They will be tomorrows
leaders, doctors, engineers, entrepreneurs, etc. They are
an asset to the country and to our Bank. Our Nuri
savings plan for children sets them on track, encouraging We have been engraved distinctly in Malaysias banking history
them to save while dreaming big for the future. Some of for our emergence as the leading Islamic cooperative bank
the CSR programmes we have for children nurture today. And although we have reached and surpassed our
founding mandate, we will not rest on our laurels.
motivating them to be the best they can, to unleash their
creativity, to be innovative, develop team spirit, and
Bank.
well-being will result in a better tomorrow for all.

We nurture families by offering them diverse and innovative

to buy a home, to start a business and more. All for their


own and their families future well-being. We nurture those
with an entrepreneurial spirit to start their business
ventures be they big, small or medium-sized. We
nurture our employees to grow in their careers and in
their personal lives. We nurture our Bank through
our innovation, our prudent cost, risk and asset management,
and ethical banking practices.

bank rakyat
annual report
2015
19
2015 ACCOLADeS

bank rakyat
20 annual report
2015
2015 ACCOLADeS

ISLAMIC BANKER STRONGEST MOST OUTSTANDING MOST OUTSTANDING


OF THE YEAR ISLAMIC RETAIL BANK ISLAMIC RETAIL ISLAMIC
2015 IN ASIA PACIFIC BANKING PAWN BROKING
2015
Global Islamic International Kuala Lumpur Kuala Lumpur
Finance Award Retail Banking Islamic Finance Islamic Finance
(GIFA) Awards Forum Forum
2015 (KLIFF) 2015 (KLIFF)

BRANDLAUREATE MOST INNOVATIVE INDUSTRY EXCELLENCE RAM


TRANSFORMATIONAL ISLAMIC BANKING AWARD IN FINANCIAL
CORPORATE LEADER IN MALAYSIA CORPORATE INSTITUTION
BRAND ICON 2015 SOCIAL RATINGS
LEADERSHIP AWARD RESPONSIBILITY
2015
BrandLaureate International Finance Utusan AA2/Stable/P1
Magazine Business Awards
2015

bank rakyat
annual report
2015
21
2015 uS iN THe meDiA

JANUARY 2015

FEBRUARY 2015

MARCH 2015

APRIL 2015 JUNE 2015

bank rakyat
22 annual report
2015
2015 uS iN THe meDiA

JULY 2015 AUGUST 2015

SEPTEMBER 2015 NOVEMBER 2015

DECEMBER 2015

bank rakyat
annual report
2015
23
OrgANiSATiON CHArT
CHIEF OFFICER

CHIEF
OPERATING
OFFICER

CHIEF RETAIL CHIEF BUSINESS CHIEF CHIEF


BANKING BANKING CORPORATE HUMAN CAPITAL
OFFICER OFFICER SERVICES OFFICER
OFFICER

PRODUCTS & BRANCH CORPORATE RECOVERY/ HR STRATEGY &


SECTOR

OPERATIONS
SERVICES NETWORK BANKING REHABILITATION PLANNING

QUALITY
MANAGEMENT

CORPORATE CORPORATE MANPOWER


RETAIL BRANCH CARD SALES BRANCH PLANNING &
MD OFFICE BANKING SERVICE
FINANCING OPERATIONS BUSINESS MANAGEMENT SURVEILLANCE ORGANISATION
(PRIVATE) ADMINISTRATION
DESIGN

LEGAL
REGIONAL HEAD REGIONAL HEAD CORPORATE
REGIONAL HEAD REGIONAL HEAD
WILAYAH 2 WILAYAH 3 BANKING ORGANISATION
WILAYAH 1 WILAYAH 4
(KUALA LUMPUR/ (KEDAH/PERLIS/ (GOVERNMENT/ DEVELOPMENT
(SELANGOR) (MELAKA/JOHOR)
PUTRAJAYA) P.PINANG) GLC)
DIVISION

SPECIAL
PROJECTS

REGIONAL HEAD REGIONAL HEAD


REGIONAL HEAD REGIONAL HEAD REGIONAL HEAD
WILAYAH 6 WILAYAH 7 HR OPERATIONS
WILAYAH 5 WILAYAH 8 WILAYAH 9
(KELANTAN/ (PAHANG/NEGERI
(SABAH) (PERAK) (SARAWAK)
TERENGGANU) SEMBILAN)

bank rakyat
24 annual report
2015
BOARD OF
DIRECTORS

CHAIRMAN RISK AUDIT &


SHARIAH
MANAGEMENT EXAMINATION
COMMITTEE
COMMITTEE COMMITTEE

MANAGING
DIRECTOR/
PRESIDENT

CHIEF
CHIEF CHIEF
STRATEGY & CHIEF RISK
IT OFFICER FINANCE
TRANSFORMATION OFFICER
OFFICER
OFFICER

CHIEF MARKETING & BANK COMPLIANCE & MARKET & CHIEF


CREDIT RISK OPERATIONAL INTERNAL
TREASURY COMMUNICATION SECRETARY GOVERNANCE
RISK AUDIT

INVESTIGATION
PORTFOLIO
IT OPERATION CORPORATE FINANCE & MEMBERS OPERATIONAL & BRANCH SHARIAH
INVESTMENT
MANAGEMENT STRATEGY REPORTING FUNCTION RISK OPERATION COMPLIANCE
MANAGEMENT
AUDIT

CORPORATE ASSET LIABILITY FUNDING MANAGEMENT


IT SOLUTIONS &
PERFORMANCE & CAPITAL CURRENCY & GOVERNANCE
DEVELOPMENT
& TMO MANAGEMENT MANAGEMENT AUDIT

IT PLANNING, TREASURY
SALES & STRATEGIC
STRATEGY & PMO AUDIT
DISTRIBUTION

IT SYSTEM & TREASURY


CHANNEL OFFICE

bank rakyat
annual report
2015
25
grOuP COrPOrATe STruCTure

bank rakyat
26 annual report
2015
bANk rAkyAT AND THe gOverNmeNT

Ministry of Domestic Trade,


Ministry of Finance Central Bank of Malaysia
Co-operatives and Consumerism
Bank Kerjasama Rakyat Malaysia Berhad Act The Development Financial Institutions Act 2002
(Special Provision) 1978

Cooperative Act 1993

Your Choice Bank


By-Law

bank rakyat
annual report
2015
27
five-yeAr PerfOrmANCe (fiNANCiAL)

(RM Billion) (RM Billion) (RM Billion)

2.00
1.75
1.91
1.96

1.78
2.02
2.13
2.13
2.16

1.96
5.50
6.23
6.07
5.98

6.33

Total Income Profit Before Profit After


Taxation and Zakat Taxation and Zakat

(RM Billion) (RM Billion)


70.98
58.51

49.18
62.67
65.30
68.52

55.23
57.30
60.48

63.14

Deposits and Savings Financing


and Advances

(%) (%) (%)


2.82
2.52
2.22
2.04
25.10

25.57
25.08

1.89
30.07
27.14
28.28
23.04
19.84
18.21

14.99

Return on Cost to Income Gross Impaired


Shareholders Fund Financing Ratio

bank rakyat
28 annual report
2015
five-yeAr PerfOrmANCe (NON-fiNANCiAL)

( Million )

35
51

95
76
90
6.01
4.74
5.05
5.36
6.00
134
140

148
144
147

2011 2012 2013 2014 2015

Branches Customers Ar-Rahnu Xchange


Bank Rakyat
615
724

960
827
895

4,150
4,248
4,695
4,640

5,135

ATM/CDM Employees
46
62

89
70
75
486,253
623,209
667,347
604,832

1,114,150
135,130
169,986
172,361
158,084

104,671

Registered i-Rakyat Contact Centre Bank Rakyat


Customers Enquiries Service Agents

bank rakyat
annual report
2015
29
ASSeTS AND LiAbiLiTieS
Asset
Deposits and Placements
with Financial Institutions 1.0% 0.2%
Financial Investments Portfolio
26.0% 25.8%
Cash and Short-Term Funds 2.1% 3.5%
Financing and Advances 68.4% 67.8%
Other Assets 2.5% 2.7%
2015 2014

Deposits from Customers


Liability and Equity
Deposits and Placements from 76.9% 76.8%
Banks and Financial Institutions
Debt Securities Issued and
2.1% 2.0%
Other Fund Sources 4.6% 5.5%
Other Liabilities 1.6% 1.8%
Share Capital
3.2% 3.3%
11.6% 10.6%
Other Reserves 2015 2014

SegmeNTAL ANALySiS fOr bANk eArNiNgS


2015 2014
Percentage RM000 Percentage RM000
Consumer Banking 64.4 4,073,972 65.2 3,897,398
Commercial Banking 5.4 339,241 6.5 388,412
Fee-Based 1.0 63,600 1.0 63,036
Ar-Rahnu 3.7 231,862 4.2 248,587
Others 25.5 1,617,305 23.1 1,383,772

bank rakyat
30 annual report
2015
Our memberS
Total Members (Individual and Cooperative): 2010-2015
CATEGORY
YEAR TOTAL
INDIVIDUAL COOPERATIVE
2015 905,790 2,128 907, 918
2014 922,452 2,099 924,551
2013 941,383 2,081 943,464
2012 945,522 2,019 947,541
2011 924,941 1,637 926,578
2010 756,942 1,414 758,356

Total Capital (Individual and Cooperative): 2010-2015


CATEGORY
YEAR TOTAL
INDIVIDUAL COOPERATIVE (RM MILLION)
(RM MILLION) (RM MILLION)

2015 2,815.74 168.18 2,983.92


2014 2,809.03 163.77 2,972.80
2013 2,814.17 159.50 2,973.67
2012 2,714.29 150.71 2,865.00
2011 2,244.84 104.22 2,349.06
2010 1,915.12 79.84 1,994.96

bANkiNg OPerATiON PerfOrmANCe

Consumer Banking
64.4% 65.2%
Commercial Banking
5.4% 6.5%
Fee-Based 1.0% 1.0%
Ar-Rahnu 3.7% 4.2%

Others 25.5% 23.1%


2015 2014

bank rakyat
annual report
2015
31
DiviDeND
(RM Million)

495.06

443.50
435.22

441.05
428.48
398.00
2015
2014
2013
2012
201 1
2010

QuArTerLy PerfOrmANCe

2015 Q1 Q2 Q3 Q4
Income RM1.38bil RM1.39bil RM1.42bil RM1.43bil
Operating Expenditure RM0.65bil RM0.72bil RM0.73bil RM0.74bil
Net Income RM0.72bil RM0.67bil RM0.69bil RM0.69bil
RM0.54bil RM0.57bil RM0.51bil RM0.34bil
RM0.48bil RM0.46bil RM0.53bil RM0.31bil

2014 Q1 Q2 Q3 Q4
Income RM 1.33bil RM1.34bil RM1.34bil RM1.40bil
Operating Expenditure RM0.46bil RM0.50bil RM0.55bil RM0.64bil
Net Income RM0.87bil RM0.83bil RM0.79bil RM0.76bil
RM0.53bil RM0.58bil RM0.54bil RM0.51bil
RM0.46bil RM0.50bil RM0.50bil RM0.49bil

bank rakyat
32 annual report
2015
OUR
LEADERSHIP
TEAM
board of
directors
DATO
HJ. ABDULLAH HJ. ABAS

DATUK DATO SRI GENERAL TAN SRI DATO SRI


HJ. ABDUL RAHMAN KASIM ALIAS HJ. AHMAD ABDUL AZIZ ZAINAL (R)
Chairman

bank rakyat
34 annual report
2015
DATO DATO RAZALEE AMIN LIZA ROS DAMSI
SITI ZAUYAH MD. DESA HJ. ISMAIL NORDIN Bank Secretary

DATO TAN SRI DATUK


MUSTAFHA HJ. ABD. RAZAK DR ALIES ANOR ABDUL HJ. MOHD. IDRIS HJ. MOHD. ISA
Managing Director/President

bank rakyat
annual report
2015
35
board of directors'
+p+r+o+f+ile

GENERAL TAN SRI DATO SRI ABDUL AZIZ ZAINAL (R)


Chairman
AGE: 65
EDUCATION PREVIOUS POSITIONS HELD
Honorary Doctorate in Management from University Malaysia Ambassador of Malaysia to France, accredited Monaco and
Sabah Portugal
Honorary Doctorate in Management from Universiti Tun Abdul Chairman of Perwira Harta at Lembaga Tabung Angkatan
Razak Tentera Asset Development
Masters in Management, Asian Institute of Management, Chief of Defence Forces Malaysia (General)
Philippines Chief of Malaysian Army (General)
Graduate in Defence Studies, Defence College Malaysia Corps Commander, Malaysian Army (Lieutenant General)
Graduate of Armed Forces Staff College Malaysia 3rd Army Division Commander (Lieutenant General)
4th Mechanized Brigade Commander (Brigade General)
APPOINTED AS DIRECTOR Chief of Staff Army Headquarters (Brigade General)
First appointment:
16 July 2015 15 July 2017
OTHER POSITIONS HELD IN THE BANK RAKYAT GROUP
Chairman, Nomination Committee
Chairman, Investment Committee
Chairman, Tender Board
Chairman, Financing Committee
Chairman, Rakyat Holdings Sdn Bhd
Chairman, Rakyat Hartanah Sdn Bhd
Chairman, Rakyat Facility Management Sdn Bhd
AWARDS
PGAT PMN PSM PSAT SPMP SSDK SSAP SIMP SPTJ SPKK SPTS
DSAP DIMP DHMS DGMK PAT JMN KAT AMN DPKT (Brunei) PLOH
(Philippines) MPAT PSC MM (AIM)

bank rakyat
36 annual report
2015
board of directors'
+p+r+o+f+ile

DATO MUSTAFHA HJ. ABD. RAZAK


Managing Director/President
AGE: 48
EDUCATION AND AFFILIATIONS OTHER POSITIONS HELD
Chartered Banker, Asian Institute of Chartered Bankers Managing Director/President, Bank Rakyat
Director, Malaysia Electronic Payment System Sdn Bhd
(CIAFIN), Institute of Bankers Malaysia Board of Management, Perbadanan Tabung Pendidikan Tinggi
Divisional Councillor, Malaysia CPA Australia Nasional
Registered Accountant, Malaysian Institute of Accountants Member, Audit Committee, Perbadanan Tabung Pendidikan
Member, FCPA Australia Tinggi Nasional
Chairman, Investment and Insurance Committee, Perbadanan
Practising Accountants Tabung Pendidikan Tinggi Nasional
Bachelor of Commerce (Accounting), University of Wollongong, Board Member, Maktab Kerjasama Malaysia
Australia
PREVIOUS POSITIONS HELD IN BANK RAKYAT
APPOINTED AS DIRECTOR Senior General Manager, Banking Operations, Bank Rakyat
First Appointment: General Manager, Finance/Bank Secretary, Bank Rakyat
1 April 2013 31 March 2014 Bank Secretary, Bank Rakyat
Reappointments: Assistant General Manager, Finance, Bank Rakyat
1 April 2014 31 March 2015 Head, Accounts and Information Management, Bank Rakyat
1 April 2015 31 March 2016
1 April 2016 31 March 2018
OTHER POSITIONS HELD IN THE BANK RAKYAT GROUP
Member, Nomination Committee
Member, Investment Committee
Member, Tender Board
Member, Board of Directors,
Rakyat Management Services Sdn Bhd
Member, Board of Directors, Rakyat Hartanah Sdn Bhd
Member, Board of Directors, Rakyat Holdings Sdn Bhd
Member, Board of Trustees, Yayasan Bank Rakyat

bank rakyat
annual report
2015
37
board of directors'
+p+r+o+f+ile

DATO SRI ALIAS DATO SITI ZAUYAH


HJ. AHMAD MD. DESA
AGE: 58 AGE: 57
EDUCATION PREVIOUS POSITIONS HELD EDUCATION
Masters in Strategic Studies and Defence, General Director, Immigration Department Masters in Business Administration
University of Malaya Divisional Secretary, Security and Public (International Banking) (Board of Directors
Bachelor of Arts (Hons), Arts and Social Order Division, Ministry of Home Affairs List), University of Manchester, United
Sciences, University of Malaya Divisional Secretary, Immigration Affairs Kingdom
Diploma in Intelligence and Security, Division, Ministry of Internal Affairs Bachelor of Science (Hons) in Quantity
Taiwan Military College, Taipei Divisional Secretary, Human Resource Surveying, University of Reading, United
Management Division, Ministry of Internal Kingdom
College of Emergency and Disaster Affairs Diploma in Public Administration (Excellent),
Responses, Yorkshire, United Kingdom Director, GSPS, National Security Council, Nat. Ins. of Public Admin (INTAN) Malaysia
Putrajaya GCE A levels, Aston College, Wrexham,
APPOINTMENT AS DIRECTOR Director, National Security Division (Kuala Wales United Kingdom
First Appointment: Lumpur), Prime Ministers Department
7 January 2015 6 January 2017 Director, National Security Division APPOINTMENT AS DIRECTOR
(Terengganu), Prime Ministers First Appointment:
OTHER POSITIONS HELD IN THE
Department 1 July 2015 30 June 2017
BANK RAKYAT GROUP
Chairman, Remuneration Committee Assistant Director, Prison Department of OTHER POSITIONS HELD IN THE
Member, Nominations Committee Malaysia, Ministry of Home Affairs BANK RAKYAT GROUP
Chairman, Board of Directors, Rakyat Assistant Director, Cabinet Division, Prime Member, Investment Committee
Niaga Sdn Bhd Ministers Department Member, Risk Management Committee
Assistant Director, Development and Member, Financing Committee
OTHER POSITIONS HELD Supply Division, Ministry of Education Member, Board of Directors, Rakyat
Secretary General, Ministry of Domestic Malaysia Management Services Sdn Bhd
Trade, Co-operatives and Consumerism
Chairman, Companies Commission of OTHER POSITIONS HELD
Malaysia (SSM) Director, Malaysia Debt Ventures Berhad
Director, KWAP Investment Panel
Director, EPF Investment Panel
Director, Islamic Corporation for the
Development of the Private Sector (ICD)
Alternate Director, Employees Provident
Fund

bank rakyat
38 annual report
2015
board of directors'
+p+r+o+f+ile

TAN SRI DR ALIES ANOR


ABDUL
AGE: 61
PREVIOUS POSITIONS HELD EDUCATION Member, Board of Directors, Rakyat
Honorary Doctorate in (Islamic Holdings Sdn Bhd
of Finance, Malaysia Jurisprudence), Sultan Sherif Kassim Islamic Members, Board of Directors, Rakyat
Under Secretary, Government Investment University, Pekan Baru, Indonesia Facility Management Sdn Bhd
Company Division, Ministry of Finance, Training for Trainers, Centre of Advanced
Studies, Universiti Putra Malaysia OTHER POSITIONS HELD
Malaysia
Training of Trainers, Conrad Adenauer Chairman, Putra World Trade Centre
Under Secretary, Loan Management, Chairman, Simbol Prima Sdn Bhd
Financial Markets and Actuarial Division Stiftung, Germany
Survey Research Course, Public Director, AAA Consult & Resources Sdn Bhd
Ministry of Finance, Malaysia Director, Centre for Glocal Concerns
Deputy Secretary (Economy), Investment, Administration Institute Entrepreneurial
Director, Pan Asiatic Technologies Sdn Bhd
MoF (Inc) & Privatisation Division, Director, Billion Prima Sdn Bhd
Ministry of Finance, Malaysia United Kingdom
Arabic Language, King Saud University, Director, Jutajaya Sistem Sdn Bhd
Deputy Secretary (Infrastructure), Director, Putrade Media Marketing Sdn Bhd
Investment, MoF (Inc) & Privatisation Riyadh, Kingdom of Saudi Arabia
B.Ed. (Mathematics), IKIP NEG, Medan, Director, Yayasan Usahawan Bumiputra
Division, Ministry of Finance, Malaysia Director, Yayasan Pembangunan Ummah
Head of Section (External Funding), Indonesia
Diploma in MBO, ICS, London Director, Yayasan Sumber Maklumat
Loan Management, Financial Markets &
Actuarial Division, Ministry of Finance, Diploma in Woodtech, MARA University of PREVIOUS POSITIONS HELD
Malaysia Technology (UiTM) Director/Executive, Polygraphic Press
Principal Assistant Secretary (Multilateral APPOINTMENT AS DIRECTOR Director/Assistant Manager, DEB, Jilid
Unit), Loan Management, Financial Markets First Appointment: Sdn Bhd
& Actuarial Division, Ministry of Finance, Executive Secretary, Malaysian Council for
16 July 2014 15 July 2016
Malaysia Child Welfare
OTHER POSITIONS HELD IN THE Senior Assistant Director (Research),
Directors Advisor to the constituency
BANK RAKYAT GROUP National Civics Bureau, Prime Ministers
belonging to Malaysia, Myanmar,
Nepal, Singapore and Thailand, Asian Member, Audit and Examination Committee Department
Member, Risk Management Committee Political Secretary to the Minister of
Development Bank, Manila Defence, Malaysia
Member, Tender Board
Member, Financing Committee Political Secretary to the Minister of
Chairman, Board of Directors, Rakyat Education, Malaysia
Management Services Sdn Bhd Political Secretary to the Deputy Prime
Minister of Malaysia

bank rakyat
annual report
2015
39
board of directors'
+p+r+o+f+ile

DATUK HJ. ABDUL RAHMAN DATUK HJ. MOHD. IDRIS


KASIM HJ. MOHD. ISA
AGE: 63 AGE: 65
EDUCATION PREVIOUS POSITIONS HELD EDUCATION
Bachelor of Science (Hons) Chemical Business Development Director, Veolia Bachelor of Economics (Accounting),
Engineering, Water (Malaysia) Holdings Sdn Bhd University of Malaya
Loughborough University of Technology,
Subsidiaries APPOINTMENT AS DIRECTOR
United Kingdom
First Appointment:
A Levels, Newark Technical College,
Sdn Bhd 1 October 2014 30 September 2016
United Kingdom
Royal Military College Managing Director, Alam Sekitar Malaysia OTHER POSITIONS HELD IN THE
Sdn Bhd BANK RAKYAT GROUP
APPOINTMENT AS DIRECTOR General Manager, Brand Communication, Chairman, Audit and Examination
First Appointment: Customer Services and Motorsport, Shell Committee
15 April 2014 14 April 2016 Group of Companies in Malaysia Member, Remuneration Committee
15 April 2016 14 April 2018
Member, Nomination Committee
OTHER POSITIONS HELD IN THE Member, Financing Committee
BANK RAKYAT GROUP Member, Board of Directors, Rakyat
Member, Investment Committee Holdings Sdn Bhd
Member, Nomination Committee Member, Board of Directors, Rakyat Travel
Member, Tender Board Sdn Bhd
Member, Board of Directors, Rakyat Member, Board of Directors, Rakyat
Holdings Sdn Bhd Management Services Sdn Bhd
Member, Board of Directors, Rakyat Asset
Management Sdn Bhd OTHER POSITIONS HELD
Chairman, Board of Trustees, Yayasan Adviser, Rasma Corporation Sdn Bhd
Bank Rakyat Director, Samalaju Komunikasi Sdn Bhd

bank rakyat
40 annual report
2015
board of directors'
+p+r+o+f+ile

DATO HJ. ABDULLAH


HJ. ABAS
AGE: 71
PREVIOUS POSITIONS HELD EDUCATION Chairman, Koperasi Kariah Masjid Bandar
Executive Director, Yayasan Wilayah Masters in Education, University of Toledo, Springhill Lukut Port Dickson Berhad
Persekutuan United States of America Member, ANGKASA State Relations
Director, Am Trustee Berhad Bachelor in Education, (Magna cum Committee (Negeri Sembilan)
Senior Associate, Malaysia Industry Group Laude), University of Toledo, United States Guest Speaker, National Civics Bureau,
For High Technolgy (MIGHT) of America Prime Ministers Department (since 1986)
Executive Director, Arab Malaysian
PREVIOUS POSITIONS HELD
Merchant Bank Bhd Teachers Training College, Kuala Lumpur
Private Secretary to DYMM Yang DiPertuan
Group Managing Director, Shapadu
APPOINTMENT AS DIRECTOR Besar Negeri Sembilan, Tuanku Muhriz
Holdings Sdn Bhd
First Appointment: Ibni Almarhum Tuanku Munawir
Board of Trustees, Yayasan Pembangunan
27 October 2014 26 October 2016 Private Secretary to DYMM Yang DiPertuan
Ekonomi Islam
Besar Negeri Sembilan, Almarhum Tuanku
Board of Trustees, Amanah Ikhtiar OTHER POSITIONS HELD IN THE Jaafar Ibni Almarhum Tuanku Abdul
Malaysia BANK RAKYAT GROUP Rahman
Chief Executive, Credit Guarantee Member, Audit and Examination
Corporation Committee
MIDAS
Head, Internal Audit, MBF Group Member, Tender Board
Senior Assistant Director, Negeri Sembilan
Manager, Bank Negara Malaysia Chairman, Rakyat Travel Sdn Bhd
Education Department
Member, Board of Directors, Rakyat Asset
Assistant Director, Technical and
Management Sdn Bhd
Vocational Education, Negeri Sembilan
Member, Board of Directors, Rakyat Niaga
Education Department
Sdn Bhd
Supervisor, Technology Education, Negeri
OTHER POSITIONS HELD Sembilan Education Department
General Manager, Shahsin Sdn Bhd Assistant School Supervisor, Kelantan
Chairman, Koperasi Permodalan dan Education Department
Perusahaan Melayu Negeri Sembilan Technical Teacher, SM Dato Abdul Samad,
Berhad Tanjong Ipoh Negeri Sembilan and SM
Chairman, Koperasi Gabungan Melayu Tuanku Muhammad Kuala Pilah
Negeri Sembilan Berhad

bank rakyat
annual report
2015
41
board of directors'
+p+r+o+f+ile

DATO HJ. ISMAIL RAZALEE


NORDIN AMIN
AGE: 62 AGE: 63
EDUCATION OTHER POSITIONS HELD EDUCATION
Bachelor of Science in Electrical Chairman, Koperasi Telekom Malaysia
Engineering & Electronics, University of Berhad Planning Association of Malaysia
Manchester Chairman, MKM Global Holdings Sdn Bhd
Post Graduate Diploma in Administration Director, Kota Mas Travel & Tours Sdn Bhd
Studies, Leeds Metropolitan University Director, Kota Mas Trading & Services Bachelor of Economics (Hons) Accounting,
Diploma in Telecommunications, Sdn Bhd University of Malaya
Bailbrook College, U.K Director, Kota Mas Training & Consultancy Diploma in Accounting (Postgraduate),
Advanced Human Resource Executive Sdn Bhd University of Malaya
Program, Michigan Business School,
United States of America PREVIOUS POSITIONS HELD APPOINTMENT AS DIRECTOR
Vice President, Transformation and First Appointment:
Senior Management Development
Human Resource Development, Telekom 1 July 2015 30 June 2017
Program, Harvard Business School
Malaysia
APPOINTMENT AS DIRECTOR Vice President, Change Management
OTHER POSITIONS HELD IN THE
First Appointment:
BANK RAKYAT GROUP
Member, Audit and Examination Committee
1 July 2015 30 June 2017 General Manager, Human Resource,
Member, Risk Management Committee
Telekom Malaysia
OTHER POSITIONS HELD IN THE General Manager, Telekom Training
Member, Financing Committee
BANK RAKYAT GROUP College
Member, Board of Directors, Rakyat
Member, Nomination Committee Hartanah Sdn Bhd
Member, Remuneration Committee Member, Board of Directors, Rakyat Travel
Member, Board of Directors, Rakyat Travel Sdn Bhd
Sdn Bhd Member, Board of Directors, Rakyat Facility
Member, Board of Directors, Rakyat Management Sdn Bhd
Hartanah Sdn Bhd
Member, Board of Directors, Rakyat Niaga
Sdn Bhd

bank rakyat
42 annual report
2015
board of directors'
+p+r+o+f+ile

LIZA ROS DAMSI


Bank Secretary
AGE: 39
OTHER POSITIONS HELD EDUCATION
Managing Partner, Razalee & Co Masters in Public Administration, University of Malaya
(Chartered Accountants) BBA (Hons) Finance, Universiti Teknologi MARA
Director, UMW Oil & Gas Corporation
Berhad APPOINTMENT AS BANK SECRETARY
Director, RCO Management & Consulting 1 December 2015
Services Sdn Bhd PREVIOUS POSITIONS HELD IN BANK RAKYAT
Director, MP Capital Advisory Sdn Bhd Vice President, Branch Surveillance
Director, Accountants Online Sdn Bhd Vice President, Compliance
Director, Information System Enterprise Manager, Compliance
Solutions Sdn Bhd
Director, Agensi Pekerjaan RZA Executive
Search Sdn Bhd
PREVIOUS POSITIONS HELD
General Manager, International Bank
Malaysia Berhad
Senior General Manager, Damansara
Realty Berhad
Senior Vice President, Investment and
Acquisitions, MBf Finance Berhad
Group Financial Controller, Sasteras
Resources (Malaysia) Berhad

Mohammad, Chartered Accountants

bank rakyat
annual report
2015
43
sHariaH
committee

ASSOCIATE PROF. ASSOCIATE PROF. USTAZ ASSOCIATE PROF.


DR AZNAN DR AZMAN WAN RUMAIZI DR SITI SALWANI
HASAN MOHD. NOOR WAN HUSIN RAZALI

bank rakyat
44 annual report
2015
DATO SETIA USTAZ USTAZ USTAZ
MOHD. TAMYES MD. YUNUS ABDULLAAH MOHD. ZAMEREY
ABD. WAHID ABD. AZIZ JALIL ABDUL RAZAK
Chairman Secretary of Shariah Committee

bank rakyat
annual report
2015
45
sHariaH committee's
profile

DATO SETIA ASSOCIATE PROF.


MOHD. TAMYES ABD. WAHID DR SITI SALWANI RAZALI
Chairman
AGE: 65 AGE: 41
EDUCATION EDUCATION
Bachelor of Shariah (Hons), Al-Azhar University, Cairo, PhD in Business Law, Universiti Putra Malaysia
Egypt Master of Comparative Laws (MCL), International Islamic
Diploma in Arabic Education, Ain Shams University, Cairo, University Malaysia
Egypt Bachelor of Laws [LLB (Hons) and Shariah Law],
International Islamic University Malaysia
APPOINTMENT TO SHARIAH COMMITTEE
1 September 2005 31 March 2017 APPOINTED TO SHARIAH COMMITTEE
1 January 2010 31 December 2016
OTHER POSITIONS HELD
Mufti of Selangor OTHER POSITIONS HELD
Chairman, Fatwa Committee of Selangor Lecturer, Department of Business Administration, Kuliyyah
Member, Selangor Royal Council of Economics and Management Sciences, International
Member, Board of Trustees, Selangor Zakat Board (LZS) Islamic University Malaysia
Member, Selangor Islamic Religious Council (MAIS) Shariah Advisor, Great Eastern Takaful
Member, Board of Control and Licensing of Al-Quran Shariah Advisor, KA Shariah Advisory Sdn Bhd
Printing (LPPQ), Ministry of Home Affairs
PREVIOUS POSITIONS HELD
Member, Shariah Advisory Committee, as-Salihin Trustee
Member, Working Committee, Institute of Islamic Banking
Berhad
and Finance, International Islamic University Malaysia
Chairman, Zakat Distribution Committee, Selangor Zakat
Member, Shariah Panel, Silver Bird Group Bhd
Board (LZS)
Member, Investment Committee, Selangor Islamic Council
(MAIS)
Member, Shariah Panel, Wakaf Fund, Islamic University of
Malaysia (UIM)
PREVIOUS POSITIONS HELD
Member, Shariah Panel, Standards and Industrial Research
Institute of Malaysia (SIRIM Berhad)

Corporation (HDC)
Principal, Sekolah Agama Menengah Tinggi Hishamuddin,
Klang
Principal, Sekolah Agama Menengah Tinggi Kuala Kubu
Bharu

bank rakyat
46 annual report
2015
sHariaH committee's
profile

USTAZ MD. YUNUS USTAZ


ABD. AZIZ WAN RUMAIZI WAN HUSIN
AGE: 45 AGE: 41
EDUCATION EDUCATION
Master of Fiqh and Usul Fiqh, al-Bayt University, Jordan Master of Fiqh and Usul al-Fiqh, International Islamic
Bachelor of Shariah, University of Malaya University Malaysia
Bachelor of Fiqh and Usul al-Fiqh, al-Bayt University, Jordan
APPOINTED TO SHARIAH COMMITTEE
1 July 2011 30 June 2017 APPOINTED TO SHARIAH COMMITTEE
1 September 2011 31 August 2017
OTHER POSITIONS HELD
Lecturer, Faculty of Shariah and Laws, Islamic Science OTHER POSITIONS HELD
University of Malaysia Member, Shariah Committee, PruBSN Takaful
Shariah Adviser, Koperasi Alam Bersih (Ko-Alam) Member, Shariah Board, Ar-Rajhi Bank Malaysia
Chairman, Surau At-Taqwa Desa Anggerik, Nilai Member, Shariah Advisory Committee, International Islamic
University Malaysia
PREVIOUS POSITIONS HELD
Deputy Dean, Student Performance and Development PREVIOUS POSITIONS HELD
Management, Islamic Science University of Malaysia Lecturer, Department of Fiqh and Usul al-Fiqh, International
Head, Bachelors in Fiqh and Fatwa Programme, Islamic Islamic University Malaysia
Science University of Malaysia Member, Shariah Committee, Yayasan Muamalat Belia
Coordinator, World Fatwa Management and Research Shariah Advisor, Tissue Bank, Universiti Sains Malaysia
Institute (Documentation Section), Islamic Science Hospital, Kubang Kerian, Kelantan
University of Malaysia Consulting Fellow and Module Developer, International
Coordinator, Falak Unit, Faculty of Shariah and Laws, Research Centre in Islamic Economics and Finance
Islamic Science University of Malaysia (IRCIEF), International Islamic University College Selangor
(KUIS)
Member, Working Group for MS1900:2014 Standard
(Shariah-based Quality Management Systems -
Requirement with Guidance), SIRIM Secretariat
Trainer in Islamic Finance and Banking for staff of Bank
Negara Malaysia, CIMB, Hong Leong Bank, Public Bank,
Prudential Assurance Malaysia Berhad
Member, International Union of Muslim Scholars (Ittihad
al-Alami li Ulama al-Muslimin), Qatar
Member, Association of Shariah Advisors (ASAS), Kuala
Lumpur

bank rakyat
annual report
2015
47
sHariaH committee's
profile

USTAZ ASSOCIATE PROF.


