ANNUAL REPORT 2020

STRATEGIC
RECALIBRATION
Recalibrated Forward23+
strategy to deliver sustainable
financial returns - page 37

CONTINUED
RESILIENCE
Underlying business remains
resilient and well-capitalised
against shocks - page 40

ACCELERATING
RECOVERY
Reshaping our portfolio with
focused investments to drive
growth - page 44

Delivering Sustainable Disciplined Customer Transform Purpose-Driven

Financial Returns Execution Centricity Fundamentals Organisation
TO BE THE LEADING FOCUSED ASEAN BANK
Reducing the
Environmental
Impacts of this
Annual Report
We have taken conscious
efforts to manage and
minimise the environmental
impact of our annual report
and related processes.
The total carbon footprint
for printing CIMB Annual
However, you can make the Report 2020 was
greatest difference.
11,588kgCO2e,
compared to
Did you know that the 14,987kgCO2e for our
equivalent of one football 2019 annual report.
field of forest is cut down The carbon footprint for
the 3 books of CIMB
every second? Play your
Annual Report 2020 is
part. If you can, download 14.485kgCO2e. We are
the soft copy of CIMB’s committed to reducing the
Annual Report, Financial environmental impact of
Statements and Printed with our annual report and will
continue working to
Sustainability Report, instead eco ink reduce the amount of
of requesting for a hard copy. made from higher greenhouse gasses (GHG)
percentage of vegetable emitted throughout the
oil to reduce emission of entire designing and
volatile organic printing process.
compounds (VOCs).
Contains low levels of
chemicals, thus
less pollution
to the environment
throughout the printing
process.

View our Annual Report, Accounts and

other information about CIMB Group
Holdings Berhad at

www.cimb.com
 There is
approximately
62%
reduction Paper and printing
in paper used,
73,125 wastes are
less sheets in being
the printing and responsibly
production of CIMB handled
Annual Report 2020 to recycle and
compared to our up-cycle materials in
2019 Annual Report.
Paper sourced order to reduce the
burden on landfills.
from responsibly
managed forests
that provide
environmental benefits.
Covers are printed on
FSC® certified Mix
credit Xtella Brilliant
Printed with carbon White 300 gsm paper;
neutral press Inner pages are
machines, eco printed on
FSC® certified Mix
materials and credit Xtella Brilliant
managed under and White 128 gsm paper.
certified with
ISO 14001:2015
environmental
management system to
minimise environmental
impact.
About This Report

At CIMB Group, our R EPORTING SCOPE AND BOUNDAR IES

aspiration is to build a high This Annual Report covers our financial and non-financial performance during the
performing sustainable period 1 January 2020 to 31 December 2020.

organisation to help
advance customers and
society. Towards fulfilling
this purpose, we embrace
principles of good
governance, responsible
banking and Values-based
Intermediation. We also
Through this report, it is our sincere effort to keep our stakeholders abreast of key
developments; programmes and initiatives; market challenges and business solutions;
our achievements; mid- to long-term direction; and the overall health of operations in
2020 in various geographical markets where we operate. The report also presents rich
insights and forward-looking statements on financial position and performance in the
year ahead.
Our report is particularly relevant for our stakeholders in the ASEAN markets of
Malaysia, Indonesia, Singapore, Thailand, Brunei, Cambodia, Myanmar, Vietnam and
Laos. A range of other stakeholders across the globe will also find our report
informative.

take an inclusive approach Our financial statements are independently audited and provide in-depth and
to planning and delivering transparent disclosure of our financial performance. Unless we indicate otherwise, all
the data presented relates to the Group, which includes our banking operations and our
our growth strategies. Our subsidiaries.
efforts are always focussed
In preparing our report, we were guided by the requirements of local and international
on going beyond meeting statutory and reporting frameworks, including those of Bursa Malaysia.
immediate expectations of
our most critical
stakeholders, to deliver
N AV I G AT I O N I CO N S
shared value, which is all
about helping them shape a
better future. Our Annual S TA K E H O L D E R S

Report is a true account of Shareholders/

Employees Regulators
our performance, our ability Investors

to overcome challenges, and Customers Suppliers Communities

optimise our potential as a
purpose-driven business.
S T R AT E G I C T H E M E S
‘FutureForward’ is our
Delivering
endeavour to make Sustainable
Customer Purpose-driven
Centricity Organisation
Financial Returns
business a force for good, a
Disciplined Transform
catalyst to a better planet Execution Fundamentals
and a sustainable future.
C A P I TA L S

Financial Manufactured Social

Human Intellectual Natural

 M AT E R I A L I T Y
S TAT E M E N T O F T H E B O A R D O F D I R E C T O R S O F
All our Annual Reports present a balanced and accessible CIMB GROUP HOLDINGS BERHAD
assessment of our strategies, performance, governance, The Board acknowledges its responsibility to ensure the
sustainability and prospects. integrity of the Annual Report. In the Board’s opinion, the
report addresses all material issues and matters and fairly
The various matters and developments included in the 2020 presents the Group’s performance for the year 2020.
edition were determined by a range of considerations, such as
quantitative and qualitative criteria; issues likely to impact our Approved by the Board of Directors and signed on behalf of
ability to deploy our strategies or create shared value and sustain the Board:
financial and non-financial performance; the matters covered in
reports presented to our Board of Directors; the risks identified
by our risk management team; and the interests of our key
stakeholders. We also consider factors that affect the economic,
environmental, social and governance landscape in various
countries and regions where we conduct business.
Datuk Mohd Nasir Ahmad Dato’ Abdul Rahman
Ahmad
I N T E G R AT E D A P P R O A C H Chairman Group Chief Executive
Officer/
In documenting our reports, our attempt is to establish clear Executive Director
linkages between our business performance and various internal
and external factors or influences such as market trends,
stakeholder expectations, organisational priorities, regulatory
regime, competitive strategies, national agenda, and global best
practices. In 2020, we have also adopted various principles
prescribed by the International Integrated Reporting Council.

KEY MARKET TRENDS

Impacts of COVID-19 &
Financial Market Proliferation of
Accelerated Digital New Competitors
Trends & Fluctuations Technology
Penetration
Economic,
Geopolitical and
Shifting Policy and Environmental, Social Customers of the
Economic
Regulatory Landscape and Governance Future
Developments
(EES&G) Factors

RISKS
Non-Financial Risk:
Non-Financial Risk:
Credit Risk Shariah Non- Country Risk
Fraud Risk
Compliance Risk
Non-Financial Risk:
Liquidity & Funding
Market Risk Business Continuity Sustainability Risk
Risk
Risk

Non-Financial Risk: Non-Financial Risk: Interest Rate Risk in

Operational Risk Technology Risk The Banking Book

M AT E R I A L M AT T E R S
Sustainability
Climate Change Diversity and Inclusion Awareness and Technology
Participation
Financial Literacy,
Corporate Citizenship
Inclusion and Well- Sustainable Finance
and Volunteerism
being

Corporate Culture Governance Sustainable Supply Chain

Health, Safety and Talent Attraction, Growth

Customer Experience
Well-being and Retention
What’s Inside This Report

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Shared Value @
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No. of New Product Launches/Improvements
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Outputs
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Outputs
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Talent 3D Mix

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 9

How Do We
Create Shared Value?

FOR CIMB & # teamCIMB*

We manage our business and people with the responsibility of delivering sustainable
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K E Y D R I V E R S O F S H A R E D VA L U E HIGHLIGHTS 2020
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10 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
 How Do We Create Shared Value?

FOR CUSTOMERS & CLIENTS

We support the aspirations of our customers and clients by taking an inclusive approach to
growth. Our objective is to create net positive impact through our products and services,
positively advancing customers and making business a force for good.

W H AT M AT T E R S

Customer Centricity
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population

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KEY DRIVERS OF HIGHLIGHTS 2020

S H A R E D VA L U E
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3ROLF\7UHDWLQJ Within 72% >5 million
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Environmental and Social risks Touchpoints per Customer

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 11

How Do We Create Shared Value?

F O R S O C I E T Y & CO M M U N I T Y

We champion purposeful programmes to help communities prosper and shape a better

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environmental stewardship, we identify issues that impede socio-economic development
of communities who matter to us.

W H AT M AT T E R S

Corporate Citizenship Sustainability/Climate Change Social Inequalities

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K E Y D R I V E R S O F S H A R E D VA L U E HIGHLIGHTS 2020
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supporting 118,808
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12 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Economic Value Distributed
& Retained

DISTRIBUTED TO DISTRIBUTED TO DISTRIBUTED TO

P R O V I D E R S O F C A P I TA L THE GOVERNMENT E M P L OY E E S
(Cash Dividends to Shareholders & (Taxation & Zakat) (Personnel Costs)
Non-controlling Interests) RM’000 RM’000
RM’000

383,760
1,142,901

1,519,653

5,764,674

5,144,070
693,046

2019 2020 2019 2020 2019 2020

DISTRIBUTED TO DISTRIBUTED TO DISTRIBUTED TO

THE COMMUNIT Y SUPPLIER S/ VENDOR S REINVES T TO THE GROUP
(CSR/Community Investments) (Group Procurement) (Dividend Reinvestment Plan;
RM’000 RM’000 Depreciation & Amortisation;
Retain Earnings)
RM’000

896,192
1,200,000

4,606,672
945,000
45,800

29,300

2019 2020 2019 2020 2019 2020

D I S T R I B U T I O N O F T O TA L E C O N O M I C VA L U E
10.2%

13.6%
33.9%
58.5% 42.5%

0.3%
2020 2019
13.0%

7.0%
4.4% 0.3%
5.1% 11.2%

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Community investments LQFOXGHFRQWULEXWLRQVWRFKDULWLHV1*2VDQGUHVHDUFKLQVWLWXWHVXQUHODWHGWRWKHRUJDQLVDWLRQȇVFRPPHUFLDOUHVHDUFKDQG
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 13

 CIMB’s
Value Creation Supported by sound institutional framework
Our business model and operating processes are managed

Model conduct, sustainability and stakeholder stewardship.

INPU T S K E Y BU S INE S S A R E A S
Refer to Capital: Inputs and KPIs pages 8 & 9.

Financial
Strong balance sheet with CONSUMER COMMERCIAL WHOLESALE
invested capital and BANKING BANKING BANKING
total assets valued at ISLAMIC CIMB DIGITAL TRANSACTION
RM602.4 billion BANKING ASSETS BANKING

Refer to Business Review pages 78-89.

Manufactured
668 branches, 6,153 ATMs, M A R K E T T R E NDS
8,546 self-service customer IMPAC T ING OUR BUS INE S S
access points
Impacts of COVID-19
Proliferation of
& Accelerated Digital
Technology
Penetration
Human
~34,000 workforce across Geopolitical and Economic,
10 ASEAN countries Economic Environmental, Social
Developments and Governance
(EES&G) Factors
K E Y R E S OURCE S

Financial Market
Trends & New Competitors
Social Fluctuations
>16 million customers and
2,239 registered suppliers Shifting Policy &
Customers of the
Regulatory
Future
4,216 volunteer hours towards Landscape
community CSR programmes
Refer to Market Trends & Approaches page 49.

Intellectual M AT E R I A L M AT T E R S
Engagement and knowledge Economic Environment Social Governance
platforms such as The Cooler
Earth Sustainability Summit SUSTAINABLE ACTION CORPORATE SOCIAL
and CEO Action Network • Climate Change RESPONSIBILITY
• Health, Safety and Well-being • Corporate Citizenship
• Sustainable Supply Chain & Volunteerism
• Talent Attraction, Growth and
Retention
Natural • Diversity and Inclusion
GOVERNANCE & RISK
Five (5) sector guidelines • Governance
include environmental criteria • Corporate Culture
and RM644.9 million in SUSTAINABLE BUSINESS
• Customer Experience
• Sustainable Finance STAKEHOLDER
• Technology ENGAGEMENT &
• Financial Literacy, Inclusion & ADVOCACY
Well-being • Sustainability Awareness
and Participation

14 CIMB Group Holdings Berhad Annual Report 2020

Driven by our
values and culture A Go the extra mile to delight customers CIMB’s Value Creation Model

B Respect each other, engage openly and work together

OU T PU T S
VA LUE CR E ATED (2 02 0)

Five strategic themes of the Revised Strategic CIMB & #teamCIMB

Plan (2020-2024) in Response to the New
Normal in the Post-COVID era.

Delivering Sustainable
52.2% 2.1%
Cost to Income or Return on Equity
Financial Returns

Disciplined Execution

Customer Centricity
30%
Female Directors on
the Board
Transform Fundamentals

Purpose-driven Organisation
Refer to Group’s Forward23+
>RM1.2 billion
in Procurement Spend towards
Strategic Themes pages 52 & 53.
Suppliers/Vendors (Malaysia*)

PR IOR I T IE S IN F Y 2 0 2 0
Customers & Clients
Customers
• Customer Solutions:
Restructuring & Rescheduling
• Customer’s safety 72%
Customer
>5 million
CIMB Digital Users
Regulators Satisfaction
• Industry Leadership towards Score/NPS Score
maintaining a stable and healthy

179
Clients undergoing
~25,000
Customer to Branch
Suppliers
• Suppliers’ Safety, Well-being and Enhanced Ratio
Project Continuity Sustainability Due
Diligence

Employees Society & Community

• Risk Management/Business
Continuity
• Employee Safety & Well-being
Top 35% 8.8%
Dow Jones Reduction (YoY) in
Sustainability Index Scope 1 and Scope 2
OUR K PI s (2 02 4) (DJSI) Ranking GHG Emissions
Intensity

CIR ROE CET1 NPS

Sustainability
Rankings
RM29.3 million
Invested in Communities,
Top Top DJSI supporting 118,808
45% 13%
Quartile Quartile Top Quartile

* Majority of our suppliers are based in Malaysia, which accounts for 90% of our total Group procurement spend.
Our largest spends are in Group Technology, Group Operations, and Group Administration & Property.

CIMB Group Holdings Berhad Annual Report 2020 15

 The year 2020 was extraordinary.
The impact of the global pandemic
has been unprecedented by all
measures. While we continue to
navigate the new normal, the
future will see us growing stronger
and better. After almost a year of
uncertainty, we see new
opportunities for transformation
and resilient growth. Most
importantly, as both individuals
and businesses, we have
developed a deeper appreciation
for our responsibility as
citizens of one planet. We
have seen the spirit of
cooperation that will keep
humanity and the
purpose of businesses
alive for generations.

D AT U K M O H D N A S I R A H M A D

&KDLUPDQ

16 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Message from
The Chairman
Dear Stakeholders,
If there is one word to describe the year 2020, it would of course be
”unprecedented”. However, it was also a year of paradoxes as we
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appreciate the little wins and pleasures of life in an uncertain
environment, from the uncertainty of the pandemic’s impact to some
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lockdown situations and limited social interactions, to enriching times
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purpose in life. In short, it has been the most unsettling year where
people searched for meaning even as they focused on survival. At
CIMB, amid all the challenges, we found respite in our ability to be
part of the many solutions for our customers, employees, partners,
and communities who matter to us.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 17

Message from The Chairman
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18 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
Inaugural visit by the Minister of Finance, YB Senator Tengku Datuk Seri Utama Zafrul Tengku
Abdul Aziz, former Group CEO CIMB to Menara CIMB Kuala Lumpur, Malaysia.
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 25

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 27

A Fond Farewell...
Championing a better tomorrow
During his 6 years as Group CEO, YB Senator Tengku Datuk Seri
Utama Zafrul Tengku Abdul Aziz transformed CIMB, laying the
foundation for us to become a regionally focused, customer-
centric and sustainable organisation for the future.
banking group to support the United Nations Environment
Programme Finance Initiative in framing the Principles for
Responsible Banking, in addition to joining 29 global business
titans on the Global Investors for Sustainable Development
Alliance to free-up trillions of dollars from the private sector to
The former Group CEO/Executive Director of CIMB Group and
the current Minister of Finance Malaysia, strengthened CIMB’s
regional presence as a leading ASEAN banking group and
spearheaded its shift towards responsible banking. His
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creation for all stakeholders have helped to set the stage for
the Group’s continued success.
YB Minister was driven by his conviction in meaningful growth
for, not just the organisation, but also stakeholders along its
value chain. From expanding CIMB’s footprint into all 10 ASEAN
countries to forging partnerships to strengthening the bank’s
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opportunity during his tenure, he translated his vision for the
bank and its stakeholders into reality, often by having to
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preparing CIMB for the future.
For one, he was instrumental in positioning CIMB Group as a
driver of positive change by responding to global sustainability
issues and integrating sustainability principles into its
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Closer to home, he led CIMB through an ambitious T18
roadmap, a four-year strategic plan to shift our focus and
delivery model, as well as achieve new growth potential across
RXUEXVLQHVVHV7KHHɝFLHQWO\H[HFXWHGPLGWHUPVWUDWHJLHV
under T18 strengthened our foundations and improved our
resilience as a leading regional bank.
His contributions have been invaluable, especially in charting a
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stakeholder value. His commitment to his passions and focus
on the job at hand helped elevate CIMB’s brand, internally with
VWD΍DVZHOODVZLWKFXVWRPHUV+HHPEUDFHGDQGIRVWHUHGDQ
active #teamCIMB spirit, and reinforced leadership for action,
for change, and for a better tomorrow. He will be remembered
by his colleagues for his unique ability to drive action; his peers
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employees and partners with whom he shaped a strong
culture of leadership.
OVERVIE W OF CIMB GROUP
Key Highlights of 2020
BU S INE S S HIGHLIGH T S
We decided it was necessary to
recalibrate our existing Forward23
strategy, which had been launched in
2019, to reassess our focus, growth
priorities and value creation
opportunities in order to future-
proof our business.
The Group’s vision has been
rearticulated, from being an ASEAN-
focused bank to being a focused
ASEAN bank. We will drive growth in
segments where we have a clear and
differentiated proposition and a
competitive edge, where we will play
to win.
 efer to Group CEO’s Overview
R  efer to Group CEO’s Overview
page 37.
CUSTOMER
CENTRICIT Y
Our customers are at the heart
of everything we do. We aspire to
make banking seamless and
convenient for our customers, and
are always looking at how we can
improve to ensure we continue
meeting their current and future
needs.
2020 proved to be a litmus test for
banks and their ability to stand by
our customers and stakeholders. At
CIMB, our overriding focus in the
year was supporting customers and
their businesses to weather through
this period.
Beyond that, we also sought to
prepare them to recover through
targeted assistance programmes and
other initiatives across the Group.
 efer to Group CEO’s Overview
R  efer to Group CEO’s Overview
page 38.
30 CIMB Group Holdings Berhad Annual Report 2020
DELIVERING
S U S TA I N A B L E
FINANCIAL RETURNS
Under the Forward23+ strategic
theme of Delivering Sustainable
Financial Returns, we intend to
reshape our portfolio, drive cost
efficiency, digitise for value and will
undertake focused investments.
In order to mitigate the pandemic’s
impact on profitability, CIMB
introduced an aggressive 5% or
RM500 million cost reduction target
for 2020. This target was successfully
exceeded through stringent cost
optimisation measures and the
deferment of non-essential
expenditure.
R  efer to Group CEO’s Overview
page 37.
TR ANSFORM
F U N D A M E N TA L S
Strengthening our fundamentals
is key to ensuring operational
efficiency to support growth. We
would require an optimal capital
structure in place and an enhanced
risk management approach in order
to improve guidance on pricing and
returns.
Areas such as improving cost of
funds, enhancing interest rate risk
management and having a more
competitive transfer pricing
framework will be key priorities
under Forward23+.
R  efer to Group CEO’s Overview
page 38.
DISCIPLINED
EXECUTION
Disciplined execution amongst
#teamCIMB at all levels will be crucial
to ensuring accountability and
transparency, and ultimately the
success of Forward23+.
Multiple initiatives have been put in
place to change our performance
management approach, drive
productivity, and enhance our
operational processes to improve
overall effectiveness of project
deliveries.
R
page 38.
PURPOSE-DRIVEN
O R G A N I S AT I O N
CIMB intends to be a purpose-
driven organisation, embedding the
right values and culture that is
respectful, empowering and
collaborative in order to attract and
retain best talents. Open
engagement and teamwork will be
critical as we pivot on our collective
strength to achieve our shared
vision.
We have also embraced
sustainability as part of our DNA.
Towards that end, we held our
annual sustainability summit, The
Cooler Earth, in digital format, joined
the Private Financing Advisory
Network (PFAN), granted
Sustainability-Linked Loans (SLL) to
corporates, and launched our coal
sector financing policy where we
committed to reducing our coal
exposure to zero by 2040.
R
page 39.
 Key Highlights of 2020

FIN A NCI A L HIGHLIGH T S

O P E R AT I N G I N C O M E : T O TA L A S S E T S : T O TA L C A P I TA L R AT I O :

RM17.19 billion RM602.4 billion 17.6%

N E T P R O F I T: DEPOSITS FROM DIVIDEND
CUSTOMERS: PER SHARE:
RM1.19 billion
RM410.8 billion 4.81 sen
GROSS LOANS: ROE:

RM365.8 billion 2.1%

S TRENGTHENING GOVERNANCE
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 31

OVERVIE W OF CIMB GROUP

Our Response to COVID-19

Opportunity often comes The global COVID-19 pandemic has been an unprecedented
in disguised in the form of crisis for all of humanity and everything that we have built.
misfortune, or temporary It has been as much a test of our economic systems, as it
defeat.
has been of our vision of shaping a progressive and
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sustainable world. The existential threat to people and
communities, and the disruptions in supply chain, trade and
commerce have exposed the frailties of our modern times.
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F I N A N C I A L R E L I E F S C H E M E S , M O R AT O R I U M S ,
R E S T R U C T U R I N G & R E S C H E D U L I N G O F D E B T, C R E D I T
EX TENSIONS ETC.

RM19.43 billion SGD259.3 million

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IDR10 billion SGD329.3 million

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RM2 million CIMB’s ASEAN-Wide

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32 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Our Response to COVID-19

At CIMB across ASEAN markets, while navigating through the impacts of

COVID-19, we see a unique opportunity to build Resilience; strengthen
stakeholder Relationships & plan Recovery.

CUSTOMERS REGULATORS COMMUNITY

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OUR PEOPLE AND COMMUNITIES .

1-Year Free Online 292 Supplier RM1 million

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 33

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – S T R AT E G I C R E V I E W

Group CEO’s
Overview
Dear Stakeholders,
The world is experiencing an unprecedented crisis which began as
a global health emergency but quickly triggered an economic one.
As mandatory lockdowns were enforced globally, our ability to
remain productive became compromised as global trade, supply
chains and entire industries were disrupted. It also challenged
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business. Most importantly, it made us all appreciate the need to
plan for a future that may be threatened by various economic,
environmental and social risks. At CIMB, we persevered whilst
remaining responsive to the needs and expectations of our
stakeholders to assist them to navigate the challenges and
impacts from the pandemic. We reinforced our role as a purpose-
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business, while advancing customers and society towards a better
future.

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 Group CEO’s Overview

D AT O ’ A B D U L R A H M A N A H M A D

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 35

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 37

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – S T R AT E G I C R E V I E W

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44 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group CEO’s Overview

Our targets for FY21 are: Sermchaiwong, President and CEO of lead the Group forward. I am excited to
CIMB Thai. I would also like to thank Khun work together with you to navigate CIMB
FY21 Targets Sutee Losoponkul for stepping in as through Forward23+.
Acting President and CEO of CIMB Thai. As
we bid farewell, I am utterly grateful for I must thank the regulators who have
their past contributions, and wish them all been instrumental in overseeing our
FY21 Target
the best in their future endeavours. As business and providing guidance on
the saying goes, “Once a CIMBian, always handling the pandemic to enable us to
ROTCE 8-9%
a CIMBian.” I am certain that the assist our customers. I am also grateful to
relationships they built in CIMB will be our customers, clients, peers and
ROE 6-7% everlasting. partners for their continued trust in us,
thus enabling CIMB to create value for our
Dividend Payout At the Board level, please allow me to stakeholders. We hope you will continue
40-60%
Ratio express my sincerest gratitude to Encik supporting us in our journey ahead.
Ahmad Zulqarnain bin Che On for his
Total Loan Growth 4-5% service on the Board of CIMB Group, as Last but not least, I would like to express
well as Dato’ Zainal Abidin Putih, gratitude and appreciation to #teamCIMB.
Venkatachalam Krishnakumar and Rosnah Thank you for your continuous support in
Loan Loss Charge 80-90BPS
Dato’ Kamarul Zaman for their service on the past year, allowing me to experience
the Board of CIMB Bank Berhad. We the true #teamCIMB sprit in such a short
CET1 (CIMB Group) >12.5% cannot thank you enough for your period. I feel honoured to have been able
invaluable advice. In 2020, we also to witness firsthand your commitment
Cost to Income welcomed the appointments of Ms. and dedication in overcoming the difficult
<52%
Ratio Shulamite N K Khoo as an Independent year together. My journey with CIMB has
Director and Ms Serena Tan Mei Shwen as only just begun, and I look forward to
a Non-Independent Director on the Board working closely with each and every one
ACKNOWLEDGEMENTS of CIMB Group. Given their experience of you as we forge ahead with
and expertise, we look forward to Forward23+. Let’s embrace the challenges
First and foremost, CIMB owes benefitting from their advice and insights. ahead with optimism as we strive towards
tremendously to my predecessor, YB our vision of becoming the leading
Senator Tengku Datuk Seri Utama Zafrul I am also appreciative of the warm focused ASEAN bank.
Tengku Abdul Aziz, for his years of welcome extended to me by the Board,
leadership at the bank and invaluable especially Datuk Mohd Nasir Ahmad,
contributions in growing the business. We Chairman of CIMB Group, and Group
wish him well in his role as Malaysia’s Management. I am aware that I joined at a
Finance Minister as he navigates the particularly challenging juncture, and I
country’s economic recovery. thank them for the trust placed in me to Dato’ Abdul Rahman Ahmad
Group Chief Executive Officer
We also saw several changes to our
leadership team and our organisation
structure in order to provide better focus
and accountability in driving the strategic
priorities of Forward23+. I am confident
that they will be able to carry out their
new roles admirably, and look forward to
working closely with our leadership bench
to grow the business.

We appointed Paul Wong Chee Kin in his

new role as the President and CEO of
CIMB Thai. His extensive leadership
experience within the Group and the
banking sector will be useful in driving our
ambition to be the leading focused ASEAN
bank. I would also like to express my
gratitude to several key executives who
departed the business in 2020: Dato’
Hamidah Naziadin, Group Chief People
Bidding farewell to our former Group CEO, YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz.
Officer; Shahnaz Jammal, CEO of Group
Wholesale Banking; and Khun Adisorn

CIMB Group Holdings Berhad Annual Report 2020 45

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – S T R AT E G I C R E V I E W
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 Market Trends &
Approaches

Stakeholders/
Trends Impacting our Business Our Approach

• Strengthen our social and relationship capital by helping

Employees Suppliers Customers

credit
Impacts of COVID-19 &
•
Accelerated Digital Penetration
processes, and people Financial Human

• Consistently monitor external developments and update

our strategies accordingly
• Formulate a growth strategy which recognises that every
Geopolitical and Financial Manufactured
Economic Developments
dynamics

•
devise relevant strategies for tapping emerging
opportunities in high-potential segments such as wealth Customers
Financial Market Trends &
Fluctuations
• Assess and improve cost, credit and cash management
Financial

• Enhance policies, procedures and risk practices in line with

regulatory standards
Customers
Shifting Policy & • Closely monitor industry and regulatory developments
Regulatory Landscape worldwide
Financial

• Strengthen the resiliency of our systems

• Customers Employees
organisation
Proliferation of Technology
• Apply comprehensive data governance, including data
origination, access, use, security and privacy Human

• Adopt and implement responsible banking principles by

Customers Communities Shareholders/

• Create positive impact and contribute to EES&G Investors
Economic, Environmental,
performance in our own operations and practices
Social and Governance
(EES&G) Factors Suppliers Employees

Financial Human Natural Social

• Monitor new competitors’ developments and update our

Customers
• Build a “beyond banking” proposition for future value
New Competitors
capture to the Group by being both a participant and/or
owner of ecosystems Financial

• Embrace the Treating Customers Fairly principles

• Transform customer journeys by leveraging on digital and
introducing new ways of working Employees
Customers of the Future
• Develop personalisation as a proposition for customers
• Incorporate Net Promoter Score (NPS) as a key target Financial Manufactured
across the organisation

CIMB Group Holdings Berhad Annual Report 2020 49

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – S T R AT E G I C R E V I E W

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 51

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – S T R AT E G I C R E V I E W

Group’s
Strategic Themes

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52 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group’s Strategic Themes

VISION
To be the leading focused ASEAN bank

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 53

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Group Financial Review by

Group CFO

K H A I R U L R I FA I E

*URXS&KLHI)LQDQFLDO2ɝFHU

54 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Financial Review by Group CFO

2020 was unlike any year in recent history as the Group faced its most challenging year
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50ELOOLRQRUDQHWHDUQLQJVSHUVKDUH(36RIVHQ:HDNUHYHQXHVWKDWUHȵHFWWKH
challenging operating environment and elevated provisions meant that our key headline
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pleased to report that the Group-wide initiatives to rein in operating costs, resulted in an
improved cost-to-income ratio of 52.2%. In addition, having a robust capital management
led to the Group ending 2020 with its strongest ever capital position with a CET1 ratio of
13.3%. As such, we declared a 40% dividend payout for 2020, in line with our 40-60%
payout target, whilst meeting our shareholder’s expectations despite the unprecedented
headwinds.

THE YEAR IN REVIEW

From an operational stand point, 2020 quality was a major focus during the year, ORDQVZHUHORZHU<R<ZLWKD
was a rollercoaster. As I pointed out in my with the blanket loan moratorium in 14bps contraction in Net Interest
statement to shareholders last year, we
recognised the threat posed by the
COVID-19 outbreak and had postured
ourselves with a heightened cautious
approach towards growth, tightened risk
management and placed priority on cost
management. Although the impact and
reach of the pandemic went beyond
expectations, we believe that the Group
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prudently by providing as much support
as possible to our customers in terms of
repayment assistance, whilst growing in
selected targeted segments and markets.
In addition, we curtailed unnecessary
expenditures and invested in digital
capabilities and technology to strengthen
our competitive position. This brought
about a lower Cost-To-Income ratio (CIR)
of 52.2% for the year. While the
environment prevented us from delivering
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strengthened and we recorded a
Common Equity Tier 1 (CET1) ratio of
13.3%.
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translating to an EPS of 12.0 sen. This
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largely attributed to weaker operating
income and a material uptick in Expected
Credit Losses (ECL) during the year. While
asset growth was not a priority in 2020,
we continued to grow market share in
targeted segments, while driving non-
interest income through Treasury &
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restructuring programmes across our key
operating markets. In spite of the many
challenges faced over the year, I am happy
to report that our stronger capital
position allowed us to declare a 40%
dividend payout ratio, translating to 4.81
sen per share, with a fully-electable
Dividend Reinvestment Scheme option.
The Group’s performance for 2020 was
impacted by the pandemic, as were most
businesses worldwide. Guided by our
Forward23, and subsequently the
Forward23+ strategic plan, the Group
continued to focus on key business
segments, whilst keeping high levels of
vigilance on risk management and asset
quality. The Group continued to digitise
the business despite operational
challenges as we aim to emerge from this
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driven organisation. For comparison
purposes, we measure our performance
against the BAU numbers for 2019 which
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performance in 2020:
– The Group’s 2020 revenues were 3.4%
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50ELOOLRQLQ
– Net interest income (NII) was 0.5%
KLJKHU<R<DW50ELOOLRQRQWKH
back of a 6.6% growth in interest
earning assets, as the Group gross
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
0DUJLQV1Ζ0WRODUJHO\
attributed to the multiple OPR cuts in
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– Non-interest income (NOII) declined
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of lower fee-related income as the
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ȵRZDQGWKHDEVHQFHRIWKH50
million gain from the sale of the
equities business in 2019. We are
pleased that the underlying Treasury
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businesses maintained a strong
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– Operating expenses were 5.5% lower
<R<DW50ELOOLRQLQDVWKH
Group reined in less strategic and
non-essential expenses in view of the
slower business environment amidst
the new normal. As a result of the
positive JAW, the Group’s CIR
improved to 52.2% compared to the
BAU 53.4% in 2019.
– The Group’s ECL on loans, advances
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was across all countries and business
segments as the COVID-19 pandemic
resulted in management overlays,
macroeconomic factor adjustments as
well as Commercial and Corporate
impairments. The Group’s gross
impaired loans ratio stood at 3.6%
with the Loan Loss Charge (LLC) at
146bps for the year.
55
M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Group Financial Review by Group CFO

Ȃ 7RWDOJURVVORDQVGHFOLQHGE\<R< jurisdictions were lower for the year. lower cost of funds in 2020 from
largely attributed to the weaker 7KH0DOD\VLD&RQVXPHUORDQV strong accumulation of lower cost
economic environment over the year. expanded healthily as we continued to CASA across all businesses and
0DOD\VLDFRQWLQXHGLWVSRVLWLYH gain market share in mortgages countries, and decline in higher-cost
WUDMHFWRU\ZLWKD<R<ORDQ DQGDXWRORDQV term deposits.
growth, but Indonesia, Thailand and Indonesia Consumer loan growth was
Singapore loans declined 9.9%, 4.9% also underpinned by mortgages Ȃ 7RWDO12ΖΖGHFOLQHGE\<R<
and 3.1% respectively, as the Group (+5.9%) and auto loans (+4.4%). driven by the 24.8% contraction in
sought to recalibrate certain Commercial Banking loans were fee-related income in tandem with the
businesses and tightened risk controls ZHDNHU<R<GXHWRWKHUHFDOLEUDWLRQRI softer capital market sentiment and
over the year. Consumer Banking the business in Indonesia and ORZHUGHDOȵRZV7KHDEVHQFHRIWKH
ORDQVH[SDQGHGGXULQJWKH\HDU 7KDLODQGEXW0DOD\VLDDQG6LQJDSRUH 50PLOOLRQJDLQIURPVDOHRIWKH
while Commercial and Wholesale Commercial loans grew 6.2% and 6.3% 0DOD\VLDHTXLWLHVEXVLQHVVLQ
ORDQVZHUHDQGORZHU <R<UHVSHFWLYHO\:KROHVDOH%DQNLQJ also contributed to the weaker NOII.
loans were 5.2% lower in line with the 1HYHUWKHOHVV7UHDVXU\ 0DUNHWV
Ȃ *URXSGHSRVLWVH[SDQGHGE\<R< slower economic activity across the operations recovered strongly in 2H20
driven by the Commercial and region. after a COVID-stricken 1H20, while the
Wholesale deposits which grew 8.1% :HDOWK0DQDJHPHQWEXVLQHVVVKRZHG
and 3.8%, respectively, while Ȃ 7KH*URXSȇV1Ζ0VFRPSUHVVHGE\ strong positive traction through the
&RQVXPHUGHSRVLWVIHOO<R<7KLV ESV<R<PDLQO\FRQWULEXWHGE\WKH year.
was in line with the Group’s balance 235FXWVWRWDOOLQJESVLQ0DOD\VLD
sheet optimisation strategy as the as well as multiple interest rate cuts in – In light of the economic turmoil, it was
ample system liquidity resulted in a Indonesia, Thailand and Singapore inevitable that ECL was a focal point
focus towards lower cost CASA. As a during the year. This was despite the for the year as the Group’s total
result, the Group’s CASA ratio jumped provisions increased 298.1% to
to 41.3% as at end-2020 compared to OPERATING INCOME BREAKDOWN
34.4% in 2019. Consumer banking
&$6$JUHZE\<R<ZKLOH (RM’million) FY20 FY19 YoY
Commercial and Wholesale CASA were
19.0% and 12.8% higher respectively. Net interest income 12,725 12,659 0.5%
Liquidity remained strong with the Non interest income 4,464  (13.1%)
Loan to Deposit Ratio at 89.0%, whilst
the Liquidity Coverage Ratio stood Total Operating Income 17,189 17,796 (3.4%)
comfortably above 100% for all
banking entities.
OPERATING INCOME BY SEGMENT
– With capital adequacy remaining a
priority, particularly given the (RM’million) FY20 FY19 YoY
challenging environment, the Group’s Consumer Banking 7,422  (0.2%)
CET1 ratio ended 2020 at a record Commercial Banking 3,290 3,411 (3.5%)
high of 13.3% compared to 12.9% as at
end-2019. Wholesale Banking 4,898 4,903 (0.1%)
Corporate Banking 2,787 2,921 (4.6%)
7UHDVXU\ 0DUNHWV 1,689 1,541 9.6%
GROW TH DRIVER S Investment Banking 422 441 (4.3%)
7KH*URXSȇVȴQDQFLDOSHUIRUPDQFH &Ζ0%'LJLWDO$VVHWV *URXS)XQGLQJ 1,579 2,044 
was largely dictated by external Total Operating Income 17,189 17,796 (3.4%)
macroeconomic factors driven by the
pandemic, with suppressed operating
income, elevated ECL and provisions, PBT BY SEGMENT
partially mitigated by lower operating
FY19
expenses and a strengthened capital
base. (RM’million) FY20 BAU YoY
Consumer Banking 631 1,882 (66.5%)
– The Group maintained a conservative
stance on loan growth for the year in Commercial Banking (34) 1,621 (102.1%)
view of the less conducive Wholesale Banking 352 1,935 (81.8%)
HQYLURQPHQWZLWKLQWHQVLȴHGIRFXVRQ Corporate Banking (349)  
risk-adjusted returns and guidance
7UHDVXU\ 0DUNHWV 489 613 (20.2%)
from the recalibrated Forward23+
program. On the whole, the Group’s Investment Banking 212 45 
JURVVORDQVZHUHORZHU<R< &Ζ0%'LJLWDO$VVHWV *URXS)XQGLQJ 581 1,180 (50.8%)
SUHGRPLQDQWO\GULYHQEH0DOD\VLD
DQG&RQVXPHU/RDQV PBT 1,530 6,618 (76.9%)
while other segments and

56 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Financial Review by Group CFO

50ELOOLRQ(&/RQORDQVDGYDQFHV portfolio in Thailand and Indonesia OVERVIE W OF COUNTRY

DQGȴQDQFLQJLQFUHDVHGE\<R< DOWKRXJK0DOD\VLD&RPPHUFLDOORDQV PERFORMANCE
on the back of moratorium and loan
restructuring-related management
overlays, macroeconomic factor
adjustments, COVID-19-related
provisions as well as several
impairments of legacy Commercial
and Corporate accounts. Similarly, ECL
for other expected credit losses and
impairment allowance rose by 259.1%
<R<GXHWRSURYLVLRQVIRUERQG
holdings as well as credit value
DGMXVWPHQWVWRUHȵHFWWKHFKDQJHLQ
credit risk for derivative assets.
OVERVIE W OF BUSINESS - UNIT
PERFORMANCE
This section serves as an overview of the
performance of the Group’s business
units. Further details can be obtained
from the Business Review section of this
report.
– Consumer Banking’s underlying
operations continued to perform
respectably in spite of the weaker
economies as the business focused
on targeted products and segments.
Consumer operating income was 0.2%
ORZHU<R<ZLWK1ΖΖH[SDQGLQJRQ
WKHEDFNRIDORDQJURZWKR΍VHW
E\DFRQWUDFWLRQLQ1Ζ0LQOLQHZLWK
interest rate cuts across the region
DQGQHWPRGLȴFDWLRQORVVHV+RZHYHU
fee-based NOII declined in line with
lower consumer spending, although
wealth management performed
H[SDQGHG<R<DVZHOODVORZHU
1Ζ0RYHUWKH\HDU&RPPHUFLDO
GHSRVLWVZHUHKLJKHU<R<
underpinned by a 19.0% growth in
&$6$ZKLFKSDUWO\PLWLJDWHGWKH1Ζ0
compression from OPR cuts. NOII fell
E\<R<IURPORZHUIHHUHODWHG
trade activity and customer
transactions in line with the slower
economic activity during the year.
:KLOVWRSHUDWLQJH[SHQVHVZHUHȴUPO\
XQGHUFRQWUROWKHVLJQLȴFDQWLQFUHDVH
in loan provisions resulted in the
divisional pretax loss for 2020.
– Wholesale Banking posted a PBT of
50PLOOLRQLQDQ<R<
GHFOLQHYHUVXVWKH50ELOOLRQLQ
2019, predominantly due to the
elevated loan and bond provisions
from legacy accounts as well as those
impacted by the economic fallout of
the COVID-19 pandemic. Wholesale
LQFRPHZDVȵDWDV1ΖΖLPSURYHG
despite a 5.2% contraction in
corporate loans due to increase in
interest earning assets. Whilst
7UHDVXU\ 0DUNHWVLQFRPHLPSURYHG
over the year, the lower fee-based
transactions brought about the
weaker NOII. Overhead expenses
ZHUHORZHU<R<EULQJLQJDERXWD
divisional PPOP improvement of 10.0%
in 2020. However, the sharply higher
ECL and bond provisions translated to
WKHORZHU<R<3%7
Ȃ &Ζ0%'LJLWDO$VVHWV *URXS)XQGLQJȇV
The Group has presence in all 10 ASEAN
countries and our approach under the
recalibrated Forward23+ strategy puts an
emphasis on being focussed on our
strength in each market. The adage of not
needing to be everything to everybody
rings true. The Group will reinforce its
SRVLWLRQLQ0DOD\VLDDQGIRFXVRQJURZLQJ
WKH&RQVXPHUDQG60(VHJPHQWLQ
Indonesia, while realigning the
Commercial and Corporate businesses.
7KHIRFXVZLOOEHRQWKH&RQVXPHUȴQDQFH
and wealth management business in
Thailand as we exit the Commercial
business. Singapore will streamline its
present trajectory, while Cambodia’s
strong performance is expected to
continue. The Philippines and Vietnam will
continue to be incubated via partnerships
and are expected to contribute positively
in the near future.
The following section provides an
overview of the Group’s performance by
country:
Ȃ 0DOD\VLDUHPDLQHGWKHSULQFLSDOSURȴW
contributor to the Group. However, the
country performance was inevitably
LPSDFWHGE\WKHH΍HFWVRIWKH
pandemic as its PBT declined by 62.9%
<R<WR50ELOOLRQIURP50
ELOOLRQLQ0DOD\VLDJURVVORDQV
JUHZE\<R<XQGHUSLQQHGE\WKH
Consumer and Commercial segments,
which grew 4.3% and 6.2% respectively.
'HSRVLWVURVH<R<EXWODUJHO\GXH
strongly through the year. Operating &'$)3%7GHFOLQHGE\<R<WR WRWKH<R<H[SDQVLRQLQ&$6$
H[SHQVHVZHUHORZHU<R< 50PLOOLRQFRPSDUHGWR50 which partially mitigated the impact of
EULQJLQJDERXWD<R< billion previously. Operating income WKH235FXWVRQ1Ζ0V(&/IURPORDQV
improvement in divisional Pre- ZDVORZHU<R<GXHWRWKH and bonds increased substantially over
3URYLVLRQ2SHUDWLQJ3URȴW3323
+RZHYHU(&/ZDVVLJQLȴFDQWO\KLJKHU
(+134.0%) in 2020 owing to
moratorium-related management
overlays and macroeconomic factor
adjustments. As a result, the
&RQVXPHU3%7FDPHLQDW50
PLOOLRQIRUD<R<GHFOLQH
FRPSDUHGWRWKH50ELOOLRQLQ
2019.
Ȃ &RPPHUFLDO%DQNLQJKDGDGLɝFXOW
year as its performance was impacted
by sizeable legacy provisions in
addition to the challenges brought
about by the pandemic. These factors
contributed to the 2020 pretax loss of
50PLOOLRQFRPSDUHGWRD3%7RI
50ELOOLRQLQ2SHUDWLQJ
LQFRPHZDVORZHU<R<RQWKH
EDFNRIDFRQWUDFWLRQLQJURVV
loans, in line with the reshaping of its
PDUNHGO\ORZHU1ΖΖIURPWKHȴ[HG
income portfolio which was impacted
by the 4 OPR cuts totalling 125bps
during the year. The digital operations
remain on track in its expansion
mode, as TnG Digital reinforced its
position as the leading e-wallet in
0DOD\VLDZLWKPLOOLRQUHJLVWHUHG
users and 293,000 merchants as at
HQG&Ζ0%3KLOLSSLQHVKDV
accumulated 3.1 million customers in
only its second full year of operations.
The Group’s 40% interest in the asset
management business maintained a
positive growth trend despite the
pandemic with Assets Under
0DQDJHPHQWULVLQJ<R<)RU
2020, CDAF operating expenses were
3.0% lower due to constrained
expenditure given the slower
economic activity arising from
lockdowns during the year.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
the year owing to pandemic-related
PRGLȴFDWLRQORVVHVDQGPDQDJHPHQW
overlays, as well as COVID-related
LPSDFWRQVSHFLȴFFRUSRUDWHDFFRXQWV
Ȃ ΖQGRQHVLD3%7ZDVORZHU<R<DW
50PLOOLRQGXHWRWKHLQFUHDVHG
corporate provisions as well as
macroeconomic factor adjustments and
management overlays. The weaker
Indonesian economy translated to the
softer asset position as gross loans
FRQWUDFWHGE\<R<ZLWK&RQVXPHU
loans growing 1.8% but Commercial and
Corporate loans declining by 16.9% and
11.9% respectively, partially in tandem
with the Forward23+ recalibration
VWUDWHJ\1Ζ0VVKUXQNE\ESVWR
4.88% for 2020 as the rapid interest
rate cuts over the year impacted
lending yields. Operating expenses
57
M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Group Financial Review by Group CFO

OPERATING INCOME, PBT AND TAX BY COUNTRY

2020 2019

Operating Current Taxation Operating Current Taxation

The Group (RM’million) Income PBT year tax paid Income PBT year tax paid

0DOD\VLD 9,087 1,657 (564) (1,005)  3,925  (1,285)

Indonesia 4,739 761 (208) (185)  960  (363)
Singapore 1,106 (979) (2) (55) 1,316 490 (52) (31)
Thailand 1,921 172 (40) (44) 2,029 452  (51)
Other countries 336 (81) (35) (27) 415 148 (25) (18)

17,189 1,530 (849) (1,316)    

UHPDLQHGXQGHUFRQWUROZLWK&Ζ0%
Niaga’s CIR improving to 48.9% from Loans by country as at Deposits by country as at
49.1% previously. b'HFHPEHU b'HFHPEHU
– Despite turning around its operations in
Others Others
7KDLODQGIHOWWKHH΍HFWVRIWKH Singapore
e 6
6% Singapore
e %
2%
pandemic equally hard as its PBT fell %
8% Malaysia
M %
10% Malaysia
M
<R<WR50PLOOLRQ&Ζ0%7KDLȇV 62%
6 67%
67
Thailand
d
operating income was impacted by the
9%
% Thailand
<R<GHFOLQHLQJURVVORDQVDQG
ESVFRQWUDFWLRQLQ1Ζ0LQWDQGHP 6%
31 Dec 20# 31 Dec 20
with interest rate cuts. NOII was
similarly impacted by lower capital RM365.8 RM410.8
market activity and weaker consumer billion Indonesia billion
Indonesia
ia
sentiment. Cost management remained 15% 15%
ZLWKLQFRQWUROJLYHQWKH<R<
reduction in overhead expenses, but
the 60.0% increase in ECL from
management overlays and
macroeconomic factor adjustments,
dampened the 2020 PBT. Loan growth YoY Deposits Growth YoY
– Singapore posted a pretax loss of 0DOD\VLD 2.9% 0DOD\VLD 2.6%
50PLOOLRQLQFRPSDUHGWRWKH
50PLOOLRQ3%7LQDVLWZDV Indonesia ^ (9.9%) Indonesia ^ 6.0%
materially impacted by legacy Thailand ^ (4.9%) Thailand ^ (2.6%)
Commercial and Corporate loans in Singapore ^ (3.1%) Singapore ^ 2.1%
addition to COVID-19-related provisions Others* 13.2% Others* 15.6%
during the year. Singapore gross loans
Group (1.0%) Group 2.3%
GHFOLQHGE\<R<DWWULEXWHGWRWKH
softer economic environment. However,
the 2.1% growth in deposits was largely Notes:
XQGHUSLQQHGE\D<R<H[SDQVLRQ ^ In local currency
# Based on geographical location of counterparty
in CASA.
* Including Labuan, London, Cambodia, Vietnam, Hong Kong & Shanghai

FINANCIAL POSITION

– With capital management amongst the
WRSȴQDQFLDOSULRULW\WKH*URXSIXUWKHU
strengthened its capital position with a
CET1 ratio of 13.3% as at end-2020,
UHSUHVHQWLQJDESV<R<LQFUHDVHIURP
the 12.9% in 2019. The Group declared
a single interim dividend payout of
40.0% for the year with a fully-electable
DRS option.
– As highlighted over recent years, capital
DGHTXDF\DQGHɝFLHQF\UHPDLQVD
pertinent focal point both for regulatory
and operational requirements. The
Group remains well on track to achieve
its Forward23+ strategic plan target of
maintain the CET1 at 13.0% as at 2024.
The Group will continue to strategically
manage its capital via: (i) RAROC driven
capital deployment, (ii) evaluation of
options within the dividend
reinvestment scheme, (iii) continued
prudent liability management, (iv)
RWA-optimisation exercises and (v)
situational and opportunistic
divestments.

58 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Financial Review by Group CFO

– The Liquidity Coverage Ratio and Net
Stable Funding Ratios remains
comfortably above target levels and
regulatory requirement, with high
quality liquid assets recording
improvement in yields.
guides in the foreseeable future,
aligning well with the Group’s
Forward23+ direction.
B) CUSTOMER CENTRICIT Y
 :HȴUPO\EHOLHYHWKDW&XVWRPHU
GOING FORWARD
:HH[SHFWRXUȴQDQFLDO
performance to be stronger in line with
the hope that widespread vaccination will
drive economic recovery globally. While
WKHȴQDQFLDOSHUIRUPDQFHZDV
– The strategic plans laid out within
)RUZDUGDUHȴUPO\IRFXVVHGRQ
driving RAROC-driven returns, which will
determine the Group’s capital
deployment over the coming 4 years.
Optimal utilisation of capital for
LGHQWLȴHGJURZWKVHJPHQWVDQG
businesses across the region are
expected to bring about superior
returns on capital and subsequently,
drive the Group’s ROE within the
Forward23+ timeframe.
RETURNS TO SHAREHOLDERS
The Board approved and declared total
GLYLGHQGVDPRXQWLQJWR50PLOOLRQRU
4.81 sen per share to be distributed to
VKDUHKROGHUVIRU)<7KHVLQJOHLQWHULP
dividend of 4.81 per share is to be paid by
0D\ZLWKDIXOO\HOHFWDEOH'56
option. The dividends translated to a
payout ratio of 40.0%, on the Group’s
)<QHWSURȴW
NON - FINANCIAL ME A SURES OF
PERFORMANCE
1RQȴQDQFLDOPHDVXUHVUHPDLQUHOHYDQW
components in evaluating the success of
our initiatives towards achieving our
strategic goals. Some of these key
measures include:
A) S U S TA I N A B I L I T Y
The Group is ensuring that
Sustainability is at the heart of
everything that we do, as economic,
environmental, social and
governance (EES&G) factors are now
core to the Group’s strategic
direction and risk evaluations. One
of the major developments in 2020
was the launch of the Group Coal
Sector Guide which outlines the
SODQVWRUHPRYHFRDOȴQDQFLQJIURP
WKHSRUWIROLRE\$VWKHȴUVW
0DOD\VLDQȴQDQFLDOLQVWLWXWLRQWR
make such a declaration, we have
positioned ourselves at the forefront
of the sustainability agenda, which
VKRXOGKROG&Ζ0%*URXSLQJRRG
stead going forward. We have
intentions to launch other sector
([SHULHQFH&;LVDGL΍HUHQWLDWRULQ
ȴQDQFLDOVHUYLFHVDQGKDYHGRXEOHG
down on our Customer Centricity
program within the Forward23+
strategic plan. The transformation of
prioritised customer journeys
coupled with enhanced digitisation
to reinforce system reliability and to
achieve market-leading turnaround
times, are projected to lead the
Group to top-quartile Net Promoter
Scores (NPS) moving forward. CX is
essential in retaining customer
loyalty, minimise reputation risk,
mitigates risk and allows for
improved propensity of product
cross-selling and increasing market
share.
C) CO M P L I A N C E
 7KHVLJQLȴFDQFHRIFRPSOLDQFH
continues to rise each year, even
more so after a year like 2020. The
Group has ingrained the compliance
culture across the organisation,
particularly across the pertinent
lines of defence. Forward23+ seeks
to further streamline the corporate
structure, Board of Directors and
management committees, with
emphasis on reporting automation
to minimise errors, improve
reporting and operational
HɝFLHQFLHVDQGWRUDLVHWKH
governance bar higher. A wide range
RIYLUWXDOVWD΍WUDLQLQJSURJUDPVKDG
been conducted and will be lined up
going forward to entrench the
importance of compliance and
governance.
D) P E O P L E A N D C U LT U R E
As a purpose-driven organisation,
&Ζ0%*URXSSODFHVFRQVLGHUDEOH
emphasis on values and culture. The
Ȋ&Ζ0%&XOWXUHȋLVEDVHGRQD
combination of trust, performance
and integrity, which has created solid
bonds within the organisation. This
not only develops the Group’s
human capital but plays a crucial role
LQVWD΍SURGXFWLYLW\DQGMRE
satisfaction. The development of the
HR Blueprint under Forward23+
aims to reinforce this initiative over
the coming years, particularly under
the new normal.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
disappointing, we believe that the Group
has strengthened its fundamentals,
internal infrastructure and is in a stronger
position to navigate a less predictable
future. Our strategic direction will be
guided by the revamped Forward23+ as
we streamline the regional portfolio,
continue to invest in technology and
digital capabilities, realign our strategic
investments and ensure decisive
execution to drive higher RAROC and ROE
for the Group and shareholders. At the
same time, we continue to keep our
customers as our utmost priority and
making progress on the sustainability
front.
That said, we remain cognisant that the
pandemic remains a real threat and that
economies are not yet out of the woods.
We will continue to be cautious to our
approach to growth. As we continue to
play our role to assist vulnerable
segments and customers, our risk
management and asset quality monitoring
initiatives will have to remain alert and
responsive. Growth need not necessarily
be asset-driven but will be sought in
above-average RAROC segments. Cost
management will be a primary focal point,
as we transform our fundamentals,
culture and values, towards a more
HɝFLHQWDQGUHWXUQGULYHQRUJDQLVDWLRQ
0DQDJHPHQWH[SHFWVDQLPSURYHG
performance in 2021 and have set
UHODWLYHO\SUXGHQWȴQDQFLDOWDUJHWVIRUWKH
year ahead, namely: an ROE of between
5HWXUQRQ7DQJLEOH&RPPRQ(TXLW\
(ROTCE) of 8-9%, a CET1 ratio of over
&Ζ5RIEHORZDQGDQ//&RI
between 80-90bps. This will be
underpinned by a projected loan growth
of between 4-5% and we aim to maintain
the dividend payout ratio within the
40-60% range.
I wish you and your families the best of
health in 2021 and beyond, as we look
forward to a brighter future together.
59
M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Five-Year Group
Financial Summary

365,844,401

401,839,559
323,719,559

324,218,054

346,290,529

369,491,503

338,530,629

356,994,529

379,671,991

401,636,021
2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
GROSS LOANS DEPOSITS FROM CUSTOMERS^
50ȇ 50ȇ
11.4

20.0

25.0

25.0

26.0
2.1

4.8
8.3

9.6

8.5

2016 2017 2018 2019 2020 2016 2017 2018 2019 2020
ROE DIVIDEND PER SHARE
(%) (Sen)

^ Include investment accounts of

18.6
16.7

17.8

19.0

19.4

customers and structured

LQYHVWPHQWVFODVVLȴHGDVȴQDQFLDO
2016 2017 2018 2019 2020 liabilities designated at fair value
WKURXJKSURȴWRUORVVDQGRWKHU
TOTAL CAPITAL RATIO (CIMB BANK) # liabilities
(%) # Before deducting proposed
dividend

60 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Five-Year Group
Financial Highlights

Financial Year Ended 31 December

2020 2019 2018 2017 2016
Key Highlights RM’000 RM’000 RM’000 RM’000 RM’000
Consolidated Statement of Income
Operating income 17,189,003    16,065,255
Overheads 8,976,794  8,655,821  8,651,690
3URȴWEHIRUHH[SHFWHGFUHGLWORVVHV 8,212,209   8,492,921 
Expected credit losses on loans, advances and
ȴQDQFLQJ 5,342,209  1,432,661  2,408,883
3URȴWEHIRUHWD[DWLRQDQG]DNDW 1,530,329   6,109,985 4,884,144
1HWSURȴWIRUWKHȴQDQFLDO\HDU 1,194,424 4,559,656 5,583,510  3,564,190
Consolidated Statement of Financial Position
*URVVORDQVDGYDQFHVDQGȴQDQFLQJ 365,844,401 369,491,503 346,290,529 324,218,054 
Total assets 602,354,899  534,089,043 506,499,532 
Deposits from customers^ 410,839,559 401,681,309  356,994,529 338,530,629
Total liabilities 545,180,777    
Shareholders’ funds 55,925,641    
Commitments and contingencies 1,123,995,768 1,146,023,486 1,129,138,654  
Financial Ratios (%)
&RPPRQHTXLW\WLHUUDWLR&Ζ0%*URXS # 13.3 13.3 n/a n/a n/a
7LHUUDWLR&Ζ0%*URXS # 14.6 14.4 n/a n/a n/a
7RWDOFDSLWDOUDWLR&Ζ0%*URXS # 17.6  n/a n/a n/a
&RPPRQHTXLW\WLHUUDWLR&Ζ0%%DQN # 13.1 13.8 12.9 12.9 12.1
7LHUUDWLR&Ζ0%%DQN # 14.8 15.2 14.3 14.3 13.6
7RWDOFDSLWDOUDWLR&Ζ0%%DQN # 18.6 19.4 19.0  
Return on average equity 2.1 8.5 11.4 9.6 8.3
Return on average total assets 0.20 0.82  0.90 
Net interest margin 2.32 2.46 2.50 2.63 2.63
Cost to income ratio 52.2 55.5 49.8 51.8 53.9
Gross impaired loans to gross loans 3.6 3.1 2.9 3.4 3.3
Allowance coverage ratio 91.6  91.0  
Loan loss charge 1.46 0.44 0.41 0.69 
Loan deposit ratio 89.0 92.0 91.2 90.8 95.6
1HWWDQJLEOHDVVHWVSHUVKDUH50 4.65  4.39 4.14 3.92
%RRNYDOXHSHUVKDUH50 5.64   5.23 5.11
CASA ratio 41.3 34.4  35.0 
Other Information
Earnings per share (sen)
– basic 12.0   49.6 41.0
Dividend per share (sen) 4.8 26.0 25.0 25.0 20.0
Dividend payout ratio (%) 40 56 42 51 49
Number of shares in issue (’000)* 9,922,966 9,922,966 9,564,455  8,868,384
Weighted average number of shares in issue (’000) 9,922,966  9,356,695 9,016,943 8,689,362
Non Financial Highlights
6KDUHSULFHDW\HDUHQG50 4.30 5.15  6.54 4.51
Number of employees~ 34,183 35,265 36,104  38,952

A ΖQFOXGHLQYHVWPHQWDFFRXQWVRIFXVWRPHUVDQGVWUXFWXUHGLQYHVWPHQWVFODVVLȴHGDVȴQDQFLDOOLDELOLWLHVGHVLJQDWHGDWIDLUYDOXHWKURXJKSURȴWRUORVVDQG
other liabilities
# Before deducting proposed dividend
* Excludes 4,908 ordinary shares held as treasury shares
~ Excludes headcount borne by third parties

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 61

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Simplified Group Statement of

Financial Position

ASSETS

7.8% 8.3% 6.6% 9.0%

0.7% 2.0%

24.4% 19.5%

2020 2019

58.8% 62.9%

Cash and short term funds,  3RUWIROLRRIȴQDQFLDO Statutory deposits with Other assets (including
reversed repurchase investments central banks intangible assets)
agreements and deposits
and placements with banks Loans, advances and
DQGRWKHUȴQDQFLDO ȴQDQFLQJ
institutions

