Rising to Meet the ChallengeBangkit Menyahut Cabaran

Laporan Tahunan 2007 Annual Report

Rasional Kulit Cover Rationale

It is said that the date palm has as many uses as there are days in a year.

The date palm, often associated with wholesomeness and purity, has its roots firmly embedded and entrenched. Able to grow in the harsh desert climate, its branches reaches skywards bringing about perpetual yields and returns. The fruit of the date palm, the sweet and succulent Date, plays a significant role in the breaking of fast during the holy month of Ramadhan. As it did for Prophet Muhammad (pbuh), the Date provided nutrition and sustenance.

Similarly BHB, an investment holding company of several pioneer Islamic financial institutions in Malaysia and Southeast Asia, has its history firmly entrenched in the Malaysian financial sphere. BHB has weathered challenges in recent years, but with a revitalised team and invigorated strategic plans, BHB will grow its businesses to bring about shareholder value and returns.

This year’s cover captures the universal quality, power and symbolism of the date palm and uses the imagery of the Date as a symbol of sustainability and resilience. The deliberate arrangement of the dates in the form of a rising sun signifies an optimistic future as BHB propels itself forward to meet the challenges ahead.

Kegunaan pohon kurma dikatakan sama banyaknya dengan bilangan hari dalam setahun.

Pohon kurma, yang sering dikaitkan dengan khasiat dan ketulenan, mempunyai akar yang terbenam kukuh di dalam tanah. Pohon ini mampu hidup dalam iklim gurun yang panas dan kering, dan dahannya yang tumbuh melangit memberikan hasil dan pulangan yang berlanjutan. Buah Kurma yang manis dan lazat memainkan peranan yang amat penting semasa umat Islam berbuka puasa pada bulan Ramadan yang mulia. Seperti yang telah dimanfaatkan oleh Nabi Muhammad S.A.W., buah Kurma memberikan khasiat pemakanan dan daya tahan anggota tubuh.

Begitu juga BHB, syarikat pemegangan pelaburan bagi beberapa institusi pelopor kewangan Islam di Malaysia dan di Asia Tenggara, mempunyai sejarah yang telah berakar umbi dalam dunia kewangan Malaysia. BHB telah menempuh pelbagai cabaran pada tahun-tahun kebelakangan ini, namun setelah memberikan nafas baru kepada warga kerjanya, dan merangka rancangan strategik yang lebih bertenaga, BHB akan mengembangkan perniagaannya untuk memberikan nilai dan pulangan kepada pemegang-pemegang saham.

Kulit laporan tahunan kali ini merakamkan kualiti, kekuatan dan simbol sejagat yang dilambangkan oleh pohon kurma, seterusnya menggunakan imej Kurma sebagai simbol ketahanan dan semangat yang tidak mudah luntur. Susunan buah kurma yang menyerupai matahari terbit melambangkan masa hadapan yang optimistik buat BHB yang memacu ke hadapan untuk menyahut cabaran yang akan datang.

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02 Perutusan Pengerusi Chairman’s Statement

14 Paparan Kewangan 5 Tahun Kumpulan 5-Year Financial Highlights of the Group

16 Kalendar Kewangan Financial Calendar

16 Harga Saham di Bursa Malaysia Share Prices on Bursa Malaysia

17 Struktur Korporat Kumpulan Group Corporate Structure

18 Sorotan Operasi Kumpulan Group Operational Highlights

22 Tanggungjawab Sosial Korporat Corporate Social Responsibility

28 Maklumat Korporat Corporate Information

29 Profil Pengarah Directors’ Profile

39 Ketua-ketua Pegawai Eksekutif dalam Kumpulan CEOs in the Group

40 Majlis Pengawasan Syariah Shariah Supervisory Council

42 Penyata Tadbir Urus Korporat Statement of Corporate

Governance

58 Penyata Kawalan Dalaman Statement on Internal Control

60 Maklumat Pematuhan Tambahan Additional Compliance

Information

68 Sorotan 2007 2007 Highlights

73 Penyata Kewangan Financial Statements

147 Harta Tanah Milik Kumpulan BHB Properties Owned by BHB Group

157 Statistik Pemegangan Saham Shareholdings Statistics

160 Rangkaian Kumpulan Serantau Regional Group Network

162 Notis Mesyuarat Agung Tahunan Kesepuluh Notice of the Tenth Annual

General Meeting

168 Penyata Mengiringi Notis Mesyuarat Agung Tahunan

Statement Accompanying Notice of Annual General Meeting

Borang Proksi Proxy Form

Kandungan Contents

BIMB Holdings Berhad (BHB) merupakan sebuah syarikat pemegangan pelaburan yang beroperasi berlandaskan prinsip Islam. Reputasi BHB yang berdasarkan amalan perniagaan yang beretika menarik pelabur dan pelanggan untuk berurusan dengannya. BHB diperbadankan di Malaysia pada 20 Mac 1997 dan disenaraikan di Papan Utama Bursa Saham Kuala Lumpur (kini Bursa Malaysia) pada 16 September tahun yang sama. Modal dibenarkan bagi BHB ialah RM2 bilion sementara modal berbayarnya pula ialah RM891,389,896.

Anak-anak syarikat teras Kumpulan BHB merupakan peneraju dalam pelbagai aktiviti perkhidmatan kewangan Islam termasuk perbankan, takaful, broker saham dan perkhidmatan berkaitan yang lain.

BIMB Holdings Berhad (BHB) is an investment holding company which operates along Islamic principles. It holds broad appeal for investors and customers because of its reputation for ethical practices. BHB was incorporated in Malaysia on 20 March 1997, and was listed on the Main Board of the Kuala Lumpur Stock Exchange (now Bursa Malaysia) on 16 September in the same year. The authorised capital of BHB is RM2 billion while its paid-up capital is RM891,389,896.

The core subsidiaries of the BHB Group are leaders in various Islamic financial service activities including banking, takaful, stockbroking, and other related services.

Profil Korporat Corporate Profile

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“ Saya, bagi pihak Lembaga Pengarah BIMB Holdings Berhad (BHB atau Kumpulan), dengan sukacitanya mengemukakan Laporan Tahunan dan Penyata Kewangan syarikat bagi tahun kewangan yang berakhir pada 30 Jun 2007.

On behalf of the Board of Directors of BIMB Holdings Berhad (BHB or the Group), I am pleased to present the Annual Report and Financial Statements for the financial year ended 30 June 2007. ”

Tan Sri Samsudin bin OsmanPengerusi | Chairman

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Perutusan PengerusiChairman’s Statement

DEAR SHAREHOlDERS,

The financial year ended 30 June 2007 (FY2007) was a period of consolidation and yet continued growth for the Group. BHB recorded a major turnaround in both revenue and profit growth. During the same period, BHB continued to implement its transformation programs such as enhancing Board effectiveness, strengthening directors’ capabilities, inculcating performance-driven culture and implementing its risk management framework. This is in addition to the efforts to strengthen the financial position of its Islamic banking and Takaful subsidiaries in the form of business re-engineering and corporate restructuring.

Moving forward, with Malaysia aggressively strengthening its leadership position in Islamic finance, the Group hopes to be at the forefront to capitalise on the country’s initiatives. Thus, the challenge for us at the Group level is to become a global leader in particular as the point of reference or source of guidance among customers, other banks and supervisory authorities.

Indeed, the Group, through its various subsidiaries, is well positioned to take advantage of the many incentives and tax breaks that Malaysia offers in order to develop the country into a global Islamic financial hub.

The Malaysian International Islamic Financial Centre (MIFC), launched in August 2006 by the Government, has paved the way for the development of a comprehensive Islamic financial services industry (IFSI), with incentives given in order to become the centre for origination, distribution and trading of Islamic capital market and treasury instruments; for Islamic fund and wealth management services; for international currency Islamic financial services including deposits and financing; for Takaful and re-Takaful as well as for Islamic finance education, training, consultancy and research.

Efforts to promote the IFSI in Malaysia were further enhanced in the Budget 2007 where any Islamic banks or Takaful operators which conduct foreign currency business, as well as local and foreign fund managers who manage Islamic funds for foreign portfolio investors were granted a 10-year full tax exemption. In addition, there is a 20% stamp duty exemption on instruments related to Islamic financing.