ABDULLAAH JALIL DR AZMAN MOHD. NOOR
AGE: 36 AGE: 43
EDUCATION EDUCATION
MBA (Islamic Banking and Finance), International Islamic PhD in Islamic Law, University of Edinburgh, UK
University Malaysia Master of Islamic Criminal Law, Universiti Kebangsaan
Bachelor of Shariah (Fiqh and Islamic Studies), Yarmouk Malaysia
University, Irbid, Jordan Master of Muamalat (Islamic Law of Transactions),
PhD in Islamic Finance, INCEIF (in progress) International Islamic University Malaysia
Bachelor of Islamic Law, Islamic University of Madinah,
APPOINTED TO SHARIAH COMMITTEE
Saudi Arabia
1 April 2012 31 March 2018
APPOINTED TO SHARIAH COMMITTEE
OTHER POSITIONS HELD
1 January 2015 31 December 2016
Senior Lecturer, Faculty of Economics and Muamalat,
Islamic Science University of Malaysia OTHER POSITIONS HELD
Senior Lecturer, International Institute of Islamic Banking &
Finance, International Islamic Universiti Malaysia
Malaysia Deputy Chairman, Shariah Board, Al-Rajhi Bank Malaysia
Research Fellow, Islamic Finance and Wealth Management Chairman, Shariah Panel, Am Family Takaful
Institute (IFWMI), Islamic Science University of Malaysia MQA Expert, Muamalah and Islamic Banking Panel
Member, Shariah Committee, PruBSN Takaful Member, Panel of Experts in Islamic Jurisprudence, Dewan
Member, Shariah Committee, Islamic Science University of Bahasa Dan Pustaka
Malaysia Staff Cooperative
PREVIOUS POSITIONS HELD
PREVIOUS POSITIONS HELD Member, Shariah Committee, SME Bank
Member, Shariah Committee, Shariah and Islamic Finance Member, Shariah Advisory Council, Securities Commission
Unit, World Fatwa Management and Research Institute Malaysia
(INFAD), Islamic Science University of Malaysia Member, Shariah Committee, MNRB Retakaful
Member, Coordinating Committee for Muamalat Takaful,
and Islamic Finance and Banking Programme, Ministry of
Higher Education Malaysia
Seminar Coordinator, World Fatwa Management and
Research Institute (INFAD), Islamic Science University of
Malaysia

bank rakyat
48 annual report
2015
sHariaH committee's
profile

ASSOCIATE PROF. USTAZ


DR AZNAN HASAN MOHD. ZAMEREY ABDUL RAZAK
Secretary of Shariah Committee
AGE: 45 AGE: 45
EDUCATION EDUCATION
PhD in Shariah, University of Wales, Lampeter, United Master in Islamic Studies, Universiti Kebangsaan Malaysia
Kingdom Bachelor of Shariah (Hons), Yarmouk University, Jordan
Master of Shariah (with distinction mumtaz), Cairo
APPOINTED TO SHARIAH COMMITTEE (SECRETARY TO
University, Egypt
SHARIAH COMMITTEE)
Bachelor of Shariah, Al-Azhar University, Cairo, Egypt
September 2014
APPOINTMENT TO SHARIAH COMMITTEE
PREVIOUS POSITIONS HELD
1 April 2016 31 March 2018
Vice President, Head of Shariah, Asian Finance Bank
OTHER POSITIONS HELD Assistant Vice President, Head of Shariah, Asian Finance
Associate Professor in Islamic Law, Department of Islamic Bank
Law, Ahmad Ibrahim Kulliyyah of Laws International Assistant Vice President, Shariah Compliance, Takaful
Islamic University Malaysia Ikhlas Sdn Bhd
President, Association of Shariah Advisors in Islamic Manager, Shariah Compliance, Takaful Ikhlas Sdn Bhd
Finance (ASAS) Industrial Advisor, Faculty of Muamalat & Management,
Deputy Chairman, Shariah Advisory Council, Securities International Islamic University College Selangor (KUIS)
Commission Malaysia Imam and Attachment Teacher, Pusat Latihan Pemulihan
Chairman, Shariah Committee, Maybank dan Perindustrian Bangi, Selangor
Registered Shariah Advisor, Islamic Unit Trust Schemes Operation Executive, Mulex Centric Sdn Bhd
and Islamic Securities (Sukuk), Securities Commission of Teacher, Sekolah Kiblah, Kajang, Selangor
Malaysia
Member, Shariah Advisory Board, FNB Islamic Bank, South
Africa
Member, Shariah Advisory Board European International
Islamic Bank (EIIB) (London)
Member, Shariah Advisory Board Cordoba Capital (Dubai)
Member, Shariah Advisory Board Amanah Raya Berhad
Member, Shariah Advisory Board Employees Provident
Fund (EPF)

bank rakyat
annual report
2015
49
maNaGemeNt
committee

DR MOHAMMAD MD. ALI ABD. AZIZ MOHD. SHAHRIL ISA DATO MUSTAFHA
HANIS OSMAN Chief Chief HJ. ABD. RAZAK
Chief Information Technology Retail Banking Managing Director/President
Treasury

bank rakyat
50 annual report
2015
MD. KHAIRUDDIN ARSHAD MOHD. FARID SHAH MOHD. BASIR NOR HAIMEE ZAKARIA
Chief Chief Chief

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annual report
2015
51
maNaGemeNt committee's
+p+r+o+f+ile

DATO MUSTAFHA HJ. ABD. RAZAK MD. KHAIRUDDIN ARSHAD


Managing Director/President

Dato Mustafha joined the Bank Rakyat management team


in 1991 and was appointed to lead the Bank on 1 April 2013. Rakyat management team in June 2013. He is responsible for
He previously held various positions in the Bank including planning the business direction of the Bank and continuously
General Manager - Banking Operations, Bank Secretary,
Head of Accounts and Information Management, and banking operations. Prior to this, he was the Chief Risk
Assistant General Manager - Finance. Currently, he is
responsible for planning, executing and ensuring that Bank
Rakyat, the largest cooperative Islamic bank in Malaysia Malaysia (PIDM). He also served with Bank Negara Malaysia
continues to chart excellent growth. He does this by for over 15 years and was one of the pioneers involved in the
implementing the Banks transformation programme to development of Islamic banking in Malaysia. He was Chairman
ensure that the Bank remains relevant in the market, of the Islamic Deposit Insurance Group of International
upholding Islamic banking principles and safeguarding Association of Deposit Insurers and has provided technical
the interests of key stakeholders who comprise members, assistance to various countries in developing their Islamic
customers, employees, regulatory bodies, relevant banking industry and Islamic deposit insurance systems.
government agencies and society, in all the Banks Md. Khairuddin regularly presents papers at local and
activities. international seminars and conferences. He holds an accounting
degree from the International Islamic University Malaysia.

bank rakyat
52 annual report
2015
maNaGemeNt committees
+p+r+o+f+ile

MOHD. SHAHRIL ISA MOHD. FARID SHAH MOHD. BASIR

Mohd. Farid Shah Mohd. Basir was appointed Chief Human


he has held since September 2015. He heads consumer
banking and also oversees operations in Bank Rakyat. His more than 21 years experience, having previously worked
areas of responsibility include the development and smooth with Nestle, REID Group, Etiqa Insuran & Takaful and Telekom
implementation of overall business strategies for retail banking Malaysia. He has held various senior positions in the area of
products in Bank Rakyat. He began his career with Bank Human Resource and has worked in Malaysia, Switzerland,
Rakyat in 1984 as a young executive in the Human Resource South Africa and the Philippines. He holds a Bachelors Degree
Department. He was appointed Senior Vice President, Branch (Hons) in Human Resource Management and a Diploma in
Network for Bank Rakyat from 2014 to 2015. Shahril has over Business Management from Universiti Teknologi MARA, and
30 years of experience in the banking industry, including as a Professional Diploma in Development and Training from
Branch Manager and Head of Financing Rehabilitation. He University of Malaya. He also holds a number of professional
holds a Bachelor of Economics degree from the University of
Malaya. Management Professional, Global Professional in HR and SHRM

Institute for Management Development, Lausanne, Switzerland.


He is currently pursuing a Masters Degree in Business
Management with Heriot-Watt University, UK.

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annual report
2015
53
maNaGemeNt committee's
+p+r+o+f+ile

MD. ALI ABD. AZIZ NOR HAIMEE ZAKARIA DR MOHAMMAD HANIS


Chief Chief OSMAN
Information Technology Chief Treasury

Md. Ali started his career with Bank Nor Haimee Zakaria is a Fellow of the His career for the last 20 years has
Rakyat in 1985. He retired in 2012 only been extensively involved in the
to return in 2014. During his time at Accountants (ACCA), United Kingdom area of Treasury and Investment. He
the Bank, he has held various positions and a Chartered Accountant of the has worked both locally and in the
including Manager of Banking Systems Malaysian Institute of Accountants Middle East with various commercial,
Development and Head of Information (MIA). He also hold a Bachelors Degree Islamic and investment banks in areas
Technology. He holds a Bachelors in Accountancy, Finance and Economics involving the Money Market, Fixed
Degree in Information Technology. (Hons) from the University of Essex, Income, Foreign Exchange, Equities,
Md. Ali is responsible for balancing a UK. He started his career as an Auditor Derivatives and Structured Products.
number of roles within the organisation with Coopers and Lybrand, United During his years in the profession,
to retain the Banks competitive Kingdom in 1990. He also worked with apart from assuming various roles
advantage in the market sector and Coopers Brewers, London in 1993, with and positions, he has sat and passed a
ensure the best interests of the Arab Malaysian Development, and with number of professional examinations
employees are met. This includes Bank Islam Malaysia Berhad as Finance - the Pasaran Kewangan Malaysia
ensuring that the best resources and Manager/Head of Group Finance until
the best people are utilised to complete September 2008. Nor Haimee joined
Bank Rakyat on 6 October 2008 as include PhD in Economics, International
and being responsible for mapping the Head of Accounts, Information Islamic University Malaysia, Master
out the ICT Strategy and Policy and Management. In January 2014, he was of Business Administration (Finance),
detailing how ICT is applied and utilised International Islamic University
for the protection of the Bank. Rakyat, a post he holds until the present. Malaysia, and BA (Hons) Accounting
and Finance, University of East London,
United Kingdom.

bank rakyat
54 annual report
2015
ECONOMIC
AND
BUSINESS
REVIEW
2015
economic and business review 2015

2015 Economic EnvironmEnt

A trading nation, Malaysia was not spared from experiencing


the impact of external developments. Apart from the correction
in the crude oil prices, the slowdown in China was among
the factors that impacted Malaysias economy on the external the fall in crude oil prices basically caused the ringgit to be
front. Shipments of electrical and electronic products and other
manufactured products had been a positive factor supporting focus away from the emerging markets in anticipation of the
Malaysias exports. While the weaker currency could be a boost
to export competitiveness, Malaysia was able to maintain
as well as the emerging market currencies.
continued to report trade surplus.

In January 2015, the Government released a revised Budget


2015, taking into account the sharp correction in the crude oil
the GST would not translate into higher price pressure, market
oil-related income. The Government admitted that the previous observers generally suggested that the GST-inclusive pricing had

the fall in oil prices that translated into downward revisions to


domestic petrol and diesel prices and therefore cushioned the

to a certain extent helped to mitigate the impact of lower oil consumers had the opportunity to direct spending on other
items due to the savings accumulated from reduced spending
on energy and transportation costs. Nevertheless, concerns

the recent economic developments were the factors behind the


stock market, for example, registered a total net withdrawal deteriorating consumer sentiment.
of RM19.5 billion by foreign holders. The amount surpassed

THE YEAR 2015 WAS A


CHALLENGING YEAR FOR
MALAYSIA. THE ECONOMY
REGISTERED MODERATE
GROWTH OF 5% AS
COMPARED TO 6% IN 2014.

bank rakyat
56 annual report
2015
WHILE THE WEAKER CURRENCY COULD BE A BOOST TO EXPORT COMPETITIVENESS,
MALAYSIA WAS ABLE TO MAINTAIN POSITIVE EXPORT GROWTH IN THE FINAL MONTHS OF
THE YEAR AND CONTINUED TO REPORT TRADE SURPLUS.

During the year, there were few revisions which


made consumers complain over the rising cost of living. to rationalise and downsize their workforce to a more optimal
Consumers were unhappy with the decision to increase fares level. Several banks, namely CIMB, RHB and Hong Leong,
for taxis, express buses and trains. Moreover, transport announced the offer of voluntary separation scheme to their
costs also escalated following upward revision of toll rates
for several highways in the Klang Valley. Selected as part of improving their cost management.
businesses had to incur higher production costs because
the Governments subsidy rationalisation programme Gains from investment income were adversely affected by the
facilitated the gradual removal of the subsidy for gas supply.
All these added to the cost pressure in addition to rising sharply during the year and the local stock market closed lower
charges for labour and raw materials. Amid growing complaints than a year ago. The ringgit depreciated, approaching RM4.50
over rising cost of living, the Government announced keeping to the USD in September and entered the year at USD4.29
the electricity tariff unchanged until the end of the year, (vs. RM3.60 at end 2014). Meanwhile, the FTSE Bursa Malaysia
Kuala Lumpur Composite Index closed at 1,692 at the end of
The Government also stepped in to delay the revision of PLUS 2015 (vs. 1,722 at end 2014).
highway toll charges.
In terms of regulatory changes, banks shifted to using the
In September-October 2015, Malaysia suffered an episode of Base Rate (BR), replacing the Base Financing Rate (BFR)
bad weather, caused by haze originating from neighbouring
Indonesia. With the air quality worsening to unhealthy levels, the adoption of BR did not cause a stir in the market.
the Government instructed schools to close for some days.

production activity for certain industries such as agriculture


and construction suffered from the risk to workers health or rescheduled. Throughout the year, BNM did not adjust the
and adverse impact on animals and plants. Apart from monetary policy, keeping the Overnight Policy Rate (OPR)
unchanged at 3.25%. BNM deemed that the existing
in the East Coast affecting Kelantan, Terengganu and Pahang. level of OPR remained accommodative and supportive of
The surge in spending driven by a large number of search and economic growth. BNM highlighted concerns over external
rescue missions was one of the reasons over rising spending uncertainties, while domestic demand remained the
particularly in January 2015. anchor to support the economy.

moderate to 7.9% (2014: 9.3%) as credit extended to both


household and non-household sectors grew at slower pace end June 2015. This policy reform caused the interbank rate
during the year.
cheaper funds, deemed high quality liquid asset.
The intense competition for customer deposits caused the
construction activity and working capitals. Nevertheless, these
two segments remained the main reason for companies turning Margin (NPM) of banks. While the overall liquidity of the
to banks for credit.
banks also reported tighter liquidity condition with
the Financing-to-Deposit Ratio (FDR) at a higher level. The

end of 2015.

bank rakyat
annual report
2015
57
stAtEmEnts of Profit or loss AnD otHEr comPrEHEnsivE incomE AnAlysis of our finAnciAl
for tHE yEAr EnDED 31 DEcEmbEr 2015 stAbility
bank During 2015, Bank Rakyat continued to
2015 2014
rm000 rm000
Income 5,618,618 5,409,643 policies did not hinder the Bank from
Expenditure (2,846,960) (2,151,521) achieving positive results. The Banks net
Net income 2,771,658
to RM1.96 billion recorded in 2014, while
Allowances for impairment (473,436)
Other operating income 707,362 571,562
Operating expenses (1,046,011) (960,592) to RM5.62 billion compared to RM5.41
1,959,573 billion recorded in 2014. The Banks tight
Taxation (143,225) cost management policies and higher
Zakat (37,343) (39,000) revenues from other segments led to the
Bank maintaining its growth during 2015.
1,779,005 1,957,705
In addition, the Banks expenses increased
by 32.32%, operational expenses increased
stAtEmEnts of finAnciAl Position
As At 31 DEcEmbEr 2015 increased by 23.76%. The Bank also
allocated RM473.44 million for impairment
bank
2015 2014
rm000 rm000 made in 2014. Nonetheless, Bank Rakyats
AssEts and continued growth for the future.
Cash and short-term funds 1,897,976
Deposits and placements For the year under review, the Banks assets
908,750 160,099 increased by 3.49% to RM92.29 billion
Financial assets available-for-sale 13,295,819
The expansion in assets was attributed to
Financial assets held-to-maturity 10,718,843 11,131,717
Financing and advances 63,137,184 by 4.39% to RM63.14 billion compared to
Trade receivables - -
Other assets 770,321 year. Financial assets, available-for-sale,
Inventories - -
Investment in subsidiaries 61,976 43,500 compared to RM11.96 billion at end
Property and equipment 689,656 739,321 of 2014 with Government Investment
Goodwill on consolidation - - Issues accounting for 55.54% of the
Investment properties 685,145 524,179
Other components including Islamic debt
Prepaid lease payments 65,258 66,790
securities, government sukuk, Khazanah
Deferred tax assets 55,000 140,000 sukuk, Cagamas sukuk and quoted shares
totAl AssEts 92,285,928 also recorded positive growth.

bank rakyat
58 annual report
2015
The Banks Total Liabilities and
stAtEmEnts of finAnciAl Position
Shareholders Fund increased by 3.49%
As At 31 DEcEmbEr 2015
billion recorded in 2014 with the growth bank
in deposits from customers remaining 2015 2014
the major contributor to the increase in rm000 rm000
Total Liabilities and Shareholders Fund. liAbilitiEs
Deposits from customers increased to
Deposits from customers 70,981,772
Deposits and placements from
1,940,000
positive trend provides the Bank with
more cost-effective funds to expand Trade payables - -
Recourse obligations on
stronger acceptance of the Banks deposit 1,478,659
products. Debt securities issued 2,718,871 3,020,571
Other liabilities 1,476,120 1,592,597
Provision for taxation - -
-
totAl liAbilitiEs 78,595,422 76,732,535
sHArEHolDErs' funD

Individual deposits contributed Share capital 2,983,923 2,973,677


Share redemption fund 53,671
growth. Deposits from individual Reserves 10,652,912
-
totAl sHArEHolDErs' funD 13,690,506 12,444,119
billion recorded in 2014. Deposits from
the Government decreased by 1.44%, totAl liAbilitiEs AnD
registering RM30.25 billion compared to sHArEHolDErs' funD 92,285,928
RM30.69 billion at the end of 2014 and
commitmEnts AnD continGEnciEs 2,600,935
accounted for 42.62% of the Banks total
deposits from customers.
Deposits from customers are sourced from the following types of customers:
Group and bank
2015 2014
DURING 2015, BANK RAKYAT
rm000 rm000 CONTINUED TO STRENGTHEN
Government 30,251,363 30,692,105 ITS FINANCIAL POSITION.
Business enterprises
Cooperatives
27,743,606
943,212 1,220,504 PRUDENT FINANCING AND
Individuals 10,774,077 STRICT RISK MANAGEMENT
Others 1,269,514 1,232,926
POLICIES DID NOT HINDER
70,981,772 THE BANK FROM ACHIEVING
POSITIVE RESULTS.

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annual report
2015
59
Financing and advances activities Financing and advances analysed by type:
continued to register growth although
the banking sector and the economy Group and bank
2015 2014
as a whole faced increased challenges
rm000 rm000
from the impact of internal and external
At amortised cost

4,561,134
as compared to RM50.55 billion in 2014, 52,974,151 50,551,046
408,233 525,226
2,879,608 2,637,902
Hire-purchase receivables 693,219 536,556
Pawn broking 1,556,226 1,662,191
Financing and advances activities for all Bridging 402,442 557,446
regions also registered positive growth in 200,983 134,526
Credit card 476,799
310,856
the Central Region remaining as the

RM64.46 billion followed by the East net of unearned income 64,463,651 62,099,621
Malaysia Region.
Financing and advances analysed by geographical distribution:

Group and bank


2015 2014
rm000 rm000
Central Region 26,726,373
Southern Region 9,302,359
Eastern Region 9,703,878
Northern Region 7,676,331
East Malaysia Region 11,054,710

64,463,651 62,099,621

Return on Assets (ROA)


14.99% 19.48% 20.70%
2.16% Return on
Shareholders Funds
(ROSF)
Core
Capital Ratio
(CCR)
Risk Weighted
Capital Ratio
(RWCR)

the Malaysian Accounting Standards Board (MASB) that are mandatorily effective for an accounting.

bank rakyat
60 annual report
2015
NURTURING
OUR
BUSINESS

We were established with the primary aim to raise the


socio-economic status of the rural agricultural community, provide
opportunities for self-improvement and to build a better future for
their families as well as their communities. Since then, we have never
wavered from our founding but in fact have surpassed our founding
mandate.
Today, through nurturing our business, we not only provide opportunities
for rural communities to prosper and grow through the provision of

our members and their families through the Yayasan Bank Rakyat, and
we do all this from a platform of care for our members, stakeholders,
customers and employees through a platform that is 100% Shariah
compliant.
NURTURING OUR BUSINESS
Our FOcused strategy

Our focus in 2015 was to ensure the Banks maintained competitiveness in the market through implementation of Phase 2 of our set
Strategic Directions and keeping with industry developments. The Banks Strategic Directions 2013-2017 constitute 3 phases:

Phase 1(2012-2013): strengthening capability and risk Management


Strengthening of the Banks capabilities and risk management with regard to new and existing businesses to set the
foundation for future growth and improve asset quality and liabilities.

competitiveness.

Maintaining growth and diversifying portfolios and ensuring quality assets while ensuring compliance with regulatory
requirements.

2015 achieveMent OF set initiatives

Our overall performance in achieving our initiatives in 2015 was above average at 96.23%, representing an increase of 3.08%
compared to the 3rd quarters performance of 93.15%.

Overall, our completed initiatives in 2015 stood at 22 initiatives which among others, included:
Increase in the targeted amount of salaries deposited with the Bank by civil servants.

Reduction in Banks exposure in the construction sector.

Improving credit quality control through training sessions.


Increase in the utilization of i-Rakyat (Internet banking).
Reduction of MIA in retail banking.
Reduction in delinquent corporate banking.
Formation of strategic partnership with selected housing developers via appointment on the Banks panel for homes
with the selling price set at below RM500,000.

standing strOng in the industry

Profit before Tax and Zakat ROA


RWCR RWCR

FINANCING
DEPOSITS
INCOME ROE
ASSETS
ROA
bank rakyat
62 annual report
2015
NURTURING
OUR BUSINESS
Meeting targets: Our PerFOrMance Measured against KPis

Key Performance Indicators (KPIs) measure the performance of an organisation, evaluating the success of an organisation or of
a particular activity in which it engages. KPIs allow the sharing of common goals and targets to manage the performance of an
organisation and measure progress toward organisational goals.

Bank Rakyats KPIs are set by the Board of Directors and allow for the various departments within the Bank to develop plans to
measure their performance against key business objectives.
Banks Achievement of KPIs in 2015:

DECEMBER 2015 DECEMBER 2015


(Targets) (Achievements)

5 premises 2 premises
5 premises 5 premises
5 agents 6 agents
cO-OP cards issued

Apart from helping cooperative members, the Bank also play


a mandated role by managing Ministry of Domestic Trade,
achieved despite intense competition from other Islamic Co-operatives and Consumerism Malaysia (MDTCC) funds
to assist businesses under the Retail Shop Transformation
and external developments. Programme (TUKAR-i) and Modernisation of Automotive
Workshops Programme (ATOM-i). In 2015, the Bank disbursed
Our Islamic pawnbroking business or Ar-Rahnu remained on an RM11.22 million and RM18.23 million, transforming 302
upward trend. The number of Ar-Rahnu Xchange managed by retail shops and 188 automotive workshops respectively.

The Bank also upheld its mandate to manage MDTCC funds


to support micro-enterprises. The Bank disbursed RM2.97
Ar-Rahnu Xchange contributed RM289.89 million in 2015 million under the Mikro Penjaja dan Peniaga Kecil or MPPK
Scheme, RM18.95 million for the Ramadan Bazaar or SBR
Scheme, RM150,000 under the 1Malaysia Mobile Hawkers
Bank Rakyats performance continues to be sustained Scheme (1MMH) and also RM983,000 of the SME Corp Fund for
underpinned by the response from our discount cards. As at small and medium size enterprises under the Enrichment and
end-2015, the number of Consumer Squad Cards issued rose Enhancement (E) Scheme.

In addition, the Bank also provide special funding scheme to


eligible cooperatives. As at December 2015, total disbursement
compared to our 50,000 target for 2015. provided to eligible cooperatives reached RM183.68 million or

bank rakyat
annual report
2015
63
NURTURING TOMORROWS

NEEDS
NURTURING
A CULTURE
At Bank Rakyat, we strongly believe in strengthening our ability to
create and innovate. As such, we are creating a dependable operating
system for innovation, an important indicator of our corporate
sustainability and a sure path to our continued success.

OF
As innovation gives us a commercial advantage especially in a rapidly
shifting market, we work towards stimulating creativity and innovation,
encouraging our employees to think outside of the box and giving

INNOVATION them time and resources to explore new areas for innovative ideas. We
encourage them to bring us fresh perspectives and ideas and show
them that we are listening and open to their feedback.
So, nurturing a culture of creativity and innovation is not an option for
us. It is a necessity. This has garnered us the Most Innovative Islamic
Banking in Malaysia 2015 award by International Finance Magazine.
NURTURING A CULTURE OF INNOVATION

INITIATIVES TO ENCOURAGE INNOVATION

InnovatIon and CreatIvIty day

Our Innovation and Creativity Day was held on 21 April 2015 to Our theme for the day was Innovation Towards Success. Many
raise employee awareness of the importance of creativity and activities were held during the event including a competition to
innovation in their work and daily living. The event was held in design the logo and slogan, talks by invited speakers on new
conjunction with World Creativity and Innovation Day which is technologies, applications and methods and exhibition. The Bank
held on the same date each year. Rakyat Innovation Award was also presented to employees who
came up with the most innovative ideas.
An annual event since 2008, Innovation and Creativity Day is
aimed at inculcating a culture of creativity and innovation in our
employees.

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66 annual report
2015
NURTURING
A CULTURE OF INNOVATION

KAIZEN IS THE PRACTICE OF CONTINUOUS IMPROVEMENT AND


IS RECOGNISED WORLDWIDE AS AN IMPORTANT PILLAR OF AN
ORGANISATIONS LONG-TERM COMPETITIVE STRATEGY. ONE OF THE MOST
NOTABLE FEATURES OF KAIZEN IS THAT BIG RESULTS COME FROM MANY
SMALL CHANGES ACCUMULATED OVER TIME.

KaIzen League

Following the success of the implementation of the 5S programme


to build a quality work environment both physically and mentally,

we moved a step further by creating awareness of the practice of


Kaizen.

Kaizen is the practice of continuous improvement and recognised


worldwide as an important pillar of an organisations long-term
competitive strategy. One of the most notable features of Kaizen
is that big results come from many small changes accumulated
over time.

In this respect, we emphasize to employees the need to continually


improve their ways of working and to be willing to share ideas for
improvement. The programme will also inculcate the practice of
cost saving, providing quality service and placing priority on
customer satisfaction.

We introduced the Idea Tree to encourage our employees to air


their ideas directly onto the tree and also online via our enovac
channel. These avenues recorded 271 ideas as at
19 October 2015.

Nine of these have been selected by the Innovation Award Selection


Committee (JPAI) as the best for October and November 2015.
These ideas have been implemented and the results will be
evaluated in January 2016.

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annual report
2015
67
NURTURING
A CULTURE OF INNOVATION

OUR PRODUCT AND SERVICE INNOVATIONS


1Pay eCurrent aCCount-i (eCa-i)

payment instrument that allows our eCA-i account holders to innovative and account holder-friendly cheque-less current
account, dispensing with the need to use cheques. All banking
practice of issuing physical paper cheques used by conventional transactions such as fund payments or fund transfers are conducted
current accounts. The service which is available 24 hours
a day, 7 days of the week, is also a quick and simple way of making
payment or carrying out banking transactions related to
a current account for fund transfers by an account holder to the maker and the recipient via SMS and email. Further, cheques
a third-party account in Bank Rakyat or to third parties in other can be purchased online by customers who can choose at which
banks. The service can also be accessed overseas provided there Bank Rakyat branch they wish to collect the cheques.
is internet connection.
Account holders can also choose to make cash payments and fund
Individual and non-individual account holders who maintain at transfers at a Bank Rakyat counter. However, recipients of the
least one current account with Bank Rakyat can sign up for this funds can collect payments only at Bank Rakyat branches.
service. For individual customers, account holders are allowed to
provide mandate to a third party to operate their eCA-i and carry Account holders do not pay any hidden or extra charges while the
out transactions on behalf of them. Bank bears all GST payment for fund transfers through IBG. To
receive information regarding their accounts, account holders just
For non-individual customers, the appointed user has to be as have to go online to i-Rakyat Commerce and 1Pay.
stated in Board of Directors and Resolution or Minutes of Meeting
for cooperatives, societies, etc. They are also allowed to appoint
an unlimited number of makers by forwarding the company and
authorization letter.

No limit is imposed on fund transfers to own accounts while for


fund transfers to a third party (intrabank), fund transfers through
IBG (interbank), fund transfers through Rentas (interbank),
Encashment over the Counter and Cheque Purchase, the combined
maximum limit per day is RM10,000.

1Pay account holders may perform fund transfers or payments


to any third parties provided that the name of the payee and
is not listed in Bank Rakyats list of companies or individuals
involved in non Shariah-compliant activities. The Bank may
terminate the fund transfer or payment to such companies or
individuals without being obliged to provide any reason
whatsoever.

No fees are charged for utilizing 1Pay for each intrabank transfer
while a minimum amount is charged for each interbank fund
transfer through IBG (RM 0.10) and through Rentas (RM2), and
for cheque purchase (RM2 each cheque).

bank rakyat
68 annual report
2015
NURTURING
A CULTURE OF INNOVATION

touChStyLe Surau aL-BaraKah aPP

application provides comprehensive information related to the


suraus daily and future activities, talks, Friday prayer sermons,
Malaysia, TouchStyle is an application for smartphones. The announcements, articles on Al-Quran, the Hadith and other topics
application is designed to meet the needs of todays technology related to Islam, and programmes conducted throughout the
savvy customers, particularly Gen Y customers who want easy month in real time. This application is available to users of
and 24-hours access to information at a touch, without needing Android, iOS and HTML5 devices.
to spend time queuing at the Bank.
The application also acts as a channel for dakwah or calling
In addition to providing information on our products and services, people to Islam by disseminating and sharing knowledge on
Islam and to call to do good and repel evil as exhorted in
educating users, especially the young, on how to manage their the Quran. The application also displays solat or Islamic prayer
times for Kuala Lumpur by default in addition to containing
pictures, video and audio recordings of all activities.
TouchStyle aids users in keeping track of their daily and monthly
expenditure, enabling them to keep to their commitment to making The application thus ensures the dissemination of Islamic
scheduled payments and to keep to their budgets. knowledge not only to Bank Rakyat employees but to the wider
ummah and the general public as well.
TouchStyle also helps users with either long-term or short-term

capability.

The application is downloadable free by anyone using android


smartphones on PlayStore and by those using iOS smartphones
on AppStore.

THE FIRST OF ITS KIND IN THE COUNTRY, 1PAY IS A


SECURE ELECTRONIC PAYMENT INSTRUMENT THAT
ALLOWS OUR eCA-i HOLDERS TO MAKE PAYMENTS
AND FUND TRANSFERS. IT REFLECTS THE CURRENT
PRACTICE OF ISSUING PHYSICAL PAPER CHEQUES
USED BY CONVENTIONAL CURRENT ACCOUNTS.

bank rakyat
annual report
2015
69
NURTURING TOMORROWS

SUCCES
NURTURING
OUR
Our human capital is our most valuable asset. As such, our
commitment is to nurture the development and success of
our employees and to provide them opportunities for career
and personal growth. As such, we continuously work towards

TALENT maintaining an innovative, dynamic and happy workforce,


ensuring we build a reputation of attracting and retaining the
best talent in the market through high levels of employee
satisfaction and fair terms of engagement.
S
NURTURING OUR TALENT

HR MISSION AND VALUES

R Rajin (Diligent)
Work smart and proactively meet ILIGENT TRUST
expectations

WO
R

D
A

RTHY
A Amanah (Trustworthy)
Maintain integrity in every aspect of
S
CIOU
work conduct
The trusted K Kompeten (Competent)

T K

COMPET
OD- S
Be an expert eager to learn and seek

CON
driver of human
capital new knowledge
Y Yakin
ENT
in partnership G E
with the business Possess knowledge required to gain

XEM P ARY B
A Y
MISSION
A Akhlak Mulia (Exemplary Behaviour)

L
Constantly uphold the values of HR
E CO
H AVIO UR N FID EN

T
T Takwa (God-conscious)
In daily interactions, observe all
Islamic values and consider the
feelings of others VALUES

HR TRANSFORMATION PROGRAMME
DEVELOPING INTERNAL RESOURCES CAPABILITY AND CAPACITY

Our Human Capital Transformation Blueprint initiated in 2013 aims at driving behavioural
change and aligning human capital development to the Banks business strategy and
aspires to diversify and grow the core areas of consumer and commercial banking. Human

become The Trusted Driver of Human Capital in partnership with the business.
Our Blueprint focuses on three phases:

Phase I (2013-2014):
Gearing for performance through operational excellence
Phase II (2015-2016):
Being a trusted advisor in developing capability and capacity
Phase III (2017 and beyond):
Acting as a business partner in driving performance

In 2015, after successfully achieving the objectives of Phase I and committed to becoming
a Trusted Advisor in Developing Capability and Capacity, we accomplished 7 out of 11
key initiatives under Phase II (2015-2016).

bank rakyat
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2015
NURTURING
OUR TALENT
Our achievements for the year in this respect involve four major Continuous Training and Development Programmes
areas.
Talent Management Framework our employees. It also supports our Bank in meeting our goals
For us, talent management is about more than just attracting and and objectives while focusing on the provision of service excellence.
retaining talent. It is also about researching, developing, and
implementing a series of human resource initiatives and looking In order to support business and customer needs, we have
established structured training comprising 4 major areas:
talent. a) A Development Framework that consists of general and

technical skills.
of the talent pool for Executive to Assistant Manager positions. b) Structured Development Programme training modules for
Risk, Credit, Audit and Human Capital personnel based on
positions. ongoing competency gaps analyses conducted for the
respective areas.
All of them underwent our Talent Development Programme that
c) Individual Development Plan (IDP) developed to identify
comprises the Internal Programme, the External Leadership
and monitor development needs and progress which are
Programme and Action Learning. The talent was divided
embedded as part of the Performance Management System
into two groups: Leadership Excellence Development Programme
(PMS).
(LED) for Assistant Manager and Unit Head positions, and Rakyat
Executive Development Programme (RED) for Executive positions. d) On the Job Training continuously conducted to ensure
The modules consist of a combination of lectures, exercises, case standard implementation and practices across branches.
studies, videos, role plays and experiential learning.
understand the ground issues and provide the necessary
feedback and guidance to ensure business continuity.