EQUIT Y AND LIABILITIES

0.1% 0.1%
5.0% 0.2% 5.3% 0.2%
4.3% 4.5%

5.9% 7.4%

66.8% 68.4%
12.0% 9.4%

2020 2019
4.1%
5.3%
0.6%
0.4%

Deposits from customers
Investment accounts of
customers
Deposits and placements of
EDQNVDQGRWKHUȴQDQFLDO
institutions
Bills and acceptances
payable and other liabilities
Debt securities issued and
other borrowed funds
Ordinary share capital
Reserves
Perpetual preference shares
Non-controlling interests

62 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Quarterly Financial
Performance

2020

RM’000 Q1 Q2 Q3 Q4

Operating revenue 4,143,029 3,865,322 4,464,614 4,716,038

1HWLQWHUHVWLQFRPHDIWHUPRGLȴFDWLRQORVV 2,572,785 2,480,079 2,547,090 2,619,022

Net non-interest income and income from

Islamic banking operation 1,570,244 1,385,243 1,917,524 2,097,016

Overheads (2,318,450) (2,124,448) (2,204,973) (2,328,923)

3URȴWEHIRUHWD[DWLRQDQG]DNDW 713,964 196,385 453,998 165,982

1HWSURȴWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW 507,925 277,079 194,444 214,976

Earning per share (sen) 5.12 2.79 1.96 2.17

Dividend per share (sen) – – – 4.81

2019

RM’000 Q1 Q2 Q3 Q4

Operating revenue 4,166,146 4,468,851 4,638,445 

Net interest income 2,461,543   

Net non-interest income and income from

Islamic banking operation    1,844,583

Overheads (2,302,416) (2,293,626)  

3URȴWEHIRUHWD[DWLRQDQG]DNDW 1,603,126 1,955,829 1,336,883 

1HWSURȴWDWWULEXWDEOHWRRZQHUVRIWKH3DUHQW 1,192,042 1,508,625 1,010,348 848,641

Earning per share (sen) 12.46 15.60 10.36 8.56

Dividend per share (sen) – 14.00 – 12.00

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 63

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Key Interest Bearing

Assets and Liabilities

Financial Year Ended 31 December 2020

Interest
As at (΍HFWLYH income/
31 December interest rate expense
RM’million % RM’million

Interest earning assets:

Cash and short-term funds & deposits and placements with banks and
RWKHUȴQDQFLDOLQVWLWXWLRQV 43,126 1.52 743

)LQDQFLDOLQYHVWPHQWVDWIDLUYDOXHWKURXJKSURȴWRUORVV 42,713 1.82 767

Debt instruments at fair value through other comprehensive income 47,726 3.42 1,348

Debt Instruments at amortised cost 56,128 3.83 1,922

/RDQVDGYDQFHVDQGȴQDQFLQJ 353,916 5.03 17,932

Interest bearing liabilities:

Total deposits* 447,458 1.88 8,439

Bonds, Sukuk, debentures and other borrowings 22,870 2.72 685

Subordinated oligations 12,809 4.12 600

Financial Year Ended 31 December 2019

Interest
As at (΍HFWLYH income/
31 December interest rate expense
RM’million % RM’million

Interest earning assets:

Cash and short-term funds & deposits and placements with banks and
RWKHUȴQDQFLDOLQVWLWXWLRQV 42,564 2.39 1,111

)LQDQFLDOLQYHVWPHQWVDWIDLUYDOXHWKURXJKSURȴWRUORVV   1,068

Debt instruments at fair value through other comprehensive income 33,318 3.63 

Debt instruments at amortised cost 39,833 4.40 

/RDQVDGYDQFHVDQGȴQDQFLQJ 360,340 5.88 

Interest bearing liabilities:

Total deposits* 429,482  

Bonds, Sukuk, debentures and other borrowings 28,691  925

Subordinated oligations 13,521 5.33 

 7RWDOGHSRVLWVLQFOXGHGHSRVLWVIURPFXVWRPHUVLQYHVWPHQWDFFRXQWVRIFXVWRPHUVGHSRVLWVDQGSODFHPHQWVRIEDQNVDQGRWKHUȴQDQFLDOLQVWLWXWLRQVȴQDQFLDO
OLDELOLWLHVGHVLJQDWHGDWIDLUYDOXHWKURXJKSURȴWRUORVVDQGVWUXFWXUHGGHSRVLWV

64 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Value Added
Statements
2020 2019
RM’000 RM’000

Value added
Net interest income (before modification loss) 10,440,041 10,083,918
0RGLILFDWLRQ ORVV (221,065) –
Net interest income (after modification loss) 10,218,976 10,083,918
Income from Islamic banking operations 2,937,513 3,040,663
Net non-interest income 4,032,514 
Overheads excluding personnel costs, depreciation, payments to community and suppliers/vendors (1,710,900) 
Expected credit losses on loans, advances and financing (5,342,209) 
Expected credit losses (made)/written back for commitments and contingencies (191,520) 12,019
Other expected credit losses and impairment allowances made (1,264,646) (352,018)
Share of results of joint ventures 118,834 31,401
Share of results of associates (2,339) 
9DOXH DGGHG DYDLODEOH IRU GLVWULEXWLRQ 8,796,223 

Distribution of Value Added

To employees:
Personnel costs 5,144,070 
7R WKH *RYHUQPHQW
Taxation and zakat 383,760 1,519,653
7R SURYLGHUV RI FDSLWDO
Cash dividends paid to shareholders 1,190,756 
Non-controlling interests (47,855) (104,469)
To the community1:
Community investments 29,300 45,800
7R WKH VXSSOLHUVYHQGRUV2:
6XSSOLHUV9HQGRUV 0DOD\VLD  1,200,000 945,000
7R UHLQYHVW WR WKH *URXS
Dividend reinvestment plan – 
Depreciation and amortisation 892,524 844,531
Retained earnings 3,668 2,050,082
9DOXH DGGHG DYDLODEOH IRU GLVWULEXWLRQ 8,796,223 

10.2%

13.6%
33.9%
58.5% 42.5%

0.3%
2020 2019
13.0%

7.0%
4.4% 0.3%
5.1% 11.2%

Ʉ7R HPSOR\HHV Ʉ7R SURYLGHUV RI FDSLWDO Ʉ7R WKH VXSSOLHUVYHQGRUV2

Ʉ7R WKH *RYHUQPHQW Ʉ7R WKH FRPPXQLW\1 Ʉ7R UHLQYHVW WR WKH *URXS

1
Community investments include contributions to charities, NGOs and research institutes (unrelated to the organisation’s commercial research and
GHYHORSPHQW IXQGV WR VXSSRUW FRPPXQLW\ LQIUDVWUXFWXUH VXFK DV UHFUHDWLRQDO IDFLOLWLHV DQG GLUHFW FRVWV RI GHYHORSLQJ DQG LPSOHPHQWLQJ VRFLDO DQG
HQYLURQPHQWDO SURJUDPPHV LQFOXGLQJ DUWV DQG HGXFDWLRQDO HYHQWV Ȃ DOO FKDQQHOOHG WKURXJK &Ζ0% )RXQGDWLRQ DV ZHOO DV UHVSHFWLYH EXVLQHVV XQLWV
2
Suppliers/Vendors include payment made towards products or services or investments in any supplier education or development programmes.
 0DMRULW\ RI RXU VXSSOLHUV DUH EDVHG LQ 0DOD\VLD ZKLFK DFFRXQWV IRU  RI RXU WRWDO *URXS SURFXUHPHQW VSHQG 2XU ODUJHVW VSHQGV DUH LQ *URXS
Technology, Group Operations, and Group Administration & Property.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 65

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Capital
Management

OVERVIE W

&DSLWDOPDQDJHPHQWDW&Ζ0%*URXSȊ*URXSȋUHPDLQVIRFXVHGRQPDLQWDLQLQJDKHDOWK\FDSLWDOSRVLWLRQWKURXJKEXLOGLQJDQHɝFLHQW

capital structure. The capital position and structure of the Group are designed to meet the requirements of the Group’s key
FRQVWLWXHQFLHVLHVKDUHKROGHUVFXVWRPHUVUHJXODWRUVH[WHUQDOUDWLQJDJHQFLHVDQGRWKHUV*XLGHGE\&Ζ0%*URXSȇV&DSLWDO
0DQDJHPHQW3ROLF\DQG3URFHGXUHWKHREMHFWLYHVRIFDSLWDOPDQDJHPHQWDUHDVIROORZV
 7RPDLQWDLQDVWURQJDQGHɝFLHQW
capital base for the Group and its
entities to (a) meet regulatory
FDSLWDOUHTXLUHPHQWVDWDOOWLPHV
(b) realise returns for
shareholders through
 7RDOORFDWHFDSLWDOHɝFLHQWO\
across the business units and
subsidiaries to (a) support the
organic growth generation (b)
take advantage of strategic
acquisitions and new businesses
(3) To maintain capital at optimal levels to meet
the requirements of other stakeholders of
the Group, including rating agencies and
customers through (a) liability management
(b) dividend reinvestment scheme (c)
deployment of capital based on risk-
sustainable return on equity and ZKHQRSSRUWXQLWLHVDULVHDQGF adjusted return on capital (RAROC)
VWDEOHGLYLGHQGSD\RXWDQGF optimise the return on capital for performance measurement (d) risk-
withstand stressed economic the Group. weighted assets (RWA) optimisation exercise
and market conditions. and exploring strategic divestments, if any.
7KH*URXSȇVUHJXODWHGEDQNLQJHQWLWLHVKDYHDOZD\VPDLQWDLQHGDVHWRILQWHUQDOFDSLWDOWDUJHWVZKLFKSURYLGHDVWURQJEX΍HUDERYHWKH
minimum regulatory requirements. The following table shows the relevant capital ratios of each of the regulated banking entities of the
Group in comparison to the minimum level required by the respective central banks under the Basel III framework.

Common Equity Tier 1 Capital Tier 1 Capital Total Capital

As at Minimum As at Minimum As at Minimum
31 December Regulatory 31 December Regulatory 31 December Regulatory
Capital Ratios 2020 Ratio 2020 Ratio 2020 Ratio
&Ζ0%*URXS   14.49% 8.50%  10.50%
&Ζ0%%DQN 13.13%   8.50% 18.56% 10.50%
&Ζ0%ΖVODPLF 13.31%  14.10% 8.50%  10.50%
&Ζ0%ΖQYHVWPHQW%DQN*URXS 83.18%  83.18% 8.50% 83.18% 10.50%
&Ζ0%1LDJD 20.12% 10.00% 20.12% 11.50% 21.24% 13.50%
&Ζ0%7KDL 14.94%  14.94% 8.50%  11.00%
 ΖQFOXVLYHRIULVNSURȴOHQRDQGFDSLWDOVXUFKDUJHEX΍HU

K E Y I N I T I AT I V E S single tier dividend will be payable by April 2021 and will consist
of an electable portion of 4.81 sen per ordinary share which
Our goal is to continuously build capital towards the full shareholders can elect to reinvest in new ordinary shares in
implementation of Basel III requirements, whilst optimising its accordance with the DRS.
use fully. Tools that are employed to achieve this include but not
limited to the following:
(1) liability management via redemption of non-Basel III DIVIDEND REINVESTMENT SCHEME
FRPSOLDQWLQVWUXPHQWVDQGLVVXDQFHRIQHZ%DVHOΖΖΖ
LQVWUXPHQWV The DRS was implemented in 2013 to provide shareholders with
 GLYLGHQGUHLQYHVWPHQWVFKHPH'56 DQRSWLRQWRUHLQYHVWGLYLGHQGVLQWRQHZRUGLQDU\VKDUHVRI&Ζ0%
 5:$RSWLPLVDWLRQDQG
(4) Group-wide stress testing and impact assessment.
Key capital management initiatives that were undertaken during
the 2020 calendar year include:
and at the same time to help preserve the Group’s capital. It was
ȴUVWDSSOLHGWRWKH*URXSȇVVHFRQGLQWHULPGLYLGHQGIRUWKH
ȴQDQFLDO\HDUHQGHG'HFHPEHU7KHGLYLGHQG
reinvestment rate has been encouraging, with an average rate of
DSSUR[LPDWHO\VLQFHLQFHSWLRQ
 &Ζ0%*URXSLVVXHG50PLOOLRQ%DVHOΖΖΖ$7&DSLWDO
6HFXULWLHVRQ'HFHPEHUDQG50ELOOLRQ%DVHOΖΖΖ7 9.5%
49.5% 51.0
51.0% 50.8%*
0.8% 50.9%**
.9%
Subordinated Debt on 12 November 2020. 41.9%
1.9% 40.0%
0.0%
(2) The continuing RWA optimisation initiatives during the year,
largely through active loan portfolio rebalancing, system
and data enhancements and model recalibrations.
14.00

20.00

25.00

25.00

26.00

4.81

DIVIDEND POLIC Y 2015

015 2016
016 2017
017 2018
018 2019 2020

)RUWKHȴQDQFLDO\HDUHQGHG'HFHPEHUDQLQWHULPVLQJOH Total Payout Ratio

tier dividend of 4.81 sen per ordinary share, on 9,922,966,350
RUGLQDU\VKDUHVDPRXQWLQJWR50ZDVDSSURYHGE\  3D\RXWUDWLREDVHGRQ3$7H[FOXGLQJ&3$0DQG&3Ζ$0JDLQRI50PLOOLRQ
WKH%RDUGRI'LUHFWRUVDQG%DQN1HJDUD0DOD\VLD7KHLQWHULP ** Payout ratio based on BAU PAT excluding transformational cost.

66 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Credit
Ratings

Ʉ & Ζ 0 % % $ 1 . % ( 5 + $ '

Rating
Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook

0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Foreign Currency Bank Deposits Rating A3

6HUYLFH0RRG\ȇV 2. Short-term Foreign Currency Bank Deposits Rating P-2
3. Long-term Domestic Currency Bank Deposits Rating A3
4. Short-term Domestic Currency Bank Deposits P-2
Rating A3
Stable
5. Senior Unsecured Notes (P)A3
 86'ELOOLRQ0XOWL&XUUHQF\(XUR0HGLXP7HUP
Notes Programme (P)A3/(P)Ba1
 86'ELOOLRQ(XUR0HGLXP7HUP1RWH3URJUDPPH
(Senior Unsecured/ Subordinated)

Standard & Poor’s January 2021 1. Long-term Foreign Currency Rating A-

Ratings Services 2. Short-term Foreign Currency Rating A-2
Negative
(S&P) 3. Long-term Local Currency Rating A-
4. Short-term Local Currency Rating A-2

5$05DWLQJ August 2020 1. Long-term Financial Institution Rating AAA

Services Berhad 2. Short-term Financial Institution Rating P1
5$0  50ELOOLRQ7LHU%DVHOΖΖΖ&RPSOLDQW
Subordinated Debt Programme
a. Issuances prior to 1 January 2016 with non- AA΄
YLDELOLW\HYHQWVOLQNHGWR&Ζ0%%DQN%HUKDG
b. Issuances on or after 1 January 2016 with AA ΅ Stable
QRQYLDELOLW\HYHQWVOLQNHGWR&Ζ0%%DQN
%HUKDGDVZHOODV&Ζ0%*URXS+ROGLQJV%HUKDG
and its subsidiaries A΄
 50ELOOLRQ$GGLWLRQDO7LHU&DSLWDO6HFXULWLHV
Programme AAA
 50ELOOLRQ0HGLXP7HUP1RWHV3URJUDPPH

0DOD\VLDQ5DWLQJ August 2020 1. Long-term Financial Institution Rating AAA

Corporation 2. Short-term Financial Institution Rating 0$5&
%HUKDG0$5&  50ELOOLRQ6XERUGLQDWHG'HEWDQG-XQLRU6XNXN AA+/AA+IS Stable
Programmes
 50ELOOLRQ7LHU6XERUGLQDWHG'HEW3URJUDPPH AA+

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 67

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Credit Ratings

Ʉ&Ζ0%*5283+2/'Ζ1*6%(5+$'

Rating
Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook

0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Issuer Rating Baa1

Stable
6HUYLFH0RRG\ȇV 2. Short-term Issuer Rating P-2

0DOD\VLDQ5DWLQJ August 2020 1. Long-term Corporate Credit Rating AA+

Corporation 2. Short-term Corporate Credit Rating 0$5&
Stable
%HUKDG0$5&  50ELOOLRQ7LHU%DVHOΖΖΖ&RPSOLDQW AA
Subordinated Debt Programme

5$05DWLQJ August 2020 1. Long-term Corporate Credit Rating AA΄

Services Berhad 2. Short-term Corporate Credit Rating P1
5$0  50ELOOLRQ&RQYHQWLRQDODQGΖVODPLF0HGLXP AA΄
term Notes Programme
Stable
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Programme
 50ELOOLRQ$GGLWLRQDO7LHU&DSLWDO6HFXULWLHV A΄
Programme

Ʉ & Ζ 0 % Ζ 1 9 ( 6 7 0 ( 1 7% $ 1 .

Rating
Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook

5$05DWLQJ August 2020 1. Long-term Financial Institution Rating AAA

Services Berhad 2. Short-term Financial Institution Rating P1 Stable
5$0

0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Issuer Rating A3

Stable
6HUYLFH0RRG\ȇV 2. Short-term Issuer Rating P-2

Ʉ & Ζ 0 % Ζ 6 / $ 0 Ζ & % $ 1 .

Rating
Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook

0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Foreign Currency Bank Deposits Rating A3

6HUYLFH0RRG\ȇV 2. Short-term Foreign Currency Bank Deposits Rating P-2
3. Long-term Domestic Currency Bank Deposits Rating A3 Stable
4. Short-term Domestic Currency Bank Deposits P-2
Rating

5$05DWLQJ August 2020 1. Long-term Financial Institution Rating AAA

Services Berhad 2. Short-term Financial Institution Rating P1 Stable
5$0  50ELOOLRQ6XNXN:DNDODK3URJUDPPH AAA

0DOD\VLDQ5DWLQJ August 2020 1. Long-term Financial Institution Rating AAA

Corporation 2. Short-term Financial Institution Rating 0$5&
Stable
%HUKDG0$5&  50ELOOLRQ7LHU-XQLRU6XNXN3URJUDPPH AA+IS
 50ELOOLRQVHQLRU6XNXN:DNDODK3URJUDPPH AAA IS

68 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Credit Ratings

Ʉ & Ζ 0 % 7 + $ Ζ

Rating
Rating Agency Rating Date 5DWLQJ&ODVVLȴFDWLRQ Accorded Outlook

0RRG\ȇVΖQYHVWRUV February 2021 1. Long-term Issuer Rating Baa2

6HUYLFH0RRG\ȇV 2. Long-term Foreign Currency Bank Deposits Rating Baa2
3. Short-term Foreign Currency Bank Deposits Rating P-2
Stable
4. Long-term Domestic Currency Bank Deposits Rating Baa2
5. Short-term Domestic Currency Bank Deposits P-2
Rating

Fitch Ratings April 2020 1. Long-term National Rating AA-(tha)

2. Short-term National Rating F1+(tha)
Negative
3. Long-term Rating on Subordinated Lower Tier 2 AA-(tha)
4. Short-term Rating for Short-term Debt F1+(tha)

5$05DWLQJV August 2020 1. Long-term Financial Institution Rating AA 2

Services Berhad 2. Short-term Financial Institution Rating P1 Stable
5$0  50ELOOLRQ7LHU6XERUGLQDWHG'HEW3URJUDPPH AA 3

Ʉ & Ζ 0 % 1 Ζ $ * $

Rating
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Fitch Ratings February 2021 1. Long-term Issuer Default Rating BBB-

2. Short-term Issuer Default Rating F3
3. Long-term National Rating AA+(idn) Negative
4. Short-term National Rating F1+(idn)
5. IDR1.6 trillion Subordinated Debt AA-(idn)

0RRG\ȇVΖQYHVWRUV June 2020 1. Long-term Issuer Rating Baa2

6HUYLFH0RRG\ȇV 2. Long-term Foreign Currency Bank Deposits Rating Baa2
3. Short-term Foreign Currency Bank Deposits Rating P-2
Stable
4. Long-term Domestic Currency Bank Deposits Rating Baa2
5. Short-term Domestic Currency Bank Deposits P-2
Rating

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 69

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Balance Sheet
Management

The core functions of Balance Sheet Management team include generating balance sheet
strategies and providing guidance to business units on sustainable value creation for the
*URXSE\RSWLPLVLQJVWUXFWXUDOIXQGLQJDQGOLTXLGLW\SURȴOHRIWKH*URXSȇV%DQNLQJERRN
The team also maintains a robust and responsive Funds Transfer Pricing (FTP) framework,
which is governed by the Group Asset Liability Committee (GALCO). The FTP mechanism is
reviewed and calibrated based on best market practices and various regulatory principles
while accommodating for balance sheet strategies as approved by the management and
the Board of Directors.

7KH)73IUDPHZRUNSURPRWHVDQHɝFLHQW
Group-wide allocation of funding costs
DQGEHQHȴWVWRWKHEXVLQHVVXQLWVE\
taking into account the interest rate and
liquidity positions of the Bank. In ensuring
sustainable balance sheet funding, a
liquidity premium is charged to the user
of funds based on the tenure of the
WUDQVDFWLRQVDQGOLTXLGLW\FUHGLW
incentivises the provider of funds that
generate long-term, stable funding.
Presently, we focus on attracting stable
retail deposits to provide sustainable
funding required to extend long-term
UHWDLODQG60(FUHGLWWKDWDUHEHQHȴFLDOWR
the economic livelihood of the society.
The Group maintains a robust liquidity
SURȴOHWRFRPSO\ZLWKLQWHUQDOPHDVXUHV
that adhere to the best market practices
as guided by the Basel Standards. The
Group also observes Basel III Liquidity
Framework, namely the Liquidity
Coverage Ratio (LCR), with a primary focus
RQHQVXULQJDVXɝFLHQWEX΍HURIOLTXLG
DVVHWVWRVXUYLYHDVLJQLȴFDQWVWUHVV
scenario lasting 30 calendar days.
as securitised assets. Our core source of
funding, deposits and investment
accounts from customers have shown
steady and modest growth of 3% in 2020,
with a marginal decrease in composition
in the overall funding source but still
UHȵHFWVDKHDOWK\EX΍HULQIXQGLQJWKH
ORDQERRN/RDQVDGYDQFHVDQGȴQDQFLQJ
shrunk by 2% in 2020 due to
XQSUHFHGHQWHGDGYHUVHH΍HFWVFDXVHGE\
the COVID-19 pandemic.
LCR
The Group maintained a healthy and
stable level of liquid assets which is
UHȵHFWHGE\D/LTXLGLW\&RYHUDJH5DWLRRI
141% as at 31 December 2020, which is
ASSETS
6.6% 5.8%
well above the minimum requirement of
100% for 2020. The bank also observes its
level of liquidity using indicators such as
loans-to-funding (LTF) which includes debt
issuances in addition to deposits while
loan-to-fund-and-equity (LTFE) expands
on with the inclusion of equity. The
measure for LTF and LTFE for the Group
DVDW'HFHPEHULVDQG
respectively. Given the introduction of
new liquidity measures such as Net Stable
Funding Ratio (NSFR) in the recent years,
the Group has been focusing on the
growth of high quality liquid assets as well
as sticky deposits in ensuring a
VXVWDLQDEOHOLTXLGLW\EX΍HUQRWRQO\WR
VXUYLYHDVLJQLȴFDQWVWUHVVVFHQDULR
lasting 30 calendar days but also for
longer time horizons.
LIABILITIES
9.7% 13.7%
8.1% 6.3%

%DODQFH6KHHW0DQDJHPHQWWHDPLV
responsible in implementing the Base
62.9% 58.8%
5DWH%5)UDPHZRUNLQ0DOD\VLD%5LV
computed in accordance with the 69.0% 67.4%
methodology approved under Reference
5DWH)UDPHZRUNRI%DQN1HJDUD0DOD\VLD 6.6%
%107KHGHSOR\PHQWRI%5HQDEOHVWKH 6.6%
*URXSWRVXSSRUWHɝFLHQWȴQDQFLDO
intermediation and monetary policy 23.9% 28.8% 3.2% 3.1%
transmission while at the same time 10.0% 9.5%
remaining competitive through 2019 2020 2019 2020
transparent asset pricing.
Other Assets Treasury Liabilities
7KHORDQVDGYDQFHVDQGȴQDQFLQJRIWKH Loans, Advances and Financing Long-Term Debts
Group’s assets is funded from a funding Cash & Short-Term Funds Deposits & Investment Accounts from
mix comprising of customer deposits and Financial Instruments Customers
investment accounts alongside stable Other Liabilities
long-term borrowings such as senior Total Equity
funding, subordinated obligations, as well

70 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Investor
Relations

Challenging would probably be too kind a word to describe 2020 in terms of its impact on
JOREDOVRFLHWLHVHFRQRPLHVDQGȴQDQFLDOV\VWHPV:LWKWKHZRUOGOLWHUDOO\EHLQJWXUQHGRQ
its head by the COVID-19 pandemic within a span of a few short months, the Group had to
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perspective due to changes in the operating environment, regulations and accounting
treatments. Thrown into the mix was the unexpected change in the Group’s leadership
with the abrupt departure of YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul
Aziz and the subsequent entry of Dato’ Abdul Rahman Ahmad. As such, the Group’s
Investor Relations initial plans and targets for the year were very quickly set aside and
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ZLWKLQWKH*URXSDQGȴQDQFLDOLQGXVWU\

Against a backdrop of a global pandemic
and economic emergencies, the operating
environment threw up a cocktail of crises
over the past 12 months. Central banks
across the region and world cut interest
UDWHVWRNHHSHFRQRPLHVDȵRDWHFRQRPLF
growth forecasts were reduced by the
PRQWKRLOSULFHVWKUHDWHQHGWRVSLUDOLQWR
DFULVLVHTXLW\PDUNHWVWXPEOHGJOREDOO\
directly impacted sectors like airlines,
hospitality and leisure faced uncertain
IXWXUHVXQSUHFHGHQWHGGRPHVWLFDQG
JOREDOSROLWLFDOXSKHDYDOVZHUHDSOHQW\DOO
of which came together to form an
unparalleled year in history. Undoubtedly,
investor sentiment was shaken to the core
as forecasts and budgets were continually
UHYLVHGDQGWKLVNHSWWKH&Ζ0%*URXS
Investor Relations team fully engaged
throughout the year.
For 2020, the Investor Relations
undertaking was focused on delivering
up-to-date status on various market- and
operations-related developments. This
included evaluation of the impact of
FRQWLQXRXVLQWHUHVWUDWHFXWVLQGL΍HUHQW
FRXQWULHVRQORDQGHPDQGDQG1Ζ0VWKH
H΍HFWRIHFRQRPLFORFNGRZQVRQVWD΍
operations and customers, the accounting
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moratoriums and repayment schemes
implemented by regional central banks,
status of customer repayment trends as
well as updates on COVID-19-related
team persevered to upkeep the high
VWDQGDUGVRIWLPHOLQHVVDQGVXɝFLHQF\RI
disclosure, when investors demanded
immediate information.
Whilst the year did not entail many
corporate developments, the Group did
witness an unexpected leadership change
with the entry of a new Chief Executive
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Ahmad’s immediate leadership was most
welcome, although its timing in the midst
of the pandemic and while the
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IURPKRPHSRVHGVLJQLȴFDQWORJLVWLFDO
and operational challenges. He had within
a relatively short period of time, put
together the recalibrated Forward23+
strategic plan by September 2020 to
account for the new world order. The
investment community had the
opportunity to listen to and speak with
Dato’ Rahman via video conference and
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revised strategic plan to reshape the
portfolio, improve the Group’s operational
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increased emphasis on governance and
oversight, as well as the CEO’s personal
thoughts on the Group’s strengths and
weaknesses. Similar to the Forward23
plan, Customer Experience and
6XVWDLQDELOLW\ZLOOUHPDLQFRUHGL΍HUHQWLDOV
IRU&Ζ0%JRLQJIRUZDUG
50ELOOLRQIRU6XVWDLQDELOLW\OLQNHGORDQV
as well as announcement of the Coal
6HFWRU*XLGHZKLFKJDUQHUHGVLJQLȴFDQW
attention and plaudits, particularly
amongst institutional investors which
viewed this as a major step for a South
(DVW$VLDQȴQDQFLDOLQVWLWXWLRQDOVR
VDZ&Ζ0%3KLOLSSLQHVFRQWLQXHLWVVWHOODU
growth culminating in just under 3.1
million customers within 2 years of
inception and seeing an over 8-fold
JURZWKLQGHSRVLWVLQLWVȴUVWIXOO\HDURI
deposit taking.
Despite the intense pressure over the
year, the inability to travel and working
from home challenges, the Investor
Relations team strived to provide as best
access as possible for domestic and
foreign stakeholders to senior members
RI&Ζ0%*URXSPDQDJHPHQW:LWKWKH
pandemic in full swing, all investor
engagements were moved to virtual
SODWIRUPVSDUWLFXODUO\:HEH[=RRP06
Teams and old-school teleconference
facilities. Engagements were largely led by
the Group CFO Khairul Rifaie over the
year, while the Group CEO Dato’ Abdul
Rahman Ahmad took a more active role
around the year-end after the unveiling of
the Forward23+ program. The Investor
Relations team provided continuous
ground support, along with other selected
PHPEHUVRI*URXS0DQDJHPHQW
particularly David Richard Thomas (Group
sector exposures. Given that systems, On the Sustainability front, the Group &KLHI5LVN2ɝFHUDQG6LHK/XDQQH+HDG
databases and general infrastructure was extended its leadership within the of Sustainability) through the year.
not designed for the scale and speed of environmental, social and governance
the disruption, the Investor Relations (ESG) sphere in 2020 with the allocation of

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 71

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Investor Relations

A N A LY S T B R I E F I N G S

Despite the various travel and work

restrictions in place, the Group conducted
investor conference calls for all four
TXDUWHUO\ȴQDQFLDOUHVXOWVDQQRXQFHPHQWV
over the year. We continued to receive
active participation from both domestic
and regional equity and debt analysts and
fund managers. Given the leadership
WUDQVLWLRQWKUHHRIWKHDQDO\VWEULHȴQJV
were conducted by the Group CFO, who
presented the year-end and quarterly
ȴQDQFLDOSHUIRUPDQFH7KHQHZ*URXS
CEO took the helm for the third quarter
ȴQDQFLDOUHSRUWLQ1RYHPEHUZKHUH
he addressed questions on the rapidly
changing operating environment as well
as partook in discussions on his strategic
7KH*URXS&(2DQG*URXS&)2DWWKHȴUVWYLUWXDOSUHVVFRQIHUHQFHLQ$XJXVW plans for the Group under Forward23+.

The Group maintained its twice-yearly

press conferences to brief the media on
LWVȴQDQFLDOSHUIRUPDQFH:KLOHWKH
SIGNIFIC ANT E VENTS: IXOO\HDUUHVXOWVSUHVVEULHȴQJLQ
February was routine, the half-year 2020
Date (YHQW UHVXOWVSUHVVFRQIHUHQFHZDVWKHȴUVWWR
0DUFK 5HVLJQDWLRQRI<%6HQDWRU7HQJNX'DWXN Bursa be held virtually with both the Group CEO
Seri Utama Zafrul Tengku Abdul Aziz as Announcement and Group CFO holding court. The
*&(2RI&Ζ0%*URXS+ROGLQJV%HUKDG Investor Relations team ensured that all
DQG&Ζ0%%DQN%HUKDG ȴQDQFLDOVWDWHPHQWVDQGSUHVVUHOHDVHV
ZHUHVXEPLWWHGWR%XUVD0DOD\VLDZLWKLQ
0D\ &Ζ0%*URXSDSSRLQWV'DWRȇ$EGXO Bursa
Rahman Ahmad as Group CEO and Announcement the stipulated dates and times, all
([HFXWLYH'LUHFWRUH΍HFWLYH-XQH necessary documentations are uploaded
to the Group’s Investor Relations
18 June 2020 Resignation of Adisorn Sermchaiwong as Bursa webpage, as well as ensure that the
3UHVLGHQW&(2RI&Ζ0%7KDL Announcement
investor presentations are emailed to
pertinent internal and external
stakeholders.
A N N O U N C E M E N T O F F I N A N C I A L R E S U LT S :

Date (YHQW Type of Meeting

0D\ &Ζ0%*URXS45HVXOWV Conference Call

28 August 2020 &Ζ0%*URXS45HVXOWV Conference Call

1RYHPEHU &Ζ0%*URXS45HVXOWV Conference Call

26 February 2021 &Ζ0%*URXS45HVXOWV Conference Call

72 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Investor Relations

personally with senior members of

PDQDJHPHQWWRDVNVSHFLȴFTXHVWLRQV
and to receive responses face-to-face.
This provides the bedrock to a strong
investor-management relationship, where
trust is built and earned. As a result of
global travel restrictions, investors were
XQDEOHWRWUDYHOWR0DOD\VLDWRPHHWXV
while we were unable to participate in any
conferences and roadshows over the year.
Investor engagements were moved online
as investor conferences went virtual, as
did all corporate access.
7KH%RDUGRI'LUHFWRUVDGGUHVVLQJVKDUHKROGHUVDWWKHUG$*0

0DNLQJWKHEHVWRIWKHFLUFXPVWDQFHVWKH
Group kept a high level of investor
engagement throughout the year. We
AGM/EGM conducted a total of 63 investor meetings
in 2020, a predictable decrease from the
2020 marked the Group’s inaugural virtual Group CEO personally addressed queries
85 meetings in 2019. Nonetheless, going
$QQXDO*HQHUDO0HHWLQJ$*0LQOLJKWRI IURPWKH0LQRULW\6KDUHKROGHUV:DWFKGRJ
online accorded the opportunity to
the exceptional circumstances. The *URXS06:*DQG3HUPRGDODQ1DVLRQDO
engage with a higher number of buy- and
RULJLQDO$*0GDWHRI$SULOZDV Berhad (PNB). Unsurprisingly, a large
sell-side analysts and fund managers as
GHOD\HGGXHWRWKHDGYHQWRIWKH0&2 proportion of the topics raised at the
virtual meetings accommodated higher
ORFNGRZQZLWK%XUVD0DOD\VLDDOORZLQJDOO UG$*0FHQWHUHGRQWKHLPSDFWRI
number of participants. As such, we had
listed companies a 2-month grace period COVID-19 on loan growth, asset quality,
direct engagement with 561 analyst and
WRFRQGXFWWKHLU$*0V:LWKVWULFWVRFLDO moratorium and account restructurings,
investors in 2020, a 46% increase from
distancing measures and inability of and exposures to vulnerable sectors.
the 385 in 2019. Apart from these
VHYHUDOQRQ0DOD\VLDQPHPEHUVRIWKH
one-on-one and group meetings, the
Board of Directors to travel to Kuala
Group maintained its practice of twelve
/XPSXU&Ζ0%*URXSȇVUG$*0ZDV INVESTOR MEETINGS
larger-group meetings annually – eight
FRQGXFWHGRQ-XQHLQ0HQDUD
One of the major changes to the Investor pre-closed period meetings with the
&Ζ0%
Relations undertaking in 2020 was the domestic buy- and sell-side, and four
inability to conduct live investor meetings. TXDUWHUO\ȴQDQFLDODQQRXQFHPHQW
As one of the major corporate highlights
One-on-one meetings allow for FRQIHUHQFHFDOOV&Ζ0%1LDJDDOVRVDZD
RIHYHU\\HDUWKH$*0LVWUDGLWLRQDOO\
institutional investors to engage similar drop in the number of meetings
where shareholders have the opportunity
and investors met in 2020.
to engage with members of Group
0DQDJHPHQW'HVSLWHKDYLQJMXVWMRLQHG
N O. O F M E E T I N G S / N O. O F F U N D M A N A G E R S A N D A N A LY S T S
the Group less than a month before, the
*URXS&(2SUHVHQWHGWKHȴQDQFLDO
2019 2020
performance, the progress of the
FM/ FM/
Forward23 roadmap, an update on the
Meetings Analysts Meetings Analysts
impact of COVID-19 on the Group’s
RSHUDWLRQVLQWHUPVRIVWD΍FXVWRPHUV CIMB Group
DQGȴQDQFLDOV'DWRȇ5DKPDQRXWOLQHGWKH In-house meetings 38 199 4 32
somber outlook for 2020 as the pandemic
Conferences 19 85 14 109
would inevitably impact the Group’s
Non deal roadshows 18 86 9 53
DELOLW\WRDFKLHYHLWVȴQDQFLDOWDUJHWVIRU
Teleconferences 10 15 37 367
the year. In addition, he disclosed his plan
to recalibrate the Forward23 program in Total 85 385 63 561
light of the new normal, which was
eventually unveiled as Forward23+ in CIMB Niaga
2FWREHU:KLOHWKHYLUWXDO4 $VHVVLRQ
In-house meetings 12 48 9 46
proved to be less engaging than normal,
VKDUHKROGHUVȴHOGHGDZLGHUDQJHRI Total 12 48 9 46
pointed questions to the Board of
Directors via electronic submissions. The

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 73

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Investor Relations

CONFERENCES AND ROADSHOWS RESE ARCH COVER AGE

It is worth reiterating the importance of face-to-face meetings between Group &Ζ0%*URXSUHPDLQVZHOOFRYHUHGE\WKH

0DQDJHPHQWZLWKLQVWLWXWLRQDODQGVWUDWHJLFVKDUHKROGHUVSDUWLFXODUO\DWLQYHVWRU investment community as it remains a
conferences as well as via non-deal roadshows (NDRs) regionally and globally. While the FRUHFRPSRQHQWRIWKH)%0./&ΖΖQGH[
The Group remains the second largest
pandemic scuttled travel plans for most of the year, the Group was fortunate to
ȴQDQFLDOLQVWLWXWLRQLQ0DOD\VLDE\DVVHWV
participate in 2 investor conferences in January 2020 in Kuala Lumpur and Singapore,
DQGWKHȴIWKODUJHVWLQ$6($1$VRIHQG
before global travel restrictions kicked in. As most planned live events were cancelled December 2020, the stock had active
throughout the year, many gravitated towards virtual conferences. The Group CFO coverage by a total of 22 analyst and
represented the Group in most of the online events where he provided updates on the research houses, and continues to be well
VWDWHRIWKHEXVLQHVVZLWKLQWKHHYHUFKDQJLQJȵX[RIWKHSDQGHPLFDQGGLVFXVVHG tracked by buy-side analysts and fund
LVVXHVUHODWLQJWRDVVHWTXDOLW\DQGȴQDQFLDOSHUIRUPDQFH managers domestically, regionally and
globally.
:HDOVRFRQGXFWHGRXUȴUVWYLUWXDO&Ζ0%*URXS&(2URDGVKRZLQ2FWREHUIROORZLQJWKH
announcement of the recalibrated Forward23+ program, where we held a large group No Research House
RQOLQHEULHȴQJIROORZHGE\DVHULHVRIVPDOOJURXSVDQGWDUJHWHGRQHRQRQHPHHWLQJV  $ɝQ+ZDQJΖQYHVWPHQW%DQN
with pertinent shareholders. In light of the lower number of events held in 2020, we had 2 AllianceDBS Research
HYHQWUHODWHGPHHWLQJVGXULQJWKH\HDUFRPSDUHGWRLQ6LPLODUO\WKHQXPEHU 3 AmInvestment Bank
RIIXQGPDQDJHUVDQGEX\VLGHDQDO\VWVHQJDJHGDWHYHQWVIHOOWRYHUVXVWKHWKH 4 Bernstein Research
year before. The share register analysis remains an important tool for the Investor 5 BofA Global Research
Relations program to better identify and engage strategically important stakeholders. 6 Citi Investment Research
 &/6$6HFXULWLHV
CONFERENCES AND ROADSHOWS 8 Credit Suisse Securities
9 Hong Leong Investment Bank
Date (YHQW Location Organiser  -30RUJDQ6HFXULWLHV
6 January 2020 &Ζ0%WK$QQXDO0DOD\VLD Kuala Lumpur &Ζ0% 11 KAF-Seagroatt & Campbell
Corporate Day Securities
12 Kenanga Investment Bank
21 January 2020 8%60DOD\VLD&RUSRUDWH'D\ Singapore UBS
 0DFTXDULH&DSLWDO6HFXULWLHV
0DUFK Credit Suisse ASEAN Virtual Kuala Lumpur Credit Suisse  0D\EDQNΖQYHVWPHQW%DQN
Corporate Day  0Ζ')$PDQDKΖQYHVWPHQW%DQN
 0RUJDQ6WDQOH\5HVHDUFK
10 June 2020 UBS OneASEAN Virtual Kuala Lumpur UBS
Conference  1RPXUD6HFXULWLHV
18 Public Investment Bank
4 August 2020 CLSA Cashless Society Day Kuala Lumpur CLSA 19 RHB Research
October 2020 &Ζ0%*URXS&(2ΖQYHVWRU Kuala Lumpur &Ζ0%*URXS 20 TA Securities
Roadshow 21 UBS Securities
22 UOB Kay Hian

C R E D I T R AT I N G

The Investor Relations team undertakes
the management of all communications
with domestic, regional and global credit
rating agencies. The Group has solicited
and unsolicited arrangements with
0RRG\ȇVΖQYHVWRUV6HUYLFHV5$05DWLQJV
SURȴOHIRUDOOEDQNLQJHQWLWLHVLQFOXGLQJ
&Ζ0%*URXS
Credit ratings are vital indicators of a
FRUSRUDWHRUEDQNȇVȴQDQFLDOKHDOWKULVN
and stability, and are relied on by
2020 as the world reeled from the
pandemic and where external
stakeholders placed greater reliance on
the independent credit ratings. As such,
the relationships with credit rating
agencies are treated with utmost
6WDQGDUGDQG3RRUȇV6 30DOD\VLDQ numerous stakeholders including importance as we maintain year-round
5DWLQJ&RUSRUDWLRQ0$5&DQG)LWFK FRXQWHUSDUW\ȴQDQFLDOLQVWLWXWLRQV engagements culminating in annual rating
5DWLQJVWRSURYLGHORFDODQGIRUHLJQ institutional investors and ecosystem review discussions with senior members
currency rating coverage on the credit partners. This was especially pertinent in RI&Ζ0%*URXSPDQDJHPHQW7KHWHDP
provides substantial data and disclosure
to ensure fair and thorough analysis.
74 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
 Investor Relations

SHARE PRICE PERFORMANCE

AND FOREIGN SHAREHOLDING

With a backdrop of a world reeling from
the COVID-19 pandemic, it was no
surprise that global equity markets took a
severe beating in 2020. The threatening
economic crisis sent markets plunging in
the middle of the year, before optimism of
a vaccine-driven recovery triggered a
rebound in December. The benchmark
)%0./&ΖHQGHGWKH\HDUXSDIWHU
GHFOLQLQJE\DVPXFKDV<7'LQ
0DUFK1HYHUWKHOHVVȴQDQFLDOVWRFNVERUH
WKHEUXQWRIWKHPDUNHWVHOOR΍DQG
generally underperformed wider markets
on the rebound due to concerns of
protracted asset quality issues and lower
growth visibility. The Group’s share price
KLWDORZRI50GXULQJWKH\HDUEHIRUH
recovering strongly to close out the year
DW502YHUWKHPRQWKSHULRGWKH
Group’s share price declined by 14%
compared to the adjusted share price of
50DVDWHQGWUDQVODWLQJWRD
12.5% underperformance against the
)%0./&ΖLQ
With the combination of lower operating
income and elevated provisions, partially
R΍VHWE\VKDUSO\UHGXFHGRSHUDWLQJ
expenses, the Group expectedly fell short
of its headline ROE and loan loss charge
targets for the year. However,
conservative capital management
ensured that the Group’s CET1 ratio
strengthened to 13.3%, while prudent
cost controls allowed the Group to lower
its cost-to-income ratio (CIR) to 52.2%
(versus the target of <53.4%). Despite the
GLɝFXOW\HDUWKH*URXSZDVSOHDVHGWR
announce a respectable dividend payout
ratio of 40%, in line with its 40-60%
payout policy.
7KHSDQGHPLFIXHOHGFDSLWDOȵLJKWRI
global investors during the year translated
to a sharp reduction in the Group’s
foreign shareholding, which stood at
20.9% as at end-2020 compared to 30.2%
DVDWWKHHQGRIȂD<R<GHFOLQH
The decline was partially attributed to the
transfer of shares back to Khazanah
Nasional in June 2020 from its foreign
trustee banks in relation to its USD500
million Exchangeable Bonds issued in July
2019.

CIMB GROUP SHARE PRICE AND VOLUME

6 300

5 250

4 200

3 150

2 100

1 50

0 0
Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20

Volume (’mil) (RHS) Price (RM) (LHS)

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 75

M A N A G E M E N T D I S C U S S I O N A N D A N A LY S I S – P E R F O R M A N C E R E V I E W

Investor Relations

CIMB GROUP FOREIGN SHAREHOLDING

32

30.2% 30.4% 30.4%

30

27.9%
28

26.3%
26 25.6%

24
22.5% 22.3%
22.0%
22
20.9% 20.9%
20.6% 20.7%

20

18

16

14
Dec 19 Jan 20 Feb 20 Mar 20 Apr 20 May 20 Jun 20 Jul 20 Aug 20 Sep 20 Oct 20 Nov 20 Dec 20

SHAR EHOLDER S ’ R E TUR NS (6 JUNE 2 0 0 5* – 31 DECEMBER 2 02 0)

500

450

400

350

-12.5%
300

250

200

150

100
1 YEAR 15.5 YEARS
&Ζ0%  209.6%
50
)%0./&Ζ 4.5% 222.2%
0
Jun 05 Jun 06 Jun 07 Jun 08 Jun 09 Jun 10 Jun 11 Jun 12 Jun 13 Jun 14 Jun 15 Jun 16 Jun 17 Jun 18 Jun 19 Jun 20 Dec 20
FBMKLCI Index CIMB

Note: 'DWHRIDQQRXQFHPHQWRIWKH0 $EHWZHHQ&Ζ0%%HUKDGDQG&$+%

10 -Y E A R F O R E I G N S H A R E H O L D I N G ( D E C E M B E R 2 0 10 – D E C E M B E R 2 0 2 0 )
45%

40%

35%

30%

25%
20.9%

20%

15%

10%
Dec 10 Dec 11 Dec 12 Dec 13 Dec 14 Dec 15 Dec 16 Dec 17 Dec 18 Dec 19 Dec 20

76 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Financial
Calendar

28 FEBRUARY 2020 16 MARCH 2020 17 MARCH 2020 9 APRIL 2020

Announcement of the
unaudited consolidated
ȴQDQFLDOUHVXOWVIRUWKH
fourth quarter and
ȴQDQFLDO\HDUHQGHG
b'HFHPEHU
Notice of book closure for
single tier second interim
dividend of 12.00 sen per
VKDUHIRUWKHȴQDQFLDO\HDU
ended 31 December 2019
Date of entitlement for the
single tier second interim
dividend of 12.00 sen per
VKDUHIRUWKHȴQDQFLDO\HDU
ended 31 December 2019
Issuance of Annual Report
IRUWKHȴQDQFLDO\HDUHQGHG
b'HFHPEHU

13 APRIL 2020 22 MAY 2020 2 JUNE 2020 30 JUNE 2020

Payment of the single tier Announcement of the Notice of 63rd 63rd Annual General
interim dividend of 12.00 unaudited consolidated
sen per share for the ȴQDQFLDOUHVXOWVIRUWKHȴUVW Annual General 0HHWLQJ
ȴQDQFLDO\HDUHQGHG TXDUWHUHQGHG0DUFK 0HHWLQJ
b'HFHPEHU 2020

28 AUGUST 2020 27 NOVEMBER 2020 26 FEBRUARY 2021

Announcement of the Announcement of the Announcement of the

unaudited consolidated unaudited consolidated unaudited consolidated
ȴQDQFLDOUHVXOWVIRUWKH ȴQDQFLDOUHVXOWVIRUWKH ȴQDQFLDOUHVXOWVIRUWKH
second quarter and half third quarter ended fourth quarter ended
year ended 30 June 2020 b6HSWHPEHU b'HFHPEHU

2 0 2 1 T E N TAT I V E D AT E S

31 MAY 2021 30 AUGUST 2021 30 NOVEMBER 2021 FEBRUARY 2022

1Q 2021 2Q 2021 3Q 2021 4Q 2021

Financial Results Financial Results Financial Results Financial Results

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 77

M A N AG EMENT D IS CUSSIO N AND ANALYSIS – B U S I NE S S RE V I E W

Group Consumer Banking

Despite the challenging environment and headwinds, our business remained resilient
DQGUREXVW:HDFKLHYHGKHDOWK\EDODQFHVKHHWJURZWKDQGSUHSURYLVLRQRSHUDWLQJSURȴW
improvement. As the pandemic curtailed business momentum and impacted our critical
VWDNHKROGHUVLQFOXGLQJFXVWRPHUVDQGHPSOR\HHVZHIRFXVHGRXUH΍RUWVRQ
implementing key risk mitigation strategies mainly to ensure safety of our employees,
while rolling-out various loan relief programmes for our customers-in-need. Various
measures were also taken to manage credit risk and asset delinquencies. During the
year, our emphasis was also on accelerating digital engagement through transactions
and digital acquisition, optimising loans and deposits spread and cost management.

by Samir Gupta

W H O W E A R E A N D W H AT W E D O
We provide conventional and Islamic banking solutions to individual Our products and services are also accessible over-the-counter in all our
customers and small businesses. Our range of products include branches regionally. By tapping the potential of digital, big data and
GHSRVLWDFFRXQWVORDQVSHUVRQDOȴQDQFLQJFUHGLWFDUGVZHDOWK advanced analytics, and backed by a holistic product proposition as well
management and investments; bancassurance; remittance and FX. as our integrated regional banking model, we aim to deliver superior
7KHVHR΍HULQJVFDQEHDFFHVVHGWKURXJKPXOWLSOHGHOLYHU\FKDQQHOV customer experience.
i.e., online banking, mobile banking, self-service banking via ATM
WHUPLQDOVSKRQHEDQNLQJDOORIZKLFKKHOSIDFLOLWDWHȴQDQFLDO
transactions beyond normal banking hours.

W H AT O U R S TA K E H O L D E R S E X P E C T

Shareholders Customers Communities Employees Regulators

Achieve stability, respond to 2΍HUFRQYHQLHQWVHFXUH Provide support to Build talent pipeline to Remain nimble to
customers’ needs and and reliable access to customers impacted by the support big data & advance regulations and policies to
deliver resilient growth and ȴQDQFLDOVROXWLRQV pandemic via various relief analytics industrialisation. support customers
sustainable returns. programmes. impacted by the pandemic.

H O W W E C R E AT E D VA L U E I N 2 0 2 0

6.5% > 13m 257k >70 13%

pre-provision operating Customers served across Accounts assisted through machine learning models of total gross loans granted
profits. MISTC. relief programmes across completed delivering relief.
MISTC. business uplift.

Strategic Themes Material Matters &DSLWDOV$΍HFWHG

• Delivering Sustainable Financial Returns • Health, Safety, & Well-being • Financial
• Customer Centricity • Technology • Manufactured
• Customer Experience • Intellectual

FINANCIAL PERFORMANCE
While business growth and momentum were impacted by the pandemic, loans and CASA growth remained resilient. Loans grew +2.7% YoY,
mainly due to the uptake in Malaysia. CASA grew +30.2% contributed by strong growth across all ASEAN markets. In 2020, Group Consumer
%DQNLQJ*&%DFKLHYHGDFRPPHQGDEOHSUHSURYLVLRQRSHUDWLQJSURȴWJURZWK2SHUDWLQJH[SHQVHVUHGXFHGE\DVDUHVXOWRI
prudent cost management measures across MIST. GCB’s growth potential was optimised despite headwinds such as central bank rate cuts
DFURVV0Ζ67DQGWKHSDQGHPLFLQGXFHGPRGLȴFDWLRQORVVHV'XULQJWKH\HDU*&%DOVRDFFHOHUDWHGLWVGLJLWDOHQJDJHPHQWE\HQFRXUDJLQJ
LQWHUQHWEDQNLQJWUDQVDFWLRQVDQGLQWHQVLI\LQJGLJLWDODFTXLVLWLRQV$VDUHVXOWDFWLYHGLJLWDOXVHUVJUHZE\GLJLWDOWUDQVDFWLRQV
and proportion of digital acquisitions increased to 66.0% of total sales (by sales count).

Pre-Provision Digital Transactions

Loans CASA Operating Expenses 2SHUDWLQJ3URȴW Active Digital Users (Web & App)
(RM billion) (RM billion) (RM million) (RM million) (#’million) (#’million)
(4,495)

(4,289)
184.9

189.8

2,942

3,133

2.7% 30.2% 4.6% 6.5% 17.7% 46.9%

63.2

82.3

344

506
4.2

5.0

YoY YoY YoY YoY YoY YoY

19 20 19 20 19 20 19 20 19 20 19 20

78 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


KEY RISKS & CHALLENGES
Operations disruption:
– Disruptions in operations and BAU
functions due to movement control orders
and safety/health concerns of both
employees and customers.
Decelerating Business Momentum:
– Slow-down of business momentum across
MISTC, exacerbated by central bank’s rate
cuts and external headwinds, which
Group Consumer Banking
Mitigation Strategies
– Implemented stringent health and safety
SOPs, including physical distancing and
crowd management at all branches.
Ȃ 6XSSRUWHGJRYHUQPHQWȇV&29Ζ'UHOLHI
Split operations for call centre and
collections, with work-from-home options
IRUVWD΍
– Focused on CASA growth and increasing
investment fee income through sales force
recalibration, digital engagement and sales
enablement.
Results
– Seamless delivery of banking services.
– Minimal disruption to business operations.
– No decline in employee productivity.
– CASA increased +30.2% YoY & launched
GLJLWDO&$6$SURGXFWVLH'LJLWDO
journey via eKYC (MY) & Chill D (TH).
– Active Digital Users +17.7% YoY; total digital
impacted both performance and
SURȴWDELOLW\
Increasing Credit Risk:
– Health and socio-economic impacts of
&29Ζ'VHYHUHO\D΍HFWHGLQFRPH
potential of consumers, requiring us to
HɝFLHQWO\PDQDJHFUHGLWFRVWVDQGDVVHW
delinquencies.
OPPORTUNITIES & GROW TH DRIVER S
Despite the challenges and headwinds, our
core business engine remained robust. We
achieved balance sheet growth and
improvements in pre-provision operating
SURȴWVWKURXJKVSUHDGRSWLPLVDWLRQ
investment fee focus and prudent expense
management. Our consumer franchises in
Malaysia and Indonesia continue to take
market share and grow faster than industry for
mortgage, auto loans and CASA. In Malaysia,
the sales engine was recalibrated to emphasise
on investment fee income growth resulting in
VWURQJLQYHVWPHQW12ΖΖJURZWK<R<
GULYHQE\VWURQJVDOHVIRUXQLWWUXVW<R<
and Gold Investment Account which grew 10x.
FORWA R D2 3 + FOCU S A R E A S
Delivering Sustainable Financial Returns
ȏ (΍HFWLYHO\RSWLPLVHGDQGPDQDJHGORDQV
and deposit spreads to grow net interest
income and executed expense
management initiatives to reduce cost.
• Recalibrated sales force to develop fee
income focus, achieving strong investment
fee growth and investment product sales in
Malaysia.
• Coherently led and executed a regional
credit policy and processes across MISTC to
manage delinquencies and manage credit
risks.
• Accelerated digital engagement initiatives
through driving digital user activation,
transactions, digital sales acquisition and
digital sales enablement.
• Leveraged and industrialised big data and
advanced analytics for business uplift and
support personalisation initiatives.
Ȃ (ɝFLHQWO\PDQDJHGWKHVSUHDGIRUORDQV
and deposits.
– Enhanced credit policies, devised customer
segmentation criteria, and optimised credit
collection processes.
Ȃ ([HFXWHGUHJLRQDO&29Ζ'SROLF\SURFHVV
RNR (Rewards and Recognition) programme
and exit approaches.
During the year, we devised a customer
segmentation strategy to identify high risk/
impacted customers and proactively engaged
with them to provide relevant solutions. We
also accelerated our digital engagement
initiatives by driving digital user activation,
transactions and digital sales acquisition. Digital
account opening via eKYC was also
RSHUDWLRQDOLVHGWKURXJK0DOD\VLDȇV'LJLWDO
journey and Thailand’s Chill D products, while
Indonesia launched a mobile sales app for auto
loans. At the core, we continue to democratise
big data and advanced analytics for business
uplift and support personalisation initiatives,
which contributed to 3.5% of total FY20 MIST
revenue.
Customer Centricity
• Ensured customers have access to essential
banking services during the pandemic while
safeguarding customers’ well-being during
their branch visits.
• Proactively engaged with customers to
provide assistance via payment relief
programmes and for restructuring or
rescheduling of loans across our core
markets in ASEAN.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
WUDQVDFWLRQVZHE DSS<R<
– Total sales count contribution from digital
sourcing up from 50% to 66%.
– Net interest income improved +3.7%
despite headwinds.
– Devised Customer Segmentation to identify
high risk/impacted customers and
proactively engage customers.
– Provided payment relief assistance to 257k
accounts across MISTC covering ~RM22
billion in gross loans.
– Provided seamless and convenient
experience for customers to seek assistance
via online and straight-through acceptance
SURFHVVXVLQJ273IRUSRVLWLYHYHULȴFDWLRQ
2 0 2 1 O U T LO O K & P RO S P E C T S
In the year ahead, we will remain cautious
given the challenging outlook as business
momentum and operations will continue to
EHLPSDFWHGE\WKH&29Ζ'DQG
economic disruption as a result. For 2021,
Group Consumer Banking is looking to
GULYHVXVWDLQDEOHSURȴWJURZWKWKURXJK
CASA, RAROC (Risk-Adjusted Return on
Capital) optimisation, fee income, and
doubling-down on preferred banking and
wealth management services. This will be
supported by personalised banking and
reinforcing a customer experience
obsessed culture to deliver a relevant,
YDOXHDGGHGDQGFRPSHWLWLYHR΍HULQJV
enabled by big data and advanced
analytics.
Group Consumer Banking will further
accelerate its digital agenda particularly in
the areas of innovation, operational
digitalisation, payments, sales enablement
and acquisition. This is to strengthen our
digital banking leadership as we transform
into a digitally-led bank. As we navigate a
challenging environment, cost
management will remain crucial and
HQKDQFHGFUHGLWULVNPDQDJHPHQWH΍RUWV
will continue to manage provisions.
In summary, we expect to sustain growth
DQGSURȴWDELOLW\WKURXJKLQQRYDWLRQ
FRQWLQXRXVSURFHVVLPSURYHPHQWHɝFLHQW
cost management and service excellence
as we move the franchise towards meeting
our Forward23+ goals and maintain our
position as the leading consumer bank in
ASEAN.
79
M A N AG EMENT D IS CUSSIO N AND ANALYSIS – B U S I NE S S RE V I E W

Group Commercial Banking

COVID-19 has had a profound impact on the way we deliver real value to our
customers. The key has been to stand by our customers when they need us the most.
ΖQbNHHSLQJZLWKWKLVVSLULWZHGLVEXUVHG50ELOOLRQLQORDQVWR60(VLQWKHODVWWZR
years as committed in 2019. We also successfully remained on track towards digitalising
RXU60(HFRV\VWHP$VZHFRQWLQXHWRPDQDJHWKHLPSDFWVRIWKHSDQGHPLFZHUHPDLQ
vigilant and focused on what we can deliver to our customers, grounded on the principles
of sustainability and our commitment to ever-improving customer experience.

by Victor Lee Meng Teck

W H O W E A R E A N D W H AT W E D O
We are a regional business committed to support the growth of the
$6($1HFRQRP\WKURXJKWKHSURYLVLRQRIDIXOOVXLWHRIȴQDQFLDO
services and solutions such as credit facilities, cash management
solutions, treasury and structured products. We serve the businesses
community, ranging from small and medium enterprises (SMEs), to
mid-corporates.
:HDGRSWDQLQWHJUDWHGPDUNHWLQJDSSURDFKZLWKUHJDUGVWRRXUȴQDQFLDO
product and services, which are tailored to meet the individual needs of
RXUFXVWRPHUV:HR΍HUERWKFRQYHQWLRQDODQGΖVODPLFVROXWLRQVZKHUH
applicable in the respective markets. These are made available to our
customers through multiple channels such as online banking, our
dedicated relationship managers, SME and business centres; as well as
CIMB’s extensive branch network across the region.