Tan Sri Samsudin bin OsmanPengerusi | Chairman

PEMEGANG SAHAM YANG DIkASIHI,

Meskipun tahun kewangan yang berakhir pada 30 Jun 2007 (TK2007) merupakan tempoh konsolidasi, namun Kumpulan terus mempamerkan pertumbuhan. BHB mencatat pemulihan yang ketara dalam pertumbuhan hasil dan keuntungan. Pada tempoh yang sama, BHB meneruskan pelaksanaan program transformasinya seperti mempertingkatkan kecekapan Lembaga, memperkukuh keupayaan pengarah, menyemai budaya yang didorong oleh prestasi dan pelaksanaan rangka kerja pengurusan risikonya. Ini merupakan tambahan kepada usaha memperkukuh kedudukan kewangan anak-anak syarikat perbankan Islam dan Takaful dari segi rekayasa semula (re-engineering) perniagaan dan penstrukturan semula syarikat.

Melangkah ke hadapan, Kumpulan berhasrat untuk berada di barisan hadapan dalam kewangan Islam dengan mengambil kesempatan atas inisiatif Malaysia yang gigih berusaha memperkukuh kedudukannya sebagai peneraju kewangan Islam. Dengan demikian, cabaran kita di peringkat Kumpulan adalah untuk menjadi pemimpin global terutamanya sebagai titik rujukan atau sumber bimbingan dalam kalangan pelanggan, bank-bank lain dan pihak berkuasa pengawalseliaan.

Sesungguhnya, Kumpulan berada pada kedudukan yang baik untuk mengambil kesempatan atas pelbagai insentif dan pelepasan cukai yang ditawarkan untuk menjadikan Malaysia hab kewangan Islam global. Ini dapat dilakukan menerusi pelbagai anak syarikatnya.

Pusat Kewangan Islam Antarabangsa Malaysia (MIFC) yang dilancarkan Kerajaan pada bulan Ogos 2006 telah mengorak langkah demi pembangunan industri perkhidmatan kewangan Islam (IFSI) yang komprehensif. MIFC diberikan insentif untuk menjadi pusat pengasalan, pengagihan dan perdagangan pasaran modal Islam serta instrumen perbendaharaan, dan menjadi pusat bagi dana Islam dan perkhidmatan pengurusan kekayaan. Di samping itu MIFC juga menjadi pusat bagi perkhidmatan kewangan mata wang antarabangsa Islam termasuk deposit dan pembiayaan; sebagai pusat bagi Takaful dan Takaful Semula; dan juga pusat bagi pendidikan, latihan, pakar runding dan penyelidikan kewangan Islam.

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Perutusan Pengerusi

Di Malaysia, usaha untuk menggalakkan IFSI terus dipertingkatkan dalam Bajet 2007 dengan pemberian pengecualian cukai sepenuhnya selama 10 tahun kepada mana-mana bank Islam atau pengendali Takaful yang mengendalikan perniagaan mata wang asing, dan juga pengurus dana tempatan dan asing yang mengurus dana Islam bagi pelabur portfolio asing. Selain itu, tambahan pengecualian duti setem sebanyak 20% atas instrumen berkaitan dengan pembiayaan Islam juga diberikan.

Berlatarbelakangkan ini, kami yakin dengan pertumbuhan masa depan Kumpulan pada tahun-tahun yang mendatang.

PRESTASI kEwANGAN

Prestasi Kumpulan kembali pulih pada TK2007 dengan mencatat keuntungan sebelum zakat dan cukai (USZC) sebanyak RM928.87 juta, termasuk keuntungan luar biasa sebanyak RM631.50 juta, selepas mencatat kerugian sebelum zakat dan cukai (RSZC) sebanyak RM1.18 bilion setahun yang lalu. Keuntungan luar biasa ini timbul daripada pencairan pemegangan saham Kumpulan dalam Bank Islam Malaysia Berhad (Bank Islam atau Bank). Peningkatan ini terhasil daripada strategi yang diambil oleh Kumpulan, terutamanya pemulihan dalam prestasi kewangan Bank Islam.

Kemasukan dua (2) pelabur strategik, iaitu Dubai Investment Group (DIG) dan Lembaga Tabung Haji (LTH) ke dalam Bank Islam pada bulan Oktober 2006 merupakan faktor yang paling ketara. Ini berikutan suntikan modal tambahan baru sebanyak RM1.14 bilion ke dalam Bank Islam. Hubungan strategik dengan kedua-dua pihak ini merupakan pendorong kepada pemulihan Bank Islam, yang menyumbang kepada peningkatan yang ketara dalam struktur modal Bank Islam dan seterusnya kepada kedudukan kewangan Kumpulan.

Dengan suntikan modal baru ini, kepentingan Kumpulan dalam Bank Islam mengecil daripada 100% kepada 51%, Kumpulan masih mencatat keuntungan sebanyak RM631.50 juta. Ini mencakup 68% daripada USZC Kumpulan sebanyak RM928.87 juta. Selain daripada Bank Islam yang menyumbang 28% atau kira-kira RM255.50 juta kepada USZC Kumpulan, 2% lagi datangnya daripada Syarikat Takaful Malaysia Berhad (STMB), 1% daripada BIMB Securities Sdn Bhd (BIMBSEC) dan 2% daripada perniagaan pemajakan Kumpulan.

SOROTAN OPERASI

Perbankan

Bagi TK2007, Bank Islam dan anak-anak syarikatnya kembali mencatat keuntungan dengan USZC tertinggi sebanyak RM255.50 juta di peringkat bank (berbanding dengan kerugian sebanyak RM1.28 bilion pada tahun kewangan sebelumnya) dan RM230.80 juta di peringkat yang disatukan. Ini merupakan jumlah tertinggi yang diperoleh semenjak penubuhannya. Bank Islam juga mencatat peningkatan jumlah pendapatan sebanyak 9% daripada pelaburan dana pendeposit dan pemegang saham, iaitu daripada RM948.90 juta pada TK2006 kepada RM1.03 bilion pada TK2007. Pada tempoh yang sama, jumlah aset Bank Islam meningkat 30.9% daripada RM14.60 bilion pada TK2006 kepada RM19.09 bilion pada TK2007.

Penyempurnaan usaha permodalan semula pada 16 Oktober 2006 telah mengubah dengan ketara struktur pemegangan saham di Bank Islam. Pascasuntikan modal baru oleh DIG dan LTH berjumlah RM1.01 bilion mengakibatkan BHB memegang hanya 51% saham dalam Bank Islam, sementara DIG dan LTH telah muncul sebagai pemegang saham lain dengan pegangan masing-masing sebanyak 40% dan 9%.

Prestasi yang memberangsangkan ini mungkin disebabkan oleh pelaksanaan yang agresif lima komponen Pelan Pemulihan yang diperkenalkan pada bulan September 2006, iaitu:

• Penstrukturan Semula Permodalan dan Kunci Kira-Kira• Pembaharuan Infrastruktur Teknologi Maklumat (IT)• Program Transformasi, iaitu Penyusunan Semula

Lembaga, Penjenamaan Semula Korporat, Perasionalan dan Pemodelan Semula Cawangan

• Usaha Perasionalan Kos• Pembangunan Modal Insan

Sebagai sebahagian daripada Program Transformasinya, Bank Islam mempamerkan imej korporatnya yang baru pada 21 Ogos 2007. Selain harus memberi respons atas cabaran industri perbankan Islam yang pesat berkembang di dalam dan di luar negara, usaha penjenamaan semula ini juga bertujuan mengubah cara berfikir dan budaya kerja kakitangan. Skop usaha penjenamaan semula Bank Islam melangkaui perubahan fizikal, kerana penjenamaan semula merangkumi penyediaan perkhidmatan nilai ditambah kepada pelanggannya.

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Chairman’s Statement

Against this backdrop, we are optimistic about the future growth of the Group in the years ahead.

FINANCIAl PERFORMANCE

The Group returned to the black in FY2007 with a PBZT of RM928.87 million, inclusive of an exceptional gain of RM631.50 million, against a loss before zakat and taxation (LBZT) of RM1.18 billion a year ago. The exceptional gain arose from the the dilution of the Group’s shareholding in Bank Islam Malaysia Berhad (Bank Islam or the Bank). The improvement was the result of strategies adopted by the Group, especially the turnaround in Bank Islam’s financial performance.

The most significant was the introduction of two (2) strategic investors namely Dubai Investment Group (DIG) and Lembaga Tabung Haji (LTH) to Bank Islam in October 2006, with injection of fresh additional capital of RM1.14 billion in Bank Islam. This strategic tie-up with both parties was instrumental in turning around Bank Islam, contributing to the considerable improvement in Bank Islam’s capital structure and hence, the Group’s financial standing.

As a result of the fresh capital injection, the Group’s interest in Bank Islam was diluted to 51% from 100%, of which a gain of RM631.50 million was recognized at the Group level, which accounted for 68% of the Group’s PBZT of RM928.87 million. While Bank Islam contributed 28% or about RM255.50 million to the Group’s PBZT, 2% came from Syarikat Takaful Malaysia Berhad (STMB), 1% from BIMB Securities Sdn Bhd (BIMBSEC) and 2% from the Group’s leasing business.