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2015
73
NURTURING
OUR TALENT
Total Rewards Strategies
In implementing the right total rewards system, we designed a We continue to leverage on technology for our Human Capital
blend of monetary and non-monetary rewards in order to remain Management by migrating the existing Human Resources
competitive in the banking sector. Information System (HRIS) to new HRIS in order to improve

In order to support a performance-linked compensation approach,


we designed and implemented a new bonus scheme consistent Based on two phases of implementation, the new HRIS will
with business growth and achievements. automate a larger portion of routine HR tasks, saving resources
for the Bank. Allowing our employees to complete a variety of
We also established a new incentive scheme for Sales Team Leaders day-to-day administrative tasks of HR practices through
under the Sales Incentive Scheme Package as an encouragement Employee Self-Service (ESS) can result in more effective
to increase sales. This scheme will be consistently reviewed to HR Management.
maintain the objectivity and relevance based on business needs
and requirements.

BUILDING AND ENHANCING OUR EMPLOYEE POTENTIAL NOT


ONLY BENEFITS OUR EMPLOYEES. IT ALSO SUPPORTS OUR
BANK IN MEETING OUR GOALS AND OBJECTIVES WHILE
FOCUSING ON THE PROVISION OF SERVICE EXCELLENCE.

bank rakyat
74 annual report
2015
NURTURING
OUR TALENT
2015 ACHIEVEMENTS
CERTIFICATION IN OCCUPATIONAL SAFETY AND HEALTH

and Safety Management Systems, and the MS 1722: Malaysian


Standard on Occupational Health and Safety Management Systems

By implementing the OHSAS standard, we

Adopt international best practice in relation to risk


management
Ensure the health and well-being of our employees and the
public
Minimise our liability through the adoption of proactive
rather than reactive controls
Ensure legislative awareness and compliance
Reduce accident and incident rates by reducing and CLEARLY, HEALTHY EMPLOYEES ARE HAPPY
elimination workplace hazards
Improve the incident investigation process
AND PRODUCTIVE EMPLOYEES. WE THUS
Increase employee motivation through the provision of a TAKE INITIATIVES TO FOSTER OUR
safer workplace and participation process EMPLOYEES GOOD HEALTH.

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annual report
2015
75
NURTURING
OUR TALENT
INTERNAL COMMUNICATION AND ENGAGEMENT In order to facilitate any internal inquiry, we also established a
Human Capital Service Centre (HC Care) as a platform for
We strongly believe employees with high engagement can be employees to communicate with us regarding any Human Capital
expected to outperform those with 'low' engagement. Employee issues and concerns through a helpdesk system. This service centre
engagement is important as it affects employee involvement, will assist Human Capital in resolving and attending issues in
commitment and productivity. timely manner.

Our Employee Engagement Survey administered in the third


quarter of 2015 shows our overall employee engagement index
NURTURING LIFELONG LEARNING
to be 73%. This represented an increase of 5% from 2014 when
In addition to nurturing our employees in their career growth
transformation and structural changes were being made. Our
through our structured continuous training and development
engagement level stood in the top quartile percentage when
programmes, we strive to inculcate lifelong learning in all levels
compared against the Malaysia Country Norm for 2014 2015
of our employees. In this respect, 30 of our employees were given
which stood at 61%, and Financial Services Malaysia for
sponsorships through Yayasan Bank Rakyat to pursue studies
2014 2015 which stood at 69%.
leading to a Bachelors Degree in Islamic Banking from Universiti
Utara Malaysia (UUM-PACE) in 2015.
The top 10 Scoring Items of the Bank Rakyat Employee Engagement
Survey results show that:

Our employees understand and practise our Core Values,


BUDAYA R.A.K.Y.A.T. WE HAVE FOUND THAT IT IS CRITICAL TO
Our employees are proud to be part of Bank Rakyat.
We have an excellent reputation in the community.
HAVE A DIVERSE TEAM IN ORDER TO
It would take a lot to get an employee to leave Bank Rakyat. PROVIDE COMPETITIVE SOLUTIONS AND
Employees workplace safety and healthy are important in CREATIVE IDEAS TO OUR CUSTOMERS.
Bank Rakyat.
Our employees truly enjoy their day-to-day work tasks. HAVING A DIVERSE TEAM FOSTERS DEEPER
Our employees work together to achieve our goals. DIALOGUE INTERNALLY AND RESULTS IN
Our managers encourage, motivate and give employees
guidance to perform their best in executing their daily tasks.
MORE INNOVATIVE THINKING. AS SUCH,
Our managers give appropriate accountability to their WE PROVIDE EQUAL OPPORTUNITIES FOR
subordinates in their work performance.
If Bank Rakyat does well, our employees will appropriately
CAREER ADVANCEMENT REGARDLESS
OF GENDER.

bank rakyat
76 annual report
2015
NURTURING
OUR TALENT

NURTURING WELL-BEING
Humanitarian Aid for Employees and Families Educational Incentives for Employees and Children

Our initiatives to nurture our employees well-being include Bank Rakyat encourages the continuing education and professional
providing aid in times of need. In this regard, we have established development of our employees and rewards employees for
a Disaster Relief Fund, Pemberian Bencana Alam/ Perikemanusiaan, such efforts.
to provide assistance to employees and their families in times of
natural disasters and for humanitarian aid. Further, employees
themselves contribute to another fund, the Employee Welfare from accredited institutions gain cash rewards for their efforts.
Fund (Tabung Kebajikan Warga Kerja) for the same purpose.
for their achievement in 2014.
From December 2014 until January 2015, heavy rains caused
Employees children who obtain good results in their studies are
Kelantan, Terengganu, and Pahang states. Many people were not left out. They too are eligible to receive the incentives. Cash
affected, including Bank Rakyat employees working in our East rewards are given for achievements in Ujian Penilaian Sekolah
coast branches. Rendah (UPSR) and all other examinations right up until
degree level.

113 permanent employees while the Employee Welfare Fund


cash incentive for their achievements in 2014.

established to help send food supplies and other basic necessities


to affected employees.

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annual report
2015
77
NURTURING
OUR TALENT
Nurturing Employee Health
CLOSING THE GENDER GAP
Clearly, healthy employees are happy and productive employees.
In nurturing our employees, we practise equality among the
We thus take initiatives to foster our employees good health.
genders and do not favour any form of discrimination. For us,
increasing gender diversity at all employee levels is both an
To this end, on 20 November 2015, we organised Health Day 2015
ethical and a business imperative.
at our Bank premises with 200 employees participating.
They were given a basic health check-up to check their
We have found that it is critical to have a diverse team in order
blood sugar, cholesterol and blood pressure levels; their
to provide competitive solutions and creative ideas to our
Body Mass Index was calculated and they were given a
customers. Having a diverse team fosters deeper dialogue internally
demonstration of basic CPR. Our pregnant employees were
and results in more innovative thinking. As such, we provide equal
given a check-up, a female health talk was conducted and 40
opportunities for career advancement regardless of gender.

The feedback received during a survey conducted after the


positions. And today, we are proud that we have a woman on our
event was positive, with all stating that they would like such
Board of Directors.
an event to be continued yearly with more types of check-ups and
on a larger scale.
Looking to the future, we aspire to have 30% participation by
women at the top management level. Sustaining a distinctive and
diverse leadership culture is critical to thriving in the marketplace
and makes for successful organisations.

Overall, we are proud that our Employee Satisfaction Index

60%. This speaks well of our initiatives to nurture our employees.

bank rakyat
78 annual report
2015
NURTURING
OUR TALENT

HUMAN CAPITAL BANK DEMOGRAPHIC

5135
headcounts
head office branches & region
1672 1295 377
management non management 3463 1531 1932
management non management

33% 887 male 785 female 67% 2171 male 1292 female

staff permanent contract

87% permanent management


4458 677 2382 444
13% contract non management 2076 233
2% 37% 61%

127BAby boomers 1886 gen-x 3122 gen-y

GENDER, PLACEMENT AND GENERATION

baby boomers baby boomers


4% MANAGEMENT STAFF 2%
56% hq 46%
gen-x 44% BRANCH 54% gen-x
40% 39%
non MANAGEMENT STAFF
gen-y gen-y
56% 63% hq 16% 59%
37% BRANCH 84%

bank rakyat
annual report
2015
79
NURTURING TOMORROWS

ELEVATING Since our establishment in 1954, we have never


wavered from our founding mandate to raise

LIVES: the socio-economic status of the rural agricultural


community, provide opportunities for self-

OUR improvement and to build a better future for their


families as well as their communities. In fact, we

CORPORATE have surpassed our founding mandate.

SOCIAL
INITIATIVES
ELEVATING LIVES:OUR CORPORATE SOCIAL INITIATIVES

CORPORATE SOCIAL RESPONSIBILITY FOR US IS


ABOUT THE WAY WE DO BUSINESS. WE ARE
COMMITTED TO INTEGRATING THE ECONOMIC AND
SOCIAL OBJECTIVES WITH OUR BANKS OPERATIONS
AND GROWTH IN ORDER TO ENGAGE IN ACTIVITIES
THAT CONTRIBUTE TO THE SOCIAL GOOD.
Today, we have gone further by providing opportunities not We effect the socio-economic development of the communities
only for rural communities but also to communities across the we serve, thus effecting positive change and elevating the
lives of many, boosting the economic development of the country,
way to do this is by nurturing our communities, customers, and guaranteeing the sustainability of the Bank.
shareholders, the cooperative movement and our workforce.
Our CSR initiatives are all about developing a business model
Our CSR activities nurture through the provision of educational that not only creates economic value but also contributes to
opportunities for the underprivileged and the community. developing thriving communities. As such, we endeavour to
We nurture children, the leaders of tomorrow, through free evolve and develop appropriate business processes and
tuition classes, workshops and education opportunities. strategies to achieve a common goal which contributes to the
We nurture entrepreneurs through the provision of easy access greater good. We acknowledge our responsibility for the impact
of our activities on our consumers, employees, communities
and small and medium sized enterprises (SMEs). and stakeholders. Hence, we proactively encourage community
growth and development. At the core of our strategy is
our commitment to reach out to marginalized communities.

bank rakyat
82 annual report
2015
ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES
Corporate Social Responsibility for us is about the way we
do business. We are committed to integrating the economic nurturing and creating initiatives that elevate lives in a tangible
and social objectives with our Banks operations and growth way for the communities we operate in. Success comes when
in order to engage in activities that contribute to the others thrive. When others thrive, we succeed.
social good. As a socially responsible corporate citizen we
are committed to ensuring a sustainable future through the And our being awarded the Industry Excellence Award in
socio-economic upliftment of the bottom of the pyramid through Corporate Social Responsibility by Utusan Business Awards 2015
speaks for our efforts.

We focus on driving our strategy of growing responsibly,


managing our risk, and deepening our relationships and
engagement with customers, clients, communities and other
stakeholders. We support local and national efforts to

we only succeed when others are thriving. Corporate Social


Responsibility plays a critical role in our business strategy of
responsible growth and connects us to our core purpose of
making peoples lives better.

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annual report
2015
83
ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES

YAYASAN BANK RAKYAT: NURTURING FOR SUCCESS TOMORROW


Yayasan Bank Rakyat (YBR) was set up on 16 May 2007 During the year under review, we widened our scope and began
under the Trustees (Incorporation) Act 1952 (Act 258)
as an Education Fund operating separately from Bank Rakyat. studies overseas.
This was after approval from Bank Negara Malaysia and
the Ministry of Finance approved the use of the word Bank
in the name Yayasan Bank Rakyat. education to Malaysians while at the same time encouraging
continuous education to enhance existing skills and learning.
YBR carries out its programmes with the main objective
of raising the education level of underprivileged In our efforts to elevate socio-economic status through
Malaysians irrespective of religion, ethnicity and background holistic education in tandem with the nations Education
to work towards raising their socio-economic status Development Plan 2013-2025, we ensure our programmes
through education and knowledge, and to encourage a spirit are comprehensive and continuous. To ensure the sustainability
of cooperation among Malaysians. of our CSR initiatives, we ensure the engagement of Bank
Rakyat, government agencies and communities.
YBR activities are funded by each member (individuals and
cooperatives) of Bank Rakyat. They each donate 0.5% out of the We elevate and nurture the underprivileged, the community
dividends they receive yearly. and the young through providing education opportunities.
We nurture the young through sports, developing creativity
YBR activities take the form of the provision of educational and innovation. In short, we elevate lives through nurturing
assistance in the form of Convertible Education Financing to for success for tomorrow.

Development programmes in order to raise the education In 2015, over RM16 million was allocated for the provision
level in the nation. of education assistance in the form of Convertible Education
Loans while RM6.6 million was allocated to the conduct of
190 educational programmes for the community nation-wide,
involving 23,209 participants.

YAYASAN BANK RAKYAT IS


FIRMLY COMMITTED TO
DELIVERING EDUCATION TO
MALAYSIANS WHILE AT THE
SAME TIME ENCOURAGING
CONTINUOUS EDUCATION
TO ENHANCE EXISTING
SKILLS AND LEARNING.

bank rakyat
84 annual report
2015
ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES

NURTURING THE YOUNG


Tuition Rakyat Developing Personal Excellence

Our Tuition Rakyat classes provide underprivileged students Program Kecemerlangan Diri is a motivational programme
free tuition classes on weekends to help them realise designed to develop excellence in Sijil Pelajaran Malaysia (SPM)
academic success. These classes are for students taking the candidates.
UPSR, PT3 and SPM examinations.
The programme focuses on students in Form Five who do
In 2015, we sponsored 70 schools, with 12 sessions not obtain any help from any other agencies or bodies.
conducted in each school and participated by 3,500 students. YBR is deeply committed to focusing on this group, with
64% of the schools that participated in Tuition Rakyat UPSR the aim of helping them to reach for their dreams through
reported an improvement in student grades. education and self-discipline.

Didik Rakyat Seminars In 2015, the one-day programme which was held in

Didik Rakyat Seminars are our initiative to help children prepare 2003 students. The programme aims to motivate the young
for the UPSR, PT3 and SPM examinations. to reach for their dreams through inspiration provided
by national icons. Major Dr Faiz Khaleed, a national astronaut,
At these seminars conducted by experienced speakers, provided the inspiration to the students.

on how to answer examination questions and prepare for Nurturing Creativity


examinations.
The Robokid Workshop was held to instil creativity and
We conducted 36 seminars during the year. These comprised innovation in students in line with the Ministry of
21 seminars for students taking the UPSR examinations, Educations aspiration to encourage the learning of science,
3 seminars for those taking PT3 examinations and 12 seminars technology, engineering and mathematics with the aim
for those sitting for the SPM examinations. of increasing the nations competitiveness in technological
developments.
Attendance at these seminars was very encouraging with 7,467
children participating. Further, 150 schools were involved in YBR held 6 sessions of the one day workshop in 2015 which
the seminars held nation-wide. saw the participation of 307 primary and secondary
schoolchildren. The facilitators of the programme who were
lecturers from ADTEC Batu Pahat exposed the students
to the basics of circuitry and robotics.

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annual report
2015
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ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES
NuRTuRiNg TEam SPiRiT ThRough SPoRTS

7-a-Side 1 Student 1 Sport (7S1m1S) Soccer Competition orang asli Schoolchildren Sports Tournament (KSSmoa)

The 7-a-Side 1 Student 1 Sport (7S1M1S) soccer competition was The Orang Asli Schoolchildren Sports Tournament (KSSMOA) is
held in 2015 with the objective of developing human capital a collaboration between the Ministry of Education and YBR.
through sports and to reveal young talent from an early age. The tournament aims to instil a culture of sports and to
unearth talent among Orang Asli schoolchildren, a group often
This premier competition involved teams from 16 schools in neglected by other agencies.

13 and 14 November at Universiti Kebangsaan Malaysia in Bangi, The tournament comprised track events, soccer, handball
Selangor. and sepak takraw. In all, 448 schoolchildren participated
in the tournament held in 2015 which was officiated
A collaboration between the Ministry of Education Malaysia, by the Minister of Education, YB Datuk Seri DiRaja Mahadzir
Bank Rakyat branches and YBR, the competition involved 1,440 Khalid.
primary schoolchildren and 144 teams.
Seven states, that is, Johor, Negeri Sembilan, Selangor, Perak,
Pahang, Terengganu and Kelantan took part in the event
held on 15 to 19 November 2015 at Glory Beach Resort,
Port Dickson, Negeri Sembilan.

bank rakyat
86 annual report
2015
ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES

PROVIDING EDUCATION OPPORTUNITIES COMMUNITY EDUCATION PROGRAMMES


Education Financing Talent Rakyat

YBR offers Convertible Education Financing (PPBU) to YBR initiated the Talent Rakyat training programme to aid
underprivileged Malaysians regardless of ethnicity, religion
employment. The objective of this programme is to train
public and private institutions of higher learning, and public and to develop the marketability and employability of
and private training institutes recognised by the Malaysian participants through the provision of industrial training and the
government. acquisition of soft and hard skills.

21 participants comprising students who had been sponsored


by YBR participated in this training programme held at the
Menara Kembar Bank Rakyat in June 2015. Of these, two went
on to further their studies while 12 were successful in
gaining employment.
As at 31 December 2015, YBR had sponsored 2,034 students
in public and private institutions of higher education and
in skills enhancement programmes. Further, 924 students

of these, those with calibre were selected for employment


with YBR and Bank Rakyat.

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2015
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ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES
Nurturing Educators Bachelors and Masters degrees are offered in partnership with
Universiti Utara Malaysia (UUM-PACE) and Putra Business School
YBR also nurtures educators who are vital in the education of (PBS) on a part-time study basis.
our young. In 2015, YBR conducted 14 programmes on
21st Century Learning for teachers to expose them to the latest
teaching and learning methodologies to be applied in schools. comprising Bank Rakyat employees fully-sponsored to
The 3 days programme, a collaborative effort between begin studies leading to a Bachelors in Islamic Finance offered
by UUM-PACE. Classes are held once a month at the Serambi
2,535 teachers. Ilmu Rakyat (SIR) at the Menara Kembar Bank Rakyat.

Nurturing Lifelong Learning in our human Capital Nurturing Schools, universities and the Community

Our Lifelong Learning Programme was introduced to inculcate YBR was provided with an allocation of RM200,000 to generate
a culture of lifelong learning in employees of Bank Rakyat contributions to schools, the community, public and
and Bank Rakyat subsidiaries, and members. This is in tandem private institutions of higher learning. As at December 2015,
with the objective of the establishment of YBR, which is to RM189,812.36 had been disbursed as contribution for
elevate the socio-economic status of Malaysians in general and the implementation of programmes, and the development of
Bank Rakyat members in particular. schools and sports among others.

We aim to provide opportunities for higher education, to enhance Looking towards the future, YBR aspires to further elevate
skills and knowledge, and instil a lifelong culture of acquiring the education and socio-economic level of communities
knowledge regardless of age. in the country through more comprehensive and world-
class programmes. YBR will also continue to provide greater
contribution to programmes that will have a holistic and
positive impact on local communities.

WE AIM TO PROVIDE
OPPORTUNITIES FOR HIGHER
EDUCATION, TO ENHANCE
SKILLS AND KNOWLEDGE, AND
INSTIL A LIFELONG CULTURE OF
ACQUIRING KNOWLEDGE
REGARDLESS OF AGE.

bank rakyat
88 annual report
2015
ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES

BANK RAKYAT CSR ACTIVITIES


Post-Flood Relief mangrove Rehabilitation

In conjunction with the Bank Rakyat 2015 Management


Kolam Mas in Gua Musang, Kelantan from 10 to 12 January 2015. Conference held in Pulau Langkawi on 25 January 2015, a team
The team of volunteers comprised 10 employees from of 120 managers and members of the Conference
the Banks Headquarters and 10 employees of the Banks branch Secretariat planted 700 mangrove plants contriba swamp
in Gua Musang. rehabilitation initiative. This took place at Kg Kubang Badak
with the cooperation of LADA, the Langkawi Department of
The programme included a gotong royong (working together as Environment, the Public Works Department and the Forestry
a community) to clean the Hadhari Mosque, Kampung Kolam Mas, Department. The Langkawi Member of Parliament was also
Gua Musang. The Bank also contributed the carpet for the prayer in attendance.
hall and a loud speaker for the call to prayer.

In addition, the team also distributed necessities such as clothing


for prayer, stoves, mats, disposable baby diapers and sanitary
pads to residents.

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2015
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ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES
Donation and Zakat Payment to masjid Temonyong Temporary homes for Flood Victims

The Bank donated a signboard and a gate and submitted On 18 April 2015, the Bank, in cooperation with Islamic Aid Malaysia
and RTM, delivered temporary homes sponsored by Bank Rakyat
learning how to memorize the Quran) at the Temonyong Mosque
in Langkawi.
In addition, the community got together to paint the homes and
The Bank also gave away Nuri school bags and other necessities enjoyed a feast.
for school to 70 students of Temonyong Kindergarten.
Ramadan Links-Porridge Stirring
This event was also held in conjunction with the Bank Rakyat
2015 Management Conference held in Pulau Langkawi on Each year, the Bank organises the Bank Rakyat Bubur
25 January 2015. Lambuk programme within the courtyard of the Menara Kembar
Bank Rakyat. Bubur Lambuk is a nutritious porridge usually
a Day of Caring made during the Islamic fasting month of Ramadan and
distributed to the public for the breaking of the fast.
During 28 February 2015, the Bank added to the joy of the
Chinese New Year celebrations with 120 residents of various Last year, the event was carried out on 22 June. The preparation
ethnicities at the Kuala Kubu Baru Welfare Home in Selangor. and stirring of the porridge was carried out as a community effort
by Bank employees and management, headed by a chef from
The Bank handed over a donation of RM11, 000 to a representative Kampung Baru. Eight large cauldrons were used to make the
of the management of the Home, distributed Chinese New Year porridge, producing about 4,000 packets for distribution.
hampers and gave a gift of RM50 to each resident.
The porridge was distributed to all employees at the Banks
In addition, the Bank carried out landscaping work at the recreation Headquarters, the public along Jalan Rakyat, at the KL Sentral
area and named it Taman Rakyat.

bank rakyat
90 annual report
2015
ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES

Ramadan Links - Behind Prison Walls

30 selected prisoners at the Sungai Udang Prison were given the opportunity to meet their family members on 30 July 2015, for the

The programme began with a tazkirah (a talk reminding us of our religious obligations). The families of the prisoners then received
aid in the form of daily necessities to alleviate their hardship as most of the prisoners were breadwinners of their families.

The prisoners then broke their fast with their families in their cells. The prison authorities provided strict surveillance to prevent any
untoward incidents.

bank rakyat
annual report
2015
91
ELEVATING LIVES:
OUR CORPORATE SOCIAL INITIATIVES
aid for Children with heart ailments Back to School 2015 aid

On 27 November 2015, Bank Rakyat donated RM150,000 to 32 students aged 7 to 15 orphans and children from needy
children of needy families who were awaiting treatment of their families were provided with school uniforms, school shoes
heart ailments at the National Heart Institute (IJN). This was as and other necessities for the new school year. The children were
part of the Banks collaborative links with IJN. free to make their own selections at Giant Hyper Market in
Batu Caves, Kuala Lumpur.

In addition, the children were given a lunch treat at Kentucky


Fried Chicken (KFC) at which a number of them had never eaten.

This programme was organised in cooperation with Yayasan


Prihatin Insan on 30 December 2015.

OUR CSR ACTIVITIES NURTURE THROUGH THE PROVISION OF EDUCATIONAL


OPPORTUNITIES FOR THE UNDERPRIVILEGED AND THE COMMUNITY. WE NURTURE
CHILDREN, THE LEADERS OF TOMORROW, THROUGH FREE TUITION CLASSES,
WORKSHOPS AND EDUCATION OPPORTUNITIES.

bank rakyat
92 annual report
2015
NURTURING
OUR
CUSTOMERS

Our success over the 60 years has undoubtedly been due to the continual support
of our customers. We view our 6.01 million customers as our strategic partners and

positioning them as the You in Your Choice Bank.


NURTURING OUR CUSTOMERS
Competition within the banking industry In ensuring excellence in our customer Our 148 branches continue to be our
is intense and we are aware that the services, we adhere strictly to our principal banking channel. This was
inculcation of a culture of service Customer Charter which is underpinned one of the strategic initiatives aimed
excellence and keeping our customers by Shariah principles. It sets out our at increasing our customer base and
commitment to the following: position us on par with other commercial
and set us apart from the rest. This has banks in Malaysia. In 2015 our network
Privacy: We treat all information as
lent to our success and this will continue of branches, managed by 5,135 trained
to drive us forward. employees who we regard as our brand
safety of customer information through
advocates provided services to 6.01
the provisions in the Personal Data
We continue to build enduring million customers.
Protection Act 2010 (PDPA 2010).
relationships with our customers and
this strategy has served us well. Being Accountability: We ensure that our To widen our reach and to include
the Choice Bank for our customers, products and services comply with all those with no easy access to banking
we continually improve on our service the relevant laws and regulations and services, we introduced Bank Rakyat
quality so that it exceeds our customers are Shariah compliant. We are also Mobile Banking, a bus that allows
expectations. Our customer base now committed to explaining to our customers customers in rural areas and Felda land
comprises many customers utilizing two re-development schemes to perform
or more of our banking products. services, how they work and the risks banking transactions at their locations.
involved. Further, we introduced mini branches
known as Rakyat Xcess to complement
Fairness: We act in a fair, reasonable,
customers to us and how essential it our existing branches to enable rural
consistent and ethical manner with clear
communities to gain access to our
procedures for resolving disputes in a just
our customers through the provision of banking facilities. These are smaller
and expeditious manner.
needs and also through ensuring they Reliability: We cooperate with the are operational in 148 different locations
obtain our best possible services. relevant regulators and the industry to nationwide.
ensure customers receive secure and
Ensuring Excellence reliable banking and payment systems. We continue to identify new and
Transparency: We strive to provide clear, economically-viable locations for Islamic
Our Customer Charter outlines our
relevant and timely information that will banking services especially in new
overall service values and the standards
assist customers in their decisions on our townships.
customers can expect from us. The Banks
commitment to this Charter permeates products and services. We also practise a
zero tolerance policy towards mis-selling To meet the needs of our growing
our brand promise, ensuring that service
by our employees. customer base and to remain competitive,
consistencies extend throughout all our
we are well-aware of the need to diversify
delivery channels.
Our Varied Services our service delivery channels. We are
mindful of the need to invest in new
Our mission is to continue delivering fast, We also ensure that no segment of technology and maintenance programmes
society should be denied access to for our ATMs and cash deposit machines
We strive to ensure that a majority quality banking services. In keeping with (CDMs). The up-time of our ATMs and
of over-the-counter transactions are the governments vision, we ensure that CDMs currently stands at 98% thanks to
conducted within eight minutes and we our services are easily accessible by all our emphasis on technology and regular
achieve this through the installation of a Malaysians regardless of their location.
monitoring mechanism in each branch to Easy access to our services not only adds delivery.
measure employees performance. to the excellence in the provision of our
services but it also helps us develop
closer relations with our customers.
However, in order to achieve this, a
single banking model will not deliver the
success we aspire to achieve. Thus, we
have made large investments to identify
and diversify our delivery channels.

bank rakyat
94 annual report
2015
NURTURING
OUR CUSTOMERS
We introduced our Internet banking services in 2007 and have Enhancing Service Standards
scored remarkably in terms of achievement. During the year
Our customers and their satisfaction are our top priority.
under review, our Internet banking portal, www.irakyat.com.my
As such, we constantly endeavour to improve our services to our
recorded 104,671 registered users. Realising that this is a
customers and recognize the importance of welcoming feedback
from our customers. Understanding their experience with us
committed to investing in the latest technologies, engage
is imperative for us to remain successful. Hence, we provide a
technical expertise and perform frequent monitoring to ensure
number of channels for our customers to voice their opinions,
that the security and performance of our online banking services
make inquiries and air their dissatisfaction with the quality of
are duly maintained and remain uncompromised.
service received.
In addition, we utilize social media to engage with our
Our tele-Rakyat call centre is manned by trained and
customers. As at 31 December 2015, our Facebook page recorded
knowledgeable Service Consultant Executives to assist our
customers, providing them with essential information about our
3,274 followers.
products and services and to promote our offerings.

We also provide multiple channels for our customers to

AS AT 31 DECEMBER 2015 engage with us through forms available at our branches or


downloadable from www.bankrakyat.com.my/web/guest/
maklumbalas. Customers can also email us their feedback at
jkp@bankrakyat.com.my, or visit our social media channels
OUR FACEBOOK PAGE RECORDED at www.facebook.com/myBANKRAKYAT and twitter.com/
myBANKRAKYAT.

We acknowledge all feedback and complaints received through


telephone, email or facsimile transmittals within 24 hours of

101,096 FANS
receipt. All complaints are treated with urgency and in a fair
and consistent manner. We aim to provide immediate resolution
for telephone complaints, a three-day resolution period for
complaints which require follow-up action and a 14-day period
to resolve complicated complaints. The same applies for
complaints received via email or facsimile transmittal.

our twitter/mybankrakyat Customers can also call Bank Rakyat Customer Service at
profile registered 03-2697-5011/6011/7011, fax to 03-26129655 or email to
aduan@bankrakyat.com.my. We have also put in place a clear
process to ensure that all complaints are given equal attention
with appropriate action taken.

3,274 followers
We benchmark our performance against an 85% satisfaction
rating from our customers for the resolution of complaints and
enquiries.

WE CONTINUE TO IDENTIFY NEW AND ECONOMICALLY-VIABLE LOCATIONS FOR


ISLAMIC BANKING SERVICES ESPECIALLY IN NEW TOWNSHIPS.

bank rakyat
annual report
2015
95
NURTURING
OUR CUSTOMERS
Central Complaint Management System
Effective 28 November 2015, we set up our Central Complaint Management System
(CCMS) in our effort to manage and resolve all complaints received from customers

consolidates all complaints received at the various channels that is, branches, Public
Complaints Bureau, and tele-Rakyat.

In addition to ensuring customer satisfaction, this system will enhance the credibility
and image of the Bank.

WE CONTINUE TO BUILD ENDURING RELATIONSHIPS WITH OUR CUSTOMERS


AND THIS STRATEGY HAS SERVED US WELL. BEING THE CHOICE BANK FOR
OUR CUSTOMERS, WE CONTINUALLY IMPROVE ON OUR SERVICE QUALITY SO
THAT IT EXCEEDS OUR CUSTOMERS EXPECTATIONS.

bank rakyat
96 annual report
2015
GROWING
ENTREPRENEURS
GROWING ENTREPRENEURS

MICRO FINANCING-i
Micro-i Financing Scheme (MUsK-i)
The Micro-i Financing Scheme (MUsK-i)

MUsK-i was set up by Bank Rakyat to aid micro-

in
disbursed up to RM50,000 at competitive rate to
enable them to progress their businesses.
RM44.9 million

2015
In 2015, the scheme disbursed RM44.9
million to 3,215 micro-enterprises. Since

3,215
to
the commencement of the scheme in
2007, RM352.7 million has been paid out,
micro-enterprises

In terms of economic sectors, 70% of


micro-enterprises in the services sector

MPPK-i
received the funding, 21% in the retail

SBR
sector, 5% in the wholesale sector,
2% in the manufacturing sector and
disbursed 1% each in the agriculture and the
construction sectors.
RM2.64
million
Micro Traders and Hawkers Scheme
disbursed Fund (MPPK-i)

495
to RM18.94 to
6,933
The MPPK-i Fund assists micro-traders
million
and hawkers by providing them access
micro-traders
and hawkers petty traders
and hawkers RM50,000, thus enabling them expand
their businesses and improve their lives.

E
The fund, which is mandated by the
2 Ministry of Domestic Trade, Co-operatives
and Consumerism Malaysia, furnished
disbursed

RM3.5
scheme has disbursed RM74.79 million to

million its inception in 2013.

benefitted 9 mobile hawkers


with a total disbursement of
to

RM450,000 104 SMEs

bank rakyat
98 annual report
2015
GROWING
ENTREPRENEURS

Ramadan Bazaar Scheme (SBR) SME Corp Fund: Enrichment and Enhancement Programme (E)

Trade, Co-operatives and Consumerism Malaysia, provides RM50,000 to SMEs to assist them in developing as competitive,
innovative and resilient businesses. This fund disbursed RM3.5
and hawkers who run their businesses during the Islamic million to 104 SMEs in 2015, aiding them to further grow their
month of Ramadan. In total, SBR disbursed RM18.94 million businesses.

traders and hawkers in 2015.

1Malaysia Mobile Hawkers (1MMH)

Domestic Trade, Co-operatives and Consumerism Malaysia.

9 mobile hawkers with a total disbursement of RM450,000


in 2015.

bank rakyat
annual report
2015
99
GROWING
ENTREPRENEURS
Rural Economic Financing Scheme (SPED)
This fund was set up with the following objectives:

To increase the number of rural Bumiputera entrepreneurs in all dynamic and legal economic areas;
To upgrade the business of rural Bumiputera entrepreneurs to be more dynamic, competitive and resilient;
To provide funding facilities for rural Bumiputera entrepreneurs in order to improve the rural economy;
To provide a collateral-free funding scheme with a low instalment rate; and
To encourage the creation of a Bumiputera Commercial and Industry Community (BCIC) among rural residents.