W H AT O U R S TA K E H O L D E R S E X P E C T

Customers Communities Employees Regulators

2΍HUGLYHUVHGLJLWDOHQDEOHG
product portfolio, agile services
and competitive prices to our
target customer segment.
Support local entrepreneurs, Keep the employee morale high Embrace the spirit of the regulatory
especially the SME segment, with and continue to support them with standards and codes of conduct
ȵH[LEOHVROXWLRQVWKDWDUHDGMXVWHG their personal and professional and provide continuous support
to the group’s sustainability aspirations. during the pandemic.
policies.

H O W W E C R E AT E D VA L U E I N 2 0 2 0

RM15 billion 1,000 SMEs 2YHUVWD΍ZRUNIURPKRPH RM2.5 billion

In loans disbursed to the critical
SME customers between
KHOSLQJWKHPJURZ
their operations, and maintain
KHDOWK\FDVKȵRZSRVLWLRQ
Attended the webinar sessions Foster a positive work Received by businesses by way of
organised to raise awareness on environment, with minimal relief facilities initiated by CIMB as
eCommerce solutions to help with disruption through implementation ZHOODVȴQDQFLDOVFKHPHV
business continuity. RIHIIHFWLYHFRXQWHU&29Ζ' mandated by the regulator/
measures. government.

Strategic Themes Material Matters &DSLWDOV$΍HFWHG

• Customer Centricity • Customer Experience • Financial
• Transform Fundamentals • Governance • Social & Relationship
• Purpose-driven Organisation

FINANCIAL PERFORMANCE RECOGNITION

Despite the fact that the new business growth and income from 2020 was $ZDUGV $ZDUGLQJ%RG\
PXWHGLQPRVWPDUNHWVWKHUHZDVDSRVLWLYHJURZWKLQGHSRVLWVE\DVDW • Best SME Bank, Malaysia
31 December 2020. The imperative on loans in 2020 was about providing our • Best SME Bank, Singapore
customers access to the right type of relief measures – both government- and • Best Digital Transformation
&Ζ0%LQLWLDWHGȂVRWKDWWKH\DUHDEOHWRPDLQWDLQWKHLUFDVKȵRZSRVLWLRQDQG Initiative for SMEs (Banking), Global Business
continue to build business resilience. Malaysia Outlook (GBO)
• Most Innovative Credit Card (CIMB Awards 2020
Platinum Business Card)
Loans Deposits Operating Income ȏ 0RVW&XVWRPHU&HQWULF&29Ζ'
(RM billion) (RM billion) (RM billion) Debt Relief Scheme, Singapore
• Outstanding Digital Innovation in Global Retail
SME Banking Banking Innovation
Awards 2020
--3.7% 8.1% --3.5%
65.5

63.1

65.7

71.0

• Singapore International Initiative

3.4

3.3

YoY YoY YoY Asian Banking and

of the Year for Supply Chain
19 20 19 20 19 20 Finance 2020
Financing

80 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


KEY RISKS & CHALLENGES
Rising Credit Risks:
– Business disruption, loss of revenue, and
FDVKȵRZFKDOOHQJHVD΍HFWLQJRXU
FXVWRPHUVGXHWR&29Ζ'ORFNGRZQLQ
CIMB’s core ASEAN markets.
'HFHOHUDWLQJ(FRQRPLF*URZWK – Shifted our strategy to focus on Deposits
Ȃ 'LVUXSWHGUHJLRQDOWUDGHȵRZVGHSULRULWLVHG
loan growth agenda, weak market
sentiments and outlook.
Continuing Movement Restrictions:
– Expected decline in business growth due to
lockdown situation in our core markets.
OPPORTUNITIES & GROW TH DRIVER S
The year 2020 has changed the dynamics of
our business and operations. The key game
changer was our ability to remain agile and
adapt to the ‘new normal’, which is all about
creative and innovative ways to stay connected
to our customers through digitalisation. In
doing so, we enhanced our processes and
equipped our customers with alternative
solutions.
For instance, through our InstaBiz solution, we
facilitated quick turnaround on decisions for
loan applications from micro segment
customers in Malaysia. During the year, more
than 3,000 customer accessed and submitted
loan applications through CIMB’s BizChannel
and Clicks online banking platform.
Similarly, in Indonesia, our Octo Smart virtual
assistant, which provides automation of
product application & approval process,
VLJQLȴFDQWO\UHGXFHGZDONLQVWREUDQFKHVΖQ
Singapore, we introduced an Electronic Virtual
Assistant (EVA) to help customers with their
FORWA R D2 3 + FOCU S A R E A S
Delivering Sustainable Financial Returns
• Deployed de-risk strategies to manage risk
exposure at portfolio level, which in turn
contributes to improved asset quality.
• Rolled-out a robust asset quality
management programme to assess and
DGGUHVVYDULRXV&29Ζ'LPSDFWV
• Heightened delinquency management and
proactively introduced repayment
assistance measures for our customers.
• Leveraged on advanced analytics and
Group Commercial Banking
Mitigation Strategies
– Redeployed resources to manage surge of
payment assistance programme.
Ȃ 6XSSRUWHGJRYHUQPHQWȇV&29Ζ'UHOLHI
initiatives such as relief funds for businesses
and credit relaxation such as loan
repayment moratorium.
– Encouraged adoption of eCommerce
business models, as well as use of cloud-
based solutions such as HR solutions to
minimise costs and maintain business
continuity.
growth.
– Focused on non-interest income growth
such as Cash Management, Bancassurance,
as well as derivatives such as interest rate
hedging.
– Focused on tightening operating expense
spends across the region.
TXHULHVRQ&29Ζ'ȴQDQFLDOVFKHPHVDQG
working capital loans. In short, we have had
many opportunities to ensure our customers
have seamless access to credit and other
ȴQDQFLDOVROXWLRQVGXULQJWKHFKDOOHQJLQJ\HDU
In 2020, we deployed various relief facilities in
the form of loan moratoriums and extended/
relaxed credit terms by various governments/
authorities in ASEAN. We also introduced our
own relief facilities such as Business Relief
Fund and Payment Assistance Programme for
SMEs and Restructuring and Rescheduling to
HDVHEXVLQHVVHVLQWKHLUȴQDQFLDOFRPPLWPHQW
DQGFDVKȵRZV
As a result, businesses were able to retain
QHFHVVDU\FDVKȵRZVZKLOHWDNLQJDSUXGHQW
and cautious approach to managing their
investments. Despite the many disruptions
caused by the pandemic, we witnessed a
growth in deposits in Malaysia, Indonesia,
Singapore and Cambodia.
Customer Centricity
• Engaged with customers to help them
DFFHVVDQGEHQHȴWIURPYDULRXVORDQ
moratorium schemes in our core markets,
of Malaysia, Indonesia, Singapore, Thailand
and Cambodia.
• Rolled-out a well-orchestrated regional
communications plan to channel useful
information and assist customers
throughout the moratorium period.
• Provided relief funds to help customers
Results
– Over 51% of Commercial Banking loans in
the region opted for the loan moratorium
programme as extended by each country.
– Over RM2.5 billion in relief funds approved
for Commercial Banking customers in the
region.
– Encouraging participation of over 1000
SMEs in webinars conducted to raise
awareness on the various programmes
R΍HUHGE\&Ζ0%
Ȃ $FKLHYHG<R<JURZWKLQ'HSRVLWV
– Improvement in the Group’s operating
expenses.
2021 OUTLOOK & PROSPEC TS
The ASEAN and the global economy has
EHHQKLWKDUGE\&29Ζ'LQ:HDUH
hopeful that the rapid introduction of
vaccinations will not only help the recovery
H΍RUWVEXWDOVRDFFHOHUDWHWKHHFRQRP\DW
a faster pace. While we remain committed
to support our ASEAN growth aspirations
in the post-COVID era, our key focus will be
on enhancing our value propositions for
our customers.
• &DWDO\VH60(*URZWKWe will build on
the SME segment and assist them with
WKHLUFDVKȵRZQHHGVDVZHOODVOHYHUDJH
on government guarantee schemes to
drive SME growth in all our markets.
• Maintain Asset Quality: As the global
economy continues to grapple with the
‘new normal’ in the post-COVID era, we
recognise that certain sectors such as
hotel and tourism will remain vulnerable
ZLWKVORZUHFRYHU\2XUH΍RUWVZLOOEHWR
continue to assess and improve our due
diligence mechanisms such as
onboarding, credit underwriting,
performance monitoring, in addition to
pro-actively strengthening the
fundamentals of asset quality
management.
• ΖPSURYH(ɝFLHQFLHVOur
GL΍HUHQWLDWHGDSSURDFKWRFXVWRPHUV
ZLOOLQFOXGHRXUGLJLWDOLVDWLRQH΍RUWV
which will focus on expanding our digital
banking capabilities, as well as deploying
advanced analytics for data-driven
decision making for targeted cross
selling and up selling opportunities.
• Elevate Sustainability Agenda: Over
the next 3 years, our aspiration is to
$UWLȴFLDOΖQWHOOLJHQFH$ΖWRGLJLWDOLVHSURGXFW
application and approval processes.
• Promoted greater use of online banking
solutions as a means to accelerate adoption
RIWKHQHZQRUPGXHWR&29Ζ'7KLVLV
done through the various digitalisation
initiatives such as InstaBiz, Octo Smart
virtual assistant and Electronic Virtual
Assistant.
recapitalise their businesses to be able to
manage the disruptions and cash crunch
VLWXDWLRQVGXHWR&29Ζ'
implement the Group Sustainability and
Sustainable Financing policies to guide
all decision making, and drive
responsible business practices in
Commercial Banking. Towards this, we
have already introduced relevant
environment and social standards and
guidelines for our customers.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 81

M A N AG EMENT D IS CUSSIO N AND ANALYSIS – B U S I NE S S RE V I E W

Group Wholesale Banking

We defended our business in an unprecedented market environment and demonstrated
RXUOHDGHUVKLSLQVXVWDLQDELOLW\DQGUHVSRQVLEOHEDQNLQJ:KLOVWRXURYHUDOOȴQDQFLDO
performance has been impacted by increased provisions due to elevated credit concerns amid
WKHSDQGHPLFRXUEXVLQHVVUHPDLQHGVWURQJUHSRUWLQJUHYHQXHDW50ELOOLRQZLWK
7UHDVXU\ 0DUNHWVVHHLQJ<R<JURZWKLQUHYHQXH2XUH΍RUWVRQFRVWPDQDJHPHQWKDYH
also allowed us to lower our cost by 12% YoY. In 2020, Corporate Banking approved 93% of
moratoriums as well as restructuring and rescheduling requests to support clients impacted
E\WKHSDQGHPLF:HDOVRFORVHGWKHLQDXJXUDO./Ζ%2586'6HFXUHG2YHUQLJKW)LQDQFLQJ5DWH
62)5FURVVFXUUHQF\VZDSLQDQWLFLSDWLRQRIWKHFHVVDWLRQRIWKH/RQGRQΖQWHUEDQN2΍HUHG
W H O W E A R E A N D W H AT W E D O
We are a leading Wholesale Banking franchise
in ASEAN, catering to the banking needs of
both corporate and institutional clients. Our
regional banking solutions for corporate and
5DWH/Ζ%25
by Omar Siddiq
(FICC) securities and derivatives, structured
investments and equity derivatives. Our
products are distributed across various
customer segments – from retail and high
online trading platform that provides our
clients access to Asian and US debt and equity
markets. In addition, our regional Private
%DQNLQJVHUYLFHR΍HUVFXVWRPLVHGDGYLVRU\
LQVWLWXWLRQDOFOLHQWVLQFOXGHLLQYHVWPHQW
banking services such as capital market fund
raising, corporate advisory services, mergers
and acquisitions (M&A); (ii) cash and trade
products such as cash management and trade
net-worth individuals to Corporates, Non-Bank portfolio planning and wealth management
Financial Institutions and Financial Institutions. solutions for high net-worth individuals.
Beyond our tailored solutions for corporate In line with the Group’s footprint, our key value
and institutional clients, we are also one of the proposition is our regional presence,
ȴQDQFLQJLLLȴQDQFLQJVROXWLRQVUDQJLQJIURP
traditional trade and capital expenditure
ȴQDQFLQJWRVWUXFWXUHGWUDGHYDOXHFKDLQ
SURMHFW0 $DQGOHYHUDJHȴQDQFLQJDVZHOODV
(iv) treasury and markets products such as
ȴ[HGLQFRPHFXUUHQF\DQGFRPPRGLWLHV
top brokers in the region through CGS-CIMB,
our joint-venture with China Galaxy Securities,
where we have one of the most
comprehensive research coverage in the
region, producing in-depth research analysis
FRYHULQJHTXLWLHVȴ[HGLQFRPHDQGHFRQRPLFV
in addition to our award-winning i-Trade, an
platforms and solutions. Our cross-border
regional operating model equips us with the
FDSDELOLWLHVWRR΍HULQVLJKWVRQUHJLRQDO
PDUNHWVDQGR΍HUEHVSRNHSURGXFWVZLWK
sustainable returns. In doing so, we also
deliver a best-in-class and seamless customer
experience across all markets.

W H AT O U R S TA K E H O L D E R S E X P E C T

Shareholders Customers Communities Employees Regulators

Achieve stability, respond to
customers’ needs and deliver
resilient growth and
sustainable returns.
Continuous support by
providing loan moratorium,
restructuring and
rescheduling during and
post-COVID.
Demonstrate leadership in
sustainability and responsible
banking.
Invest in building capabilities Remain responsive to the
and skills of our employees. changing market regulations
and policies such as the
FHVVDWLRQRIΖQWHUEDQN2΍HUHG
Rates (IBOR).

H O W W E C R E AT E D VA L U E I N 2 0 2 0
10% YoY 93% RM970 million 96% USD100 million
Growth in Revenue from Percentage of loan New Sustainability Linked Employees across the region Inaugural KLIBOR-USD SOFR
Treasury & Markets. moratoriums as well as Loans approved to support who completed Digital, Data, cross currency basis swap.
restructuring and sustainability causes. Design related education.
rescheduling requests
approved, to support clients
impacted by the pandemic.

Strategic Themes Material Matters &DSLWDOV$΍HFWHG

• Delivering Sustainable Financial Returns • Customer Experience • Financial
• Disciplined Execution • Sustainable Finance • Social & Relationship
• Purpose-driven Organisation

FINANCIAL PERFORMANCE
:KROHVDOH%DQNLQJFRQWULEXWHGSRVLWLYHO\WRWKH*URXSȇVUHYHQXHDW50ELOOLRQȵDW<R<:KROHVDOH%DQNLQJORDQVGHFUHDVHGE\<R<
ZKHUHDVWKHGHSRVLWVJUHZE\<R<7UHDVXU\ 0DUNHWVUHSRUWHG<R<JURZWKLQUHYHQXHZKLOH&RUSRUDWH%DQNLQJVDZDVOLJKWGLSLQ
UHYHQXHE\<R<ΖQYHVWPHQW%DQNLQJȇVUHYHQXHH[FOXGLQJHTXLWLHVEXVLQHVVZKLFKZDVIXOO\GHFRQVROLGDWHGRQ-XO\JUHZE\
<R<:KROHVDOH%DQNLQJWRWDOFRVWVUHGXFHGE\<R<UHVXOWLQJLQORZHU&RVWWRΖQFRPH5DWLR&Ζ5DWFRPSDUHGWRLQ

Wholesale Banking Loans and Deposits by Country 7RWDO:KROHVDOH 7RWDO:KROHVDOH

(%) 3URȴW%HIRUH7D[ /RDQV 'HSRVLWV 3URYLVLRQV
Singapore Others
Others 6.7%
(RM billion) (RM billion) (RM billion) (RM billion)
3.6%
6.0% Malaysia Thailand
Singapore 51.4% 3.3%
16.7%
Indonesia
0.657

9.6%
0.352

Thailand Loans Deposits

1.935

119.1

112.9

156.1

162.1

2.587

8.6%
--81.8% -5.2% 3.8% 293.5%
2
Indonesia Malaysia YoY YoY YoY YoY
17.3% 76.8% 19 20 19 20 19 20 19 20

82 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Wholesale Banking

CHALLENGES/RISKS
Mitigation Strategies Results
Increasing Credit Costs: – Introduced more rigorous Ȃ RIORDQPRUDWRULXPVDVZHOODV
– Loss of revenue and income opportunities due to the impact credit monitoring procedures restructuring and rescheduling requests
RI&29Ζ'SRWHQWLDOO\LQFUHDVLQJWKHGHIDXOWUDWHVDQG and engaged impacted clients were approved, to support clients
FUHGLWORVVHV&UHGLWFRVWLQFUHDVHGIURPLQWR proactively for restructuring impacted by the pandemic.
2.3% in 2020. and rescheduling.

Shrinking Interest Margins: – Focused on diversifying – Despite the shrinking interest margins,
– Low policy interest rates as a result of the pandemic; eroding revenue sources beyond our Net Interest Income has increased
interest margins. The average net interest margin dropped loans. by 10.6% YoY.
by 10-15bps YoY, especially in Malaysia and Indonesia.

Decelerating Business Activities: – Focused on robust cost Ȃ &RVWWRΖQFRPH5DWLRORZHUHGIURP

– Weak investor sentiments and lower risk appetites management. LQWRLQ
decreasing the pace and volume of business. Fee wallet from
investment banking across the region dropped from
86'PLOOLRQWR86'PLOOLRQLQ

OPPORTUNITIES & GROW TH DRIVER S

The year 2020 was unprecedented, with
unique socio-economic challenges across the
world. Multiple policy rate cuts by central
banks across the globe, including in our core
ASEAN markets, coupled with regulatory and
client requests on loan moratoriums have had
VLJQLȴFDQWLPSDFWRQWKHSHUIRUPDQFHRI
ȴQDQFLDOLQVWLWXWLRQV
Despite strong external headwinds, we
defended our income at a level similar to
GHPRQVWUDWLQJRXUDELOLW\WRUHPDLQ
resilient and agile in delivering sustainable
business outcomes. Our Investment Banking
WHDPFORVHGVHYHUDOKLJKSURȴOHGHDOV
including Axiata’s USD1.5 billion Sukuk, where
CIMB was the only Malaysian bank in the
syndicate, and MR DIY's RM1.5 billion initial
SXEOLFR΍HULQJ
We continued to take tangible measures to
improve our Economic, Environmental, Social
(EES) orientation and performance in our
ȴQDQFLQJDFWLYLWLHVΖQ&RUSRUDWH%DQNLQJ
built upon our responsible banking initiative
FORWA R D2 3 + FOCU S A R E A S
Purpose-driven Organisation
• Successfully approved three new high
SURȴOH6XVWDLQDELOLW\/LQNHG/RDQVWRWDOLQJ
FORVHWR50PLOOLRQLQ0DOD\VLDDORQHWR
support sustainability initiatives in reducing
carbon emissions, accelerating rural
HOHFWULȴFDWLRQDQGSURYLGLQJGLJLWDODQG
technology including internet and
communication services to focus areas.
RECOGNITION
$ZDUGV
• Best Bond House in Malaysia
• Best Equity House in Malaysia
• Best Investment Bank in Malaysia
• Best FX Bank for Interest Rates, FX Research and Market
Coverage
• Best Corporate Treasury Sales and Structuring Team
• Best Counterparty in Malaysia, Indonesia, Thailand (Asian Banks)
• Petrochemical Deal of the Year, Regional & Malaysia
• Oil and Gas Deal of the Year, Regional & Indonesia
• Best Domestic Private Bank in Malaysia
• Best for Wealth Transfer/Succession Planning in Malaysia
and succesfully extended multiple
Sustainability Linked Loans to support clients
with environmental and social related
initiatives. We also supported companies
across the region to weather the storm with a
DSSURYDOUDWHRQPRUDWRULXPDVZHOODV
restructuring and rescheduling requests
aimed at helping businesses navigate through
the impacts of the pandemic as well as sustain
their growth journey into post-COVID era.
With a strong focus on improving client
experience, we strengthened our digital
capabilities to initiate several projects across
Treasury & Markets and Private Banking. In
the long run, our objective is to build
innovative and intuitive CRM-tools for better
client relationship management. Towards this,
we remained true to our commitment to
future-proof our employees by equipping
them with skills of the future. In 2020, we
successfully rolled-out a wide-range of
immersive 3D educational programmes for
RXUVWD΍WRHQKDQFHWKHLUNQRZOHGJHRQ
digital, data, and design.
• Strengthened digital infrastructure to
HQVXUHRIZKROHVDOHEDQNLQJVWD΍
across the region were able to work-from-
home without disruptions, ensuring
seamless day-to-day business operations.
$ZDUGLQJ%RG\
Alpha Southeast Asia Best FI
Awards 2020
Alpha Southeast Asia
Treasury & FX Awards 2020
Asiamoney FX Survey 2020
The Asset Triple-A Asia
Infrastructure Awards 2020
Asiamoney Private Banking
Awards 2020
2021 OUTLOOK & PROSPEC TS
In 2021 and beyond, as we enter the
post-COVID era and the ‘new normal’,
we will continue to face operational and
growth challenges across our ASEAN
PDUNHWV+RZHYHURXUH΍RUWVZLOOEH
IRFXVHGRQ
• Disciplined execution, with clear
accountability and KPIs towards
increasing our wallet share. We will
continue to deliver value by taking a
client-centric approach, cross-selling to
improve returns and making our account
planning process more robust.
• Regionalisation of operations to improve
HɝFLHQFLHVRSWLPLVHUHVRXUFHDOORFDWLRQ
and manage capital expenditure. In the
process, we will also streamline middle
DQGEDFNRɝFHIXQFWLRQVWREHWWHU
VXSSRUWUHJLRQDOIURQWRɝFHWHDPV
7KH\HDUZLOODOVRVHHXV
• 6KDUSHQRXUFOLHQWIRFXVThis would
mean focused account planning and
XQLȴHGJRWRPDUNHWDSSURDFKWR
strengthen our position as a dominant/
preferred banker for key clients. We will
recalibrate our portfolio to maximise
returns and address tail-end credit risks.
• 6WUHQJWKHQSURȴWDELOLW\DQGJURZWK
The priority will be to grow and expand
our product suite to drive higher income,
while also enhancing asset quality.
• Accelerate digitalisation: We will
continue to drive adoption and
pervasiveness of core systems with a
focus on improving frontline capability.
$XWRPDWLRQRIPLGGOHDQGEDFNRɝFH
operations will be critical to improve
HQGWRHQGHɝFLHQFLHV

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 83

M A N AG EMENT D IS CUSSIO N AND ANALYSIS – B U S I NE S S RE V I E W

Group Transaction Banking

Despite a challenging business environment, we recorded strong growth in our
deposit balances which has been our focus in 2020. The lockdown has accelerated the
shift towards a cashless economy, an already growing trend, which further helped us
JURZRXUFDVKPDQDJHPHQWEXVLQHVV2QWKHWUDGHȴQDQFHVLGHRXUIRFXVDUHDVKHOSHG
LQFUHDVHRXUUHYHQXHZKLOHWKHPRUDWRULXPSRUWIROLRZDVHɝFLHQWO\PRQLWRUHGDQG
managed with no negative impact. Our securities services business also registered
positive growth despite market volatility.

by Rafe Haneef

W H O W E A R E A N D W H AT W E D O
:HR΍HUDZLGHUDQJHRISURGXFWVDQGVHUYLFHVFRYHULQJFDVK
PDQDJHPHQWWUDGHȴQDQFHVXSSO\FKDLQȴQDQFLQJVROXWLRQVRQOLQH
banking and securities services to best serve our clients – from large
corporates to small and medium enterprises, as well as institutional
clients across the region.
We provide comprehensive end-to-end cash management solutions
GHVLJQHGWRKHOSRXUFOLHQWVPDQDJHWKHLUFDVKLQȵRZVDQGRXWȵRZV
VDIHO\DQGH΍HFWLYHO\7KHVHVHUYLFHVDUHDOVRR΍HUHGWKURXJKRXURQOLQH
banking platform, which is accessible via our website or mobile, catering
to our clients’ business needs at their time of convenience.
2XUWUDGHȴQDQFHSURGXFWVFRYHUDFRPSUHKHQVLYHUDQJHWKDWLQFOXGHV
ERWKLPSRUWDQGH[SRUWVHUYLFHVEX\HUDQGVHOOHUȴQDQFLQJIURP
traditional trade products to structured trade and supply chain
ȴQDQFLQJVROXWLRQVȂGHVLJQHGWRFDWHUWRRXUFOLHQWVȇGLYHUVHEXVLQHVV
needs in domestic and international trade.
We also provide end-to-end securities services solutions via fund
accounting services, custody services, corporate trustee and agency
services.
Our key value proposition is our unique ability to fully facilitate
WUDQVDFWLRQVVXSSO\FKDLQVDQGWUDGHȵRZVDFURVVWKH$6($1UHJLRQ
and beyond. We are the gateway to ASEAN, empowered by our strong
networks, comprehensive digital platforms, best-in-class shariah
expertise as well as strategic alliances across the ecosystems that
represent the economic potential of this diverse region.

W H AT O U R S TA K E H O L D E R S E X P E C T

Shareholders Customers Communities Employees Regulators

Achieve stability, respond
to customers’ needs and
deliver resilient growth and
sustainable returns.
Help transition to a digital
and cashless society, and
facilitate working capital
ȴQDQFLQJWRVXSSRUW
FDVKȵRZ
Financial inclusion during 3ULRULWLVHVDIHW\R΍HU Comply to all local payment
the lockdown period across alternative work-from- gateways and cross border
the region through online home options, engage with regulations and adhere to
account opening and VWD΍DFURVVWKHUHJLRQDQG mandated policies and
deployed dropboxers and
build a learning culture. governance.
pick up services to apply to
BizChannel for online
transaction.

H O W W E C R E AT E D VA L U E I N 2 0 2 0
0.2% RM883 million 23% 65% RM35.2 million
Improvement in New limit working capital Increase in BizChannel Employees opted for Embarked on 15 regulatory
Cost-to-Income (CIR) ratio. ȴQDQFLQJOLPLWVDSSURYHGLQ clients across the region. work-from-home options. related projects.
2020.

Strategic Themes Material Matters &DSLWDOV$΍HFWHG

• Delivering Sustainable Financial Returns • Health, Safety, & Well-being • Financial
• Customer Centricity • Technology • Manufactured
• Customer Experience • Intellectual

FINANCIAL PERFORMANCE
ΖQRXU7UDQVDFWLRQ%DQNLQJSHUIRUPDQFHLQWKHUHJLRQGHFOLQHGE\ RECOGNITION
YoY, due to lower NIM, with revenue at RM2.7 billion. However, our securities $ZDUGV $ZDUGLQJ%RG\
services business continued to show a healthy growth of 6% YoY. Despite a
GHFOLQHLQUHYHQXHRXUGHSRVLWVUHFRUGHGDGRXEOHGLJLWJURZWKE\<R< Best Service Provider, Trade
The Asset Triple-A Awards
contributed by our enhanced cash management and transaction banking Finance
capabilities.
Alpha Southeast Asia
Total Revenue Deposits Best Trade Finance Solution,
(RM billion) (%) Cambodia
Transactional Banking
Thailand 1%
Malaysia
Awards 2020
8%
Malaysia
Singapore 58%
11%
Best Cash Management 7KHWK$QQXDO'HDODQG
Solution Solution Awards
-7% 14%
3.0

2.7

YoY Indonesia YoY

19 20 22%

 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


KEY RISKS & CHALLENGES
(VFDODWLQJLPSDFWVRI&29Ζ' Ȃ 0RQLWRUHGWKHFDVKȵRZDQGȴQDQFLDO
– Disrupted global business and trade, also
D΍HFWLQJFXVWRPHUVȇUHYHQXHLQFRPH
potential and their ability to service their
loans and credit facilities.
5XQQLQJWKHULVNRIXQVWDEOHV\VWHPV – Barred any and all system enhancements
– Technology vendors inability to travel to
work due to movement restrictions posed
challenges.
Increasing regulatory pressures:
– Policy rate cuts by Central Banks across the
ASEAN markets impacted revenue potential
DQGRYHUDOOȴQDQFLDOUHVXOWV
OPPORTUNITIES & GROW TH DRIVER S
The year 2020 started with a high degree of
XQFHUWDLQW\DVWKH&29Ζ'SDQGHPLFVWDUWHG
HVFDODWLQJGLVUXSWLQJHFRQRPLFDFWLYLWLHVȵRZ
of trade and commerce. Movement restrictions
impacted both people productivity and
business performance. The situation was
exacerbated as Central Banks across all our
ASEAN markets responded through policy rate
cuts and corrective measures.
Despite the challenging economy and business
environment, we recorded a very strong growth
in our deposits balances from all the countries
across the region, with an increase in Malaysia
DWΖQGRQHVLDDW6LQJDSRUHDW
7KDLODQGDWDQG&DPERGLDDW'HVSLWH
the lockdown, our cash management non-
Group Transaction Banking
Mitigation Strategies
position of our moratorium customers
through their current accounts balances.
– Implemented cost-saving initiatives, and
instilled a cost-conscious culture and
mindset across the region.
and updates during lockdown period to
ensure system stability.
– Launched BizChannel mobile banking app
with a single sign-on/view of accounts
across the region.
– Responded swiftly through repricing
strategies at both client and product levels.
– Implemented targeted strategies and
launched multiple campaigns across the
region to grow our deposit base.
business also registered a healthy growth
despite market volatility.
In keeping with our focus on improving
customer experience and digital banking
capabilities, during the year, we became the
ȴUVWEDQNWRRɝFLDOO\LQQRYDWH%L]&KDQQHO
mobile banking app, where customers can view
their accounts across Malaysia, Indonesia,
Singapore, Thailand and Cambodia, with a
single sign-on in the app. As a result, our
e-banking users continued to expand. As at
end 2020, we registered a double-digit growth
of 17% in the number of active e-banking
clients across the region.
We continue to see this promising growth
Results
Ȃ RIWKHWUDGHPRUDWRULXPORDQVKDYH
been settled
– 11% of the loans were approved for
Rescheduling and Restructuring
– 0.2% improvement in Cost-to-Income ratio
(CIR)
Ȃ XSWLPHUHFRUGHGIRURXURQOLQH
banking platform, BizChannel.
– 67% of our revenue is from CASA which is
partly impacted due to rate cuts.
Ȃ JURZWKLQ&$6$EDODQFHVGXHWRJURZWK
in deposit base.
2021 OUTLOOK & PROSPEC TS
We expect the volatility of the market to
continue in 2021, with more interest rate
cuts in the region. However, our growth
strategy in strengthening our deposits is
progressing well and for the year ahead,
we will be focused and committed to
continue to grow our deposits in the
region. We will also focus on deepening
client penetration in high-potential sectors
such as Automotive, Healthcare,
Telecommunication and Transportation.
With slow and gradual economic recovery
IURPWKHLPSDFWVRI&29Ζ'ZHZLOO
continue to focus on niche target markets
LQWHUHVWLQFRPH12ΖΖDOVRLQFUHDVHGE\
compared to the previous year, with the
increase in number of transactions.
)RURXUWUDGHȴQDQFHEXVLQHVVRXUHFRV\VWHP
solutions helped boost the revenue with new
WUDGHOLPLWRI50PLOOLRQIRUZRUNLQJFDSLWDO
ȴQDQFLQJ6LPLODUO\RXUVHFXULWLHVVHUYLFHV
trend in digital adoption into 2021. With
acceleration in digital enablement and the
associated risks, during the year, we also
rolled-out an online fraud monitoring platform
LQ6LQJDSRUHDVSDUWRIRXULQLWLDWLYHVWRR΍HU
our customers a safe, secure and seamless
banking experience.
to grow our trade business. On the digital
front, we will continue to invest in
Transaction Banking’s front, middle and
EDFNRɝFHSODWIRUPVPDLQO\WRHQDEOH
automation, support business scalability
and strengthen our internal processes to
enhance customer experience.

FORWA R D2 3 + FOCU S A R E A S
Delivering Sustainable Financial Returns
• Surpassed the 2020 target with the
HFRV\VWHPȴQDQFLQJSURJUDPPHRQERWK
Working Capital and Value Chain Finance.
• Won the Alpha Southeast Asia Award for
Best Trade Finance Solution in Malaysia
2020 for the Proton Ecosystem Programme.
• Met 100% targets set for the former
mid-term strategy Forward23+.
Customer Centricity
• Successfully implemented BizChannel
Customer Experience (CX) project to
execute upgrade/downgrade BizChannel
packages within the same working day,
ZKLFKIXOȴOOHGRIWKHLQWHQGHGVXFFHVV
metrics.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 

M A N AG EMENT D IS CUSSIO N AND ANALYSIS – B U S I NE S S RE V I E W

Group Islamic Banking

We responded rapidly to the unprecedented COVID-19 crisis and implemented
extraordinary measures and changes in the way we work and how we serve our
FXVWRPHUVGHVSLWHVHYHUHȴQDQFLDORSHUDWLRQDOPRYHPHQWDQGVDIHW\DQGKHDOWK
FRQVWUDLQWV:HHPEUDFHGWKHOHDGHUVKLSJXLGDQFHSURYLGHGE\WKHFRXQWU\DQGȴQDQFLDO
UHJXODWRUVDQGGHYHORSHGUHOLHISDFNDJHVDQGSURJUDPPHVIRURXUȴQDQFLDOO\LPSDFWHG
FXVWRPHUV:HWRRNVWURQJSURDFWLYHDFWLRQWREHWWHUPDQDJHȴQDQFLDODQGQRQȴQDQFLDO
risks through prudent capital allocation and industry advocacy, while working with our
FROOHDJXHVWREHWWHUVHUYHFXVWRPHUVGXULQJWKLVGLɝFXOWSHULRG:HFRQWLQXHGLQRXU
H΍RUWVWRHQDEOHORFDO60(VWREXLOGWKHLUUHVLOLHQFHDQGUHFRYHU\H΍RUWVWUDLQDQG
GHYHORSPLFURHQWUHSUHQHXUVDQGGHYHORSȴQDQFLQJVROXWLRQVIRUWKHJUHHQHFRQRP\
sector.
E\$KPDG6KDKULPDQ0RKG6KDUL΍

W H O W E A R E A N D W H AT W E D O
:HDUHWKHΖVODPLFEDQNLQJDQGȴQDQFLDOVHUYLFHVIUDQFKLVHRIWKH*URXS
with an extensive suite of innovative Shariah-compliant products and
VHUYLFHV2XUVROXWLRQVLQFOXGHȴQDQFLQJVXNXNLQYHVWPHQWEDQNLQJ
transaction banking, banca-takaful and securities services for individual,
commercial, corporate and institutional customers across ASEAN.
W H AT O U R S TA K E H O L D E R S E X P E C T
In conducting Islamic business, we monitor and ensure good Shariah
governance and compliance across the Group. With the execution of our
Islamic First strategy, we aim to extend the value proposition of Islamic
products to our customers and the wider public. We aspire to provide
ZRUOGFODVVΖVODPLFEDQNLQJDQGȴQDQFHVROXWLRQVZKLFKZLOOSURJUHVVLYHO\
integrate environmental, social and governance factors via a value-based
DSSURDFKDKDOOPDUNRIΖVODPLFȴQDQFH

Shareholders Customers Communities Employees Regulators

Achieve stability, respond to
customers’ needs and deliver
resilient growth and
sustainable returns.
3URYLGHDGHTXDWHȴQDQFLDO
facilities to support
operational and growth plans
GXULQJDQGSRVW&29Ζ'
Support the disadvantaged
micro businesses by
equipping them with relevant
skills and providing access to
ȴQDQFH
Invest in building capacities
and skills of the employees,
especially to build digital and
technical skillsets that will
FRPSOHPHQWΖVODPLFȴQDQFH
expertise to deliver relevant
solutions.
Remain responsive to the
changing market regulations
and policies to relieve
economic burden to customers
DVDUHVXOWRIWKH&29Ζ'
pandemic.

H O W W E C R E AT E D VA L U E I N 2 0 2 0
19% RM57 billion
of Group Islamic Banking *URVVȴQDQFLQJZDV
revenue was contributed granted automatic
by Indonesia. Shariah-compliant
moratorium for individual
and SME customers.
30 micro-SMEs
7KHȴUVW0LFUR%L]5HDG\
cohort received grants,
training and capacity
development from CIMB
Islamic and its partners.
30
CIMB employees from
7 divisions completed the
Associate Qualification in
Islamic Finance, an Islamic
banking industry certification.
40% Islamic
VKDUHRIERRN
)RUȴQDQFLQJWRPHHW%DQN
Negara Malaysia’s (BNM)
ȴQDQFLDOVHFWRUEOXHSULQW
aspiration for Islamic
banking industry.

Strategic Themes Material Matters &DSLWDOV$΍HFWHG

• Delivering Sustainable Financial Returns • Customer Experience • Financial
• Disciplined Execution • Sustainable Finance • Social & Relationship
• Purpose-driven Organisation (Value-based Intermediation) • Natural

FINANCIAL PERFORMANCE RECOGNITION

2YHUDOOUHJLRQDOΖVODPLFȴQDQFLQJLQFOXGLQJDVVHWVXQGHU5HVWULFWHG$JHQF\ΖQYHVWPHQW $ZDUGV $ZDUGLQJ%RG\
$FFRXQWUHJLVWHUHGȴQDQFLQJJURZWKRI<R<FORVLQJWKH\HDUDW50ELOOLRQ
JURVVȴQDQFLQJ7KHJURZWKPRPHQWXPIRUȴQDQFLQJDQGGHSRVLWVFRQWLQXHGWREH • Winner, Best Islamic Bank,
supported by the Islamic First strategy, mainly contributed by the consumer and SME Malaysia ȴIWKFRQVHFXWLYH
Islamic Finance News
segments. Despite the challenging environment, CIMB Islamic Bank Berhad’s revenue \HDU
JUHZ<R<DQGLWVFRVWWRLQFRPHUDWLRZHQWGRZQWRIURPDUHVXOWRI Awards 2020
• Winner, Best Islamic
strict cost discipline. Investment Bank
Regionally, CIMB Niaga Syariah in Indonesia reported accelerated revenue growth of • Best Social Impact Islamic Alpha Southeast Asia
DQGPDLQWDLQHGLWVUDQNDVWKHȴIWKODUJHVWΖVODPLFEDQNLQΖQGRQHVLDLQWHUPVRI Finance House in Asia Inaugural ESG Green
DVVHWVL]HDVDW6HSWHPEHUSXEOLVKHGȴJXUHV
Finance Awards 2020
Gross Financing Deposits & IA Revenue • Best Ringgit Sukuk House of
(RM billion) (RM billion) (RM million) the Year
• Best Corporate Sukuk
• Best Socially Responsible Alpha Southeast Asia
Investment (SRI) Sukuk WK'HDODQG6ROXWLRQ
• Most Innovative Islamic Awards 2020
100.0

103.7

2,728

2,762

3.7% 8.4% 1.2% Finance Deal of the Year

103

112

YoY YoY YoY • Best Islamic Subordinate

19 20 19 20 19 20
Perpetual Bond
Note: including RAIA

86 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Islamic Banking

CHALLENGES/RISKS
Adapting and Developing Islamic
)LQDQFLQJ5HOLHI3DFNDJHVDQG
Programmes:
– Creating relief packages which reduced the
ȴQDQFLDOKDUGVKLSRIWKRVHD΍HFWHGE\WKH
pandemic under the principle of ‘Ihsan’.
Mitigation Strategies
– Swiftly and proactively developed solutions
to guide operations, systems treatment and
legal documentation to accommodate
ȵH[LEOHSD\PHQWDVVLVWDQFHSURJUDPPHV
and relief packages for individuals and
businesses.
Results
– Handbooks were developed to support
roll-out of solutions in line with the
guidelines prescribed by the regulator as
well as the Shariah Advisory Council (SAC),
ZKLFKHQVXUHGWKDWD΍HFWHGFOLHQWVZHUH
not unduly burdened with additional
payments.

Planning Capital Allocation:
– Loss of income due to the impacts of
&29Ζ'SRWHQWLDOO\LQFUHDVLQJWKHGHIDXOW
rates and credit losses in the absence of
additional credit provisions.
– Developed controls and actions in response – CIMB Islamic Bank CET1 was 13.3% in 2020,
WRLGHQWLI\LQJNH\ULVNVFUHGLWULVNOLTXLGLW\ which enabled the bank to extend payment
risk, negative carry risk and earnings risk. moratorium and assistance to eligible
customers and companies.

Managing Decelerating Business: – Streamlined our cost-and-spend behaviour Ȃ 2YHUDOORSHUDWLQJFRVWIHOOE\50PLOOLRQ

– Rising costs due to lower product demand, to extract further savings. as discretionary spending was cut
movement control orders, digitalisation and VLJQLȴFDQWO\
automation delays, and operational slow-down.

OPPORTUNITIES & GROW TH DRIVER S

The year 2020 was unprecedented, with the
ZRUOGFRSLQJDQGDGMXVWLQJWRWKH&29Ζ'
pandemic. The health crisis and the resulting
movement control restrictions caused massive
disruptions and negative socio-economic
impact globally. Market regulators and
ȴQDQFLDOLQVWLWXWLRQVWRRNDFWLRQWRPDQDJH
DQGPLWLJDWHWKHȴQDQFLDOLPSDFWRQ
individuals and businesses. We made and
FRQWLQXHWRPDNHVLJQLȴFDQWH΍RUWVWR
prioritise the safety of our customers, while
continuing to serve them and minimise
business disruptions. We also took every
precaution to ensure the well-being of our
employees by maintaining strict safety
SURWRFROVDWWKHRɝFHDQGHQDEOLQJD
VLJQLȴFDQWQXPEHURIVWD΍WRZRUNIURPKRPH
Although we were negatively impacted by the
multiple policy rate cuts in 2020, the strength
of our people and resources enabled us to
respond rapidly to our customers and develop
ΖVODPLFȴQDQFLQJUHOLHISDFNDJHVDQG
programmes in a very short time frame. We
engaged the industry and the regulator
proactively to ensure that our solutions were We further moved towards the streamlining of
aligned to the Islamic banking industry. process , documentation and Shariah contract
IRUDOOIXQGHGWUDGHȴQDQFLQJSURGXFWVZKLFK
Our continuous focus on innovation providently
IDFLOLWDWHGDȵH[LEOHDSSURDFKIRUIXQGHGWUDGH
enabled the bank to provide an industry-wide
products during the moratorium phase. This
liquidity solution by introducing Islamic
VLPSOLȴFDWLRQRISURFHVVZDVDFDWDO\VWLQ
collateralised commodity Murabahah (CCM),
LQFUHDVLQJWKHΖVODPLFWUDGHȴQDQFLQJDYHUDJH
PDNLQJ&Ζ0%WKHȴUVWEDQNLQ0DOD\VLDWR
EDODQFHE\
introduce such a solution. We also rolled-out
an awareness and capacity-building exercise, We also worked with our colleagues in
ZKLFKOHGRWKHUΖVODPLFȴQDQFLDOLQVWLWXWLRQV FRPPHUFLDOEDQNLQJWRSURPRWHȴQDQFLDO
to sign the CCM agreement. This widened the inclusion through the launch of MicroBizReady
ability of Malaysia’s Islamic money market to in October, with an inaugural group of 30
raise short-term liquidity, which will help entrepreneurs from our ongoing CSR
FXVKLRQWKHHFRQRPLFLPSDFWVRIWKH&29Ζ' SURJUDPPHVZLWKWKH%DQGPLFUREXVLQHVV
health crisis. segments receiving critical business skills
training towards growing incomes for this
We were the joint bookrunner for the issuance
vulnerable segment in partnership with premier
of RM203.6 million in Islamic convertible
educational institutions. We continued our
redeemable preference shares (CRPS), a major
H΍RUWVZLWKFRPSDQLHVLQWKHJUHHQHFRQRP\
milestone in the development of Islamic equity
VHFWRUWRREWDLQȴQDQFLQJZLWKDSLSHOLQHRI
market for us, as it is an area that is ripe for
opportunities in these sectors for 2021.
innovation. We look forward to spurring the
growth of the Islamic equity capital markets
through new shariah compliant equity
solutions.

FORWA R D2 3 + FOCU S A R E A S 2021 OUTLOOK & PROSPEC TS

Delivering Sustainable Financial Returns
• Continued to identify and tap opportunities to grow the Islamic
ȴQDQFHDQGHFRV\VWHPWREHWWHUVHUYHWKHJURZLQJ+DODOHFRQRP\
with a focus on food, pharmaceuticals and cosmetics, modest
fashion, and Muslim-friendly travel sectors.
• Continued focus on our HalalBizReady initiative to help Halal SMEs
JURZDQGREWDLQWKHQHHGHGFHUWLȴFDWLRQDVZHOODVWRLQFUHDVHWKHLU
understanding of sustainability in order to help build the capacity of
export-ready SMEs to grow continuously beyond their borders.
Purpose-driven Organisation
• Continued integration of Value-based Intermediation (VBI) into our
business strategies, to better drive business decisions based on true
FRVWVDQGEHQHȴWVWREXVLQHVVDQGRXUVWDNHKROGHUV7KHJUHDWHU
REMHFWLYHLVWRFDWDO\VHVRFLDOLPSDFWDQGVRFLDOȴQDQFHYLDPLFUR
entrepreneur programmes that empower underserved communities
WRJDLQDFFHVVWRȴQDQFLDOVHUYLFHVDQGVROXWLRQV
• Continued prioritisation of responsible banking products aligned
with VBI through contributions to environmentally-focused projects
and initiatives via our EcoSave Savings Account-I where a total of
0.2% is contributed by the bank on total average portfolio balance
saved by customers.
In 2021, we will continue to grow and innovate to serve our
FXVWRPHUVEHWWHULQWKHΖVODPLFȴQDQFHVSDFH2XUIRFXVZLOOEHRQ
• enabling businesses in the green and halal sectors to navigate
through the impacts of the pandemic with resilience as well as
sustain their growth journey into post-COVID era.
• working with our clients to maintain Shariah-compliant status, as
ZHOODVIDFLOLWDWLQJKDODOFHUWLȴFDWLRQZKHUHRSSRUWXQLW\DULVHVWR
ensure both Islamic institutional as well as customer demands
are met.
• increasing customers’ resilience into the future, with a stronger
DSSURDFKRQSURPRWLQJWKHLPSRUWDQFHRIȴQDQFLDOSODQQLQJDQG
wealth preservation.
• catalysing Malaysian SMEs to transition towards sustainability
through GreenBizReady, a one-stop sustainability solution that
HPSRZHUV60(VZLWKȴQDQFLDOVROXWLRQVDQGLQFHQWLYHVVXFKDV
VXVWDLQDELOLW\OLQNHGȴQDQFLQJEHQHȴWVDFFHVVWRVXVWDLQDELOLW\
VHUYLFHSURYLGHUVWUDLQLQJDQGFDSDFLW\EXLOGLQJFHUWLȴFDWLRQDQG
advisory services, and business matching with support from
industry leaders and government agencies.
ȏ FRQWLQXLQJH΍RUWVWRȴQDQFHEXVLQHVVHVIURPWKH%DQGPLFUR
segments in priority or high-potential sectors that will contribute
to shape a green economy.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 87

M A N AG EMENT D IS CUSSIO N AND ANALYSIS – B U S I NE S S RE V I E W

CIMB Digital Assets

KDVEHHQDQXQSUHFHGHQWHG\HDUIRUDOOEXWLWKDVDOVREHHQDGHȴQLQJ\HDUIRU
us where our digital businesses are concerned. As physical activity curtailed and public
spaces shuttered in the face of lockdowns, the acceleration of digital adoption became
synonymous with the new norm, and the need to build digital plays that are future-proof
has never been more acute. Through active pivots and strategic measures, we have
successfully navigated pandemic-driven challenges thus far and outperformed our key
growth targets for the year. Our TNG-Ant Group joint venture doubled its user base, as
did our digital bank in the Philippines, which saw triple-digit growth in its balance sheet
year-on-year. We remain optimistic on the potential and trajectory of our digital assets,
and we have clear strategic postures going into 2021 in terms of driving franchise growth
and value.
E\(΍HQG\6KDKXO+DPLG

W H O W E A R E A N D W H AT W E D O
CIMB Digital Assets (CDA) comprises CIMB’s portfolio of digital businesses
and ventures, which today includes Touch ‘n Go and TNG Digital
(collectively Touch ‘n Go Group), as well as CIMB’s digital bank businesses in
the Philippines and Vietnam.
In addition to driving strategy, growth and overseeing the execution of
these businesses, our focus extends towards spearheading value creation
of CIMB's investments in these franchises through equity and non-equity
partnerships.
Ant Group has allowed the franchise to leapfrog into the retail payments
space, and today operates Malaysia’s leading e-wallet.
Also within the ambit of CDA is the Group’s start-up digital bank businesses
in the Philippines (CIMB PH) and Vietnam (CIMB VN). CIMB PH continues to
lead the way as one of the fastest growing banks in ASEAN, whilst CIMB VN
is gaining recognition as it continues its transformation journey towards a
GLJLWDOȴUVWPRGHO
We also maintain general oversight in the digital bank space for the Group,
7RXFKȆQ*R71*DUJXDEO\0DOD\VLDȇVȴUVWȴQWHFKFRPSDQ\KDVEHHQ in addition to platform-centric and ecosystem-based developments,
Malaysia’s pioneering cashless payments platform centred on mobility and FROODERUDWLRQVDQGWUHQGVLQȴQDQFLDOVHUYLFHV
transportation for over 20 years. TNG Digital (TNGD), our joint venture with

W H AT O U R S TA K E H O L D E R S E X P E C T

Shareholders Customers Communities Employees Regulators

Long-term returns and 'L΍HUHQWLDWHGYDOXH Financial inclusivity, Exposure to leading-edge digital Innovation, digital adoption and
proliferation of high-growth, propositions and best-in-class accessibility and alternative EXVLQHVVPRGHOVȴQDQFLDO IXWXUHSURRȴQJRIȴQDQFLDO
value-accretive digital digital platform experiences. GLJLWDOSODWIRUPVIRUȴQDQFLDO technology and forging of services delivery.
businesses. services. strategic partnerships.

H O W W E C R E AT E D VA L U E I N 2 0 2 0
123.4% YoY 11.5 million RXWRI 82.7% YoY HZDOOHWLQ0DOD\VLD
Growth in number of e-KYCed TNG eWallet users Customers of CIMB PH that Growth in number of The TNG eWallet captured 66%
registered users for the <R<JURZWK are new to banking. FXVWRPHUVLQ&Ζ0%3+WR DQGPDUNHWVKDUHRI
TNG eWallet, to 15.2 million; established brand trust and million; fastest growing digital eTunai and ePenjana
path to monetisation foundation for future digital bank and Best Employer campaigns respectively.
now set. ȴQDQFLDOVHUYLFHV Brand in the Philippines.

PERFORMANCE HIGHLIGHTS RECOGNITION

Despite challenging market environments, we have outperformed our key growth targets for
2020. TNGD recorded triple-digit growth in number of registered users, underpinned by the $ZDUGV $ZDUGLQJ%RG\
TNG eWallet’s strong performance across the Malaysian government’s eTunai and ePenjana
initiatives, as well as a general uptick in demand for cashless services. CIMB PH also • Best Digital Bank – Global Banking &
continued to grow at scale, breaching 3 million customers as at end-2020, merely two years Philippines 2020 (CIMB PH) Finance Review
since we started operating. Our deposit book in the Philippines grew almost tenfold during
the year, spurred by our strong digital propositions in partnership with GCash, as well as a • Innovative Digital Bank of
PDUNHGLQFUHDVHLQVDYLQJVSURSHQVLW\DVDUHVXOWRI&29Ζ' the Year – Philippines The European
No. of Customers Deposit Balance Loan Balance 2020 (CIMB PH)
(million) (RM million) (RM million)
• Best Employer Brand Employer Branding
Award – Philippines 2020 Institute & World HRD
(CIMB PH) Congress
77

17

82.7% 858.3% 442.5%

1.69

3.08

737

• Best New Digital Bank Global Banking &

93

YoY YoY YoY

FY19 FY20 FY19 FY20 FY19 FY20 – Vietnam 2020 (CIMB VN) Finance Review

Registered Users Annual Active Users No. of Merchants

(million) (million) (’000)
15.2
6.8

123.4% 148.7% 149.7%

11.5

10.5

118

293
4.2
1.3

YoY YoY YoY

FY19 FY20 FY19 FY20 FY19 FY20
eKYC-ed users

88 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 CIMB Digital Assets

CHALLENGES/RISKS
Pandemic-driven movement
restrictions:
– Impacted volumes in mobility,
transit as well as general retail
transactions
Mitigation Strategies
TNGD
– Shifted focus towards essential
services and online from the onset
of lockdowns, managed growth
strategically
Results
TNGD
Ȃ ΖQLWLDOGHFOLQHLQWUDQVDFWLRQYROXPHVR΍VHWE\KHDOWK\QXPEHUVIRURQOLQH
and essential services, user stickiness captured and subsequently
leveraged during recovery phases
– Merchant growth exceeded targets for the year as SMEs began shifting to
cashless/digital during pandemic

Decelerated business CIMB PH CIMB PH

activities:
– Disrupted economic growth,
deprioritised expansion
agendas, shifts in focus
towards survival and
sustainability
Ȃ 7KURWWOHGDFTXLVLWLRQH΍RUWVDQG
cost, refocused on existing
customer base to deliver higher
quality deposits and loans
cross-selling
CIMB VN
Ȃ ΖQWHQVLȴHGH΍RUWVWRZDUGVEXLOGLQJ
digital capability
– Improved deposit cash-in rate to 55% from 36.5% in the preceding year
– Average deposit balance per cashed-in customer increased by over 300%
against prior year
– Triple-digit growth for both deposit and loan balances
CIMB VN
– First in market to implement e-KYC solution, successfully piloted use case
in partnership with Toss towards the end of 2020

6KLIWVLQRSHUDWLQJQRUPVDQG TNG TNG

consumer behaviour:
– Accelerated digital adoption,
more acute demands for
best-in-class digital services,
competition ramping up digital
H΍RUWV
– Undertook multiple optimisation
strategies to focus on key levers,
recalibrated views on business
model and potential
transformative pathways
Ȃ 5)Ζ'VDOHVFRQWLQXHGWRJURZGHVSLWHSDQGHPLFDQGGHFUHDVHGWUDɝFDQG
WUDQVDFWLRQYROXPHVWRPLOOLRQWDJVIURPPLOOLRQLQWKHSUHFHGLQJ
year
– Number of TNG cards linked to TNG eWallet (via PayDirect), increased
<R<
– Management team refreshed, medium-term strategy for TNG business
developed to be undertaken 2021 onwards

OPPORTUNITIES & GROW TH DRIVER S

Much has been documented about 2020 and
WKHIDUUHDFKLQJH΍HFWVRIWKH&29Ζ'
pandemic on people, businesses and operating
norms; and CDA’s stable of businesses were not
spared. Lockdowns restricted activities and thus
dampened volumes. Planned initiatives were
delayed or cancelled, requiring aggressive
recalibrations to ensure continued business
momentum. Regulatory measures and economic
slow-downs have heightened caution on
expansion initiatives as we continued building
our start-up franchises.
Despite the challenges, we have emerged
stronger than before through a combination of
aggressive pivots and strategic decisions in view
of market movements and the new norm. TNG
PDQDJHGWRJURZLWV5)Ζ'VDOHVWRUHDFK
PLOOLRQWDJVGHVSLWHVLJQLȴFDQWO\ORZHUWUDɝF
volumes throughout 2020. We also recorded a
marked increase in PayDirect-linked TNG cards,
signalling accelerated shifts towards the eWallet
platform. TNGD successfully answered the call
for increased cashless payments avenues during
HDUO\ORFNGRZQVWDJHV:KLOVWRɞLQHYROXPHV
dipped, we maintained strong volumes for online
and essential services transactions from the
onset, and continued to expand our merchant
QHWZRUNH΍HFWLYHO\DVWKH71*H:DOOHWJDLQHG
ubiquity. The vast acceptance of the TNG eWallet
allowed us dominate the government’s eTunai
and ePenjana initiatives and grow our base
exponentially to 15.2 million registered users, of
which 11.5 million have been electronically
KYC-ed.
In the Philippines, CIMB PH continued to acquire
VWURQJO\HQGLQJWKH\HDUZLWKPLOOLRQ
customers. Our partnership with GCash and joint
digital propositions remained attractive to the
market, and we have continued to be one of the
most accessible digital banks in the Philippines
during the crisis. It is estimated that a third of
our customers are new to banking. Throughout
2020, we successfully shifted our focus towards
strengthening deposit and asset quality, and
KDYHPDGHVLJQLȴFDQWOHDUQLQJVLQSLORWLQJGLJLWDO
lending as we continued to ride out the
pandemic. In Vietnam, we maintained focus on
our transformative agenda for CIMB VN,
completing several key digital initiatives including
EHLQJWKHȴUVWEDQNWRODXQFKH.<&FDSDELOLWLHV
and piloting use cases with platform partners in
preparation for digital growth.