OPERATIONAl HIGHlIGHTS

Banking

For FY2007, Bank Islam and its subsidiaries returned to profitability with a record profit before zakat and taxation (PBZT) of RM255.50 million at the bank level (against a loss of RM1.28 billion in the previous financial year) and RM230.80 million at the consolidated level in the FY2007, the highest since its inception. Bank Islam also registered a 9% increase in total income from investments of depositors’ and shareholders’ funds to RM1.03 billion from RM948.90 million in FY2006. During the same period, total assets of Bank Islam increased by 30.9% to RM19.09 billion from RM14.60 billion.

The completion of the recapitalisation exercise on 16 October 2006 has significantly changed the shareholding structure at Bank Islam. Post-injection of fresh capital amounting to RM1.01 billion by DIG and LTH, BHB now holds only a 51% stake in Bank Islam as DIG and LTH emerged as the other shareholders with a 40% and 9% stake respectively.

This remarkable performance can be attributed to the aggressive implementation of the five components of the Turnaround Plan, introduced in September 2006, namely:

• Recapitalisation and Balance Sheet Restructuring• Information Technology (IT) Infrastructure Revamp• Transformation Program i.e. Board Reorganisation,

Corporate Re-branding, Branch Rationalisation and Remodeling

• Cost Rationalisation Exercise• Human Capital Development

As part of the Transformation Program, Bank Islam unveiled its new corporate image on 21 August 2007. Apart from responding to the increasing challenges of a fast expanding Islamic banking industry domestically and abroad, the re-branding exercise also aims to change the mindset and working culture of the staff. The scope of Bank Islam’s re-branding exercise goes beyond the physical change, as it encompasses providing value-added services to its customers.

The Bank has also invested heavily in technology in order to support its service efficiency and delivery system while enhancing its products and services. This involves changes in the core banking and branch delivery systems, which are aimed at reducing the turnaround time and enabling hassle-free transactions.

Apart from technology, the investment in human capital has been instrumental in increasing productivity and developing a pool of talents (between June-October 2007, Bank Islam’s staff were sent to a total of more than 130 training programs locally and abroad).

Bank Islam has also embarked on strategic partnerships such as with European Islamic Investment Bank (EIIB), primarily for product development and innovation as well as to expand market reach by capitalizing on each others’ strengths. This is in line with Bank Islam’s target to diversify its sources of income in particular through fee-based products and services, mainly in treasury and capital market-related activities.

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Perutusan Pengerusi

Bank juga telah membuat pelaburan yang besar dalam teknologi bagi meningkatkan kecekapan perkhidmatan dan sistem penghantaran, selain menambah baik perkhidmatan dan produk. Ini melibatkan perubahan dalam sistem perbankan teras dan sistem penghantaran cawangan yang bertujuan mengurangkan masa pusing balik dan membolehkan urus niaga dijalankan tanpa gangguan.

Selain daripada teknologi, pelaburan dalam modal insan menjadi pendorong kepada peningkatan produktiviti dan pembangunan sekumpulan bakat (antara Jun-Oktober 2007, lebih daripada 130 program latihan telah dihadiri oleh kakitangan Bank Islam sama ada di dalam atau di luar negara).

Bank Islam juga telah memulakan perkongsian strategik dengan European Islamic Investment Bank (EIIB), khusus untuk pembangunan produk dan inovasi, dan juga untuk meningkatkan jangkauan pasaran dengan memanfaatkan kekuatan masing-masing. Ini selaras dengan sasaran Bank Islam untuk mempelbagaikan sumber pendapatan, khususnya melalui perkhidmatan dan produk berasaskan fi, terutamanya dalam aktiviti yang berkaitan dengan perbendaharaan dan pasaran modal.

Melangkah ke hadapan, Bank Islam harus menempuh cabaran yang berkaitan dengan persekitaran operasi yang benar-benar bersaing untuk menghasilkan momentum pertumbuhan keuntungan kukuh yang mampan. Ini dapat menarik dan mengekalkan bakat, di samping memastikan khidmat pelanggan yang memuaskan, dan seterusnya membawa Bank Islam ke tahap yang lebih tinggi.

Takaful dan Takaful Semula

Sepanjang TK2007, cabang Takaful kami, yang sahamnya sebanyak 67.9% dipegang oleh Kumpulan, telah mengharungi proses transformasi dari segi sistem, kakitangan dan operasi; dengan tumpuan pada penyusunan semula ahli Lembaga Pengarah dan merombak pengurusannya. Lebih khusus lagi, STMB cuba membentuk pasukan pengurusan pertengahan dalam pelbagai bidang seperti operasi, teknologi maklumat, kewangan dan aktuari bagi mendapatkan semula kedudukannya dalam pasaran Takaful tempatan.

STMB juga telah mengambil langkah-langkah yang konstruktif dalam menangani isu kritikal yang berkaitan dengan IT bagi memperkukuh operasinya. Bagi tujuan ini, STMB telah melabur dalam satu sistem baru untuk meningkatkan kecekapan operasi perniagaannya dan memudahkan pelaksanaan rangka kerja modal berdasarkan risiko.

Bagi mengatasi kelemahan operasi yang terdahulu, ahli Lembaga Pengarah, pengurusan dan kakitangan STMB menjalankan usaha bersepadu untuk menyelesaikan isu kritikal lain yang berkaitan dengan perkara-perkara yang masih tertangguh.

Selaras dengan komitmen untuk meningkatkan kemahiran dan pengetahuan teknikal kakitangannya, STMB telah memperuntukkan lebih RM1 juta untuk tujuan latihan. Pencarian bagi mendapatkan bakat-bakat baru terus menjadi salah satu objektif pembangunan modal insan STMB yang utama. Ini bertujuan untuk menaikkan taraf inovasi produk dan meningkatkan keupayaan perkhidmatannya.

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Moving forward, Bank Islam has to deal with challenges associated with the highly competitive operating environment such as to deliver a sustainable momentum of strong profit growth, to attract and retain talents and to ensure good customer service in order to take Bank Islam to a higher level.

Takaful and Retakaful

During the FY2007, our Takaful arm, in which the Group holds a 67.9% stake, went through a transformation process in terms of systems, people and operations, focusing on reorganizing its Board membership and the revamp of its management. In particular, STMB sought to build up its middle management team in various areas such as operations, information technology, finance and actuary in order to regain its pole position in the domestic Takaful market.

STMB has also taken constructive steps in addressing the critical IT-related issue in order to strengthen its operations. For this purpose, STMB invested in a new system to enhance the efficiency of its business operations and to facilitate the implementation of its risk-based capital framework.

To overcome the legacy operational weaknesses, members of the Board, the management and staff of STMB took concerted efforts to resolve another critical issue related to un-reconciled items.

In line with its commitment to upgrade the skills and technical knowledge of its staff, STMB has allocated over RM1 million for training purposes. Securing new talents has remained one of its major human capital development objectives in order to step up product innovation and enhance its service capabilities.

STMB recorded a growth in its balance sheet size with a 10% increase in total assets to RM3.481 billion from RM3.165 billion in the preceding year. At the company level, total assets improved by 10.3% while its subsidiary PT Syarikat Takaful Indonesia recorded 28% growth in total assets and a net profit of RM2.4 million. Asean Retakaful International (L) Ltd, another subsidiary of STMB, recorded a lower net profit of RM5.8 million, compared to RM6.9 million in the previous year. Total equity of STMB as a whole increased by 6% to RM335.3 million as at 30 June 2007 from RM315.6 million the previous year.

Moving forward, STMB is set to diversify its stable of products with the introduction of a hybrid Mudharabah-Wakalah concept. For the next two years, STMB hopes to strengthen the contribution from the Malaysian market especially the retail business by optimising its existing 122 branches and by tapping opportunities from the Group’s synergies through cross-selling activities such as bancaTakaful. STMB is also considering business tie-ups with major foreign insurers.

Chairman’s Statement

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Perutusan Pengerusi

STMB mencatatkan pertumbuhan dalam saiz kunci kira-kiranya dengan peningkatan sebanyak 10% dalam jumlah aset kepada RM3.481 bilion dari RM3.165 bilion pada tahun sebelumnya. Di peringkat syarikat, jumlah asset meningkat sebanyak 10.3% manakala bagi PT Syarikat Takaful Indonesia, sebuah subsidiari syarikat mencatatkan pertumbuhan aset sebanyak 28% dan keuntungan bersih berjumlah RM2.4 juta. Asean Retakaful International (L) Ltd, sebuah lagi subsidiari STMB, mencatatkan keuntungan bersih yang lebih rendah berjumlah RM5.8 juta berbanding RM6.9 juta pada tahun sebelumnya. Jumlah keseluruhan ekuiti STMB meningkat sebanyak 6% kepada RM335.3 juta setakat 30 Jun 2007 dari RM315.6 juta pada tahun sebelumnya.