As at 31 December 2015, a total of RM8.14 million was disbursed to 71 out of 103 approved applicants in 2015. Since the inception

Summary of Government Funds


Cumulative as at 31 December 2015

Fund Size/ Applications Outstanding Fund


Type of Disbursement
Allocation Approved Balance Availability
Funds
RM Million No RM Million RM Million RM Million RM Million
SPED 189.84 85.01 19.13
Total 146.04 1,681 189.84 170.46 85.01 19.13

January 2015 to December 2015

Fund Size/ Applications Outstanding Fund


Type of Disbursement
Allocation Approved Balance Availability
Funds
RM Million No RM Million RM Million RM Million RM Million
SPED 0 103 9.80 8.14 85.01 19.13
Total 0 103 9.80 8.14 85.01 19.13

Modernisation of Automotive Workshops (ATOM-i)


ATOM-i is a programme aimed at the modernization of existing automotive workshops to compete in the highly competitive automotive
service industry. The programme is implemented in collaboration with automotive associations and organisations as consultants and
will be continued until 2020.

Funds for the programme are used to make changes to the workshops, modify, and upgrade the premises or equipment, buy stocks
and for working capital and the purchase of a point-of-sale system.

bank rakyat
100 annual report
2015
GROWING
ENTREPRENEURS
Summary of Government Funds
Cumulative as at 31 December 2015

Fund Size/ Applications Outstanding Fund


Type of Disbursement
Allocation Approved Balance Availability
Funds
RM Million No RM Million RM Million RM Million RM Million
ATOM 90.50 885 71.17
Total 90.50 885 84.56 76.13 71.17 6.98

January 2015 to December 2015

Fund Size/ Applications Outstanding Fund


Type of Disbursement
Allocation Approved Balance Availability
Funds
RM Million No RM Million RM Million RM Million RM Million
ATOM 15.50 13.38 18.23 71.17
Total 15.50 136 13.38 18.23 71.17 6.98

Note:
Since 2011, a total of RM25.50 million was transferred from the TUKAR Fund to ATOM Fund (as per the direction of the Ministry of Domestic Trade,
Co-operatives and Consumerism Malaysia).
During the approval meeting Pukal Projek TUKAR and ATOM (No. 15/2015) dated 2 July 2015, MDTCC decided to postpone the approval of the loan
application ATOM until additional fund is received.

Retail Shop Transformation Programme (TUKAR-i)


The Retail Shop Transformation Programme or TUKAR-i is a programme designed to modernize existing traditional grocery stores to
compete in a highly competitive retail business.

The programme is implemented in collaboration with local and foreign hypermarkets as the consultants. This programme will be
ongoing until 2020 with a target of up to 5,000 retail outlets to be modernized.

As at December 2015, RM11.22 million was disbursed to 140 approved applicants. Since the inception of the fund in 2011, we have

We wish to place on record that since 2011, a total of RM25.50 million has been transferred from the TUKAR-i Fund to ATOM-i Fund
at the direction of the Ministry of Domestic Trade, Co-operatives and Consumerism Malaysia.

bank rakyat
annual report
2015
101
GROWING
ENTREPRENEURS
Summary of Government Funds

Cumulative as at 31 December 2015

Fund Size/ Applications Outstanding Fund


Type of Disbursement
Allocation Approved Balance Availability
Funds
RM Million No RM Million RM Million RM Million RM Million
TUKAR 104.50 83.05 15.14
Total 104.50 1,416 93.96 83.05 74.26 15.14

January 2015 to December 2015

Fund Size/ Applications Outstanding Fund


Type of Disbursement
Allocation Approved Balance Availability
Funds
RM Million No RM Million RM Million RM Million RM Million
TUKAR 0 140 11.22 15.14
Total 0 140 10.66 11.22 74.26 15.14

Note:
Since 2011, a total of RM25.50 million was transferred from the TUKAR Fund to ATOM Fund (as per the direction of the Ministry of Domestic Trade,
Co-operatives and Consumerism Malaysia).

1MALAYSIA STUDENT DISCOUNT CARD


The 1Malaysia Student Discount Card is a card which allows Malaysian students at institutes of higher education in Malaysia
and overseas to enjoy discounts for the purchase of goods and services from selected Trade Partners, reducing their expenses.

CONSUMER SQUAD CARD


This discount card issued by the Bank to members who are Malaysian citizens and aged 18 years and above is an initiative by the
Ministry of Domestic Trade, Co-operatives and Consumerism Malaysia.

Cardholders enjoy discounts on a wide range of goods and services offered by merchants registered with the Ministry.

bank rakyat
102 annual report
2015
NURTURING
THE UMMAH

As an Islamic cooperative bank operating completely on Shariah principles, Bank Rakyat


NURTURING The Ummah
We are well aware that Islamic banking
is much more than just refraining from
charging interest and conforming to
Shariah requirements on offering Islamic

the socio-economic objectives and the

requires us to see ourselves as stewards


or caretakers, not just of shareholders

blessing from God who is the ultimate

centeredness and covetousness and

As such, CSR activities for the ummah

the Islamic objectives of economic and


social justice, equitable distribution

THIS SENSE OF DUTY, RESPONSIBILITY, AND SPIRIT OF


SACRIFICE WHICH ISLAM NURTURES HELPS REMOVE
SELF-CENTEREDNESS AND COVETOUSNESS AND
PROMOTES COMPASSION, CARING, COOPERATION, AND
HARMONY AMONG THE UMMAH.

bank rakyat
104 annual report
2015
NURTURING
The Ummah

SURAU AL-BARAKAH
Nurturing the Ummahs Young
Super Prayer Clinic

bank rakyat
annual report
2015
105
NURTURING
The Ummah

Mass Circumcision Quran Memorization and Smart Solat Camp

VIPs with a bunga manggar Bunga manggar is a neuro nadi technique of

bank rakyat
106 annual report
2015
NURTURING
The Ummah

SHARIAH CSR PROGRAMMES HUMANITARIAN MISSION TO CAMBODIA


Surau Al-Barakah also carries out its CSR

Among the activities are the making

bank rakyat
annual report
2015
107
NURTURING
The Ummah

REPAIR AND CONSTRUCTION OF HOMES

AMONG THE ACTIVITIES ARE THE MAKING OF VISITS TO THE HOMES OF THE
NEEDY TO FIND OUT WHAT THEIR NEEDS ARE, TO MAKE CONTRIBUTIONS AND
TO SHARE IN THEIR JOYS AND EASE THEIR DIFFICULTIES.

bank rakyat
108 annual report
2015
NURTURING
ISLAMIC
BANKING
NURTURING ISLAMIC BANKING

In nurturing the ummah, we have a similar responsibility to

and the teachings of the Prophet Muhammad (pbuh) known as


relationship with God and gives them the norms which govern
of common law rulings and scholarly interpretations referred to
spiritual, political, social economic, moral and all other material
of the Shariah, of its texts, or its principles, or a combination of the

Islamic banking is banking or banking activity that is consistent


with the principles of the Shariah or Islamic law and its practical
As such, we are committed to continuously provide an
enabling platform for fostering cooperation and collaboration
(riba or usury among Shariah scholars in particular to address important

industry and to harmonize global Shariah rulings pertaining

organized the Bank Rakyat International Islamic Banking

Rakyats International Shariah Scholar Roundtable (iSHAR)

bank rakyat
110 annual report
2015
NURTURING
ISLAMIC BANKING
International Shariah Scholar Roundtable (iSHAR)

Bank Rakyats International Shariah Scholar Roundtable (iSHAR)


or Al-Multaqa `Ulama Al-Shariah Al-Duali in Malaysia to organise and fully sponsor an international Islamic
banking conference and an international Shariah roundtable,

scholars and intellectuals from Egypt, Bahrain, United Kingdom,


Saudi Arabia and United Arab Emirates, and Malaysian scholars Islamic Banking Conference (iiBC) held last year and which made
who included Shariah Advisors with the Central Bank of Malaysia a breakthrough in gathering prominent Islamic scholars to engage
and Securities Commission Malaysia, and those who sit on Shariah
Committees of various Islamic banks in Malaysia participated in continuously provide an enabling platform for fostering cooperation
and collaboration among Shariah scholars in particular to address

selected Shariah issues and challenges encountered within the

resolutions to close the gap between Shariah standards applied


in various jurisdictions and harmonize their implementation

bank rakyat
annual report
2015
111
NURTURING
ISLAMIC BANKING
rahmatan lil-alamin

has grown to be one of the fastest growing segments of the


Harmonization is not about changing fundamental aspects of law,

bright growth prospects for the industry which is now becoming evolves, and our understanding of its nature and usefulness for

to tap into this growing market, testament to its universal like this play a key role in facilitating this, leading to the realisation

Feedback received stated that, as a platform to deliberate cross


development of the industry accelerates and as the environment border Shariah issues and to reach a common agreement to facilitate
becomes increasingly more competitive, the industry is continuously
faced with more issues and challenges, all of which require concerted

Bank Rakyat will publish and issue the resolutions on international


A major challenge is the issue of standardization and Shariah standards resulting from these discussions as a reference
for Islamic scholars, practitioners and interested parties, all for

to different interpretations leading to different practices and use

a call for harmonization, standardization and mutual recognition


of Shariah views so that legal uncertainty and the degree of

bank rakyat
112 annual report
2015
EMPOWERING
COOPERATIVES

Bank Rakyat, the largest Islamic cooperative bank in Malaysia


and the primary contributor to the growth of the Malaysian
cooperative sector, plays a key role in the development of the
sector. We share and contribute towards the realisation of
making the governments aspiration of making the cooperative
sector the third engine of the nations economic growth.

Our members are among the nations oldest cooperatives and


as such we continue to support initiatives that contribute to
eradicate poverty, reducing the socio-economic gap between
urban and rural communities. The various initiatives we
undertake in empowering and invigorating the cooperative
movement and its members provide testimony to our
determination in this respect.

In 2015, our contribution to the Cooperative Education Trust Fund

to the Cooperative Development Provident Fund.


EMPOWERING COOPERATIVES

Opportunities in the Franchise Business

The Ar-Rahnu Xchange offers qualified cooperatives the This franchise model has garnered outstanding demand from both
opportunity to own a pawnbroking business based on Shariah Muslims and non-Muslims as it is a secure and proven system that
principles under a franchise programme. Since the establishment of offers attractive returns and the Bank is one of the nations leading
its pawnbroking operations in 1993, Bank Rakyat has experienced operators of Islamic pawnbroking services. This Shariah compliant
business offers enormous potential for participating cooperatives
option compared to the conventional pawnbroking model. and as of 31 December 2015, 87 cooperatives - an increase of
7 cooperatives from 2014, has capitalised on the franchise
programme and generated RM374 million as compared to
RM442 million in 2014.

bank rakyat
114 annual report
2015
EMPOWERING
COOPERATIVES

Cooperative Business Development Seminar Islamic Credit System Seminar

As one of our ongoing initiatives to add value to cooperative Being the nations largest Islamic cooperative bank, Bank Rakyat
members and micro-entrepreneurs, we conduct cooperative possesses the capability, knowledge and technical expertise to
development seminars with the objective of providing guidance
and training to micro-enterprises to expand their businesses.

In 2015, we conducted six such seminars for cooperatives and


entrepreneurs in the food and agriculture industries in Negeri In view of this, we organised six seminars on the Islamic Credit
Sembilan, Sabah, Perak, Kedah, Johor and Selangor. The seminars System for credit cooperatives at no cost to them during the year
were conducted in collaboration with government and private under review. These were held in Selangor, Pulau Pinang, Kelantan,
agencies. Pahang, Melaka and Sarawak.

The seminars provided counselling and training in supporting credit


on how to improve the quality of packaging, labelling and cooperatives expand their business activities and implementing
branding of their products, and understanding of the concept

authorities in terms of documentation, equipment and machine


tools and equipment and the supply of products.
system, and were also provided information on all business
They were also given guidance on how to implement hygiene opportunities including opportunities created by the Bank available
practices, vital as they are the measure of quality for products to cooperatives to generate their income.
purchased by consumers. In addition, they were equipped with
strategies to formulate effective marketing strategies to enable
them to explore and compete in the open market, providing them more registered cooperatives and cooperatives under Bank Rakyat
with the extra edge to grow their businesses. to implement a Shariah compliant system as practised by the
Bank in addition to sharing knowledge and expertise in assisting

system.

BEING THE NATIONS LARGEST ISLAMIC COOPERATIVE BANK, BANK RAKYAT


POSSESSES THE CAPABILITY, KNOWLEDGE AND TECHNICAL EXPERTISE TO
HELP COOPERATIVES TO DEVELOP THEIR SHARIAH COMPLIANT FINANCING
SERVICES AND EXPAND THEIR ACTIVITIES INTO ISLAMIC FINANCING FOR
THE BENEFIT OF THEIR MEMBERS.

bank rakyat
annual report
2015
115
EMPOWERING
COOPERATIVES

CO-OP Card

The CO-OP Card programme is another one of Bank Rakyats


initiatives representing our commitment to the cooperative local business community, by enhancing their relationship with
movement, to members of cooperatives and the general public. their members and by extending their reach.

The programme strengthens ties within local communities and


invited to participate in various marketing activities initiated by supports communities and the rakyat by helping to alleviate the
the Bank, gaining in terms of sales and customers. In return, the
merchants offer attractive discounts for their products and services
to CO-OP cardholders such as discounts on a variety of products
and services such as hotel rooms, homestays, food, beverages REGISTERED COOPERATIVES AS CO-OP MERCHANTS
and tourism packages. AS AT 2014 AS AT 31 DECEMBER 2015 TOTAL

12 15 100 CARDHOLDERS

179,946

bank rakyat
116 annual report
2015
EMPOWERING
COOPERATIVES

Bank Rakyat Service Agents Rakan KO-OP Programme

Open to all registered cooperatives in Malaysia, this initiative The Rakan KO-OP programme initiated by the Bank is open to all
was introduced in 2007 to support the objective of the Ministry registered cooperatives and comprises services and assistance
of Domestic Trade, Co-operatives and Consumerism Malaysia to to help small and medium scale cooperatives enhance their
develop and enhance the cooperative sector. It was also begun competitiveness by upgrading their management competency
to create convenience for existing and potential customers in and diversifying business activities.
subscribing to the Banks products and services without needing
to go to the Bank or its branches. Assistance provided include free consultancy and advisory,
financing assistance, and sharing of expertise in the
The scheme aims to diversify the activities of cooperatives into implementation of a Shariah-based Financing System. Other
the financing sector and increase their revenue through
if the activities of the cooperatives and the Bank are identical,
programme also introduces and promotes the Banks products synergizing businesses through business matching programme,
and facilities to cooperative members, and the Banks existing and the establishment of a two-way relationship with Bank
and potential customers. Rakyat.

Bank Rakyat Service Agents are located in unserved and remote As at 31 December 2015, the number of cooperatives that
areas while in the Klang Valley, they act as supplementary points. participated in the programme stood at 146.

Our strategies to strengthen this initiative are to encourage Showcase Cabinet


cooperatives in public and private institutions of higher learning
To help cooperatives and entrepreneurs promote their products to
commission rate offered by the Bank. a wider market at no cost charged, Bank Rakyat provides showcase
cabinets at all branches. This creates awareness among consumers
Included in our strategies are also to encourage Agents to enlarge of the existence of cooperatives and entrepreneurs product and
their activities or business by becoming agents for new programmes services available in the market as new products are displayed
where appropriate, improve the services of current Agents by every month.
conducting regular visit and retrain where appropriate and appoint
the most suitable cooperatives as Agents.
gaining market access through the Banks network, and promoting
As at 31 December 2015, we have placed 39 ATMs on the premises that their products are of high quality and commercial value
of selected cooperatives. comparable to other products in the market. It also provides the
opportunity to create strategic business relationships between
producers, distributors and consumers through business matching
sessions organised by Bank Rakyat and government agencies.

During the year, 55 cooperatives and 172 entrepreneurs displayed


their products.

THE COOPERATIVES ALSO BENEFIT BY BUILDING STRONGER TIES WITH THE


LOCAL BUSINESS COMMUNITY, BY ENHANCING THEIR RELATIONSHIP WITH
THEIR MEMBERS AND BY EXTENDING THEIR REACH. THE PROGRAMME
STRENGTHENS TIES WITHIN LOCAL COMMUNITIES AND SUPPORTS
COMMUNITIES AND THE RAKYAT BY HELPING TO ALLEVIATE THE FINANCIAL
BURDEN RESULTING FROM THE INCREASED COST OF LIVING.
bank rakyat
annual report
2015
117
EMPOWERING
COOPERATIVES

Strategic Alliance between Bank Rakyat and Maktab


Koperasi Malaysia (MKM)

Bank Rakyat entered into a strategic alliance with Maktab Koperasi With the alliance, Bank Rakyat will assist MKM to promote
Malaysia with the signing of a Memorandum of Understanding the products of cooperatives in showcase cabinets on the premises
on 19 March 2015.
information and assistance to the Bank in the marketing of its
The MoU was signed to stimulate the development of cooperatives products and services to cooperative members in the following:
to contribute towards the achievement of the National

from the cooperative sector, to provide opportunities to branch medium, and commercial categories.
out to explore the cooperative market that is still almost Providing opportunities for cooperative commission income
totally unexplored and reduce Banks dependence Bank on existing to be inducted into product marketing.
markets.
Providing exposure of the Shariah compliant Investment
Account, Savings Account-i and eCurrent Account-i that
offer attractive returns to the cooperatives Fund Management
Masjid or Donation Fund.
Establishing a programme through Bank Rakyat Foundation
COOPERATIVES BENEFIT with MKM for the success of education activities.

FROM THE BANK'S Placing ATMs and CDMs in cooperatives proposed by MKM
after approval by the cooperatives.

MARKETING NETWORK BY
BEING INVITED TO
PARTICIPATE IN VARIOUS
MARKETING ACTIVITIES
INITIATED BY THE BANK,
GAINING IN TERMS OF SALES
AND CUSTOMERS.

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CORPORATE
GOVERNANCE
Board of directors and Main coMMittees
The Board of Directors of Bank Kerjasama Rakyat Berhad (BKRM) believes that good corporate governance is the foundation to
BKRMs long term success and committed to achieve the highest standards of business integrity, professionalism and ethics to its
shareholders and stakeholders.

BKRMs corporate governance model is ultimately designed based on stringent corporate governance practises and regulations and

management mechanisms.

THE BOARD OF DIRECTORS


1. Composition of Board

As at 31 December 2015, there are twelve (12) Directors on the Bank Rakyats Board, comprising of:

Seven (7) Independent Non-Executive Directors.


Two (2) Non-Independent Non-Executive Directors (Nominees from Ministry of Finance and Ministry of Domestic Trade,
Co-operatives and Consumerism) with one (1) Non-Independent Executive Director, designated as Managing Director.
Two (2) Independent Non-Executive Directors were appointed from among the Cooperatives Members in 2014 to
represent the co-operatives members interest on the Board of Bank Rakyat.

The current Board composition complies with paragraph 2.18 of Bank Negara Malaysia Guidelines on Corporate Governance
for Development Financial Institutions. More than half of the members are Independent Directors which provides an effective
check and balance in the functioning of the Board.

that provides the necessary experience needed to develop strategies and action plans to effectively overcome the challenges
and obstacles faced in todays banking environment.

2. Board Charter

In 2014, The Board formalised a Board Charter setting out the duties, responsibilities and functions of the Board in accordance
with the principles of good corporate governance set out in the guidelines issued by the regulatory authorities. The Board Charter

The Board Charter covers the following key areas:

i) The Size and Composition of the Board


ii) New Appointment/Reappointment of the Directors
iii) The Role and Responsibilities of the Board
iv) Code of Conduct for the Directors
v) Conduct of the Board Meetings
vi) Roles of Chairman
vii) Roles of Managing Director
viii) Roles of Independent Non-Executive Directors
ix) Roles of Board Committees

3. Roles and Responsibilities of the Board

of the Bank.

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Board of directors
and Main coMMittees
The Board assumes the following key roles:

Provides strategic guidance and direction for the Bank;


Reviews and approves, in consultation with the Managing Director/President and senior management, the business
plans and policies of the Bank; and

The major responsibilities of the Board include:

a) Finance and Operations

i) Review and approve the Banks business strategies.


ii) Provide clear objectives and policies within which management is to operate.
iii) Review, approve and monitor budgets, major capital commitments, capital management, acquisitions and
divestitures.

v) Provide input and feedback, review and approve managements development strategies and performance objectives.
vi) Ensure managements performance in implementing the approved strategies, plans and budget within the
approved risk appetites.
vii) Review and approve the Banks business and operational policies in all material aspects including but not

compliance policies, procurement policies, outsourcing policies, IT security and IT related policies, human
resource and manpower policies, salary and remuneration schemes, authority limits granted to key senior
management personnel and the development and implementation of new businesses, products and services.

into, or variation of, any contract, transaction, arrangement or commitment with any related party or any

x) Determine dividend policy and the amount, nature and timing of dividends to be paid.
xi) Select, appoint and terminate the appointment of the external auditor.
xii) Oversee the Audit and Examination Committees evaluation of the performance of the external auditor and on-
going independence.
xiii) Ensure and maintain corporate governance standards and set Key Performance Indicators to enhance business
prosperity and corporate accountability.

b) Risk Management

i) Review and approve risk management framework and policies and ensure that the Bank establishes adequate
internal controls and infrastructure to effectively monitor and manage these risks.
ii) Review and approve the Banks Business Continuity Management Policy in dealing with extreme internal or
external events and disasters.
iii) Evaluate the effectiveness of the Management in controlling and handling the risks of the Bank.

c) Internal Audit
i) Establish the functions, role and responsibilities of the internal audit division and the scope and nature of

independent evaluation on the adequacy and compliance with established policies and procedures.
ii) Evaluate the lines of reporting of the internal audit function and the procedures used to report internal control

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d) Human Resource and Governance

i) Review and approve the appointment, job grade, promotion, remuneration, compensation and removal of key
management personnel.
ii) Review and approve Human Resource policies including but not limited to: succession planning for the orderly

procedures, disciplinary action procedures and grievance procedures.


iii) Undertake on-going assessment and annual review the performance of the Chairman, Managing Director and
Individual Directors and key senior management personnel and evaluate the effectiveness of the Board.

appointments for directors.

e) Compliance

i) Review relevant reports and proposals to ensure the operations of the Bank are in compliance with the relevant
laws, statutory acts, Shariah principles and established policies and procedures of the Bank.
ii) Uphold and observe all applicable laws, regulations, rules, directives, guidelines and circulars (including
continuous disclosure) and ethical standards.

authorities in relation to compliance with regulatory requirements.

f) Others

i) In carrying out its functions, the Board has access to the records, properties and personnel of the Bank.

4. New Appointment and Re-Appointment

1. The Board, through recommendations made by the Nomination Committee, submits the names of candidates to the
Minister for appointment or re-appointment supported by:-

decision on the appointment or re-appointment; and

proposing re-appointment, that following the Boards annual performance evaluation, the individual contributes
effectively to the functions of the Board, possesses special expertise and demonstrates commitment to the role.

2. Upon obtaining the Ministers assent on the proposed candidates, the Bank submits application to Bank Negara

or re-appointment of the proposed candidates.

4. The decisions of the Minister on all appointments and re-appointments are conveyed to the Chairman.

5. The appointment of the Directors is for a term not exceeding two (2) years and any such appointee is eligible for re-
appointment for a term not exceeding one (1) year.

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5. Training and Continuous Professional Development of Directors

Continuous Training is vital for the Directors to gain insight and keep abreast with the development in the banking industry to
further enhance their skills and knowledge in discharging their responsibilities effectively.

Any Directors of the Bank are required to register for the Directors core training program under the Financial Institutions
Directors Education Program (FIDE). The Directors are also encouraged to attend other training that is relevant to enable
them to discharge their responsibilities effectively. In this regard, focus will be on the elective training organised by FIDE as
such training is structured based on areas that is relevant to the banking industry. The Directors can also attend other training
organised by local professional bodies and regulatory authorities in areas that are relevant to the Bank.

The training needs of directors will be on a continuous basis and the areas determined will be used to provide further
understanding of the issues faced by the Bank.

6. Independent Non-Executive Directors

The effective participation of independent non-executive directors enhances accountability in the boards decision making
process. The responsibilities of independent non-executive directors should therefore include the following:

(a) To provide and enhance the necessary independence and objectivity to the board;
(b) To ensure effective checks and balances on the board;
(c)
(d) To constructively challenge and contribute to the development of business strategy and direction of the DFI; and
(e) To ensure that adequate systems and controls to safeguard the interests of the DFI are in place.

In addition to the rights accorded to directors, independent non-executive directors may request that their views, comments
and stance are recorded to enable them to effectively discharge their duties.

7. Directors Remuneration

The remuneration and allowances of the Chairman and all other directors is determined by the Minister-in-charge and with
the concurrence of the Ministry of Finance.

Directors remuneration is reported in the notes to the accounts in the Financial Statement section.

8. Roles and Responsibilities of the Chairman

The Chairman is responsible for:-

a) The leadership and management of the Board and ensuring that the Board and the Board Committees function effectively;
b) Chairing all Board meetings and leading discussion among directors;
c) Ensuring that the directors receive accurate, timely and clear information to enable them to discharge their duties. The
directors are entitled to request for additional information where they consider such information necessary to make
informed decisions;
d) Ensuring that the views, guidelines, circulars and directives of Bank Negara Malaysia, the Ministry of Finance (MoF)
and the Minister are communicated to and adhered by the Board;

both on the Board and on Board Committees;


f) Facilitating the effective contribution of all directors at Board meetings; and
g) Promoting constructive and respectful relations between directors, and between the Board and management.

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9. Roles and Responsibilities of the Managing Director/President

The Managing Director/President is responsible for:-

a) The development, in conjunction with the Board, and implementation of short, medium and long-term corporate
strategies for the Bank, preparing business plans and reports with senior management and reporting/presenting to the
Board on current and future initiatives;
b) Ensuring that the policies and decisions approved by the Board are carried out by management to their desired outcomes;

d) Ensuring that the Bank has the appropriate risk management policies in place;
e) Providing strong leadership and, together with management, communicating the Banks vision, management philosophy
and business strategy to the employees;

g) Bringing material and other relevant matters to the attention of the Board in an accurate and timely manner.

10. Board Meetings

The Board of Directors meets at least once a month and additional meetings are held when required. Fifteen (15) Board
meetings were held during the year ending 31 December 2015, including three (3) Special Board Meetings, to deliberate on

business. The composition of the Board of Directors and attendance at Board meetings are as follows:

Name Attendance at Board Meetings


Datuk Mat Noor Nawi 7/7
(Appointed Chairman until 15 July 2015)
General Tan Sri Dato Sri Abdul Aziz Zainal (R) 8/8
(Appointed Chairman effective 16 July 2015)
Dato Mustafha Hj. Abd. Razak 15/15
Managing Director
Dato Sri Alias Hj. Ahmad 11/15
(Appointed effective 7 January 2015)
Dato Siti Zauyah Md. Desa 8/8
(Appointed effective 1 July 2015)
Tan Sri Dr Alies Anor Abdul 13/15
(Appointed effective 16 July 2014)
Dato Abdul Mutalib Alias 10/15
(Appointed effective 1 July 2010)
Datuk Hj. Abdul Rahman Kasim 15/15
(Appointed effective 15 April 2014)
Dato Dr Roselan Baki 13/15
(Appointed effective 15 April 2014)
Datuk Hj. Mohd. Idris Hj. Mohd. Isa 14/15
(Appointed effective 1 October 2014)
Dato Hj. Abdullah Hj. Abas 15/15
(Appointed effective 27 October 2014)
Dato Hj. Ismail Nordin 8/8
(Appointed effective 1 July 2015)
Encik Razalee Amin 8/8
(Appointed effective 1 July 2015)

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and Main coMMittees
11. Board Committees

The following standing committees have been established to assist the Board in carrying out its responsibilities:-

a) Audit and Examination Committee;


b) Risk Management Committee;
c) Nominations Committee;
d) Remuneration Committee;
e) Financing Committee;
f) Investment Committee; and
g) Tender Board.

The composition, roles and responsibilities of the Board Committees are laid out in their respective charters.

The members serving the Board Committees shall be changed at appropriate and regular intervals. To ensure that the entire
Committee is not replaced at any one time, such change of members shall be done on rotation basis.

a) Audit and Examination Committee

controls and governance processes. The Audit and Examination Committee shall comprise not less than three (3) Non-
Executive Independent Directors of the Board with expertise and wide experience in the relevant area. The Committee

Examination Committee and attendance at meetings are as follows:

Name Attendance at Meetings


Datuk Hj. Mohd. Idris Hj. Mohd. Isa 14/14
(Appointed Chairman effective 1 November 2014)
Tan Sri Dr Alies Anor Abdul 10/14
(Appointed effective 1 November 2014)
Datuk Hj. Abdul Rahman Hj. Kasim 9/9
(Appointed from 29 April 2014 until 28 July 2015)
Dato Hj. Abdullah Hj. Abas 14/14
(Appointed effective 8 January 2015)
Dato Dr Roselan Baki 4/5
(Appointed effective 28 July 2015)
Encik Razalee Amin 4/5
(Appointed effective 28 July 2015)

The objectives of the Audit and Examination Committee are:

To assist the Board in the discharge of its statutory duties and responsibilities relating to accounting and
reporting practices of the Bank, its subsidiaries and Yayasan Bank Rakyat;

To ensure that adequate risk management processes and checks and balances are in place for the proper overall
management of the Bank.

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The function of the Audit and Examination Committee:

The Committee has explicit authority to investigate matters within its terms of reference in line with such limits as
may be determined by the Board from time to time. During the discharge of such duties, the Committee shall have full
and unrestricted access to:-

The records, properties and personnel of the Bank;


Cooperation from management and the discretion to invite any director and employee to attend its meetings;
The advice and services of the Secretary of the Bank, the Managing Director/President, the Chief Internal
Auditor and external auditors; and
The independent professional advice and expertise necessary to perform its duties at the expense of the Bank
provided that written approval from the Board must be obtained prior to the incurring of any such expense on
behalf of the Bank.

The Committees duties and responsibilities are to:

Ensure that the accounts are prepared in a timely and accurate manner with frequent reviews of the adequacy

Ensure fair and transparent reporting of the accounts for submission to the Board and ensure the prompt
publication of annual accounts.
Establish an internal audit function which reports directly to the Committee.
Oversee that the internal audit function has an appropriate standing within the Bank and has access to the
Committee at all times, evaluate their performance and report to the Board at regular intervals.
Oversee, review and report to the Board the adequacy and effectiveness of the internal audit function, internal
controls and risk management and governance processes (including compliance with Shariah).
Ensure that all fraud and non-fraud related irregularities are investigated and the responses and explanations

Recommend to the Board the external experts to be engaged and the fees payable where the internal audit
function lacks expertise needed to perform specialized audit and ensure clear establishment of the terms and
scope of engagement, working arrangement with the internal auditors and reporting requirements.
Review and determine the deliverables of the Shariah audit function upon consultation with the Shariah
Committee.
Oversee the function of the external auditors.

management.

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b) Risk Management Committee

The Committee comprises of not less than three (3) non-executive independent directors of the Board. The Risk

the Risk Management Committee and attendance at meetings are as follows:

Name Attendance at Meetings


Dato Abdul Mutalib Alias 5/5
(Chairman effective 1 November 2014)
Datuk Hj. Abdul Rahman Kasim 3/3
(Appointed from 1 July 2014 until 27 July 2015)
Datuk Hj. Mohd. Idris Hj. Mohd. Isa 3/3
(Appointed effective 1 November 2014)
Dato Siti Zauyah Md. Desa 2/2
(Appointed effective 28 July 2015)
Dato Dr Roselan Baki 2/2
(Appointed effective 28 July 2015)
Tan Sri Dr Alies Anor Abdul 2/2
(Appointed effective 28 July 2015)
Razalee Amin 2/2
(Appointed effective 28 July 2015)

The objectives of the Risk Management Committee are:

To ensure that adequate risk management processes and checks and balances are in place for the proper overall
management of the Bank; and
To foster the establishment and maintenance of an effective risk awareness culture throughout the Bank and
the Banks compliance with policies and legal and regulatory requirements.

The function of the Risk Management Committee:

The Committee shall have the authority to deliberate and approve on matters within its primary duties and
responsibilities in line with such limits as may be determined by the Board from time to time. During the discharge of
such duties, the Committee shall have access to:-

The records, properties and personnel of the Bank;


The advice and services of senior management personnel of the Risk Management and Compliance sectors and

The independent professional advice and expertise necessary to perform its duties at the expense of the Bank
provided that written approval from the Managing Director must be obtained prior to the incurring of any such
expense on behalf of the Bank.

The Committees duties and responsibilities are to:-

Oversee the effectiveness of the risk management function and ensure compliance with relevant Bank Negara
Malaysias Guidelines on risk management function requirements.
Review the implementation of capital management in line with the Capital Adequacy Framework for Islamic
Bank issued by Bank Negara Malaysia and approve scenario for stress test on capital adequacy.
Review the allocation of risk-adjusted capital and broad based limits across the Bank covering credit, market
and operational risks.

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Review with management and advise the Board on whether a sound and effective approach has been followed
in establishing the Banks business continuity planning arrangements including whether disaster recovery
plans have been tested periodically.

terrorism (AML/CFT) and other regulatory requirements.