FORWARD23+ FOCUS 2021 OUTLOOK & PROSPEC TS

AREAS
Selective Digital Investments
• Proliferate focused investments
in key digital businesses and
grow these ventures as
attacker franchises, leveraging
on equity and non-equity
partnerships.
Technology, Analytics &
Digital Plays
• Through our digital ventures,
pursue new capabilities in tech,
data and analytics to deliver
GL΍HUHQWLDWHGVHUYLFHVYDOXH
propositions and customer
experience that are accretive to
the Group.
Sustainable Returns, Value-
driven
• Focused on long-term growth
and creating strategic hedges
for the future in terms of
platform economics, new
revenue streams, and valuation
upside.
As we go deeper into the “post-COVID” era in 2021, we expect digital adoption and digital plays to continue accelerating
DQGEHPRUHUHOHYDQWWKDQHYHUΖQDUHDVRISD\PHQWVDQGȴQDQFLDOVHUYLFHVZHH[SHFWDGMXVWPHQWVWRWKHQHZQRUPWR
be positive for digital businesses if executed with the right strategies. CDA’s businesses have weathered 2020 on the
right footing, and 2021 will see us shift towards monetisation and proliferating value in our franchises.
• On the TNG front, we have established a strategic blueprint and a recalibrated leadership team. Our focus in 2021
ZLOOEHRQVWUHQJWKHQLQJUHYHQXHVWUHDPVDQGLPSURYLQJȴQDQFLDOUHWXUQVDVZHOODVEXLOGLQJFRVWGLVFLSOLQH:HZLOO
be expanding product potential anchored on RFID use cases, and also injecting innovation in our product designs and
commercial models. Data and technology will be a vital area, and will undergo enhancements as we begin to look for
longer-term alternative avenues in which TNG can evolve as a franchise, whilst continuing to operate its core mobility
and transportation businesses in a robust fashion.
• TNGD KDVDFTXLUHGVLJQLȴFDQWVFDOHDQGLVQRZWKHPDUNHWOHDGHULQ0DOD\VLDȇVHZDOOHWVSDFHZLOOVHHXVIRFXV
RQPRQHWLVDWLRQRIRXUXVHUEDVHDVZHZRUNWRZDUGVUROOLQJRXWȴQDQFLDOVHUYLFHVRQWKH71*H:DOOHW:HZLOO
sharpen our merchant strategy with new value-added services with the goal of becoming the largest merchant
acceptance platform by end-2021. In the medium to long term, we will also pursue potential corporate exercises for
the JV to deliver accretive value to CIMB Group franchise.
• CIMB PH has become the Group’s model digital bank and is expected to continue operating on an accelerated
JURZWKWUDMHFWRU\$NH\REMHFWLYHLQLVWREHJLQVFDOLQJGLJLWDOOHQGLQJR΍HULQJVDQGGULYHUHYHQXHDVZHVWDUW
FKDUWLQJDSDWKWRSURȴWDELOLW\LQWKHQH[WIHZ\HDUV7HFKQRORJ\DQGGDWDDQDO\WLFVZLOOFRQWLQXHWREHWXUQNH\VWRRXU
business model, which will be enhanced as we launch credit products. Our partnerships strategy has been pivotal to
RXUHDUO\VXFFHVVDQGZLOOVHHXVGHHSHQFROODERUDWLRQVDVZHFRQWLQXHWRSXWȴQDQFLDOVHUYLFHVRXWWRPDUNHW
digitally via ecosystems.
• CIMB VN has laid the foundations required to operate and scale as a digital bank in Vietnam. 2021’s focus will involve
activating our capabilities by pursuing strategic partners and rolling out use cases as we begin to tackle the market on
DGL΍HUHQWLDWHGEDVLV&XVWRPHUDFTXLVLWLRQLVH[SHFWHGWRUDPSXSDVZHFRQWLQXHQDYLJDWLQJWKHPDUNHWVHOHFWLYHO\
and strategically with the right partners.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 89

LEADERSHIP

Board of
Directors
BOAR D COMPOSITION

1 6 2
Senior Independent Non-
Independent Directors Independent
Director Directors

DATUK MOHD NASIR AHMAD

Chairperson/Independent Director

DATO’ ABDUL RAHMAN AHMAD TEOH SU YIN

*URXS&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU Senior Independent Director
(Appointed on 10 June 2020)

ROBERT NEIL COOMBE DATO’ MOHAMED ROSS MOHD DIN

Independent Director Independent Director

90 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Board of Directors

GENDER N AT I O N A L I T Y

7 Male 7 Malaysians
3 Female 3 Non-Malaysians

AGE GROUP LENGTH OF TENURE

2 50%
3
40%

5
10%
50 years & below 5 years & above
51 years – 60 years 2 years – 5 years DATO’ LEE KOK KWAN
61 years – 70 years 0 year – 2 years Non-Independent Director

AFZAL ABDUL RAHIM DIDI SYAFRUDDIN YAHYA

Independent Director Independent Director

SHULAMITE N K KHOO SERENA TAN MEI SHWEN

Independent Director Non-Independent Director
(Appointed on 15 May 2020) (Appointed on 30 September 2020)

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 91

LEADERSHIP

Board of
Directors’ Profile

DATUK MOHD NASIR Nationality | Malaysian DATO’ ABDUL RAHMAN Nationality | Malaysian
AHMAD Age | 66 AHMAD Age | 51
Chairperson/ Group Chief Executive
Gender | Male Gender | Male
Independent Director 2ɝFHU([HFXWLYH'LUHFWRU
Date of Date of
Appointment | 20 July 2015 Appointment |10 June 2020
Length of Tenure | 5 Years Length of Tenure | Less than
BR GN 1 Year
AC CC RC

Q U A L I F I C AT I O N Q U A L I F I C AT I O N
ȏ )HOORZ$VVRFLDWLRQRI&KDUWHUHG&HUWLȴHG$FFRXQWDQWV$&&$ • Chartered Accountant, Malaysian Institute of Accountants,
United Kingdom Malaysia
ȏ &KDUWHUHG$FFRXQWDQW0DOD\VLDQΖQVWLWXWHRI$FFRXQWDQWV0Ζ$
• Chartered Accountant, Institute of Chartered Accountants England
Malaysia
ȏ 0DVWHUVLQ%XVLQHVV$GPLQLVWUDWLRQ)LQDQFH8QLYHUVLWL DQG:DOHVΖ&$(:(QJODQG
Kebangsaan Malaysia, Malaysia ȏ 0DVWHURI$UWV(FRQRPLFV8QLYHUVLW\RI&DPEULGJH(QJODQG

ARE A S OF E XPERTISE ARE A S OF E XPERTISE

• Accounting and Finance, Operations, Governance, Strategy • Corporate Leadership, Strategy Development and Execution, Asset
Development and Implementation
Management, Private Equity, Corporate Advisory, Accounting and
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S Audit
Listed Entities (Other than CIMBGH)
• Nil D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S

Public Companies Listed Entities (Other than CIMBGH)

• Chairperson/Independent Director of CIMB Bank Berhad • Commissioner of PT Bank CIMB Niaga TBK
ȏ &KDLUSHUVRQΖQGHSHQGHQW'LUHFWRURI&Ζ0%%DQN3/&&DPERGLD • Non-Independent Director of CIMB Thai Bank PCL
• Independent Director of SIRIM Berhad
Public Companies
R E L E VA N T E X P E R I E N C E ȏ &KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRURI&Ζ0%%DQN%HUKDG
Datuk Mohd Nasir Ahmad was appointed as Chairperson/
Independent Director of CIMB Group Holdings Berhad on 20 October R E L E VA N T E X P E R I E N C E
2018. He was the President of Malaysian Institute of Accountants
'DWRȇ$EGXO5DKPDQ$KPDGZDVDSSRLQWHG([HFXWLYH'LUHFWRUDQG
0Ζ$IURP$XJXVWWR-XO\ΖQ6HSWHPEHUKHZDV
elected as a Council Member of the Association of Chartered *URXS&KLHI([HFXWLYH2ɝFHURI&Ζ0%*URXS+ROGLQJV%HUKDGDQG
&HUWLȴHG$FFRXQWDQWV$&&$8.DQGUHHOHFWHGLQ6HSWHPEHU
and November 2019.
He brings with him vast experience in the areas of leadership,
PDQDJHPHQWȴQDQFHDQGDFFRXQWLQJZKLFKVSDQVRYHU\HDUV
having started his career as a Trainee Accountant with Tenaga
&KLHI([HFXWLYH2ɝFHURI&Ζ0%%DQN%HUKDGRQ-XQH
He has more than 20 years of leadership experience across multiple
LQGXVWULHVZKHUHKHKHOG&KLHI([HFXWLYH2ɝFHUSRVLWLRQVLQ
well-established organisations such as Malaysian Resources
1DVLRQDO%HUKDG71%LQDQGPRYLQJRQWRKROGYDULRXV
positions in the Finance Division.
ΖQ-DQXDU\'DWXN0RKG1DVLUZDVVHFRQGHGWR71%ȇVVXEVLGLDU\
company, Malaysia Transformer Manufacturing Sdn Bhd as the
)LQDQFLDO&RQWUROOHUEHIRUHEHLQJDSSRLQWHGDV&KLHI([HFXWLYH2ɝFHU
Corporation Berhad, Media Prima Berhad, Ekuiti Nasional Berhad
and Permodalan Nasional Berhad. Prior to joining CIMB, Dato' Abdul
Rahman was with Sime Darby Berhad and Velesto Energy Berhad as
Non-Executive Non-Independent Chairman.
Dato' Abdul Rahman is currently a panel member of Kumpulan Wang
&(2LQ-XQH $PDQDK1HJDUD0DOD\VLDȇVQDWXUDOUHVRXUFHIXQGPDQDJHGE\%DQN
In January 2000, he joined Sharikat Permodalan Kebangsaan Berhad Negara Malaysia. Besides being a member of Association of Banks in
as its CEO. On 1 June 2001, he was appointed CEO of Perbadanan 0DOD\VLD$%0KHDOVRVLWVRQWKH%RDUGRI)LQDQFHΖQGXVWU\
Usahawan Nasional Berhad, a position he held until his retirement on &ROOHFWLYH2XWUHDFK)Ζ1&2DQGLVDFRPPLWWHHPHPEHURIWKH-RLQW
1 June 2011.
&RPPLWWHHRQ&OLPDWH&KDQJH -&
Datuk Mohd Nasir also holds directorships in private companies
namely Prokhas Sdn Bhd and CIMB EOP Management Sdn Bhd and is
a Trustee of Yayasan Canselor UNITEN.

BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE
BOD AC BRCC GNRC BOD AC BRCC GNRC
Chairperson Member Member Member Member
18/18 15/15 5/5 18/18 10/10 – – –
Declaration Declaration
ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK
any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company
ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV
nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any
relevant regulatory bodies in 2020 relevant regulatory bodies in 2020

92 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Board of Directors’ Profile

TEOH SU YIN Nationality | Malaysian ROBERT NEIL COOMBE Nationality | Australian

Senior Independent Director Age _ Independent Director Age | 57
Gender | Female Gender | Male
Date of Date of
Appointment _2FWREHU Appointment _$SULO
Length of Tenure | 6 Years Length of Tenure | 6 Years
GN AC BR BR GN
RC CC CC RC Sustainability Sponsor

Q U A L I F I C AT I O N Q U A L I F I C AT I O N
ȏ %DFKHORURI$UWV+RQV%XVLQHVV6WXGLHV6KHɝHOG+DOODP ȏ %DFKHORURI/DZV+RQV8QLYHUVLW\RI7HFKQRORJ\6\GQH\
University, United Kingdom Australia
ȏ %XVLQHVVDQG7HFKQRORJ\(GXFDWLRQ%7(&+LJKHU1DWLRQDO
'LSORPD+1'%XVLQHVV6WXGLHV6KHɝHOG+DOODP8QLYHUVLW\ ARE A S OF E XPERTISE
United Kingdom • Accounting and Audit, Banking and Finance, Operations, Consumer
• Diploma, Chartered Institute of Marketing, United Kingdom Marketing, Human Resource and Sustainability
• Licensed Investment Adviser by Securities Commission of Malaysia
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
ARE A S OF E XPERTISE
Listed Entities (Other than CIMBGH)
• Banking, Finance and Sustainability • Non-Executive Chairperson of Generation Development Group,
Australia
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Public Companies
Listed Entities (Other than CIMBGH)
• Nil
• Nil

Public Companies
• Nil
R E L E VA N T E X P E R I E N C E
Ms. Teoh Su Yin is a Senior Independent Director of CIMB Group
+ROGLQJV%HUKDGVLQFH2FWREHU6KHKDVDOPRVW\HDUVȇ
experience in equity research and investments.
Ms. Teoh began her career with JP Morgan Malaysia as a Junior
$QDO\VWLQΖQVKHEHFDPH+HDGRI5HVHDUFKZLWKVHFWRU
coverage experience in infrastructure, plantations, power, gaming,
real estate and conglomerates.
In 2002, she left JP Morgan to join Deutsche Bank Malaysia Berhad,
initially as a Senior Analyst and later as Managing Director, Head of
Malaysia and ASEAN Equity Research. As individual analyst, Ms. Teoh
ZDVUDQNHG7RSE\$VLDPRQH\LQDQG
She currently serves on the Board of Albizia ASEAN Opportunities
Fund in Singapore, the Board of World Wildlife Fund-Malaysia and
holds directorships in various other private companies.
R E L E VA N T E X P E R I E N C E
Mr. Robert Neil Coombe is currently the Non-Executive Chairperson
RIWKH*HQHUDWLRQ'HYHORSPHQW*URXSDȴQDQFLDOVHUYLFHVEXVLQHVV
IRFXVHGRQJHQHUDWLRQDOȴQDQFLDOVROXWLRQV
He was previously a Chairperson of Craveable Brands, the largest
Australian owned Quick Service Restaurant business and was the
&(2RI&UDYHDEOH%UDQGVEHWZHHQDQG$SULO%HIRUHMRLQLQJ
&UDYHDEOH%UDQGV0U&RRPEHZDVUHVSRQVLEOHIRUDOORI:HVWSDFȇV
Retail, Business and Agri banking operations throughout Australia.
Prior to this role, Mr. Coombe spent six years as the CEO of BT
)LQDQFLDO*URXSUHVSRQVLEOHIRUDOORI:HVWSDFȇVIXQGVPDQDJHPHQW
ȴQDQFLDOSODQQLQJLQVXUDQFHSULYDWHEDQNLQJEURNLQJSODWIRUPDQG
VXSHUDQQXDWLRQEXVLQHVVHVLQ$XVWUDOLDΖQWRWDOKHKDVRYHU
\HDUVȇFRUSRUDWHH[SHULHQFHLQERWK$XVWUDOLDDQG$VLD
In addition to the above, Mr. Coombe is a Director of Tibra Capital,
6XUȴQJ$XVWUDOLDDQGWKH$XVWUDOLDQΖQGLJHQRXV(GXFDWLRQ
Foundation.

BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE
BOD AC BRCC GNRC BOD AC BRCC GNRC
Member Member Member Chairperson Member Chairperson Member
18/18   18/18 18/18 – 5/5 17/18
Declaration Declaration
ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK
any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company
ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV
nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any
relevant regulatory bodies in 2020 relevant regulatory bodies in 2020

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 93

LEADERSHIP

Board of Directors’ Profile

DATO’ MOHAMED ROSS Nationality | Malaysian DATO’ LEE KOK KWAN Nationality | Malaysian
MOHD DIN Age | 68 Non-Independent Director Age | 55
Independent Director
Gender | Male Gender | Male
Date of Date of
Appointment | 19 April 2016 Appointment | 20 July 2015
Length of Tenure _<HDUV Length of Tenure | 5 Years
AC BR GN BR
CC RC CC

Q U A L I F I C AT I O N Q U A L I F I C AT I O N
ȏ %DQNLQJ'LSORPD3DUWΖQVWLWXWHRI%DQNHUV8QLWHG.LQJGRP • Masters in Business Administration, Simon Fraser University,
Canada
ARE A S OF E XPERTISE ȏ %DFKHORURI%XVLQHVV$GPLQLVWUDWLRQ)LUVW&ODVV6LPRQ)UDVHU
University, Canada
• Banking and Finance, Operations and International Experience
ARE A S OF E XPERTISE
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
• Banking and Finance
Listed Entities (Other than CIMBGH) • Capital Market
• Nil
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Public Companies
Listed Entities (Other than CIMBGH)
• Chairperson/Independent Director of CIMB Islamic Bank Berhad
• Nil

R E L E VA N T E X P E R I E N C E Public Companies
• Non-Independent Director of CIMB Bank Berhad
'DWRȇ0RKDPHG5RVVMRLQHG+6%&%DQN0DOD\VLD%HUKDG+6%&LQ
• Non-Executive Director of Cagamas Holdings Berhad
early 1972 and served in various capacities ranging from Corporate
and Retail Banking and Branch Management. He also served as Head R E L E VA N T E X P E R I E N C E
of Treasury Malaysia and Head of Group Audit Malaysia between 'DWRȇ/HH.RN.ZDQZDVWKH'HSXW\&KLHI([HFXWLYH2ɝFHU&(2RI
1987 and 1996. During this period he also worked for a year in Hong CIMB Group prior to his Board appointments. His areas of
Kong, London and New York in areas of Foreign Exchange and responsibilities included Corporate Banking, Transaction Banking and
7UHDVXU\$VWKH0DQDJLQJ'LUHFWRUKHZDVUHVSRQVLEOHIRU
+6%&ȇVΖVODPLFRQVKRUHEXVLQHVVIUDQFKLVHLQ0DOD\VLDXQWLOKHUHWLUHG
RQ'HFHPEHU
8SRQUHWLUHPHQW'DWRȇ0RKDPHG5RVVZDVDSSRLQWHGDVDQ
Executive Director and Senior Advisor of HSBC Amanah Takaful
Malaysia Sdn Bhd until December 2008. At the same time and until
April 2016, he was also an Independent Director of HSBC Amanah
Malaysia Berhad, where he sat as Chairman of the Risk Committee
and was a member of the Audit Committee and Nomination
Committee.
'DWRȇ0RKDPHG5RVVFXUUHQWO\VLWVRQWZR$GYLVRU\%RDUGV
Sales and Trading businesses in interest rates, credit, foreign
exchange, bonds, equity, commodities and their derivatives, treasury
DQGIXQGLQJIRUWKH*URXSȴ[HGLQFRPHLQYHVWPHQWVDQGGHEW
capital markets which he developed since joining CIMB in 1996, and
has since grown the businesses to be one of the largest global
markets operations in ASEAN.
3ULRUWRMRLQLQJ&Ζ0%LQ'DWRȇ/HHKDGPRUHWKDQVHYHQ\HDUVRI
markets and treasury experience in the Canadian banking industry.
He was the Treasury Portfolio Manager responsible for interest rates
and optionality risk and return for a leading Canadian bank and a
member of its Senior Asset-Liability Management Committee.
'DWRȇ/HHLVDOVRDPHPEHURIWKH%RDUGRI7UXVWHHVRIWKH&DSLWDO
RYHUVHHLQJD3ULYDWH(TXLW\)XQG(NXLQDV2)03URJUDPPHDVDQ
Independent Member. Additionally he also sits as a Trustee on the
Board of Lembaga Zakat Selangor and also serves as an Independent
Director on the Board of an Asset Management company.
0DUNHWV'HYHORSPHQW)XQG&0')DQG$GYLVHUWRWKH6HFXULWLHV
Commission Malaysia. He was appointed as First Director and
Chairman of the Bond and Sukuk Information Platform Sdn Bhd with
H΍HFWIURP1RYHPEHUDQG1RYHPEHUUHVSHFWLYHO\
He also holds directorships in various other private companies.

BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE
BOD AC BRCC GNRC BOD AC BRCC GNRC
Member Chairperson Member Member Member Member
18/18 15/15 5/5 18/18 18/18 – 5/5 –
Declaration Declaration
ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK
any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company
ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV
nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any
relevant regulatory bodies in 2020 relevant regulatory bodies in 2020

94 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Board of Directors’ Profile

AFZAL ABDUL RAHIM Nationality | Malaysian DIDI SYAFRUDDIN YAHYA Nationality | Indonesian
Independent Director Age _ Independent Director Age _
Gender | Male Gender | Male
Date of Date of
Appointment _-DQXDU\ Appointment | 7 May 2019
Length of Tenure | 2 Years Length of Tenure | 1 Year
GN BR
RC CC

Q U A L I F I C AT I O N Q U A L I F I C AT I O N
• Bachelor in Mechanical Engineering with Electronics, University of • Fellow Chartered Accountant, Institute of Chartered Accountants
Sussex at Brighton, United Kingdom in England and Wales, United Kingdom
• Master of Arts, University of Cambridge, United Kingdom
ARE A S OF E XPERTISE
• Legal, Operations, Information Technology, Human Resource, ARE A S OF E XPERTISE
Strategy Development and Implementation, Innovation and • Capital Market, Banking & Finance, Accounting & Audit and
Transformation International Experience

D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Listed Entities (Other than CIMBGH)
ȏ &KLHI([HFXWLYH2ɝFHURI7LPHGRW&RP%HUKDG
• Non-Independent Director of Symphony Communication Public
Company Limited
Public Companies
• Nil
R E L E VA N T E X P E R I E N C E
Encik Afzal Abdul Rahim is a technology entrepreneur who currently
serves as Commander-In-Chief of TIME dotCom Berhad, an ASEAN
based telecomunications operator encompassing Fixed Line, Data
Centres and Global Submarine Cable Systems. He joined TIME in
2008 after establishing The AIMS Asia Group and Global Transit
International in 2006.
(QFLN$I]DOIRXQGHGWKHQRQSURȴW0DOD\VLDQΖQWHUQHW([FKDQJH
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Listed Entities (Other than CIMBGH)
• President Commissioner of PT Bank CIMB Niaga Tbk
Public Companies
• Independent Director of CIMB Investment Bank Berhad
R E L E VA N T E X P E R I E N C E
Encik Didi Syafruddin previously worked for J.P. Morgan for more than
20 years based in Indonesia and subsequently Malaysia where he
was the Managing Director and Head of Investment Banking. At J.P.
Morgan, Encik Didi Syafruddin was responsible for client coverage
and providing advice on mergers and acquisitions, equity and debt
capital markets transactions. He started his banking career with
Morgan Grenfell & Co. in London after qualifying as a Chartered
Accountant. He is currently a Member of Investment Panel of
Urusharta Jamaah Sdn Bhd.
0\Ζ;LQDQGDOVRVHUYHVDVD%RDUG0HPEHURI(QGHDYRU
Malaysia, an organisation that is devoted to nurturing high-impact
entrepreneurs.

He began his career in the automotive sector, initially as a Chassis

Development Engineer and thereafter managing clients on the
engineering consultancy side of the business at Group Lotus PLC.
He is also a Licensed Commercial Pilot.

BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE
BOD AC BRCC GNRC BOD AC BRCC GNRC
Member Member Member Member
17/18 – – – 18/18 – 2/2 18/18
Declaration Declaration
ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ +HGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK
any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company
ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV ȏ +HKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV
nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any
relevant regulatory bodies in 2020 relevant regulatory bodies in 2020

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 95

LEADERSHIP

Board of Directors’ Profile

SHULAMITE N K KHOO Nationality | Singaporean SERENA TAN MEI SHWEN Nationality | Malaysian
Independent Director Age | 59 Non-Independent Director Age _
Gender | Female Gender | Female
Date of Date of
Appointment | 15 May 2020 Appointment _6HSWHPEHU
Length of Tenure | Less than Length of Tenure | Less than
1 Year 1 Year
GN BR GN
RC CC RC

Q U A L I F I C AT I O N Q U A L I F I C AT I O N
• Chartered Fellow, Chartered Institute of Personnel & Development, • Master of Business Administration, MIT Sloan School of
United Kingdom Management, USA
ȏ %DFKHORURI6FLHQFH6WDWLVWLFV $FWXDULDO6FLHQFH8QLYHUVLW\RI • Bachelor of Commerce, Accounting & Finance, Macquarie
Toronto, Canada University, Australia

ARE A S OF E XPERTISE ARE A S OF E XPERTISE

• Human Resource and International Experience • Banking and Finance and International Experience

D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Listed Entities (Other than CIMBGH)
• Independent Director of Kerry Logistics Network Limited, Hong
Kong
• Independent Director of Shangri-La Asia Limited
Public Companies
• Nil
R E L E VA N T E X P E R I E N C E
Ms. Khoo was the Group Human Resources Director and Executive
Vice President of AIA Group, the largest public listed pan-Asian life
insurance group based in Hong Kong. This was a position she held
from 2011.
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Listed Entities (Other than CIMBGH)
• Nil
Public Companies
• Non-Independent Director of CIMB Bank Berhad
• Independent Director of Aviva Ltd
R E L E VA N T E X P E R I E N C E
Ms. Serena Tan joined Khazanah Nasional Berhad in 2005 and is
currently an Executive Director of Investments where she heads
Private Markets and Financial Services. She has over 20 years of
H[SHULHQFHFRYHULQJWKHȴQDQFLDOVHFWRULQFOXGLQJVHFRQGPHQWVWR
.KD]DQDKLQYHVWHHFRPSDQLHVVXFKDV%DQN/LSSRQRZ37%DQN
&Ζ0%1LDJD7ENLQΖQGRQHVLD6KHFXUUHQWO\VLWVRQWKH%RDUGRI&Ζ0%
3ULRUWRWKLVVKHKHOGVHYHUDOVHQLRUH[HFXWLYHSRVLWLRQVRQ$;$D
Bank Berhad and a Director of various other private companies.
)UHQFKPXOWLQDWLRQDOLQVXUDQFHȴUPWKDWHQJDJHVLQJOREDO
LQVXUDQFHLQYHVWPHQWPDQDJHPHQWDQGRWKHUȴQDQFLDOVHUYLFHV Prior to Khazanah, Ms. Serena Tan was with Boston Consulting Group
and McKinsey & Company.
She was previously an International Advisory Panel Member of the
Singapore Civil Service.
She also served on the Board of AIA Malaysia from 2018 up until her
resignation in February 2020.

BOARD AND BOARD COMMITTEE ATTENDANCE BOARD AND BOARD COMMITTEE ATTENDANCE
BOD AC BRCC GNRC BOD AC BRCC GNRC
Member Member Member Member Member
9/10 – – 6/6 7/7 – 1/1 
Declaration Declaration
ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWK
any other Director and/or major shareholders of the Company any other Director and/or major shareholders of the Company
ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUV
nor has he been imposed of any public sanction or penalty by any nor has he been imposed of any public sanction or penalty by any
relevant regulatory bodies in 2020 relevant regulatory bodies in 2020

96 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Company
Secretary’s Profile

DATIN ROSSAYA MOHD Nationality | Malaysian

NASHIR Age | 52
Group Company Secretary
Gender | Female
Date of
Appointment | 2002
Length of Tenure | 19 Years

Q U A L I F I C AT I O N R E L E VA N T E X P E R I E N C E
ȏ %DFKHORURI/DZVPDMRULQJLQ%XVLQHVV/DZ&RYHQWU\8QLYHUVLW\ Datin Rossaya Mohd Nashir has worked at the bank since joining the
United Kingdom Corporate Legal Services Unit in 2002. She was instrumental in
• Licensed Secretary, Companies Commission of Malaysia VHWWLQJXSWKH&RPSDQ\6HFUHWDULDO'HSDUWPHQWLQDQGZDV
ȏ $ɝOLDWH0DOD\VLDQΖQVWLWXWHRI&KDUWHUHG6HFUHWDULHVDQG appointed as Group Company Secretary in 2006.
Administrators
In her role, she is responsible for providing counsel and advice on
Board duties and responsibilities, to ensure that CIMB complies with
ARE A S OF E XPERTISE
relevant laws and regulatory requirements. She also plays a liaison
• Company Law, Corporate Secretarial Practice, Corporate role between the Board and its key stakeholders both in Malaysia
*RYHUQDQFHDQG&RQȵLFWV0DQDJHPHQW DQGLQWKH*URXSȇVUHJLRQDORSHUDWLRQVHQVXULQJWKDWDFRUSRUDWH
governance framework is deployed in a manner that supports the
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S *URXSȇVYLVLRQDQGDVSLUDWLRQV
Listed Entities
She has extensive industry knowledge, with over 25 years of
• Nil
experience in corporate secretarial practice. Previously, she was with
Public Companies Permodalan Nasional Berhad where she assumed the position of
• Nil Joint Company Secretary for several of its subsidiaries. She began her
career with the Time Engineering Group.
Datin Rossaya serves as a member of the Companies Commission of
0DOD\VLDȇV&RUSRUDWH3UDFWLFH&RQVXOWDWLYH)RUXPDQGLVD'LUHFWRURI
several subsidiaries in the CIMB Group. She is a CIMB Sustainability
Champion and has initiated several projects to encourage
sustainability in the workplace for #teamcimb. She actively advocates
greater participation of women in the boardroom and has been
involved in various networking initiatives to promote this agenda.

Declaration
ȏ 6KHGRHVQRWKDYHDQ\FRQȵLFWRILQWHUHVWRUDQ\IDPLO\UHODWLRQVKLSZLWKDQ\RWKHU'LUHFWRUDQGRUPDMRUVKDUHKROGHUVRIWKH&RPSDQ\
ȏ 6KHKDVQRWEHHQFRQYLFWHGIRUDQ\R΍HQFHVZLWKLQWKHSDVWȴYH\HDUVQRUKDVVKHEHHQLPSRVHGRIDQ\SXEOLFVDQFWLRQRUSHQDOW\E\DQ\UHOHYDQW
regulatory bodies in 2020

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 97

LEADERSHIP

Board of
Major Subsidiaries
as at 1 March 2021

CIMB BANK BERHAD CIMB INVESTMENT BANK BERHAD PT BANK CIMB NIAGA TBK

CHAIRPER SON CHAIRPER SON PR ESIDENT COMMIS SIONER

Datuk Mohd Nasir Ahmad Dato’ Robert Cheim Dau Meng Didi Syafruddin Yahya
Independent Director Non-Independent Director President Commissioner
(Redesignated as Chairperson on 29 June (Appointed as President Commissioner on
2020) 9 April 2020)
MEMBERS
Jefferi Mahmud Hashim
MEMBERS Chief Executive Officer/Executive Director MEMBERS
Dato’ Abdul Rahman Ahmad Nadzirah Abd Rashid Glenn Muhammad Surya Yusuf
Chief Executive Officer/Executive Director Independent Director Vice President Commissioner
(Appointed on 10 June 2020) (Appointed on 9 April 2020)
Manu Bhaskaran
Independent Director
Datin Grace Yeoh Cheng Geok Jeffrey Kairupan
Independent Director Didi Syafruddin Yahya Senior Independent Commissioner
Independent Director
Dato’ Lee Kok Kwan David Richard Thomas
Non-Independent Director Non-Independent Commissioner
S E C R E TA R Y
Serena Tan Mei Shwen Datin Rossaya Mohd Nashir Sri Widowati
Non-Independent Director Independent Commissioner

Chu Hong Keong Dato’ Abdul Rahman Ahmad
Independent Director Non-Independent Commissioner
(Appointed on 25 September 2020)
Sukanta Kumar Dutt
Independent Director CIMB ISLAMIC BANK BERHAD YB Senator Tengku Datuk Seri Utama
Zafrul Tengku Abdul Aziz
Nadzirah Abd Rashid CHAIRPER SON President Commissioner
Independent Director Dato’ Mohamed Ross Mohd Din (Resigned on 9 March 2020)
Independent Director
Venkatachalam Krishnakumar Zulkifli M. Ali
Independent Director Independent Commissioner
(Retired on 6 May 2020) MEMBERS (Retired on 9 April 2020)
Ahmad Shahriman Mohd Shariff
Dato’ Zainal Abidin Putih Chief Executive Officer/Executive Director Pri Notowidigdo
Independent Director Independent Commissioner
(Retired on 28 June 2020) Ahmed Baqar Rehman (Retired on 9 April 2020)
Independent Director
Rosnah Dato’ Kamarul Zaman Ho Yuet Mee
Independent Director Independent Director C O R P O R AT E S E C R E TA R Y
(Retired on 18 January 2021)
Jalalullail Othman Fransiska Oei
Independent Director
S E C R E TA R Y Rosnah Dato’ Kamarul Zaman
Datin Rossaya Mohd Nashir Independent Director
(Retired on 18 January 2021)

S E C R E TA R Y
Datin Rossaya Mohd Nashir

98 CIMB Group Holdings Berhad Annual Report 2020

 Board of Major Subsidiaries

CIMB Cambodia
Option 1 - Normal Version

Positive - Colour & Greyscale

C0 M100 Y85 K60

C0 M100 Y100 K0

K100
K50
CIMB THAI BANK PUBLIC COMPANY CIMB BANK PLC (CAMBODIA) CIMB BANK (VIETNAM) LIMITED
LIMITED
Reversed - Colour & Greyscale
CHAIRPER SON CHAIRPER SON
CHAIRPER SON
C0 M100 Y85 K60
Dato’ Robert Cheim Dau Meng
C0 M100 Y100 K0 Datuk Mohd Nasir Ahmad Effendy Shahul Hamid
Non-Independent Director K100 Independent Director Non-Independent Director
K50
(Redesignated as Chairman on 19 March
MEMBERS 2020)
Paul Wong Chee Kin MEMBERS
President and Chief Executive Officer/ Bun Yin
Executive Director MEMBERS
(Appointed on 1 February 2021) Chief Executive Officer/Executive Director
Thomson Fam Siew Kat
Chanmanu Sumawong Dr. Mey Kalyan Chief Executive Officer/Executive Director
Independent Director
Independent Director
Dr. Rom Hiranpruk Le Le Thuy
Independent Director Aisyah Lam Abdullah Independent Director
Omar Siddiq Independent Director
Non-Independent Director Aisyah Lam Abdullah
Omar Siddiq Independent Director
Niti Jungnitnirundr
Independent Director Non-Independent Director
Gurdip Singh Sidhu
Natasak Rodjanapiches Ahmad Shazli Kamarulzaman Non-Independent Director
Independent Director
Non-Independent Director (Appointed on 19 March 2020)
Oranuch Apisaksirikul
Independent Director Dato’ Wira Zainal Abidin
Anon Sirisaengtaksin J O I N T S E C R E TA R I E S Mahamad Zain
Independent Director Non-Independent Director
(Appointed on 26 June 2020) Ly Sophea
(Retired on 19 March 2020)
Hafriz Abdul Rahman Datin Rossaya Mohd Nashir
Independent Director
(Appointed on 24 September 2020) J O I N T S E C R E TA R I E S
Dato’ Abdul Rahman Ahmad Tran Hai Long
Non-Independent Director
(Appointed on 6 October 2020)
Datin Rossaya Mohd Nashir
Watanan Petersik
Independent Director
(Resigned on 26 June 2020)
Serena Tan Mei Shwen
Non-Independent Director
(Resigned on 30 July 2020)
Adisorn Sermchaiwong
Non-Independent Director
(Resigned on 1 September 2020)
Shahnaz Farouque Jammal Ahmad
Non-Independent Director
(Resigned on 30 September 2020)
Sutee Losoponkul
Acting President and Chief Executive
Officer/Executive Director
(Appointed on 16 September 2020 and
Retired on 1 February 2021)

S E C R E TA R Y
Patima Jumpasut

CIMB Group Holdings Berhad Annual Report 2020 99
LEADERSHIP

Group Shariah
Committee

'56+$)$$Ζ086$ 6+(Ζ.+352)(6625'5<286()$%'8//$+$/6+8%$Ζ/<

$662&Ζ$7(352)(6625'5$Ζ6+$7+081((=$ AHMED BAQAR REHMAN

DR AHMAD SUFIAN CHE ABDULLAH $662&Ζ$7(352)(6625'508+$0(')$Ζ522=

ABDUL KHIR

100 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Shariah
Committee Profile

'56+$)$$Ζ086$ Nationality | Malaysian Nationality | Saudi Arabian SHEIKH PROFESSOR

'5<286()
Age _ Age | 50
ABDULLAH AL
Gender | Male Gender | Male SHUBAILY

Date of Date of
Appointment | 9 January 2006 Appointment | 28 October 2008
Length of Tenure _<HDUV Length of Tenure | 12 Years

Q U A L I F I C AT I O N
• PhD, Glasgow Caledonian University, UK
ȏ 0DVWHUȇVGHJUHHLQ&RPSDUDWLYH/DZVΖΖ80
• Degree in Shariah, Al-Azhar University, Egypt
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
• Chairman of the Shariah Committee at Sun Life Malaysia
Takaful Berhad
• Chairman of Shariah Advisory Council of RGA Retakaful
• Former member of Shariah Expert Panel of Department of
Q U A L I F I C AT I O N
• PhD in Islamic Jurisprudence from Imam Muhammad ibn Saud
Islamic University
ȏ 0DVWHUȇVGHJUHHIURPWKH'HSDUWPHQWRI&RPSDUDWLYH
Jurisprudence at Imam Muhammad ibn Saud Islamic University
ȏ %DFKHORUȇVGHJUHHIURP)DFXOW\RI6KDULDKDQG)XQGDPHQWDOVRI
Islam, Department of Comparative Jurisprudence at Imam
Muhammad ibn Saud Islamic University
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
ΖVODPLF'HYHORSPHQW0DOD\VLD -$.Ζ0 • Member of Shariah Board of AAOIFI
ȏ 0HPEHURI6KDULDK%RDUGRIΖΖ)0ΖVODPLFΖQWHUQDWLRQDO)LQDQFH
R E L E VA N T E X P E R I E N C E 0DUNHW
• Former Associate Professor at the Ahmad Ibrahim Kulliyyah of • Member of Shariah Board of Albilad Bank in Saudi Arabia
/DZVDWWKHΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\0DOD\VLDΖΖ80
ȏ )RUPHU&KLHI([HFXWLYH2ɝFHURIWKH-RKRUΖQVWLWXWHRI
Integrity, Leadership and Training
ȏ )RUPHU([HFXWLYH'LUHFWRURIΖΖ80ȇV&HQWUHIRU&RQWLQXLQJ
Education
ȏ )RUPHU&KLHI([HFXWLYH2ɝFHURIWKHΖQWHUQDWLRQDOΖVODPLF
&ROOHJHFXP&KLHI([HFXWLYH2ɝFHUΖQWHUQDWLRQDOΖVODPLF
University Malaysia Higher Education Sdn Bhd
R E L E VA N T E X P E R I E N C E
• Currently lectures in the Department of Comparative
-XULVSUXGHQFH+LJKΖQVWLWXWHRI-XGLFLDU\DW6DXGL$UDELDȇVΖPDP
Muhammad ibn Saud Islamic University in Riyadh
• Serves as a Cooperating Professor for the American Open
University
• Performs advisory functions within numerous religious and
charitable organisations both within and outside Saudi Arabia
• Written many books, academic papers and articles on Islamic
jurisprudence and commercial law
• Participated in numerous seminars and conventions in related
areas
• Expert of Islamic Fiqh Academy
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 101
LEADERSHIP

Group Shariah Committee Profile

ASSOCIATE PROFESSOR Nationality | Maldivian Nationality | Pakistan AHMED BAQAR

DR AISHATH MUNEEZA REHMAN
Age _ Age | 62
Gender | Female Gender | Male
Date of Date of
Appointment _$SULO Appointment | 1 June 2019
Length of Tenure | 2 Years Length of Tenure | 2 Years

Q U A L I F I C AT I O N Q U A L I F I C AT I O N
• PhD in Law – International Islamic University Malaysia • Bachelor of Arts-Economics – University of Michigan, USA
ȏ //0%DQNLQJȂΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\0DOD\VLD
ȏ %DFKHORURI/DZV+RQVȂΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\
Malaysia
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
• Chairman, Shariah Advisory Council of Capital Market
Development Authority, Maldives
• Chairman of Shariah Board at Ayady Takaful-Allied Insurance
Company, Maldives
• Chairman of Shariah Board at Alia Investment Pvt Ltd, Maldives
• Deputy Head of World Zakat Forum Research and
Development
R E L E VA N T E X P E R I E N C E
• Former Deputy Minister – Ministry of Finance and Treasury,
Republic of Maldives
ȏ )RUPHU'HSXW\0LQLVWHUȂ0LQLVWU\RIΖVODPLF$΍DLUV5HSXEOLFRI
Maldives
• Former Chairman, Board of Directors, Maldives Center for
Islamic Finance Ltd
• Former Chairman, Board of Directors, Maldives Hajj
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Independent Board Director – CIMB Islamic Bank Berhad
– Malaysia
• Chairman Board Risk Committee
• Member Board Shariah Committee
Independent Board Director – Al Baraka Bank (Pakistan)
Limited – Pakistan
• Chairman Board Human Resource and Remuneration
Committee
• Member Board Risk Committee
IFC/World Bank Nominee Director – Asean Financial
Innovation Network – Singapore
R E L E VA N T E X P E R I E N C E
ȏ 0U$KPHG5HKPDQKDVRYHU\HDUVRIH[SHULHQFHZLWK
multinational banks in senior management roles, such as Chief
Executive as well as direct responsibility for wholesale bank
and risk. He was also involved in the Corporate Banking
&RUSRUDWLRQ/WG7DEXQJ+DMLRI0DOGLYHV integration of Standard Chartered Bank Pakistan with Grindlays
Bank Pakistan
ȏ +LVH[SHULHQFHFRYHUVGL΍HUHQWJHRJUDSKLHVLQ$VLD0LGGOH
East and Africa, with American Express Bank, Standard
Chartered Bank and Al Rajhi Bank
• Former CEO of Al Rajhi Bank Malaysia

102 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Shariah Committee Profile

'5$+0$'68)Ζ$1 Nationality | Malaysian Nationality | Malaysian ASSOCIATE PROFESSOR

CHE ABDULLAH '508+$0('
Age _ Age _
FAIROOZ ABDUL KHIR
Gender | Male Gender | Male
Date of Date of
Appointment | 1 November 2019 Appointment | 16 August 2020
Length of Tenure | 1 Year Length of Tenure | 1 Year

Q U A L I F I C AT I O N Q U A L I F I C AT I O N
• PhD in Islamic Economy and Banking – University of Yarmouk, • PhD in Shariah - University of Malaya
Jordan • Masters of Shariah - University of Malaya
ȏ 0DVWHUȇV'HJUHHLQ6KDULDKΖVODPLF)LQDQFHȂ8QLYHUVLW\RI • Degree in Islamic Revealed Knowledge and Human Sciences
Malaya, Malaysia ΖVODPLF-XULVSUXGHQFHΖQWHUQDWLRQDOΖVODPLF8QLYHUVLW\
• Bachelor Degree in Shariah and Management – University of Malaysia
Malaya, Malaysia
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
• Member, Shariah Committee, Small Medium Enterprise
Development Bank Malaysia Berhad
• Member, Shariah Advisory Board, Syarikat Takaful Malaysia
Keluarga Berhad
ȏ 0HPEHU6KDULDK$GYLVRU\&RXQFLO6$&RI6HFXULWLHV
Commission Malaysia
• Chairman of Shariah Committee, Agrobank
• Member, Shariah Committee, Zurich Takaful Malaysia Berhad
• Member, Perak Islamic Religious Council & Malay Customs
• Member, Fatwa Committee, Jabatan Mufti Negeri Perlis 0$Ζ3N
• Member, Islamic Legal Consultative Committee, Federal • Member, Fatwa Committee of Perak, Jabatan Mufti Negeri
Territories Perak
• Member, Waqaf Committee, Majlis Agama Islam dan Adat
ΖVWLDGDW1HJHUL.HODQWDQ0$Ζ. R E L E VA N T E X P E R I E N C E
• Member, Shariah Advisor Committee, Sabnuha Jewellery PLT • Associate Professor, International Centre for Education in
• Shariah Adviser, KAB Goldynamics Sdn Bhd
R E L E VA N T E X P E R I E N C E
• Currently a Senior Lecturer at the Department of Shariah and
Management, Academy of Islamic Studies of University Malaya
ΖVODPLF)LQDQFHΖ1&(Ζ)
• Former Shariah Committee, Maybank Islamic Berhad
• Former Shariah Committee, Group Shariah Committee, MNRB
Holdings Berhad
• Former Shariah Committee, Malaysian Industrial Development
• Previously Shariah Committee, Kenanga Investment Bank )LQDQFH%HUKDG0Ζ')
Berhad • Former Researcher and Head of Islamic Banking Unit,
• Previously Muamalat Expert Panel of Jabatan Kemajuan Islam International Shari`ah Research Academy for Islamic Finance
0DOD\VLD -$.Ζ0 Ζ65$
• He has produced numerous publications such as book and
UHVHDUFKSDSHUVLQΖVODPLFOHJDOWKHRULHVXVXOȴTKΖVODPLF
FRPPHUFLDOODZVΖVODPLFEDQNLQJDQGȴQDQFH7DNDIXODQG
Shariah Fintech
• He is the founder and administrator of “muamalat.my”, a social
media platform that strives to become a medium of education
in enhancing public awareness with regards to Islamic Finance
DQG7DNDIXOVLQFH

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 103

LEADERSHIP

Group
Management
DATO’ ABDUL
AHMAD SHAHRIMAN
RAHMAN
MOHD SHARIFF
BIN AHMAD
&KLHI([HFXWLYH2ɝFHU
Country Head, Malaysia
Group Islamic Banking
Group Chief Executive
&KLHI([HFXWLYH2ɝFHU
2ɝFHU
Executive Director,
Executive Director, CIMB
CIMB Islamic Bank Berhad
&KLHI([HFXWLYH2ɝFHU
Executive Director,
CIMB Bank Berhad

GURDIP SINGH SIDHU KHAIRUL RIFAIE KWAN KEEN YEW

*URXS&KLHI3HRSOH2ɝFHU *URXS&KLHI)LQDQFLDO2ɝFHU Group Chief Legal &
&RPSOLDQFH2ɝFHU

RAFE HANEEF
&KLHI([HFXWLYH2ɝFHU DATIN ROSSAYA
Group Transaction Banking MOHD NASHIR
&KLHI([HFXWLYH2ɝFHU Group Company
CIMB Foundation Secretary
Group Chief Sustainability
2ɝFHU

104 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Management

AMRAN EFFENDY SHAHUL

MOHAMAD DAVID RICHARD HAMID
Group Chief THOMAS &KLHI([HFXWLYH2ɝFHU
Internal Auditor Group Chief Risk CIMB Digital Assets
2ɝFHU Group Chief Executive
2ɝFHU
Touch ’n Go Group

OMAR SIDDIQ PAUL WONG CHEE

Deputy Chief Executive KIN
2ɝFHU&Ζ0%%DQN Country Head,
Berhad Thailand
&KLHI([HFXWLYH2ɝFHU President &
Group Wholesale &KLHI([HFXWLYH2ɝFHU
Banking CIMB Thai Bank PCL

SAMIR GUPTA TIGOR M. SIAHAAN VICTOR LEE MENG

Chief Executive Country Head, TECK
2ɝFHU Indonesia Country Head,
Group Consumer President Director & Singapore
Banking &KLHI([HFXWLYH2ɝFHU &KLHI([HFXWLYH2ɝFHU
PT Bank CIMB Niaga Tbk CIMB Bank, Singapore
&KLHI([HFXWLYH2ɝFHU
Group Commercial
Banking

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 105

LEADERSHIP

Group Management
Profile

OMAR SIDDIQ QUALIFICATION • Previously was Group Chief Operating

'HSXW\&KLHI([HFXWLYH2ɝFHU • BSc (Hons) Economics, London School of 2ɝFHU&Ζ0%*URXS
CIMB Bank Berhad Economics and Political Science, UK • Former Head of Group Wholesale Banking
&KLHI([HFXWLYH2ɝFHU • Fellow member of the Institute of at RHB Group
Chartered Accountants in England and • Former Executive Director and Group
Group Wholesale Banking
Wales &KLHI)LQDQFLDO2ɝFHUDW0DOD\VLD$LUOLQHV
• CFA Charterholder, CFA Institute Berhad
Nationality Malaysian • Former Executive Director in the
Age 47 DIRECTORSHIP/RELEVANT APPOINTMENTS Investments Division at Khazanah Nasional
Berhad
Gender Male • Director, CIMB Thai Bank Public Company
• Former Managing Director in the
Limited (Thailand)
Investment Banking Division at CIMB
• Director, CIMB Cambodia PLC (Cambodia)
Investment Bank Berhad
• Director, CIMB Group Sdn Bhd
• Former Executive Director in the
• Director, CGS-CIMB Sdn Bhd
Corporate Finance Practice of
PricewaterhouseCoopers (PwC)
RELEVANT EXPERIENCE

TIGOR M. SIAHAAN QUALIFICATION • Vice Chairman of Indonesia Banker

Country Head, Indonesia • Double major in Finance and Accounting,
President Director & University of Virginia, Charlottesville, USA
&KLHI([HFXWLYH2ɝFHU
PT Bank CIMB Niaga Tbk DIRECTORSHIP/RELEVANT APPOINTMENTS
• Chairman of Indonesia Malaysia Bilateral
Committee of Indonesian Chamber of
Nationality Indonesian
Commerce and Industry (KADIN)
Age 49 • Vice Chairman of Perbanas (Indonesian
Banks Association)
Gender Male
• Member of the Board of Trustees of Jakarta
International School ( JIS)
• Mentor in Endeavor Indonesia
• Executive Committee of Young Presidents
Organization (YPO) Indonesia
• The Employers’ Association of Indonesia
(APINDO), Chairperson of Banking,
Financial Services & Taxation
Institute
RELEVANT EXPERIENCE
• President Director and Chief Executive
2ɝFHURI37%DQN&Ζ0%1LDJD7EN
ȏ &KLHI&RXQWU\2ɝFHURI&LWLΖQGRQHVLDIURP
2011 to 2015. First Indonesian to be
appointed to the post
• Held several key positions in Citi Indonesia
including Country Head for Institutional
Clients Group, Head of Corporate &
Investment Banking and Country Risk
Manager
• Served as Vice President in Institutional
Remedial Management Group in Citi Head
2ɝFHLQ1HZ<RUNIURPWR

PAUL WONG CHEE KIN QUALIFICATION the Group, including stints in Philippines
Country Head, Thailand • Bachelor of Business (Major in Banking & and was subsequently appointed President
3UHVLGHQW &KLHI([HFXWLYH2ɝFHU Finance), Monash University, Melbourne, and CEO of CIMB Thai Bank PCL in
CIMB Thai Bank PCL Australia February 2021
• He has a strong track record in strategic
DIRECTORSHIP/RELEVANT APPOINTMENTS projects regionally, in digitalisation and
Nationality Malaysian transformation, and brings in depth
• Director, CIMB Thai Bank Public Company
Age 51 functional experience in operations, having
Limited
successfully led and transformed Group
Gender Male Operations
RELEVANT EXPERIENCE
• He also served as the Board of Directors
• Over 25 years of experience in banking for Principal Asset Management Berhad
DQGȴQDQFHLQ$6($1 from September 2016 to January 2021
• He joined CIMB Group in 2007 as Senior • Prior to CIMB, he served in various
Vice President, Head of Sales Management FDSDFLWLHVLQVHYHUDOȴQDQFLDOLQVWLWXWLRQVLQ
– Consumer Sales & Distribution of CIMB Malaysia and Singapore
Bank Berhad. Held various positions within

106 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group Management Profile

VICTOR LEE MENG TECK QUALIFICATION operational risk governance and

Country Head, Singapore • Bachelor of Applied Science (Materials
&KLHI([HFXWLYH2ɝFHU Engineering), Nanyang Technological
CIMB Bank, Singapore University, Singapore
• Alumni of ASIAN Financial Leaders
&KLHI([HFXWLYH2ɝFHU
Programme (AFLP), mandated by Monetary
Group Commercial Banking
Authority of Singapore
Nationality Singaporean DIRECTORSHIP/RELEVANT APPOINTMENTS
Age 50 • Nil
Gender Male
RELEVANT EXPERIENCE
• Responsible to grow and drive innovation
for the SME and Mid-Corporate segments
in the region. Champions customer
centricity, digital enablement, as well as
CIMB's sustainability agenda for the entire
Commercial Banking business
• Responsible for Singapore's banking
business and strategic positioning, and to
deepen its foothold in ASEAN region
• Over 20 years of experience in Retail
EDQNLQJ&KDQQHOV'LVWULEXWLRQ
0DQDJHPHQW0LFURȴQDQFHDQG%XVLQHVV
Banking with markets coverage in ASEAN,
North Asia, Africa and Middle East
• At Fullerton Financial Holdings, he was
responsible for managing its investments
LQEDQNVDQGȴQDQFLDOVHUYLFHVȴUPV7KLV
includes driving its strategy and
implementations, leading several digital
initiatives across Asia and delivering strong
performance excellence. He also held
various board directorships within the
Fullerton Group
• Was Managing Director at United Overseas
Bank (UOB) and led the Small Business
banking segment at United Overseas Bank
(UOB) and delivered the fastest CAGR
growth
• A member of the SME Banking
management committee in Standard
Chartered where he was responsible for its
global liability, treasury business and
lending businesses in Singapore, Taiwan
and China. He also led several mergers and
rationalisations for the bank
• At SME Banking Singapore, he worked with
the local SME GMs to develop the value
propositions of the SME Liabilities and
Treasury Business in the key countries in
the SME Banking network. He then moved
to Taiwan where he led the integration of
the Hsinchi International Bank with the
SME banking business
• At Citibank, he was responsible for the
strategic positioning of business banking
within the Global Consumer Group in
Singapore and for driving key initiatives for
CitiGold and CitiBanking
• Awarded “Top 50 Most Promising Young
Leaders’’ award in 2008 by The Asian
Banker for bankers aged below 40 in Asia
3DFLȴFDQG0LGGOH(DVWUHJLRQ

SAMIR GUPTA QUALIFICATION RELEVANT EXPERIENCE

&KLHI([HFXWLYH2ɝFHU • Bachelor of Technology in Mechanical ȏ 2YHU\HDUVȇH[SHULHQFHLQWKHEDQNLQJ
Group Consumer Banking Engineering, Indian Institute of Technology, industry including digital, retail, wealth
India PDQDJHPHQWFRQVXPHUȴQDQFHFDUGV
• Master of Management Studies, University risk, operations and audit
Nationality Singaporean
of Bombay, India • Senior Manager with track record of
Age 58 building consumer banking franchises in
Gender Male DIRECTORSHIP/RELEVANT APPOINTMENTS Asia, Africa and Middle East
• Nil • Started his working career with Citibank,
India and moved to Singapore in 1990
• Managed various roles in Citibank and
Barclays and PT Bank CIMB Niaga Tbk
based out of Singapore, Thailand, Dubai,
Turkey and Indonesia
• Joined CIMB Group as Consumer Banking
Director of PT Bank CIMB Niaga Tbk in
2010

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 107

LEADERSHIP
Group Management Profile
RAFE HANEEF QUALIFICATION
&KLHI([HFXWLYH2ɝFHU • Master of Laws (LL.M), Harvard Law School
Group Transaction Banking • Bachelor of Laws (LL.B), International
&KLHI([HFXWLYH2ɝFHU&Ζ0%)RXQGDWLRQ Islamic University Malaysia
ȏ 4XDOLȴHGIRUWKH1HZ<RUN6WDWH%DULQ
*URXS&KLHI6XVWDLQDELOLW\2ɝFHU
1997
• Admitted to the Malaysian Bar in 1995
Nationality Malaysian
Age 50 DIRECTORSHIP/RELEVANT APPOINTMENTS
Gender Male • Nil
RELEVANT EXPERIENCE
• CEO of Group Transaction Banking
overseeing transaction banking business
which consist of four main product pillars
namely Trade Finance, Cash Management,
Securities Services and Financial
Institution serving the Group’s Non-Retail
customers across CIMB franchise in
ASEAN. Transaction Banking drives annuity
business and relationship stickiness; thus
pivotal to the growth of CIMB Group
ȏ *URXS&KLHI6XVWDLQDELOLW\2ɝFHUOHDG
responsibility for driving sustainable
ȴQDQFLQJDQGVRFLDOUHVSRQVLELOLW\
initiatives across the CIMB Group
• CEO, CIMB Foundation, to spearhead CSR
in community development, sports and
education initiatives with diversity and
inclusion as the guiding principles
• Previously, CEO of CIMB Islamic Bank
Berhad in charge of the Group’s Islamic
EDQNLQJDQGȴQDQFHIUDQFKLVH&Ζ0%
108 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
Islamic operates as a parallel franchise to
the Group’s conventional operations and
covers Islamic wholesale banking, Islamic
consumer banking, Islamic commercial
banking and Islamic asset management
and investments
• Instrumental in the inclusion of CIMB
Islamic in the Value-based Intermediation
(VBI) Community of Practitioners, working
to develop VBI together with the central
bank to contextualise and drive
VXVWDLQDELOLW\ZLWKΖVODPLFȴQDQFH
institutions in Malaysia
• Instrumental in CIMB Group being a
member of RFI as well as a founding
member to the UNEP FI Principles for
Responsible Banking
• 20 years of experience covering a range of
businesses and functional roles gained
from three global banks, an international
asset management company and a legal
ȴUPDWYDULRXVȴQDQFLDOFHQWUHVLQFOXGLQJ
London, Dubai and Kuala Lumpur
• CEO, Malaysia, and Managing Director of
Global Markets, ASP, HSBC Amanah in 2010
• Regional Head for Islamic banking, Asia
3DFLȴF&LWLJURXS$VLDLQ
• Global Head of Islamic Finance business at
ABN AMRO Dubai in 2004 covering both
consumer and corporate businesses
• Joined HSBC Investment Bank plc, London
in 1999 and thereafter HSBC Financial
Services Middle East, Dubai where he set
up the global sukuk business in 2001
 Group Management Profile
EFFENDY SHAHUL HAMID QUALIFICATION
&KLHI([HFXWLYH2ɝFHU&Ζ0%'LJLWDO$VVHWV • Honours in Electronic Engineering with
*URXS&KLHI([HFXWLYH2ɝFHU Optoelectronics, University College
Touch ’n Go Group London, UK
• CIMB INSEAD Leadership Programme,
INSEAD
Nationality Malaysian
• Digital Business Leadership Programme,
Age 47 Columbia Business School, Columbia
University
Gender Male
DIRECTORSHIP/RELEVANT APPOINTMENTS
• Chairman, TNG Digital Sdn Bhd
• Chairman, CIMB Bank (Vietnam) Ltd
• Director, Touch ’n Go Sdn Bhd
• Director, Financial Park (Labuan) Sdn Bhd
• Director, Principal Asset Management
Berhad, PT Principal Asset Management,
Principal Asset Management Co Limited
and Principal Islamic Asset Management
Sdn Bhd
• Member of the Board of Directors, The
International School of Kuala Lumpur
RELEVANT EXPERIENCE
• Responsible for CIMB’s portfolio of digital
businesses and ventures, which today
includes Touch ‘n Go and TNG Digital
(collectively Touch ‘n Go Group), as well as
CIMB’s digital bank franchises in Vietnam
and the Philippines. In addition to driving
strategy, growth and overseeing the
execution of these businesses, his focus
also extends towards spearheading value
creation of CIMB's investments in these
franchises through equity and non-equity
partnerships. Also continues to maintain
oversight in the digital banking space for
the Group, as well as platform and
ecosystem-based developments and
trends
• Most recently, was CEO of Group Ventures
and Partnerships, responsible for the
development of the Group’s new and
disruptive revenue and value creation
streams, with a focus on cultivating
platform partnerships, strategic
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
investments in platform-based businesses,
and steering CIMB’s approach and
SUDFWLFHVLQWHUPVRIȴQDQFLDOWHFKQRORJ\
trends. Began management oversight of
the Group’s digital bank operations in
Vietnam and the Philippines, in addition to
OHDGLQJH΍RUWVDQGVWUDWHJLHVLQWKHGLJLWDO
banking space for the overall Group
• Prior to that, was CEO of Group Asset
Management & Investments, responsible
for the Group’s asset management and
investments businesses across both public
and private markets, including the regional
asset management business, its private
equity fund management business and the
equity investments portfolio in companies
such as Principal Asset Management and
Touch ’n Go
• Previously also the CEO of Group
Commercial Banking, managing the
Group’s regional banking businesses for
the small and medium enterprise and
mid-sized corporate segment, with a key
IRFXVRQFUHDWLQJGL΍HUHQWLDWHG
propositions and executing long term
growth strategies
• Preceding that, was Group Chief Marketing
DQG&RPPXQLFDWLRQV2ɝFHUPDQDJLQJWKH
Group’s entire marketing and
communications initiatives and lead
IUDQFKLVHZLGHH΍RUWVWRHQVXUHD
FRQVLVWHQWDQGGL΍HUHQWLDWHG&Ζ0%EUDQG
for all of the Group’s Businesses across the
region
• Before that, served as a Director in the
Group’s Investment Banking Division,
primarily focusing on corporate advisory
and origination
• Prior to joining the Group, had career
stints in several international companies in
a corporate development capacity, mostly
involved in private equity, merger and
DFTXLVLWLRQDFWLYLWLHVDFURVV$VLD3DFLȴF
and general business expansion initiatives
• Regional business experience having
worked and lived in Malaysia, Hong Kong
and Singapore
109
LEADERSHIP
Group Management Profile
AHMAD SHAHRIMAN MOHD SHARIFF QUALIFICATION
&KLHI([HFXWLYH2ɝFHU • Bachelor of Arts in Accounting and
Group Islamic Banking Finance, Lancaster University, UK
ȏ 0DOD\VLDQ)LQDQFLDO0DUNHWV&HUWLȴFDWH
&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU
Persatuan Pasaran Kewangan Malaysia dan
CIMB Islamic Bank Berhad
Institut Bank-Bank Malaysia, Malaysia
• Chartered Professional in Islamic Finance,
Nationality Malaysian Chartered Institute of Islamic Finance
Professionals, Malaysia
Age  
Gender Male DIRECTORSHIP/RELEVANT APPOINTMENTS
• Board Member, CIMB Islamic Bank Berhad
• Vice President and Council Member,
Association of Islamic Banking and
Financial Institutions Malaysia (AIBIM)
• Member, Standing Committee on Islamic
Financial Reporting, Malaysian Accounting
Standards Board (MASB)
• Honorary Senior Fellow, Centre for Islamic
experience in the corporate sector, of
which 16 years were in Islamic Banking and
Finance-related leadership roles. He
played an active role in the development of
Malaysia’s Islamic banking industry, with a
longstanding role in the Treasury
committee of the Association of Islamic
Banks in Malaysia (AIBIM). In this capacity,
he was involved in instrumental industry
initiatives such as developing, amongst
others, a commodity exchange for Islamic
ȴQDQFHSXUSRVHVΖVODPLFVWUXFWXUHG
products, documentation standards for
Islamic derivatives as well as an Islamic
credit support mechanism
• He previously headed the Wholesale
Banking at HSBC Amanah Malaysia Berhad
as Director, and served as the Head of
Islamic Banking at Citibank Berhad prior to
that. Under these leadership roles, he has
(FRQRPLFVΖΖ80H΍HFWLYH-DQXDU\ been an instrumental contributor towards
RELEVANT EXPERIENCE
ȏ $KPDG6KDKULPDQ0RKG6KDUL΍ZDV
DSSRLQWHG&KLHI([HFXWLYH2ɝFHURI&Ζ0%
Islamic Bank on 1 October 2019 and heads
the Group Islamic Banking business of
CIMB Group that includes Islamic
wholesale banking, Islamic consumer
banking, Islamic commercial banking and
Islamic asset management and investment
across the key markets of Malaysia,
Singapore and Indonesia
• Shahriman has over two decades of
KHAIRUL RIFAIE QUALIFICATION
*URXS&KLHI)LQDQFLDO2ɝFHU • First Class Honours degree in Accounting
and Finance, University of Warwick, UK
• MSc in Finance from Imperial College,
Nationality Malaysian
London
Age 40 • Member of the Institute of Chartered
Accountants in England and Wales (ICAEW)
Gender Male
• Member of the Chartered Banker Institute
(MCBI)
• Member of Malaysian Institute of
Accountants (MIA)
DIRECTORSHIP/RELEVANT APPOINTMENTS
• Director of SIBB Berhad
• Director of Perdana Nominees Sdn Bhd
• Director of S.B Properties Sdn Bhd
• Director of S.B. Venture Capital
Corporation Sdn Bhd
• Director of Premier Fidelity Sdn Bhd
• Director of SBB Berhad
• Director of Commerce Returns Berhad
• Director of CIMB Berhad
• Director of CIMB Southeast Asia Research
Sdn Bhd (CARI)
• Director of CIMB Real Estate Sdn Bhd
• Director of CIMB Group Sdn Bhd
• Director of CIMB Bank (L) Limited
110 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
the growth of the Islamic banking and
ȴQDQFHLQGXVWU\ZLWKWKHLQWURGXFWLRQRI
global award-winning capital markets and
treasury solutions. Shahriman has strong
leadership, technical, legal and risk
management expertise gained from his
stint in these cross-border institutions
• He started his career as a management
associate with Citibank before being
selected to undertake the leadership
development programmes both regionally
and globally in his time with Citigroup.
• Director of Southeast Asia Special Asset
Vehice Ltd (SEASAV)
• Director of CIMB Holidngs Sdn Bhd
• Commerce MGI Sdn Bhd
• CSI Investments Limited
RELEVANT EXPERIENCE
ȏ $SSRLQWHGDV*URXS&KLHI)LQDQFLDO2ɝFHU
in January 2019 and prior to his current
role, he held the position of CFO, Malaysia
and Regional Head, Financial Control with
responsibility for tax, regulatory reporting,
ȴQDQFLDODFFRXQWLQJPDQDJHPHQW
UHSRUWLQJEXVLQHVVȴQDQFHDGYLVRU\
SURGXFWFRQWURODQGȴQDQFLDOSODQQLQJ
ȏ 6WDUWHGKLVFDUHHULQZLWK.30*
London focusing on servicing Investment
Banking clients
• In 2006, he joined Goldman Sachs, London
as an equity analyst covering the European
Insurance Sector. He then joined UBS,
Malaysia in 2009 to cover the Malaysian
Banking Sector and later on also covered
the Singapore Banking sector
• Prior to joining CIMB Group, Khairul was
working at RHB Group, Malaysia as the
Head of Finance of RHB Islamic and Head
of Investor Relations
 Group Management Profile

GURDIP SINGH SIDHU QUALIFICATION and priorities. He oversees organisation

*URXS&KLHI3HRSOH2ɝFHU • Honours in Accounting and Finance,
London School of Economics and Political
Science, UK
Nationality Malaysian
• Chartered Financial Analyst (CFA)
Age 47 • Alumni of the CIMB-INSEAD Leadership
Gender Male Programme
DIRECTORSHIP/RELEVANT APPOINTMENTS
• Director, Proton Commerce Sdn Bhd
• Director, CIMB Bancom Capital
Corporation
• Director, CIMB Bank (Vietnam) Limited
RELEVANT EXPERIENCE
ȏ $V*URXS&KLHI3HRSOH2ɝFHU*XUGLSLV
responsible for setting the human capital
direction and strategy of the Group, in
alignment with the Group’s overall strategy
design, performance management, talent
acquisition and management, employee
experience and learning
• Prior to his appointment as Group Chief
3HRSOH2ɝFHU*XUGLSKHOGWKHSRVLWLRQRI
*URXS&KLHI6WUDWHJ\DQG'HVLJQ2ɝFHURI
CIMB Group, overseeing and supporting
the execution of transformation and
growth initiatives under T18 and
)RUZDUG
• Before joining CIMB Group, Gurdip spent a
decade in an international management
FRQVXOWLQJȴUPDGYLVLQJEDQNV
telecommunications companies and
Governments across ASEAN, India, South
Korea and Spain

DAVID RICHARD THOMAS QUALIFICATION management policies and frameworks,

*URXS&KLHI5LVN2ɝFHU • Bachelor’s Degree, Whitman College, including operationalising the Risk Appetite
Washington USA Statement. The Risk Division of CIMB
*URXSLGHQWLȴHVDVVHVVHVPHDVXUHV
Nationality American controls and reports the material risks that
DIRECTORSHIP/RELEVANT APPOINTMENTS
Age 61 may impact the Group’s business
• Commissioner, PT Bank CIMB Niaga Tbk
Gender Male RSHUDWLRQVSURȴWDELOLW\FDSLWDODQGRU
reputation
RELEVANT EXPERIENCE
ȏ 6HUYHGDVWKH&KLHI5LVN2ɝFHUIRU$VLD
• Oversees the risk management function of
CIMB Group, including Credit, Market,
Non-Financial Risk, Shariah, Asset Liability
Management and Credit Risk Infrastructure
& Risk Analytics
• Responsible for ensuring the consistent
implementation of the Group’s risk
KWAN KEEN YEW QUALIFICATION
*URXS&KLHI/HJDO &RPSOLDQFH2ɝFHU • Bachelor of Laws (Hons), University of
6KHɝHOG8.
Nationality Malaysian
DIRECTORSHIP/RELEVANT APPOINTMENTS
Age 46
• Nil
Gender Male
RELEVANT EXPERIENCE
• Oversees the Group Legal and Compliance
function which is responsible for the
management of regulatory, legal and
compliance risks across CIMB Group
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
3DFLȴFIRUWKH5R\DO%DQNRI6FRWODQG5%6
Prior to RBS, he served as the Chief Credit
2ɝFHUIRU$VLD3DFLȴFIRU%DQNRI$PHULFD
• Held various senior level positions based
in Singapore, Hong Kong, Thailand and
Taiwan throughout his 26-year tenure in
Asia
• Held various roles in a foreign bank which
included Regional Head of Compliance for
Malaysia, Australia, Brunei, and Vietnam,
Head of Wholesale Banking Compliance for
Hong Kong, and Head of Legal &
Compliance for Malaysia
• Prior to joining the banking industry, Keen
Yew was in private practice at a regional
ODZȴUPDQGZDVDGYLVLQJFOLHQWVRQ
SURMHFWVDVZHOODVEDQNLQJDQGȴQDQFH
111
LEADERSHIP

Group Management Profile

AMRAN MOHAMAD QUALIFICATION Audit Committees of Group's subsidiaries

Group Chief Internal Auditor • Bachelor of Science (Hons) in Accountancy, in discharging their responsibilities, as well
University of East Anglia, Norwich, UK as managing their respective governance,
• Fellow member of the Association of risk and control functions. He oversees the
Nationality Malaysian Internal Audit functions across the entire
&KDUWHUHG&HUWLȴHG$FFRXQWDQWV$&&$
Age 45 • Member of the Malaysian Institute of
Gender Male Accountants (MIA)
• Member of Institute of Internal Auditors
Malaysia (IIA)
DIRECTORSHIP/RELEVANT APPOINTMENTS
• Nil
RELEVANT EXPERIENCE
• Ensures that the Group Corporate
Assurance Division supports the CIMB
Group Audit Committee, CIMB Banking
Group Audit Committee and other relevant
112 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
Group
• Amran has over 20 years of audit
experience in the areas of capital market,
corporate and retail banking gained
working in Malaysia and the United
Kingdom. Amran’s last held position before
joining CIMB was Senior Vice President,
Internal Audit with Royal Bank of Scotland
in London. He had also previously worked
with PwC, KPMG, UniCredit Bank and
Barclays Capital
 Human Capital
Development

We started the year 2020 with a focus on various programmes designed to build
capability in the digital space, motivate performance and build A Better CIMB (ABC)
FXOWXUH7RZDUGVWKHHQGRIWKHȴUVWTXDUWHUZHZHUHVZLIWLQUHVSRQGLQJWRRXU
stakeholders, mainly helping them navigate through the impact of the novel Corona Virus
or COVID-19. The health crisis and the resultant movement restrictions accelerated
GLJLWDOLVDWLRQLQERWKWKHPDUNHWSODFHDQGWKHZRUNSODFH2XUH΍RUWVZHUHIRFXVHGRQ
achieving a balance between safeguarding the health and the well-being of our employees,
while helping them to remain productive even with the new normal of virtual and onsite
working arrangements. Towards the latter part of the year, in line with a new leadership
DQGDUHFDOLEUDWHG)RUZDUGVWUDWHJ\KXPDQFDSLWDOZDVUHDɝUPHGDVRQHRIWKHNH\
result areas. This resulted in a series of focused programmes and interventions.