Melangkah ke hadapan, STMB kini bersedia untuk mempelbagaikan kumpulan produknya dengan pengenalan konsep gabungan Mudharabah-Wakalah. Untuk dua tahun yang akan datang, STMB berhasrat memperkukuh sumbangan daripada pasaran Malaysia terutamanya perniagaan secara runcit dengan mengoptimumkan keupayaan 122 cawangan yang sedia ada dan mencari peluang daripada sinergi Kumpulan melalui aktiviti jualan silang seperti bancaTakaful. STMB juga sedang mempertimbangkan kerjasama perniagaan dengan penanggung insurans asing yang utama.

STMB mendapat penghormatan dengan menjadi pengendali Takaful pertama dianugerahkan “Penarafan Kualiti Syariah AA” oleh Bahrain-based Islamic International Rating Agency (IIRA) pada bulan Mei 2007. Penarafan ini memberikan pengiktirafan

ke atas semua usaha STMB yang akan membantu meningkatkan kredibilitinya sebagai peneraju pengendali perkhidmatan insurans yang patuh Syariah.

Unit Operasi lain

Kumpulan BIMBSEC mencatat USZC sebanyak RM5.46 juta pada TK2007, menunjukkan peningkatan sebanyak 56% berbanding dengan USZC sebanyak RM3.51 juta pada tahun kewangan sebelumnya. Peningkatan ini disebabkan terutamanya oleh masuk kira semula elaun yang lebih tinggi bagi penyusutan nilai pelaburan.

Pada perspektif persekitaran operasi yang sihat, kemasukan broker saham asing dan pengoperasian bank pelaburan terus meningkatkan persaingan di kalangan syarikat perniagaan broker saham yang sedia ada.

Meskipun terdapat persekitaran yang kompetitif, cabang broker saham kami yakin dengan pengukuhan perniagaan runcit dan institusi. Pengembangan pasukan urus niaga dan usaha pemasaran yang agresif di kalangan pelanggan runcit dan institusi akan membantu meningkatkan bahagian pasaran BIMBSEC dari segi jumlah dan nilai urus niaga.

Bagi TK2007, Syarikat Al-Ijarah Sdn Bhd mencatat USZC sebanyak RM17.91 juta. Sementara itu, anak syarikat modal teroka kami iaitu, BIMB Venture Capital Sdn Bhd mencatat USZC yang kecil. Walaupun sumbangan kedua-dua syarikat

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STMB earned a feather in its cap by becoming the first Takaful operator to be conferred the “AA Syariah Quality Rating” by the Bahrain-based Islamic International Rating Agency (IIRA) in May 2007. This rating marks the recognition of all STMB’s efforts, which should help enhance its credibility as a leading operator of Shari’ah compliant insurance services.

Other Operating Units

The BIMBSEC Group recorded a PBZT of RM5.46 million for FY2007, reflecting an increase of 56% as compared to the PBZT of RM3.51 million in the previous financial year. This increase was mainly due to the higher write back of allowance for diminution in value of investments.

Operating environment-wise, the entry of foreign stockbrokers and the operationalisation of investment banks have further intensified competition amongst existing players in the stockbroking business.

Notwithstanding the competitive environment, our stockbroking arm is optimistic about strengthening its retail and institutional businesses. The continued expansion of the dealing team and aggressive marketing efforts among both retail and institutional clients should help increase the market share of BIMBSEC in terms of trading volumes and values.

Chairman’s Statement

For the FY2007, Syarikat Al-Ijarah Sdn Bhd chalked up a PBZT of RM17.91 million while our venture capital subsidiary, BIMB Venture Capital Sdn Bhd posted a marginal PBZT. Although both are not yet significant contributors, the Board is of the view that these two units have considerable potential to grow given the Government’s new emphasis to accelerate development of non-banking segments of the IFSI in particular Islamic fund management, Islamic stockbroking and Takaful.

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Perutusan Pengerusi

ini masih kecil, Lembaga Pengarah berpendapat bahawa kedua-dua unit ini mempunyai potensi yang besar untuk berkembang, memandangkan tumpuan baru Kerajaan untuk mempercepat pembangunan segmen IFSI bukan bank, khususnya pengurusan dana Islam, broker saham Islam dan Takaful.

Dividen

Kumpulan amat menghargai sokongan dan kesetiaan yang ditunjukkan oleh pemegang saham kita. Bagi menghargai mereka, Lembaga Pengarah mencadangkan dividen yang pertama dan akhir sebanyak 2% ditolak cukai 26%. Ini melibatkan keseluruhan pembayaran sebanyak RM13.19 juta.

PROSPEk DAN PERANCANGAN MASA DEPAN

Ekonomi Malaysia dijangka mencatat pertumbuhan yang memberangsangkan pada tahun 2007, iaitu dalam lingkungan 6% untuk tahun ketiga berturut-turut. Permintaan domestik akan terus menjadi pemacu pertumbuhan yang utama, khususnya berikutan kepesatan projek dan pelaburan swasta di bawah Rancangan Malaysia Kesembilan (RMK-9), perbelanjaan isi rumah yang mantap dan sokongan daripada sektor awam. Permintaan domestik yang pesat sedikit sebanyak membantu mengurangkan kesan kelembapan eksport. Ini disebabkan terutamanya oleh kemerosotan ekonomi Amerika Syarikat (AS) dan kelembapan permintaan global terhadap produk elektronik

dan elektrik. Walau bagaimanapun, sistem kewangan Malaysia yang semakin kukuh, mudah tunai yang tinggi dan hutang luar negeri yang secara relatifnya rendah akan membantu meningkatkan daya tahan Malaysia dalam menghadapi kesan kontagion daripada kesan sampingan subprima AS. Meskipun Bank Negara Malaysia dijangka mengekalkan kadar dasar semalamannya pada 3.5% sepanjang tahun 2007, perubahan kadar itu pada masa depan cenderung untuk meningkat kerana tekanan inflasi yang bertambah berpunca daripada kenaikan harga komoditi dan makanan global.

Berlatarbelakangkan ini, sektor kewangan secara keseluruhannya dan IFSI secara khususnya akan mendapat manfaat daripada jangkaan peningkatan dalam aktiviti ekonomi. Insentif yang ditawarkan dan bidang khusus yang dikenal pasti di bawah MIFC akan melengkapi insentif yang sedia ada dan usaha yang diambil untuk menjadikan Malaysia sebagai pusat kewangan Islam antarabangsa.

Natijahnya, Bank Islam yang semakin kukuh berikutan kejayaannya melaksanakan Pelan Pemulihan yang diperkenalkan pada awal TK2007, telah mengatur pelbagai strategi perniagaan dan operasi untuk terus memantapkan kedudukannya bagi mengekalkan pertumbuhan yang mampan pada tahun-tahun yang mendatang. Dengan beroperasi dalam rejim pemantauan risiko yang teliti dan kawalan kredit yang lebih ketat, portfolio aset Bank Islam beransur-ansur meningkat. Pada masa yang sama, Bank Islam berpegang teguh pada keperluan yang ketat bagi memperoleh aset pembiayaan yang berkualiti.

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Dividends

The Group is deeply appreciative of the support and loyalty shown to us by our shareholders. In acknowledgement of this, the Board of Directors is recommending a first and final dividend of 2% less 26% taxation. This involves a total payment of RM13.19 million.

PROSPECTS AND FUTURE PlANS

For the third year in a row, the Malaysian economy is anticipated to register a healthy growth in the vicinity of 6% in 2007. Domestic demand will continue to serve as the main growth driver in particular on the back of the acceleration of projects and private investments under the Ninth Malaysian Plan (9MP), robust household spending and supportive public sector. Vigorous domestic demand should help cushion to a certain extent, sluggish exports due largely to a US slowdown and subdued global demand for electronics and electrical products. Nonetheless, Malaysia’s stronger financial system, high liquidity and relatively low external debt should help enhance its resilience in the face of the contagion effects from the US sub-prime fallout. Although BNM is expected to keep its overnight policy rate at 3.5% throughout 2007, the next rate move could be up in view of the increasing inflationary pressures stemming from the rising global commodity and food prices.

Against this backdrop, the financial sector as a whole and the IFSI in particular stand to benefit from the expected increase in economic activities. Incentives offered and focus areas identified under the MIFC should complement the existing incentives and efforts undertaken to develop Malaysia into an international centre for Islamic finance.