Provide oversight for compliance with the Banks policies, guidelines and procedures as well as all applicable
laws, rules and regulations.
Ensure there is a system for monitoring the Banks compliance with laws and regulations and obtain reports on
an annual basis that the Bank is in conformity with applicable legal requirements.
Ensure that all issues related to Bank Negara Malaysias Composite Risk Rating (CRR) are being monitored and
resolved accordingly.
Review and recommend to the Board the new products and services and discretionary power or authority limits
in relation to any product program proposal.
Review all business proposals.
Review and recommend to the Board any new outsourcing proposals and approve the renewal of outsourcing
services including the appointment and/or renewal of the outsourcing service providers.

c) Nomination Committee

The Nomination Committee comprises of the Chairman of the Board, the Managing Director and not less than three (3)

ending 31 December 2015. The composition of the Nomination Committee and attendance at meetings are as follows:

Name Attendance at Meetings


General Tan Sri Dato Sri Abdul Aziz Zainal (R) 5/5
(Chairman effective 16 July 2015)
Datuk Mat Noor Nawi 6/6
(Chairman from 27 May 2014 until 15 July 2015)
Dato Mustafha Hj. Abd. Razak 11/11
(Appointed effective 1 April 2013)
Dato Sri Alias Hj. Ahmad 8/11
(Appointed effective 8 January 2015)
Dato Abdul Mutalib Alias 7/7
(Appointed from 1 November 2014 until 28 July 2015)
Tan Sri Dr Alies Anor Abdul 5/7
(Appointed from 8 January 2015 until 28 July 2015)
Datuk Hj. Mohd. Idris Hj. Mohd. Isa 9/9
(Appointed effective 25 March 2015)
Datuk Hj. Abdul Rahman Kasim 9/9
(Appointed effective 25 March 2015)
Dato Ismail Hj. Nordin 3/4
(Appointed effective 28 July 2015)

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The objectives of the Nomination Committee are:

To establish a formal and transparent procedure for the recommendation of eligible candidates for appointment
or re-appointment as directors, Shariah Committee (SC), members, Managing Director (MD), Chairman and key
senior management personnel;
To assess the effectiveness of individual directors, the Board and Board Committees, SC members and SC as a
whole; and
To evaluate the performance of the MD and key senior management personnel.

The function of the Nomination Committee:

The Committee shall have the authority to deliberate and approve on matters within its primary duties and
responsibilities in line with such limits as may be determined by the Board from time to time. During the discharge of
such duties, the Committee shall have access to:-

The records, properties and personnel of the Bank;


The advice and services of the Secretary of the Bank and key senior management personnel in the Human
Capital/Resources department; and
The independent professional advice and expertise necessary to perform its duties at the expense of the Bank
provided that written approval from the MD must be obtained prior to the incurring of any such expense on
behalf of the Bank.

The Committees duties and responsibilities are to:-

Review the structure, size and composition of the Board.


Establish and recommend to the Board the minimum requirements on the skills, business experience,

To determine the appropriate limit for the total number of directorships that can be held by the nominee in
companies/institutions/organizations.
Assess the competence and experience and recommend to the Board the nominees for directorship, Board
Committee members, SC members and the MD.
Undertake on-going assessment and annual review of the performance of the directors, SC members, the MD
and Chairman.
Recommend to the Board the removal or any other actions to be taken against any director, SC member, the MD
or the Chairman from the Board or Board Committees.
At least once a year, review, in consultation with the Chairman, and implement a mechanism for the formal
assessment on the effectiveness of the Board as a whole and the Board Committees individually and the
contribution of each director to the effectiveness of the Board and Board Committees and report to the Board
as may be necessary.
Assess and recommend to the Board the appointment, job grade, promotion, remuneration package, succession
planning and performance evaluation of key senior management personnel.
Recommend to the Board the actions to be taken against any key senior management personnel if they are
ineffective, errant or negligent in discharging their responsibilities.

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Competency and Capability of Nominees

the Schedule to the DFIA pursuant to Subsection 6(2) of the DFIA and in BNMs Guidelines on Corporate Governance

on the nominee and the Committee shall assess and consider the nominees suitability having regard to the nominees

d) Remuneration Committee

Members of the Remuneration Committee comprise of not less than three (3) non-executive independent directors

composition of the Remuneration Committee and attendance at meetings are as follows:

Name Attendance at Meetings


Dato Sri Alias Hj. Ahmad 9/9
(Chairman effective 8 January 2015)
Dato Abdul Mutalib Alias 6/9
(Appointed effective 8 January 2015)
Dato Dr Roselan Baki 8/9
(Appointed effective 1 July 2014)
Datuk Hj. Mohd. Idris Hj. Mohd. Isa 9/9
(Appointed effective 8 January 2015)
Dato Ismail Hj. Nordin 4/4
(Appointed effective 28 July 2015)

The objectives of the Remuneration Committee are:

To establish a formal and transparent procedure for developing a remuneration policy for directors, Shariah
Committee members, the Managing Director (MD) and key senior management personnel; and
To ensure that the compensation structure is competitive and consistent with the Banks culture, objectives and
strategy.

The function of the Remuneration Committee:

The Committee shall have the authority to deliberate and approve on matters within its primary duties and
responsibilities in line with such limits as may be determined by the Board from time to time. During the discharge of
such duties, the Committee shall have access to:-

The records, properties and personnel of the Bank;


The advice and services of the Secretary of the Bank and key senior management personnel in the Human
Capital/Resources department; and
The independent professional advice and expertise necessary to perform its duties at the expense of the Bank
provided that written approval from the MD must be obtained prior to the incurring of any such expense on
behalf of the Bank.

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The Committees duties and responsibilities are to:-

Review and recommend to the Board the overall remuneration policy for directors, the MD and key senior
management personnel.

management personnel reporting functionally or administratively to the MD and such other personnel as
determined by the Board from time to time.
Determine the total individual remuneration package for personnel including appropriate bonuses, incentive
payments etc. based on individual performance.

including bonuses and performance related pay schemes to ensure alignment throughout the Bank.
Review and recommend to the Board the remuneration of the SC members.

e) Board Financing Committee

The Board Financing Committee comprises of not less than three (3) non-executive independent directors of the Board.

Committee and attendance at meetings are as follows:

Name Attendance at Meetings


General Tan Sri Dato Sri Abdul Aziz Zainal (R) 3/3
(Chairman effective 25 August 2015)
Tan Sri Dr Alies Anor Abdul 1/3
(Appointed effective 25 August 2015)
Dato Siti Zauyah Md. Desa 2/3
(Appointed effective 25 August 2015)
Datuk Hj. Mohd. Idris Hj. Mohd. Isa 3/3
(Appointed effective 25 August 2015)
Razalee Amin 3/3
(Appointed effective 25 August 2015)

The objective of the Board Financing Committee:

of the management of credit risk of the Bank.

The function of the Board Financing Committee:

The Board Financing Committee shall have the authority to deliberate on matters within its primary duties and
responsibilities in line with such limits as may be determined by the Board from time to time. During the discharge of
such duties, the Committee shall have access to:-

The records, properties and personnel of the Bank;


The advice and services of the Secretary of the Bank and key senior management personnel in the Business
Banking department; and
The independent professional advice and expertise necessary to perform its duties at the expense of the Bank
provided that written approval from the Managing Director must be obtained prior to the incurring of any such
expense on behalf of the Bank.

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The Committees duties and responsibilities are to:-

Oversee the performance of rescheduled and restructured accounts to minimise credit loss and maximise the

f) Board Investment Committee

The Board Investment Committee shall comprise of not less than three (3) Directors of the Board and two (2) external

composition of the Committee and attendance at meetings are as follows:

Name Attendance at Meetings


General Tan Sri Dato Sri Abdul Aziz Zainal (R) 3/3
(Chairman effective 16 July 2015)
Datuk Mat Noor Nawi 1/2
(Chairman from 29 April 2014 until 15 July 2015)
Dato Mustafha Hj. Abd. Razak 4/4
(Appointed effective 1 April 2013)
Dato Dr Roselan Baki 3/3
(Appointed from 1 July 2014 until 27 July 2015)
Datuk Hj. Abdul Rahman Kasim 4/4
(Appointed effective 1 July 2014)
Mohd. Fauzy Abdullah 3/4
(Appointed from 4 February 2010 until 21 January 2016)
Prof. Dr Nor Hayati Binti Ahmad 3/4
(Appointed effective 1 July 2014)
Dato Siti Zauyah Md. Desa 1/1
(Appointed effective 1 August 2015)

The objective of the Board Investment Committee:

The Objective of the Board Investment Committee is to play a role in drafting the policies and directions relating to
investment to ensure the Banks investments are secure and provide satisfactory returns.

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The function of the Board Investment Committee:

The Committee shall have the authority to deliberate and approve on matters within its primary duties and
responsibilities in line with such limits as may be determined by the Board from time to time. During the discharge of
such duties, the Committee shall have access to:-

The determining and approving of the investment policies and procedures based on the Banks business
objectives generally.
The approvals of any new investment related activities other than real estate investment.

The approvals of the purchase of property for the purpose of Banks operations.

The Committees duties and responsibilities are to:-

Determine and approve policies and procedures for investment, assets allocation, the direction of investment,
risk control and other relevant investment.
Consider and approve any proposal relating to new investment activities other than real estate investment.
Consider and recommend investment in real estate before being forwarded to the Board for approval.
Approve on the purchase of property for relocation of branches and in relation to the Banks operations.
Inform the investment decision that has been made to the Board.
Appoint the members of the investment committee at management level.

g) Tender Board

The Tender Board shall comprise of not less than two (2) Directors of the Board with expertise and wide experience in
the relevant area.

Tender Board and attendance at meetings are as follows:

Name Attendance at Meetings


General Tan Sri Dato Sri Abdul Aziz Zainal (R) 2/2
(Chairman effective 16 July 2015)
Dato Dr Roselan Baki 3/3
(Chairman from 8 January 2015 until 27 July 2015)
Dato Mustafha Hj. Abd Razak 5/5
(Appointed effective 1 April 2013)
Tan Sri Dr Alies Anor Abdul 5/5
(Appointed effective 8 January 2015)
Dato Hj. Abdullah Hj. Abas 5/5
(Appointed effective 8 January 2015)
Datuk Hj. Abdul Rahman Kasim 2/2
(Appointed effective 28 July 2015)
Nik Mohd. Nasir Nik Rithauddeen 3/3
(Appointed from 27 August 2014 until 31 August 2015)
Zainal Amini Hj. Sulaiman 2/2
(Appointed effective 1 September 2015)

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The objective of the Tender Board:

Among the objectives of the Tender Board is to deliberate on and approve tenders submitted for acquisitions valued at
more than RM3.0 million that involves capital expenditure and expenditure for renovations.

The function of the Tender Board:

The Committee shall have the authority to deliberate and approve on matters within its primary duties and
responsibilities in line with such limits as may be determined by the Board from time to time. During the discharge of
such duties, the Committee shall approve the procurement tenders worth more than RM3 million (capital expenditure
and renovation).

The Committees duties and responsibilities are to:-

Consider and approve the procurement tenders worth more than RM3 million (capital expenditure and
renovation).
Call the supplier/contractor for presentation or negotiation on the price.
The proper and clear record of all basis and selection factors and the decision to be communicated to the board
of directors.

ANNUAL GENERAL MEETINGS

The Annual General Meetings (AGM) represent the main forum for dialogue between the shareholders, Board and Senior Management.

ACCOUNTABILITY AND AUDIT

1. Financial Report

status and prospects in all disclosures made to shareholders and the authorities.

The Bank uses the appropriate accounting policies and standards consistently and supported by reasonable considerations
and estimates. All the relevant accounting standards are complied with, particularly in the reporting of the Annual Financial
Statements to ensure the integrity of the Bank remains intact. The Board is assisted by the Audit Committee to oversee the

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and Main coMMittees
2. Internal Controls

The Board of Directors is responsible to ensure that on the whole, all existing Internal Control Systems guarantee operational

The size and the diversity of the Banks operations necessitate mitigation management of various risks. The diversity of risks

designed to provide reasonable guarantee and does not provide absolute guarantee for risks relating to the occurrence of
mistakes, fraud or loss.

and are discussed periodically at meetings.

The Audit and Inspection Committee is responsible to ensure the adequacy and effectiveness of the Banks Internal Control

and procedures and the effectiveness of the structure of the Banks internal control as a whole.

3. Relations with Auditors

Through the Audit and Inspection Committee, the Bank has established a transparent and appropriate relationship with
internal and external Auditors. The Management of Internal Audit is responsible to ensure the immediate implementation of

to resolve any control issues raised by them to ensure that all reported issues are duly acted upon by Management via the
respective Management Audit Committees.

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We, the Audit and Inspection Committee, carried out our inspection and evaluation review of the Audit Departments within branches,
departments, subsidiaries and Yayasan Bank Rakyat on a periodic basis during 2015. This was undertaken to ensure the adequacy

In accordance with the requirements of Bank Negara Malaysia as stipulated in the guidelines BNM/RH/GL005-4 Guidelines on
Corporate Governance Standards on Directorship for Development Financial Institutions, the Audit and Inspection Committee met
twelve (12) times to ensure banking operations were in accordance with prescribed policies and procedures.

Yayasan Bank Rakyat. The risk-based audit approach is based on reviewing the adequacy of risk management and operational
controls, compliance with laws and regulations, quality and effectiveness of assets, and effectiveness of management.

were taken to reduce the risks. To strengthen governance, Internal Audit plays a vital role. The results of the audit, areas of concern
and recommendations for corrective action must be given serious consideration and corrective actions must be implemented by all
management to enhance the performance of an organisation. To ensure this, recommendations and admonishments were made by
Internal Audit and channelled to the relevant parties for corrective actions to be taken.

Nevertheless, Internal Audit will continue to conduct ongoing monitoring and reviewing to enhance accountability and integrity to
ensure that the interests of Bank Rakyat remain uncompromised and assured in meeting the challenges of a challenging environment
and strong competition.

In the effort to expand the consultative function of Internal Audit, two (2) Notes of Advice to Internal Audit, known as iCANs (Internal

and internal controls.

iCANs distributed during 2015 were:

the level of the Banks operations. Furtherance to that, seventeen (17) recommendations and opinions submitted to Audit have been
added to the Operations Guidelines (GPO) and Department Manuals.

To raise awareness of the importance of Internal Controls at the level of Branch Operations, Internal Audit took the initiative to
conduct a seminar on Awareness of Internal Controls for clerical staff, executives, senior executives, Branch Heads and Heads of
Rakyat Xcess and Ar-Rahnu Xchange in 9 districts.

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a) Audit and Examination Committee

1. COMPOSITION AND TERMS OF REFERENCE

1.1. Composition

from its members and shall consist of not less than three members, all of whom shall be non-executive
directors. The majority of the Committee members shall be independent directors.
b. At least one member of the Committee shall have working experience or knowledge in accounting,

1.2. Frequency and Proceeding of Meetings

a. Meetings shall be held at least once in three months.


b. The Chairman may also convene a meeting upon request of any member, the Management, Internal
or External Auditors to consider any matters that should be brought to the attention of the Board of
Directors or members of Bank Rakyat.
c. The Committee will regulate its own procedure particularly with regard to the calling of meetings,
the voting and proceedings of such meetings, the notice to be given of such meetings, the keeping of
minutes, the custody, production and inspection of such minutes.

1.3. Quorum

A quorum shall consist of three members.

1.4. Secretary

The Secretary of the Committee shall be the Chief Internal Auditor.

1.5. Rights

The Committee shall, wherever necessary and reasonable for the performance of its duties, have the following
rights and at the cost of Bank Rakyat:

have full access to any information pertaining to Bank Rakyat.


obtain independent professional or other advice.
invite to its meeting any director who is not a Committee member and/or any employees of Bank Rakyat
that it feels can assist to reach an informed decision.
authority to investigate any matter within its terms of reference.
obtain the resources which are required to perform its duties.
direct communication channels with external and internal auditors.
convene meetings with the external auditors.

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1.6. Duties and responsibilities

The duties and responsibilities of the Committee shall be:

a. Risk Management
To review the adequacy and effectiveness of risk management, systems of internal control and governance
processes (which includes compliance with the Shariah) of Bank Rakyat (and its subsidiaries) including

taken by the Management.

b. Internal Audit
To approve the appointment, termination or transfer of Chief Internal Auditor and Senior Internal
Auditors.
To evaluate the performance and decide on the remuneration package of the Chief Internal
Auditor.
To review the adequacy of the internal audit plan, scope, functions and resources of the Internal
Audit Sector and that it has the necessary authority to carry out its work.
To review and determine the deliverables of the Shariah audit function upon consultation with
the Shariah Committee.

Bank Rakyats compliance with the Shariah.

To ensure and regulate that the internal audit functions comply with Bank Negara Malaysias
(BNM) Guidelines on Internal Audit Function of Licensed Institutions (BNM/RH/GL/013-4).

c. External Audit

To review the external auditors audit plan and scope, the system of internal accounting controls
and the audit controls.

activities or access to required information.

including the status of previous audit recommendations.

d. Financial Reporting

To ensure that the accounts are prepared in a timely and accurate manner with frequent reviews
of the adequacy of provisions against contingencies as well as bad and doubtful debts.

Directors and ensure the prompt publication of annual accounts.

e. Related Party Transactions


To review any related party transactions that may arise between Bank Rakyat and its subsidiaries.

f. Other Matters

The Chairman of the Committee shall report all matters that require the attention of the Board of
Directors or the members of Bank Rakyat.
Act on other matters as the Committee considers appropriate or as authorised by the Board of
Directors.

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2. ATTENDANCE AT MEETINGS

Thirteen (13) Committee meetings were held during 2015. The details of attendance of each member at the Committee
meetings are as follows:

Attendance at Percentage
Name of Committee Members Committee Meetings of Attendance

Datuk Hj. Mohd. Idris Hj. Mohd Isa 13/13 100%


Chairman
(appointed as Member/Chairman effective 1 November 2014)
Datuk Hj. Abdul Rahman Kasim 8/8 100%
Member
(ceased to be a member with effect from 27 July 2015)
Datuk Seri Alies Anor Abdul 9/13 69%
Member
Dato Hj. Abdullah Hj. Abas 13/13 100%
Member
(appointed with effect from 15 January 2015)
Dato Dr Roselan Baki 4/5 80%
Member
(appointed with effect from 28 July 2015)
Razalee Amin 4/5 80%
Member
(appointed with effect from 28 July 2015)

3. SUMMARY OF ACTIVITIES

During the year, the Committee carried out the following activities in line with BNMs Guidelines on Corporate
Governance Standards on Directorship for Development Financial Institutions [BNM/RH/GL 005-4]:

3.1. Financial Reporting

Ensured that the accounts were prepared in a timely and accurate manner with frequent reviews of the adequacy
of provisions against contingencies as well as bad and doubtful debts. In addition, the Committee ensured fair

prompt publication of annual accounts.

3.2. Internal Audit

a. Reviewed the annual audit plan to ensure adequate scope and comprehensive coverage over the
activities of Bank Rakyat and its subsidiaries and the resource requirements of the Internal Audit Sector
to carry out its functions.
b. Reviewed the Internal Audit reports, audit recommendations and Managements responses to these
recommendations.
c. Reviewed the status report on actions implemented by Management to rectify the outstanding audit
issues to ensure control lapses were addressed.
d. Reviewed the monthly Internal Audit Achievements and Performance reports to ensure the progress,
achievement, performance, coverage of the Internal Audit functions, trainings attended by internal
auditors and noted the reasons for the resignation of internal auditors.
e. Reviewed the audit reports issued by regulatory authorities, Managements responses to the Regulators
recommendations and the remedial actions taken to rectify the weaknesses detected.

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f. Reviewed the subsidiary companies for an overview of the risk management and internal control systems
of those subsidiary companies.
g. Approved the appointment of key positions in the Internal Audit Sector.
h. Instructed the conduct of investigation into activity or matter within its terms of reference.
i. Reviewed the minutes of meetings of the Committee for an overview of the deliberation and remedial
actions taken by Management on the control lapses raised by internal auditors.

3.3. External Audit

a. Reviewed with the external auditors:


The Audit Planning Memorandum and scope of work for the year.
The results of the audit, the relevant audit reports and Audit Highlight Memorandum together

b. Reviewed the appointment of external statutory auditors for the provision of non-audit services. When
considering the approvals for these services, the Committee took into consideration the process and
requirements (including fees threshold) established under the policy for such appointments.
c. Evaluated the performance of the external auditors and made recommendations to the Board of Directors
on their re-appointment.

3.4. Related Party Transactions

Reviewed the related party transactions entered into by Bank Rakyat and its subsidiaries.

4. TRAINING

The training attended by members of the Committee is reported under the Statement on Corporate Governance.

5. INTERNAL AUDIT FUNCTION

The Committee is supported by the Internal Audit Sector in the discharge of its duties and responsibilities. The
Internal Audit Sector provides independent and objective assessment of the adequacy and effectiveness of the risk
management, internal controls and governance processes. The Internal Audit Sector also carries out investigative
audits where there are improper, illegal and dishonest acts reported.

The Internal Audit function reviews the effectiveness of internal control structures over the activities of Bank Rakyat
and its subsidiaries focusing on high risk areas as determined using a risk-based approach. All high risk activities in
each auditable area are audited annually.

The internal audits cover the review of the adequacy of risk management, operational controls, compliance with

customer services, amongst others. These audits are to ensure that the established controls are appropriate, effectively
applied and achieve acceptable risk exposures consistent with Bank Rakyats risk management policy. In performing
such reviews, internal audit makes recommendations for improvement and enhancements to the existing system of
internal controls and work processes.

The Internal Audit Sector also conducts audits on the information systems of Bank Rakyat to ensure that the computing

safeguard and provide for the continued availability of the system to support business operational needs.

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The Internal Audit Sector provides consulting or advisory functions in the evaluation of risk exposures of new systems,

their implementation. In order to maintain its objectivity and independence, the Internal Audit Sector is not involved
in the system selection or implementation process when providing such consulting or advisory functions.

All auditing activities are conducted in line with Bank Rakyats objectives, policies and in compliance with the relevant
policies and guidelines issued by BNM as guided by the Code of Ethics and International Standards for the Professional
Practice of Internal Auditing (Standards) promulgated by The Institute of Internal Auditors (IIA).

During 2015, the activities undertaken by Internal Audit Sector were as follows:

Developed an annual audit plan using a risk-based and COSO approach, taking into consideration Bank Rakyats
business expansion plan as well as inputs from Management and the Committee.
Provided independent assessment and objective assurance over the adequacy and effectiveness of risk
management, internal control and governance processes through structured reviews of departments and

Conducted ad hoc assignments and special reviews as instructed by the Committee, Management or BNM.
Ascertained the level of compliance with established policies, procedures and statutory requirements.
Recommended improvements and enhancements to the existing system of internal controls and work
procedures/processes.
Conducted investigation into activities or matters as instructed by the Committee and Management.
Prepared the Audit Committee Report for Bank Rakyats Annual Report for Financial Year ended
31 December 2015.
Conducted Internal Control Awareness Programs for Assistant Managers and Front Liners (Executives and
Clerks).
Issued Internal Control Advisory Notes known as iCANs to instil awareness on internal control and inculcate the
compliance culture.
Acted as observer at the International Shariah Scholar Roundtable (iSAR).

The total costs incurred for the internal audit function of Bank Rakyat for 2015 were RM9.6 million.

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SETTING THE TONE FROM THE TOP TO STRENGTHEN In the midst of the 2015 economic climate, Risk Management
RISK CULTURE also introduced some prudent measures to help the Bank
weather the uncertain economic outlook. Amidst the subsidy
Throughout 2015, the Bank continued to develop on the
enhancements in risk culture and governance the Bank introduced
in 2014. This involved operationalizing the Risk Management
Framework and Risk Appetite Statement throughout all levels of their means. Risk Management also enhanced its Impairment
the Bank, to ensure that all internal policies and procedures were Policy which is a robust set of account monitoring for Corporate
in line with the expectations of these overarching principles of
risk management in the Bank. During the course of 2015, the The policies were implemented to keep the Banks credit
Bank maintained its Risk Appetite Statement as follows: strategy in check, and ensure that the Bank continues to grow in
a sustainable manner.

always be within the capacity of the Bank. This is achieved by Moving forward to 2016, Risk Management will continue to
strengthening the following six dimensions Risk Governance; support the Bank as a partner in growth.
Capital Adequacy and Shareholders Value; Reputation as
an Islamic Bank; Asset Quality; Liquidity; and Operational ENSURING CAPITAL RESILIENCY TO SUPPORT GROwTH

Capital strength of the Bank is paramount in supporting its


In order to improve risk governance of the Bank Rakyat group as a growth objective, and to ensure that the Bank will continue
whole, enhancements were also made to current frameworks and to serve the needs of its customers in the long run. With this
objective, Risk Management instituted structural changes to the
a Group Risk Management Framework was introduced to set a assessment process of the Banks capital adequacy.
standard for risk management practices to be adopted within the
subsidiaries of the Bank, which will be enforced in 2016. The Bank had been embarking on an effort to align its capital
monitoring and reporting to BNMs Capital Adequacy Framework
IMPROvING CREDIT RISK PRACTICES TO SAFEGUARD for Islamic Banks (CAFIB) since 2013. This is an important
ASSET QUALITY initiative as alignment with the requirements of CAFIB, which
was drafted in line with the requirements of international
capital adequacy standards of Basel II and Basel III. The
thus managing it has been a key deliverable for the Bank to ensure implementation of CAFIB will ensure that the Banks monitoring
of capital adequacy is consistent with internationally-accepted
this is achieved by continuing the credit culture transformation standards and give further reliability to the capital strength of
embarked in 2014 to ensure that the Bank continues to grow by the Bank. Pursuant to the efforts, the Bank began reporting its
capital position to BNM based on CAFIB standards beginning
May 2015 on a parallel run basis.
In 2015, Risk Management emphasised improving practices in
credit underwriting of the Bank. The initiative was supported
with the introduction of new policies and enhancement of
existing policies as well as processes. Continuous consultation
with the business units was carried out with the aim of aligning
the Banks credit culture with industry best practices. The
changes instituted by the policy have shown positive impact with
a more structured credit process in place and improved quality
of underwriting, thus keeping asset quality under control.

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Consistent with the objective of improving assessment of capital In addition, the Bank implemented strategies in mitigating
adequacy, Risk Management also initiated the Internal Capital structural risk exposures, namely rate of return and liquidity
Adequacy Assessment Process (ICAAP) as a best practice. The risks. The rate of return risk exposure is managed through
process will assist the Bank to identify an appropriate capital
level to support the Banks operations and business objectives,
while also taking into account the anticipated changes in the
operating environment. Upon successful implementation of the The Bank maintains an optimal liquidity position supported
with continuous enhancement in the Banks liquidity risk
and consistent with its growth aspirations. Throughout 2015, appetite towards a stable funding structure and improvement
Risk Management performed a holistic risk assessment of in the risk management framework that is aligned with the
the Bank and performed stress testing exercises to ascertain international standard on liquidity risk management principles.
resiliency of the Banks capital position to external shocks. Both Enhanced liquidity risk management tools together with the
of these initiatives are key components of the ICAAP, which is
position and establishment of system to calculate and monitor
Basel III requirements on Liquidity Coverage Ratios and Net
RISK MANAGEMENT AND vALUE CREATION
in deposit base to ensure stable funding structure and minimal
Asset and liability management aims to ensure optimal structure cost of funding for it business activities. In addition, the Bank
of balance sheet for sustainable return from the risk management continuously monitors its liquidity risk measurement tools
standpoint. A comprehensive strategy which focuses on and indicators to ensure adequate liquidity positions to meet
the obligation as well as compliance with liquidity regulatory
requirements and internal policies and procedures.

venturing into new products and services, realigning portfolio To further strengthen the management of market and liquidity
composition and targeting a wider market. The investment risks, periodical reviews and stress tests of these risks are
portfolio strategy is directed towards return maximisation while conducted and ensuring the Banks Rate of Return Risk in Banking
maintaining an adequate level of high quality liquid assets in line Book (RORBB) frameworks, policies and procedures as well
with compliance requirement. In order to maintain a balanced as the Trading Book Policy Statements (TBPS) are periodically
reviewed.
through the issuance of Sukuk, NiDC and Cagamas, and reduced
dependency on wholesale deposits by increasing retail funding Moving into 2016, risk management will continue to enhance
and Current and Savings accounts-i (CASA-i) in a concerted its capabilities and create more value in line with the Banks
effort to be cost effective. strategic plan.

Competitive pricing will lead to a consistent increment in the


Banks growth and income. Therefore, the Bank has established
pricing policies for both retail and corporate to serve as a guide
and standardize the pricing methodologies throughout the Bank.
The policies are based on Risk-Informed Pricing Guidelines and
Reference Rate Framework issued by Bank Negara Malaysia
(BNM). In line with the BNM requirement, effective from
2 January 2015, the Bank introduced Base Rate (BR) to price the

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HOLISTIC OPERATIONAL RISK MANAGEMENT THROUGH In line with Personal Data Protection Act 2010 and the secrecy
EFFECTIvE COLLABORATION provision under Developmental Financial Institution Act 2002,
the Bank established policy and procedure on information
In 2015, the Operational Risk Management Framework, policies security to manage information secrecy and ensure necessary
safeguards are in place to prevent information leakage and
methodology and processes for operational risk and operational secrecy breaches. The Information Security Policy complements
risk sub-types, including but not limited to Shariah risk and existing policies under the ISO 27001 - Information Security
Information Technology risk. The overarching operational risk
appetite statement was further articulated to ensure clarity of Information System Framework. Under the Information Security
the tolerance level for operational risk exposure. Policy, the required safeguards for information access, handling,
transmission, storage and disposal are standardised based on
Apart from ensuring consistency of practices between
operational risk and operational risk sub-types, the introduction
of common taxonomy and risk management tools and processes To continuously improve operational resilience and ensure
has improved the synergy between operational risk management, prompt recovery from disruptive events, the Business Continuity
internal audit and compliance functions. In this regard, the Management (BCM) Framework was also revised in 2015.
Risk and Control Self-Assessment (RCSA) implementation Through improvement in governance, planning and escalation
has become a collaborative effort between the three control processes along with the revised risk assessment and business
functions, albeit for different objectives and points of view. This impact analysis methodology, the revised BCM Framework
provides for a more holistic and comprehensive oversight and provides for tiered incident handling and escalation based on
severity of the disruption. Crisis management plan and crisis
communication procedure were also streamlined to ensure
structured and coordinated response to an operational crisis.
The revised framework also takes cognizance that operational
risk may result in or exacerbate exposures in other risk types
such as strategic, credit, market and reputation risks. As
such, operational risk issues are analysed from various angles
including the impact to other risk types. Vice versa, credit
and market risk issues are often dissected to establish the
operational risk-related root causes that need to be addressed.

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sHariaH coMMittee terMs of reference
1.0 OBJECTIvE OF SHARIAH COMMITTEE 3.0 ROLES AND RESPONSIBILITIES

Establishment of Shariah Committee (SC) of Bank Rakyat 3.1 Responsible and accountable for all Shariah
is a requirement by Bank Negara Malaysia (BNM). The decisions, views and opinions issued on Shariah
purpose is to ensure all activities, products, transactions, matters provided by the SC.
operations and zakat management of Bank Rakyat and all
3.2 Advise, provide input and necessary assistance on
of its subsidiaries are Shariah compliant at all times as a
Shariah matters to BOD, Bank Rakyats stakeholders
and parties associated with Bank Rakyats business
Malaysia.
operations and activities including the activities
of its subsidiaries and cooperatives regulated
2.0 FORMATION OF SHARIAH COMMITTEE by Suruhanjaya Koperasi Malaysia (SKM) which
consult or refer to Bank Rakyat on case by case basis
2.1 The SC shall report directly to the Board of Directors to ensure compliance with Shariah requirements at
(BOD) and shall be recognized as an independent all times.
committee.
3.3 To adopt the resolutions of Shariah Advisory
2.2 The appointment of the SC members must obtain Council of Bank Negara Malaysia (SAC/BNM) and
prior written approval from BNM and BOD upon Shariah Advisory Council of Securities Commission
recommendation by the Nomination Committee. (SAC/SECCOM) upon publication in deriving
Shariah decisions and to highlight to Management
to become an SC member as described in BNMs and BOD in the event SC invokes its right to adopt
Shariah Governance Framework for Islamic stringent decisions as permissible by BNM/SGF.
Financial Institutions (BNM/SGF). 3.4 Perform oversight role on Shariah matters related
to Bank Rakyats business operations and activities
as required by BNM/SGF. including its subsidiaries and guide Bank Rakyat
and its subsidiaries on the implementation of
Shariah decisions issued.
Shariah background with at least a bachelors
degree in Shariah, which includes study in 3.5 Assess and validate works which include Shariah
(origin of Islamic law) or (Islamic research, (application of Shariah
transaction/commercial law) from a recognized
university. Shariah functions inclusive of Shariah Research
and Consultation, Shariah Review, SRM and Shariah
Audit in order to ensure Shariah compliance.
background.
2.7 The SC may comprise experts with diverse
members) on Shariah compliance of Bank Rakyats
the depth and breadth of the Shariah deliberations.
product proposal based on proper support of takyif
2.8 Majority members of SC should be able to

in written and verbal Arabic and have good proposal for the purpose of new product approval
understanding of Bahasa Malaysia and English. submission to BNM.
2.9 The SC member is not considered an SC member 3.7 Endorse all framework, policies, procedures and any
and disallowed to perform the roles of SC upon other applicable documents relating to Shariah and
expiry of the appointment term until fresh approval ensure the contents do not contain any elements
is obtained from BNM. which are not in line with Shariah.