+XPDQ&DSLWDODQG+XPDQ&DSLWDO(ɝFLHQF\DUHFULWLFDOLQSXWVIRUGHOLYHULQJYDOXHWRRXUVWDNHKROGHUVLQWKHȴQDQFLDOVHUYLFHVVHFWRU
From our skilled portfolio managers, to our responsive customer service personnel; from our dedicated relationship managers to our
adept technology specialists; from experienced leaders to committed executives – every employee of CIMB contributes to our
performance and growth, positioning CIMB as a focused ASEAN banking group. At CIMB, our human capital growth strategies are
premised on three key fundamentals:

Deploy a Robust People Strategy Create a Workplace Ecosystem Levarage on the Value of Data

Driven at the top-most levels Aimed at attracting and Focused on understanding

of the organisation, to nurturing talent, making the employees and shaping
ensure human capital is most of their inherent programmes and policies to
nurtured and optimised. strengths as well as develop improve their experience
skills for the future. with CIMB.

Strategic Themes Material Matters &DSLWDOV$΍HFWHG

Purpose-driven Organisation

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 113

LEADERSHIP

Human Capital Development

FREE
COVID-19 insurance
ZERO HOW WE and screening for all
(PSOR\HH/D\R΍V C R E AT E D VA L U E employees in
or Pay-cuts IN 2020 Thailand and
Malaysia
respectively

RM1.01 500%
million increase in number
on COVID-19 of training hours
screening in delivered under
Malaysia '$FDGHP\

According to MSCI, human capital has been amongst the top ESG trends in 2020, where businesses have had to deal with the
XQSUHFHGHQWHGLPSDFWRI&29Ζ'RQSHRSOH%XVLQHVVHVKDYHKDGWRPDNHGLɝFXOWGHFLVLRQVDQGWUDGHR΍VLQWKHIDFHRIWKLVJOREDO
health crisis, balancing internal human capital requirements to ensure business continuity and seamless delivery of services. The
DGGHGFKDOOHQJHZDVWRUHWDLQWKHPXFKQHHGHGKXPDQFDSLWDODPLGVWSRRUPDUNHWDQGȴQDQFLDOSHUIRUPDQFH0RVWEXVLQHVVHV
WDFNOHGWKHVLWXDWLRQE\WDNLQJFDOFXODWHGGHFLVLRQVEDODQFLQJEHWZHHQOD\LQJR΍HPSOR\HHVZKLOHDOVRUHFUXLWLQJQHZWDOHQWZKRFDQ
assume critical roles in an operating environment where we have witnessed accelerated digital enablement due to the restrictions in
movement and health scares. In short, the current crisis that erupted in early 2020 has reinforced how economies, business
performance and human capital are interdependent for shaping an inclusive, progressive, and sustainable world.

In 2020, at CIMB, our primary focus was on the following four areas, with an ultimate objective to drive a customer-centric,
collaborative and positive work culture through A Better CIMB (ABC) and a refreshed set of values.

Focus Areas in 2020 Key Initiatives Achievements

Health & Safety of – Safe Workplace Measures • RM4.7 million invested as digital enablement
our Workforce Ȃ :HOIDUHDQG:HOOEHLQJ%HQHȴWV EHQHȴWIRUQRQPDQDJHPHQWDQGMXQLRUVWD΍WR
support access to digital platforms and
technology

Adapting to the – Viable Remote Working Infrastructure ȏ 6WD΍FRQWLQXHGWRZRUNIURPKRPHLQOLQHZLWK

New Normal – Listening Posts and Pulse Surveys & Engagement the BCP activation plan in a pandemic scenario.
– Employee Communications and Motivation

114 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Human Capital Development

Focus Areas in 2020 Key Initiatives Achievements

Upskilling and – Programmes to drive Digital Transformation
Reskilling Initiatives Ȃ 7HFKQRORJ\ΖQIUDVWUXFWXUH'LJLWDO(QDEOHPHQWIRUD
Digital Workforce (Knowledge Acquisition)
ȏ ''LJLWDO'DWD 'HVLJQPRELOHHQDEOHG
learning modules on Gametize made mandatory
for Malaysia and Indonesia
• 2,297 employees from ASEAN region attended
'LQWHUPHGLDWHRUDGYDQFHGOHYHOSURJUDPPHV
in AI, data science, design thinking
• 50% of Associates under our graduate associate
programme, The Complete Banker (TCB) and the
CIMB ASEAN Scholarship Programme are from
non-business disciplines such as engineering,
mathematics, bio-medical sciences and
psychology

New ‘People – High-Performance & Purpose-driven Culture • CIMB Future of Work awarded TalentCorp’s 2019
Strategy’ to support – Digital and Tech Talent in addition to Talent from Life@Work Awards for “Outstanding Practice
Forward23+ outside Financial Services or Non-Business – Talent Development Initiative”
Disciplines ȏ RIQHZUHFUXLWVLQIURPQRQȴQDQFLDO
– New Rewards and Recognition through ABC institutions mainly in digital and technology roles
Culture-Building Initiatives ȏ $VVRFLDWHVRQERDUGHGDVWKHȴUVWFRKRUWRI
TCB Digital, a graduate programme targeted at
tech talent

FEATURE: OUR COVID-19 EMPLOYEE RESPONSE

By 2020Q1, we saw an increase in community-wide COVID-19 infections and movement control orders were implemented
in all the core ASEAN markets where we operate. As a provider of essential services, our priority was to shift our focus on
VXSSRUWLQJEXVLQHVVFRQWLQXLW\H΍RUWVZKLOHHQVXULQJWKHKHDOWKVDIHW\ZHOOEHLQJDQGPRUDOHRIRXUHPSOR\HHV

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 115

LEADERSHIP

Human Capital Development

P R O T E C T I N G O U R E M P L OY E E S A N D E N S U R I N G T H E I R W E L L - B E I N G

In early 2020, we deliberated and anticipated the potential impact of COVID-19 on our work life. In February, the Business Continuity
Team had already initiated a phased transition to work-from-home arrangements. The deployment of digital platforms for
communication and collaboration was accelerated to enable teams to continue working remotely. At the pandemic's peak in April,
approximately 65% of employees across Malaysia, Indonesia, Singapore and Thailand opted for work-from-home arrangement.

+RZHYHUWKHUHZHUHDOVRDSSUR[LPDWHO\RIRXUHPSOR\HHVZKRZHUHXQDEOHWRZRUNIURPKRPHGXHWRWKHQDWXUHRIWKHLUUROHV
FRQWLQXHGWRZRUNRQVLWH7KH\ZHUHRXUIURQWOLQHUVDWRXUEUDQFKHVDQGRXUEDFNHQGΖ7RSHUDWLRQV:HSUDFWLFHGVSOLWRSHUDWLRQV
VKLIWVDURVWHUZLWKWLJKWHU623VWRUHGXFHH[SRVXUHDQGHQKDQFHHPSOR\HHȇVDIHW\

• Supported employees with ȏ 'LVLQIHFWLRQRIKRPHVRIVWD΍

personal protective with or who have been in
At Work At Home
equipment and sanitisers direct contact with COVID-19
• Adapted branches to reduce positive cases
in-person contact • Testing for employees'
• Limited the number of parents aged 60 and above
customers allowed into
branches at any one time
• Mandated screening for
employees who were in close
contact with positive cases
• Flight or accommodation
compensation for travel
cancelled during the
movement control period
ȏ 2΍HUHGPHDODOORZDQFHVZKLOH
working during restricted
movement
ȏ 5HVWULFWHGLQWHUȵRRU
movement or socialisation
among split teams
• Operationalised a call tree to
keep employees informed and
provide quick updates
ȏ 2΍HUHGORDQPRUDWRULXPWR
employees for 6 months and a
VXEVHTXHQWPRQWK
extension (for those who
TXDOLȴHG

While these measures did not entirely prevent our employees from being infected with COVID-19, through contact tracing and split
operations, on-site infections were contained and we established that these infections were likely to have occurred outside of our work
premises.

)RUHPSOR\HHVLQIHFWHGLQ0DOD\VLDZHSURYLGHGIXUWKHUȴQDQFLDODVVLVWDQFHDPRXQWLQJWR50SHUHPSOR\HHDQGSURYLGHG
disinfection services of their homes and branches where they worked.

116 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Human Capital Development

E M P L OY E E E N G A G E M E N T A N D L I S T E N I N G

ΖQD\HDUȴOOHGZLWKXQFHUWDLQWLHVLWZDVKLJKO\FULWLFDOWRHQJDJHHPSOR\HHVPDLQO\WRERRVWWKHLUPRUDOHDVZHOODVKHOSWKHPFRSHZLWK
PHQWDOGLVWUHVVDVVRFLDWHGZLWKWKHKHDOWKVFDUHDQGSRWHQWLDOWKUHDWWRSURGXFWLYLW\DQGLQFRPHV(΍HFWLYHDQGHɝFLHQWLQWHUQDO
communications proved extremely valuable in retaining talent and keeping them motivated as part of our productive workforce. Digital
solutions especially the CIMB Intranet and virtual meeting platforms helped maintain a healthy channel for dialogue and exchange of
mission-critical information between the teams and senior leadership.

In May 2020, we conducted an independent third-party pulse survey to gauge employee engagement levels and understand the
pandemic’s impact on well-being, stress and new ways of working virtually. The survey focused on four key areas: wellness and safety,
FRQFHUQVDQGFRQQHFWLRQVHQLRUOHDGHUVKLSUHVSRQVHDQGFRPPXQLFDWLRQDVZHOODVYLUWXDOZRUNH΍HFWLYHQHVV

Senior Leadership Frontline Managers

(78%) (84%)
Sharing concern and connection with co-employees in the spirit of #teamCIMB

7KHȴQGLQJVRIWKH
Key Strengths Good peer support to deliver work Clarity in process and policies
survey indicated that our
employees’ experiences (84%) (79%)
were consistent with
those of over 158
companies that 0RUHH΍HFWLYH Better Review of certain
participated in the virtual work communication on work processes to
survey. technologies for remote working LPSURYHHɝFLHQFLHV
collaboration and arrangements to and ensure seamless
productivity help employees delivery.
Employees
manage boundaries
Needed Support (65%) between work and
personal life.

C I M B G R O U P ’ S R E S P O N S E T O E M P L OY E E E X P E C TAT I O N S

• Introduced fun and
uplifting Group wide
activities on social media
platforms
• Increased intensity of
employee recognition
campaign taking
advantage of a new
endorsement module
available on our HR
system, Y.O.D.A. (Your
Own Digital Assistant)
• Recognised front liners • Conducted virtual learning
with weekly messages VHVVLRQVWRWUDLQVWD΍WR
from senior management support customers during
and disseminated these the pandemic
messages across multiple
digital platforms to ensure
maximum outreach

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 117

LEADERSHIP

Human Capital Development

S U P P O R T I N G A N D I N T E N S I F Y I N G D I G I TA L U P S K I L L I N G E F F O R T S A N D A C C E S S T O D I G I TA L

We continued to focus on creating and strengthening the digital quotient of our workforce in line with the demands of accelerated
digitalisation brought on by the pandemic. As such, improving digital skills and access to tools, remote work management and digital
learning were prioritised to help employees upskill and acquire the skills needed to operate in the new normal.

Going beyond training, we also looked into the material needs of employees who suddenly found themselves having to work from
home and priority was given to those most in need of support in accessing technology and adapting to new modes of working. Our
priority was to remain inclusive in our approach and leave no one behind when it comes to digital enablement.

Digital Data Plan

Allowance for
Non-Management
and Junior Grades

Digital Training
INCLUSIVE DIGITAL
Subsidy for all
ENABLEMENT
Employees at all
BENEFITS:
Levels to support
LEAVING NO
Online Courses and
ONE BEHIND
Workshops

Digital Enablement
%HQHȴWIRU1RQ
Management and
Junior Grades

S H I F T I N G O U R P E O P L E S T R AT E G Y W I T H F O R W A R D2 3 +

ΖQWKHODVWTXDUWHURIZHHPEDUNHGRQDQHZRUJDQLVDWLRQZLGHH[HUFLVHWRUHFDOLEUDWHDQGODXQFK)RUZDUGVWUDWHJ\
Following this, we also revised and realigned our People policies and programmes to support the new strategy and our vision to be a
leading focused ASEAN bank by 2024.

Under the revised plan, Human Capital Growth as a function will continue to deliver value and support the business in achieving its
REMHFWLYHVDFURVVIRXUNH\SURJUDPPHVZKLFKDUHSDUNHGXQGHUȴYHVWUDWHJLFWKHPHVRI)RUZDUG:KLOHWKHVHSURJUDPPHVZLOOEH
RXUSULPDU\IRFXVRWKHULQLWLDWLYHVUROOHGRXWWRHQVXUHRXUSHRSOHUHPDLQFRQȴGHQWDQGFRPSHWHQWWRRSHUDWHLQDGLJLWDO
environment will also continue. In this age of digital imperative, when designing various people-centric interventions, including crafting
new policies and processes, we will look at opportunities for human capital growth that are also conducive to the growth of the
organisation as well as our ecosystem.

118 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Human Capital Development

Strategic theme Why

An organisational design and size that
UHȵHFWVEXVLQHVVQHHGVDQGVXSSRUWVWKH
desired organisational culture.

01 Delivering Sustainable
Financial Returns
Organisation Design

$ȴWIRUSXUSRVHSHUIRUPDQFH
management framework and rewards
strategy that drives the desired
02 behaviours, accountability as well as
alignment with business goals.
Revised Disciplined Execution
Performance
Framework and
Rewards

$FXOWXUHUHȵHFWLYHRIDSXUSRVHGULYHQ
organisation and that seeks to drive
accountability, collaboration and inspire
customer trust.
 Purpose-driven
Values and Organisation
Culture

Reviewing Group HR and re-examining

policies, processes and practices to:
• curate career paths for talent at various
OHYHOVFDWHULQJWRGL΍HUHQWDVSLUDWLRQV

04 • enhance delivery of the Employee

Experience (Ex);
HR Blueprint • achieve Diversity and Inclusion targets
Purpose-driven especially in narrowing the gender gap
Organisation in remuneration and increasing female
participation at the Board and C-level;
• increase the use of data in decision
making and programme and policy
design; and
• deliver organisational capability that
creates value for stakeholders in a
sustainable way.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 119

LEADERSHIP

Corporate
Structure

100% Other Subsidiaries

iCIMB (MSC) SDN. BHD.

85.83%
TOUCH ‘N GO SDN. BHD.

47.1%
TNG DIGITAL SDN. BHD.

100%
CIMB GROUP SDN. BHD.

99.99% 100%
CIMB BANK BERHAD CIMB INVESTMENT BANK
BERHAD
100%
CIMB ISLAMIC BANK BERHAD
OTHER SUBSIDIARIES
100%
CIMB BANK (L) LTD.
100% 100%
iCIMB (MALAYSIA) SDN. BHD. CIMB SI SDN. BHD.

94.83%
CIMB THAI BANK PUBLIC 100%
COMPANY LTD. CIMB SI 1 SDN. BHD.
100%
CIMB BANK PLC (CAMBODIA)
14.17%
100% TOUCH ‘N GO SDN. BHD.
CIMB BANK (VIETNAM) LIMITED

OTHER SUBSIDIARIES
60%
CIMB BANCOM CAPITAL
CORPORATION

92.5% 50%
PT BANK CIMB NIAGA TBK CGS-CIMB SECURITIES
INTERNATIONAL PTE. LTD.

OTHER SUBSIDIARIES
OTHER SUBSIDIARIES

120 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Group
Organisation Structure

B OA R D O F D I R E C T O R S

BOARD COMMITTEES

GROUP CORPORATE ASSURANCE

GROUP RISK

GROUP LEGAL & COMPLIANCE

GROUP CHIEF
E XECUTIVE OFFICER

GROUP COMPANY SECRETARY

COUNTRY HEADS GROUP STRATEGY AND

GROUP CEO’S OFFICE

GROUP SUSTAINABILITY

GROUP WHOLESALE BANKING GROUP FINANCE

GROUP CONSUMER BANKING GROUP HUMAN RESOURCE

GROUP COMMERCIAL BANKING GROUP TECHNOLOGY AND DATA

GROUP TRANSACTION BANKING GROUP BRANDING AND

COMMUNICATION
GROUP ISLAMIC BANKING

CIMB DIGITAL ASSETS

BUSINESS UNITS BUSINESS ENABLERS

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 121

G O V E R NA N CE

Chairman’s Statement on
Corporate Governance

D E A R S TA K E H O L D E R S ,
At CIMB, the emphasis has been to understand the
application of corporate governance principles for
corporate sustainability – to bring about reforms,
UHYLYDODQGUHVLOLHQFHWRWKLQNGL΍HUHQWO\DQGSURYLGH
both immediate solutions and an impetus to
recovery; and most importantly, to balance near-term
priorities with long-term growth objectives.

It is my privilege to present the CIMB 2020 Corporate

Governance Overview Statement.

The COVID-19 pandemic has posed extraordinary risks and

many challenges for transparency, participation and
accountability. It has been a real test of Corporate
Governance in practice across organisations and
governments around the world.

A report by Euler Hermes states that
“COVID-19 is creating an insolvency time
bomb”, predicting a 35% hike in
insolvencies between 2019 and 20211.
:KLOHPRVWD΍HFWHGDUHVPDOOWRPHGLXP
sized enterprises (SMEs), large companies
are also at stake. Major players in various
sectors, such as aviation, retail and oil and
JDVKDYHVLPLODUO\VX΍HUHGIURP
bankruptcies.
7KHVLJQLȴFDQWHFRQRPLFFRQWUDFWLRQ
triggered by the virus is a strong example
RIWKHPDWHULDOLPSRUWDQFHRI(6*
%H\RQGWKHLPSDFWVRIWKHSDQGHPLFLQ
late 2020, we also witnessed the Local
$XWKRULW\3HQVLRQ)XQG)RUXPRIWKH8.
put out a statement seeking mandatory
climate votes, giving investors an annual
VD\RQ%RDUGȇVSODQVWRFXWFDUERQ
emissions. Earlier in the year, Barclays Plc
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SURSRVDODWWKHEDQNȇV$QQXDO*HQHUDO
Meeting. Similarly, the Investor Forum that
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FDPHIRUZDUGWRVWURQJO\VXSSRUWD
non-binding shareholder vote that would
VHQGDSRZHUIXOVLJQDORQWKHH΍HFWLYHQHVV
At CIMB, we believe it is more than just a
ȴGXFLDU\UHVSRQVLELOLW\RIWKH%RDUGWR
UHLQIRUFHWKHLQWHJUDWLRQRI(6*
considerations into the governance,
VWUDWHJ\DQGRSHUDWLRQVRIWKH*URXS$V
we adapt to a new economic landscape
and evolving expectations, we are aligning
our strategic priorities with intangible
GULYHUVIRUYDOXHFUHDWLRQ
7RGD\ȇVXQLTXHFLUFXPVWDQFHV
demonstrate the need to continuously
reassess policies and enhance business
FRQWLQXLW\DQGFULVLVSODQVIRUWKHLU
(QYLURQPHQWDO6RFLDODQG*RYHUQDQFH
risks. The crisis highlights our own position
as a stakeholder, in which we have intrinsic
LQWHUHVWVLQWKHUHVLOLHQF\RIUHJLRQDODQG
global economic, social and environmental
RIDQ\PDQGDWHGFOLPDWHGLVFORVXUHV
7KLVJURZLQJWUHQGUHLQIRUFHVWKHUROHRI
WKH%RDUGRI'LUHFWRUVLQFOXGLQJWKH
independent non-executive directors
H΍HFWLYHQHVV'XULQJWKH\HDUWKH%RDUG
supported various management strategies
GHSOR\HGIRUSURWHFWLQJHPSOR\HHV
customers and other stakeholders i.e. with
DȆQHZQRUPDOȇRIUHPRWHZRUNLQJ
systems. In Malaysia, we saw the
FRQVHTXHQFHVRIWKHLQFUHDVLQJSUHVVXUHV
GXHWRLQYHVWRUDFWLYLVPRQ(6*
SHUIRUPDQFH2QHRIWKHZRUOGȇVELJJHVW
asset manager, BlackRock Inc had raised
FRQFHUQVRQWKHPDQDJHPHQWRI&29Ζ'
outbreak by a major local company, and
YRWHGDJDLQVWUHHOHFWLRQRIWKH
LQGHSHQGHQWGLUHFWRUVDWLWVODVW$*0
Ζ1('VLQFKDPSLRQLQJ(6*JRYHUQDQFH
PDLQO\WRVWUHQJWKHQLQYHVWRUFRQȴGHQFH
LQ(6*PLWLJDWLRQDQGWUDQVLWLRQVWUDWHJLHV
RIDEXVLQHVVVDIHJXDUGLQJWKHLQWHUHVWVRI
shareholders.
arrangements and social-distancing while
banking. The Board encouraged an open
dialogue on the immediate workplace
health and productivity issues as well as
the impending business challenges. The
%RDUGDOVRSURYLGHGNH\RYHUVLJKWRI
ORQJWHUPȴQDQFLDOULVNVDQGUHVLOLHQF\
measures, while management strategies
IRFXVHGRQVXSSRUWLQJFULWLFDOIXQFWLRQV
DQGRSHUDWLRQVIRUEXVLQHVVFRQWLQXLW\

 KWWSVZZZHXOHUKHUPHVFRPHQBJOREDO$3$&DSDFHFRQRPLFUHVHDUFK&DOPEHIRUHWKHVWRUP&RYLGDQGWKHEXVLQHVVLQVROYHQF\WLPHERPEKWPO

122 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


During the year under review, the Board
SOD\HGDFULWLFDOUROHLQIXUWKHU
FKDPSLRQLQJH΍RUWVWRVWUHQJWKHQWKH
JRYHUQDQFHSUDFWLFHVRI&Ζ0%DQGLWV
Board. In February 2020, the Board
HVWDEOLVKHGD&RGHRI&RQGXFWIRU
Directors which provides a transparent
RYHUYLHZRIWKHKLJKHUH[SHFWDWLRQVDQG
VWDQGDUGVVHWIRU'LUHFWRUVRI&Ζ0%:H
also introduced the Board Diversity
Framework to guide the Board in
GHWHUPLQLQJWKHRSWLPXPFRPSRVLWLRQRI
WKH%RDUGWDNLQJLQWRFRQVLGHUDWLRQ(6*
principles.
In garnering the Senior Management
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better decision-making with clearer
accountability and outcomes, we
streamlined the Management Committees
WRVKLIWWKHIRFXVWRZDUGVSHUIRUPDQFH
oversight and monitoring, introducing
LQWHUQDOJXLGHOLQHVWRIXUWKHUVWUHQJWKHQ
ULVNDZDUHQHVV7RSXW0DQDJHPHQWȇV
interest into greater alignment with
sustainable practices, CIMB has, since
OLQNHGWKHNH\SHUIRUPDQFH
LQGLFDWRUVRIWKH6HQLRU0DQDJHPHQW
7HDPLQFOXGLQJWKH*URXS&KLHI([HFXWLYH
2ɝFHUZLWKVXVWDLQDELOLW\SHUIRUPDQFH
Chairman’s Statement on Corporate Governance
ΖQ'HFHPEHU&Ζ0%EHFDPHWKHȴUVW
bank in Malaysia to commit to distancing
IURPFRDOȴQDQFLQJZKHQZHDQQRXQFHG
WKDWZHZLOOFHDVHWRIXQGQHZWKHUPDOFRDO
projects as well as existing coal by 2040. In
addition, recognising that SMEs are the
HQJLQHRIHFRQRPLFJURZWK&Ζ0%KDV
pioneered sustainability-linked loans in
Malaysia, where lower interest charges are
R΍HUHGWR60(VWKDWKDYHVXVWDLQDELOLW\
targets.
Post-pandemic, the Board will remain agile
DQGSURDFWLYHWRFXUUHQWDQGIXWXUHULVNV
Where necessary, we will re-prioritise our
IRFXVDUHDVEDVHGRQWKHHYROYLQJVLWXDWLRQ
over the next 2 years. Most importantly, we
ZLOOQRWIDOWHUDVDSXUSRVHGULYHQ
organisation, committed to advancing
customers and society. We will adapt and
operate to the changing market,
stakeholders, and business contexts,
without compromising on value creation.
Datuk Mohd Nasir Ahmad
Chairman
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 123
G O V E R NA N CE

Corporate Governance
Overview Statement
(Pursuant to Paragraph 15.25(1) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad)

The Board is strongly During the year ended 31 December 2020, 5) Best Corporate & Investment Bank by
&Ζ0%ȇVFRUSRUDWHJRYHUQDQFHSUDFWLFHV $VLDPRQH\%HVW%DQN$ZDUGVIRU
committed to ensuring that were consistent and complied with the Malaysia 2020
CIMB’s systems, procedures IROORZLQJJXLGHOLQHVDQGEHVWSUDFWLFHV
 0RVW2XWVWDQGLQJ0DOD\VLDQ%UDQG
DQGSUDFWLFHVUHȵHFWDKLJK  %DQN1HJDUD0DOD\VLD%10ȇV 2019 – Banking by Branding
standard of corporate &RUSRUDWH*RYHUQDQFH3ROLF\ $VVRFLDWLRQRI0DOD\VLD
%10&*3ROLF\
governance. It has a well- 7) Best Private Bank in Malaysia by
2) Main Market Listing Requirements *OREDO)LQDQFH3ULYDWH%DQN$ZDUGV
GHȴQHGDQGZHOOVWUXFWXUHG
00/5RI%XUVD0DOD\VLD6HFXULWLHV 2020
corporate governance Berhad (Bursa Malaysia)
8) Best Bond House in Southeast Asia
framework in place to  0DOD\VLDQ&RGHRI&RUSRUDWH by Alpha Southeast Asia 14th Deal
support the Board’s aim of *RYHUQDQFH0&&*SXEOLVKHGE\WKH and Solution Awards 2020
achieving long-term and Securities Commission
 %HVW5LQJJLW6XNXN+RXVHRIWKH<HDU
sustainable value, as well as  &RUSRUDWH*RYHUQDQFH*XLGHUG by Alpha Southeast Asia 14th Deal
(GLWLRQ&**XLGHSXEOLVKHGE\ and Solution Awards 2020
fostering a culture that Bursa Malaysia
10) Best Social Impact Islamic Finance
values ethical behaviour,
 0LQRULW\6KDUHKROGHU:DWFK*URXS House in Asia by Alpha Southeast
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124 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

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G O V E R NA N CE
Corporate Governance Overview Statement
PR INCIPLE A : BOA R D LE A DE R S HIP A ND E FFEC T I V E NE S S
BOARD RESPONSIBILITIES
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deliver sustainable value to its
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stakeholders including employees,
customers, suppliers, business partners,
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to ensure optimal balance, resulting in
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Chairperson.
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scheduled meetings are determined well in
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implementing operational decisions, and is
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the Board, Board Committees and Number of
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reviewed every three years or as change Board 18
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ROLES AND RESPONSIBILITIES OF THE BOARD AND BOARD COMMIT TEES
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G O V E R NA N CE

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Mode of Duration
List of training attended training in day(s)

Accounting and Audit

MFRS 17: Insurance Contract Training Seminar 1
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 129

G O V E R NA N CE

Corporate Governance Overview Statement

Mode of Duration
List of training attended training in day(s)

Capital Markets and Financial Industry (continued)

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Anti-Bribery and Corruption Education Session Seminar 1

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ICDM: Top 5 Strategies For Board Directors to Implement AI Seminar 1
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$VLDQΖQVWLWXWHRI&KDUWHUHG%DQNHUV$Ζ&%'LJLWDO%DQNLQJ0DOD\VLDQ%DQNVDWD&URVVURDGV Seminar 1
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FIDE: Digital Banking: Why Does It Matter? Seminar 1
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130 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Corporate Governance Overview Statement

Mode of Duration
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 131

G O V E R NA N CE

Corporate Governance Overview Statement

Mode of Duration
List of training attended training in day(s)

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TIME SPENT ON TR AINING DURING F YE 2020:

Directors Time Spent in day(s)

Datuk Mohd Nasir Ahmad 17

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Robert Neil Coombe 5

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6KXODPLWH1..KRR(appointed on 15 May 2020) 17

Serena Tan Mei Shwen (appointed on 30 September 2020) 4

'DWRȇ$EGXO5DKPDQ$KPDG(appointed on 10 June 2020) 17

$KPDG=XOTDUQDLQ&KH2Q(resigned on 30 June 2020) –

<%6HQDWRU7HQJNX'DWXN6HUL8WDPD=DIUXO7HQJNX$EGXO$]L](resigned on 9 March 2020) –

132 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


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134 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Corporate Governance Overview Statement

R E M U N E R AT I O N

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C I M B G R O U P D I R E C T O R S ’ R E M U N E R AT I O N F R A M E W O R K :
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Chairperson’s
Retainer Fees Premium Meeting Fees
CIMB Group Holdings Berhad (per annum) (per annum) (per meeting)

Board Chairperson* 170,000 510,000 5,000

Member 170,000 N/A 5,000

Audit Committee Chairperson N/A 100,000 5,000

Member N/A N/A 5,000

Board Risk and Compliance Committee Chairperson N/A 100,000 5,000

Member N/A N/A 5,000

*URXS1RPLQDWLRQDQG5HPXQHUDWLRQ Chairperson N/A 100,000 5,000

Committee Member N/A N/A 5,000
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 135

G O V E R NA N CE

Corporate Governance Overview Statement

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CIMB

Chairperson’s Meeting %HQHȴWVLQ Salary and

Fees Premium Allowance kind Remuneration Total
Directors (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000)

1RQ([HFXWLYH'LUHFWRUV
Datuk Mohd Nasir Ahmad 158 475 249 35 – 917
7HRK6X<LQ 158 94 241 – – 493
Robert Neil Coombe 158 94 182 – – 434
'DWRȇ0RKDPHG5RVV0RKG'LQ 158 94 251 – – 503
'DWRȇ/HH.RN.ZDQ 158 – 107 – – 
$I]DO$EGXO5DKLP – – – – – –
'LGL6\DIUXGGLQ<DK\D 158 –  – – 320
6KXODPLWH1..KRR 94 –  – – 154
(appointed on 15 May 2020)
Serena Tan Mei Shwen 38 – 44 – – 82
(appointed on 30 September
2020)
$KPDG=XOTDUQDLQ&KH2Q 83 – 103 – – 
(resigned on 30 June 2020)

Executive Directors
'DWRȇ$EGXO5DKPDQ$KPDG – – – – – –
(appointed on 10 June 2020)
<%6HQDWRU7HQJNX'DWXN6HUL – – – – – –
8WDPD=DIUXO7HQJNX$EGXO$]L]
(resigned on 9 March 2020)

CIMB GROUP

Chairperson’s Meeting %HQHȴWVLQ Salary and

Fees Premium Allowance kind Remuneration Total
Directors (RM’000) (RM’000) (RM’000) (RM’000) (RM’000) (RM’000)

1RQ([HFXWLYH'LUHFWRUV
Datuk Mohd Nasir Ahmad 348  482 35 – 1,513
7HRK6X<LQ 158 94 241 – – 493
Robert Neil Coombe 158 94 182 – – 434
'DWRȇ0RKDPHG5RVV0RKG'LQ 290 225 393  – 954
'DWRȇ/HH.RN.ZDQ 300 – 229 – – 529
$I]DO$EGXO5DKLP – – – – – –
'LGL6\DIUXGGLQ<DK\D 720 –  – – 1,352
6KXODPLWH1..KRR 94 –  – – 154
(appointed on 15 May 2020)
Serena Tan Mei Shwen 179 –  – – 342
(appointed on 30 September
2020)
$KPDG=XOTDUQDLQ&KH2Q 83 – 103 – – 
(resigned on 30 June 2020)

Executive Directors
'DWRȇ$EGXO5DKPDQ$KPDG – – – 4 2,405 2,409
(appointed on 10 June 2020)
<%6HQDWRU7HQJNX'DWXN6HUL – – – 2 590 592
8WDPD=DIUXO7HQJNX$EGXO$]L]
(resigned on 9 March 2020)

136 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Corporate Governance Overview Statement

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C I M B G R O U P R E M U N E R AT I O N P O L I C Y
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Principle Purpose Approach

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perspectives and incorporates measures related to
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risk-adjusted return on capital (RAROC) and
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remuneration schemes

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competitiveness motivate and retain the right talent geographies and industries in which CIMB operate

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shares (through participation in the Equity SHUIRUPLQJHPSOR\HHVZKRJHQHUDWHVKDUHKROGHU
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 137

G O V E R NA N CE
Corporate Governance Overview Statement
The Equity Ownership Plan serves as the
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• mitigating a short-term mindset and
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sustainability; and
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bonus and/or EOP shares) that has not
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MEASUREMENT OF
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has the discretion to adjust the pool where
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accordance with a balanced scorecard
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milestones or ROI may be monitored), risk
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138 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Corporate Governance Overview Statement

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TA B L E 2 : B R E A K D O W N O F D E F E R R E D R E M U N E R AT I O N

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Category (RM’000) (RM’000)

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• Cash  
• Shares 15,212 18,477

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• Reductions in current year due to ex-post adjustments (explicit) – –
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TA B L E 3 : B R E A K D O W N O F G R O U P C E O ’ S R E M U N E R AT I O N

Cash Shares Total

Name Category (RM’000) (RM’000) (RM’000)

'DWRȇ$EGXO5DKPDQ$KPDG Fixed remuneration  – 

(appointed on 10 June 2020) Variable remuneration
ȏ 1RQGHIHUUHG 531 – 531
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Total remuneration award for

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Aziz ȏ 1RQGHIHUUHG – – –
(resigned on 9 March 2020) ȏ 'HIHUUHG – – –

Total remuneration award for

ȴQDQFLDO\HDU 590 – 590

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 139

G O V E R NA N CE

Corporate Governance Overview Statement

PR INCIPLE B: E FFEC T I V E AUDI T A ND R I S K M A N AGE ME N T

AUDIT COMMIT TEE RISK MANAGEMENT AND

INTERNAL CONTROL
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Mohd Din and the members are Teoh Su
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whom are Independent Directors.
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management experience or expertise. The
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relevant experience, and is not the
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promote robust and open deliberations by
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CIMB has in place a process to consider
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External Auditors, which is in line with
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process requires the AC to assess the
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includes evaluating the independence,
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Auditors.
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that the objectivity, independence and
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constantly keeping abreast with
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governance. To this end, the Board
continues to be involved in determining
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assessing and monitoring key risks to
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CIMB to meet its strategic objectives. For
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risk management. Whilst it is not possible
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internal controls is designed to mitigate
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controlling risks, including operational risk.
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are Independent Directors. The BRCC is
chaired by Robert Neil Coombe. Similarly,
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controls, risk management processes and
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and provides independent appraisal on
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governance processes implemented by
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reviewed periodically by the AC to ensure
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recommended corrective actions.
Management is responsible to ensure that
corrective actions on reported weaknesses
are executed within an appropriate
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Management on corrective actions are
closely monitored and undue delays have
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maintained. As per the Board Charter, the
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140 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
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standardised approach to manage the
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Senior Management with a tool to
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changes in business strategies, external
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and reviewing the risk management
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In addition, periodic external assessment
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independent reviewer to assess its
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and the pertinent regulations. As at 31
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PR INCIPLE C: INTEGR IT Y IN COR P OR AT E R E POR T ING A ND ME A NINGFUL
R E L AT I ON S HIP W I T H S TA K E HOLDE R S
C O M M U N I C AT I O N W I T H
S TA K E H O L D E R S
CONDUC T OF GENER AL
MEETINGS
The Board ensures that Shareholders are
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the resolutions that will be discussed and
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proposed, along with any relevant
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Agenda were also published in the local
English and Bahasa Malaysia newspapers
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Corporate Governance Overview Statement
SUMMARY
The Board considers that CIMB has 7KLV&RUSRUDWH*RYHUQDQFH2YHUYLHZ
FRPSOLHGDQGDSSOLHGWKH3ULQFLSOHVRIWKH Statement is made in accordance with the
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where there is a departure and these 3ULQFLSOHVRI0&&*GXULQJWKHȴQDQFLDO
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www.cimb.com under https://www.cimb.
ȏ 'LVFORVXUHRIDOWHUQDWLYHSUDFWLFH
com/en/investor-relations/reports-and-
adopted and how the alternative
presentations/annual-reports.html#read/
practice achieves the Intended
Outcome;
• Actions which CIMB has taken or intends
to take; and
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the Securities Commission Malaysia.
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Shareholders as the Attendance List. The
Chairperson, who chaired the proceedings,
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Shareholders to exercise their rights to
raise questions and make
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the meeting and made available within two
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at www.cimb.com.
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poll voting to enable all Shareholders to
cast their votes. The Share Registrar,
Boardroom Share Registrars Sdn Bhd,
acted as the Poll Administrator to conduct
the online electronic polling process and
Messrs Deloitte was appointed as the
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P R A C T I C E 7. 2
The Board has decided not to disclose, on
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business interests, given the sensitive
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industry.
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management positions in their respective
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 &(2&Ζ0%*URXS+ROGLQJV%HUKDG
2. CEO, CIMB Bank Berhad*
3. CEO, CIMB Investment Bank Berhad
4. CEO, CIMB Islamic Bank Berhad
* Positions 1 and 2 are held by the same individual
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 141
G O V E R NA N CE
Additional
Disclosures
(As at 31 December 2020 pursuant to the Main Market Listing Requirements of Bursa Malaysia Securities Berhad)
1. U T I L I S AT I O N O F P R O C E E D S
R A I S E D F R O M C O R P O R AT E
PROPOSALS
'XULQJWKHȴQDQFLDO\HDUHQGHG
'HFHPEHUWKH*URXSKDVFROOHFWLYHO\
LVVXHGWKHIROORZLQJLQVWUXPHQWV Bank, based on similar terms.
( A ) I D R 1, 0 0 0 , 0 0 0 M I L L I O N
BONDS
On 27 March 2020, CIMB Niaga
LVVXHGΖ'5bPLOOLRQERQGV
The bonds are divided into 3 series.
1RPLQDOYDOXHRI\HDU6HULHV$
Bond, 3-year Series B Bond, and
5-year Series C Bond amounted to
IDR322,000 million, IDR287,000
million, and IDR391,000 million
UHVSHFWLYHO\ZLWKȴ[HGLQWHUHVWUDWHRI
5.80%, 7.00% and 7.25% per annum
respectively.
( B) S U B O R D I N AT E D L O A N S
2 0 2 0 / 2 0 3 0 U S D 10 M I L L I O N
On 23 March 2020, CIMB Bank PLC
LVVXHG86'PLOOLRQVXERUGLQDWHG
ORDQZKLFKTXDOLȴHGDV7LHUΖΖFDSLWDO
IRU&Ζ0%%DQN3/&7KHVXERUGLQDWHG
loan was issued as a single tranche at
Dȴ[HGUDWHRISHUDQQXPZLWK
DPDWXULW\RI\HDUVIURPWKHLVVXH
date with a call option starting at the
HQGRI\HDUDQGRQHDFKUHOHYDQW
FRXSRQSD\PHQWGDWHWKHUHDIWHU7KH
subordinated loan was subscribed by
CIMB Bank.
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(C ) S U B O R D I N AT E D D E B T S
2020/2025 RM2 .5 BILLION
On 12 November 2020, the Company
issued RM2.5 billion 10 years
non-callable 5 years Tier II
6XERUGLQDWHGGHEWVEHDULQJDȴ[HG
UDWHFRXSRQRISHUDQQXP
payable on a semi-annual basis. The
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used to subscribe to AT1 Capital
Securities issued by CIMB Bank,
based on similar terms.
( D) S U B O R D I N AT E D D E B T S
2020/2025 RM550 MILLION &
S U B O R D I N AT E D D E B T S
2020/2030 RM200 MILLION
On 3 December 2020, the Company
issued RM550 million perpetual
non-callable 5 years Additional Tier I
Capital Securities and RM200 million
perpetual non-callable 10 years
Additional Tier I Capital Securities
142 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
EHDULQJDȴ[HGUDWHFRXSRQRI
per annum and 4.00% per annum
respectively, payable on a semi-
DQQXDOEDVLV7KHSURFHHGVIURPWKH
issuances were used to subscribe to
AT1 Capital Securities issued by CIMB
(E) MEDIUM TERM NOTES
(“MTN” ) RM600 MILLION
On 3 April 2020, the Company issued
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mature on 3 April 2025. The MTN was
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and Islamic Medium Term Notes
Programmes, which has a combined
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(F) MTN RM350 MILLION
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issued RM350 million 3-year MTN
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Conventional and Islamic Medium
Term Notes Programmes, which has
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nominal value.
(G ) R M 2 0 0 M I L L I O N P E R P E T U A L
PREFERENCE SHARES
 2Q-DQXDU\&Ζ0%ΖVODPLF
issued RM200 million Basel-III
compliant Additional Tier I Perpetual
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subscribed by CIMB Bank. The
issuance was approved by CIMB
ΖVODPLF
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2019 respectively.
 7KHSURFHHGVUDLVHGIURPWKH
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working capital, general banking and
other corporate purposes, as
intended.
   6 + $ 5 ( 6  % 8 < % $ & .
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3. OP TIONS, WARR ANT S OR
CONVERTIBLE SECURITIES
There were no options, warrants or
convertible securities issued during the
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4 . AMERIC AN DEPOSITORY
RECEIPT (ADR) OR GLOBAL
D E P O S I T O R Y R E C E I P T (G D R )
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under review.
5. IMPOSITION OF SANCTION
A N D/ O R P E N A LT I E S
There were no public sanctions and/or
material penalties imposed on the
Company and its subsidiaries, Directors or
Management by any regulatory body
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  1 2 1  $ 8 ' Ζ 7  ) ( ( 6
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Auditors, Messrs. PricewaterhouseCoopers
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7. VA R I AT I O N I N R E S U LT S
There were no material variations in
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8. PROFIT GUAR ANTEE
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31 December 2020.
9 . R E VA L U AT I O N P O L I C Y O N
L ANDED PROPERTIES
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Statements which are set out in the Financial
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10 . M AT E R I A L CO N T R A C T S
There were no material contracts entered
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interest which were still subsisting as at
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or which were entered into since the end
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disclosed in Notes 53 to the Financial
Statements which are in the Financial
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 Statement on Risk Management
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BOARD RESPONSIBILIT Y
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management, and is constantly keeping
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and governance. To this end, the Board is
assisted by the Board Risk & Compliance
Committee and the Audit Committee,
which have been delegated with primary
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risk management and internal control
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assets, in a manner which enables the
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objectives amidst the dynamic and
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procedures on risks and controls. Its
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and strategies;
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vision and overall risk appetite;
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control system;
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directed by the Board; and
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Board on any changes to the risks and
the corrective actions taken.
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business and other support units. The
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provide independent appraisal on the
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governance processes implemented by
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opinion based on the 5 components
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Commission (COSO); namely control
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communication, and monitoring
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encompasses all business and support
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annual audit plan that is approved by
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annual audit plan is developed based
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control and risk management.
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systems are designed to manage risk
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objectives. The systems provide
reasonable assurance against the
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and processes is conducted to ensure its
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have provided assurance to the Board that
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control systems are operating adequately
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including compliance with applicable laws,
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are assessed to be high risk are subject
to an annual audit, while those that are
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subject to a cycle audit.
Notwithstanding the risk assessment,
the annual audit plan will include areas
that must be audited annually due to
regulatory requirements, and other
established criteria such as recent
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audit rating or recent action by
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investigations into suspected
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breach, and other incidences, as and
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persons responsible.
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 143

G O V E R NA N CE

Statement on Risk Management and Internal Control

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management system. In addition,
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external independent reviewer at least
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independent Directors. It is a Board-
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disclosure, regulatory compliance, risk
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review and ascertain that mitigation
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party transactions, and audit and
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electronic collection system subsidiary, The emphasis on a strong risk
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own internal audit divisions. While
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144 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 145
G O V E R NA N CE

Statement on Risk Management and Internal Control

• COMPLIANCE FR AME WORK *URXSDERXWDQ\FRQGXFWEXVLQHVV ȏ $ 1 7 Ζ  0 2 1 ( < / $ 8 1 ' ( 5 Ζ 1 * 

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146 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Statement on Risk Management and Internal Control

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 147

G O V E R NA N CE
Statement on Risk Management and Internal Control
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market products and services comply
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and resolutions by the relevant Shariah
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acts as the intermediary between the
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department had established the
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projected impact on expected
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actions with regard to improvements
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criminals seek to exploit vulnerabilities
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the technology services underlined
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assessed against the approved
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pillar in enabling the business to realise
its digital and growth strategies while
ensuring our digital assets, especially
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and internal threats. The programs
launched in 2019 continued
momentum across 2020 and were
recalibrated to align with revisions to
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continue to strengthen our Technology
& Cyber Risk Management practices
under the Enterprise-Wide Risk
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alignment with the Bank Negara Risk
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2020, with enhancements to the
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threat activities.
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brought on by the COVID-19 Pandemic
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approach to deliver services to our
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services continued or was accelerated.
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procedures via email messages/
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strengthen our talent development
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on succession readiness and general
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our talent and succession bench
strength through external validation,
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the right talent to the right role;
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encourage the 3 Critical Behaviours
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undertaken to improve customer
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graduates with an active interest in
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journey in May 2020 and are currently deception or omission with the
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change risk. The AC supports the PHPEHUVIURP:KROHVDOHDQG
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timely manner, while improving
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 153
G O V E R NA N CE
Statement on Risk Management and Internal Control
• S U S TA I N A B I L I T Y R I S K
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the appropriate governance, which is
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overarching principles and
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 155

G O V E R NA N CE
Risk Management
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risk appetite, risk posture and
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156 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Risk Management

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reputational damage, which CIMB Group Asset Liability Management Committee
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Malaysia (BNM) and Securities
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standardised approach in its risk
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allow. This structure increases regional
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internal controls and risk management
processes.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 157

G O V E R NA N CE

Risk Management

( B) R I S K C E N T R E S O F • MARKET RISK COE

THE ROLES OF GROUP CHIEF
E XC E L L E N C E
R I S K O F F I C E R (G R O U P C R O) The Market Risk CoE recommends the
AND GROUP RISK
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and stakeholders in monitoring and
controlling risk exposures within the
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the teams supporting respective
CRO in the various geographies.
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independent assessment,
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market risk. This is operationalised
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valuation, calculating Value-at-Risk and
Board-approved risk appetite statement. LL 7KH5LVN&R(VFRQVLVWRI$VVHW
market risk capital, as well as
Liability Management, Credit
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*URXS5LVNLVKHDGHGE\RXU*URXS&52 Risk, Market Risk, Non-Financial
appointed by our Board to lead the Risk Management (comprising
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MANAGEMENT COE
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(a) actively engages the respective
boards and senior management on
risk management issues and
initiatives; and
(b) maintains an oversight on risk
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Risk Management, whose main
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the enterprise risk and liaise with
regulators in the respective countries.
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Fraud Risk Management), Risk 1)50&R(HQVXUHVWKDWWKHȴUVW
Analytics, and Credit Risk OLQHRIGHIHQFHPDQDJHVWKHLU
ΖQIUDVWUXFWXUH operational risk by providing an
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• ASSET LIABILIT Y HQDEOHVWKHPWRLGHQWLI\DVVHVV
MANAGEMENT COE manage and report their operational
risks.
The Asset Liability Management (ALM)
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The team also provides constructive
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assessment, measurement, monitoring
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interest rate risk in the banking book. It
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conducts regular stress testing on the
operational risk expertise and
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reporting to senior management.
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NFRM CoE also extend its specialist risk
leveraging on the standardised
oversight to cover Business Continuity
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Management, Fraud, Technology and
implemented across the region. It
RI([FHOOHQFH&R( Outsourcing risks.
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PDLQWHQDQFHRIWKHHDUO\ZDUQLQJ
(A) CHIEF RISK OFFICER S The Shariah Risk Management (SRM)
system indicators and contingency
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and manage the enterprise risk
and liaise with regulators in the
respective country/entity under
his/her purview.
ii) The CRO is supported by the
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oversee the risk management
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e.g. branches and small
overseas banking subsidiaries.
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not present and/or not required,
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Management is appointed to be
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that country.
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• CR EDIT R ISK COE
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and Non-Retail credit risk and is
dedicated to the assessment,
measurement, management,
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procedures and standards to advance
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controlling and monitoring SNC risks
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recommends and implements
appropriate SRM policies and
guidelines; as well as develops and
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awareness.
• R I S K A N A LY T I C S C O E
The Risk Analytics (RA) CoE ensures the
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CoEs in their respective risk
management through Internal Capital
Adequacy Assessment Process (ICAAP),
RIRXU5HWDLOSRUWIROLR

158 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


Risk Appetite and Stress Testing. RA
CoE also validates credit risk models
DQGSHUIRUPVQRQUHWDLOFUHGLWULVN
analytics, asset quality reporting and
Single Counterparty Exposure Limit
(SCEL) regulatory reporting.
• CREDIT RISK
INFR A S TRUC TURE COE
 &RQVLVWHQWZLWKWKH7KUHH/LQHVRI
'HIHQFHPRGHORQULVNPDQDJHPHQW
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whereby the business unit, being the
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Risk Management
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risk appetite and risk posture. This,
amongst others, includes reviewing
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asset quality, watch-list reporting and
 7KH&UHGLW5LVNΖQIUDVWUXFWXUH&5Ζ&R(
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decision engine and rating systems,
which encompass credit risk models
and lending criteria. The CoE also
manages a Risk Data Mart that
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Asset (RWA) and SCEL reporting and
analytics.
KEY AREAS OF RISK
MANAGEMENT
1. CREDIT RISK
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securities or other instruments held,
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Credit risk is inherent in banking
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obligations to third parties, e.g.
guarantees. In derivatives, sales and
trading activities, credit risk arises
IURPWKHSRVVLELOLW\WKDWRXU*URXSȇV
counterparties will be unable or
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dates.
CREDIT RISK MANAGEMENT
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potential losses can be overwhelming.
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management is to keep credit risk
exposure to an acceptable level
vis-à-vis the capital, and to ensure the
returns commensurate with risks.
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business units as the second
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and the business units.
The risk-based delegated authority
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delegated authority, enhanced credit
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SROLFLHVDQGSURFHGXUHVWKDWGHȴQHV
WKHOLPLWVDQGW\SHVRIDXWKRULW\
GHVLJQDWHGWRWKHVSHFLȴFLQGLYLGXDOV
credit approving authority spanning
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business level, joint delegated
authorities between business units
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committees. The credit approving
committees are set up to enhance
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credit oversight as well as the credit
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business units. For corporate,
commercial and private banking
loans, credit applications are
independently evaluated by the
Credit Risk CoE team prior to
submission to the joint delegated
authority or the relevant committees
IRUDSSURYDOFHUWDLQEXVLQHVVXQLWV
RɝFHUVDUHGHOHJDWHGZLWKFUHGLW
approving authority to approve low
YDOXHGFUHGLWIDFLOLWLHV)RUUHWDLOORDQV
all credit applications are evaluated
and approved by Consumer Credit
Operations according to the
designated delegated authority with
higher limits submitted to joint
delegated authority or relevant
FRPPLWWHHVIRUDSSURYDO
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
policy reviews. It is also responsible
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mitigating controls.
Adherence to and compliance with
country sector limit, single customer
and country and global counterparty
limits, are approaches adopted to
address concentration risk to any
large sector or industry, or to a
particular counterparty group or
individual.
Adherence to the above established
credit limits is monitored daily by
*URXS5LVNZKLFKFRPELQHVDOO
H[SRVXUHVIRUHDFKFRXQWHUSDUW\RU
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items and potential exposures. For
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PRQLWRUHGPRQWKO\E\*URXS5LVN
 ΖWLVRXU*URXSSROLF\WKDWDOO
exposures must be rated or scored
based on the appropriate internal
rating models, where available.
Retail exposures are managed on a
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models are designed to assess the
credit worthiness and the likelihood
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non-retail exposures are designed to
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corporations or entities in paying
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quantitative and qualitative risk
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These rating models are developed
and implemented to standardise and
159
G O V E R NA N CE
Risk Management
enhance the credit underwriting and
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exposures.
Credit reviews and ratings are
conducted on the non-retail credit
exposures on an annual basis, and
PRUHIUHTXHQWO\ZKHQPDWHULDO
LQIRUPDWLRQRQWKHREOLJRURURWKHU
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The exposures are actively
monitored, reviewed on a regular
EDVLVDQGUHSRUWHGUHJXODUO\WR*5&&
and Board Risk and Compliance
Committee. Asset quality is closely
monitored so that deteriorating
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and discussed with the relevant
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remedial actions, including recovery
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C R E D I T R I S K M I T I G AT I O N
 7KHHPSOR\PHQWRIYDULRXVFUHGLWULVN
mitigation techniques such as
appropriate credit structuring, and
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credit risk management process.
Credit risk mitigants are taken, where
possible, and are considered
VHFRQGDU\UHFRXUVHWRWKHREOLJRUIRU
the credit risk underwritten.
 $OOH[WHQVLRQRIVHFXUHGFUHGLW
IDFLOLWLHVGHHPHGSUXGHQWPXVWEH
appropriately and adequately
collateralised. A credit proposal is
considered secured only when the
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approved collateral/securities within
their approved margins as set out in
the relevant credit policy guides.
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relevant credit approving authority is
empowered to approve any inclusion
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securities.
Recognised collaterals include both
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FROODWHUDOVFRQVLVWRIPDLQO\FDVK
deposits, quoted shares, unit trusts
160 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
and debt securities, while physical
collateral includes land, buildings and
vehicles.
 *XDUDQWRUVDFFHSWHGDUHLQOLQHZLWK
%10ȇV&DSLWDO$GHTXDF\)UDPHZRUN
(Basel II – Risk-Weighted Assets) and
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Islamic Banks (Risk-Weighted Assets)
guidelines. Eligible credit protection is
also used to mitigate credit losses in
the event that the obligor/
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In mitigating the counterparty credit
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enters into master agreements that
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counterparties, whenever possible. A
master agreement that governs all
transactions between two parties,
creates greater legal certainty that
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For each counterparty where credit
support annex has been executed in
addition to master netting agreement,
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the agreed threshold, in accordance
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relevant credit support annexes.
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market risk concentrations by
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others, there are guidelines in place
relating to maximum exposure by
products, counterparty, sectors and
country.
2. MARKET RISK
 0DUNHWULVNLVGHȴQHGDVDQ\
ȵXFWXDWLRQLQWKHYDOXHRIDWUDGLQJRU
LQYHVWPHQWH[SRVXUHDULVLQJIURP
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as interest rates, currency exchange
rates, credit spreads, equity prices,
commodities prices and their
associated volatility.
 2XU*URXSKHGJHVWKHH[SRVXUHVWR
market risk by employing various
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derivative instruments.
 2XU*URXSDGRSWVYDULRXVPHDVXUHV
DVSDUWRIULVNPDQDJHPHQWSURFHVV
2XU*5&&ZLWKWKHDVVLVWDQFHRI
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delegated committees ensure that
the risk exposures undertaken by our
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approved by our Board.
 0DUNHW5LVN&R(LVUHVSRQVLEOHIRU
measuring and controlling our
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measurement and market risk limit
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growth within a controlled and
transparent risk management
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the market exposures using the
applicable market price and pricing
model. The valuation process is
carried out with independent price
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methods and models used are
validated by risk management
quantitative analysts to assess their
applicability relative to market
conditions.
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Value-at-Risk (VaR) methodology as
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market risk. VaR is a statistical
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in market rates and prices over a
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Stress testing is conducted to capture
the potential market risk exposures
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scenarios, consideration is given to
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unexpected losses can occur and
areas where historical correlation
may no longer hold true.