Consequently, Bank Islam, being on a firmer footing following the successful implementation of its Turnaround Plan introduced in the earlier part of the FY2007, has lined up a range of business and operational strategies to further strengthen its position for a sustainable growth in years to come. Operating on a regime of closer risk monitoring and tighter credit controls, Bank Islam is gradually improving its assets portfolio while at the same time adhering to stringent requirements in securing quality financing assets.

Chairman’s Statement

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Perutusan PengerusiChairman’s Statement

STMB’s customer-and-market-oriented approach is also aligned seamlessly with the increasing acceptance of and demand for Islamic financial products in the rapidly expanding Takaful segment. Owing also to the ethical, profit sharing, safe and low-risk nature of Islamic financial instruments, there is tremendous opportunity for STMB, a pioneer in the Malaysian Takaful market, to set its sights on expanding beyond Malaysian shores.

The Group strongly believes that both Bank Islam and STMB can capitalize on the premium that their brand carries and their wide base of loyal customers.

wORD OF THANkS

On behalf of the Board, I would like to take this opportunity to thank our shareholders. Allow me to express my deepest appreciation and gratitude for your patience, understanding and undivided support in the past financial year. I would also like to thank the regulators in particular Bank Negara Malaysia, Securities Commission and Bursa Malaysia Securities Berhad for their continuing guidance and support.

I must also thank fellow members of the Board, management and staff at all levels for their loyalty, dedication and commitment to the Group, and to our customers and business associates for their loyalty and strong support.

My deepest appreciation and gratitude to the Shari’ah Supervisory Council members for their valuable guidance and advice.

I would like to put on record our special thanks to YBhg Dato’ Noorazman bin A. Aziz for his contribution during his short stint at the helm of the Group. On this note, I wish him well in his future endeavours.

Last but not least, as we move towards realising our goals and aspirations, we are optimistic that our current efforts will yield positive results in the coming financial year. We must remain focused and committed to take the Group to greater heights, Insya-Allah.

Pendekatan STMB yang berorientasikan pelanggan dan pasaran juga sejajar dengan penerimaan dan permintaan yang meningkat terhadap produk kewangan Islam dalam segmen Takaful yang berkembang pesat. Etika, perkongsian untung, instrumen kewangan Islam yang bersifat selamat dan berisiko rendah, menawarkan peluang yang luas kepada STMB yang merupakan perintis pasaran Takaful Malaysia untuk bersiap sedia melebarkan sayapnya ke luar negara.

Kumpulan begitu yakin bahawa Bank Islam dan STMB mampu memanfaatkan namanya yang tersohor dan pelanggan setianya yang ramai.

SEkAlUNG PENGHARGAAN

Bagi pihak Lembaga, saya ingin mengambil kesempatan ini untuk merakamkan ucapan terima kasih kepada pemegang-pemegang saham kita. Izinkan saya meluahkan setinggi-tinggi penghargaan dan melahirkan rasa terhutang budi dengan kesabaran, timbang rasa dan sokongan anda yang tidak berbelah bagi pada tahun-tahun kewangan yang lalu. Saya juga ingin berterima kasih kepada pengawal selia khususnya Bank Negara Malaysia, Suruhanjaya Sekuriti dan Bursa Malaysia Securities Berhad atas bimbingan dan sokongan mereka yang berterusan.

Saya juga patut berterima kasih kepada ahli Lembaga, pengurusan dan kakitangan di semua peringkat, atas kesetiaan, dedikasi dan komitmen mereka kepada Kumpulan, dan kepada pelanggan serta rakan perniagaan atas kesetiaan dan sokongan padu mereka.

Penghargaan dan ucapan terima kasih yang tidak terhingga juga ditujukan kepada ahli Majlis Penasihat Syariah atas bimbingan dan nasihat mereka yang sangat bernilai.

Saya juga ingin merakamkan ucapan terima kasih khususnya kepada YBhg Dato’ Noorazman bin A. Aziz atas sumbangan beliau semasa berada dalam pucuk pimpinan Kumpulan, walaupun hanya seketika. Dalam kesempatan ini, saya mendoakan agar beliau sentiasa sukses dalam apa jua bidang yang beliau ceburi pada tahun-tahun yang mendatang.

Akhir sekali, semakin kita menuju ke arah merealisasikan matlamat dan aspirasi kita, keyakinan kita semakin menebal betapa usaha yang dilakukan sekarang ini akan membuahkan hasil yang diharapkan pada tahun kewangan yang akan datang. Kita harus terus fokus dan komited untuk membawa Kumpulan ke puncak yang lebih tinggi, Insya-Allah. TAN SRI SAMSUDIN OSMAN

Pengerusi | Chairman

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Pertumbuhan Mampan

Sustainable Growth

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Paparan Kewangan 5 Tahun Kumpulan 5-Year Financial Highlights of the Group

30 Jun | 30 June 2003 2004 2005 2006 2007 RM’000 RM’000 RM’000 RM’000 RM’000

Modal Saham 562,965 562,965 562,965 562,965 891,390Share Capital

Dana Pemegang Saham 1,533,014 1,581,922 1,086,537 (145,890) 1,013,681Shareholders’ Fund

Deposit daripada Pelanggan 12,422,128 11,809,842 13,238,227 14,148,593 17,388,633Deposits from Customers

Dana Takaful 1,577,795 1,941,564 2,172,424 2,445,551 2,611,779Takaful Funds

Pembiayaan Pelanggan 7,868,682 8,778,174 9,096,791 8,601,387 8,433,287Financing of Customers

Pelaburan 5,412,571 4,872,749 4,742,913 2,622,481 4,002,831Investments

Jumlah Aset 17,096,600 16,891,527 18,507,972 17,742,000 22,627,226Total Assets

Perolehan 808,506 866,639 1,087,432 1,115,953 1,882,985Revenue

(Kerugian)/Keuntungan Sebelum Zakat dan Cukai 155,521 118,476 (400,489) (1,177,939) 928,866(Loss)/Profit before Zakat and Taxation

(Kerugian)/Keuntungan Bersih 92,187 85,748 (456,851) (1,230,008) 799,322Net (Loss)/Profit

Dividen tolak Cukai 34,453 34,453 10,133 – 13,192Dividend less Taxation

Nisbah Pembiayaan kepada Deposit (%) 63.34 74.32 68.72 60.79 48.50Financing to Deposit Ratio (%)

Pembiayaan Tak Berbayar Bersih (%) 9.55 10.30 12.53 9.35 11.18Net Non-Performing Financing (%)

(Kerugian)/Perolehan sesaham (sen) 16.38 15.23 (81.15) (218.49) 99.29(Loss)/Earnings per share (sen)

Aset Ketara Bersih sesaham (RM) 2.72 2.81 1.93 (0.26) 1.14Net Tangible Assets per share (RM)

Dividen Kasar sesaham (%) 8.50 8.50 2.50 – 2.00Gross Dividend per share (%)

Dividen Bersih sesaham (%) 6.12 6.12 1.80 – 1.48Net Dividend per share (%)

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Dana Pemegang SahamShareholders’ Fund

Deposit daripada PelangganDeposits from Customers

RM

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03 04 05 06

(Kerugian)/Pendapatan sesaham (sen)(loss)/Earnings per share (sen)

Aset Ketara Bersih sesaham (RM)Net Tangible Assets per share (RM)

Dana TakafulTakaful Funds

(Kerugian)/Keuntungan Sebelum Zakat dan Cukai(loss)/Profit before Zakat and Taxation

Pembiayaan PelangganFinancing of Customers

Jumlah AsetTotal Assets

Paparan Kewangan 5 Tahun Kumpulan 5-Year Financial Highlights of the Group

07

1.53 1.

58

1.09

(0.1

5)

1.01

10.0

8.0

6.0

4.0

2.0

1.8

1.6

1.4

1.2

1.0

18.0

15.0

12.0

9.0

6.0

3.0RM

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11.8

0

13.2

4 17.3

9

14.1

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03 04 05 06 07

RM

Bili

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| R

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7.87 8.

78 9.10

8.438.60

03 04 05 06 07

21.0

18.0

15.0

12.0

9.0

6.0

3.0RM

Bili

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17.1

0

16.9

0

18.5

1

22.6

3

17.7

4

03 04 05 06 07

3.0

2.5

2.0

1.5

1.0

0.5RM

Bili

on

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M B

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1.58 1.

94 2.17

2.61

2.45

03 04 05 06 07

1000

800

600

400

200RM

juta

| R

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155.

52

118.

48

(400

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928.