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3.8 Endorse and validate all relevant documentations 3.17 Regularly inform the BOD on relevant Shariah
relating to products, business and operations matters.
including but not limited to legal documents,
product policies and procedures, product manual
as required by BNM in the annual SC report which
and marketing collaterals to ensure compliance
is embedded in Bank Rakyats annual report and
with Shariah requirements with exception to
endorse the annual report prior to publication.
internal Shariah functions by recorded decision of 3.19 Act as Shariah spokesperson to respond to Shariah
SC in consensus. related inquiries during Bank Rakyat annual general
meetings or any public events which involve Bank
3.9 Advise and assist Bank Rakyat to consult SAC/BNM
Rakyat.
and/or SAC/SECCOM when necessary in a written
form.
to Bank Rakyats business, operations and affairs at
3.10 Advise Bank Rakyat on the calculation, allocation
all times whereby all information obtained shall not
and distribution of zakat and validate the list of
be used in any manner that could be detrimental to
zakat recipients post-decision of Jawatankuasa
Bank Rakyat.
Zakat Perniagaan Bank di bawah Asnaf (JZPBA).
3.21 Other responsibilities being assigned by BOD from
3.11 Abstain from making decisions which are not in line
time to time or any Shariah matters that require
with the ruling of SAC/BNM which may violate the
SCs immediate attention.
Central Bank of Malaysia Act 2009.
3.12 Must not act in a manner that would undermine the 4.0 SHARIAH COMMITTEE MEETING
rulings and decisions made by SAC/BNM and the SC
and required to respect and observe the published 4.1 The SC meeting shall be held at least once in every
Shariah rulings issued by SAC/BNM and shall not go two (2) months.
against the decisions of the SC that they represent 4.2 The minimum quorum for an SC meeting shall be
in public.
3.13 Withdraw Shariah decisions issued by SC in the members.
event of issuance of new and/or revised Shariah 4.3 In the event Chairman of SC is unable to attend
resolutions and decisions made by SAC/BNM and the SC meeting, the members shall elect one (1)
SAC/SECCOM. member among themselves to become the alternate

legal approaches to gradually lead Bank Rakyat's preside over the meeting.
practices towards the best globally accepted 4.4 Any decisions during the SC meeting shall be made
Shariah practices. on the basis of 2/3 of the members present with
3.15 Validate and endorse all matters related to Shariah majority of the 2/3 votes shall come from Shariah

4.5 Any dissenting view by an SC member shall be


to BOD. reserves the right to abstain from voting in decision
3.16 Inform BNM of Shariah non-compliant activities making.
in the event they are not effectively or adequately

Bank Rakyat.

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4.6 SC members must attend at least 75% of SC 6.0 REPRESENTATION IN BOARD OF DIRECTORS
MEETING

Rakyats headquarters or other venue determined 6.1 Representative of SC attends the BOD meeting to
by Shariah Secretariat to SC in or outside Malaysia. serve as a bridge or communicator between SC and
BOD in matters pertaining to Shariah.
4.7 SC meetings can be facilitated by means of video or
telephone conference as an alternative. 6.2 One (1) of the SC members is appointed as
permanent representative while another one (1)
as an alternate representative in the event the
Chief Internal Audit (CIA) and other members
permanent representative is unavailable to attend
of Management may be invited on per meeting
the meeting.
invitation basis to provide explanation to SC on
matters arising and/or papers presented. 6.3 The SC representative shall provide advice on
Shariah related matters only without intervening
4.9 Formal decision of SC shall be escalated to
into other than the coverage of roles and
Management and BOD on quarterly basis and
responsibilities of the SC.
escalation to business and support unit shall be done
on post-meeting basis upon review by the Secretary 6.4 Seating fee paid to the SC representative who
to SC and validation by the Chairman of SC. attends the meeting is subject to BOD approval and/
or review from time to time upon recommendation
4.10 The number of SC meetings held in a particular
by the Remuneration Committee.
year, as well as the attendance of every SC member
shall be disclosed in the annual report.
7.0 ADvISOR TO JAwATANKUASA ZAKAT PERNIAGAAN
5.0 ANNUAL SHARIAH COMMITTEE REPORT BANK DI BAwAH ASNAF

5.1 SC is required to report all approved products for 7.1 Two (2) SC members are appointed as advisors
the year (which have been launched), disclose to JZPBA to ensure the management of zakat is
any Shariah non-compliant event and amount of compliant with Shariah.
7.2 JZPBA meeting can only be conducted with the
of zakat that has been distributed during the year. presence of at least one (1) of the appointed advisors.
5.2 The report must also address all information 7.3 The advisors shall provide advice on zakat
matters which cover zakat calculation, allocation,
Reporting for Development Financial Institutions. distribution, issue of had kifayah
5.3 The report shall be signed by all SC members. amount) and asnaf
be in line with Shariah principles and requirements.
5.4 The Annual SC Report is included in Bank Rakyats
annual report. 7.4 Seating fee paid to the advisors is subject to BOD
approval and/or review from time to time upon
recommendation by the Remuneration Committee.

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8.0 REMUNERATION OF SHARIAH COMMITTEE 9.0 SECRETARY AND SECRETARIAT TO SHARIAH
MEMBERS COMMITTEE

monthly retainer fee and seating fee which are paid personnel shall be appointed by SC as the
based on meeting attendance. Secretary to SC. The Secretary to SC has no
voting power in decision making by the SC.
8.2 Seating fee includes SC meetings and all other
meetings that require the SC member to be present. 9.2 The Secretary to SC, or an alternate secretary
appointed by the Secretary to SC in his/her absence
8.3 Whenever an SC member is invited to attend any
with apology, should attend all SC meetings and
formal or informal Bank Rakyat event, attends
should maintain accurate and adequate records of
formal events on Bank Rakyats behalf, is invited
any actions deliberated during the meetings. All
as a trainer for Bank Rakyats internal or external
records regarding SC meetings shall be reviewed by
program or any other event in the name of Bank
the Secretary prior to escalation.
Rakyat, the respective SC member is entitled to a
9.3 The function of Shariah Secretariat to SC is
assigned to SC Secretariat under the Department
8.4 Upon re-appointment of an SC member, an
of Shariah Research and Consultation Department
increment to the respective SC member shall be
of Bank Rakyat.
considered.
8.5 Remuneration amount is subject to BOD
approval and/or review from time to time upon
recommendation by the Remuneration Committee
and it shall be commensurate with the roles and
responsibilities of the SC member.

bank rakyat
148 annual report
2015
NOTICE OF
ANNUAL
GENERAL
MEETING
notice of annUaL GeneraL MeetinG

Date: 1 April 2016 / 23 Jamadilakhir 1437H

All Representatives of Bank Rakyat Cooperative Members


All Representatives of Bank Rakyat Individual Members

NOTICE OF 2016 BANK RAKYAT ANNUAL GENERAL MEETING

NOTICE IS HEREBY GIvEN THAT the 2016 Bank Rakyat Annual General Meeting will be held as follows:

Date : 16 April 2016 (Saturday)


(8 Rejab 1437H)

venue : Dewan Tun Abdul Razak,


Level 2, Menara 1, Menara Kembar Bank Rakyat,
No. 33, Jalan Rakyat,
50470 Kuala Lumpur

Time : 10.30 am

MEETING AGENDA

2. To appoint a Committee of six representatives and four members of the Board including the Chairman, to verify the
draft of the minutes of the 2015 Annual General Meeting;

3. To present the Audited Financial Statements for the year ended 31 December 2015, together with the Board of Directors
Report, Audit and Inspection Committee Report, Auditor Generals Report, and Views of the Malaysia Cooperative
Societies Commission; and

4. To deliberate on proposals from members received by the Board not less than seven days before the Annual General
Meeting.

By Order of the Board

LIZA ROS DAMSI


Bank Secretary

bank rakyat
150 annual report
2015
FINANCIAL
STATEMENTS
bank rakyat
152 annual report
2015
bank rakyat
annual report
2015
153
bank rakyat
154 annual report
2015
Statement by DirectorS
We, GENERAL TAN SRI DATO SRI (DR.) ABDUL AZIZ HJ. ZAINAL (R) and DATO MUSTAFHA HJ. ABD. RAZAK, being two of the
Directors of Bank Kerjasama Rakyat Malaysia Berhad, do hereby state that:

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors,

GENERAL TAN SRI DATO SRI (DR.) ABDUL AZIZ HJ. ZAINAL (R)

DATO MUSTAFHA HJ. ABD. RAZAK

bank rakyat
annual report
2015
155
SHariaH committee rePort

Wadi`ah
Tawarruq
Wakalah bil Ujrah

akad

bank rakyat
156 annual report
2015
SHariaH committee rePort

DATO SETIA HJ. MOHD. TAMYES ABD WAHID

DATUK ABU HASAN L. DIN AL HAFIZ PROF. MADYA DR. SITI SALWANI RAZALI

USTAZ MD. YUNUS ABD. AZIZ USTAZ WAN RUMAIZI WAN HUSIN

USTAZ ABDULLAAH JALIL PROF. MADYA DR. AZMAN MOHD. NOOR

bank rakyat
annual report
2015
157
Statutory Declaration
I, NOR HAIMEE ZAKARIA

NOR HAIMEE ZAKARIA

Before me:

bank rakyat
158 annual report
2015
DirectorS' rePort

PRINCIPAL ACTIVITIES

RESULTS OF OPERATIONS

Group Bank
RM'000 RM'000

RESERVES AND PROVISION

bank rakyat
annual report
2015
159
DirectorS' rePort
DIVIDENDS

OTHER STATUTORY INFORMATION

following:

bank rakyat
160 annual report
2015
DirectorS' rePort
OTHER STATUTORY INFORMATION (CONTINUED)

The Directors do solemnly and sincerely declare that there were no other matters, within their knowledge, that are not disclosed in

Signed on behalf of the Board of Directors in accordance with a resolution of the Directors,

GENERAL TAN SRI DATO SRI (DR.) ABDUL AZIZ HJ. ZAINAL (R)

DATO MUSTAFHA HJ. ABD. RAZAK

bank rakyat
annual report
2015
161
StatementS oF Financial PoSition
aS at 31 December 2015

Group Bank
2015 2014 2015 2014
Note RM000 RM000 RM000 RM000

ASSETS

1,899,146 1,897,976

933,286 908,750
13,296,973 13,295,819
10,718,843 10,718,843
63,137,184 63,137,184
8,416 -
808,703 770,321
4,946 -
- 61,976
747,301 689,656
13,185 -
708,590 685,145
65,258 65,258
54,598 55,000

TOTAL ASSETS 92,396,429 92,285,928

bank rakyat
162 annual report
2015
StatementS oF Financial PoSition
aS at 31 December 2015 (continueD)

Group Bank
2015 2014 2015 2014
Note RM000 RM000 RM000 RM000

LIABILITIES

70,981,772 70,981,772

1,940,000 1,940,000
3,582 -
Recourse obligations on
1,478,659 1,478,659
2,718,871 2,718,871
1,251,329 1,476,120
929 -
- -

TOTAL LIABILITIES 78,375,142 78,595,422

SHAREHOLDERS' FUND

2,983,923 2,983,923
53,671 53,671
10,983,693 10,652,912
- -

TOTAL SHAREHOLDERS' FUND 14,021,287 13,690,506

TOTAL LIABILITIES AND


SHAREHOLDERS' FUND 92,396,429 92,285,928

COMMITMENTS AND CONTINGENCIES 2,600,935 2,600,935

bank rakyat
annual report
2015
163
StatementS oF ProFit or loSS
anD otHer comPreHenSiVe income
For tHe year enDeD 31 December 2015

Group Bank
2015 2014 2015 2014
Note RM000 RM000 RM000 RM000

5,686,287 5,618,618
(2,918,040) (2,846,960)

Net income 2,768,247 2,771,658


(473,436) (473,436)
745,038 707,362
(1,028,126) (1,046,011)

2,011,723 1,959,573
(148,292) (143,225)
(39,310) (37,343)

1,824,121 1,779,005

(454,087) (454,087)

(39,191) (39,191)

(19,596) (19,596)
(14,919) (14,919)

(527,793) (527,793)

1,296,328 1,251,212

13,703 13,703
(29,865) (29,865)

(10,460) (10,460)
(26,622) (26,622)
1,269,706 1,224,590

0.61

bank rakyat
164 annual report
2015
StatementS oF cHanGeS in eQuity For tHe year enDeD 31 December 2015

Share equalisation
Share redemption reserve Other Retained

Note RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

bank rakyat
annual report
2015
165
StatementS oF cHanGeS in eQuity
For tHe year enDeD 31 December 2015 (continueD)

Non-distributable Distributable

Share equalisation
Share redemption reserve Other Retained

Note RM000 RM000 RM000 RM000 RM000 RM000

2,973,677 52,800 29,865 4,471,509 5,201,933 12,729,784

- - - - 1,824,121 1,824,121
- - - - (454,087) (454,087)

- - - - (39,191) (39,191)

- - - - (19,596) (19,596)

- - - - (14,919) (14,919)

- - - - 1,296,328 1,296,328
- - (29,865) 13,703 (10,460) (26,622)

income for the year - - (29,865) 13,703 1,285,868 1,269,706


- - - 454,087 - 454,087
Issuance to new members 11,117 - - - - 11,117
(871) 871 - - - -
- - - 13,087 (13,087) -
- - - - (443,502) (443,502)

- - - - 95 95

bank rakyat
166 annual report
2015
StatementS oF cHanGeS in eQuity
For tHe year enDeD 31 December 2015 (continueD)

Non-distributable Distributable

Share equalisation
Share redemption reserve Other Retained

Note RM000 RM000 RM000 RM000 RM000 RM000

bank rakyat
annual report
2015
167
StatementS oF cHanGeS in eQuity
For tHe year enDeD 31 December 2015 (continueD)

Non-distributable Distributable

Share equalisation
Share redemption reserve Other Retained

Note RM000 RM000 RM000 RM000 RM000 RM000

2,973,677 52,800 29,865 4,472,250 4,915,527 12,444,119

- - - - 1,779,005 1,779,005
- - - - (454,087) (454,087)

- - - - (39,191) (39,191)

- - - - (19,596) (19,596)

- - - - (14,919) (14,919)

- - - - 1,251,212 1,251,212
- - (29,865) 13,703 (10,460) (26,622)

income for the year - - (29,865) 13,703 1,240,752 1,224,590


- - - 454,087 - 454,087
Issuance to new members 11,117 - - - - 11,117
(871) 871 - - - -
- - - 13,087 (13,087) -
- - - - (443,502) (443,502)

- - - - 95 95

bank rakyat
168 annual report
2015
StatementS oF caSH FloWS For tHe year enDeD 31 December 2015

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

CASH FLOWS FROM/(USED IN)


OPERATING ACTIVITIES

1,296,328 1,251,212

454,087 454,087

39,191 39,191

19,596 19,596
14,919 14,919
148,292 143,225
Zakat 39,310 37,343
127,701 127,701
463,366 463,366

10,070 10,070
98,831 96,400
1,532 1,532
3,750 3,439
(5) (5)
- -
26,541 26,541
(21,134) (21,134)
1,084 94
- -
(73,983) (66,236)
(322) (18,480)

(745) (745)
(22,599) (22,599)
(83) (83)
(48,641) (48,641)
65,736 65,736

2,642,822 2,576,529

bank rakyat
annual report
2015
169
StatementS oF caSH FloWS
For tHe year enDeD 31 December 2015 (continueD)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

(747,448) (748,651)
(3,144,542) (3,144,542)
(2,604) -
Other assets 61,470 40,709
4,538 -

2,458,799 2,458,799

140,000 140,000
234 -
(364,695) (364,695)
Other liabilities (254,655) (190,028)
793,919 768,121

(14,756) (7,552)
84 -
(42,136) (41,591)
- -

737,111 718,978

bank rakyat
170 annual report
2015
StatementS oF caSH FloWS
For tHe year enDeD 31 December 2015 (continueD)

Group Bank
2015 2014 2015 2014
Note RM000 RM000 RM000 RM000

CASH FLOWS FROM/(USED IN) INVESTING


ACTIVITIES

(232,500) (232,500)

held for trading 232,583 232,583


(3,442,350) (3,442,350)

2,133,627 2,131,365
(488,270) (488,270)

901,889 901,889
(16,081) (16,081)
4,369 4,035
(169,445) (144,476)

15,258 11,623

- -

(1,060,920) (1,042,182)

CASH FLOWS FROM/(USED IN)


FINANCING ACTIVITIES

11,117 11,117
(443,502) (443,502)
4,187 4,187
- -

debt securities issued (429,401) (429,401)

- -

(857,599) (857,599)

Net (decrease)/increase in cash and


(1,181,408) (1,180,803)
3,080,554 3,078,779

1,899,146 1,897,976

bank rakyat
annual report
2015
171
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015

1. GENERAL INFORMATION

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS

bank rakyat
172 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)

and

Venture

bank rakyat
annual report
2015
173
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)

bank rakyat
174 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)

regarding the recognition of

bank rakyat
annual report
2015
175
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)

bank rakyat
176 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

2. BASIS OF PREPARATION OF THE FINANCIAL STATEMENTS (CONTINUED)

3. SIGNIFICANT ACCOUNTING POLICIES

measurement in its entirety, which are described as follows:

bank rakyat
annual report
2015
177
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
178 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
annual report
2015
179
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
180 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
annual report
2015
181
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
182 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
annual report
2015
183
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
184 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
annual report
2015
185
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
186 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
annual report
2015
187
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
188 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
annual report
2015
189
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
190 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

bank rakyat
annual report
2015
191
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

and settlements)

i. Investment

iii. Longevity

iv. Salary

bank rakyat
192 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Where it is

bank rakyat
annual report
2015
193
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

3. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS

bank rakyat
194 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

bank rakyat
annual report
2015
195
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

4. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS (CONTINUED)

bank rakyat
196 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

5. CASH AND SHORT-TERM FUNDS

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

1,082,437 1,081,267

maturing within one month 816,709 816,709

1,899,146 1,897,976

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

1,899,146 1,897,976

1,899,146 1,897,976

6. DEPOSITS AND PLACEMENTS WITH FINANCIAL INSTITUTIONS

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

Licensed banks 933,286 908,750

bank rakyat
annual report
2015
197
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

7. FINANCIAL ASSETS AVAILABLE-FOR-SALE

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

Islamic debt securities 2,736,259 2,736,259


7,384,890 7,384,890
2,521,156 2,521,156
100,117 100,117
310,530 310,530
Quoted shares 234,304 234,304
Unit trust shares 1,730 1,730

Unquoted shares 7,987 6,833

13,296,973 13,295,819

8. FINANCIAL ASSETS HELD-TO-MATURITY

Group and Bank


2015 2014
RM000 RM000

Islamic debt securities 513,405


8,289,353
1,096,603
467,356
177,946
198,440
-

10,743,103

Islamic debt securities (24,260)


-

(24,260)

10,718,843

bank rakyat
198 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

8. FINANCIAL ASSETS HELD-TO-MATURITY (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

266,287
(745)
(241,282)

24,260

The maturity structures of the instruments are as follows:

Group and Bank


2015 2014
RM000 RM000

Maturity within one year 1,077,026


7,380,637
2,285,440

10,743,103

bank rakyat
annual report
2015
199
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

9. FINANCING AND ADVANCES

Group Bai` Ijarah


and Bank Bithaman Thumma
2015 Bai` `Inah Ajil Ar-Rahn Qard Murabahah Al-Bai` Musharakah Tawarruq Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

141,137 524,542 - 167 3,606,482 - - 288,806 4,561,134

34,177,876 - - - - - - 18,796,275 52,974,151

credit 68 - - - 408,165 - - - 408,233

- 1,760,636 - - 261,616 - - 857,356 2,879,608

- - - - - 693,219 - - 693,219
- - 1,556,226 - - - - - 1,556,226
Bridging
- - - - 402,442 - - - 402,442
Syndicated
- - - - 149,362 - 51,621 - 200,983
- - - - - - - 476,799 476,799
2 227,588 - - - - - 83,266 310,856

34,319,083 2,512,766 1,556,226 167 4,828,067 693,219 51,621 20,502,502 64,463,651

(316,652)
(1,009,815)

63,137,184

bank rakyat
200 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

9. FINANCING AND ADVANCES (CONTINUED)

Group Bai` Ijarah


and Bank Bithaman Thumma
2014 Bai` `Inah Ajil Ar-Rahn Qard Murabahah Al-Bai` Musharakah Tawarruq Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

Bridging

Syndicated

bank rakyat
annual report
2015
201
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

9. FINANCING AND ADVANCES (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

26,726,373
Southern Region 9,302,359
9,703,878
Northern Region 7,676,331
11,054,710

64,463,651

Group and Bank


2015 2014
RM000 RM000

71,482
1,930,704
58,021,238
365,995
Mining and quarrying -
Manufacturing 189,274
100,341
1,139,670
Wholesale and retail trade 117,907
155,563
2,342,040
29,437

64,463,651

Group and Bank


2015 2014
RM000 RM000

Maturity within one year 3,370,212


More than one year to three years 1,935,878
3,122,138
56,035,423

64,463,651

bank rakyat
202 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

9. FINANCING AND ADVANCES (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

59,603,949
2,918,535

1,828,831
Others 47,354
1,404
Other entities 63,564
Banking institutions 14

64,463,651

Group and Bank


2015 2014
RM000 RM000

39,478,010
1,759,920
Others 3,973,189

13,496,141
1,119,688
Others 4,636,703

64,463,651

Group and Bank


2015 2014
RM000 RM000

1,027,733
Southern Region 62,112
44,519
Northern Region 45,774
37,747

1,217,885

bank rakyat
annual report
2015
203
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

9. FINANCING AND ADVANCES (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

595
143,240
419,767
99
Mining and quarrying -
Manufacturing 17,745
-
282,901
Wholesale and retail trade 30,296
20
305,956
17,266

1,217,885

Group and Bank


2015 2014
RM000 RM000

1,267,307

1,819,529
(1,104,141)
(764,810)

(49,422)

1,217,885

1.89%

bank rakyat
204 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

9. FINANCING AND ADVANCES (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

492,436

272,273
(166,882)
(281,175)

(175,784)

316,652

Group and Bank


2015 2014
RM000 RM000

1,124,636

1,445,218
(1,095,656)
(464,383)

(114,821)

1,009,815

1.98%

bank rakyat
annual report
2015
205
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

10. TRADE RECEIVABLES

Group
2015 2014
RM000 RM000

10,507
(2,091)

8,416

Group
2015 2014
RM000 RM000

1,261

1,552
719
4,884
7,155

2,091

10,507

bank rakyat
206 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

10. TRADE RECEIVABLES (CONTINUED)

Group
2015 2014
RM000 RM000

1,499
990
(318)
(80)

2,091

11. OTHER ASSETS

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

- 4,089
413,474 372,787
284,820 284,820
110,409 108,625

808,703 770,321

Bank
2015 2014
RM000 RM000

Outstanding balances 5,596


(1,507)

4,089

bank rakyat
annual report
2015
207
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

11. OTHER ASSETS (CONTINUED)

Bank
2015 2014
RM000 RM000

19,983
-
(18,476)

1,507

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

162,961 156,198
(15,399) (15,288)
42,642 9,697
23,270 22,180

200,000 200,000

413,474 372,787

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

15,371 15,260

94 94
(4) (4)
(62) (62)

15,399 15,288

bank rakyat
208 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

11. OTHER ASSETS (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

60
Discount rate 5.75%
Rate of salary increases 8-9%

Group and Bank


2015 2014
RM000 RM000

35,816
(40,522)
(16,428)

(21,134)

-
(2,051)
12,511

10,460

Total (10,674)

bank rakyat
annual report
2015
209
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

11. OTHER ASSETS (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

(513,023)
797,843

Net assets 284,820

Group and Bank


2015 2014
RM000 RM000

501,195
35,816
(40,522)
27,969
-
(2,051)
(9,384)

513,023

Group and Bank


2015 2014
RM000 RM000

775,341
44,397
-
(9,384)
(12,511)

797,843

bank rakyat
210 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

11. OTHER ASSETS (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

797,843

797,843

bank rakyat
annual report
2015
211
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

12. INVENTORIES

Group
2015 2014
RM000 RM000

4,358
588

4,946

13. ASSET CLASSIFIED AS HELD-FOR-SALE

Group
2015 2014
RM000 RM000

-
-

14. INVESTMENT IN SUBSIDIARIES

Bank
2015 2014
RM000 RM000

Unquoted shares, at cost 61,976

bank rakyat
212 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

14. INVESTMENT IN SUBSIDIARIES (CONTINUED)

Proportion of
ownership interest
and voting power
Name held by the Group Principal activities
2015 2014
%

100

100

100

100

100

100

100

100

bank rakyat
annual report
2015
213
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

14. INVESTMENT IN SUBSIDIARIES (CONTINUED)

Place of
Incorporation Number of directly Number of indirectly
Principal activities and Operation owned subsidiary owned subsidiaries
2015 2014 2015 2014

1 -

- 1

- 1

- 1

Building management and maintenance Malaysia - 1

- 1

- 1

Dormant Malaysia - 1

1 7

bank rakyat
214 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

15. PROPERTY AND EQUIPMENT


Long-term Short-term Furniture,

2015 land Buildings buildings buildings progress Renovation equipment vehicles Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

51,941 420,250 97,715 868 5,085 219,740 499,229 8,502 1,303,330


- 28,978 5,087 60 37,681 23,888 72,364 1,387 169,445
(10,420) (865) (3,325) - - (125) (564) (710) (16,009)
- (498) - - - (714) (4,537) - (5,749)
- 1,479 - - (17,378) 15,899 - - -

- (84,434) (20,616) - (9,062) (1,139) (765) - (116,016)


Transfer from

- 12,598 28,678 - - - - - 41,276

41,521 377,508 107,539 928 16,326 257,549 565,727 9,179 1,376,277

- 15,037 12,541 302 - 153,465 351,988 4,584 537,917


- 7,406 4,250 39 - 29,897 56,162 1,077 98,831
- (15) - - - (125) (549) (67) (756)
- (50) - - - (374) (1,575) - (1,999)

- (1,750) (1,956) - - (686) (625) - (5,017)

- 20,628 14,835 341 - 182,177 405,401 5,594 628,976

41,521 356,880 92,704 587 16,326 75,372 160,326 3,585 747,301

bank rakyat
annual report
2015
215
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

15. PROPERTY AND EQUIPMENT (CONTINUED)


Long-term Short-term Furniture,

2014 land Buildings buildings buildings progress Renovation equipment vehicles Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

Transfer from

bank rakyat
216 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

15. PROPERTY AND EQUIPMENT (CONTINUED)


Long-term Short-term Furniture,

2015 land Buildings buildings buildings progress Renovation equipment vehicles Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

50,421 420,250 73,776 868 7,631 217,500 495,772 1,729 1,267,947


- 28,978 5,087 60 17,073 22,070 70,870 338 144,476
(10,420) (865) - - - (125) (564) (338) (12,312)
- (498) - - - (167) (3,836) - (4,501)
- 1,479 - - (17,378) 15,899 - - -

- (84,434) - - - - - - (84,434)

40,001 364,910 78,863 928 7,326 255,177 562,242 1,729 1,311,176

- 15,037 10,587 302 - 152,072 349,440 1,188 528,626


- 7,125 3,590 39 - 29,634 55,823 189 96,400
- (15) - - - (125) (549) (5) (694)
- (50) - - - (51) (961) - (1,062)

- (1,750) - - - - - - (1,750)

- 20,347 14,177 341 - 181,530 403,753 1,372 621,520

40,001 344,563 64,686 587 7,326 73,647 158,489 357 689,656

bank rakyat
annual report
2015
217
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

15. PROPERTY AND EQUIPMENT (CONTINUED)


Long-term Short-term Furniture,

2014 land Buildings buildings buildings progress Renovation equipment vehicles Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

bank rakyat
218 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

16. INVESTMENT PROPERTIES

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

539,288 524,179
16,081 16,081
73,983 66,236
(4,369) (4,035)
110,999 82,684
13,884 -
(41,276) -

708,590 685,145

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

7,448 7,568
Buildings 464,682 455,952
Leasehold land and buildings 236,460 221,625

708,590 685,145

bank rakyat
annual report
2015
219
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

16. INVESTMENT PROPERTIES (CONTINUED)

Carrying Fair
amount value Level 1 Level 2 Level 3
RM000 RM000 RM000 RM000 RM000

708,590 708,590 - 708,590 -

685,145 685,145 - 685,145 -

17. PREPAID LEASE PAYMENTS

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

93,682 76,680
- -
(17,002) -

76,680 76,680

13,008 9,890
1,532 1,532
- -
(3,118) -

11,422 11,422

65,258 65,258

bank rakyat
220 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

17. PREPAID LEASE PAYMENTS (CONTINUED)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

50,562 50,562
14,696 14,696

65,258 65,258

18. DEFERRED TAX ASSETS

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

139,221 140,000

15,231 15,000
(52,000) (52,000)
(7,000) (7,000)
(29,000) (29,000)
(12,000) (12,000)
146 -

(84,623) (85,000)

54,598 55,000

bank rakyat
annual report
2015
221
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

18. DEFERRED TAX ASSETS (CONTINUED)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

66,000 66,000
11,000 11,000
44,000 44,000
- -
362 -

121,362 121,000

Offsetting (66,764) (66,000)

54,598 55,000

66,764 66,000

Offsetting (66,764) (66,000)

- -

bank rakyat
222 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

19. DEPOSITS FROM CUSTOMERS

Group and Bank


2015 2014
RM000 RM000

3,750,568

Tawarruq 58,114,929

Mudarabah 156

Mudarabah -
9,116,119

70,981,772

Group and Bank


2015 2014
RM000 RM000

30,251,363
27,743,606
943,212
10,774,077
Others 1,269,514

70,981,772

Group and Bank


2015 2014
RM000 RM000

49,636,311
18,141,585
3,203,876

70,981,772

bank rakyat
annual report
2015
223
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

20. DEPOSITS AND PLACEMENTS FROM BANKS AND FINANCIAL INSTITUTIONS

Group and Bank


2015 2014
RM000 RM000

Licensed Islamic banks 1,940,000

1,940,000

21. RECOURSE OBLIGATIONS ON FINANCING SOLD TO CAGAMAS

22. DEBT SECURITIES ISSUED

Group and Bank


2015 2014
RM000 RM000

-
Second tranche:
704,775

200,190
Second tranche:
300,453
Third tranche:
581,551

430,128

150,519

351,255

2,718,871

bank rakyat
224 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

22. DEBT SECURITIES ISSUED (CONTINUED)

The Sukuk Musharakah constitute direct, unconditional and unsecured obligations of the Issuer and shall at all times rank

bank rakyat
annual report
2015
225
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

23. OTHER LIABILITIES

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

- 249,781
Sundry creditors 194,322 171,734
487,537 487,537
Other liabilities and accruals 349,544 349,190
177,571 177,571
42,355 40,307

1,251,329 1,476,120

Bank
2015 2014
RM000 RM000

235,499
14,282

249,781

24. PROFIT EQUALISATION RESERVE

Group and Bank


2015 2014
RM000 RM000

48,641
(48,641)

-
Bank -

bank rakyat
226 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

25. SHARE CAPITAL

Group and Bank


2015 2014
RM000 RM000

3,000,000

2,973,677
Net issuance during the year 11,117
Transfer to other liabilities -
(871)

2,983,923

Group and Bank


2015 2014

905,790
2,128

907,918

bank rakyat
annual report
2015
227
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

26. RESERVES

RM000 RM000 RM000 RM000 RM000 RM000 RM000

Unrealised net loss on

14,617 4,288,740 (77,414) 245,566 4,471,509 5,201,933 9,673,442


- - - - - 1,824,121 1,824,121
- 454,087 - 13,087 467,174 (467,174) -

- - - - - (39,191) (39,191)

- - - - - (19,596) (19,596)

- - - - - (14,824) (14,824)

- - - - - (10,460) (10,460)
Unrealised net gain on

- - 13,703 - 13,703 - 13,703


- - - - - (443,502) (443,502)

14,617 4,742,827 (63,711) 258,653 4,952,386 6,031,307 10,983,693

bank rakyat
228 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

26. RESERVES (CONTINUED)

RM000 RM000 RM000 RM000 RM000 RM000 RM000

Unrealised net loss on

15,358 4,288,740 (77,414) 245,566 4,472,250 4,915,527 9,387,777


- - - - - 1,779,005 1,779,005
- 454,087 - 13,087 467,174 (467,174) -

- - - - - (39,191) (39,191)

- - - - - (19,596) (19,596)

- - - - - (14,824) (14,824)

- - - - - (10,460) (10,460)
Unrealised net gain on

- - 13,703 - 13,703 - 13,703


- - - - - (443,502) (443,502)

15,358 4,742,827 (63,711) 258,653 4,953,127 5,699,785 10,652,912

bank rakyat
annual report
2015
229
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

26. RESERVES (CONTINUED)

27. INCOME
Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

4,436,480 4,436,480

1,182,138 1,182,138
67,669 -

5,686,287 5,618,618

bank rakyat
230 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

27. INCOME (CONTINUED)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

3,667,767 3,667,767

65,657 65,657
703,056 703,056

4,436,480 4,436,480

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

977,308 977,308

17,495 17,495
187,335 187,335

1,182,138 1,182,138

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

15,722 -
36,999 -
Rental income 2,046 -
Management fee 12,072 -
Sale of goods 393 -
Other charges 437 -

67,669 -

bank rakyat
annual report
2015
231
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

28. EXPENDITURE

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

2,694,941 2,702,164

65,736 65,736
(48,641) (48,641)
127,701 127,701
78,303 -

2,918,040 2,846,960

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

Mudarabah 26,752 33,975


2,596,043 2,596,043

Mudarabah 36,981 36,981


35,165 35,165

2,694,941 2,702,164

bank rakyat
232 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

29. ALLOWANCES FOR IMPAIRMENT

Group and Bank


2015 2014
RM000 RM000

463,366
10,070

473,436

Group and Bank


2015 2014
RM000 RM000

105,391
8,413
349,562

463,366

Group and Bank


2015 2014
RM000 RM000

10,070

10,070

bank rakyat
annual report
2015
233
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

30. OTHER OPERATING INCOME

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

63,600 63,600
Other income (ii) 681,438 643,762

745,038 707,362

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

Takaful commission 17,199 17,199


12,454 12,454
Wasiat commission 2,626 2,626
Other commission 18,106 18,106
492 492
8,831 8,831
1,083 1,083
Other fees 2,809 2,809

63,600 63,600

bank rakyat
234 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

30. OTHER OPERATING INCOME (CONTINUED)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

9,057 9,057

83 83

22,599 22,599

Rental income 13,978 15,483


3,332 3,332
15,532 15,532
9,042 9,042
415,354 415,354

318 -
- 18,476
4 4

745 745
5 5

- -
Other income 67,406 65,978

73,983 66,236
- 1,836
50,000 -

681,438 643,762

bank rakyat
annual report
2015
235
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

31. OPERATING EXPENSES

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

466,602 451,441
561,524 594,570

1,028,126 1,046,011

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

Salaries and wages 277,118 267,949


104,752 100,570
(21,134) (21,134)
71,121 69,981
2,992 2,873
Other staff related costs 31,753 31,202