In addition to the above, Market Risk
CoE undertakes the monitoring and
oversight process at Treasury &
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reviewing and analysing treasury
trading activities vis-à-vis changes in
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limits usage, assessing limits
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prices.
3. LIQUIDIT Y AND FUNDING
RISK
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as the current and potential risk to
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Asset Liability Management
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Management Committee meets at
least once a month to discuss the
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under business as usual and stress
scenarios, regulatory Liquidity
Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR), which are
measured and monitored regularly.
LCR is a quantitative regulatory
requirement which seeks to ensure
that banking institutions hold
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Risk Management
closely with Treasury and Markets in
its surveillance on market conditions.
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need-to or contingency basis. Each
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the BNM LCR and NSFR Policy
daily operations and incur
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both business-as-usual and stress Management Committee is a
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established liquidity risk limits and
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appetite. Management Action
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 161

G O V E R NA N CE
Risk Management
established risk appetite. Treasury &
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internal processes, people and
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monitors the overall control
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operational and reputational risks.
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banking operation is to cultivate an
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remediation plans.
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subjected to a rigorous risk review,
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risk takers or product owners.
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procedures are designed to prevent, RISK
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counterparties.
and risks. In 2020, Technology & to comply with Shariah requirements
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statement.
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Islamic Financial Services Act (IFSA);
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and risk appetite. Technology Risk advised by the BSC, which may
investigations to ensure all suspected
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measures, monitor and manages key channelling the SNC income or
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processes wherever relevant.
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have been engaged to validate and
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culture continues to be strengthened
across the group through mandatory
training programs, regular awareness
communications and targeted
phishing simulation drills.
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management model deployed within
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concerns/complaints received are
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expertise, scalability, knowledge and
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service provider could severely
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implemented several initiatives to
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Procedures. The policy outlines the
minimum control standards that is
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provider and it ensures proper
controls are in-place, including
periodic reviews and stringent
business continuity plans. The
overseas subsidiaries/branches are
required to adopt the principles and
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Outsourcing Policy and Procedures.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
to customers.
 2XU*URXSKDVD*URXS6KDULDK
Advisory & Board Shariah Committee
Secretariat Policy in place, which
governs the roles and responsibilities
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governance is carried out through
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Management (SRM) control measures
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within NFRM CoE by implementing a
systematic and consistent approach
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objectives, mission, guiding principles,
governance structure, as well as the
methodology and approach adopted
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are articulated in the Shariah Risk
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163
G O V E R NA N CE
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 $SDUWIURPPRQLWRULQJDQGDQDO\VLQJ
the SNC events or incidences
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proactively enhanced various policies/
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escalation to PSNC Committee and
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committees, SRM unit within NFRM
CoE also actively participates in the
Islamic products and services
development process to ensure that
all SNC risk are appropriately
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controlled. The new products and
services as well as internal policies
and procedures that are applicable to
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exposures. CIMB Investment applies
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Liquidity Coverage Ratio (LCR) and the
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requirements per BNM LCR Policy
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BNM NSFR Policy Document dated
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lowered the minimum NSFR
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the implementation date remained
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to comply with the minimum
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COVID-19 has a material adverse
impact on the global economy and
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proactively enhanced various policies,
processes, procedures and
governance to adapt to the current
market environment and to ensure
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procedure group-wide.
To manage the increased credit risk
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exercises were carried out including
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sectors, granular name-by-name
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management stress tests to better
understand the potential outcomes
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in line with the increased credit risk
environment.
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necessity to provide timely response
to our customers during the
pandemic. Hence, to accommodate
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non-retail clients, the credit approval
process was enhanced to ensure
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Moratorium and R&R cases. The
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COVID-19 credit policies to
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assets continue to be preserved.
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procedure group-wide.
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necessity to provide timely response
to our customers during the
pandemic. The bank has aligned with
local regulators across all markets in
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programs to impacted customers
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as well as rescheduling &
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LIQUIDIT Y RISK
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stress testing to assess whether the
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BUSINES S CONTINUIT Y
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CIMB implemented various measures
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Committee to navigate through the
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stakeholders while ensuring banking
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managed travel restrictions and
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be observed.
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COVID-19 has a material adverse
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impact on the global economy and
ensure our services are continuously
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available to customers.

164 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Audit Committee
Report

OVERVIEW
The Audit Committee of CIMB Group Holdings Berhad (Group AC) is committed to its role
of ensuring high corporate governance practices and providing oversight on the Group’s
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The AC is a Board delegated committee. In
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Number of
authority to investigate any matter within
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Puan Nadzirah Abd Rashid Chairman/ 12 12 respectively. Reviewed the audit plan
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(retired w.e.f. 28 June 2020) direct reports and evaluated the
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 165

G O V E R NA N CE
Audit Committee Report
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region together with the audit
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relevant programs.
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related matters, credit related
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independence and objectivity.
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risk especially on cybersecurity risk.
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with regulatory requirements and
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operations and the economical
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common themes and holistic
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plans and to escalate to higher
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goodwill impairment and intangible
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matters involving credit, treasury,
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systemic and data analytics activities
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work processes with more targeted
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arising.
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December 2020.
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Procedures Oversight Committee
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was not limited to, ascertaining the
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governance and controls to address
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k. Submitted periodic reports to the AC,

top Management and regulators.

168 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Board Shariah Committee
Report

Pursuant to the enterprise wide Shariah governance framework as provided by Bank

Negara Malaysia in its Guideline on Shariah Governance for Islamic Financial Institutions
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Directors (“the Board’’) is ultimately responsible and accountable for the oversight and
management of Shariah matters in the operation of the Group’s Islamic banking and
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Board relies on the advice of the Board Shariah Committee of CIMB Group Holdings
Berhad that it established under its core Islamic operating entity, CIMB Islamic Bank
Berhad (“CIMB Islamic”).

7KHPDLQUHVSRQVLELOLW\RIWKH%RDUG The Board Shariah Committee shall at all Z A K AT O B L I G AT I O N S

Shariah Committee is to assist the Board in
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Shariah Committee operates on the
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legislations.
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shall be made based on the decisions,
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Committee.
times assist the Board to ensure that the
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business does not have elements/activities ]DNDWE\DGRSWLQJWKH$GMXVWHG*URZWK
which are not permissible under Shariah. Method to state zakat authorities in line
with the methodology approved by Board
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CIMB Islamic Bank Berhad and it is the
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management subsidiaries, the obligation
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In having due regard to the decisions and
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Shariah matters, the Board shall give
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RIWKH%RDUG6KDULDK&RPPLWWHHWKDWWKH legislation, regulation, law or market
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decisions made by the Board Shariah operations has been done in a manner ]DNDWH[SHQVHVLIDQ\LQWKH)LQDQFLDO
Committee. that does not contradict with Shariah save 6WDWHPHQWVRIWKH*URXSLVUHȵHFWLYHRI
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6KDULDK&RPPLWWHH$OOGHFLVLRQVRIWKH the Board Shariah Committee in a
Board and the Board Shariah Committee separate Board Shariah Committee Report
on Shariah matters shall at all times be made herein.
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take into consideration the relevant
authority on Shariah matters in the
relevant jurisdiction it is doing business.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 169

G O V E R NA N CE
Board Shariah Committee Report
BOARD SHARIAH COMMIT TEE ’ S
REPORT
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Board Shariah Committee as established
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activities. Although the Board is ultimately
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actions, including the preparation and
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are in place to ensure that any new Islamic
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non-compliance; and, that the day to day
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responsible and accountable to the Board
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operations and advise the Board
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been decided and opined by us and with
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our decision and deliberations, providing
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 Board Shariah Committee Report

material Shariah non-compliances except :HWKHPHPEHUVRIWKH%RDUG6KDULDK

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Dr. Shafaai bin Musa
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Chairman
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4. The zakat calculation is in compliance
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 171

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 173

S US T A I N A BIL IT Y S T ATE ME NT

Sustainability Principles
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 177

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 Sustainability Principles and Strategy

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Related UN SDGs

Success Measures 2019 Baseline 2020 Performance 2024 Goals and Commitments

GHG emissions intensity 5.4 tonnes CO2e per RM million of 4.9 tonnes CO2e per RM million of 10% reduction from 2019 baseline
(Scope 1 and 2) revenue revenue

Female Representation on Key 25% Female Representative on 22% Female Representative on 30% Female Representative on
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Management Management gender pay gap
- 1 (Male) : 0.89 (Female) for Senior - 1 (Male) : 0.92 (Female) for Senior
Management Management

Suppliers engaged on Not measured 266 Suppliers engaged on To measure and report progress
Sustainability issues Sustainability issues annually

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 179

S U S T A I N A BIL IT Y S T ATE ME NT
Sustainability Principles and Strategy
S U S TA I N A B L E B U S I N E S S
Related UN SDGs
Success Measures
Relative Net Promoter Score
compared to peers
CIMB Financing Clients with
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Plans
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Success Measures
CSR Contribution
Average Volunteer Hours Per
Employee
180 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
Material Topics
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• Financial Literacy, Inclusion and
Well-being
2019 Baseline 2020 Performance 2024 Goals and Commitments
Top 48% Within 72% Top quartile (25%)
11 clients with new Action Plans 18 clients with new Action Plans To measure and report progress
in 2019 in 2020 annually
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due in 2020 onwards with action plans due in 2020 annually
successfully completed them
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renewable energy
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RM1.20 billion from
CIMB Malaysia
Material Topics
• Talent Attraction, Growth and • Financial Literacy, Inclusion and
Retention Well-being
• Corporate Citizenship & Volunteerism • Sustainability Education and
• Corporate Culture Participation
2019 Baseline 2020 Performance 2024 Goals and Commitments
RM45.8 million RM29.3 million ;HYNL[[VILÄUHSPZLKHUK
announced
0.19 hours per employee 0.12 hours per employee Two hours per employee
 Sustainability Principles and Strategy

Material Topics
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Related UN SDGs

Success Measures 2019 Baseline 2020 Performance 2024 Goals and Commitments

Material issues supported by policy 9 out of 14 (64%) material 11 out of 13 (85%) material All material issues supported by
commitments issues were supported by policy issues were supported by policy policy commitments
commitments commitments

Improvement in Governance score Score is 58 (based on 2018 Score is 63, a 9% improvement 30% improvement from 2019
on DJSI1 performance) (based on 2019 performance) baseline

Female Representation on the 11% 30% At least 30%

Board

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Related UN SDGs

Success Measures 2019 Baseline 2020 Performance 2024 Goals and Commitments

Employees completed None, applicable from 2021 None, applicable from 2021 95% of employees trained in
Sustainability E-Learning (%) onwards onwards Sustainability

Employees Trained/Briefed on 2,268 1,223 To measure and report progress

Sustainability annually

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 181

S U S T A I N A BIL IT Y S T ATE ME NT

Sustainability Principles and Strategy

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182 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Sustainability Principles and Strategy

UNEP FI PRINCIPLES FOR RESPONSIBLE BANKING

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PRINCIPLE 1: PRINCIPLE 2: PRINCIPLE 3:

ALIGNMENT
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be consistent with and contribute to
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regional frameworks.
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clients and our customers to
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future generations.

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society’s goals.
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 183

SUS T A I NA BIL IT Y S T ATE ME NT

Sustainable Action

Sustainable action demonstrated at CIMB speaks of our commitment to creating positive

impacts through our day-to-day business. Our key focus is on promoting sustainable
practices in our operations and processes group-wide. Over the last one year, we have
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addressing sustainability challenges facing our organisation, and our stakeholders.
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How do we reduce our direct

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Delivering Sustainable Financial Returns Purpose-driven Organisation

184 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

S U S TA I N A B L E A C T I O N : P E R F O R M A N C E H I G H L I G H T S 2 0 2 0

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 185

S U S T A I N A BIL IT Y S T ATE ME NT

Sustainable Business

Aligning business priorities with stakeholders’ expectations is an essential aspect of

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the planet, as well as economic opportunities, uplifting of living standards, and overall
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sustainable projects, while minimising our risk of negative impacts through robust risk
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H O W W E M A P S U S TA I N A B L E B U S I N E S S

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186 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Sustainable Business

S U S TA I N A B L E B U S I N E S S : P E R F O R M A N C E H I G H L I G H T S 2 0 2 0

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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 187

S U S T A I N A BIL IT Y S T ATE ME NT

Corporate Social Responsibility

In aspiring to be a leading focused ASEAN Bank, CIMB is committed to its purpose of

“building a high-performing sustainable organisation to help advance customers and
society”. We focus on issues that are most important and meaningful to the communities
around us, and do our part to help ensure that no one is left behind, especially among
communities from the lowest 40% of income earners (B40), where the needs and
inequality are the greatest. We help create sustainable communities in markets where we
operate through supporting programmes that promote equality, inclusion, stewardship,
empowerment and entrepreneurship. We encourage and facilitate our employees and
stakeholders to volunteer and be agents of change.
H O W W E M A P C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y

M AT E R I A L KEY S U S TA I N A B L E
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How do we instil new skills that

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communities?

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188 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Governance and Risk

A robust governance framework supports the navigation of risks and creates a culture of
transparency and accountability, which leads to long-term value creation for stakeholders.
Our Sustainability performance is enabled by a robust governance framework that lays the
foundation for us to drive net positive economic, environmental and social impacts.
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HOW WE MAP GOVERNANCE AND RISK

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the sustainability agenda?
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CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 189

S U S T A I N A BIL IT Y S T ATE ME NT

Stakeholder Engagement
and Advocacy

Systematic engagement is fundamental to understanding stakeholders' needs, while

advocacy creates consensus and an ecosystem of support and change. It is critical to
analyse, understand and respond to the evolving expectations, needs, and issues of our
stakeholders. The primary objective for our engagement is to raise awareness and to
mobilise support for meaningful action towards sustainable development.
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systemic changes in sustainable
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sustainabilty agenda?
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190 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


REGIONAL DEBT DEALS
Axiata SPV5 (Labuan) Limited
USD1.0 billion Notes due 2050
Axiata SPV2 Berhad
USD500.0 million Sukuk Wakala due 2030
PT Bank Mandiri (Persero) Tbk
USD500.0 million Senior Notes due 2025
PT Tower Bersama Infrastructure Tbk
USD350.0 million Senior Unsecured Notes due 2025
IDR1,500.0 billion Senior Bonds via 3rd Shelf Registration
Programme Tranche 4 of IDR7,000.0 billion
IDR700.0 billion Senior Bonds via 4th Shelf Registration
Programme Tranche 1 of IDR7,000.0 billion
IDR750.0 billion Senior Bonds via 4th Shelf Registration
Programme Tranche 2 of IDR7,000.0 billion
PT Lippo Karawaci Tbk
USD420.0 million Senior Unsecured Notes due 2025
Tenaga Nasional Bhd
Islamic Medium Term Notes Programme of up to RM10.0
billion in nominal value and ICP Programme of up to RM2.0
billion in nominal value
Regional
Notable Deals
Malaysia Rail Link Sdn Bhd
Islamic Medium Term Notes Programme of RM9.75 billion in
nominal value, guaranteed by the Government of Malaysia
Gamuda Land (T12) Sdn Bhd
Islamic Medium Term Notes Programme and Islamic
Commercial Papers (“ICP”) Programme with a combined
aggregate limit of RM2.0 billion and a sub-limit of RM500.0
million for the ICP Programme, guaranteed by Gamuda
Berhad
Sarawak Energy Berhad
Issuance of RM1.9 billion in nominal value Islamic Medium
Term Notes pursuant to an Islamic Medium Term Notes
Programme of RM15.0 billion in nominal value
Top Glove Corporation Bhd
RM1.3 billion Perpetual Sukuk Wakalah
Sime Darby Property Berhad
Islamic medium term notes (“Sukuk Musharakah”) issuance of
RM800.0 million in nominal value, including an ASEAN
Sustainability SRI Sukuk Musharakah of RM150.0 million in
nominal value, pursuant to a Sukuk Musharakah programme
of up to RM4.5 billion in nominal value under the Shariah
principle of Musharakah
Swirl Assets Berhad
Issuance of medium term notes of RM623.9 million in
nominal value, backed by the receivables due from
Pengurusan Air Selangor Sdn. Bhd. (“Air Selangor”) pursuant
to a share purchase agreement signed between Syarikat
Pengeluar Air Selangor Holdings Berhad and Air Selangor
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 191
HIGHLIGHTS AND ACHIE VEMENTS

Regional Notable Deals

REGIONAL DEBT DEALS (CONTINUED)

Tropicana Corporation Berhad

PT Permodalan Nasional Madani (Persero)
RM589.0 million Senior Sukuk Wakalah
IDR250.0 billion Senior Bonds via 3rd Shelf Registration
Programme Tranche 3 of IDR6,000.0 billion
RM318.0 million Senior Sukuk Wakalah
IDR1,733.8 billion Senior Bonds via 3rd Shelf Registration
Programme Tranche 4 of IDR6,000.0 billion

AEON Credit Service (M) Berhad

RM500 million Senior Sukuk Wakalah and RM200 million
Subordinated Sukuk Wakalah PT Bank Tabungan Negara (Persero) Tbk
IDR1,500.0 billion Senior Bonds via 4th Shelf Registration
Programme Tranche 1 of IDR8,000.0 billion

Dialog Group Berhad

Islamic notes issuance programme of up to an aggregate
amount of RM3.0 billion in nominal value for the issuance of PT Federal International Finance
Senior Islamic Medium Term Notes and/or Subordinated IDR1,500.0 billion Bonds via 4th Shelf Registration
Perpetual Islamic Notes Programme Tranche 2 of IDR15,000.0 billion

PT Sinar Mas Agro Resources and Technology Tbk

PT Sarana Multigriya Finansial (Persero)
IDR775.0 billion Senior Bonds via 2nd Shelf Registration
IDR4,001.0 billion Senior Bonds via 5th Shelf Registration
Programme Tranche 1 of IDR3,000.0 billion
Programme Tranche 3 of IDR19,000.0 billion

IDR1,400.0 billion Senior Bonds via 2nd Shelf Registration

Programme Tranche 2 of IDR3,000.0 billion

PT Astra Sedaya Finance

IDR2,183.05 billion Corporate Bonds via 4th Shelf Registration
Programme Tranche 4 of IDR8,000.0 billion
PT Merdeka Copper Gold Tbk
IDR1,400.0 billion Senior Bonds via 1st Shelf Registration
IDR1,500.0 billion Corporate Bonds via 5th Shelf Registration
Programme Tranche 1 of IDR1,700.0 billion
Programme Tranche 1 of IDR10,000.0 billion

IDR300.0 billion Senior Bonds via 1st Shelf Registration

Programme Tranche 2 of IDR1,700.0 billion

PT Jasa Marga (Persero) Tbk

IDR2,000.0 billion Senior Bonds via 2nd Shelf Registration
PT Bank CIMB Niaga Tbk
Programme Tranche 1 of IDR4,500.0 billion
IDR1,000.0 billion Mudharabah Sukuk via 1st Shelf
Registration Programme Tranche 3 of IDR4,000.0 billion

192 CIMB Group Holdings Berhad Annual Report 2020

 Regional Notable Deals

REGIONAL DEBT DEALS (CONTINUED)

PT Polytama Propindo
PT Chandra Asri Petrochemical Tbk
Issue Size IDR150.4 billion Senior Bonds I and IDR156.5 billion
IDR600.0 billion Senior Bonds via 3rd Shelf Registration
Ijarah Sukuk I
Programme Tranche 2 of IDR5,000.0 billion

Lembaga Pembiayaan Ekspor Indonesia

IDR100.0 billion Mudharabah Sukuk via 2nd Shelf
PT Bank Pembangunan Daerah Jawa Barat Dan
Registration Programme Tranche 1 of IDR2,000.0
Banten Tbk
billion
IDR500.0 billion Subordinated Bonds via 2nd Shelf
Registration Programme Tranche 1 of IDR1,000.0 billion
Housing & Development Board
IDR500.0 billion Subordinated Bonds via 2nd Shelf SGD800.0 million Fixed Rate Notes due 2025
Registration Programme Tranche 2 of IDR1,000.0 billion

China Construction Bank Corporation Singapore

Branch
SGD500.0 million Senior Unsecured Fixed Rate Notes due
2023
PT Tunas Baru Lampung Tbk
IDR500.0 billion Senior Bonds via 1st Shelf Registration
Programme Tranche 2 of IDR1,500.0 billion

True Corporation Public Company Limited

THB23,441.1 million Senior Unsecured Debenture

PT Bank QNB Indonesia Tbk THB4,800.0 million Senior Unsecured Debenture

IDR448.0 billion Senior Bonds via 1st Shelf Registration
Programme Tranche 3 of IDR1,000.0 billion

True Move H Universal Communication Co., Ltd.

THB9,800.0 million Senior Unsecured Debenture
PT PP Properti Tbk
IDR416.5 billion Senior Bonds via 2nd Shelf Registration
Programme Tranche 1 of IDR2,400.0 billion

TPI Polene PCL.

THB7,000.0 million Senior Unsecured Debenture
PT Indomobil Finance Indonesia
THB4.4 billion Senior Unsecured Debenture
IDR336.0 billion Senior Bonds via 4th Shelf Registration
Programme Tranche 1 of IDR4,000.0 billion
THB4,200.0 million Senior Unsecured Debenture

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 193

HIGHLIGHTS AND ACHIE VEMENTS

Regional Notable Deals

REGIONAL DEBT DEALS (CONTINUED)

Muangthai Capital PCL. SC Asset Corporation PCL.

THB5,000.0 million Senior Unsecured Debenture THB1,200 million Senior Unsecured Debenture

THB4,000.0 million Senior Unsecured Debenture THB500 million Senior Unsecured Debenture

THB250 million Senior Unsecured Debenture

Siamgas & Petrochemicals PCL.

THB4.0 billion Senior Unsecured Debenture
Ananda Development PCL.
THB1,169.9 million Senior Unsecured Debenture

THB1,000 million Perpetual Debenture

Sansiri PCL.
THB4,000.0 million Senior Unsecured Debenture

THB3,000 million Perpetual Debenture

PTG Energy PCL.

THB1,000 million Senior Unsecured Debenture

Toyota Leasing (Thailand) Co., Ltd.

THB3,000 million Senior Secured Debenture

Origin Property PCL.

THB990.6 million Senior Unsecured Debenture

Sena Development PCL.

THB1.7 billion Senior Secured Bond

THB1,110.4 million Senior Unsecured Debenture

Lalin Property PCL.
THB525.0 million Senior Unsecured Debenture

Rojana Industrial Park PCL.

THB1,600 million Senior Unsecured Debenture
Krungthai Car Rent and Lease PCL.
THB100.0 million Senior Unsecured Debenture

Noble Development PCL.

THB1,250 million Senior Unsecured Debenture

THB482.5 million Senior Unsecured Debenture

194 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


REGIONAL EQUITY DEALS
Mr D.I.Y. Group (M) Berhad
Mr D.I.Y. Group (M) Berhad’s RM1.5 billion (USD363.2 million)
ΖQLWLDO3XEOLF2΍HULQJLQFRQMXQFWLRQZLWKWKHOLVWLQJRQWKH
Main Market of Bursa Malaysia Securities Berhad
Khazanah Nasional Berhad
Khazanah Nasional Berhad’s RM1.0 billion (USD231.2 million)
Tenaga Nasional Berhad Block Trade
Khazanah Nasional Berhad’s RM735.7 million (USD169.1
million) Telekom Malaysia Berhad Block Trade
Unisem (M) Berhad
Unisem (M) Berhad’s RM284.0 million (USD69.4 million)
Primary Placement
ΖFRQ2΍VKRUH%HUKDG
RM247.2 million share consolidation and Rights Issue with
new free detachable Warrants on the Main Market of Bursa
Malaysia Securities Berhad
MY E.G. Services Berhad
MY E.G. Services Berhad’s RM216.0 million (USD53.1 million)
Primary Placement
REGIONAL ADVISORY DEALS
CJ Century Logistics Holdings Berhad/
CJ Logistics Asia Pte Ltd
RM100.0 million acquisition of CJ Korea Express Malaysia
Sdn Bhd by CJ Century Logistics Holdings Berhad
Regional Notable Deals
Hibiscus Petroleum Berhad
Hibiscus Petroleum Berhad’s RM203.6 million (USD49.5
million) Islamic Convertible Redeemable Preference Shares
(CRPS) Placement
InNature Berhad
50PLOOLRQΖQLWLDO3XEOLF2΍HULQJRIRUGLQDU\VKDUHVRI
InNature Berhad in conjunction with the listing on the Main
Market of Bursa Malaysia Securities Berhad
Axiata Group Berhad
The listing of Robi Axiata Limited, a subsidiary of Axiata
Group Berhad on the Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited in Bangladesh
Elite Commercial REIT
Elite Commercial REIT’s GBP135.4 million (USD173.8 million)
IPO on Mainboard of Singapore Stock Exchange
Credit Bureau Asia Limited
Credit Bureau Asia’s SGD53.9 million (USD40.5 million) Initial
3XEOLF2΍HULQJRQ0DLQERDUGRI6LQJDSRUH([FKDQJH
Telenor South East Asia Investment Pte Ltd
Divestment of Valyou Sdn Bhd, a wholly-owned subsidiary of
Telenor South East Asia Investment Pte Ltd to Merchantrade
Asia Sdn Bhd
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 195
HIGHLIGHTS AND ACHIE VEMENTS
Notable Achievements
THE A SSET TRIPLE A
S U S TA I N A B L E C A P I TA L
M A R K E T S COUNTRY &
R E G I O N A L AW A R D S 2 0 2 0
• Best FIG Bond – Indonesia
• Best Corporate Bond – Indonesia
• Best Syndicated Loan – Indonesia
• Best Primary Placement – Malaysia
• Best Block Trade – Malaysia
• Best Investment Grade Bond
– Malaysia
• Best Bank Capital Bond – Malaysia
IFN DE ALS OF THE YE AR 2020
• IFN Real Estate Deal of the Year 2020
I F N AW A R D S 2 0 2 0
• IFN Best Islamic Bank in Malaysia
2020
• IFN Best Islamic Investment Bank
2020
G L O B A L R E TA I L B A N K I N G
I N N O VAT I O N AW A R D S 2 0 2 0
• Outstanding Digital Innovation in SME
Banking
• Best Digital Sales Initiative
T H E A S S E T T R I P L E A P R I VAT E
C A P I TA L AW A R D S 2 0 2 0
• Best Bank for Investment Solutions
– Malaysia
• Best Bank for Investment Solutions,
Rates – Malaysia
• Best Bank for Investment Solutions,
Credit – Malaysia
• Best Bank for Investment Solutions,
FX – Malaysia
• Best Bank for Investment Solutions,
Commodities – Malaysia
ALPHA SOUTHE A S T A SIA
TR ANSAC TIONAL BANKING
AW A R D S 2 0 2 0
• Best Cash Management Solution in
Malaysia
• Best Trade Finance Solution in Malaysia
196 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
G R A D U AT E S ’ C H O I C E AW A R D S
• Top 10 Most Attractive Employers
• Top 3 Most Preferred in Banking
A L P H A S O U T H E A S T A S I A 14 T H
D E A L A N D S O L U T I O N AW A R D S
2020
• Best Bond House in Southeast Asia
• Best Ringgit Sukuk House of the Year
• Best Social Impact Islamic Finance
House in Asia
• Best Sri Sukuk
• Best Islamic & Conventional Finance
Deal of the Year
• Best Islamic Subordinate Perpetual
Bond
• Most Innovative Islamic Finance Deal
of the Year
• Best Corporate Sukuk
• Best Local Currency Sukuk
• Best Islamic Finance Project Finance
Deal of the Year
• Best Equity Deal of the Year, Malaysia
• Best Local Currency Bond Deal of the
Year, Thailand
• Best Bond Deal for Retail Investors in
Southeast Asia
A S I A M O N E Y B E S T B A N K AW A R D S
F O R M A L AY S I A 2 0 2 0
• Best Corporate & Investment Bank
THE A SSET TRIPLE A ISL AMIC
F I N A N C E AW A R D S 2 0 2 0
• Best Quasi-Sovereign Sukuk –
Malaysia
GLOBAL BUSINESS OUTLOOK
(G B O) AW A R D S 2 0 2 0
• Best SME Bank – Malaysia
• Best Digital Transformation Initiative for
SME’s – Banking – Malaysia
• Most Innovative Credit Card – CIMB
Platinum Business Card – Malaysia
T H E A S S E T T R I P L E A : P R I VAT E
C A P I TA L A W A R D S F O R P R I VAT E
B A N K S , W E A LT H &
INVES TMENT BANK ADVISER S,
SOLUTIONS AND INDE X
PROVIDER S 2020
• Best Bank for Investment Solutions
– Malaysia
• Best Bank for Investment Solutions
– Thailand
• Best Bank for Investment Solutions,
Equity – Thailand
• Best Bank for Investment Solutions,
Rates – Malaysia
• Best Bank for Investment Solutions,
Rates – Indonesia
• Best Bank for Investment Solutions,
Rates – Thailand
• Best Bank for Investment Solutions,
Credit – Malaysia
• Best Bank for Investment Solutions,
Credit – Thailand
• Best Bank for Investment Solutions,
FX – Malaysia
• Best Bank for Investment Solutions,
FX – Indonesia
• Best Bank for Investment Solutions,
Commodities – Malaysia
• Best Structured Investment and
Financing Solutions, Credit – Thailand
• Best Structured Investment and
Financing Solutions, Rates – Thailand
• Best Structured Investment and
Financing Solutions, Fund – Thailand
THE BANKER GLOBAL
T R A N S A C T I O N B A N K I N G AW A R D S
2020
• Cash Management
THE A SSET TRIPLE A
T R E A S U R Y, T R A D E , S S C A N D
R I S K M A N A G E M E N T AW A R D S
2020
• Best in Treasury and Working Capital
– SMEs – Malaysia
• Best Service Provider – Trade
Finance – Malaysia
 Notable Achievements

C O R P O R AT E T R E A S U R E R A W A R D S
THE A SSET TRIPLE A A SIA
2020
I N F R A S T R U C T U R E AW A R D S
2020
• Best Cash Management House in
Malaysia
• Oil and Gas Deal of the Year –
• Best Transaction Bank in Malaysia
Regional
• Petrochemical Deal of the Year
– Regional A S I A M O N E Y A S I A P R I VAT E
• Oil and Gas of the Year – Indonesia B A N K I N G AW A R D S 2 0 2 0
• Power Deal of the Year – Indonesia
• Petrochemical Deal of the Year • Best for Investment Research
– Malaysia – Malaysia
• Telecom Deal of the Year – Malaysia • Best Domestic Private Bank
• Water Deal of the Year – Malaysia • Best for Wealth Transfer/Succession
• Power Deal of the Year – Thailand Planning

2 0 19 L I F E @ W O R K AW A R D S
S AT I S FA C T I O N , L OYA LT Y &
E N G A G E M E N T AW A R D S 2 0 2 0
• Best Malaysian Organisation
• Outstanding Practice – Talent
• Best Bank in Mortgage Category – CIMB
Development Initiative
Niaga
• CEO Champion – Malaysian Organisation

INDONESIA GREEN AWARDS

G L O B A L C A P I TA L A S I A
2020
C A P I TA L M A R K E T AW A R D S
2 0 19
• Winner, Developing Biodiversity
Category – CIMB Niaga
• Best Local Currency Bond House
• Best Asian Investment Bank
T O P D I G I TA L C O M PA N Y A W A R D
2020
B R A N D I N G A S S O C I AT I O N O F
M A L AY S I A
• Best in Building Digital Transformation
– CIMB Niaga
• Most Outstanding Malaysian Brand 2019
– Banking

G L O B A L F I N A N C E P R I VAT E
B A N K AW A R D S 2 0 2 0

• Best Private Bank in Malaysia

ALPHA SE A BES T FINANCIAL

I N S T I T U T I O N AW A R D S 2 0 2 0

• Best Bond House in Malaysia

• Best Equity House in Malaysia
• Best Investment Bank in Malaysia
• Best Cash Management Bank in Malaysia
• Best Bank for Sustainable Financing in
Malaysia

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 197

HIGHLIGHTS AND ACHIE VEMENTS

Corporate Event
Highlights

13 March 2020,
Menara CIMB
Inaugural Visit by the
Minister of Finance,
Malaysia YB Senator
Tengku Datuk Seri Utama
Zafrul Tengku Abdul Aziz,
and Farewell Town Hall
for our former GCEO

4 May 2020, Hospital Kuala Lumpur 9 April 2020, PT Bank CIMB Niaga Tbk
– CIMB & Project Setia, PPE Handover
CIMB Niaga Annual General Meeting of
PPE Handover to Hospital Kuala Lumpur; a CIMB & Shareholders 2020
Setia collaboration. 3,000 PPE were delivered to over
10 government hospitals and clinics nationwide.

14-17 May 2020, CIMB Facebook Live

CIMB Bazar Siberturahim. Bringing the Raya
4, 11 & 18 May 2020, HKL, IPK, Hosp. Putrajaya, Hosp. Shopping Experience online for customers and local
Selayang, Hosp. Serdang businesses.
CIMB Foundation Bubur Lambuk Distribution to Frontliners

198 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Corporate Event Highlights

10 June 2020,
Menara CIMB
GCEO Dato’ Abdul
Rahman Ahmad’s
First Day in CIMB

30 June 2020, Menara CIMB

AGM 2020 (Live Virtual Event)

7 September
– 31 October
2020, Virtual
Platform
The Cooler
Earth
Sustainability
Summit

3 October –
15 November
2020,
4-10 September 2020, The Boulevard,
bSDUWLFLSDWLQJ
Publika Shopping Gallery
local Art
Galleries The Launch of CIMB X Poptron #ExtraNotOrdinary
Bazaar
CIMB Artober

22-25 October 2020, Impact Arena

Muang Thong Thani, Thailand
MONEY EXPO 2020 Bangkok

17 November 2020, Virtual Platform 13 December 2020, Pattana

CIMB Singapore x Warees Halal Limited Sports Resort, Chonburi
Strategic Partnership Signing Ceremony Thailand
CIMB Thai Triathlon, Forward
ASEAN Pride 2020

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 199

HIGHLIGHTS AND ACHIE VEMENTS

Media Highlights

The Edge 19 October

Sinar Harian 20 March

CIMB Group CEO
Tengku Dato' Sri IPO Prospectus Launch for Mr D.I.Y.
Zafrul Is
Malaysia's New
Minister Of
Finance
RinggitPlus 10 March
New Straits Times 10 October

The Star 19 March

Banks remain committed
to helping customers,
CIMB's Abdul Rahman says
The Edge Financial Daily 6 January

Fintech News Malaysia 21 September

The Star 30 May

The Star 23 November

COVID-19
pandemic shows
the need for
SMEs to embark
on digital
transformation
New Straits Times 14 May
The Edge 6 February

The Sun 21 August

The Edge 21 July

Borneo Post (Kuching) 18 September
Berita Harian 27 June
CIMB Philippines receives 10th
award as PH Best New Digital Bank
The Star 28 February The Sun 17 April Manila Times 8 June

200 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Media Highlights

&Ζ0%%DQNR΍HUVWRPRQWKV
moratorium extension to the
unemployed

The Edge Markets 7 November

New Straits Times 7 July

China Press
4 August Malaysia's CIMB commits to
The Star 29 August
WOHZLV\[JVHSÄUHUJPUNI`
Reuters 8 December

The Sun
23 December The Star 23 May Harian Metro 19 September

Digital payments
CIMB Islamic contributes RM1 mil for
Setiu Wetlands, Terengganu project
give users more
bang for their
ringgit
Value-added
Koran Sindo Sulsel 27 August features, hygiene New Straits Times 17 October
concerns and
business
&Ζ0%7KDLLVFRQȴGHQWRIVWURQJ$6($1HFRQRP\ initiatives are
accelerating the
shift to a
cashless society

The Edge 17 August

Borneo Post (Kuching) 9 April
CIMB Foundation gives alms to the elderly and orphans

Bangkok Today 5 August

The Business Times 2 April
CIMB’s The Cooler Earth Summit 2020

Tuoi Tre News 25 November

Sin Chew Daily 22 May

The Edge 14 September

Khmer Times 14 January Utusan Sarawak 1 September SoyaCincau 26 June

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 201

S TA K E H O L D E R I N F O R M AT I O N

Shareholders’ Statistics
as at 1 March 2021

Issued and Paid-up Share Capital : RM25,843,808,251 comprising 9,922,966,350 ordinary shares
Class of Shares : Ordinary shares
Voting Rights : One vote per ordinary share

A N A LY S I S O F S H A R E H O L D I N G S ( A S P E R T H E R E C O R D O F D E P O S I T O R S )

No. of % of No. of % of
Size of Shareholdings Shareholders Shareholders Shares ^ Issued Shares

1 – 99 3,248 3.32 111,167 0.00

100 – 1,000 34,988 35.72 18,258,666 0.18

1,001 – 10,000 45,631 46.59 179,032,331 1.80

10,001 – 100,000 12,257 12.51 333,108,801 3.36

(*)
100,001 – 496,148,316 1,825 1.86 4,628,795,046 46.65

496,148,317 and above(**) 3 0.00 4,763,660,339 48.01

Director holding 0 0.00 0 0.00

Total 97,952 100.00 9,922,966,350 100.00

Notes:
* Less than 5% of issued holdings.
** 5% and above of issued holdings.
^ Excludes 4,908 shares retained as treasury shares as at 1 March 2021.

A N A LY S I S O F E Q U I T Y S T R U C T U R E ( A S P E R T H E R E C O R D O F D E P O S I T O R S )

No. of Holders No. of Shares %

Malaysian Malaysian Malaysian
Non-
Category of Non- Non- Bumi- Bumi-
Shareholders Bumiputra Bumiputra Foreign Bumiputra Bumiputra Foreign putra putra Foreign
1) Individual 8,578 65,140 1,062 26,746,728 473,465,409 17,026,287 0.27 4.77 0.17
2) Body Corporate
A) Banks/Finance
Companies 77 5 0 2,005,719,886 789,932 0 20.21 0.01 0.00
B) Investments
Trusts/
Foundation/
Charities 0 7 0 0 599,620 0 0.00 0.01 0.00
C) Other Types of
Companies 74 662 31 2,681,991,649 83,944,152 39,456,036 27.03 0.84 0.40
3) Government
Agencies/Institutions 5 0 0 29,821,091 0 0 0.30 0.00 0.00
4) Nominees 14,347 6,430 1,534 276,098,710 2,295,995,761 1,991,311,089 2.78 23.14 20.07
5) Trustee 0 0 0 0 0 0 0.00 0.00 0.00
6) Others 0 0 0 0 0 0 0.00 0.00 0.00
23,081 72,244 2,627 5,020,378,064 2,854,794,874 2,047,793,412 50.59 28.77 20.64

Grand Total 97,952 9,922,966,350 100.00

202 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Shareholders’ Statistics
as at 1 March 2021

DIREC TOR S’ SHAREHOLDINGS (A S PER THE REGIS TER OF DIREC TOR S’ SHAREHOLDINGS)

No. of Shares Held

Direct Interest %*¹ Deemed Interest %*¹

Dato’ Lee Kok Kwan 1,205,072 0.01 88,648 –*²

Didi Syafruddin Yahya – – 45,262 –*²

Notes:
*¹ Excludes 4,908 shares retained as treasury shares as at 1 March 2021.
*² Less than 0.01%.

S U B S TA N T I A L S H A R E H O L D E R S ( A S P E R T H E R E G I S T E R O F S U B S TA N T I A L S H A R E H O L D I N G S )

No. of Shares Held

Name of Substantial Shareholders Direct %*¹ Indirect %*¹

Khazanah Nasional Berhad 2,700,806,354 27.22 – –

Employees Provident Fund 1,592,033,641*² 16.04*² – –

Kumpulan Wang Persaraan (Diperbadankan) 646,884,641 6.52 – –

Notes:
*¹ Excludes 4,908 shares retained as treasury shares as at 1 March 2021.
*² Includes shares held through nominees.

3 0 L ARGES T SHAREHOLDER S (A S PER REGIS TER OF MEMBER S AND RECORDS OF DEPOSITOR S)

% of
No. of Issued
Name of Shareholders Shares Held Capital*¹
1. Khazanah Nasional Berhad 2,700,806,354 27.22
2. Citigroup Nominees (Tempatan) Sdn Bhd 1,440,359,584 14.52
Employees Provident Fund Board
3. Kumpulan Wang Persaraan (Diperbadankan) 646,884,641 6.52
4. Amanahraya Trustees Berhad 483,995,262 4.88
Amanah Saham Bumiputera
5. Amanahraya Trustees Berhad 232,711,556 2.35
Amanah Saham Malaysia 2 – Wawasan
6. Amanahraya Trustees Berhad 174,825,338 1.76
Amanah Saham Malaysia
7. Citigroup Nominees (Tempatan) Sdn Bhd 114,737,761 1.16
Exempt An For AIA Bhd
8. Cartaban Nominees (Asing) Sdn Bhd 114,294,712 1.15
Exempt An For State Street Bank & Trust Company (West CLT OD67)
9. Citigroup Nominees (Tempatan) Sdn Bhd 111,573,445 1.12
Great Eastern Life Assurance (Malaysia) Berhad (PAR 1)
10. Cartaban Nominees (Tempatan) Sdn Bhd 107,666,674 1.09
PAMB For Prulink Equity Fund

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 203

S TA K E H O L D E R I N F O R M AT I O N

Shareholders’ Statistics
as at 1 March 2021

% of
No. of Issued
Name of Shareholders Shares Held Capital*¹
11. Amanahraya Trustees Berhad 107,489,197 1.08
Amanah Saham Bumiputera 2
12. HSBC Nominees (Asing) Sdn Bhd 91,301,608 0.92
JPMCB NA For Vanguard Emerging Markets Stock Index Fund
13. HSBC Nominees (Asing) Sdn Bhd 90,495,923 0.91
JPMCB NA For Vanguard Total International Stock Index Fund
14. Amanahraya Trustees Berhad 79,141,233 0.80
Amanah Saham Malaysia 3
15. Cartaban Nominees (Asing) Sdn Bhd 67,004,670 0.68
GIC Private Limited For Government Of Singapore (C)
16. Citigroup Nominees (Tempatan) Sdn Bhd 59,655,951 0.60
Employees Provident Fund Board (Nomura)
17. HSBC Nominees (Asing) Sdn Bhd 55,047,650 0.55
HSBC BK Plc For The Prudential Assurance Company Limited
18. Permodalan Nasional Berhad 54,280,113 0.55
19. Citigroup Nominees (Asing) Sdn Bhd 48,346,300 0.49
Exempt An For Citibank New York (Norges Bank 14)
20. Citigroup Nominees (Tempatan) Sdn Bhd 45,517,595 0.46
Great Eastern Life Assurance (Malaysia) Berhad (PAR 3)
21. DB (Malaysia) Nominee (Asing) Sdn Bhd 42,445,603 0.43
BNYM SA/NV For People's Bank Of China (SICL Asia EM)
22. Citigroup Nominees (Asing) Sdn Bhd 41,549,700 0.42
CBHK For Fubon Life Insurance Co., Ltd (CTL)
23. Citigroup Nominees (Asing) Sdn Bhd 38,985,839 0.39
CBNY For Norges Bank (FI 17)
24. Pertubuhan Keselamatan Sosial 38,820,944 0.39
25. Maybank Nominees (Tempatan) Sdn Bhd 36,738,247 0.37
Maybank Trustees Berhad For Public Regular Savings Fund (N14011940100)
26. Citigroup Nominees (Asing) Sdn Bhd 34,579,182 0.35
CBNY For Dimensional Emerging Markets Value Fund
27. Cartaban Nominees (Asing) Sdn Bhd 32,487,549 0.33
SSBT Fund SWV4 For California Public Employees Retirement System
28. HSBC Nominees (Asing) Sdn Bhd 32,438,235 0.33
-30&%1$)RU%ODFNURFNΖQVWLWXWLRQDO7UXVW&RPSDQ\1$ΖQYHVWPHQW)XQGV)RU(PSOR\HH%HQHȴW
Trusts
29. Lembaga Tabung Angkatan Tentera 28,492,100 0.29
30. HSBC Nominees (Asing) Sdn Bhd 26,573,400 0.27
JPMCB NA For Vanguard Fiduciary Trust Company Institutional
Total International Stock Market Index Trust II
Total 7,179,246,366 72.38
Note:
*¹ Excludes 4,908 shares retained as treasury shares as at 1 March 2021.

204 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Internal Policies,
Procedures and Guidelines

Policies are formulated to govern standard day-to-day operations and to manage the expected risks of CIMB Group. As such, the
Group’s policies are developed from the baseline of current regulatory requirements and industry best practices to govern the
business and operations of the Group.

The policies of our business units have been documented, endorsed by the Group Risk & Compliance Committee (GRCC) or its
sub-committee(s) and approved by our Board or Board Risk & Compliance Committee for implementation across our Group, where
relevant. Operational procedures are approved by Group Policy & Procedure Oversight Committee (GPOC) for implementation.
Approved policies and procedures are timely disseminated to stakeholders. Reviews and updates are performed regularly on
approved policies, procedures and guidelines. This is done with the intent to ensure continuous improvements in operational
HɝFLHQF\ZKLOHWDNLQJLQWRFRQVLGHUDWLRQWKHFKDQJLQJLQGXVWU\SURȴOHRQUHJXODWRU\UHTXLUHPHQWVULVNVDQGLQWHUQDOFRQWUROPHDVXUHV
for mitigation, and new products and services.

Listed below are some of the Group’s key policies and procedures:

No. Title Description

1. a) Group Administration & Property These documents relate to the administrative operations of the Group and covers
Management Malaysia Policy the operational policies governing procurement, property, maintenance services,
b) Group Administration & Property security services, logistics, telecommunications, insurance and occupational
Management Malaysia Procedure safety and health administration.

2. a) Accounting Policy 7KHVHGRFXPHQWVGHȴQHWKHDFFRXQWLQJFRQFHSWVDQGSROLFLHVWKDWDUHFRQVLVWHQW

b) Group Finance – Business Finance with Malaysia Financial Reporting Standards and Generally Accepted Accounting
Advisory & Financial Reporting Practices.
Standards Procedures
c) Accounting Procedure – Hedge
Accounting

3. a) Group Outsourcing Policy This document sets out how outsourcing arrangements in the Group is managed
b) Group Outsourcing Procedure across the lifecycle of the arrangement to ensure proper controls in place in
managing outsourcing risk.

4. a) Business Continuity Management 7KHVHGRFXPHQWVGHȴQHWKHPLQLPXP%XVLQHVV&RQWLQXLW\0DQDJHPHQW%&0

Policy requirements for developing, implementing and testing BCM within the CIMB
b) Business Continuity Management Group to ensure that BCM arrangements continue to meet the needs of CIMB
Procedure Group in the event of a crisis.

5. Group Corporate Communications This document sets out the framework for the dissemination of information by the
Group to its shareholders, media and other stakeholders. Information given by
the Group to the general public shall always be timely, accurate, relevant and
reliable so as to enable a properly informed view of how the Group is governed, its
ȴQDQFLDODQGRSHUDWLRQDOSHUIRUPDQFHVIXWXUHSURVSHFWVDQGNH\FRUSRUDWH
developments.

6. Group Crisis Communications &ULVHVD΍HFWRUJDQLVDWLRQVLQYDU\LQJGHJUHHVDQGIUHTXHQF\7KHFKDOOHQJHIRU

Guidelines WKHD΍HFWHGRUJDQLVDWLRQLVWRPDQDJHWKHVHFULVHVZHOOLQRUGHUWRJHWEDFNWRWKH
business of running the organisation as quickly as possible. CIMB Group has a
&ULVLV&RPPXQLFDWLRQV*XLGHWRDLGH΍HFWLYHUHVSRQVHDQGFRPPXQLFDWLRQZLWK
D΍HFWHGVWDNHKROGHUVLQDWLPHO\DQGFRQVLVWHQWPDQQHUΖWGHȴQHVFULVLVFULVLV
FODVVLȴFDWLRQHVFDODWLRQSURFHGXUHVDQGWKHHVWDEOLVKPHQWRIDFULVLV
communication management team and centre.

7. a) Group Data Management Policy These policies and procedures enable a structured approach to the management
Manual of data and dissemination of information throughout CIMB Group. The manual
b) Group Data Management Procedure spells out the data governance and management information system frameworks.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 205

S TA K E H O L D E R I N F O R M AT I O N

Internal Policies, Procedures and Guidelines

No. Title Description

8. a) Group Anti-Money Laundering/ &Ζ0%*URXSSODFHVLPSRUWDQFHRQDQGLVFRPPLWWHGWRHVWDEOLVKLQJDQH΍HFWLYH

Counter Financing of Terrorism internal control system for AML/CFT in compliance with all related laws,
Policy regulations, guidelines and industry best practices. The Group AML/CFT policies
b) Group Anti-Money Laundering/ encompasses all reporting institutions of CIMB Group, to ensure consistency in
Counter-Financing of Terrorism managing the AML/CFT compliance. The manual governs the appointment of
Procedure DQWLPRQH\ODXQGHULQJFRPSOLDQFHRɝFHUVWKHPRQLWRULQJDQGUHSRUWLQJRI
suspicious transactions, sanction management, record retention, employee
training, risk and status reporting to Board and Senior Management and an
independent audit of the internal AML/CFT measures.

9. Recruitment Policy This document sets out the minimum requirements to ensure that a standard and
professional approach is adopted to assist the Group in talent acquisition through
proper sourcing, selection and appointment, from the date the position becomes
DYDLODEOHRUYDFDQWWRWKHGDWHWKHSRVLWLRQLVȴOOHG

10. Risk Management of Travel Policy 7KLVGRFXPHQWDGGUHVVHVȵLJKWWUDYHOIRUVWD΍LQRUGHUWRPLQLPLVHWKHSRWHQWLDO

risks to CIMB Group in terms of continuity of leadership and operations. The
SROLFLHVFRYHUVHQLRUPDQDJHPHQWVWD΍DWGHSDUWPHQWOHYHOVDQGVWD΍LQJHQHUDO

11. Policy & Procedure on Fit and Proper
Criteria For Key Responsible Persons
This document sets out the procedures on Fit and Proper assessment for key
responsible persons who are accountable or responsible for the management and
oversight of the entities in the Group regulated by Financial Services Act 2013,
Islamic Financial Services Act 2013 and Insurance Act 1996. These comprise
'LUHFWRUVPHPEHUVRIWKH6KDULDK&RPPLWWHH&KLHI([HFXWLYH2ɝFHUV([HFXWLYH
Directors, any person performing a senior management function who has the
SULPDU\RUVLJQLȴFDQWUHVSRQVLELOLW\IRUWKHPDQDJHPHQWDQGSHUIRUPDQFHRI
VLJQLȴFDQWEXVLQHVVDFWLYLWLHVDQGDQ\SHUVRQZKRKDVSULPDU\RUVLJQLȴFDQW
responsibility of key control functions.

12. 6WD΍5HMXYHQDWLRQ3URJUDPPH 7KLVGRFXPHQWVHWVRXWWKHUXOHVDQGJXLGHOLQHVWRDOORZVWD΍WRWDNHDEUHDNIURP

work without any loss in service or disadvantage in career progression.

13. +53ROLF\RQ6WD΍9ROXQWHHULVP 7KLVGRFXPHQWVHWVRXWWKHUXOHVDQGJXLGHOLQHVWRHQFRXUDJHVWD΍WRYROXQWHHU

for CSR activities funded by CIMB Foundation. The policies provide recognition of
WLPHVSHQWE\VWD΍RQ&65DFWLYLWLHV7KLVLVSDUWRI&Ζ0%*URXSȇVH΍RUWWRHQKDQFH
FRPPXQLW\SURMHFWVE\FRQWULEXWLQJH[SHUWLVHHQHUJ\HQWKXVLDVPDQGH΍RUWVRI
VWD΍

14. 6WD΍:HOIDUH)XQG 7KH6WD΍:HOIDUH)XQGLVHVWDEOLVKHGWRSURYLGHȴQDQFLDODVVLVWDQFHWRRXUVWD΍

and their family members to cope with high medical expenses, as a result of being
involved in an accident or due to serious illness. The fund is also used to assist in
ORVVGDPDJHRISURSHUW\GXHWRQDWXUDOGLVDVWHUVHJȴUHȵRRG

15. Sexual Harassment Policy & Guidelines These documents set out the policies and guidelines to maintain a working
environment which is free of sexual coercion and annoyance. CIMB Group is
committed to ensure that all employees are protected from harassment of any
kind and in particular from sexual harassment. The policy covers all CIMB Group
employees including contract and temporary employees.

16. Whistle Blowing Policy This document is in place to ensure CIMB Group has a disciplined and professional
workforce. Under this policy, employees are required to promptly report incident
of wrongdoings, malpractices or irregularities at their workplace to the
0DQDJHPHQWIRULPPHGLDWHUHFWLȴFDWLRQDQGDFWLRQDQGWKH0DQDJHPHQWLV
FRPPLWWHGWRHQVXUHVWULFWFRQȴGHQWLDOLW\DQGZLOOQRWRQO\SURWHFWWKHLGHQWLW\RI
the complainants and will also protect the complainant from any harassment and
victimisation at work due to the disclosure.

206 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Internal Policies, Procedures and Guidelines

No. Title Description

17. Anti Bribery and Corruption Policy This document sets out policy matters relating to the prevention of bribery and
corruption, and sets out the responsibilities of Group employees and associated
persons working for and on behalf of the Group, in observing and upholding the
Group’s position on anti-bribery and corruption.

18. Global Employee Mobility Policy 7KLVGRFXPHQWVHWVRXWWKHWHUPVEHQHȴWVDQGJXLGHOLQHVIRU&Ζ0%HPSOR\HHV

GHSOR\HGRQUHJLRQDOVHFRQGPHQWV7KLVLVSDUWRI&Ζ0%*URXSȇVH΍RUWWR
encourage movement of talent across borders for business and/or talent
development purposes.

19. D *URXS&RQȵLFW0DQDJHPHQW  These documents consolidated the Group Chinese Walls Policy and Procedures
Chinese Wall Policy DQGWKH*URXS&RQȵLFW0DQDJHPHQW3ROLF\DQG3URFHGXUHV
E *URXS&RQȵLFW0DQDJHPHQW 
Chinese Wall Procedure
20. a) Shariah Advisory and Board Shariah
Committee Secretariat Policy
b) Shariah Advisory and Board Shariah
Committee Secretariat Procedure
The revised policy is to prescribe standards, outline the requirements and provide
guidance to ensure processes and controls are in place in order to identify and
PDQDJHDQ\FRQȵLFWRUZKHQSRWHQWLDOFRQȵLFWRILQWHUHVWVLWXDWLRQDULVHV
The Personal Account Dealing (PAD) sections that were previously provided by the
*URXS&RQȵLFW0DQDJHPHQW3ROLF\DQG3URFHGXUHVUHPDLQYDOLGXQWLOWKHQHZ
standalone PAD Policy and Procedures is approved.
7KHVHGRFXPHQWVGHȴQHDQGH[SODLQWKHRYHUDOOIUDPHZRUNDSSOLFDEOHWRWKH
Islamic businesses of CIMB Group so that they can be conducted in the most
H΍HFWLYHPDQQHUDQGLQOLQHZLWKWKH6KDULDKDQGWKHUHJXODWLRQVRI%DQN1HJDUD
Malaysia (BNM), Securities Commission (SC), the rulings of both Shariah Advisory
Councils of BNM and SC (SAC) and the rulings of Group Shariah Committee.
Wherever appropriate, reference will also be made to the Shariah rulings issued
E\WKH6KDULDKDXWKRULWLHVLQRWKHUMXULVGLFWLRQVVXFKDV'HZDQ6KDULDK1DVLRQDO
21. a) Group T&M – General Policy
b) Group T&M – General Procedure
22. a) Group Fraud Risk Policy
b) Group Fraud Risk Governance and
Procedure
23. a) IT Infrastructure and Service Policy
b) Disaster Recover Policy
c) IT General Control Policy
d) Information Security Policy
(E-Banking, Digital & Internet
Application Policy + Cyber Security
Policy + Information Security Policy)
e) Group System Development Policy
f) End User Computing Policy
(Desktop & Mobility)
g) Bring Your Own Device (BYOD)
Policy
h) IT Service Management Policy
0DMHOLV8ODPDΖQGRQHVLD'6108ΖWKH6KDULDK&RPPLWWHHDW$XWKRULWL0RQHWDUL
%UXQHL'DUXVVDODPHWFEDVHGRQWKHMXULVGLFWLRQDODQGORFDOLW\UHTXLUHPHQWV
applicable to regional Islamic businesses of CIMB Group.
7KHVHGRFXPHQWVGHȴQHWKHSROLFLHVDQGSURFHGXUHVRQDFWLYLWLHVFDUULHGRXWE\
Treasury & Markets department in relation to the Group’s markets, sales and
trading businesses in interest rates, credit, foreign exchange, commodities,
HTXLWLHVDQGWKHLUGHULYDWLYHVGHEWFDSLWDOPDUNHWVȴ[HGLQFRPHLQYHVWPHQWVDQG
treasury and funding operations for the Group.
These documents outline the commitment of CIMB Group to uphold zero-
tolerance approach to fraudulent activities and aim to provide the policies to
develop controls that will aid in the prevention, detection and investigation of
fraud against CIMB Group, thereby establishing an integrated and robust Group
Fraud Risk Management framework in the organisation.
These documents govern all aspects of information technology within the Group
and provides Management with direction and support in accordance with relevant
laws, regulations and business requirements. It is designed to increase adherence
to regulatory and internal requirements and ensures consistency in the Group’s
standards of operations and practices whilst at the same time facilitating sharing
of information across the Group and improved controls across the Group when
managing information technology. These are global best practices and in
accordance with global standards such as COBIT, ITIL, CMMi, ISO etc. This
document has been standardised across the Region to facilitate a Regional
Operating Model.
L Ζ73URMHFW0DQDJHPHQW3ROLF\

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 207

S TA K E H O L D E R I N F O R M AT I O N

Internal Policies, Procedures and Guidelines

No. Title Description

24. a) Technology Risk Management Policy 7KHVHGRFXPHQWVSURYLGHDFRQVLVWHQWDQGXQLȴHGDSSURDFKIRUGHYHORSLQJ

b) Technology Risk Management managing and improving technology (including Cyber) risk management within the
Procedure Group’s business operations. It is a systematic approach to identify, analyse,
evaluate, treat, monitor and communicate technology risks associated with any
activity, function or process, thereby protecting the Group by minimising its losses.