87

(1,1

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03 04 05 06 07

100

80

60

40

20Sen

| S

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16.3

8

15.2

3

(81.

15)

99.2

9

(218

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03 04 05 06 07

4.0

3.0

2.0

1.0

RM

| R

M

2.72 2.81

1.93

1.14

(0.2

6)

03 04 05 06 07

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Kalendar Kewangan Financial Calendar

23 | 12 | 2006Suku pertama berakhir 30 September 2006 First quarter ended 30 September 2006

13 | 03 | 2007Suku kedua berakhir 31 Disember 2006 Second quarter ended 31 December 2006

02 | 06 | 2007Suku ketiga berakhir 31 Mac 2007 Third quarter ended 31 March 2007

31 | 10 | 2007Suku keempat berakhir 30 Jun 2007 Fourth quarter ended 30 June 2007

HARGA SAHAM DI BURSA MAlAYSIA | SHARE PRICES ON BURSA MAlAYSIA

2.0

1.9

1.8

1.7

1.6

1.5

1.4

1.3

1.2

1.1

1.0

Pada 31 Oktober 2007 | As at 31 October 2007

Tertinggi (RM) | Highest (RM) 1.93 Terendah (RM) | Lowest (RM) 1.08 Penutup (RM) | Closing (RM) 1.49

2003 2004 2005 2006 2007

1.34

1.62

1.08

1.29

1.49

1.72

1.72

1.01

1.08

1.73

1.88

1.72

1.93

1.08

1.76

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Struktur Korporat Kumpulan pada 30 Jun 2007

Group Corporate Structure as at 30 June 2007

* Syarikat Bersekutu / Associate Company

100% Syarikat Al-Ijarah Sdn Bhd

Takaful Takaful

Pembrokeran Stok & Saham Stock & Share Broking

Pengurusan Harta Property Management

Pegangan Pelaburan – Modal Teroka Investment Holdings – Venture Capital

lain-lain Others

Perbankan Banking

67.93% Syarikat Takaful Malaysia Berhad

100% BIMB Securities (Holdings) Sdn Bhd

63.09% ASEAN Retakaful International (L) Ltd

56.00% P.T. Syarikat Takaful Indonesia

51% BIMB Securities Sdn Bhd

100% BIMSEC Nominees (Asing) Sdn Bhd

100% BIMSEC Nominees (Tempatan) Sdn Bhd

100% BIMSEC Asset Management Sdn Bhd

100% BIMB Venture Capital Sdn Bhd

100% BIMB Musyarakah Satu Sdn Bhd

51% Pembiayaan Perumahan Nasional Sdn Bhd (Dorman | Dormant)

48% Islamic Banking & Finance Institute Malaysia Sdn Bhd *

51% Bank Islam Malaysia Berhad

100% Al-Wakalah Nominees (Tempatan) Sdn Bhd

100% BIMB Unit Trust Management Berhad

100% BIMB Foreign Currency Clearing Agency Sdn Bhd

100% BIMB Trust Ltd

100% BIMB Offshore Company Management Services Sdn Bhd

100% Bank Islam (L) Ltd (Dorman | Dormant)

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Sorotan Operasi Kumpulan

TINJAUAN kESElURUHAN kUMPUlAN

Sepanjang tahun kewangan dalam tempoh antara separuh kedua 2006 dengan separuh pertama 2007, ekonomi Malaysia meningkat 5.7%. Ini disokong oleh permintaan domestik yang berdaya tahan dan prestasi pertumbuhan yang memberangsangkan di Asia termasuk Jepun dan Eropah. Pelaksanaan segera projek-projek di bawah RMK-9 dan peningkatan ketibaan pelancong yang ketara bersempena Tahun Melawat Malaysia 2007 telah membantu memperteguh permintaan domestik.

Kumpulan yang mencatat RSZC sebanyak RM1.18 bilion setahun yang lalu berjaya pulih dengan mencatat USZC sebanyak RM928.87 juta pada TK2007. Ini berpunca daripada pelaksanaan beberapa strategi pemulihan yang penting, terutamanya penstrukturan semula cabang perbankannya, iaitu Bank Islam. Sepanjang tempoh yang sama, jumlah aset Kumpulan meningkat 27.6% daripada RM17.74 bilion pada TK2006 kepada RM22.63 bilion pada TK2007.

PERBANkAN

Bagi TK2007, Bank Islam mencatat USZC sebanyak RM255.50 juta disebabkan oleh hasil tertinggi yang diperoleh sebanyak RM1.03 bilion, selepas mencatat RSZC sebanyak RM1.28 bilion pada tahun sebelum ini. Ini merupakan keuntungan tertinggi yang pernah dicatat sepanjang kewujudannya sejak

24 tahun yang lalu . Hasilnya, Bank Islam mencapai pulangan ekuiti (ROE) sebanyak 24.5% dan pulangan aset (ROA) sebanyak 1.5%. Sementara itu, perolehan sesaham (EPS) kembali positif pada 17.41 berbanding dengan EPS yang negatif sebanyak 175.24 sen setahun yang lalu.

Penunjuk prestasi lain bagi Bank Islam juga meningkat. Jumlah aset melonjak 30.9% daripada RM14.60 bilion kepada RM19.09 bilion, sementara nisbah modal wajaran risiko (RWCR) kembali pulih daripada -2.84 setahun yang lalu kepada 12.69% pada TK2007.

Pemulihan yang ketara ini menandakan kejayaan pelaksanaan yang agresif lima komponen Pelan Pemulihan sejak bulan September 2006. Pelan ini meliputi perubahan untuk menjana perniagaan baru yang strategik dan program pemulihan pinjaman yang intensif untuk memacu pemulihan Bank. Cabaran pada tahun-tahun yang mendatang adalah untuk memastikan perolehan yang mampan dan lebih kukuh dalam persekitaran persaingan yang semakin sengit. Usaha penjenamaan semula Bank Islam memuncak dengan pelancaran imej korporatnya yang baru. Ini akan meletakkan semula kedudukan Bank Islam sebagai peneraju global dalam kewangan Islam, dengan memanfaatkan daya saingnya dan dengan mengambil kelebihan atas peluang yang sedia ada dan peluang baru berikutan usaha yang pesat untuk membangunkan Malaysia sebagai pusat kewangan Islam antarabangsa.

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Group Operational Highlights

GROUP OVERVIEw

During the financial year under review i.e. between the second half of 2006 and the first half of 2007, the Malaysian economy grew by 5.7%, supported by resilient domestic demand and commendable growth performance in Asia including Japan and Europe. Faster implementation of projects under the 9MP and the significant increase in tourist arrivals in conjunction with the Visit Malaysia Year 2007 have helped reinforce domestic demand.

The Group reversed the LBZT of RM1.18 billion a year ago to register a PBZT of RM928.87 million in FY2007 on the back of the implementation of several key turnaround strategies, primarily the restructuring of its banking arm, Bank Islam. During the same period, the Group’s total assets rose 27.6% to RM22.63 billion from RM17.74 billion in FY2006.

BANkING

For FY2007, Bank Islam recorded the highest profit ever over its 24 years of existence with a PBZT of RM255.50 million on account of an all-time high revenue of RM1.03 billion following a LBZT of RM1.28 billion a year ago. As a result, Bank Islam delivered a return on equity (ROE) of 24.5% and a return on asset (ROA) of 1.5% while its earnings per share (EPS) returned to the positive territory at 17.41 compared to a negative EPS of 175.24 sen a year ago.

Bank Islam’s other performance indicators also improved in tandem. Total assets surged 30.9% to RM19.09 billion from RM14.60 billion while its risk weighted capital ratio (RWCR) rose to 12.69% from -2.84% a year ago.

The remarkable recovery marks the success of the aggressive implementation of the five-component Turnaround Plan since September 2006. The Plan included the execution of strategic changes to grow new businesses and an intensive loan recovery programme to drive the Bank’s recovery. The challenge in the years to come will be to ensure stronger yet sustainable earnings in an environment of intensifying competition. The re-branding exercise of Bank Islam, which culminated in the launch of a new corporate image, will reposition Bank Islam in its quest to become a global leader, by harnessing its competitive edges and by taking advantage of existing and new opportunities arising from the accelerated efforts to develop Malaysia into an international Islamic financial centre.

TAkAFUl AND RETAkAFUl

STMB is Malaysia’s pioneer Takaful operator, with over 122 branches in Malaysia alone at present. For FY2007, STMB Group’s net profit stood at RM24.81 million, a 32.0% decline from RM36.49 million a year ago.