466,602 451,441

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

Rental 23,240 28,781


98,831 96,400
1,532 1,532
97,935 97,601
Takaful 9,041 8,930

230,579 233,244

bank rakyat
236 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

31. OPERATING EXPENSES (CONTINUED)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

68,580 67,698

68,580 67,698

15,719 12,640
1,120 1,000
18,299 18,027
7,972 7,731
20,247 19,955
15,305 15,274
26,650 26,590
25,486 56,335
26,541 26,541
3,750 3,439
60,696 60,696
2,082 8,954
Others 38,498 36,446

262,365 293,628

561,524 594,570

bank rakyat
annual report
2015
237
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

31. OPERATING EXPENSES (CONTINUED)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

990 -
- -

94 94

Statutory audit fees 888 720


295 280
(63) -
1,532 1,532
98,831 96,400
3,750 3,439

- -
23,198 28,781
42 -

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

Salary and other remuneration 966 966


Bonuses 879 879
314 314
Other emoluments 47 47

2,206 2,206

2,431 1,822
Other emoluments 874 874

3,305 2,696

5,511 4,902

bank rakyat
238 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

31. OPERATING EXPENSES (CONTINUED)

Total remuneration of the Directors is as follows:

Remuneration received
Remuneration received from Subsidiary
from Bank Companies Group
Salary Other Other
and Emolu- Emolu-
2015 Bonus Fees ments Total Fees ments Total Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

2,159 - 47 2,206 85 - 85 2,291


2,159 - 47 2,206 85 - 85 2,291

- 152 13 165 71 - 71 236


- 169 2 171 37 - 37 208
- 163 4 167 - - - 167
- 175 16 191 44 - 44 235
- 188 12 200 48 - 48 248

- 178 1 179 77 - 77 256


- 203 4 207 41 - 41 248
- 177 9 186 72 - 72 258
- 79 2 81 8 - 8 89
- 83 2 85 21 - 21 106
- 83 2 85 22 - 22 107
- 1,650 67 1,717 441 - 441 2,158

Datuk Mat Noor Nawi - 172 131 303 83 - 83 386


- - 106 106 - - - 106
- - 124 124 - - - 124
- - 118 118 - - - 118
- - 116 116 - - - 116

- - 106 106 - - - 106

- - 106 106 - - - 106


- 172 807 979 83 - 83 1,062

2,159 1,822 921 4,902 609 - 609 5,511

bank rakyat
annual report
2015
239
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

31. OPERATING EXPENSES (CONTINUED)

Remuneration received
Remuneration received from Subsidiary
from Bank Companies Group
Salary Other Other
and Emolu- Emolu-
2014 Bonus Fees ments Total Fees ments Total Total
RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

bank rakyat
240 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

32. TAXATION

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

84,607 78,762
(20,938) (20,537)

63,669 58,225

84,723 85,000
(100) -

84,623 85,000

143,225

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

2,011,723 1,959,573

482,814 470,298
731 -
(66,119) (55,018)
103,324 99,873
(351,391) (351,391)
(29) -

(20,938) (20,537)
(100) -

148,292 143,225

bank rakyat
annual report
2015
241
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

33. ZAKAT

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

39,315 37,343
(5) -

39,310 37,343

34. STATUTORY APPROPRIATIONS

35. EARNINGS PER SHARE

36. DIVIDENDS

Group and Bank


2015 2014
RM000 RM000

443,502

443,502

bank rakyat
242 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

37. COMMITMENTS AND CONTINGENCIES

Group and Bank


2015 2014
RM000 RM000

236,015
28,586

2,336,334

2,600,935

38. CAPITAL COMMITMENTS

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

16,988 4,360
315,709 301,475

332,697 305,835

39. OPERATING LEASES

Bank
2015 2014
RM000 RM000

Within one year 930


Between one and two years 159
Between two to three years 86

1,175

bank rakyat
annual report
2015
243
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

40. RELATED PARTY TRANSACTIONS

Remuneration of Directors and other members of key management are as follows:

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

2,431 1,822
Salary 3,760 3,247
398 398
1,081 947
Bonuses 2,362 2,032
Other emoluments 4,325 4,229

14,358 12,675

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

4,903 4,903
609 -

5,512 4,903

bank rakyat
244 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

40. RELATED PARTY TRANSACTIONS (CONTINUED)

Bank
2015 2014
RM000 RM000

Rental income (1,538)

7,223
29,428
4,894
6,183
7,154

53,344

41. FINANCIAL RISK MANAGEMENT

ii) Liquidity risk


iii) Market risk

bank rakyat
annual report
2015
245
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

bank rakyat
246 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

bank rakyat
annual report
2015
247
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

bank rakyat
248 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

bank rakyat
annual report
2015
249
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Group Bank
2015 2014 2015 2014
RM000 RM000 RM000 RM000

1,899,146 1,897,976

933,286 908,750
13,296,973 13,295,819
10,718,843 10,718,843
63,137,184 63,137,184
8,416 -
147,562 144,998

90,141,410 90,103,570

2,336,334 2,336,334

92,439,904

bank rakyat
250 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Group and Bank


2015 2014
RM000 RM000

60,401,701

60,401,701

1,878,677
656,124
308,751
513

2,844,065

Less than 4 months 306,852


334,810
132,675
443,548

1,217,885

64,463,651

bank rakyat
annual report
2015
251
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Financial
assets Financial
Group available- assets held-
2015 for-sale to-maturity Total
RM000 RM000 RM000

- - -
9,932 85,897 95,829
2,356,475 298,364 2,654,839
289,808 35,753 325,561
55,645 - 55,645
24,399 69,131 93,530

2,736,259 489,145 3,225,404

310,530 177,946 488,476

- 198,440 198,440

3,046,789 865,531 3,912,320

7,384,890 8,289,353 15,674,243


2,521,156 1,096,603 3,617,759
100,117 467,356 567,473

10,006,163 9,853,312 19,859,475

Quoted and unit trust shares 236,034 - 236,034


Unquoted shares 7,987 - 7,987

244,021 - 244,021

13,296,973 10,718,843 24,015,816

bank rakyat
252 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Financial
assets Financial
Bank available- assets held-
2015 for-sale to-maturity Total
RM000 RM000 RM000

- - -
9,932 85,897 95,829
2,356,475 298,364 2,654,839
289,808 35,753 325,561
55,645 - 55,645
24,399 69,131 93,530

2,736,259 489,145 3,225,404

310,530 177,946 488,476

- 198,440 198,440

3,046,789 865,531 3,912,320

7,384,890 8,289,353 15,674,243


2,521,156 1,096,603 3,617,759
100,117 467,356 567,473

10,006,163 9,853,312 19,859,475

Quoted and unit trust shares 236,034 - 236,034


Unquoted shares 6,833 - 6,833

242,867 - 242,867

13,295,819 10,718,843 24,014,662

bank rakyat
annual report
2015
253
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Financial
assets Financial
Group available- assets held-
2014 for-sale to-maturity Total
RM000 RM000 RM000

bank rakyat
254 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Financial
assets Financial
Bank available- assets held-
2014 for-sale to-maturity Total
RM000 RM000 RM000

bank rakyat
annual report
2015
255
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

as strategies and actions to be taken by the liquidity crisis management team arising from different liquidity

bank rakyat
256 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Bank
2015 2014
RM000 RM000

32.78%
33.56%
35.75%
Minimum for the year 32.56%

bank rakyat
annual report
2015
257
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

More than More than More than More than No

2015 1 week 1 month 3 months 6 months 1 year 1 year maturity Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

1,545,403 352,574 908,749 - - - - 2,806,726


242,867 71,936 868,680 281,915 1,355,720 21,193,544 - 24,014,662
1,354,768 43,439 504,036 845,664 622,305 59,766,972 - 63,137,184
Other assets - - - - - - 2,327,356 2,327,356

3,143,038 467,949 2,281,465 1,127,579 1,978,025 80,960,516 2,327,356 92,285,928

11,114,998 16,457,420 19,463,484 11,066,735 9,675,259 3,203,876 - 70,981,772

from banks and


805,000 700,000 435,000 - - - - 1,940,000
Recourse obligations on

- - - 429,371 287,059 762,229 - 1,478,659


Debt securities issued - - - - 200,190 2,518,681 - 2,718,871
Other liabilities - - - - - - 1,476,120 1,476,120

11,919,998 17,157,420 19,898,484 11,496,106 10,162,508 6,484,786 1,476,120 78,595,422

- - - - - 13,690,506 - 13,690,506
- - - - - 13,690,506 - 13,690,506

(8,776,960) (16,689,471) (17,617,019) (10,368,527) (8,184,483) 60,785,224 851,236 -

bank rakyat
258 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

More than More than More than More than No

2015 1 week 1 month 3 months 6 months 1 year 1 year maturity Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

facilities granted
to customers - - 14,477 7,792 15,177 198,569 - 236,015

from litigation taken


against the Bank - - - - - 28,586 - 28,586
- - - - - 2,336,334 - 2,336,334

- - 14,477 7,792 15,177 2,563,489 - 2,600,935

bank rakyat
annual report
2015
259
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

More than More than More than More than No

2014 1 week 1 month 3 months 6 months 1 year 1 year maturity Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

Other assets
4

from banks and

Recourse obligations

Debt securities issued


Other liabilities

bank rakyat
260 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

More than More than More than More than No

2014 1 week 1 month 3 months 6 months 1 year 1 year maturity Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

facilities granted

litigation taken

bank rakyat
annual report
2015
261
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Bank
Sensitivity of projected Increase by Decrease by Increase by Decrease by

RM000 RM000 RM000 RM000

2015
(327,092) 325,234 (163,562) 163,593
(297,078) 271,351 (148,544) 136,067
(344,208) 342,279 (172,119) 172,148
Minimum for the year (251,146) 193,024 (125,576) 96,508

2014

bank rakyat
262 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Non-trading book
More than More than More than

2015 1 month 3 months 1 year 5 years 5 years sensitive book Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

institutions 1,492,576 908,750 - - - 405,400 - 2,806,726

51,216 415,900 1,058,369 6,385,518 3,215,535 - 2,169,281 13,295,819

20,720 452,780 579,266 7,380,637 2,285,440 - - 10,718,843

18,381,717 7,125 90,495 2,687,567 40,063,405 2,015,457 - 63,245,766

net of
allowances - - - - - (108,582) - (108,582)

balances - - - - - 2,327,356 - 2,327,356

19,946,229 1,784,555 1,728,130 16,453,722 45,564,380 4,639,631 2,169,281 92,285,928

bank rakyat
annual report
2015
263
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Non-trading book
More than More than More than

2015 1 month 3 months 1 year 5 years 5 years sensitive book Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

customers 27,572,417 19,463,485 20,741,994 2,867,571 336,305 - - 70,981,772

from banks

institutions 1,505,000 435,000 - - - - - 1,940,000


Recourse obligations

- - 716,430 327,515 434,714 - - 1,478,659


Debt securities issued - - 200,190 2,167,427 351,254 - - 2,718,871

- - - - - 1,476,120 - 1,476,120

29,077,417 19,898,485 21,658,614 5,362,513 1,122,273 1,476,120 - 78,595,422

- - - - - 13,690,506 - 13,690,506

(9,131,188) (18,113,930) (19,930,484) 11,091,209 44,442,107 (10,526,995) 2,169,281 -

- - - - - - - -

(9,131,188) (18,113,930) (19,930,484) 11,091,209 44,442,107 (10,526,995) 2,169,281 -

bank rakyat
264 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Non-trading book
More than More than More than

2014 1 month 3 months 1 year 5 years 5 years sensitive book Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

net of

bank rakyat
annual report
2015
265
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Non-trading book
More than More than More than

2014 1 month 3 months 1 year 5 years 5 years sensitive book Total


RM000 RM000 RM000 RM000 RM000 RM000 RM000 RM000

from banks and

Recourse obligations

Debt securities

bank rakyat
266 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

bank rakyat
annual report
2015
267
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

bank rakyat
268 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Bank
2015 2014

19.48%
20.70%

18.92%
20.13%

Bank
2015 2014
RM000 RM000

2,983,923
5,699,785
4,758,185

13,441,893

642,077
258,653

900,730

14,342,623

(61,976)
(61,976)

14,280,647

bank rakyat
annual report
2015
269
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

41. FINANCIAL RISK MANAGEMENT (CONTINUED)

Bank
2015 2014
RM000 RM000

482,475
1,520,233
65,830,370
1,158,093

68,991,171

42. FAIR VALUES OF FINANCIAL INSTRUMENTS

bank rakyat
270 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value Level 1 Level 2 Level 3
RM000 RM000 RM000 RM000 RM000

Group
2015

Islamic debt securities 2,736,259 2,736,259 - 2,736,259 -


7,384,890 7,384,890 - 7,384,890 -
2,521,156 2,521,156 - 2,521,156 -
100,117 100,117 - 100,117 -
310,530 310,530 - 310,530 -
Quoted shares 234,304 234,304 234,304 - -
Unit trust shares 1,730 1,730 - 1,730 -
Unquoted shares 7,987 7,987 - - 7,987
13,296,973 13,296,973 234,304 13,054,682 7,987

2014

bank rakyat
annual report
2015
271
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value Level 1 Level 2 Level 3
RM000 RM000 RM000 RM000 RM000

2015

Islamic debt securities 2,736,259 2,736,259 - 2,736,259 -


7,384,890 7,384,890 - 7,384,890 -
2,521,156 2,521,156 - 2,521,156 -
100,117 100,117 - 100,117 -
310,530 310,530 - 310,530 -
Quoted shares 234,304 234,304 234,304 - -
Unit trust shares 1,730 1,730 - 1,730 -
Unquoted shares 6,833 6,833 - - 6,833
13,295,819 13,295,819 234,304 13,054,682 6,833

2014

bank rakyat
272 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value
2015 2015 2014 2014
RM000 RM000 RM000 RM000

1,899,146 1,899,146

933,286 933,286
10,718,843 10,554,180
63,137,184 70,273,216
8,416 8,416
390,204 390,204

70,981,772 70,981,772

1,940,000 1,940,000
Recourse obligations on
1,478,659 1,300,284
Debt securities issued 2,718,871 2,396,634
3,582 3,582
Other liabilities 1,251,329 1,251,329

bank rakyat
annual report
2015
273
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value
2015 2015 2014 2014
RM000 RM000 RM000 RM000

1,897,976 1,897,976

908,750 908,750
10,718,843 10,554,180
63,137,184 70,273,216
350,606 350,606

70,981,772 70,981,772

1,940,000 1,940,000
Recourse obligations on
1,478,659 1,300,284
Debt securities issued 2,718,871 2,396,634
Other liabilities 1,476,120 1,476,120

bank rakyat
274 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value Level 1 Level 2 Level 3
RM000 RM000 RM000 RM000 RM000

2015

1,096,603 1,077,494 - - 1,077,494


8,289,353 8,152,622 - - 8,152,622
Islamic debt securities 489,145 481,458 - - 481,458
467,356 468,180 - - 468,180
177,946 176,006 - - 176,006
198,440 198,420 - - 198,420

77,087,079 84,058,448 - - 84,058,448

78,374,213 77,873,601 - - 77,873,601

bank rakyat
annual report
2015
275
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value Level 1 Level 2 Level 3
RM000 RM000 RM000 RM000 RM000

2014

bank rakyat
276 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value Level 1 Level 2 Level 3
RM000 RM000 RM000 RM000 RM000

2015

1,096,603 1,077,494 - - 1,077,494


8,289,353 8,152,622 - - 8,152,622
Islamic debt securities 489,145 481,458 - - 481,458
467,356 468,180 - - 468,180
177,946 176,006 - - 176,006
198,440 198,420 - - 198,420

77,013,359 83,984,728 - - 83,984,728

78,595,422 78,094,810 - - 78,094,810

bank rakyat
annual report
2015
277
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

Carrying Fair
amount value Level 1 Level 2 Level 3
RM000 RM000 RM000 RM000 RM000

2014

bank rakyat
278 annual report
2015
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

instruments:

bank rakyat
annual report
2015
279
noteS to tHe Financial StatementS
For tHe year enDeD 31 December 2015 (continueD)

42. FAIR VALUES OF FINANCIAL INSTRUMENTS (CONTINUED)

bank rakyat
280 annual report
2015
ADDITIONAL
INFORMATION
AND DIRECTORY
DAMANSARA UTAMA SERDANG RAYA
CORPORATE OFFICE 42G, 44G, Jalan SS21/35 No. C1-00-28, Section 9, Jalan SR 1/9
Damansara Utama Taman Serdang Raya
BANK RAKYAT 47400 Petaling Jaya, Selangor 43300 Seri Kembangan, Selangor
Menara 1, Menara Kembar Bank Rakyat
No. 33, Jalan Rakyat AMPANG KUALA SELANGOR
50470 Kuala Lumpur Unit 1A, 1B, 1C & 1D No. 70, Jalan Melati 3/1, Bandar Melawati
Tel : 03-2612 9600 Ara Ampang Commercial Centre 45000 Kuala Selangor, Selangor
Website : www.bankrakyat.com.my Jalan Ampang,
68000 Ampang, Selangor RAWANG
Tele-Rakyat : 1-300-80-5454 No. 73, Jalan Bandar Rawang 2
International Call : +603-5526 9000 SHAH ALAM Rawang City Centre
i-Rakyat : www.irakyat.com.my No. 9 & 11 48000 Rawang, Selangor
Instagram/Twitter/Fb : /myBankRakyat Jalan Tuanku Ampuan Zabedah H/9H
Seksyen 9 SEKSYEN 23, SHAH ALAM
No. 23 & 25, Jalan Pelabur B/23B
BRANCHES 40000 Shah Alam, Selangor
Seksyen 23
USJ, SUBANG JAYA 40300 Shah Alam, Selangor
REGION OFFICE 1 No. 22 & 24, Jalan USJ 9/5Q, UEP
(SELANGOR) 47600 Subang Jaya, Selangor TANJONG KARANG
No. 1 & 3, Jalan Makmur 1
No. 9 & 11, Level 3 SUNGAI BESAR Taman Makmur, Batu 7
Jalan Tuanku Ampuan Zabedah H/9H A12 & A13, Jalan Menteri 45500 Tanjong Karang, Selangor
Seksyen 9 45300 Sungai Besar, Selangor
CYBERJAYA
40000 Shah Alam, Selangor MELAWATI Unit F03 & F03A, Fasa 1
SUBANG PERDANA No. 326, Jalan Bandar Melawati Glomac Cyberjaya, Persiaran APEC
No. 39, Jalan Dinar GU 3/G Melawati Square, Pusat Bandar Melawati 63000 Cyberjaya, Selangor
Seksyen U3, Taman Subang Perdana 68000 Ulu Klang, Selangor
40150 Shah Alam, Selangor REGION OFFICE 2
PUCHONG (KL/PUTRAJAYA)
KELANA JAYA No. 28 & 30, Jalan Puteri 4/2
Ground Floor, Wisma Glomac Bandar Puteri Level 6, No. 140, Bangunan Bank Rakyat
Glomac Business Centre 47100 Puchong, Selangor 51200 Kuala Lumpur
Jalan SS 5/1, Kelana Jaya PORT KLANG
47301 Petaling Jaya, Selangor JALAN TANGSI, KL
No. 2 & 4, Harbour Point Ground Floor, Bangunan Bank Rakyat
KAJANG Commercial Centre, Jalan Sungai Aur Jalan Tangsi
No. 18 & 19, Jalan Jelok 3 42000 Port Klang, Selangor 50732 Kuala Lumpur
Off Jalan Bukit Kajang SUNGAI BULOH
43000 Kajang, Selangor JALAN IPOH, KL
Lot 101, TSB Commercial Centre No. 140, Bangunan Bank Rakyat
BANTING Jalan Nautika B U20/B, Jalan Ipoh
No. 239, Jalan Sultan Abdul Samad Seksyen U20, Sungai Buloh 51200 Kuala Lumpur
42700 Banting, Selangor 40160 Shah Alam, Selangor
BANDAR TUN RAZAK
BANDAR BARU KLANG PJ STATE G11, G12, 01-11 & 01-12, Wisma Zelan
No. 28 & 30, Jalan Tiara 2C No. 11 & 13 Bandar Tun Razak
Bandar Baru Klang Jalan Yong Shook Lin, Seksyen 52 56000 Kuala Lumpur
41500 Klang, Selangor 46200 Petaling Jaya, Selangor
JALAN PINANG, KL
PETALING JAYA BANDAR BARU BANGI 19-1-1 Ground Floor & 19-1-1A
No. 1-1, Jalan 14/22 No. 37 & 39 Mezzanine Floor, UOA Centre
Wisma Federal Academy Ballet Jalan Medan Pusat 2D, Seksyen 9 No. 19 Jalan Pinang
46100 Petaling Jaya, Selangor 43650 Bandar Baru Bangi, Selangor 50450 Kuala Lumpur

bank rakyat
282 annual report
2015
corporate office
& branches
BANGSAR BARU REGION OFFICE 3 BUKIT MERTAJAM
No. 60 & 62, Ground Floor (KEDAH/PULAU PINANG/PERLIS) No. 22 & 24, Jalan Perda Selatan
Level 1 & 2, Jalan Maarof, Bangsar Baru Bandar Perda
59100 Kuala Lumpur No. 66, Level 2, Jalan Langgar 14000 Bukit Mertajam, Pulau Pinang
05460 Alor Setar, Kedah
DESA PANDAN BAYAN BARU
No. 33 & 35 Jalan 1/76 BALING No. 49, 51 & 53, Block H
Desa Pandan Ground Floor, Bangunan UMNO Persiaran Mahsuri 1/3, Sunway Avenue
55100 Kuala Lumpur Pekan Baru, 11950 Bayan Baru, Pulau Pinang
09100 Baling, Kedah
SHAMELIN (FORMERLY KNOWN AS JELUTONG
PUDU) KULIM No. 13 & 13A, Metro Avenue
No. 68-1-1 & 68-1-2, Jalan 4/91 No. 203 & 204, Jalan Lunas Jelutong Express Way
Dataran Shamelin Taman Seluang, Kelang Lama 11600 Pulau Pinang
Taman Shamelin Perkasa 09000 Kulim, Kedah
56100 Kuala Lumpur JAWI
MERGONG No. 56 & 58, Jalan Jawi Jaya 1
SELAYANG No. 7 & 8, Tuanku Haminah Business Centre, Taman Jawi Jaya, Seberang Prai Selatan
Ground Floor, Block B, KIP Tower Mergong 14200 Sungai Jawi, Pulau Pinang
Jalan Kuching 05150 Alor Setar, Kedah
68100 Kuala Lumpur KEPALA BATAS
JITRA No. 8, Jalan Dagangan 2
SETAPAK No. 247 & 248, Jalan PJ 2/2 Bertam Perdana City Centre
No. 1, Jalan 2/50, Diamond Square Pekan Jitra 2 13200 Kepala Batas, Pulau Pinang
Off Jalan Gombak 06000 Jitra, Kedah
53000 Kuala Lumpur KANGAR
LANGKAWI No. 13, Jalan Hospital
KEPONG No. 140 & 142, Persiaran Bunga Raya 01000 Kangar, Perlis
No. 11 & 15, Jalan Rimbunan Raya 1 Langkawi Mall, Kuah
Laman Rimbunan Raya 1 07000 Langkawi, Kedah ARAU
Laman Rimbunan No. 6, 8 & 10, Jalan Pauh
52100 Kepong, Kuala Lumpur SUNGAI PETANI Taman Pauh Utama
No. 28, Jalan Petani 02600 Pekan Pauh, Perlis
PUTRAJAYA 08000 Sungai Petani, Kedah
Ayer @ 8, Lot 3 & 3A, Blok B8C1 REGION OFFICE 4
Jalan P8G, Presint 8 ALOR SETAR (MELAKA/JOHOR)
62250 Putrajaya 66, Jalan Langgar
05460 Alor Setar, Kedah No. 4-5 & 6-5, Level 5, Jalan KC 1
PRESINT 15, PUTRAJAYA
KUALA NERANG Kota Cemerlang
No. 22 & 24, Jalan Diplomatik 3/1
Presint 15 No. 32-33 Pekan Baru, Jalan Semeliang 75450 Ayer Keroh, Melaka
62050 Putrajaya 06300 Kuala Nerang, Kedah MELAKA
DESA SRI HARTAMAS GURUN Bangunan Bank Rakyat
Lot B-02 & B-03, Galeria Hartamas No. 19 C & 19 D, Jalan Sungai Petani Jalan Hang Tuah, P.O Box No. 354
Jalan 26/70A, Desa Seri Hartamas 08300 Gurun, Kedah 75760 Melaka
50480 Kuala Lumpur JASIN
PENDANG
UTAMA, MKBR Lot 9-11, Pendang Square JA 9943 Bandar Baru Jasin III
Ground Floor, Menara Kembar Bank 06700 Pendang, Kedah 77000 Jasin, Melaka
Rakyat MASJID TANAH
SEBERANG JAYA
No. 33, Jalan Rakyat MT 2893-2895
No. 1, Ground Floor & Level 1
50470 Kuala Lumpur Jalan Taman Bandar Baru Utama
Jalan Todak 1, City Centre, Seberang Jaya
13700 Prai, Pulau Pinang Taman Bandar Baru Masjid Tanah
78300 Masjid Tanah, Melaka
GEORGETOWN
No. 137, Jalan Magazine
10300 Georgetown, Pulau Pinang
bank rakyat
annual report
2015
283
corporate office
& branches
AYER KEROH MERSING LIKAS
No. G-4 & G-6, Jalan KC 1 No. 6 & 7, Jalan Ismail No. 1, Block A, Plaza Juta, Jalan Tuaran
Kota Cemerlang, 86800 Mersing, Johor 88400 Kota Kinabalu, Sabah
75450 Ayer Keroh, Melaka
YONG PENG KOTA BELUD
MASAI No. 5 & 6, Jalan Tropika Utama Lot 3 & 4, Block E
No. 31, Jalan Suria 3 Taman Bukit Tropika Yick Ming Commercial Centre
Bandar Seri Alam 83700 Yong Peng, Johor 89157 Kota Belud, Sabah
81750 Masai, Johor
NUSAJAYA LABUAN
JOHOR BAHRU Lot 1610, Indahwalk 2 Jalan Indah 15/2 Ground Floor, Bangunan UMNO
Podium 2, Unit 2B, Ansar Tower Bukit Indah Pekan Baru, Unit No. E001, Ground Floor
No. 65, Jalan Trus, P.O. Box 112 81200 Johor Bahru, Johor Financial Park Labuan Complex
80000 Johor Bahru, Johor Jalan Merdeka
LABIS
MUAR No. 4A & 4B Jalan Segamat 87000 Labuan
No. 222, Jalan Abdullah 85300 Labis, Johor KOTA MARUDU
84000 Muar, Johor No. 6 & 7, WTK Phase 2
REGION OFFICE 5 89108 Kota Marudu, Sabah
BATU PAHAT (SABAH)
No. 3 & 4, Jalan Maju Barat, Taman Maju KENINGAU
Bukit Pasir Tingkat 5, Block B, Harbour City Lot 7 & 8, Block C, Keningau Plaza
83000 Batu Pahat, Johor Lot 20 & 21, Jalan Pantai Baru, Sembulan P.O. Box 910
PONTIAN 88000 Kota Kinabalu, Sabah 89008 Keningau, Sabah
No. 11, Jalan Delima 2 KOTA KINABALU PUTATAN
Pontian Trade Centre Lot 20 & 21, Blok B, Harbour City Lot 5 & 6, Tapak Putatan Baru
82000 Pontian, Johor Jalan Pantai Baru, Sembulan Jalan Putatan
KOTA TINGGI 88000, Kota Kinabalu, Sabah 88300 Kota Kinabalu, Sabah
No. 24 & 26, Jalan Jaya 1, Taman Jaya LAHAD DATU SEMPORNA
81900 Kota Tinggi, Johor Lot 27 & 28, Block D, Airport Plaza Lot D2 & A19, Jalan Bubul
SEGAMAT Fajar Centre, Jalan Segama Bandar Utama Semporna
No. 123 & 124, Jalan Genuang 91100 Lahad Datu, Sabah 91308 Semporna, Sabah
85000 Segamat, Johor TAWAU REGION OFFICE 6
LARKIN PERDANA TB 4615-4617 (KELANTAN/TERENGGANU)
No. 61 & 63, Susur Larkin Perdana 1 Ba Zhong Commercial Centre
Persiaran Larkin Perdana Jalan Tawau Lama No. 25 & 26, Level 4
Taman Larkin Perdana 91000 Tawau, Sabah Bazar Maidam, Jalan Masjid Abidin
81100 Johor Bahru, Johor BEAUFORT 20100 Kuala Terengganu, Terengganu
KLUANG Lot 21 & 22, Block C, Commercial Lot KOTA BHARU
No. 27 & 29, Jalan Md Lazim Saim New Beaufort Jaya, Beaufort Bridge Lot 206 & 207, Jalan Pengkalan Chepa
86000 Kluang, Johor 89800 Beaufort, Sabah 15400 Kota Bharu, Kelantan
TAMAN UNIVERSITI, SKUDAI SANDAKAN PASIR MAS
No. 1 & 3, Jalan Kebudayaan 1 Lot 4 & 5, Phase 2, PT 315 & PT 316
Taman Universiti Sandakan Square, Jalan Prayer Wisma Majlis Daerah Pasir Mas
81300 Skudai, Johor 90000 Sandakan, Sabah Jalan Pasir Pekan
PENAMPANG 17000 Pasir Mas, Kelantan
KULAI
No. 4 & 5, Jalan Anggerik Satu No. 49 & 50, Block H, MACHANG
Taman Kulai Utama Donggongan Square, Penampang Lot 90-92,
81000 Kulai, Johor 89500 Kota Kinabalu, Sabah Bangunan Usahasama Sentosa Jaya
Dev. Sdn Bhd, Jalan Bakat
18500 Machang, Kelantan

bank rakyat
284 annual report
2015
corporate office
& branches
GUA MUSANG MARANG KUALA LIPIS
Lot PT 7841 & PT 7842 Lot 8996 & 8997 Lot 2891, Jalan BBKL, 2-3-1
Jalan Persiaran Raya, Taman Mesra Marang Commercial Complex No. 2-3-1, Bandar Baru Kuala Lipis
18300 Gua Musang, Kelantan 21600 Marang, Terengganu 27200 Kuala Lipis, Pahang
KUBANG KERIAN KERTEH BENTONG
Lot PT 1709 & 1710 Lot PT14507, 14508 & 14509 No. P18 & P19
Jalan Raja Perempuan Zainab 2 Kampung Baru, Mukim Kerteh Jalan Prima 1, Bentong Prima
Bandar Baru Kubang Kerian 24300 Kerteh, Terengganu 28700 Bentong, Pahang
16150 Kubang Kerian, Kelantan
SEREMBAN
TANAH MERAH REGION OFFICE 7 Bangunan Bank Rakyat, Lot 5750
(PAHANG/NEGERI SEMBILAN)
Lot PT 237 & PT 238 Jalan Tuanku Munawir, Peti Surat 70
Bandar Tanah Merah 70000 Seremban, Negeri Sembilan
17500 Tanah Merah, Kelantan B160 & B162, Level 1, Jalan IM 8/33
Indera Mahkota City BAHAU
WAKAF CHE YEH 25000 Kuantan, Pahang No. 25 & 26, Ground Floor & Level 1
No. J-105 & J-106 Bahau Business Centre, Jalan Masjid
Wakaf Che Yeh Commercial Zone KUANTAN 72100 Bahau, Negeri Sembilan
15050 Kota Bharu, Kelantan G-15, Mahkota Square, Jalan Mahkota
25000 Kuantan, Pahang LUKUT
KUALA KRAI No. 137 & 138, Jalan D8 1/11
No. PT 5572 & PT 5573 TEMERLOH Bandar Dataran Segar, Lukut
KM 2, Jalan Kuala Krai - Gua Musang No. 7 & 9, Jalan Sudirman 2 71010 Port Dickson, Negeri Sembilan
18000 Kuala Krai, Kelantan Bandar Sri Semantan
28000 Temerloh, Pahang TAMPIN
KUALA TERENGGANU No. 1135 Taman Seri Intan
No. 8 & 9, Paya Keladi Business Centre JENGKA 73000 Tampin, Negeri Sembilan
Jalan Paya Keladi Lot 92, Jalan Zamrud Nadi Kota
20000 Kuala Terengganu, Terengganu 26400 Bandar Jengka, Pahang NILAI
PT 7436, Jalan BBN 1/2F, Bandar Baru Nilai
DUNGUN JERANTUT 71800 Nilai, Negeri Sembilan
PT 12447 & 12448 No. 1, Jalan Pine 1, Taman Pine
Taman Saujana, Sura Gate 27000 Jerantut, Pahang SENAWANG
23000 Dungun, Terengganu No. 156 & 157, Block L,
RAUB Senawang Commercial Park,
KEMAMAN No. 25 & 26 70450 Seremban, Negeri Sembilan
Lot K12086 & K12087 Bandar Raub Perdana, Jalan Lipis
Jalan Kubang Kurus 27600 Raub, Pahang KUALA PILAH
24000 Kemaman, Terengganu Lot No. 3803 & 3804
PEKAN Jalan Dato Muar, Ulu Muar
GONG BADAK G-1, Bangunan UMNO Pekan 70000 Kuala Pilah, Negeri Sembilan
No. 1, 2 & 3, Taman Tanjung Permata Jalan Teng Quee
Kampung Gong Badak, Jalan Batu Rakit 26600 Pekan, Pahang REGION OFFICE 8
21300 Kuala Terengganu, Terengganu (PERAK)
MUADZAM SHAH
JERTIH No. 117, 118 & 119
Jalan Medan Mewah 7, Medan Mewah No. 47B, Jalan Meru Bestari A2
Lot 4123 & 4124, Jalan Pasar Medan Meru Bestari
Bandar Jertih 26700 Bandar Muadzam Shah, Pahang
30020 Ipoh, Perak
22000 Jertih, Terengganu BANDAR INDERA MAHKOTA
No. B 56 & B 58, Persiaran Sultan TELUK INTAN
KUALA BERANG No. 187, Jalan Intan 5, Bandar Baru
PT 11282 & 11283, Batu 23 Abu Bakar, Bandar Indera Mahkota
25000 Kuantan, Pahang 36000 Teluk Intan, Perak
Jalan Kuala Berang
21700 Kuala Berang, Terangganu BERA MEDAN GOPENG
No. 13, 15 & 17, Jalan Angsana 1 No. 37 & 39, Medan Gopeng 1
Taman Angsana, Bandar Bera Jalan Raja Dr Nazrin Shah, Peti Surat 494
28200 Bera, Pahang 30750 Ipoh, Perak