25. a) Group Compliance Policies These documents are to establish a compliance programme framework to ensure
b) Group Compliance Procedures compliance with relevant laws, regulations, rules, related self-regulatory
organisation standards, and codes of conduct applicable to its regulated and
licenced activities that govern the overall working of the business and support
units within CIMB Group.

26. a) Group Competition Law Policy The Malaysian Competition Act came into force in 2012 and has changed the
b) Group Competition Law Procedure EXVLQHVVODQGVFDSHLQ0DOD\VLDDQGD΍HFWHGWKHZD\DOO0DOD\VLDQEXVLQHVVHV
operate. The Competition Law Manual provides an overview of the Competition
Act and guides all business units within the Malaysian banking entities of CIMB
Group to familiarise and understand the competition laws of Malaysia. It is a
general guide on anti-competitive conduct, anti-competitive agreements and
compliance reporting of any violations or breach of the Malaysian Competition Act.

27. Group Liquidity Risk Management Policy This is the primary reference document on matters relating to the key principles
for the management of liquidity risk across the banking entities within CIMB
Group. The policy sets out key approaches and critical areas for an integrated
liquidity risk management process including liquidity risk management strategies,
Board and management oversight, roles and responsibilities of various divisions/
departments, measurement methodologies, controls, monitoring and reporting
SURFHGXUHVWRHQVXUHWKDWWKH*URXSKDVVXɝFLHQWOLTXLGLW\WRPHHWLWVREOLJDWLRQV
as they fall due.

Group’s contingency funding plan is in place to alert and to enable the

PDQDJHPHQWWRDFWH΍HFWLYHO\DQGHɝFLHQWO\GXULQJDOLTXLGLW\FULVLVDQGXQGHU
adverse market conditions.

28. Group Reputation Risk Policy The policy sets out how reputation risk should be managed robustly and
proactively by identifying the sources of reputation risk, and to monitor and
PDQDJHWKHVHZLWKLQWKHGHȴQHGULVNDSSHWLWH

29. Group Credit Risk Policy (Non-Retail) 7KHVHGRFXPHQWVRXWOLQHWKHEURDGFUHGLWȴQDQFLQJSULQFLSOHVWKDWLVDSSOLFDEOH

(with Islamic addendum and Private to CIMB Group’s conventional and Islamic banking businesses, with the purpose of
Banking addendum) HVWDEOLVKLQJGLVFLSOLQHIRURUGHUO\H[WHQVLRQRIFUHGLWȴQDQFLQJDFWLYLWLHV

30. a) CIMB Group Personal Data These documents outline the requirements of the Personal Data Protection Act
Protection Policy 2010 (PDPA) and is intended to assist CIMB Group in meeting its statutory
b) CIMB Group Personal Data responsibilities as detailed in the PDPA. It serves as a general guide to the PDPA
Protection Procedure DQG&Ζ0%*URXSȇVUHODWHGSURFHVVHVDQGREOLJDWLRQVWRHQVXUHWKDWDOOVWD΍ZLWKLQ
the relevant entities/divisions of the Group in Malaysia is familiar with, understand
and comply with the personal data protection laws of Malaysia.

31. a) Group Shariah Review Policy 7KHVHGRFXPHQWVGHȴQHDQGH[SODLQWKHRYHUDOO6KDULDKFRPSOLDQFHUHYLHZ

b) Group Shariah Review Procedure IUDPHZRUNDSSOLFDEOHWRWKHΖVODPLFEDQNLQJDQGȴQDQFHEXVLQHVVHVRI&Ζ0%
Group to ensure Shariah compliance and handle Shariah non-compliance events.

32. CIMB Group Enterprise-Wide Risk
Management (EWRM) Framework
This describes the policies, guidelines & methodologies, and provides guidance to
the risk management teams towards achieving a common platform and consistent
DSSURDFKWRULVNPDQDJHPHQWDFURVVWKH*URXSSURYLGHVDQRYHUYLHZRIHDFK
LGHQWLȴHGULVNWRSURPRWHFOHDUDQGDFFRXQWDEOHULVNPDQDJHPHQWSURFHVVHVDQG
facilitates readiness and compliance to Bank Negara Malaysia and other
regulatory requirements.

208 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


No. Title
33. Group Market Risk Policy
34. Group Operational Risk Management
Policy
35. Group Interest Rate Risk/Rate of Return
in the Banking Book Policy
Internal Policies, Procedures and Guidelines
Description
This policy prescribes a consistent Group-wide framework to manage market risk
across all CIMB entities. It serves as a primary reference document for the Group
in establishing a sound operating environment for market risk activities that is
consistent with the governance and control standards of the Group Risk Appetite
Statement.
This policy sets out the Group's approach in managing operational risk. The policy
VHWVRXWWKHWRROVXVHGE\WKHȴUVWOLQHRIGHIHQFHWRLGHQWLI\DVVHVVPDQDJHDQG
report their operational risks.
This is the primary reference document on the key principles for the management
of interest rate risk in the banking book across the banking entities within CIMB
Group. This policy sets out key approaches and critical areas for an integrated
management of the interest rate risk in the banking book including Board and
management oversight, roles and responsibilities of divisions/departments,
measurement methodologies, controls, monitoring and reporting procedures to
ensure that the interest rate risk arising from the Group operations is properly
LGHQWLȴHGPHDVXUHGPRQLWRUHGDQGPDQDJHGRYHUDUDQJHRISRWHQWLDOFKDQJLQJ
interest rate environments including stress conditions.

36. a) CIMB Group Shariah Risk
Management Policy
b) CIMB Group Shariah Risk
Management Procedures
37. Group Credit Risk Policy
38. Group New Product Approval Procedure
39. Group Retail Credit/Financing Policy
40. Group Internal Capital Adequacy
Assessment Process (ICAAP) Policy
41. a) Group Delegated Authority Policy
b) Group Delegated Authority
Procedure
D 7KLVGRFXPHQWDUWLFXODWHVWKHREMHFWLYHVPLVVLRQJXLGLQJSULQFLSOHV
governance structure as well as methodology and approach adopted by the
Group in managing Shariah Non-Compliance (SNC) risk.
b) This document provides the explanation/illustration that could facilitate the
Group in identifying, assessing, controlling and monitoring SNC risk inherent
in its Islamic products and day-to-day activities.
This Policy sets out the credit risk guiding principles for application across the
Group to ensure consistency in its credit risk management activities.
This Policy sets out a consistent framework to risk manage the launch of new and
YDULHGSURGXFWV1HZSURGXFWVZLOOEHVXEMHFWHGWRDUREXVWLQWHUQDODSSURYDO
SURFHVVWKDWUHTXLUHVREMHFWLYHUHYLHZDQGDSSURSULDWHVHQLRUPDQDJHPHQWVLJQ
R΍EHIRUHWKH\DUHR΍HUHGWRFXVWRPHUVRULQYHVWRUV
This Policy is an overarching group policy which governs the credit aspects of
5HWDLOOHQGLQJEXVLQHVVΖWDSSOLHVWRPDMRUUHWDLOOHQGLQJSURGXFWVVXFKDV
Property Financing, Vehicle Financing, Credit Cards and other revolving credit
IDFLOLWLHVVHFXUHGDQGXQVHFXUHGWHUPȴQDQFLQJIRU&Ζ0%UHWDLOEDQNLQJLQDOOWKH
countries where CIMB is present.
This Policy describes the policies aspects of ICAAP for all entities within CIMB
*URXSΖWHQVXUHVDGHTXDWHSROLFLHVDUHLQSODFHIRUHɝFLHQWDQGSURSHUFRQGXFW
of ICAAP across various divisions within the Group. The Policy also sets out the
NH\Ζ&$$3UHTXLUHPHQWVZKLFKLQFOXGHDVVHVVLQJWKHULVNSURȴOHRIWKHEDQN
assessing capital adequacy, monitoring compliance with regulatory requirement
on capital adequacy, reporting to management and regulator on ICAAP and ICAAP
governance and independent review.
These documents set out the nature and extent of the authority formally
delegated from the CIMB Group Holdings Berhad’s Board of Directors. The
FRQWHQWVFRYHUERWKȴQDQFLDODSSURYDODQGGRFXPHQWH[HFXWLRQ7KLVSROLF\GRHV
not apply to delegated credit and human resource authorities which are covered
separately by the respective Divisions’ policies.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 209
S TA K E H O L D E R I N F O R M AT I O N

Internal Policies, Procedures and Guidelines

No. Title Description

42. Group Corporate Assurance Policy This document sets out the policies governing GCAD in order to deliver an
HɝFLHQWDQGH΍HFWLYHLQWHUQDODXGLWVHUYLFHLQFOXGLQJLQYHVWLJDWLRQLQFRQJUXHQFH
with the goals of the CIMB Group of Companies.

43. a) Group Entity Governance Policy These documents are developed to put in place the minimum governance
b) Group Entity Governance Procedure requirements for entities across the Group in terms of:
ȏ 'LUHFWRUVȇDQG5HVSRQVLEOH2ɝFHUVȇUHTXLUHPHQWVUROHVDQGUHVSRQVLELOLWLHV
• Management accountability
• Committee structure and oversight
• Adherence to Group Policies and Procedures
• Inter-entity Service Level Agreements
• Adherence to the Group Financial Booking Governance
• Financial Delegation of Authority

7KH3ROLF\VHWVRXWKRZVXEVLGLDULHVMRLQWYHQWXUHHQWLWLHVDVVRFLDWHVDQGWKHOLNH
are governed by its parent and the apex entity, through (i) how the entities
communicate with each other and (ii) the implementation of controls that are
dependent on the entities’ categorisation.

44. a) Group Customer Experience These documents set out the standard framework and mechanism when dealing
Management – Complaints Handling with customers’ complaints regionally in accordance with regulatory and CIMB
Policy Manual Group standards. This is to ensure prompt and constructive responses are given
b) Group Customer Experience WR&XVWRPHUZKLFKLQWXUQZLOOEXLOGFXVWRPHUOR\DOW\DQGFRQȴGHQFHWRZDUGV
Management – Complaints Handling CIMB Group.
Procedure Manual

45. a) CIMB Group Customer Exit Handling These documents provide a common customer exit handling standards which are
Policy to be adhered to by all relevant business units and/or departments within CIMB
b) CIMB Group Customer Exit Handling *URXSHQWLWLHVLQRUGHUWRH΍HFWLYHO\VDIHJXDUGWKHUHSXWDWLRQRIWKHIUDQFKLVH
Procedure and to mitigate associated negative impacts.

46. a) Group Customer Experience
Management – Treating Customers
Fairly Policy Manual
b) Group Customer Experience
Management – Treating Customers
Fairly Procedure Manual
These documents are established in line with BNM’s Market Conduct and
Consumer Empowerment standards. It aims to inculcate the Treating Customers
Fairly principles into the corporate culture of CIMB Group.
It states the guidelines to be applied in managing and working towards fair
treatment of customers and sets out the principles to ensure CIMB Group of
employees comply with internal Treating Customers Fairly requirements.

47. a) Disclosure of Customer Information These documents describe the broad principles on disclosure of customer
to Law Enforcement Agency Policy documents or information to law enforcement agency(ies) with the purpose to
Manual facilitate the investigation or prosecution by law enforcement agency(ies). It is
b) Disclosure of Customer Information established to provide a clear guidance on the circumstances that a disclosure of
to Law Enforcement Agency customer documents or information is permitted and the method of such
Procedure Manual disclosure is to be released to the Law Enforcement Agency. This is to ensure
compliance with the guidelines issued by BNM on disclosure of customer
information.

48. The Group Sustainability Policy (GSP) This document outlines our overarching principles and approach to sustainability
and sustainability risk management.

49. The Group Sustainable Finance Policy 7KLVGRFXPHQWLGHQWLȴHVDVVHVVHVDQGPDQDJHVULVNVDULVLQJIURPȴQDQFLQJRI

(GSFP) non-individual clients, especially in sectors that are most vulnerable to
environmental and social risks, and those with activities that have high potential
adverse impacts on the environment and society. 25 economic activities in six
VHFWRUVKDYHEHHQLGHQWLȴHGWRKDYHKLJKHQYLURQPHQWDODQGVRFLDOULVNDQG
Sector Guides are in place for coal, palm oil, oil & gas, forestry, and infrastructure,
construction & real estate activities. A structured due diligence and escalation is
LQSODFHIRUFOLHQWVDQGWUDQVDFWLRQVLGHQWLȴHGWRKDYHKLJK6XVWDLQDELOLW\5LVN

210 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Top 10 Properties of
CIMB Group
Tenure/ Remaining Age of Net Book
Date of Lease Property Value* Year of Date of
Location Description/Existing Use Expiry (years) (years) (MYR) Acquisition Revaluation
MENARA CIMB VWRUH\RɝFHEXLOGLQJZLWK Freehold n/a 6 670,000,000 2015 Dec-19
1 Jalan Stesen Sentral 2 6 storey of basement car
Kuala Lumpur Sentral SDUN%XLOGLQJPDMRULW\
50470 Kuala Lumpur occupied by CIMB Group of
Malaysia companies with partial lower
zone leased out to 3rd party.
CIMBTHAI VWRUH\RɝFHEXLOGLQJZLWK Freehold n/a 21 270,369,866 1999 Sep-16
Langsuan Building 1 basement level. Premises
44 Langsuan Road, Lumpini occupied by CIMB Thai Bank
Patumwan, Bangkok 10330 +HDG2ɝFH%UDQFK&Ζ0%
7KDL%DQNȇVGLYLVLRQRɝFHV
and subsidiary company
RɝFHV
WISMA CIMB VWRUH\RɝFHEXLOGLQJ Freehold n/a 13 119,268,210 2018 Aug-17
No. 11, Jalan 4/83A together with 3 levels of
2΍-DODQ3DQWDL%DUX basement car park. Building
59200 Kuala Lumpur PDMRULW\RFFXSLHGE\&Ζ0%
%DQNZLWK*URXQGȵRRU
leased out to 3rd party.
Menara Sentraya VWRUH\RɝFHEXLOGLQJ Freehold n/a 4 115,429,371 2015 May-19
Lt. 28, 29, 30, 31, 32 CIMB Niaga owned 5 storey.
Jl. Iskandarsyah
No. 2, Melawai Blok M
Jakarta Selatan
Wisma CIMB Niaga VWRUH\RɝFHEXLOGLQJXVHG Leasehold 3 30 70,887,497 2001 May-19
Jl. Gatot Subroto DV&Ζ0%1LDJD+HDG2ɝFH expiring on
No. 2, Bandung DQGVRPHȵRRUVDUHUHQWHG b'HFHPEHU
to 3rd party. 2023
-O*DMDK0DGD VWRUH\RɝFHEXLOGLQJXVHG Leasehold 16 30 51,061,669 2006 May-19
Jakarta Pusat DV&Ζ0%1LDJD+HDG2ɝFH expiring on
and Branch. b-DQXDU\
2036
CIMB Niaga Lippo Cikarang VWRUH\RɝFHEXLOGLQJXVHG Leasehold 3 28 49,784,593 2012 May-19
Jl. MH Thamrin Lippo DV&Ζ0%1LDJD+HDG2ɝFH expiring on
Cikarang DQGVRPHȵRRUVDUHUHQWHG b0D\
to 3rd party.
Synergy Building VWRUH\RɝFHEXOGLQJ Leasehold 4 9 36,737,300 2014 May-19
Jl. Sutera Barat Kav 17 CIMB Niaga owned 7 Floors expiring on
Alam Sutera, Serpong (GF, UG, 1st, 2nd, 3rd, 5th, b$SULO
Tangerang, Banten 6th), used as CIMB Niaga
%UDQFKDQG+HDG2ɝFH
business support.
Puri Indah Financial Tower VWRUH\RɝFHEXLOGLQJ Freehold n/a – 34,071,506 2020 May-19
Lt. 21, 23, 25 & 26 CIMB Niaga owned 4 Floors
Jl. Puri Linglar Dalam (21st, 23rd, 25th & 26th),
Blok T8, Kembangan used as CIMB Niaga Head
Jakarta Barat RɝFH
CIMB Niaga Kebon Sirih CIMB Niaga Branch Leasehold 11 36 32,052,171 2003 May-19
Jl. Kebon Sirih 33 premises. expiring on
Jakarta Pusat b$XJXVW
2031

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 211

S TA K E H O L D E R I N F O R M AT I O N

Corporate Information
as at 1 March 2021

BOARD OF DIREC TOR S G R O U P C O M PA N Y S E C R E TA R Y

Datuk Mohd Nasir Ahmad Didi Syafruddin Yahya Datin Rossaya Mohd Nashir
Chairperson/Independent Director Independent Director LS 0007591/PC No. 202008000361

Dato’ Abdul Rahman Ahmad Shulamite N K Khoo

*URXS&KLHI([HFXWLYH2ɝFHU Independent Director
Executive Director (Appointed on 15 May 2020) AUDIT COMMIT TEE
(Appointed on 10 June 2020)
Serena Tan Mei Shwen Dato’ Mohamed Ross Mohd Din
Teoh Su Yin Non-Independent Director Chairman/Independent Director
Senior Independent Director (Appointed on 30 September 2020)
Datuk Mohd Nasir Ahmad
Robert Neil Coombe YB Senator Tengku Datuk Seri Member/Independent Director
Independent Director Utama Zafrul Tengku Abdul Aziz
*URXS&KLHI([HFXWLYH2ɝFHU Teoh Su Yin
Dato’ Mohamed Ross Mohd Din Executive Director Member/Senior Independent Director
Independent Director (Resigned on 9 March 2020)

Dato’ Lee Kok Kwan Ahmad Zulqarnain Che On

Non-Independent Director Non-Independent Director
(Resigned on 30 June 2020)
Afzal Abdul Rahim
Independent Director

BOARD RISK AND COMPLIANCE G R O U P N O M I N AT I O N A N D GROUP SHAR IAH COMMIT TEE

COMMIT TEE R E M U N E R AT I O N C O M M I T T E E
Dr. Shafaai Musa
Robert Neil Coombe Teoh Su Yin Chairperson/Independent Member
Chairman/Independent Director Chairperson/Senior Independent Director
Sheikh Professor Dr. Yousef Abdullah
Teoh Su Yin Datuk Mohd Nasir Ahmad Al Shubaily
Member/Senior Independent Director Member/Independent Director Independent Member

Datuk Mohd Nasir Ahmad
Member/Independent Director
Dato’ Mohamed Ross Mohd Din
Member/Independent Director
Dato’ Lee Kok Kwan
Member/Non-Independent Director
Didi Syafruddin Yahya
Member/Independent Director
(Appointed on 27 July 2020)
Serena Tan Mei Shwen
Member/Non-Independent Director
(Appointed on 30 September 2020)
Ahmad Zulqarnain Che On
Member/Non-Independent Director
(Resigned on 30 June 2020)
Dato’ Mohamed Ross Mohd Din Associate Professor Dr Aishath
Member/Independent Director Muneeza
Independent Member
Robert Neil Coombe
Member/Independent Director Ahmed Baqar Rehman
Independent Member
Didi Syafruddin Yahya
Member/Independent Director 'U$KPDG6XȴDQ&KH$EGXOODK
Independent Member
Shulamite N K Khoo
Member/Independent Director Associate Professor Dr Muhamed
(Appointed on 15 May 2020) Fairooz Abdul Khir
Independent Member
Serena Tan Mei Shwen (Appointed on 16 August 2020)
Member/Non-Independent Director
(Appointed on 30 September 2020) Sheikh Dr Nedham Yaqoobi
Independent Member
Ahmad Zulqarnain Che On (Retired on 13 June 2020)
Member/Non-Independent Director
(Resigned on 30 June 2020)

212 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Corporate Information

REGIS TERED OFFICE REGISTR AR AUDITOR S

Level 13, Menara CIMB Boardroom Share Registrars Sdn Bhd PricewaterhouseCoopers PLT
Jalan Stesen Sentral 2 (199601006647 (378993-D)) (LLP0014401-LCA & AF 1146)
Kuala Lumpur Sentral 11th Floor Menara Symphony Chartered Accountants
50470 Kuala Lumpur, Malaysia No. 5 Jalan Prof. Khoo Kay Kim Level 10, 1 Sentral, Jalan Rakyat
Seksyen 13 Kuala Lumpur Sentral
Tel: 603-2261 8888 46200 Petaling Jaya, Selangor PO Box 10192
Fax: 603-2261 0099 Malaysia 50706 Kuala Lumpur, Malaysia

Website: www.cimb.com Helpdesk: 603-7890 4700 Tel: 603-2173 1188

Investor Relations: ir@cimb.com Fax: 603-7890 4670 Fax: 603-2173 1298

Senior Independent Director: E-mail address:

cimbSID@cimb.com info.my@boardroomlimited.com

Social media: S T O C K E XC H A N G E L I S T I N G
www.facebook.com/CIMBMalaysia
Listed on Main Market of Bursa Malaysia
www.twitter.com/CIMB_Assists
Securities Berhad since 3 November 1987
www.instagram.com/cimbmalaysia/
www.linkedin.com/company/cimb
Stock Code: 1023

GROUP MANAGEMENT

Dato’ Abdul Rahman Ahmad (΍HQG\6KDKXO+DPLG

Country Head, Malaysia &KLHI([HFXWLYH2ɝFHU&Ζ0%'LJLWDO$VVHWV
*URXS&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU&Ζ0% *URXS&KLHI([HFXWLYH2ɝFHU7RXFKȇQ*R*URXS
&KLHI([HFXWLYH2ɝFHU
Executive Director, CIMB Bank Berhad $KPDG6KDKULPDQ0RKG6KDUL΍
&KLHI([HFXWLYH2ɝFHU*URXSΖVODPLF%DQNLQJ
Omar Siddiq &KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU
'HSXW\&KLHI([HFXWLYH2ɝFHU&Ζ0%%DQN%HUKDG CIMB Islamic Bank Berhad
&KLHI([HFXWLYH2ɝFHU*URXS:KROHVDOH%DQNLQJ
Khairul Rifaie
Tigor M. Siahaan *URXS&KLHI)LQDQFLDO2ɝFHU
Country Head, Indonesia
3UHVLGHQW'LUHFWRU &KLHI([HFXWLYH2ɝFHU Gurdip Singh Sidhu
PT Bank CIMB Niaga Tbk *URXS&KLHI3HRSOH2ɝFHU

Paul Wong Chee Kin David Richard Thomas

Country Head, Thailand *URXS&KLHI5LVN2ɝFHU
3UHVLGHQW &KLHI([HFXWLYH2ɝFHU
CIMB Thai Bank PCL Kwan Keen Yew
*URXS&KLHI/HJDO &RPSOLDQFH2ɝFHU
Victor Lee Meng Teck
Country Head, Singapore Amran Mohamad
&KLHI([HFXWLYH2ɝFHU&Ζ0%%DQN6LQJDSRUH Group Chief Internal Auditor
&KLHI([HFXWLYH2ɝFHU*URXS&RPPHUFLDO%DQNLQJ
Datin Rossaya Mohd Nashir
Samir Gupta Group Company Secretary
&KLHI([HFXWLYH2ɝFHU*URXS&RQVXPHU%DQNLQJ

Rafe Haneef
&KLHI([HFXWLYH2ɝFHU*URXS7UDQVDFWLRQ%DQNLQJ
&KLHI([HFXWLYH2ɝFHU&Ζ0%)RXQGDWLRQ
*URXS&KLHI6XVWDLQDELOLW\2ɝFHU

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 213

S TA K E H O L D E R I N F O R M AT I O N

Group Corporate
Directory 2020
CIMB Group Holdings Berhad CIMB Bank Plc CIMB Bank Berhad
Level 13, Menara CIMB 20A/B, Corner Preah Norodom PHILIPPINES BR ANCH
Jalan Stesen Sentral 2 Boulevard & Street 118,
Ground Floor, ORE Central Building
Kuala Lumpur Sentral Sangkat Phsar Chas,
9th Avenue Corner 31st Street
50470 Kuala Lumpur, Malaysia Phnom Penh 12203,
Bonifacio Global City, Taguig
Tel : 603 2261 8888 Cambodia
1634 Philippines
Fax : 603 2261 0099 Tel : 855 23 988 388
Tel : 63 2 249 9000
Website : www.cimb.com Fax : 855 23 988 099
Fax : NIL
Website : www.cimbbank.com.kh
Website : www.cimb.com
CIMB Bank Berhad
Level 17, Menara CIMB CIMB Bank (Vietnam) Limited
CIMB Bank (L) Limited
Jalan Stesen Sentral 2 Level 2, CornerStone Building
/HYHO$0DLQ2ɝFH7RZHU
Kuala Lumpur Sentral 16 Phan Chu Trinh
Financial Park Labuan
50470 Kuala Lumpur, Malaysia Hoan Kiem District
Jalan Merdeka
Tel : 603 2261 8888 Hanoi, Vietnam
87000 W P Labuan, Malaysia
Fax : 603 2261 0099 Tel : 84 4 3266 3388
Tel : 6087 597 500
Website : www.cimb.com Fax : 84 4 3266 3389
Fax : 6087 597 501
Website : www.cimbbank.com.vn
Website : www.cimb.com
CIMB Investment Bank Berhad
Level 17, Menara CIMB CIMB Bank Berhad
CIMB Bank Berhad
Jalan Stesen Sentral 2 SINGAPORE BR ANCH
L ABUAN OFFSHORE BR ANCH
Kuala Lumpur Sentral #09-01, Singapore Land Tower
50470 Kuala Lumpur, Malaysia 5DɞHV3ODFH /HYHO$0DLQ2ɝFH7RZHU
Tel : 603 2261 8888 Singapore Financial Park Labuan
Fax : 603 2261 0099 Tel : 65 6337 5115 Jalan Merdeka
Website : www.cimb.com Fax : 65 6337 5335 87000 W P Labuan, Malaysia
Website : www.cimb.com.sg Tel : 6087 597 500
CIMB Islamic Bank Berhad Fax : 6087 597 501
Level 17, Menara CIMB CIMB Bank Berhad Website : www.cimb.com
Jalan Stesen Sentral 2 LONDON BR ANCH
Kuala Lumpur Sentral CIMB Investment Bank Berhad
Ground Floor, 27, Knightsbridge
50470 Kuala Lumpur, Malaysia BRUNEI BR ANCH
London SW1X 7LY
Tel : 603 2261 8888
United Kingdom 14th Floor, PGGMB Building
Fax : 603 2261 0099
Tel : 44 0 20 7201 3150 Jalan Kianggeh
Website : www.cimb.com
Fax : 44 0 20 7201 3151 Bandar Seri Begawan BS8111
Website : www.cimb.com Brunei Darussalam
PT Bank CIMB Niaga Tbk
Tel : 673 224 1888
Graha CIMB Niaga
CIMB Bank Berhad Fax : 673 224 0999
16th Floor, Ji. Jend Sudirman Kav. 58
SHANGHAI BR ANCH Website : www.cimb.com
Jakarta 12190, Indonesia
Tel : 6221 250 5252 Unit 1805-1807, Azia Center
CIMB Thai Bank Pcl
Fax : 6221 252 6749 /XMLD]XL5LQJ5RDG
VIENTIANE BR ANCH
Website : www.cimbniaga.com Pudong New District
Shanghai 200120, China 010, Lanexang Avenue
CIMB Thai Bank Public Company Tel : 86 21 2026 1888 Unit 2, Ban Hatsadi
Limited Fax : 86 21 2026 1988 Chanthabury District
44, Langsuan Road Website : www.cimb.com Vientiane, Lao Pdr
Lumpini, Pathumwan Tel : 856 21 255 355
Bangkok 10330, Thailand CIMB Bank Berhad Fax : 856 21 255 356
Tel : 662 638 8000/662 626 7000 H O N G KO N G B R A N C H Website : www.cimb.com
Fax : 662 657 3333
Rooms 2501 & 2507-2510,
Website : www.cimbthai.com
25th Floor, Gloucester Tower,
The Landmark, 15 Queen's Road,
Central, Hong Kong
Tel : 852 2586 7288
Fax : 852 2556 3863
Website : www.cimb.com

214 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


Touch ‘N Go Sdn. Bhd.
Tower 6, Avenue 5, Bangsar South
No. 8, Jalan Kerinchi
59200 Kuala Lumpur, Malaysia
Tel : 603 2714 8000
Fax : 603 2714 8001
Website : www.touchngo.com.my
CIMB Trust Limited
Group Corporate Directory 2020
CIMB Foundation Principal Islamic Asset Management
Level 17, Menara CIMB Sdn. Bhd.
Jalan Stesen Sentral 2 10th Floor, Bangunan CIMB
Kuala Lumpur Sentral Jalan Semantan, Damansara Heights
50470 Kuala Lumpur, Malaysia 50490 Kuala Lumpur, Malaysia
Tel : 603 2261 8888 Tel : 603 2084 8888
Fax : 603 2261 8874 Fax : 603 2084 8899
Website : www.cimbfoundation.com Website : www.principal.com.my
/HYHO$0DLQ2ɝFH7RZHU CIMB Bancom Capital Corporation CIMB Bank Berhad
Financial Park Labuan 28th Floor, ORE Central Building YA N G O N R E P R E S E N TAT I V E
Jalan Merdeka 9th Avenue Corner 31st Street OFFICE
87000 W P Labuan, Malaysia Bonifacio Global City, Taguig
1219, Level 12-A, Sakura Tower,
Tel : 6087 414 252 1634 Philippines
Kyauktada Township, Yangon,
Fax : 6087 411 855 Tel : NIL
Myanmar
Website : www.cimb.com Fax : NIL
Tel : 951 8 255 430
Website : www.cimb.com
Fax : 951 8 255 430
CIMB Islamic Trustee Berhad
Website : www.cimb.com
Level 21, Menara CIMB CIMB Investment Bank (Private)
Jalan Stesen Sentral 2 Limited
CIMB Bank Berhad
Kuala Lumpur Sentral No.47, Alexandra Place,
M U M B A I R E P R E S E N TAT I V E
50470 Kuala Lumpur, Malaysia Colombo 07, Sri Lanka
OFFICE
Tel : 603 2261 8888 Tel : 94 11 269 5782
Fax : 603 2261 9887 Fax : 94 11 269 5410 Plot No.C-59, G-Block, Platina
Website : www.cimb.com Website : www.cimb.com 2ɝFH1RDWK)ORRU
Bandra Kurla Complex
CIMB Commerce Trustees Berhad CGS-CIMB Holdings Sdn Bhd Bandra (East), Mumbai 400051
Level 21, Menara CIMB /HYHO7URSLFDQD&LW\2ɝFH7RZHU Tel : 91 22 6671 1570/
Jalan Stesen Sentral 2 No. 3, Jalan SS20/27, 91 02 2650 0330
Kuala Lumpur Sentral 47400 Petaling Jaya, Selangor Fax : NIL
50470 Kuala Lumpur, Malaysia Tel : 603 2261 8888 Website : www.cimb.com
Tel : 603 2261 8888 Fax : 603 2261 8899
Fax : 603 2261 9887 Website : www.cgs-cimb.com.my
Website : www.cimb.com
CGS-CIMB Securities International
iCIMB (Malaysia) Sdn. Bhd. Pte. Ltd.
19th Floor, Tower 5, Avenue 7 #16-02, Singapore Land Tower
Bangsar South 5DɞHV3ODFH
No. 8, Jalan Kerinchi Singapore
59200 Kuala Lumpur, Malaysia Tel : 65 6225 1228
Tel : 603 2180 7198 Fax : 65 6225 1522
Fax : 603 2180 7100 Website : www.cgs-cimb.com
Website : www.cimb.com
Principal Asset Management Berhad
iCIMB (MSC) Sdn. Bhd. 10th Floor, Bangunan CIMB
19th Floor, Tower 5, Avenue 7 Jalan Semantan, Damansara Heights
Bangsar South 50490 Kuala Lumpur, Malaysia
No. 8, Jalan Kerinchi Tel : 603 2084 8888
59200 Kuala Lumpur, Malaysia Fax : 603 2084 8899
Tel : 603 2180 7198 Website : www.principal.com.my
Fax : 603 2180 7100
Website : www.cimb.com

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 215

S TA K E H O L D E R I N F O R M AT I O N

Notice of
Annual General Meeting

NOTICE IS HEREBY GIVEN that the 64th Annual General Meeting (“AGM”) of CIMB Group
Holdings Berhad (“CIMB” or “the Company”) will be held fully virtual at the broadcast
venue at Level 31, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur Sentral, 50470 Kuala
Lumpur, Malaysia on Thursday, 15 April 2021 at 10.00 a.m. to transact the following
EXVLQHVVHVZLWKRUZLWKRXWPRGLȴFDWLRQV

A S ORDINARY BUSINESS

1. 7RUHFHLYHWKH$XGLWHG)LQDQFLDO6WDWHPHQWVIRUWKHȴQDQFLDO\HDUHQGHG'HFHPEHUDQGWKH
Reports of the Directors and Auditors thereon.
Please refer to Explanatory Note 7

2. To re-elect the following Directors who retire pursuant to Article 81 of the Company’s Constitution:
2.1 Datuk Mohd Nasir Ahmad Ordinary Resolution 1
2.2 Mr. Robert Neil Coombe Ordinary Resolution 2
2.3 Encik Afzal Abdul Rahim Ordinary Resolution 3
Please refer to Explanatory Note 8

3. To re-elect the following Directors who retire pursuant to Article 88 of the Company’s Constitution:
3.1 Dato’ Abdul Rahman Ahmad Ordinary Resolution 4
3.2 Ms. Serena Tan Mei Shwen Ordinary Resolution 5
Please refer to Explanatory Note 8

4. 7RDSSURYHWKHSD\PHQWRI1RQ([HFXWLYH'LUHFWRUVȇIHHVZLWKH΍HFWIURPWKHWK$*0XQWLOWKH
next AGM of the Company, as follows: Ordinary Resolution 6

Retainer Fee Chairperson’s Premium

– per annum – per annum
(RM) (RM)

Board
– Chairperson 170,000 510,000
– Member 170,000 N/A

Board Committee
– Chairperson N/A 100,000
– Member N/A N/A
Please refer to Explanatory Note 9

5. 7RDSSURYHWKHSD\PHQWRIDOORZDQFHVDQGEHQHȴWVSD\DEOHWR1RQ([HFXWLYH'LUHFWRUVRIWKH
Company up to an amount of RM3,895,000 from the 64th AGM until the next AGM of the Company. Ordinary Resolution 7
Please refer to Explanatory Note 9

6. 7RUHDSSRLQW0HVVUV3ULFHZDWHUKRXVH&RRSHUVDV$XGLWRUVRIWKH&RPSDQ\IRUWKHȴQDQFLDO\HDU
HQGLQJ'HFHPEHUDQGWRDXWKRULVHWKH%RDUGRI'LUHFWRUVWRȴ[WKHLUUHPXQHUDWLRQ Ordinary Resolution 8
Please refer to Explanatory Note 10

216 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Notice of Annual General Meeting

A S SPECIAL BUSINESS

7RFRQVLGHUDQGLIWKRXJKWȴWWRSDVVWKHIROORZLQJ2UGLQDU\5HVROXWLRQV
7. Proposed Renewal of the Authority for Directors to Allot and Issue Shares.
“THAT pursuant to Section 76 of the Companies Act, 2016, the Directors be and are hereby given Ordinary Resolution 9
full authority to allot and issue shares in the Company, at any time and upon such terms and Ʉ
FRQGLWLRQVDQGIRUVXFKSXUSRVHVDVWKH'LUHFWRUVPD\LQWKHLUDEVROXWHGLVFUHWLRQGHHPȴW
provided that the aggregate number of shares issued pursuant to this resolution in any one
ȴQDQFLDO\HDUGRHVQRWH[FHHGRIWKHLVVXHGFDSLWDORIWKH&RPSDQ\IRUWKHWLPHEHLQJAND
THAT the Directors be and are hereby given full authority to obtain approval for the listing of and
quotation for the additional shares so issued on the Bursa Malaysia Securities Berhad AND THAT
such authority shall continue in force until the conclusion of the next Annual General Meeting of
the Company or at the expiry of the period within which the next Annual General Meeting is
required to be held in accordance with the provisions of the Companies Act, 2016, whichever is the
earlier.”
Please refer to Explanatory Note 11

8. Proposed Renewal of the Authority for Directors to Allot and Issue New Ordinary Shares
in the Company (CIMB Shares) in Relation to the Dividend Reinvestment Scheme that
provides the Shareholders of the Company with the Option to Elect to Reinvest Their
Cash Dividend Entitlements in New Ordinary Shares in the Company (DRS).
“THAT pursuant to the DRS approved at the Extraordinary General Meeting held on 25 February Ordinary Resolution 10
2013 and renewed at the Annual General Meeting held on 30 June 2020, approval be and is hereby Ʉ
given to the Company to allot and issue such number of new CIMB Shares for the DRS until the
conclusion of the next Annual General Meeting, upon such terms and conditions and to such
SHUVRQVDVWKH'LUHFWRUVPD\LQWKHLUDEVROXWHGLVFUHWLRQGHHPȴWDQGLQWKHLQWHUHVWRIWKH
Company PROVIDED THAT WKHLVVXHSULFHRIWKHVDLGQHZ&Ζ0%6KDUHVVKDOOEHȴ[HGE\WKH
'LUHFWRUVDWQRWPRUHWKDQWHQSHUFHQWGLVFRXQWWRWKHDGMXVWHGGD\YROXPHZHLJKWHG
DYHUDJHPDUNHWSULFH9:$03RI&Ζ0%6KDUHVLPPHGLDWHO\SULRUWRWKHSULFHȴ[LQJGDWHRIZKLFK
WKH9:$03VKDOOEHDGMXVWHGH[GLYLGHQGEHIRUHDSSO\LQJWKHDIRUHPHQWLRQHGGLVFRXQWLQȴ[LQJ
WKHLVVXHSULFHDQGQRWOHVVWKDQWKHSDUYDOXHRI&Ζ0%6KDUHVDWWKHPDWHULDOWLPH

AND THAT the Directors and the Secretary of the Company be and are hereby authorised to do all
such acts and enter into all such transactions, arrangements and documents as may be necessary
RUH[SHGLHQWLQRUGHUWRJLYHIXOOH΍HFWWRWKH'56ZLWKIXOOSRZHUWRDVVHQWWRDQ\FRQGLWLRQV
PRGLȴFDWLRQVYDULDWLRQVDQGRUDPHQGPHQWVLIDQ\DVPD\EHLPSRVHGRUDJUHHGWRE\DQ\
UHOHYDQWDXWKRULWLHVRUFRQVHTXHQWXSRQWKHLPSOHPHQWDWLRQRIWKHVDLGFRQGLWLRQVPRGLȴFDWLRQV
YDULDWLRQVDQGRUDPHQGPHQWVDVWKH\LQWKHLUDEVROXWHGLVFUHWLRQGHHPȴWDQGLQWKHEHVW
interest of the Company.”
Please refer to Explanatory Note 12

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 217

S TA K E H O L D E R I N F O R M AT I O N

Notice of Annual General Meeting

9. Proposed Renewal of the Authority to Purchase Own Shares.

“THAT VXEMHFWWRWKH&RPSDQLHV$FWDVPD\EHDPHQGHGPRGLȴHGRUUHHQDFWHGIURPWLPH Ordinary Resolution 11
to time), the Company’s Constitution and the requirements of the Bursa Malaysia Securities Berhad Ʉ
(Bursa Securities) and approvals of all the relevant governmental and/or regulatory authorities, the
Company be and is hereby authorised to purchase such number of ordinary shares in the
Company (Proposed Shares Buy-Back) as may be determined by the Board of Directors of the
Company from time to time through Bursa Securities upon such terms and conditions as the Board
RI'LUHFWRUVPD\GHHPȴWDQGH[SHGLHQWLQWKHLQWHUHVWRIWKH&RPSDQ\SURYLGHGWKDWWKH
aggregate number of ordinary shares purchased and/or held pursuant to this resolution does not
exceed 10% of the total issued and paid-up share capital of the Company at any point in time and
an amount not exceeding the total retained earnings of approximately RM1.399 billion based on
WKH$XGLWHG)LQDQFLDO6WDWHPHQWVIRUWKHȴQDQFLDO\HDUHQGHG'HFHPEHUEHDOORFDWHGE\
the Company for the Proposed Shares Buy-Back AND THAT the ordinary shares of the Company to
be purchased are proposed to be cancelled and/or retained as treasury shares and/or retained as
treasury shares and cancel the remainder of the shares AND THAT where such shares are held as
treasury shares, the Directors of the Company may distribute the shares as dividends, re-sold on
Bursa Securities, transfer the shares under the employees’ share scheme or as purchase
consideration or otherwise use the shares for such other purposes as the Minister may by order
prescribe AND THAT the Board of Directors of the Company be and are hereby given full authority
JHQHUDOO\WRGRDOODFWVDQGWKLQJVWRJLYHH΍HFWWRWKH3URSRVHG6KDUHV%X\%DFNZLWKWKHIXOO
SRZHUWRDVVHQWWRDQ\FRQGLWLRQVPRGLȴFDWLRQVUHYDOXDWLRQVDQGRUDPHQGPHQWVLIDQ\DVPD\
be imposed by the relevant authority with full power to do all such acts and things thereafter on
any part of the shares bought back in accordance with the Companies Act, 2016, Company’s
Constitution, Main Market Listing Requirements of Bursa Securities and any other rules and
regulations that may be in force from time to time AND THAT such authority shall commence
immediately upon passing of this ordinary resolution until:
i. the conclusion of the next Annual General Meeting of the Company in 2022 at which time
such authority shall lapse unless by ordinary resolution passed at that meeting, the authority
LVUHQHZHGHLWKHUXQFRQGLWLRQDOO\RUVXEMHFWWRFRQGLWLRQV
ii. the expiration of the period within which the next Annual General Meeting after that date is
UHTXLUHGE\ODZWREHKHOGRU
iii. revoked or varied by ordinary resolution passed by the Shareholders of the Company in a
JHQHUDOPHHWLQJ

ZKLFKHYHULVWKHHDUOLHUEXWQRWVRDVWRSUHMXGLFHWKHFRPSOHWLRQRISXUFKDVHVE\WKH&RPSDQ\
before the aforesaid expiry date and, in any event, in accordance with the provisions of the
guidelines issued by the Bursa Securities and/or any other relevant authorities.”
Please refer to Explanatory Note 13

10. To transact any other business of which due notice shall have been duly given in accordance with
the Companies Act, 2016.

BY ORDER OF THE BOARD

Datin Rossaya Mohd Nashir

Group Company Secretary
LS 0007591/PC No. 202008000361

Kuala Lumpur
18 March 2021

218 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020


E X P L A N AT O R Y N O T E S
VIRTUAL AGM
1. As part of the initiatives to curb the spread of COVID-19, the 64th AGM of
the Company will be conducted entirely on a virtual basis through live
streaming and online remote voting via Remote Participation and
Electronic Voting facilities which are available on Boardroom Share
Registrars Sdn Bhd’s website at Boardroom Smart Investor Online Portal
at www.boardroomlimited.my. Please follow the procedures provided in
the Administrative Details for the 64th AGM in order to register,
participate and vote remotely.
2. The venue of the 64th AGM is strictly for the purpose of complying with
Section 327(2) of the Companies Act 2016 which requires the Chairman of
the meeting to be present at the main venue of the meeting. The venue of
the 64th AGM is to inform shareholders where the electronic AGM
production and streaming would be conducted from. No shareholder(s)/
proxy(ies) from the public will be physically present at the meeting venue.
PROX Y
1. Section 334 of the Companies Act, 2016 provides that a member of a
company shall be entitled to appoint another person or persons as his/
her proxy or proxies to exercise all or any of his/her rights to attend,
participate, speak and vote at a meeting of members of the company. A
proxy may, but need not, be a Member of the Company. A Member may
appoint any person to be his/her proxy without any restriction as to the
TXDOLȴFDWLRQRIVXFKSHUVRQ
2. Where a member appoints more than one (1) proxy, the appointment shall
EHLQYDOLGXQOHVVKHVKHVSHFLȴHVWKHSURSRUWLRQRIKLVKHUVKDUHKROGLQJ
to be represented by each proxy. A member shall be entitled to appoint
only one (1) proxy unless he/she has more than 1,000 shares in which case
Notice of Annual General Meeting
RE-ELECTION OF DIRECTORS
8. Article 81 of the Company’s Constitution provides that one-third (1/3) of
the Directors of the Company for the time being shall retire by rotation at
the AGM of the Company and be eligible for re-election. Three out of Eight
Directors are to retire in accordance with Article 81 of the Company’s
Constitution. The Shareholders’ approval is sought under Ordinary
Resolutions 1, 2 and 3.
Article 88 of the Company’s Constitution provides that the Board shall
KDYHWKHSRZHUWRDSSRLQWDQ\SHUVRQWREHD'LUHFWRUWRȴOODFDVXDO
vacancy or as an addition to the existing Board of Directors. Any Director
VRDSSRLQWHGVKDOOKROGRɝFHXQWLOWKHQH[W$*0DQGVKDOOWKHQEHHOLJLEOH
for re-election. The Shareholders’ approval is sought under Ordinary
Resolution 4 and 5.
The suitability of a Director as a Board member is in accordance with the
Bank Negara Malaysia (BNM) Guidelines on Corporate Governance and
the Group’s Fit and Proper Policies and Procedures for Key Responsible
Persons. The Group Nomination and Remuneration Committee (GNRC)
considered the following criteria in determining the eligibility of the
Directors to stand for re-election at the 64th AGM:
(i) The Director’s competency in specialised areas of practise and level
of contribution to the Board through their knowledge, skills and
H[SHUWLVH
(ii) The level of independence demonstrated by the Directors, and his
DELOLW\WRDFWLQWKHEHVWLQWHUHVWRIWKH&RPSDQ\
(iii) Probity, personal integrity and reputation, where the Directors must
have personal qualities such as honesty, integrity, diligence,
LQGHSHQGHQFHRIPLQGDQGIDLUQHVVDQG
(iv) Financial integrity, where the Directors must manage his debts or
KHVKHPD\DSSRLQWXSWRȴYHSUR[LHVSURYLGHGHDFKSUR[\DSSRLQWHG
shall represent at least 1,000 shares.
3. The instrument appointing a proxy shall be in writing under the hand of
the appointer or his/her attorney duly authorised in writing or if such
appointer is a corporation, under its Seal or the hand of its attorney.
4. This instrument duly completed must be deposited at the Registrar’s
RɝFHDW%RDUGURRP6KDUH5HJLVWUDUV6GQ%KGWK)ORRU0HQDUD
Symphony, No. 5, Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling
Jaya, Selangor, Malaysia, not less than twenty-four (24) hours before the
time appointed for holding the meeting which is no later than 10.00 a.m.
on Wednesday, 14 April 2021.
5. Pursuant to Paragraph 8.29A of Bursa Malaysia Securities Berhad Main
Market Listing Requirements, all resolutions set out in the Notice of 64th
AGM will be put to vote on a poll.
M E M B E R S E N T I T L E D T O AT T E N D
6. For the purpose of determining a member who shall be entitled to attend
the 64th AGM, the Company shall request Bursa Malaysia Depository Sdn.
Bhd. in accordance with Article 59(c) of the Company’s Constitution and
Section 34(1) of the Securities Industry (Central Depositories) Act, 1991 to
issue a Record of Depositors as at 9 April 2021. Only a depositor whose
name appears on the Record of Depositors as at 9 April 2021 shall be
entitled to attend the said meeting or appoint proxies to attend,
participate, speak and/or vote on his/her behalf.
A U D I T E D F I N A N C I A L S TAT E M E N T S F O R T H E F I N A N C I A L Y E A R
ENDED 31 DECEMBER 2020
7. This Agenda item is meant for discussion only pursuant to the provisions
of Section 340(1)(a) of the Companies Act, 2016 and will not be put
forward for voting.
ȴQDQFLDOD΍DLUVSUXGHQWO\
The GNRC has also conducted an assessment on the independence of the
Independent Directors seeking re-election at this AGM based on the
FULWHULDVHWE\WKH&RPSDQ\DQGJXLGHGE\WKHGHȴQLWLRQRIȊΖQGHSHQGHQW
Director” as prescribed by the Main Market Listing Requirements of Bursa
Securities and BNM Corporate Governance Policy. The Board has
DVVHVVHGWKHLUWLPHDQGFRPPLWPHQWWRH΍HFWLYHO\GLVFKDUJHWKHLU
respective roles as Directors of the Company. The retiring Directors had
abstained from deliberation and decision on their own eligibility to stand
for re-election at the relevant GNRC and Board meetings, where
DSSOLFDEOH7KH%RDUGLVVDWLVȴHGWKDWWKH'LUHFWRUVVHHNLQJUHHOHFWLRQ
KDYHPDLQWDLQHGWKHLULQGHSHQGHQFHLQWKHȴQDQFLDO\HDUHQGHG
December 2020.
Section 54(2)(a) of the Financial Services Act 2013 (FSA) provides that the
appointment, re-appointment, election or re-election as Chairperson,
'LUHFWRURU&KLHI([HFXWLYH2ɝFHURIWKH&RPSDQ\LVVXEMHFWWRDSSURYDO
by BNM. In this respect, BNM’s approval for the tenures of the Directors
VHHNLQJUHHOHFWLRQLVVWLOOH΍HFWLYHXQGHUOrdinary Resolutions 1, 2, 3, 4
and 5.
 7KHSURȴOHVRI'LUHFWRUVVHHNLQJUHHOHFWLRQDQGUHDSSRLQWPHQWDUHVHW
RXWLQWKH3URȴOHRI'LUHFWRUVȇVHFWLRQRIWKH&RPSDQ\ȇV$QQXDO5HSRUW
2020.
N O N - E X E C U T I V E D I R E C T O R S F E E S A N D B E N E F I T S PAYA B L E
9. Section 230(1) of the Companies Act, 2016, provides amongst others, that
ȊIHHVȋRIWKHGLUHFWRUVDQGȊDQ\EHQHȴWVȋSD\DEOHWRWKHGLUHFWRUVRID
listed company and its subsidiaries shall be approved at a general
meeting. Pursuant thereto, Shareholders’ approval is sought for the
SD\PHQWRIIHHVDQGEHQHȴWVSD\DEOHWRWKH1RQ([HFXWLYH'LUHFWRUVLQ
separate Resolutions:
(i) Ordinary Resolution 6: To approve the payment of the Non-
([HFXWLYH'LUHFWRUVȇIHHVZLWKH΍HFWIURPWKHWK$*0XQWLOWKHQH[W
AGM of the Company
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 219
S TA K E H O L D E R I N F O R M AT I O N

Notice of Annual General Meeting

The Board of Directors is recommending the Directors’ fees for the (ii) Ordinary Resolution 7: To approve the payment of allowances and
Company and its subsidiaries as approved at the previous AGM of the EHQHȴWVSD\DEOHWR1RQ([HFXWLYH'LUHFWRUVRIWKH&RPSDQ\XSWRDQ
Company, for Shareholders’ approval. There is no revision to the amount of RM3,895,000 from the 64th AGM until the next AGM of the
amount proposed. Company.
For the Company
The amount payable to Non-Executive Directors comprises
Chairperson’s DOORZDQFHVEHQHȴWVLQNLQGDQGRWKHUHPROXPHQWVSD\DEOHWRWKHP
Retainer Fee Premium by the Company and its subsidiaries, details of which are as follows:
– per annum – per annum
For the Company
(RM) (RM)
Meeting
Board Allowance
– Chairperson 170,000 510,000 – per meeting
– Member 170,000 N/A (RM) %HQHȴWVLQNLQG
Board Committee Board
– Chairperson N/A 100,000 – Chairperson 5,000 Club membership fees, driver,
– Member N/A N/A leave passage, company car &
RWKHUFODLPDEOHEHQHȴWV
For Subsidiaries of the Company
– Member 5,000 ΖQFOXGHVEHQHȴWVWKDWDUH
Name Position Held Fee Type Amount claimable including
Datuk Mohd CIMB Bank Berhad reimbursable expenses
Nasir Fixed Fee: incurred in the course of
Ahmad • Chairperson Chairperson’s carrying out their duties as
premium – per Directors
annum RM150,000 Board
Board Committee N/A
Retainer Fee – Chairperson
– per annum RM150,000 & Member 5,000
• Audit Audit
Committee Committee  ΖQGHWHUPLQLQJWKHHVWLPDWHGDPRXQWRIEHQHȴWVSD\DEOHIRUWKH
Chairperson Chairperson’s Non-Executive Directors, various factors, including the number of
premium – per scheduled meetings for the Board, Board Committees and Boards of
annum RM90,000 subsidiaries as well as the number of Non-Executive Directors
CIMB Bank (Cambodia) PLC involved in these meetings were considered. The Board is hereby
Fixed Fee: recommending up to an amount of RM3,895,000 as payment of
• Chairperson Board DOORZDQFHVDQGEHQHȴWVSD\DEOHIURPWKHWK$*0XQWLOWKHQH[W
Retainer Fee AGM of the Company.
– per annum USD7,000
Monthly For the Subsidiaries
Allowance USD1,200
Name Position Held Fee Type Amount
• Audit Retainer Fee
Committee – per annum USD4,500 Datuk Mohd CIMB Bank Berhad
Member Nasir Variable Fee:
Ahmad • Chairperson Meeting
Dato’ Lee CIMB Bank Berhad
Kok Kwan Fixed Fee: • Audit allowance
Committee – per meeting RM5,000
• Director Board
Chairperson
Retainer Fee
• Board Risk
– per annum RM150,000
and
Dato’ CIMB Islamic Bank Berhad Compliance
Mohamed Fixed Fee: Committee
Ross Mohd • Chairperson Chairperson’s member
Din premium – per CIMB Bank (Cambodia) PLC
annum RM140,000 Variable Fee:
Board
• Chairperson Meeting
Retainer Fee
allowance
– per annum RM140,000
– per meeting USD1,000
Encik Didi CIMB Investment Bank Berhad
• Audit
Syafruddin Fixed Fee:
Committee
Yahya • Director Board Member USD600
Retainer Fee
Dato’ Lee CIMB Bank Berhad
– per annum RM140,000
Kok Kwan Variable Fee:
PT Bank CIMB Niaga Tbk • Director Meeting
Fixed Fee:
• Board Risk allowance
• Board of Retainer Fee and – per meeting RM5,000
Commissioner – per annum IDR1,212,166,667 Compliance
Committee
member

220 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Notice of Annual General Meeting

Auditors. In its assessment, the AC considered several factors before

Name Position Held Fee Type Amount recommending the re-appointment of the external auditors, as follows:
Dato’ CIMB Islamic Bank Berhad
(i) Level of knowledge, capabilities, experience and quality of previous
Mohamed Variable Fee:
ZRUN
Ross Mohd • Chairperson Meeting
Din • Board Risk allowance LL /HYHORIHQJDJHPHQWZLWKWKH$&
and – per meeting RM5,000 (iii) Ability to provide constructive observations, implications and
Compliance UHFRPPHQGDWLRQVLQDUHDVUHTXLULQJLPSURYHPHQWV
Committee
LY $GHTXDF\LQDXGLWFRYHUDJHH΍HFWLYHQHVVLQSODQQLQJDQGFRQGXFWRI
Member
DXGLW
• Board
Investment Y $ELOLW\WRSHUIRUPDXGLWZRUNZLWKLQDJUHHGWLPHIUDPH
Committee (vi) Non-audit services rendered by the external auditor did not impede
Member LQGHSHQGHQFHDQG
Encik Didi CIMB Investment Bank Berhad
(vii) The external auditor demonstrated unbiased stance when
Syafruddin Variable Fee:
interpreting standards/policies adopted by the Company.
Yahya • Director Meeting
• Board Risk allowance  %HLQJVDWLVȴHGZLWK0HVVUV3ULFHZDWHUKRXVH&RRSHUVȇ3Z&SHUIRUPDQFH
and – per meeting RM5,000
in 2020, their technical competency and audit independence as well as
Compliance
IXOȴOOPHQWRIFULWHULDDVVHWRXWLQ&Ζ0%ȇV*XLGHOLQHVIRUWKH$SSRLQWPHQW
Committee
Re-appointment of External Auditors, the AC recommended the
member
appointment of PwC as external auditors for the Financial Year Ending
PT Bank CIMB Niaga Tbk b'HFHPEHU7KH%RDUGDWLWVPHHWLQJKHOGRQ-DQXDU\
Variable Fee: approved the AC’s recommendation for the re-appointment of PwC as
• President Meeting external auditors of the Company for the Financial Year Ending
Commissioner allowance b'HFHPEHU7KH6KDUHKROGHUVȇ5HVROXWLRQLVVRXJKWXQGHU
• Risk Oversight – per meeting IDR30,000,000 Ordinary Resolution 8.
Committee
Member AUTHORIT Y FOR DIREC TOR S TO ALLOT AND ISSUE SHARES
• Nomination
and 11. Ordinary Resolution 9 is proposed for the purpose of renewing the
Remuneration general mandate for issuance of Shares by the Company under Section 76
Committee of the Companies Act, 2016. If passed, it will give the Directors of the
Member Company authority to issue ordinary shares in the Company at any time in
their absolute discretion without the need to convene a general meeting.
Recognising escalating costs and in view of the ongoing pandemic, the The authorisation, unless revoked or varied by the Company at a general
Board had agreed in 2020, on temporary basis, to reduce the Retainer meeting, will expire at the conclusion of the next AGM of the Company.
Fees and Chairperson’s Premium for CIMB Group Directors by 10%
DQG0HHWLQJ$OORZDQFHE\ZKLFKWRRNH΍HFWRQ-XQH  7KHJHQHUDOPDQGDWHLIJUDQWHGZLOOSURYLGHȵH[LELOLW\WRWKH&RPSDQ\IRU
7KHUHDIWHUWKH%RDUGZRXOGUHDVVHVVWKHH΍HFWLYHQHVVRIWKHVH any possible fund raising activities, including but not limited to further
temporary measures at the end of June 2021.
 6XEMHFWWRWKHVKDUHKROGHUVȇDSSURYDOIRU2UGLQDU\5HVROXWLRQVDQG
WKHSD\PHQWIRUWKHIHHVDQGEHQHȴWVIRUWKHSHULRGFRPPHQFLQJ
from the 64th AGM until next AGM will be made by the Company and
its subsidiaries on a monthly basis and/or as and when incurred. The
Board is of the view that the payments to the Non-Executive Directors
DUHMXVWDQGHTXLWDEOHWDNLQJLQWRDFFRXQWWKHLUUROHVDQG
responsibilities towards the Group and the contribution and services
they render to the Company and its subsidiaries.
 ΖQDGGLWLRQWKH'LUHFWRUVDQG2ɝFHUVRIWKH*URXSDQGWKH&RPSDQ\
DUHFRYHUHGE\'LUHFWRUVDQG2ɝFHUVOLDELOLW\LQVXUDQFHIRUDQ\
liability incurred in the discharge of their duties, provided that they
have not acted fraudulently or dishonestly or derived any personal
SURȴWRUDGYDQWDJH7KHLQVXUDQFHSUHPLXPSDLGGXULQJWKHȴQDQFLDO
year for the Group and the Company amounted to RM1,069,623
(2019: RM1,018,690) and RM Nil (2019: RM Nil).
Please refer to the Notes to the Financial Statements for the amount
of Directors’ Remuneration at the Group and the Company, for the
)LQDQFLDO<HDU(QGHGFRPSULVLQJIHHVDQGEHQHȴWVRI50
million and RM3.354 million, respectively. The remuneration of each
Director is set out in the Corporate Governance Overview on page
135 of the Company’s Annual Report 2020.
APPOINTMENT OF AUDITOR S
10. The Audit Committee (AC), at its meeting held on 26 January 2021
completed its annual assessment on the external auditors in accordance
with CIMB’s Guidelines for the Appointment/Re-appointment of External
SODFLQJRIVKDUHVIRUWKHSXUSRVHRIIXQGLQJIXWXUHLQYHVWPHQWSURMHFWV
working capital and/or acquisition(s).
The Company has not issued new shares pursuant to Section 76 of the
Companies Act, 2016 under the general mandate sought at the 63rd AGM
held on 30 June 2020, which will lapse upon the conclusion of the
forthcoming 64th AGM to be held on 15 April 2021.
AUTHORIT Y FOR DIREC TOR S TO ALLOT AND ISSUE NE W
ORDINARY SHARES IN RESPEC T OF THE DR S
12. The proposed Ordinary Resolution 10 will give authority to the
Directors to allot and issue new ordinary shares in the Company in
respect of the DRS, until the conclusion of the next AGM. A renewal of this
authority will be sought at the subsequent AGM.
AUTHORIT Y TO PURCHA SE OWN SHARES
13. Ordinary Resolution 11, if passed, will authorise the Directors to
purchase CIMB shares through Bursa Securities up to 10% of the issued
and paid-up share capital of the Company. Details of the Proposed Shares
Buy-Back are contained in the Statement Accompanying Notice of AGM.
ABS TENTION FROM VOTING
14. Any Director referred to in Ordinary Resolutions 1, 2, 3, 4 and 5, who is
a Shareholder of the Company will abstain from voting on the resolutions
in respect of his/her re-election at the 64th AGM.
15. All Directors who are Shareholders of the Company will abstain from
voting on Ordinary Resolutions 6 and 7 concerning Directors’
remuneration at the 64th AGM.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 221
S TA K E H O L D E R I N F O R M AT I O N
Statement Accompanying
Notice of Annual General Meeting
(Pursuant to Paragraph 12.06(2) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad)
A. PROPOSED RE - ELEC TION OF DIREC TOR S
P U R S U A N T T O PA R A G R A P H 8 . 2 7 ( 2 ) O F T H E
MAIN MARKET LISTING REQUIREMENTS OF
B U R S A M A L AY S I A S E C U R I T I E S B E R H A D
7KHSURȴOHRIWKH'LUHFWRUVZKRDUHVWDQGLQJIRUUHHOHFWLRQDV
per Ordinary Resolutions 1 to 5 as stated in the Notice of Annual
General Meeting) at the 64th Annual General Meeting of CIMB
Group Holdings Berhad which will be held fully virtual at the
He brings with him vast experience in the areas of
OHDGHUVKLSPDQDJHPHQWȴQDQFHDQGDFFRXQWLQJZKLFK
spans over 40 years, having started his career as a Trainee
Accountant with Tenaga Nasional Berhad (TNB) in 1979 and
moving on to hold various positions in the Finance Division.
In January 1993, Datuk Mohd Nasir was seconded to TNB’s
subsidiary company, Malaysia Transformer Manufacturing
Sdn Bhd as the Financial Controller before being appointed
broadcast venue at Level 31, Menara CIMB, Jalan Stesen Sentral 2,
Kuala Lumpur Sentral, 50470 Kuala Lumpur, Malaysia on
Thursday, 15 April 2021 at 10.00 a.m. are as follows:
1. DATUK MOHD NASIR AHMAD
(Chairperson/Independent Director)
Nationality | Malaysian
Age | 66
Gender | Male
Date of Appointment | 20 July 2015
Length of Tenure | 5
MEMBER SHIP OF BOARD COMMIT TEES
• Member of Audit Committee, Board Risk and Compliance
Committee, Group Nomination and Remuneration
Committee
Q U A L I F I C AT I O N
ȏ )HOORZRI$VVRFLDWLRQRI&KDUWHUHG&HUWLȴHG$FFRXQWDQWV
(ACCA), United Kingdom
• Chartered Accountant, Malaysian Institute of Accountants
(MIA), Malaysia
• Masters in Business Administration (Finance), Universiti
Kebangsaan Malaysia, Malaysia
ARE A S OF E XPERTISE
• Accounting and Finance, Operations, Governance,
Strategy Development and Implementation
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Listed Entities (Other than CIMBGH)
• Nil
Public Companies
• Chairperson/Independent Director of CIMB Bank Berhad
• Chairperson/Independent Director of CIMB Bank PLC
(Cambodia)
• Independent Director of SIRIM Berhad
R E L E VA N T E X P E R I E N C E
Datuk Mohd Nasir Ahmad was the President of Malaysian
Institute of Accountants (MIA) from August 2011 to July 2013.
In September 2013 he was elected as a Council Member of
DV&KLHI([HFXWLYH2ɝFHU&(2LQ-XQH
 ΖQ-DQXDU\KHMRLQHG6KDULNDW3HUPRGDODQ.HEDQJVDDQ
Berhad as its CEO. On 1 June 2001, he was appointed CEO of
Perbadanan Usahawan Nasional Berhad, a position he held
until his retirement on 1 June 2011.
Datuk Mohd Nasir also holds directorships in private
companies namely Prokhas Sdn Bhd and CIMB EOP
Management Sdn Bhd and is a Trustee of Yayasan Canselor
UNITEN.
The Board is of the view that Datuk Mohd Nasir’s leadership
and experience is invaluable to CIMB. He has extensive
exposure and knowledge in the areas of audit, accounting
DQGȴQDQFHDOORIZKLFKDUHFRPSOLPHQWDU\WRWKHGLYHUVLW\
of skill sets of the Board of CIMB. Datuk Mohd Nasir
constantly provides a balanced view of matters being
discussed and is very professional in his approach. The
%RDUGDQG&RPPLWWHHVKDYHEHQHȴWWHGIURPKLVFRXQVHO
RSLQLRQVDQGVRXQGLQGHSHQGHQWMXGJHPHQW
The Board hereby recommends the re-election of Datuk
Mohd Nasir Ahmad as Chairperson/Independent Director of
the Company for the Shareholders’ approval.
2. MR. ROBERT NEIL COOMBE
(Independent Director)
Nationality | Australian
Age | 57
Gender | Male
Date of Appointment | 16 April 2014
Length of Tenure | 6
MEMBER SHIP OF BOARD COMMIT TEES
• Chairperson of the Board Risk and Compliance Committee
• Member of the Group Nomination and Remuneration
Committee
Q U A L I F I C AT I O N
• Bachelor of Laws (Hons), University of Technology, Sydney,
Australia
WKH$VVRFLDWLRQRI&KDUWHUHG&HUWLȴHG$FFRXQWDQWV$&&$
UK and re-elected in September 2016 and November 2019.