Despite the 10.4% rise in revenue to RM1.07 billion from RM969.14 million in the preceding financial year, STMB Group’s PBZT decreased by 40.4% to RM26.38 million for FY2007 at the consolidated level arising from lower surplus transfer from the General Fund and increases in total costs. The trend was similar at the company level as the 11.1% increase in revenue to RM926.11 million was not sufficient to prevent a 50.7% drop in STMB’s PBZT to RM17.49 million.

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Sorotan Operasi Kumpulan

STMB terus menjadi penyumbang utama kepada segmen Takaful Malaysia khususnya dan industri insurans amnya. Di bawah Pelan Induk Sektor Kewangan, segmen Takaful disasarkan untuk menguasai 20% bahagian pasaran industri insurans menjelang 2020. Pelaksanaan sistem IT yang baru dan komprehensif bagi menampung keperluan keseluruhan produk dan perkhidmatan akan mempercepat pembangunan dan inovasi produk Takaful yang baru. Di samping itu, pelaksanaan strategi baru bagi mendapatkan bakat penting mengikut kepentingan berdasarkan kemahiran dan kompetensi yang diperlukan, diharap dapat meningkatkan keseluruhan kecekapan dan produktiviti STMB.

BROkER SAHAM

Perolehan utama BIMB Securities Sdn Bhd (BIMBSEC) adalah dalam bentuk pendapatan fi pembrokeran daripada pasaran ekuiti. Kumpulan BIMBSEC mencatat USZC sebanyak RM5.46 juta bagi TK2007, iaitu peningkatan sebanyak 56% daripada RM3.51 juta pada TK2006. Di peringkat syarikat, USZC BIMBSEC sebanyak RM5.03 juta bagi TK2007 meningkat 37.4% berbanding dengan RM3.66 juta setahun yang lalu disebabkan oleh masuk kira semula elaun yang lebih tinggi bagi penyusutan nilai pelaburan. Meskipun landskap operasi semakin mencabar, BIMBSEC kekal optimistik dan bersemangat untuk memperkukuh sumbangan daripada perniagaan secara runcit atau keinstitusian. Cabang pembrokeran terus mengukuhkan barisan peniaganya dari segi jualan dan penyelidikan sementara mengatur langkah-langkah untuk memantau keberkesanan usaha pemasarannya dan menganjurkan strategi pembangunan perniagaan.

TAkAFUl DAN TAkAFUl SEMUlA

STMB ialah pengendali Takaful sulung di Malaysia. Di Malaysia sahaja, STMB sudah mempunyai lebih 120 cawangan. Bagi TK2007, keuntungan bersih Kumpulan STMB berada pada RM24.81 juta, iaitu penurunan sebanyak 32.0% daripada RM36.49 juta setahun yang lalu.

Meskipun hasil meningkat 10.4% daripada RM969.14 juta pada TK2006 kepada RM1.07 bilion pada TK2007, USZC Kumpulan STMB merosot 40.4% kepada RM26.38 juta untuk TK2007 pada tahap yang disatukan berikutan pindahan lebihan yang lebih rendah daripada Dana Am dan peningkatan dalam jumlah kos. Trend yang serupa ditunjukkan di peringkat syarikat memandangkan peningkatan sebanyak 11.1% dalam hasil kepada RM926.11 juta tidak mencukupi bagi menghalang kemerosotan USZC sebanyak 50.7% kepada RM17.49 juta.

Pindahan yang lebih rendah daripada Dana Am disebabkan oleh tuntutan kena dibayar yang lebih tinggi, peningkatan peruntukan hutang lapuk dan ragu dan juga kos yang meningkat. Peningkatan kos disebabkan oleh caj susut nilai dan hapus kira aset serta fi profesional kena dibayar yang bertambah bagi melicinkan pelaksanaan sistem IT yang baru.

USZC Kumpulan daripada P.T. Syarikat Takaful Indonesia (STI), iaitu anak syarikat Takaful Malaysia meningkat empat kali ganda kepada RM1.65 juta pada TK2007, berbanding sebanyak RM0.40 juta pada TK2006. USZC Asean Retakaful International (L) Ltd. (ARIL) sebanyak RM6.45 juta pada TK2007 turun 11.8% daripada RM7.31 juta setahun yang lalu disebabkan terutamanya oleh pindahan lebihan yang lebih rendah daripada Dana Takaful Semula Am.

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Besides, the implementation of the new strategy of mapping key talents according to the required skills and competencies is hoped will improve the overall efficiency and productivity of STMB.

STOCkBROkING

BIMB Securities Sdn Bhd (BIMBSEC) derives its earnings mainly in the form of brokerage fee income from the equity market. The BIMBSEC Group recorded a PBZT of RM5.46 million for FY2007, a 56% increase from RM3.51 million in the previous financial year. At the company level, BIMBSEC’s PBZT of RM5.03 million for FY2007 rose 37.4% compared to RM3.66 million a year ago due to the higher write back of allowance for diminution in value of investments. Despite the increasingly challenging operating landscape, BIMBSEC remains optimistic and looks forward to bolstering contribution from its retail and institutional businesses. The stockbroking arm continues to further bolster its dealing team in terms of sales and research whilst establishing measures to monitor the effectiveness of its marketing efforts and promote business development strategies.

The lower surplus transfer from the General Fund led by higher claims incurred, increased provisions for bad and doubtful debts as well as higher costs. The cost increases were due to higher depreciation charges and asset write-offs as well as increased professional fees incurred to facilitate the implementation of in the new IT systems.

The Group PBZT of P.T. Syarikat Takaful Indonesia (STI), a subsidiary of Takaful Malaysia quadrupled to RM1.65 million in the year under review as opposed to RM0.40 million in FY 2006. The PBZT of Asean Retakaful International (L) Ltd. (ARIL) to the tune of RM6.45 million in FY2007 fell 11.8% from RM7.31 million a year ago largely due to the lower surplus transfer from the General Retakaful Fund.

STMB continues to be a major contributor to the Malaysian Takaful segment in particular and insurance industry in general. Under the Financial Sector Master Plan, the Takaful segment is targeted to control 20% of the market share of the insurance industry by 2010. The implementation of a new and comprehensive IT system which caters to the needs of STMB’s entire range of products and services should enable a fast-tracked development and innovation of new Takaful products.

Group Operational Highlights

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Tanggungjawab Sosial Korporat

Misi kumpulan syarikat BHB adalah untuk menyediakan pelanggan pelbagai fahaman agama dengan produk kewangan yang berdaya maju dan patuh Syariah sebagai alternatif kepada produk kewangan konvensional. Produk BHB ini adalah bebas daripada riba. Dalam pengendalian perniagaan kumpulan syarikatnya, BHB menjalankan usaha yang berhemat untuk mendukung nilai-nilai murni ini sambil melaksanakan tanggungjawab dan kewajipan sosialnya.

Kumpulan syarikat BHB menaruh penuh kepercayaan terhadap amalan meyumbang kepada masyarakat, dan telah meletakkan tanggungjawab sosial korporat (TSK) sebagai antara kegiatan yang diberi keutamaan paling tinggi sejak BHB ditubuhkan pada tahun 1983. Sebagai syarikat pemegang pelaburan yang beroperasi berlandaskan prinsip Islam, BHB tetap komited dan akan meneruskan usaha untuk menunaikan tanggungjawab sosialnya ke arah memperkaya dan membangunkan masyarakat secara umumnya, insyaAllah.

BANk ISlAM

Sepanjang tahun kewangan 2007 ini, kira-kira RM1 juta zakat telah dikeluarkan dan diagihkan kepada golongan yang miskin dan serba kekurangan, seperti anak yatim, ibu tunggal, pelajar Malaysia di institusi pengajian tinggi awam dan swasta

(universiti tempatan dan antarabangsa), pertubuhan bukan berasaskan keuntungan dan pertubuhan amal.

Dana zakat juga disalurkan kepada program yang menyokong rawatan perubatan, pendidikan dan pembinaan masjid dan sekolah agama di seluruh negara.

Komitmen TSK Bank Islam juga merangkumi usaha merangsang pembangunan sosioekonomi dengan menggalakkan dan mempromosi pendidikan dan pengetahuan dalam kalangan remaja Malaysia. Sehubungan itu, sumbangan telah diberikan kepada peraduan “Reka Cipta, Reka Bentuk Inovasi UiTM”, dan juga kepada Anugerah Pelajar Terbaik di universiti-universiti tempatan.

Sebagai organisasi yang menyokong inisiatif Bank Negara Malaysia (BNM) dalam mendidik kanak-kanak mengenai perancangan kewangan, Bank Islam mengambil bahagian dalam “duit.saku.com” dan “Program Sekolah Angkat”. Kedua-dua program ini telah direka untuk membantu kanak-kanak sekolah memahami kepentingan merancang dan mengurus kewangan peribadi.