bank rakyat
annual report
2015
285
corporate office
& branches
BAGAN SERAI GRIK SARIKEI
No. 132, Jalan Setia, Pusat Bandar No. 1, Jalan Indah 1 No. 22 & 22A, Lorong Tun Razak 1
34300 Bagan Serai, Perak 33600 Grik, Perak 96100 Sarikei, Sarawak
TAIPING REGION OFFICE 9 KOTA SAMARAHAN
Lot 2478 & 2482, Jalan Berek (SARAWAK) Lot 18 & 19, Uni Capital Commercial Centre
34000 Taiping, Perak Kuching/Kota Samarahan Express Way
Level 3, Sublot 9 & 10, Block 16 94300 Kota Samarahan, Sarawak
MERU RAYA
No. 42 & 44, Jalan Meru, Impian A1 KCLD, Jalan Tun Jugah MUKAH
Meru Impian Business Centre 93350 Kuching, Sarawak No. 1152 & 1153, Block C
Bandar Meru Raya SIMPANG TIGA Mukah Town Extension Phase II
30010 Ipoh, Perak Ground Floor & Level 1, No. 9 & 10 96400 Mukah, Sarawak
MANJUNG Block 16, KCLD, Jalan Tun Jugah MATANG JAYA
No. 41, 43 & 45, Persiaran PM 3/2 93350 Kuching, Sarawak No. 3 & 4, Taman Lee Ling
Seri Manjung City Centre, Section III SATOK (FORMERLY KNOWN AS KUCHING) Commercial Centre, Jalan Matang
32040 Seri Manjung, Perak Lot 504, Section 6 93050 Kuching, Sarawak
TAPAH KTLD, Jalan Kulas Tengah KAPIT
No. 56 & 57, Jalan Besar 93400 Kuching, Sarawak Lot 542 & 543, Wisma Ngieng Ping Toh
35000 Tapah, Perak SIBU Jalan Airport
Lot 12 E & 12 F, Block 4 96800 Kapit, Sarawak
KUALA KANGSAR
No. 1 & 2, Bangunan Bank Rakyat Jalan Kampung Datu LIMBANG
Jalan Daeng Selili 96000 Sibu, Sarawak Lot 11 & 12, Limbang Town District
33000 Kuala Kangsar, Perak Jalan Pandaruan
MIRI
Lot 1111 & 1112 98700 Limbang, Sarawak
SRI ISKANDAR
No. 24 & 26, Jalan Maju Satu Bangunan Tabung Baitul Mal KOTA PADAWAN
Taman Maju, Bandar Sri Iskandar Sarawak Pelita Commercial Central Lot 42 & 43
32610 Bandar Seri Iskandar, Perak 98000 Miri, Sarawak 10th Mile Commercial Centre
TANJUNG MALIM SRI AMAN Jalan Kuching-Serian, Kota Padawan
Lot 27 & 29, Jalan Permai 1 Lot 1467 & 1468 93250 Kuching, Sarawak
Taman Ketoyong Permai 2 Seksyen 3 S.T.D, Jalan Hospital PERMYJAYA
35900 Tanjung Malim, Perak 95000 Sri Aman, Sarawak Lot 7971 & 7972, Phase 3 City Centre
GREENTOWN BINTULU Bandar Baru Permyjaya
No. 8 & 10, Jalan Greentown 5 Lot 22 & 23, Commerce Square 98000 Miri, Sarawak
Greentown Nova Jalan Tun Ahmad Zaidi
30450 Ipoh, Perak 97000 Bintulu, Sarawak

bank rakyat
286 annual report
2015
ar-rahnu x'change
ALOR SETAR
KELANTAN No. 47, Jalan PSK Satu
KUALA LUMPUR
JELAWAT Pekan Simpang Kuala SENTUL
Lot 164, Pekan Jelawat 05400 Alor Setar, Kedah No. 22, Jalan 14/48 A
16070 Bachok, Kelantan MERGONG Sentul Raya Boulevard
No. 19, Lorong Putih 9 51000 Kuala Lumpur
KOTA BHARU
Ground Floor, Lot PT 68 Taman Rakyat Mergong JALAN RAKYAT
Bangunan Yabmud, Jalan Kebun Sultan 05150 Alor Setar, Kedah GB, Menara 1
15350 Kota Bharu, Kelantan LANGKAWI Menara Kembar Bank Rakyat
No. 66, Persiaran Dayang 1 No. 33, Jalan Rakyat
SELANGOR Dayang Business Center 50470 Kuala Lumpur
07000 Langkawi, Kedah
AMPANG PERAK
No. 53G, Jalan Wawasan 2/1 CHANGLUN
Bandar Baru Ampang No. 61-A & B, Pekan Baru, Jalan Kodiang TELUK INTAN
68000 Ampang, Selangor 06010 Changlun, Kedah Jalan Selat
36000 Teluk Intan, Perak
BALAKONG MELAKA
No. 7G, Jalan Cheras Maju PEKAN SIMPANG
Cheras Maju Business Centre MELAKA SENTRAL No. 31, Ground Floor
43200 Balakong, Selangor No. 49, Ground Floor, Jalan PMS 1 Susur Simpang Jalan Kg. Dew
Plaza Melaka Sentral 34700 Simpang, Perak
BATANG KALI
No. 37, Jalan Mahogani 7/1, Seksyen 4 75400 Melaka BATU GAJAH
Bandar Utama Batang Kali SUNGAI UDANG No. 5, Ground Floor, Jalan Dewangsa
44300 Batang Kali, Selangor No. 2, Ground Floor, Jalan Pahlawan 7 31000 Batu Gajah, Perak
ULU KELANG Taman Pahlawan SITIAWAN
No. 3-G, Ground Floor, Ukay Boulevard 76300 Sungai Udang, Melaka No. 25, Ground Floor
Jalan Lingkaran Tengah 2 Taman Sentosa Jalan Lumut
68000 Hulu Klang, Selangor JOHOR 32000 Sitiawan, Perak

TERENGGANU ULU TIRAM NEGERI SEMBILAN


Unit S-18-B, Ground Floor, Jalan Tembusu
KEMAMAN 81800 Ulu Tiram, Johor KUALA PILAH
No. 22, Jalan Sulaimi Chukai MUAR No. 511, Ground Floor, Taman Sentosa
24000 Kemaman, Terengganu No. 25-2, Jalan Majidi 72000 Kuala Pilah, Negeri Sembilan
84000 Muar, Johor
PAHANG REMBAU
KLUANG No. 990, Ground Floor, Jalan Terentang
KUANTAN No. 22, Ground Floor, Jalan Pesona 2 71300 Rembau, Negeri Sembilan
G-14, Mahkota Square, Jalan Mahkota Taman Pesona
25000 Kuantan, Pahang 86000 Kluang, Johor ENSTEK
No. 78, Bandar Baru Enstek
MENTAKAB TANGKAK
71670 Seremban, Negeri Sembilan
No. 119, Ground Floor, Jalan Temerloh No. 9, Ground & Mezzanine Floor
28400 Mentakab, Pahang Jalan Muar
84900 Tangkak, Johor
SARAWAK
KUALA ROMPIN
No. 70 & 71 Jalan Pasar MASAI SATOK
Bandar Baru Rompin No. 16, Jalan Sejambak 14 Lot 497, Section 6
26800 Kuala Rompin, Pahang Taman Bukit Dahlia KTLD Jalan Kulas Tengah
81700 Pasir Gudang, Johor 93400 Kuching, Sarawak
KEDAH
SUNGAI PETANI
No. 21 F, Jalan Ibrahim
08000 Sungai Petani, Kedah
bank rakyat
annual report
2015
287
subsiDiaries
RAKYAT HOLDINGS SDN BHD RAKYAT NIAGA SDN BHD RAKYAT HARTANAH SDN BHD
Level 12, Menara 2 Level 11, Menara 2 Level 10, Menara 2
Menara Kembar Bank Rakyat Menara Kembar Bank Rakyat Menara Kembar Bank Rakyat
No. 33, Jalan Rakyat No. 33, Jalan Rakyat No. 33, Jalan Rakyat
50470 Kuala Lumpur 50470 Kuala Lumpur 50470 Kuala Lumpur
Email : admin@rakyatholdings.com.my Email : admin@rakyatholdings.com.my Tel : 03-2276 4510 / 4512 / 4513
Hunting Line : 03-2265 7676 Tel : 03-2276 4516 / 4517 / 4518 Fax : 03-8737 0828
Fax : 03-2276 5332
RAKYAT TRAVEL SDN BHD RAKYAT FACILITY MANAGEMENT
Level 11, Menara 2 RAKYAT MANAGEMENT SERVICES SDN BHD
Menara Kembar Bank Rakyat SDN BHD Level 10, Menara 2
No. 33, Jalan Rakyat Level 11, Menara 2 Menara Kembar Bank Rakyat
50470 Kuala Lumpur Menara Kembar Bank Rakyat No. 33, Jalan Rakyat
Email : info@rakyatravel.com.my No. 33, Jalan Rakyat 50470 Kuala Lumpur
Website : www.rakyatravel.com.my 50470 Kuala Lumpur Email : admin@rakyatholdings.com.my
Tel : 03-2276 6980 / 6981 / 6983 / Email : rms@bankrakyat.com.my Tel : 03-2265 7661 / 7662
6984 Website : www.arrahnuxchange.com.my Fax : 03-2265 7663
Fax : 03-2276 5233 Tel : 03-2265 7566 / 67 / 68 / 69
Fax : 03-2265 7571

bank rakyat
288 annual report
2015
serVice agents
KOPERASI POS DAN TELEKOM KOPERASI GURU-GURU MELAYU
KEDAH
PULAU PINANG BERHAD KERIAN DAN SELAMA BERHAD
KOPERASI UNIVERSITI UTARA No. 80, Jalan Rangoon No. 1, Jalan Helang, Pekan Baru
MALAYSIA BERHAD 10400 Georgetown, Pulau Pinang 34200 Parit Buntar, Perak
Tel : 04-226 1346
Pekan Changlun 2 Fax : 04-227 1346 KOPERASI GURU-GURU MELAYU
06010 Changlun, Kedah KERIAN DAN SELAMA BERHAD
Tel : 04-928 5507 KOPERASI KOLEJ KEMAHIRAN TINGGI (BRANCH)
Fax : 04-924 2539 BALIK PULAU BERHAD No. 41, Jalan Wawasan 3
Jalan Genting Taman Wawasan Jaya
KOPERASI GURU-GURU MELAYU 11000 Balik Pulau, Pulau Pinang 34200 Parit Buntar, Perak
KEDAH BERHAD Tel : 04-866 5805 Tel : 05-716 1157
Bangunan Guru Fax : 04-866 5741 Fax : 05-716 1287
Persiaran Sultan Abdul Hamid
05050 Alor Star, Kedah KOPERASI PEKERJA PRASARANA KOPERASI PESERTA-PESERTA
Tel : 04-777 3373 MALAYSIA BERHAD RANCANGAN FELCRA SEBERANG PERAK
Fax : 04-771 1215 Block 228A-2-1, Fortune Court BERHAD
Bandar Baru Farlim, Jalan Thean Teik
BRANCH 11400 Pulau Pinang Lebuh Paduka, Bandar Seberang Perak
Hotel Darulaman Tel : 04-827 9006 36800 Kampung Gajah, Perak
Bandar Darul Aman Fax : 04-829 6007 Tel : 05-655 8101
06000 Jitra, Kedah Fax : 05-655 8100
Tel : 04-918 3868 KOPERASI GURU AGAMA KERAJAAN
Fax : 04-918 3866 NEGERI PULAU PINANG BERHAD SELANGOR
2640, Level 1, Taman Haji Ahmad Jamil
KOPERASI PESERTA-PESERTA Tasek Gelugor KOPERASI KAKITANGAN UNIVERSITI
RANCANGAN FELCRA PULAU BELANTIK 13300 Seberang Perai, Pulau Pinang TEKNOLOGI MARA BERHAD
SIK BERHAD Tel : 04-575 9566 B13-2, Jalan Lazuardi 7/9, Seksyen 7
Felcra Pulau Belantik, Kota Aur Fax : 04-575 9566 40000 Shah Alam, Selangor
08210 Sik, Kedah Tel : 03-5519 5912
Tel : 04-752 1440 PERAK Fax : 03-5513 0540
KOPERASI KAKITANGAN KERAJAAN KOPERASI PEMBANGUNAN PEKERJA
KOPERASI PASAR MINGGUAN HULU PERAK BERHAD INDUSTRI SELANGOR BERHAD
GUAR CHEMPEDAK BERHAD Level 2, Wisma KOSEK Suite 1-17, Jalan Dagang B/3A
No. 3 Level 1, Bangunan Arked Jalan Takong Datok Taman Dagang
08800 Guar Chempedak, Kedah 33300 Grik, Perak 68000 Ampang, Selangor
Tel : 04-468 1697 Tel : 05-791 1887 Tel : 03-4270 4331
Fax : 04-468 1697 Fax : 05-791 1887 Fax : 03-4270 7659
KOPERASI PEKEBUN KECIL KOPERASI SELAMA PERAK BERHAD KOPERASI PENEROKA SUNGAI TENGI
DAERAH KUBANG PASU BERHAD Lot No. 4, Jalan Besar Selama BERHAD
No. 167, Jalan Hosba 7, Taman Sri Hosba 34100 Selama, Perak BH Petrol Station Building
KM 18, North-South Expressway Tel : 05-839 4532 Jalan Merdeka, Desa Maju Sungai Tengi
Pekan Napoh Fax : 05-839 2940 44010 Kuala Kubu Bharu, Selangor
06000 Jitra, Kedah Tel : 03-6042 1034
Tel : 04-917 2172 KOPERASI BINA BERSAMA KAMPONG
GAJAH PERAK BERHAD KOPERASI UNIKEB BERHAD
PULAU PINANG No. 14A, Medan Koperasi Wisma UNIKEB
36800 Kampong Gajah, Perak Universiti Kebangsaan Malaysia
KOPERASI UNIVERSITI SAINS Tel : 05-631 1368 43600 Bangi, Selangor
MALAYSIA BERHAD Fax : 05-631 1368 Tel : 03-8925 2540
Universiti Sains Malaysia Fax : 03-8925 7177
11800 Minden, Pulau Pinang
Tel : 04-653 3888
Fax : 04-657 5688

bank rakyat
annual report
2015
289
serVice agents
KOPERASI MEMBELI DAN MEMBUKA KOPERASI SERBAMAJU DAERAH
WILAYAH PERSEKUTUAN
TANAH SERI CHEEDING BERHAD JEMPOL BERHAD (BRANCH)
Lot 6665, Jalan Merak KOPERASI PEKERJA FELDA MALAYSIA ESSO Serting Station
Kampung Seri Cheeding BERHAD Lot 511 Bandar Serting
42700 Banting, Selangor No. 2F, Jalan Gurney 72120 Bandar Seri Jempol
Tel : 03-3191 4729 54000 Kuala Lumpur Negeri Sembilan
Fax : 03-3191 4729 Tel : 03-2698 4202 Tel : 06-458 1454
Fax : 03-2693 4511 Fax : 06-458 5101
KOPERASI TERAS SEMENYIH
SELANGOR BERHAD KOPERASI KAKITANGAN BANK RAKYAT KOPERASI JELAI TIGA GEMAS BERHAD
24 & 25, Section 2, Jalan Besar BERHAD (SEKATARAKYAT) Co-op Petrol Station
43500 Semenyih, Selangor No. 74B & 74C, Level 2 & 3 Kampung Felda Jelai Tiga
Tel : 03-8723 8615 Jalan Kampung Attap, Off Jalan Sulaiman 73480 Gemas, Negeri Sembilan
Fax : 03-8723 4479 50460 Kuala Lumpur Tel : 06-434 7495
Tel : 03-2273 3314 Fax : 06-434 7495
KOPERASI PEMBANGUNAN Fax : 03-2274 1314
PULAU LUMUT BERHAD MELAKA
No. 24A, Jalan Batu Unjur 1 KOPERASI PEKERJA-PEKERJA BANK
Bayu Perdana MALAYSIA BERHAD KOPERASI KAKITANGAN PENJARA
41200 Klang, Selangor Lot No. 1108-1109B MELAKA BERHAD
Tel : 03-3324 2728 Level 11, Wisma MPL, Jalan Raja Chulan 2S & 2S-1, Jalan Seri Emas 17
Fax : 03-3324 2558 50200 Kuala Lumpur Taman Seri Telok Emas
Tel : 03-2031 4933 75460 Melaka
KOPERASI UNIVERSITI PUTRA Fax : 03-2031 7298 Tel : 06-261 7429
MALAYSIA BERHAD Fax : 06-261 9261
Level 1, Business Centre KOPERASI KEDAI BUKU
UNIVERSITI MALAYA BERHAD
JOHOR
Universiti Putra Malaysia Perdanasiswa, Universiti Malaya
43400 Serdang, Selangor Mailbox 1127, Jalan Pantai Baru KOPERASI PELABURAN
Tel : 03-8946 7980 59700 Kuala Lumpur PEKERJA-PEKERJA KEJORA BERHAD
Fax : 03-8948 9796 Tel : 03-7955 2595 No. 15, Shop Building, City Center
Fax : 03-7954 7040 Bandar Penawar
KOPERASI PELABURAN PEKERJA
PROTON BERHAD KOPERASI SIMPANAN DAN KREDIT 81930 Kota Tinggi, Johor
Investment Co-op Store BERSATU MALAYSIA BERHAD Tel : 07-822 1394
Pekerja Proton Berhad, Seksyen 26 A-G-5, Block A, Glomac Damansara Fax : 07-822 1394
40400 Shah Alam, Selangor No. 699, Jalan Damansara KOPERASI PERUNDING TAKAFUL
Tel : 03-5192 5611 60000 Kuala Lumpur IKHLAS MALAYSIA BERHAD
Fax : 03-5102 6148 Tel : 03-7732 9102 No. 3, Jalan Langsat, Mailbox 142
88000, Kluang, Johor
KOPERASI KAKITANGAN UNIKL MIAT
NEGERI SEMBILAN Tel : 07-771 9788
SEPANG BERHAD
Fax : 07-774 4788
Lot 2891, Jalan Jenderam Hulu KOPERASI MELAYU BERJAWATAN
43800 Dengkil, Selangor KERAJAAN NEGERI SEMBILAN BERHAD KOPERASI KONTRAKTOR DAN
Tel : 03-8768 0804 No. 39 & 40, Wisma Bukti USAHAWAN MELAYU LEDANG BERHAD
Fax : 03-8768 8485 Taman Bukti Ampangan No. 166, Ground Floor, Jalan Muar
70400 Seremban, Negeri Sembilan 84900 Tangkak, Johor
KOPERASI WANITA BISTARI PANTAI Tel : 06-978 3719
Tel : 06-679 1633
SEPANG PUTRA SEPANG BERHAD Fax : 06-979 1119
Fax : 06-679 1733
No. 7, Jalan Perling 2
KOPERASI PENULIS DAN PEMBACA
Pantai Sepang Putra, Sungai Pelek KOPERASI SERBAMAJU DAERAH
MUAR BERHAD
43950 Sepang, Selangor JEMPOL BERHAD
TL MBP 115, Parit Raja
Tel : 03-3141 3054 Level 10, Jalan Beringin 2
KM5, Jalan Temenggong Ahmad
Fax : 03-3141 3054 72200 Batu Kikir, Negeri Sembilan 84000 Muar, Johor
Tel : 06-454 8621 Tel : 06-981 1226
Fax : 06-981 1292
bank rakyat
290 annual report
2015
serVice agents
KOPERASI FELDA LOK HENG TIMUR KOPERASI SERBAGUNA KOPERASI PESERTA-PESERTA FELCRA
BERHAD FELDA KERATONG TIGA BERHAD GUGUSAN BUKIT TANDAK KELANTAN
Co-op Building, Felda Lok Heng Timur Felda Keratong Tiga BERHAD
81909 Kota Tinggi, Johor 26900 Bandar Tun Abdul Razak, Pahang
Tel : 07-894 7889 Tel : 09-445 7452 Kawasan Bukit Tandak
Fax : 07-894 7452 Fax : 09-445 7452 17200 Rantau Panjang, Kelantan
Tel : 013-933 5259
KOPERASI PENEROKA FELDA
PAHANG Fax : 09-958 4288
TEMBANGAU SATU KEMAYAN PAHANG
KOPERASI GURU-GURU MELAYU BERHAD KOPERASI PENEROKA
PAHANG BARAT BERHAD FELDA KEMAHANG 1 BERHAD
No. 3C, Level 2, Bangunan KGMPB 28380 Kemayan, Pahang c/o Felda Kemahang 1
Lipis Inn Complex Tel : 06-468 5406 17500 Tanah Merah, Kelantan
27200 Kuala Lipis, Pahang Fax : 06-468 5406 Tel : 09-958 2007
Tel : 09-312 1800 Fax : 09-958 4288
Fax : 09-312 3877 TERENGGANU
SABAH
KOPERASI PEMBANGUNAN KOPERASI PEMBANGUNAN DAERAH
DAERAH MARAN BERHAD SETIU BERHAD KOPERASI ANAK WATAN RANAU
No. 2, Level 2 Wisma KPD, Permaisuri City BERHAD
Wisma Pemuda, Bangunan UMNO 22100 Setiu, Terengganu Block B, Lot 10, SEDCO
Jalan Perpustakaan Tel : 09-609 2333 89300 Ranau, Sabah
26500 Maran, Pahang Fax : 09-609 2332 Tel : 088-87 9539
Tel : 019-966 7186 Fax : 088-87 6073
KOPERASI COBE PANTAI TIMUR
KOPERASI PESERTA-PESERTA FELCRA BERHAD KOPERASI PEKERJA YAYASAN SABAH
GUGUSAN SRI MAKMUR BERHAD No. 102B, Level 2, Bangunan Cobe BERHAD
Felcra Sri Makmur Jalan Engku Embong Fatimah Lot 7-3, Level 3
26030 Kuantan, Pahang 20200 Kuala Terengganu, Terengganu Bunga Raja Shopping Complex
Tel : 09-546 8878 Tel : 09-622 2796 Lorong Bunga Raja 5, Off Jalan Lintas
Fax : 09-546 1040 Fax : 09-624 1498 88845 Kota Kinabalu, Sabah
KOPERASI FELDA SUNGAI KOYAN III KOPERASI FELCRA KAWASAN HULU Tel : 088-38 9258
RAUB BERHAD BERANG HULU TERENGGANU BERHAD Fax : 088-38 3258
c/o Felda Sungai Koyan 3 Lot 3765, Kampung Matang KOPERASI BELIA TENOM BERHAD
27650 Raub, Pahang Jalan Felda Mengkawang, Ajil Asia Rasa Bed & Breakfast,
Tel : 09-340 1442 21800 Terengganu Jalan Tun Mustafa, W.D.T 32
Fax : 09-340 1442 Tel : 09-612 4845 89907 Tenom, Sabah
KOPERASI MUKMIN Tel : 013-851 6198
CAMERON HIGHLANDS BERHAD
KELANTAN
KOPERASI UNIVERSITI MALAYSIA
Jalan Besar Brinchang, Brinchang KOPERASI PESERTA-PESERTA SABAH BERHAD
39200 Cameron Highlands RANCANGAN FELCRA GUGUSAN Student Services Centre Building
Pahang GEMANG BERHAD
Tel : 05-491 1425 PT 2103/C Bandar Baru Bukit Bunga Universiti Malaysia Sabah
KOPERASI SERBAGUNA FELDA CHINI 17700 Air Lanas, Kelantan 88999 Kota Kinabalu, Sabah
TIMUR SATU BERHAD Tel : 09-946 8799 Tel : 088-320 714
Felda Chini Timur Satu, Chini Fax : 09-946 8513
KOPERASI SERBAGUNA SANYA BERHAD
26690 Pekan, Pahang KOPERASI PEKEBUN KECIL (KOSAN)
Tel : 09-457 1266 PASIR PUTEH BERHAD Block 2-4, Block B, Wisma KOSAN Likas,
Fax : 09-457 1266 Lot 455, Bangunan PKINK, Jalan Nara KM 7, Jalan Tuaran,
16800 Pasir Puteh, Kelantan 88992 Kota Kinabalu, Sabah
Tel : 09-786 7302
Fax : 09-786 2717

bank rakyat
annual report
2015
291
serVice agents
KOPERASI SERBAGUNA SANYA BERHAD KOPERASI SARATOK BERHAD
SARAWAK
(KOSAN) (BRANCH) c/o Lot 379, Petronas Petrol Station
KOSAN Tuaran Clothing Company KOPERASI KOPERKASA BERHAD Saratok Town District
Batu 19 1/2, Jalan Tuaran, Mailbox 34 No. 16-19, Wisma KOPERKASA 95400 Saratok, Sarawak
89207 Tuaran, Sabah Jalan Simpang Tiga Tel : 083-43 8385
Tel : 088-43 2855 93300 Kuching, Sarawak
Fax : 088-42 3475 Tel : 082-41 5611 KOPERASI SINARAN LAWAS BERHAD
Fax : 082-23 1650 Batu 1/4, Jalan Punang
KOPERASI CITRA WAWASAN BELURAN 98850 Lawas, Sarawak
BERHAD KOPERASI BUMIPUTERA KANOWIT Tel : 085-28 4340
Lot 6, Ground Floor, SEDCO BERHAD
Lot 125, Pekan Kanowit KOPERASI PERDAGANGAN DAN
Mailbox 16 PERINDUSTRIAN BARAM MIRI BERHAD
90107 Beluran, Sabah 96700 Kanowit, Sarawak
Tel : 019-865 2539 Lot 337, Pasar Marudi
Tel : 012-810 5035 98050 Baram, Sarawak
Fax : 089-51 2595 KOPERASI SHARIF MASHOR SEBUYAU Tel : 019-856 1461
KOPERASI ANAK WAWASAN KOTA BERHAD Fax : 085-75 6526
KINABALU BERHAD Lot 178, Pasar Baru
94850 Sebuyau, Sarawak KOPERASI DAERAH JULAU BERHAD
Lot 3A 34, Level 3, Lot 42, Jalan Lim Ah Din
Central Shopping Plaza, Jalan Banjaran Tel : 013-895 1553
96600 Julau, Sarawak
88200 Kota Kinabalu, Sabah Tel : 019-817 5566
Tel : 088-25 4534 Fax : 084-73 4299
Fax : 088-25 4534

rakyat xcess & ar-rahnu x'change


JOHOR KEDAH NEGERI SEMBILAN
RAKYAT XCESS BENUT RAKYAT XCESS SIMPANG KUALA RAKYAT XCESS GEMAS
No. 39, Ground Floor, Jalan Mutiara 4 No. 33 & 34 Jalan SPK 1 Lot 4642, Ground Floor, Pekan Gemas
Benut Business Centre Pekan Simpang Kuala 73400 Gemas, Negeri Sembilan
82200 Benut, Johor 05400 Alor Setar, Kedah
AR-RAHNU XCHANGE GEMAS
AR-RAHNU XCHANGE BENUT AR-RAHNU XCHANGE SIMPANG KUALA Lot 4642, Level 1, Pekan Gemas
No. 40, Ground Floor, Jalan Mutiara 4 No. 33 & 34 Jalan SPK 1 73400 Gemas, Negeri Sembilan
Benut Business Centre Pekan Simpang Kuala
82200 Benut, Johor 05400 Alor Setar, Kedah PAHANG
RAKYAT XCESS PARIT RAJA KELANTAN RAKYAT XCESS MENTAKAB
No. 52, Jalan Universiti 1 No. 121, Ground Floor
Taman Universiti RAKYAT XCESS JELI Jalan Temerloh
86400 Parit Raja, Johor Lot 6491, Lower & Upper Floor 28400 Mentakab, Pahang
AR-RAHNU XCHANGE PARIT RAJA Opposite Fire and Rescue Station
Taman Haji Hamat AR-RAHNU XCHANGE MENTAKAB
No. 53, Jalan Universiti 1 No. 119, Ground Floor
Taman Universiti 17600 Jeli, Kelantan
Jalan Temerloh
86400 Parit Raja, Johor AR-RAHNU XCHANGE JELI 28400 Mentakab, Pahang
Lot 6491, Lower and Upper Floor
Opposite Fire and Rescue Station
Taman Haji Hamat
17600 Jeli, Kelantan

bank rakyat
292 annual report
2015
rakyat xcess
& ar-rahnu x'change
RAKYAT XCESS BERANANG
SELANGOR TERENGGANU
No. 27-G, Jalan TPS 2/1
RAKYAT XCESS BANDAR TASIK PUTERI Taman Pelangi Semenyih 2 RAKYAT XCESS CHABANG TIGA
No. 69-G, Jalan 7A/3, Bandar Tasik Puteri 43700 Baranang, Selangor No. 2 & 3, Ground Floor
48020 Rawang, Selangor AR-RAHNU XCHANGE BERANANG Wisma KY Kg. Chabang Tiga
No. 27-G & 1, Jalan TPS 2/1 Simpang Tok Ku
AR-RAHNU XCHANGE 21000 Kuala Terengganu, Terengganu
BANDAR TASIK PUTERI Taman Pelangi Semenyih 2
No. 69-G & 1, Jalan 7A/3, Bandar Tasik Puteri 43700 Beranang, Selangor AR-RAHNU XCHANGE CHABANG TIGA
48020 Rawang, Selangor RAKYAT XCESS SAUJANA UTAMA No. 2 & 3, Ground Floor, Wisma KY
No. 1-G-50, Jalan Bidara 6/3 Kg. Chabang Tiga, Simpang Tok Ku
RAKYAT XCESS BANGI 21000 Kuala Terengganu, Terengganu
Lot 1.01 Ground Floor, Wisma UNIKEB Bandar Saujana Utama
43609 Bangi, Selangor 47000 Sungai Buloh, Selangor

AR-RAHNU XCHANGE BANGI AR-RAHNU XCHANGE SAUJANA UTAMA


Lot 1.01 Ground Floor, Wisma UNIKEB No. 1-G-52, Jalan Bidara 6/3
43609 Bangi, Selangor Saujana Utama 3
47000 Sungai Buloh, Selangor

rakyat xcess
NEGERI SEMBILAN SARAWAK JOHOR
RAKYAT XCESS SEREMBAN 2 RAKYAT XCESS SERIAN RAKYAT XCESS BUKIT GAMBIR
No. 115, Ground Floor No. 11, Ground Floor No. 6, Jalan Gambir 5
Jalan S2 F2, Garden Homes Seremban 2 Louis Junction, Batu 39 Pusat Komersil Gambir
70000 Seremban, Negeri Sembilan Jalan Kuching-Serian 84800 Bukit Gambir, Johor
94700 Serian, Sarawak
PAHANG
RAKYAT XCESS CAMERON HIGHLANDS
No. 6-1, Marigold Square
Tanah Rata
39000 Cameron Highlands, Pahang

bank rakyat
annual report
2015
293
susulan berpusat
selangor 1 (sbs1)
Level 3, Bangunan Bank Rakyat
Sungai Buloh Branch
Lot 101, TSB Commercial Centre
Jalan Nautika B U20/B, Seksyen U20
Sungai Buloh
40160 Shah Alam, Selangor
Tel : 03-6145 7400
Fax : 03-6145 7450

agencies unDer the


Ministry of DoMestic traDe, co-operatiVes
anD consuMerisM
MINISTRY OF DOMESTIC TRADE, INTELLECTUAL PROPERTY COMPANIES COMMISSION OF
CO-OPERATIVES, AND CONSUMERISM CORPORATION OF MALAYSIA (MYIPO) MALAYSIA (SSM)
(MDTCC) Unit 1-7, Ground Floor, Tower B Menara SSM@Sentral
13, Persiaran Boulevard, Presint 2 Menara UOA Bangsar No. 7, Jalan Stesen Sentral 5
62623 Putrajaya No. 5, Jalan Bangsar Utama 1 Kuala Lumpur Sentral
Tel : 03-8000 8000 59000 Kuala Lumpur 50623 Kuala Lumpur
Fax : 03-8882 5983 Tel : 03-2299 8400 Tel : 03-2299 4400
Hotline : 1-800-886-800 Fax : 03-2299 8989 Fax : 03-2299 4411
Hotline : 03-7721 4000
BANK RAKYAT MALAYSIA CO-OPERATIVE SOCIETIES
Menara 1, Menara Kembar Bank Rakyat COMMISSION (SKM) MALAYSIA COMPETITION COMMISSION
No. 33, Jalan Rakyat Menara Suruhanjaya Koperasi Malaysia (MYCC)
50470 Kuala Lumpur Changkat Semantan, Off Jalan Semantan Level 15, Menara SSM@Sentral
Tel : 03-2202 4500 Bukit Damansara Jalan Stesen Sentral 5
Tele-Rakyat : 1-300-88-12265 50490 Kuala Lumpur Kuala Lumpur Sentral
Tel : 03-2083 4000 50623 Kuala Lumpur
CO-OPERATIVE COLLEGE OF MALAYSIA Fax : 03-2083 4100 Tel : 03-2273 2277
(MKM) Fax : 03-2272 2293
103, Jalan Templer PERBADANAN NASIONAL BERHAD
46700 Petaling Jaya, Selangor (PNS)
Tel : 03-7964 9000 Level 13A, Menara PNS Tower 7
Fax : 03-7957 0434 Avenue 7, Bangsar South City
No. 8, Jalan Kerinchi
59200 Kuala Lumpur
Tel : 03-2082 7788
Fax : 03-2082 7789

bank rakyat
294 annual report
2015
Nurturing starts with care,
care is driven by passion,
passion is ignited by dreams.

LETS
DREAM
BIG
BANK KERJASAMA RAKYAT MALAYSIA BERHAD (Reg No. 2192)
Menara 1, Menara Kembar Bank Rakyat,
No. 33, Jalan Rakyat, 50470 Kuala Lumpur

www.bankrakyat.com.my