222 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Statement Accompanying Notice of Annual General Meeting

ARE A S OF E XPERTISE 3. ENCIK AFZAL ABDUL RAHIM

• Accounting and Audit, Banking and Finance, Operations, (Independent Director)
Consumer Marketing and Human Resource
Nationality | Malaysian
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S Age | 43
Gender | Male
Listed Entities (Other than CIMBGH)
Date of Appointment | 31 January 2019
• Non-Executive Chairperson of Generation Development
Length of Tenure | 2
Group, Australia
Public Companies MEMBER SHIP OF BOARD COMMIT TEES
• Nil • Nil

R E L E VA N T E X P E R I E N C E Q U A L I F I C AT I O N
Mr. Robert Neil Coombe is currently the Non-Executive • Bachelor in Mechanical Engineering with Electronics,
Chairperson of the Generation Development Group, a University of Sussex at Brighton, United Kingdom
ȴQDQFLDOVHUYLFHVEXVLQHVVIRFXVHGRQJHQHUDWLRQDOȴQDQFLDO
solutions. ARE A S OF E XPERTISE
• Legal, Operations, Information Technology, Human
He was previously the Chairperson of Craveable Brands, the
Resource, Strategy Development and Implementation,
largest Australian owned Quick Service Restaurant business
Innovation and Transformation
and was the CEO of Craveable Brands between 2013 and
$SULO%HIRUHMRLQLQJ&UDYHDEOH%UDQGV0U&RRPEH
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
was responsible for all of Westpac’s Retail, Business and Agri
banking operations throughout Australia. Prior to this role, Listed Entities (Other than CIMBGH)
Mr. Coombe spent six years as the CEO of BT Financial ȏ &KLHI([HFXWLYH2ɝFHURI7LPHGRW&RP%HUKDG
Group, responsible for all of Westpac’s funds management, • Non-Independent Director of Symphony Communication
ȴQDQFLDOSODQQLQJLQVXUDQFHSULYDWHEDQNLQJEURNLQJ Public Company Limited
platform and superannuation businesses in Australia. In Public Companies
total, he has over 35 years’ corporate experience in both • Nil
Australia and Asia.
R E L E VA N T E X P E R I E N C E
In addition to the above, Mr. Coombe is also a Director of
Encik Afzal Abdul Rahim is a technology entrepreneur who
7LEUD&DSLWDO6XUȴQJ$XVWUDOLDDQGWKH$XVWUDOLDQ
currently serves as the Commander-In-Chief of TIME
Indigenous Education Foundation.
dotCom Berhad, an ASEAN based telecomunications
operator encompassing Fixed Line, Data Centres and Global
Mr. Coombe has continuously shown commitment and
6XEPDULQH&DEOH6\VWHPV+HMRLQHG7Ζ0(LQDIWHU
professionalism as a Board member. The Board believes
establishing The AIMS Asia Group and Global Transit
that with his vast experience in Australia and Asia as well as
International in 2006.
his extensive knowledge in the international banking and
ȴQDQFLDOLQGXVWU\0U&RRPEHZLOOFRQWLQXHWRSURYLGH
 (QFLN$I]DOIRXQGHGWKHQRQSURȴW0DOD\VLDQΖQWHUQHW
insights and varied perspectives to the Board and
Exchange (MyIX) in 2006 and also serves as a Board
respective committees, as well as provide the Board with
Member of Endeavor Malaysia, an organisation that is
the right mix and balance.
devoted to nurturing high-impact entrepreneurs.
The Board hereby recommends the re-election of
He began his career in the automotive sector, initially as a
0Ub5REHUW1HLO&RRPEHDVΖQGHSHQGHQW'LUHFWRURIWKH
Chassis Development Engineer and thereafter managing
Company for the Shareholders’ approval.
clients on the engineering consultancy side of the business
at Group Lotus PLC. Encik Afzal is also a Licensed
Commercial Pilot.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 223

S TA K E H O L D E R I N F O R M AT I O N
Statement Accompanying Notice of Annual General Meeting
 7KH%RDUGLVRIWKHYLHZWKDW&Ζ0%ZLOOEHQHȴWIURPKDYLQJ
Encik Afzal on the Board given his various skill sets,
especially his competencies in Technology. With his
knowledge and experience, he provides insights on strategic
DQGRSHUDWLRQDOWHFKQRORJ\PDWWHUV*LYHQWKHVLJQLȴFDQFH
of technology in the current socio-environmental context
DQGWKHWUDQVIRUPDWLRQH΍RUWVEHLQJXQGHUWDNHQE\&Ζ0%
(QFLN$I]DOȇVSUHVHQFHZLOODGGYDOXHDQGIXOȴOWKHPL[DQG
composition of the Board of CIMB.
The Board hereby recommends the re-election of Encik
Afzal Abdul Rahim as an Independent Director of the
Company for the Shareholders’ approval.
4. DATO’ ABDUL RAHMAN AHMAD
He has more than 20 years of leadership experience across
PXOWLSOHLQGXVWULHVZKHUHKHKHOG&KLHI([HFXWLYH2ɝFHU
positions in well-established organisations such as
Malaysian Resources Corporation Berhad, Media Prima
Berhad, Ekuiti Nasional Berhad and Permodalan Nasional
%HUKDG3ULRUWRMRLQLQJ&Ζ0%'DWRȇ$EGXO5DKPDQZDVZLWK
Sime Darby Berhad and Velesto Energy Berhad as Non-
Executive Non-Independent Chairman.
Dato’ Abdul Rahman is currently a panel member of
Kumpulan Wang Amanah Negara, Malaysia’s natural
resource fund managed by Bank Negara Malaysia. Besides
being a member of the Association of Banks in Malaysia
(ABM), he also sits on the Board of Finance Industry
Collective Outreach (FINCO) and is a committee member of
the Joint Committee on Climate Change ( JC3).
 *URXS&KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRU
Dato’ Abdul Rahman is a leader who is highly intellectual,
Nationality | Malaysian IRFXVHGGHFLVLYHȴUPDQGWDNHVSHUVRQDODFFRXQWDELOLW\+LV
Age | 51 analytical skills and passion for details will enable him to
Gender | Male lead and execute CIMB’s strategy going forward. Dato’ Abdul
Date of Appointment | 10 June 2020 Rahman’s previous exposure in overseeing several
Length of Tenure | Less than 1 year companies as well as his execution and transformation skills
will be critical especially in today’s uncertain environment to
MEMBER SHIP OF BOARD COMMIT TEES drive CIMB to achieve its Forward23+ goals. The Board
• Nil believes that Dato’ Abdul Rahman’s leadership skills will
further drive the culture of excellence and accountability
Q U A L I F I C AT I O N within CIMB’s workforce.
• Chartered Accountant – Member of Malaysian Institute of
The Board hereby recommends the re-election of Dato’
Accountants, Malaysia
Abdul Rahman Ahmad as Executive Director of the Company
• Chartered Accountant – Institute of Chartered
for the Shareholders’ approval.
Accountants England and Wales (ICAEW), England
• Master of Arts (Economics), University of Cambridge,
England
5. MS. SERENA TAN MEI SHWEN
(Non-Independent Director)
ARE A S OF E XPERTISE
• Corporate Leadership, Strategy Development and Nationality | Malaysian
Execution, Asset Management, Private Equity, Corporate Age | 42
Advisory, Accounting and Audit Gender | Female
Date of Appointment | 30 September 2020
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S Length of Tenure | Less than 1 year
Listed Entities (Other than CIMBGH)
• Commissioner of PT Bank CIMB Niaga TBK MEMBER SHIP OF BOARD COMMIT TEES
• Non-Independent Director of CIMB Thai Bank PCL • Member of Board Risk and Compliance Committee and
Public Companies Group Nomination and Remuneration Committee
ȏ &KLHI([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRURI&Ζ0%%DQN
Berhad Q U A L I F I C AT I O N
• Master of Business Administration, MIT Sloan School of
R E L E VA N T E X P E R I E N C E Management, USA
Dato’ Abdul Rahman Ahmad was appointed as Group Chief • Bachelor of Commerce, Accounting & Finance, Macquarie
([HFXWLYH2ɝFHU([HFXWLYH'LUHFWRURI&Ζ0%*URXS University, Australia
+ROGLQJV%HUKDGDQG&KLHI([HFXWLYH2ɝFHU([HFXWLYH
Director of CIMB Bank Berhad on 10 June 2020.

224 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Statement Accompanying Notice of Annual General Meeting
ARE A S OF E XPERTISE
• Banking and Finance, International Experience
D I R E C T O R S H I P/ R E L E VA N T A P P O I N T M E N T S
Listed Entities (Other than CIMBGH)
• Nil
Public Companies
• Non-Independent Director of CIMB Bank Berhad
• Independent Director of Aviva Ltd
R E L E VA N T E X P E R I E N C E
Ms. Serena Tan was appointed as Non-Independent Director
of CIMB Group Holdings Berhad on 30 September 2020.
 0V6HUHQD7DQMRLQHG.KD]DQDK1DVLRQDO%HUKDGLQ
and is currently an Executive Director of Investments where
she heads Private Markets and Financial Services. She has
RYHU\HDUVRIH[SHULHQFHFRYHULQJWKHȴQDQFLDOVHFWRU
including secondments to Khazanah investee companies
such as the then Bank Lippo (now PT Bank CIMB Niaga Tbk)
in Indonesia. She currently sits on the Board of CIMB Bank
Berhad as well as various other private companies.
Prior to Khazanah, Ms. Serena Tan was with Boston
Consulting Group and McKinsey & Company.
Ms. Serena Tan’s exposure, extensive experience and
knowledge has provided the right balance and
FRPSHWHQFLHVWRHQKDQFHDQGIXOȴOWKHPL[DQGFRPSRVLWLRQ
of the Board of CIMB. Her ability to look at matters from
GL΍HUHQWSHUVSHFWLYHVDQGKHUOHDGHUVKLSDWWULEXWHVKDYH
also helped CIMB towards addressing and managing
challenges raised by various stakeholders, both in Malaysia
and regionally where the Group operates.
The Board hereby recommends the re-election of Ms.
Serena Tan Mei Shwen as Non-Independent Director of the
Company for the Shareholders’ approval.
 7KHGLUHFWRUVOLVWHGDERYHGRQRWKDYHDQ\FRQȵLFWRI
interest or any family relationship with any other Director
DQGRUPDMRUVKDUHKROGHUVRIWKH&RPSDQ\
The directors listed above have not been convicted of any
B. PROPOSED RENE WAL OF THE AUTHORIT Y FOR
DIREC TOR S TO IS SUE SHARES PUR SUANT TO
PA R A G R A P H 6 . 0 3 ( 3 ) O F T H E M A I N M A R K E T
L I S T I N G R E Q U I R E M E N T S O F B U R S A M A L AY S I A
SECURITIES BERHAD
The details of the proposed renewal of the authority for Directors
to issue shares by the Company under Section 76 of the
Companies Act, 2016, are stated in the Explanatory Notes of the
Notice of Annual General Meeting.
C. P R O P O S E D S H A R E S B U Y- B A C K P U R S U A N T T O
PA R A G R A P H 12 . 0 6 ( 2 ) O F T H E M A I N M A R K E T
L I S T I N G R E Q U I R E M E N T S O F B U R S A M A L AY S I A
SECURITIES BERHAD
1. INTRODUC TION
1.1 R E N E W A L O F A U T H O R I T Y F O R C I M B T O
PURCHA SE ITS OWN SHARES (PROPOSED
S H A R E S B U Y- B A C K )
At the last Annual General Meeting of the Company
held on 30 June 2020, the Company had obtained the
Shareholders’ approval to purchase its own shares as
may be determined by the Board of Directors of the
Company from time to time through Bursa Securities,
upon such terms and conditions as the Board of
'LUHFWRUVPD\GHHPȴWDQGH[SHGLHQWLQWKHLQWHUHVWRI
the Company, provided that the aggregate number of
ordinary shares purchased and/or held does not
exceed 10% of the total issued and paid-up share
capital of the Company at any point in time and an
amount not exceeding the total retained earnings of
approximately RM1.399 billion based on the Audited
)LQDQFLDO6WDWHPHQWVRIWKH&RPSDQ\IRUWKHȴQDQFLDO
year ended 31 December 2020.
The authority obtained by the Board of Directors for
purchasing the Company’s own shares in accordance
with the Main Market Listing Requirements of Bursa
Securities governing shares buy-back by listed
companies, will lapse at the conclusion of the
forthcoming 64th Annual General Meeting to be held
on 15 April 2021, unless renewed by an ordinary
resolution.
R΍HQFHZLWKLQWKHSDVWȴYH\HDUVQRUKDYHWKH\EHHQ
imposed of any public sanction or penalty by any relevant
regulatory bodies in 2020.
On 5 March 2021, the Company announced its
intention to seek shareholders’ approval at the
forthcoming 64th Annual General Meeting, for the
proposed renewal of the authority for the Company to
purchase its own shares.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 225
S TA K E H O L D E R I N F O R M AT I O N
Statement Accompanying Notice of Annual General Meeting
1. 2 P U R P O S E O F S TAT E M E N T
The purpose of this Statement is to provide relevant
information on the Proposed Shares Buy-Back and to
seek your approval for the ordinary resolution to renew
the authority for the Company to purchase its own
shares, to be tabled at the forthcoming 64th Annual
General Meeting. The Notice of Annual General
Meeting together with the Proxy Form is set out
herewith.
2. D E TA I L S O F T H E P R O P O S E D S H A R E S B U Y- B A C K
The Board proposes to seek Shareholders’ approval for a
renewal of the authority to purchase and/or hold its own
shares in aggregate of up to 10% of the issued and paid-up
share capital of the Company at any point of time through
Bursa Securities. Based on the issued and paid-up share
capital of the Company as at 1 March 2021 of
RM25,843,808,251 comprising 9,922,966,350 ordinary
shares in the Company (CIMB Shares), a total of 992,296,635
CIMB Shares may be purchased by the Company pursuant
to the Proposed Shares Buy-Back. The maximum number of
shares that can be bought back under this authority will
take into account the number of shares previously bought
back and retained as treasury shares, if any.
 6XFKDXWKRULW\LIDSSURYHGZLOOEHH΍HFWLYHLPPHGLDWHO\
upon passing of the ordinary resolution for the Proposed
Shares Buy-Back until:
(i) the conclusion of the next Annual General Meeting of
CIMB in 2022 at which time such authority shall lapse
unless by ordinary resolution passed at that meeting,
the authority is renewed, either unconditionally or
VXEMHFWWRFRQGLWLRQV
(ii) the expiration of the period within which the next
Annual General Meeting after that date is required by
ODZWREHKHOGRU
(iii) revoked or varied by ordinary resolution passed by the
VKDUHKROGHUVRIWKH&RPSDQ\LQDJHQHUDOPHHWLQJ shares as treasury shares, to cancel the shares purchased,
 ZKLFKHYHULVWKHHDUOLHUEXWQRWVRDVWRSUHMXGLFHWKH
completion of purchase(s) by the Company before the
aforesaid expiry date and, in any event, in accordance with
the provisions of the guidelines issued by Bursa Securities
and/or any other relevant authorities.
The Board proposed to allocate an amount of up to retained
earnings of the Company for the purchase of its own shares
VXEMHFWWR6HFWLRQRIWKH&RPSDQLHV$FWDVPD\
CIMB Shares to be purchased will depend on market
conditions and sentiments of Bursa Securities as well as the
UHWDLQHGHDUQLQJVDQGȴQDQFLDOUHVRXUFHVDYDLODEOHWRWKH
Company. The audited retained earnings of the Company as
at 31 December 2020 was RM1.399 billion.
CIMB may only purchase its own shares at a price which is
not more than 15% above the weighted average market
price for the past 5 market days immediately preceding the
date of the purchase(s). The Company may only re-sell the
purchased shares held as treasury shares at a price which is
(a) not less than the weighted average market price of CIMB
Shares for the 5 market days immediately preceding the
date of re-sale or (b) at a discounted price of not more than
5% to the weighted average market price of CIMB Shares for
the 5 market days immediately prior to the re-sale, provided
that the re-sale takes place not earlier than 30 days from the
date of purchase and the re-sale price is not less than the
cost of purchase of the CIMB Shares being re-sold. The
Company shall, upon each purchase or re-sale of shares
bought back, make the necessary announcements through
Bursa Securities.
The Proposed Shares Buy-Back will allow the Board to
exercise the power of the Company to purchase its own
shares at any time within the abovementioned time period
using internally generated funds and/or external
borrowings. The amount of internally generated funds and/
or external borrowings to be utilised will only be determined
at a later date, depending on the availability of internally
generated funds, actual number of CIMB Shares to be
SXUFKDVHGWKHDQWLFLSDWHGIXWXUHFDVKȵRZVRIWKH*URXS
and other cost factors.
The CIMB Shares purchased and held as treasury shares
may be distributed as share dividends, re-sold on Bursa
Securities in accordance with the relevant rules of Bursa
Securities, cancelled or continue to be retained as treasury
shares. The decision whether to retain the purchased
distribute the treasury shares as share dividends and/or
re-sell the treasury shares on Bursa Securities will be made
by the Board at the appropriate time.
The distribution of treasury shares as share dividends may
EHDSSOLHGDVDUHGXFWLRQRIWKHUHWDLQHGSURȴWVRIWKH
Company. The treatment of the purchased shares held as
treasury shares, this being to distribute as share dividends
or to re-sell on Bursa Securities or both will in turn, depend
RQWKHDYDLODELOLW\RIDPRQJVWRWKHUVUHWDLQHGSURȴWVRIWKH
EHDPHQGHGPRGLȴHGRUUHHQDFWHGIURPWLPHWRWLPHDQG Company.
any prevailing laws, rules, regulations, orders, guidelines and
requirements issued by the relevant authorities at the time
of the purchase (Prevailing Laws). The actual number of

226 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Statement Accompanying Notice of Annual General Meeting

While the purchased shares are held as treasury shares, the 4. E VA L U AT I O N O F T H E P R O P O S E D S H A R E S B U Y-

rights attached to them as to voting, dividends and BACK
participation in any other distributions or otherwise are
4 .1 A D VA N TA G E S
suspended and the treasury shares shall not be taken into
account in calculating the number of percentage of shares The potential advantages of the Proposed Shares
or of a class of shares in the Company for any purposes Buy-Back are as follows:
including, without limiting the generality of the provision of (i) Allow the Company to take preventive measures
Section 127 of the Companies Act, 2016, the provision of any against excessive speculation, in particular when
laws or requirements of the Constitution of the Company or WKH&RPSDQ\ȇVVKDUHVDUHXQGHUYDOXHG
the Main Market Listing Requirements of Bursa Securities
governing substantial shareholding, takeovers, notices, the
requisitioning of meetings, quorum for a meeting and the
result of a vote on a resolution at a meeting.
The Proposed Shares Buy-Back will be carried out in
accordance with the Prevailing Laws at the time of the
purchase including compliance with the public shareholding
spread as required by the Main Market Listing Requirements
of Bursa Securities.
The public shareholding spread of the Company before and
after the Proposed Shares Buy-Back is as follows:
Before the After the
Proposed Proposed
Shares Shares
Buy-Back Buy-Back
Public shareholding
spread 50.22*΄ 55.80*΅
Notes:
*΄ As at 1 March 2021
*΅ Based on the assumption that:
(i) the Proposed Shares Buy-Back involves the aggregate purchase of
992,296,635 CIMB Shares (being 10% of issued and paid-up capital of
the Company as at 1 March 2021) which are to be retained as
WUHDVXU\VKDUHVDQG
(ii) the number of CIMB Shares held by the Directors of CIMB, the
substantial shareholders of CIMB and person connected to them
remain unchanged.
3. R AT I O N A L E F O R T H E P R O P O S E D S H A R E S
B U Y- B A C K
The Proposed Shares Buy-Back will enable CIMB to utilise its
VXUSOXVȴQDQFLDOUHVRXUFHVWREX\EDFN&Ζ0%6KDUHV7KH
increase in Earnings Per Share, if any, arising from the
3URSRVHG6KDUHV%X\%DFNLVH[SHFWHGWREHQHȴWWKH
Shareholders of the Company.
The purchased shares can be held as treasury shares and
re-sold on Bursa Securities to realise potential gain without
D΍HFWLQJWKHWRWDOLVVXHGDQGSDLGXSVKDUHFDSLWDORIWKH
Company. The distribution of the treasury shares as share
dividends may also serve to reward the Shareholders of the
Company.
LL $OORZWKH&RPSDQ\PRUHȵH[LELOLW\LQȴQHWXQLQJ
LWVFDSLWDOVWUXFWXUH
(iii) The resultant reduction of share capital base is
expected to improve the Earnings Per Share and
may strengthen the net tangible assets of the
remaining shares as well as the probability of
declaring a higher quantum of dividend in the
IXWXUH
(iv) To stabilise a downward trend of the market price
RIWKH&RPSDQ\ȇVVKDUHV
(v) Treasury shares can be treated as long-term
investments. It makes business sense to invest in
our own Company as the Board of Directors is
FRQȴGHQWZLWK&Ζ0%ȇVIXWXUHSURVSHFWVDQG
SHUIRUPDQFHLQWKHORQJWHUPDQG
(vi) If the treasury shares are distributed as dividend
by the Company, it may then serve to reward the
Shareholders of the Company.
4 . 2 D I S A D VA N TA G E S
The potential disadvantages of the Proposed Shares
Buy-Back are as follows:
(i) The purchases can only be made out of
distributable reserves resulting in a reduction of
the amount available for distribution as dividends
DQGERQXVLVVXHVWR6KDUHKROGHUVDQG
(ii) The purchases of existing shares involve cash
RXWȵRZIURPWKH&RPSDQ\ZKLFKPD\RWKHUZLVH
be retained and used for the businesses of the
Company.
Nevertheless, the Board of Directors will be mindful of
the interests of the Company and its Shareholders in
exercising the authority to purchase its own shares.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 227
S TA K E H O L D E R I N F O R M AT I O N

Statement Accompanying Notice of Annual General Meeting

5. E F F E C T S O F T H E P R O P O S E D S H A R E S B U Y- B A C K
Assuming that the Company buys back up to 992,296,635 CIMB Shares representing 10% of its issued and paid-up share capital
DVDW0DUFKDQGVXFKVKDUHVSXUFKDVHGDUHFDQFHOOHGRUDOWHUQDWLYHO\EHUHWDLQHGDVWUHDVXU\VKDUHVRUERWKWKHH΍HFWVRI
the Proposed Shares Buy-Back on the share capital, net tangible assets, working capital, earnings and substantial Shareholders’
and Directors’ shareholdings are as set out below:

5 .1 S H A R E C A P I TA L
In the event that all CIMB Shares purchased are cancelled, the Proposed Shares Buy-Back will result in the issued and
paid-up share capital of CIMB as at 1 March 2021 to be reduced from RM25,843,808,251 comprising 9,922,966,350 CIMB
6KDUHVWR50FRPSULVLQJ&Ζ0%6KDUHV+RZHYHULWLVQRWH[SHFWHGWRKDYHDQ\H΍HFWRQWKH
issued and paid-up share capital if all CIMB Shares purchased are to be retained as treasury shares.

 7KHH΍HFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKHLVVXHGDQGSDLGXSVKDUHFDSLWDORI&Ζ0%DUHLOOXVWUDWHGEHORZ

As Per Audited
Financial Statement After Share
as at 31 December As at Purchase and
2020 1 March 2021 Cancellation

Issued and paid-up share capital (RM) 25,843,808,251 25,843,808,251 23,259,427,426*¹

Notes:
*΄ Assuming up to 10% of the issued and paid-up share capital of CIMB or 992,296,635 CIMB Shares are purchased and cancelled.

5 . 2 N E T A S S E T A N D W O R K I N G C A P I TA L
 7KHH΍HFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKHQHWDVVHWVSHUVKDUHRI&Ζ0%DUHGHSHQGHQWRQWKHSXUFKDVHSULFHVRI
&Ζ0%6KDUHVDQGWKHH΍HFWLYHIXQGLQJFRVWRUORVVLQLQWHUHVWLQFRPHWR&Ζ0%

If all CIMB Shares purchased are to be cancelled or retained as treasury shares, the Proposed Shares Buy-Back will reduce
the net assets per share when the purchase price exceeds the net assets per share at the relevant point in time. On the
contrary, the net assets per share will be increased when the purchase price is less than the net assets per share at the
relevant point in time.

The Proposed Shares Buy-Back will reduce the working capital of CIMB, the quantum of which will depend on the amount of
ȴQDQFLDOUHVRXUFHVWREHXWLOLVHGIRUWKHSXUFKDVHRI&Ζ0%6KDUHV

5. 3 E ARNINGS PER SHARE

 7KHH΍HFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKH(DUQLQJV3HU6KDUHRI&Ζ0%DUHGHSHQGHQWRQWKHSXUFKDVHSULFHVRI
&Ζ0%6KDUHVDQGWKHH΍HFWLYHIXQGLQJFRVWRUORVVLQLQWHUHVWLQFRPHWR&Ζ0%

228 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Statement Accompanying Notice of Annual General Meeting

5 . 4 S U B S TA N T I A L S H A R E H O L D E R S ’ A N D D I R E C T O R S ’ S H A R E H O L D I N G S
 7KHH΍HFWVRIWKH3URSRVHG6KDUHV%X\%DFNRQWKH6XEVWDQWLDO6KDUHKROGHUVȇDQG'LUHFWRUVȇVKDUHKROGLQJVEDVHGRQWKH
Register of Substantial Shareholders and the Register of Directors’ Shareholdings respectively as at 1 March 2021 are as
follows:

No. of CIMB Shares Held

Before the Proposed Shares Buy-Back*¹ After the Proposed Shares Buy-Back*²
Substantial
Shareholders Direct % Indirect % Direct % Indirect %

Khazanah Nasional
Berhad 2,700,806,354 27.22 – – 2,700,806,354 30.24 – –

Employees Provident
Fund Board 1,592,033,641*³ 16.04 – – 1,592,033,641 17.83 – –

Kumpulan Wang
Persaraan
(Diperbadankan) 646,884,641 6.52 – – 646,884,641 7.24 – –

Notes:
*΄ $GMXVWHGIRUWKHQXPEHURIWUHDVXU\VKDUHVKHOGDVDW0DUFK
*΅ Assuming that 10% of the issued and paid-up capital is purchased and retained as treasury shares.
*Ά Includes shares held through nominees.

Before the Proposed Shares After the Proposed Shares

Buy-Back*¹ Buy-Back*²

No. of No. of
Directors CIMB Shares Held % CIMB Shares Held %

Dato’ Lee Kok Kwan*4 1,293,720*4 0.01*³ 1,293,720*4 0.01*³

Didi Syafruddin Yahya*5 45,262 0.00*³ 45,262 0.00*³

Notes:
*΄ $GMXVWHGIRUWKHQXPEHURIWUHDVXU\VKDUHVKHOGDVDW0DUFK
*΅ Assuming 10% of the issued and paid-up capital is purchased and retained as treasury shares.
*Ά Less than 0.1%.
*· Includes the shareholdings of his spouse.
*Έ Shareholdings of his spouse.

Save as disclosed above, none of the Directors, substantial Shareholders, and persons connected to the Directors and/or
substantial Shareholders held any CIMB Shares.

6. A P P R O VA L R E Q U I R E D
The Proposed Shares Buy-Back is conditional upon the approval of the Shareholders of CIMB at the forthcoming 64th Annual
General Meeting.

CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 229

S TA K E H O L D E R I N F O R M AT I O N

Statement Accompanying Notice of Annual General Meeting

7. SHARE PRICES 11. S TAT E M E N T B Y B U R S A S E C U R I T I E S

The monthly highest and lowest prices per share of CIMB Bursa Securities takes no responsibility for the contents of
Shares traded on Bursa Securities for the last twelve (12) this Statement, makes no representation as to its accuracy
months from March 2020 to 28 February 2021 are as or completeness and expressly disclaims any liability
follows: whatsoever for any loss howsoever arising from or in
reliance upon the whole or any part of the contents of this
2020 High (RM) Low (RM) Statement.

March 4.46 3.14 12 . D I R E C T O R S ’ R E S P O N S I B I L I T Y S TAT E M E N T

April 3.77 3.37 This Statement has been seen and approved by our Board,
May 3.77 3.41 and our Directors collectively and individually accept full
responsibility for the accuracy of the information contained
June 4.05 3.53 KHUHLQDQGFRQȴUPWKDWDIWHUPDNLQJDOOUHDVRQDEOH
enquiries and to the best of their knowledge and belief,
July 3.81 3.53
there are no other facts, the omission of which would make
August 3.60 3.30 any statement herein misleading.

September 3.28 3.05 13 . D I R E C T O R S ’ R E C O M M E N D AT I O N

October 3.16 2.95 If you are in any doubt as to the course of action to be taken,
you should consult appropriate independent advisers
November 3.83 2.90
immediately.
December 4.50 3.75
After having considered all aspects of the Proposed Shares
Buy-Back, your Board is of the opinion that the Proposed
2021 High (RM) Low (RM) Shares Buy-Back is in the best interest of the Company.
Accordingly, they recommend that you vote in favour of the
January 4.30 3.84
ordinary resolution for the Proposed Shares Buy-Back to be
February 4.33 3.86 tabled at the forthcoming 64th Annual General Meeting.

Note: Based on the actual share price 14 . D O C U M E N T S AVA I L A B L E F O R I N S P E C T I O N

Copies of the following documents are available for
8. P U R C H A S E S , R E S A L E A N D C A N C E L L AT I O N O F
LQVSHFWLRQDWWKHUHJLVWHUHGRɝFHRIWKH&RPSDQ\DW/HYHO
TRE A SURY SHARES MADE DURING THE
13, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur
FINANCIAL YE AR ENDED 31 DECEMBER 2020
Sentral 50470 Kuala Lumpur, during the normal business
 'XULQJWKHȴQDQFLDO\HDUHQGHG'HFHPEHUWKH hours from Monday to Friday (except public holidays) from
Company did not buy back any of its issued share capital the date hereof up to the time stipulated for the holding of
from the open market. the AGM:-
L 7KH&RQVWLWXWLRQRIWKH&RPSDQ\
9. D I R E C T O R S ’ A N D S U B S TA N T I A L
SHAREHOLDERS’ INTERESTS LL 7KHDXGLWHGFRQVROLGDWHGȴQDQFLDOVWDWHPHQWVRIRXU
Company for the FYE 31 December 2018 and the FYE
None of the Directors, substantial Shareholders and/or
'HFHPEHU
persons connected to the Directors or substantial
Shareholders of the Company have any interest, direct or iii. The latest available unaudited consolidated condensed
indirect in the Proposed Shares Buy-Back or the re-sale of LQWHULPȴQDQFLDOVWDWHPHQWVRIRXU&RPSDQ\IRUWKH
treasury Shares. FYE 31 December 2020 which was announced on
b)HEUXDU\DQG
10 . M A L AY S I A N C O D E O N TA K E - O V E R S A N D
iv. Other related documents which is referred to in this
M E R G E R S 2 0 1 6 (C O D E )
statement.
The Proposed Shares Buy-Back if carried out in full (whether
shares are cancelled or treated as treasury shares) may
result in a substantial Shareholder and/or parties acting in
FRQFHUWZLWKLWLQFXUULQJDPDQGDWRU\JHQHUDOR΍HU
obligation. In this respect, the Board is mindful of any
implications arising from the Proposed Shares Buy-Back
under the provision of the Code.

230 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Administrative Details for
64th Annual General Meeting (AGM)
of CIMB Group Holdings Berhad
Due to the unprecedented circumstances arising from the Please note that the Broadcast Venue is strictly for the
measures that have been implemented nationally to limit the purpose of compliance with Section 327 of the Companies
spread of the COVID-19, and in particular, the Government of Act 2016 and Article 57 of the Company’s Constitution.
0DOD\VLDȊ*RYHUQPHQWȋȇVRɝFLDOJXLGDQFHIRUSUDFWLVLQJVRFLDO
distancing, the Board of Directors of CIMB Group Holdings
Berhad (“Board”) has decided that the 64th Annual General
Meeting (“64th AGM”) of CIMB Group Holdings Berhad (“the
Company” or “CIMB”) shall be held fully virtual and entirely via
Remote Participation and Electronic Voting (“RPEV”) facilities on
the date, time and at the Broadcast Venue, as follows:
Date Thursday, 15 April 2021
Time 10.00 a.m.
Broadcast Level 31, Menara CIMB, Jalan Stesen Sentral
Venue 2, Kuala Lumpur Sentral, 50470 Kuala
Lumpur, Malaysia
Meeting https://web.lumiagm.com
Platform
Mode of 1. Type text in the meeting platform. The
Communication Messaging window facility will be
opened concurrently with the Virtual
Meeting Portal, i.e. one (1) hour before
the AGM, which is from 9.00 a.m. on
Thursday, 15 April 2021
2. Shareholders may submit questions in
advance on the AGM resolutions and
Annual Report 2020 commencing from
18 March 2021 and in any event no later
than Friday, 9 April 2021 at 5.00 p.m.,
via Boardroom’s website at https://
boardroomlimited.my using the same
user ID and password provided in Step
2 below, and select “SUBMIT
QUESTION” to pose questions
(“Pre-AGM Meeting Questions”).
P R E C A U T I O N A R Y M E A S U R E S O N C O V I D -19
1. The Company invites shareholders to participate in the
XSFRPLQJWK$*0IURPWKHLUKRPHRURɝFHDQGIROORZ
the entire proceedings as the AGM would be conducted via
RPEV facilities. The AGM will be conducted in accordance
with the practices that have already been adopted by other
internationally developed capital markets. The AGM is
transparent, has a high level of integrity and is
environmentally friendly. Our approach also supports the
Government’s initiative to ban mass gathering as part of its
safety measure to contain the spread of COVID-19, while
concurrently observes AGM deadline as stipulated in the
Companies Act, 2016. Furthermore, throughout the years,
the resolutions in our AGM have been passed electronically,
and the adoption of a fully online AGM is one step ahead for
good corporate governance practice.
NO SHAREHOLDERS/PROXIES/CORPORATE
REPRESENTATIVES should be physically present at or
admitted to the Broadcast Venue on the day of the AGM.
VOTING PROCEDURE
1. The voting procedure will be conducted by poll in
accordance with Paragraph 8.29A of Bursa Malaysia
Securities Berhad (“Bursa Malaysia”) Main Market Listing
Requirements. The Company has appointed Boardroom
Share Registrars Sdn. Bhd. (“Boardroom”) as Poll
Administrator to conduct the poll by way of electronic voting
(“e-voting”) and Deloitte as Scrutineers to verify and validate
the poll results.
2. For the purposes of this AGM, e-voting will be carried out via
the following voting devices:
a. Personal smart mobile phones , tablets or
Laptops
3. There are 2 methods for members and proxies who wish to
use their personal voting device to vote. The methods are as
follows:
a. Launch Lumi AGM by scanning the QR code given to
you in the email along with your remote participation
8VHUΖ'DQG3DVVZRUGRU
b. Access to Lumi AGM via website URL
https://web.lumiagm.com
4. The polling will only commence after the announcement of
poll being opened by the Chairman and until such time
when the Chairman announces the closure of poll.
5. The Scrutineers will verify the poll result reports upon
closing of the poll session by the Chairman and the
Chairman will declare whether the resolutions put to vote
were successfully carried or not.
6. You must ensure that you are connected to the internet at
all times in order to participate and vote remotely when the
64th AGM has commenced. Therefore, it is your
responsibility to ensure that connectivity for the duration of
the AGM is maintained. Kindly note that the quality of the
connectivity to Virtual Meeting Portal for live webcast as well
as for remote online voting is dependent on the bandwidth
and stability of the internet connection at the location of the
remote participants.
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 231
S TA K E H O L D E R I N F O R M AT I O N

Administrative Details for 64th Annual General Meeting (AGM)

of CIMB Group Holdings Berhad

R E M O T E PA R T I C I PAT I O N A N D E L E C T R O N I C
VOTING (“ RPE V ” ) Step 2 – Submit Request for Remote Participation
User ID and Password
7. Please note that the RPEV facilities is available to (Note: The registration for remote access will be opened on
(i) Individual Members; (ii) Corporate Shareholders;
(iii) Authorised Nominee; and (iv) Exempt Authorised
Nominee.
8. If you choose to participate in the Meeting online, you will be
able to view a live webcast of the Meeting, ask questions
and submit your votes in real time whilst the Meeting is in
progress.
9. Kindy follow the steps below on how to request for login ID
and password.
Step 1 – Register Online with Boardroom Smart
b0DUFK
Individual Members
– Login to https://boardroomlimited.my using your
User ID and Password given above.
– Select “VIRTUAL MEETING” from main menu and
select the correct Corporate Event “CIMB GROUP
HOLDINGS BERHAD 64TH VIRTUAL ANNUAL
GENERAL MEETING”.
– Read and agree to the terms & conditions.
– Enter your CDS Account Number and thereafter
submit your request.
Corporate Shareholders, Authorised Nominee
and Exempt Authorised Nominee
ΖQYHVWRU3RUWDOIRUȴUVWWLPHUHJLVWUDWLRQRQO\ – Write in to bsr.helpdesk@boardroomlimited.com by
(Note: If you have already signed up with Boardroom Smart
Investor Portal, you are not required to register again. You may
proceed to Step 2. Submit request for Remote Participation user
ID and password)
a. Access website https://boardroomlimited.my
b. Click <<Login>> and click <<Register>> to sign
up as a user.
c. Complete registration and upload softcopy of
MyKAD (front and back) or Passport in JPEG or
PNG format.
d. Please enter a valid email address and wait for
%RDUGURRPȇVHPDLOYHULȴFDWLRQ
H <RXUUHJLVWUDWLRQZLOOEHYHULȴHGDQGDSSURYHG
within one (1) business day and an email
QRWLȴFDWLRQZLOOEHSURYLGHG
232 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020
providing the name of Member, CDS Account
1XPEHUDFFRPSDQLHGZLWKWKH&HUWLȴFDWHRI
Appointment of Corporate Representative or Form
of Proxy to submit the request.
– Please provide a copy of the Corporate
Representative’s or Proxy Holder’s MyKad (front
and back) or Passport in JPEG or PNG format as well
as his/her email address.
D <RXZLOOUHFHLYHDQRWLȴFDWLRQIURP%RDUGURRP
that your request has been received and is being
YHULȴHG
E 8SRQV\VWHPYHULȴFDWLRQDJDLQVWWKH$*0ȇV
Record of Depositories, you will receive an email
IURP%RDUGURRPHLWKHUDSSURYLQJRUUHMHFWLQJ
your registration for remote participation.
c. You will also receive your remote access user ID
and password along with the email from
Boardroom if your registration is approved.
d. Please note that the closing time to submit your
request is at 10:00 am on 14 April 2021.
Step 3 – Login to Virtual Meeting Portal
(Please note that the quality of the connectivity to Virtual Meeting
Portal for live webcast as well as for remote online voting is highly
dependent on the bandwidth and the stability of the internet
connectivity available at the location of the remote users)
a. The Virtual Meeting portal will be open for login
starting an hour (1 hour) before the
commencement of AGM at 9:00 am on 15 April
2021.
b. Follow the steps given to you in the email along
with your remote access user ID and password to
login to the Virtual Meeting portal. (Refer to Step
2(c) above).
c. The steps will also guide you on how to view live
webcast, ask questions and vote.
d. The live webcast will end and the Messaging
window (for asking questions) will be disabled the
moment the Chairman announces the closure of
the AGM.
e. You can now logout from Virtual Meeting Portal.
 Administrative Details for 64th Annual General Meeting (AGM)
of CIMB Group Holdings Berhad

PA R T I C I PAT I O N T H R O U G H L I V E W E B C A S T, 5. Alternatively, you may deposit your proxy form(s) by

Q U E S T I O N A N D V O T I N G AT T H E 6 4 T H A G M
1. The Chairman and the Board will endeavour their best to
respond to the questions submitted by shareholders which
are related to the resolutions to be tabled at the 64th AGM,
DVZHOODVȴQDQFLDOSHUIRUPDQFHSURVSHFWRIWKH&RPSDQ\
electronic means through the Share Registrar’s website,
Boardroom Smart Investor Online Portal. Kindly follow the
link at https://www.boardroomlimited.my to login and
deposit your proxy form electronically, also 24 hours before
the meeting. For further information, kindly refer to the
“Electronic Lodgment of Form of Proxy” below:

2. All modes of communications are accepted for the purpose

of posting questions to the Chairman and Board before or Step 1 – Register Online with Boardroom Smart
during the AGM. Shareholders are however encouraged to ΖQYHVWRU3RUWDOIRUȴUVWWLPHUHJLVWUDWLRQRQO\
(Note: If you have already signed up with Boardroom Smart
post questions via the online platform during the AGM.
Investor Portal, you are not required to register again. You may
proceed to Step 2 on e-Proxy Lodgement)
3. Shareholders may proceed to cast votes on each of the
proposed resolutions, to be tabled at the 64th AGM, after a. Access website https://boardroomlimited.my
the Chairman has opened the poll on the resolutions. b. Click <<Login>> and click <<Register>> to sign
Shareholders are reminded to cast their votes before the up as a user.
poll is closed. c. Complete registration and upload softcopy of
MyKAD (front and back) or Passport in JPEG or
4. Shareholders who participate in the AGM are able to view PNG format.
the Company’s presentation or slides via the live webcast. d. Please enter a valid email address and wait for
%RDUGURRPȇVHPDLOYHULȴFDWLRQ
H <RXUUHJLVWUDWLRQZLOOEHYHULȴHGDQGDSSURYHG
E N T I T L E M E N T T O PA R T I C I PAT E A N D V O T E within one (1) business day and an email
QRWLȴFDWLRQZLOOEHSURYLGHG
In respect of deposited securities, only members whose names
appear in the Record of Depositors on 9 April 2021 (General
Meeting Record of Depositors) shall be eligible to participate in
Step 2 – e-Proxy Lodgement
the AGM or appoint proxy(ies) to participate and/or vote on his/
her behalf.
a. Login to https://boardroomlimited.my using your
user id and password above.
b. Go to “E-PROXY LODGEMENT” and browse the
F O R M (S ) O F P R OX Y
meeting list for “CIMB GROUP HOLDINGS
1. Shareholders are encouraged to go online, participate, and BERHAD 64TH VIRTUAL ANNUAL GENERAL
vote at the 64th AGM using remote participation and MEETING” and click “APPLY”.
electronic voting facilities. If you are not able to participate c. Read and agree to the terms & conditions and
in the online AGM, you can appoint the Chairman of the FRQȴUPWKH'HFODUDWLRQ
meeting as your proxy and indicate the voting instructions d. Enter your CDS Account Number and indicate the
in the proxy form(s). number of securities.
e. Appoint your proxy(ies) or the Chairman of the
2. Please take note that you must complete the proxy form for AGM and enter the required particulars of your
the AGM should you wish to appoint a proxy(ies). proxy(ies).
f. Indicate your voting instructions – FOR or
3. You may download the Proxy form(s) from our website at AGAINST, otherwise your proxy(ies) will decide
https://www.cimb.com/en/investor-relations/annual- your votes.
reports.html. J 5HYLHZDQGFRQȴUPSUR[\LHVDSSRLQWPHQW
h. Click submit
4. Please ensure that the original form is deposited at the
6KDUH5HJLVWUDUȇVRɝFHQRWOHVVWKDQKRXUVEHIRUHWKH
time appointed for holding the meeting at the following 6. If you wish to participate in the AGM yourself, please do not
address: submit any proxy form for the AGM. You will not be allowed
Boardroom Share Registrars Sdn. Bhd. to participate in the AGM together with the proxy appointed
G Floor or 11th Floor, Menara Symphony by you.
No. 5, Jalan Prof. Khoo Kay Kim
Seksyen 13, 46200 Petaling Jaya
Selangor Darul Ehsan, Malaysia
 2ɝFH
Fax: +60 3 7890 4670
CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020 233
S TA K E H O L D E R I N F O R M AT I O N

Administrative Details for 64th Annual General Meeting (AGM)

of CIMB Group Holdings Berhad

R E V O C AT I O N O F P R OX Y ENQUIRY

If you have submitted your Form(s) of Proxy and subsequently If you have general administrative enquiries on the AGM, please
decide to appoint another person or wish to participate FRQWDFWWKHIROORZLQJGXULQJRɝFHKRXUV
in our electronic AGM by yourself, please write in to
Boardroom Share Registrars Sdn. Bhd.
bsr.helpdesk@boardroomlimited.com to revoke the earlier
2ɝFH+HOSGHVN  
appointed proxy 24 hours before the meeting.
Encik Mohamed Sophiee Ahmad Nawawi : +60 3-7890 4716
Puan Yusliana Md Yusof : +60 3-7890 4718
Fax No. : +60 3 7890 4670
R E CO R D I N G O R P H O T O G R A P H Y AT T H E O N L I N E
AGM
E-mail : BSR.Helpdesk@boardroomlimited.com
No recording or photography of the AGM proceeding is allowed : mohamed.sophiee@boardroomlimited.com
without the prior written permission of the Company. : yusliana.yusof@boardroomlimited.com

CIMB
A N N U A L R E P O R T 2 0 2 0 – G O D I G I TA L & PA P E R L E S S ! Datin Rossaya Mohd Nashir, Group Company Secretary
Cik Farah Atikah Hasnan
1. As part of our dedicated commitment to sustainable Telephone : +603-2261 0085
practices, the Annual Report 2020 can be downloaded from Fax No. : +603 2261 0099
our website at https://www.cimb.com/en/investor-relations/ Email : cimbagm@cimb.com
annual-reports.html and also at Bursa Malaysia website
under “Company Announcements”.

2. Since the 64th AGM will be conducted electronically, there

will be NO DISTRIBUTION of the Annual Report 2020
during the meeting.

P E R S O N A L D ATA P R I VA C Y

By registering for the remote participation and electronic voting

meeting and/or submitting the instrument appointing a proxy(ies)
and/or representative(s), the member of the Company has
consented to the use of such data for purposes of processing
DQGDGPLQLVWUDWLRQE\WKH&RPSDQ\RULWVDJHQWVDQGWRFRPSO\
with any laws, listing rules, regulations and/or guidelines. The
member agrees that he/she will indemnify the Company in
respect of any penalties, liabilities, claims, demands, losses and
damages as a result of the shareholder’s breach of warranty.

234 CIMB *URXS +ROGLQJV %HUKDGɅAnnual Report 2020

 Proxy
Form
CIMB Group Holdings Berhad 195601000197 (50841-W)
(Incorporated in Malaysia)

CDS Account No.

I/We (name of shareholder as per NRIC/ID, in capital letters)

NRIC No./ID No./Company No. (new) (old)

of

(full address)

being a member of CIMB Group Holdings Berhad (“CIMB” or “the Company”), hereby appoint

(name of proxy as per NRIC/ID, in capital letters)

NRIC No./ID No. (new) (old)

or failing whom, (name of proxy as per NRIC/ID, in capital letters)

NRIC No./ID No. (new) (old)

or failing whom, the Chairman of the Meeting as my/our proxy to vote for me/us on my/our behalf at the 64th Annual General Meeting
(AGM) of the Company to be held fully virtual at the broadcast venue at Level 31, Menara CIMB, Jalan Stesen Sentral 2, Kuala Lumpur
6HQWUDO.XDOD/XPSXU0DOD\VLDRQ7KXUVGD\$SULODWDPRUDWDQ\DGMRXUQPHQWWKHUHRI

My/our proxy is to vote as indicated below.

RESOLUTIONS FOR* AGAINST*

1. Receipt of Audited Financial Statements and Reports of the Directors and
Auditors.
2. Re-election of Directors pursuant to Article 81 of the Company’s Constitution:
2.1 Datuk Mohd Nasir Ahmad Resolution 1
2.2 Mr. Robert Neil Coombe Resolution 2
2.3 Encik Afzal Abdul Rahim Resolution 3
3. Re-election of Directors pursuant to Article 88 of the Company’s Constitution:
3.1 Dato’ Abdul Rahman Ahmad Resolution 4
3.2 Ms. Serena Tan Mei Shwen Resolution 5
4. 7RDSSURYHWKHSD\PHQWRI1RQ([HFXWLYH'LUHFWRUVȇIHHVZLWKH΍HFWIURPWKH Resolution 6
64th AGM until the next AGM of the Company.
5. 7RDSSURYHWKHSD\PHQWRIDOORZDQFHVDQGEHQHȴWVSD\DEOHWR1RQ([HFXWLYH Resolution 7
Directors of the Company up to an amount of RM3,895,000 from the 64th
AGM until the next AGM of the Company.
6. To re-appoint Messrs. PricewaterhouseCoopers as Auditors of the Company Resolution 8
DQGWRDXWKRULVHWKH%RDUGRI'LUHFWRUVWRȴ[WKHLUUHPXQHUDWLRQ
7. Proposed Renewal of the Authority for Directors to Allot and Issue Shares. Resolution 9
8. Proposed Renewal of the Authority for Directors to Allot and Issue Shares in Resolution 10
relation to the Dividend Reinvestment Scheme.
9. Proposed Renewal of the Authority to Purchase Own Shares. Resolution 11

As Witness my hand this day of

No. of Shares Held:

Signature of Member(s)


3OHDVHLQGLFDWHZLWKDQȊ;ȋKRZ\RXZLVK\RXUYRWHWREHFDVW8QOHVVRWKHUZLVHLQVWUXFWHGWKHSUR[\PD\YRWHDVKHWKLQNVȴW
NOTES:
1. Section 334 of the Companies Act, 2016 provides that a member of a company shall be entitled to appoint another person or persons as his/her proxy or
proxies to exercise all or any of his rights to attend, participate, speak and vote at a meeting of members of the company. A proxy may, but need not, be a
PHPEHURIWKHFRPSDQ\$PHPEHUPD\DSSRLQWDQ\SHUVRQWREHKLVKHUSUR[\ZLWKRXWDQ\UHVWULFWLRQDVWRWKHTXDOLȴFDWLRQRIVXFKSHUVRQ
 :KHUHDPHPEHUDSSRLQWVPRUHWKDQRQHSUR[\WKHDSSRLQWPHQWVKDOOEHLQYDOLGXQOHVVKHVKHVSHFLȴHVWKHSURSRUWLRQRIKLVKHUVKDUHKROGLQJWREH
represented by each proxy. A member shall be entitled to appoint only one (1) proxy unless he/she has more than 1,000 shares in which case he/she may
DSSRLQWXSWRȴYHSUR[LHVSURYLGHGHDFKSUR[\DSSRLQWHGVKDOOUHSUHVHQWDWOHDVWVKDUHV
 7KLVLQVWUXPHQWGXO\FRPSOHWHGPXVWEHGHSRVLWHGDWWKH5HJLVWUDUȇVRɝFHDW%RDUGURRP6KDUH5HJLVWUDUV6GQ%KGWK)ORRU0HQDUD6\PSKRQ\1R
Jalan Prof. Khoo Kay Kim, Seksyen 13, 46200 Petaling Jaya, Selangor, Malaysia, not less than twenty-four (24) hours before the time appointed for holding the
meeting which is no later than 10.00 a.m. (Wednesday, 14 April 2021).
4. The instrument appointing a proxy shall be in writing under the hand of the appointer or his/her attorney duly authorised in writing or if such appointer is a
corporation, under its Seal or the hand of its attorney.
5. For the purpose of determining a member who shall be entitled to attend the 64th Annual General Meeting, the Company shall request Bursa Malaysia
Depository Sdn. Bhd. in accordance with Article 59(c) of the Company’s Constitution and Section 34(1) of the Securities Industry (Central Depositories) Act,
1991 to issue a Record of Depositors as at 9 April 2021. Only a depositor whose name appears on the Record of Depositors as at 9 April 2021 shall be entitled
to attend the said meeting or appoint proxies to attend, participate, speak and/or vote on his/her behalf.

fold here

AFFIX STAMP

The Share Registrars

BOARDROOM SHARE REGISTRARS SDN. BHD. (1996010006647 (378993-D))

11th Floor, Menara Symphony

No. 5, Jalan Prof. Khoo Kay Kim
Seksyen 13, 46200 Petaling Jaya
Selangor, Malaysia

fold here
 MINIMALIST, EFFICIENT, INTELLIGENT
DESIGN APPROACH
We worked with our creative agency
to plan an optimal design that not only
communicates effectively with the
readers, but also minimises use of ink,
energy for printing, and the associated
costs, without compromising on the
aesthetic value of the design
elements.

SIMPLICITY CLEAN LINES

We have gone sparse – replacing We optimised use of line-drawings,

full scale and massive images with non-filled bar graphs/charts, and
more icons, and limited the use of clean lines for clarity and visually
colours, keeping it rich. more pleasing and easier to
decipher.

MONOCHROMATIC
MINIMAL ART
COLOR PALETTE

By using a single base colour, and
its variant shades and tones, we
minimised the use of multiple
colours that require more ink, with
potential wastage.
Our design this year balances
between a clever play of space,
creative design, and icons and
tighter leadings and margins for
text to reduce number of pages.

REDUCTIVISM

Where possible, we have avoided

and reduced the need for heavy
texts, fonts, and design elements
including photographs etc.
www.cimb.com