Sebagai sebahagian daripada inisiatif pendidikannya, Bank juga mengedarkan “Buku Wang Saku” dan “Buku Perancangan dan Penyata Kewangan Keluarga”, yang

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Corporate Social Responsibility

The mission of the BHB group of companies is to present to consumers of all faiths viable Shariah-based alternatives to conventional financial products. These products are free from usury (riba) and through the conduct and business operations of its group of companies, BHB makes a conscientious effort to uphold these ideals whilst implementing its social responsibility and obligations.

The BHB group of companies strongly believes in giving back to society, and it has placed corporate social responsibility (CSR) activities among its top priorities since its establishment in 1983. As an investment holding company operating along Islamic principles, it remains committed and will continue in its effort to fulfill its social responsibility towards the enrichment and development of the community at large, God willing.

BANk ISlAM

During the financial year under review, approximately RM1 million has been contributed to Zakat (tithes) and this have been widely distributed to the needy, which include orphanages, single mothers, Malaysian students in public and private institutions of higher learning (both local and international universities), non-profitable organizations and charitable organizations.

The zakat fund is also chanelled towards programmes that support medical treatments, education and building of mosques and religious schools throughout the country.

Bank Islam’s CSR commitment also extends to the promotion of social economic development, by encouraging and promoting education and knowledge among Malaysian youths. In view of this, contributions have been made to the “Invention, Innovation Design UiTM” competition, as well as the Universities’ Best Student Awards at the local universities.

Being an organisation in support of Bank Negara Malaysia’s (BNM) initiative towards educating children on financial planning, Bank Islam participated in “duit.saku.com” and a school adoption program called “Program Sekolah Angkat”. Both programs are designed to assist school children in understanding the importance of planning and managing personal finances.

As part of its education initiative, the Bank also distributed “Buku Wang Saku” and “Buku Perancangan dan Penyata Kewangan Keluarga”, published by BNM to students and parents of the adopted schools. Walk-in customers at the branches were also given this special book. In support of Khazanah Nasional Berhad under the GLC (Government Linked Companies) PINTAR programme, Bank Islam adopted four primary schools respectively in Pahang, Kelantan, Terengganu and Pulau Pinang. PINTAR is an education programme that encourages all GLCs to adopt a rural school to promote and increase the use of the English Language amongst its students. This program runs for three years and its adoption is in view of improving the educational achievements of school children.

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Tanggungjawab Sosial Korporat

diterbitkan oleh BNM untuk para pelajar sekolah angkat yang berkenaan dan ibu bapa mereka. Pelanggan yang mengunjungi cawangan bank juga diberi buku khas ini.

Sebagai menyokong Khazanah Nasional Berhad di bawah program PINTAR GLC (syarikat berkaitan kerajaan), Bank Islam telah mengambil empat (4) sekolah rendah di Pahang, Kelantan, Terengganu dan Pulau Pinang sebagai sekolah angkatnya. PINTAR ialah program pendidikan yang menggalakkan semua GLC mengambil sebuah sekolah di luar bandar sebagai sekolah angkat bagi tujuan mempromosi dan meningkatkan penggunaan Bahasa Inggeris dalam kalangan para pelajar di sekolah itu. Program ini telah dijalankan selama tiga tahun dan pengambilan sekolah angkat bertujuan untuk meningkatkan pencapaian pendidikan kanak-kanak sekolah.

Selain itu, Bank Islam juga bekerjasama dengan LTH, menjalankan program tahunan yang dikenali sebagai “Sahabat Korporat Tabung Haji”. Melalui kerjasama ini, Bank Islam menyumbang bantuan kewangan bagi memudahkan LTH semasa musim Haji.

Sebagai bank Islam yang pertama di negara ini, Bank Islam komited terhadap penyelidikan dan penyebaran pengetahuan dan maklumat mengenai perbankan Islam. Bank Islam terus menyebarkan pengetahuan tentang Perbankan Islam dengan menyokong program untuk siswazah yang menganggur, dengan kerjasama Dewan Amal Islam Hadhari dan Institut Perbankan dan Kewangan Islam Malaysia (IBFIM).

Melalui program ini, siswazah menganggur yang mengambil jurusan pengajian Islam diberi peluang menceburi bidang kerja profesional melalui latihan yang diberikan oleh IBFIM. Siswazah yang dipilih akan menjalani latihan sebelum ditempatkan dalam persekitaran amali di institusi perbankan Islam yang tertentu, termasuklah Bank Islam.

Selain itu, selaku perintis dalam bidang perbankan Islam, Bank Islam juga telah menyumbang ke arah pembangunan Pusat Pendidikan Kewangan Islam Antarabangsa (INCEIF). Khususnya, ini bertujuan untuk membangunkan kandungan sukatan pelajaran program dan menyediakan khidmat perundingan oleh kakitangan kanan Bank seterusnya berkongsi pengetahuan dan kepakaran mereka ke arah membangunkan industri ini.

STMB

Cabang takaful Kumpulan BHB, iaitu STMB, berdedikasi ke arah menunaikan tanggungjawab sosialnya sebagai warga korporat.

Bencana banjir yang melanda negeri Johor pada penghujung tahun 2006 telah menyaksikan seramai 120 sukarelawan dari STMB memberikan khidmat bakti mereka bagi membantu Kerajaan menjayakan kempen “Kampung Angkat”. STMB menyumbangkan tenaga dan khidmat lain kepada sebilangan besar keluarga di Kampung Parit Terus, Sri Medan dan kepada Masjid Parit Kasman.

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In addition, Bank Islam, in collaboration with LTH, undertakes a yearly program, called “Sahabat Korporat Tabung Haji”. Through this collaboration, Bank Islam contributes financial aid to facilitate LTH during the Hajj seasons.

As the nation’s first Islamic bank, Bank Islam is committed towards research and the dissemination of knowledge and information on Islamic banking. The bank continues to spread knowledge in Islamic Banking by supporting programs for unemployed graduates, collaborating with Dewan Amal Islam Hadhari and Islamic Banking and Finance Institute Malaysia (IBFIM).

Corporate Social Responsibility

Through this program, unemployed graduates majoring in Islamic studies are given the opportunity to venture into professional working environments via training provided by IBFIM. The selected graduates will undergo training prior to their placements in practical environments at selected Islamic banking institutions, including Bank Islam.

Apart from this, Bank Islam being the pioneer in Islamic banking has also contributed towards the development of the International Centre for Education in Islamic Finance (INCEIF), particularly in developing with the content of the programme syllabus and providing consultancy services by its senior staff, hence sharing its knowledge and expertise towards the development of the industry.

STMB

The takaful arm of the BHB Group, STMB, is dedicated towards discharging its social responsibility as a corporate citizen.

The flood disaster that hit Johor towards the end of 2006 witnessed a total number of 120 volunteers from STMB gear up in support of the Government’s “Adopt A Village” campaign. STMB pledged assistance in labour and kind to numerous families of Kampung Parit Terus, Sri Medan and to the Parit Kasman Mosque.

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Tanggungjawab Sosial KorporatCorporate Social Responsibility

STMB also supports the GLC PINTAR programme and has chosen Sekolah Permatang Binjai, Kepala Batas as its surrogate school. Among the major projects planned are to supply workbooks to students from Years 4, 5 and 6 and a pledge to financially assist them in increasing their education levels.

MOVING FORwARD

BHB Group’s commitment to society is a vital part of our corporate initiative. We will continue to look for new and effective ways to contribute to community related activities in our efforts to participate in the development of the Ummah. We aim to focus on improving structural, educational and spiritual circumstances of the community and ensure that we make a meaningful difference whilst growing with the community and helping them realise their potential.

STMB juga menyokong program PINTAR GLC dan telah memilih Sekolah Permatang Binjai, Kepala Batas sebagai sekolah angkatnya. Antara projek utama yang telah dirancang adalah untuk membekalkan buku kerja kepada pelajar Tahun 4, 5 dan 6 dan berjanji untuk menghulurkan bantuan kewangan dalam meningkatkan taraf pendidikan mereka.

MElANGkAH kE HADAPAN

Komitmen Kumpulan BHB kepada masyarakat merupakan komponen penting inisiatif korporat kami. Kami akan terus mengenal pasti kaedah baru yang berkesan bagi menyumbang usaha dengan kegiatan yang melibatkan masyarakat demi pembangunan Ummah. Kami berhasrat memberikan tumpuan terhadap penambahbaikan keadaan struktur, pendidikan dan kerohanian masyarakat. Kami juga ingin memastikan bahawa kami dapat membuat perubahan yang bermakna agar dapat membangun bersama-sama masyarakat dan membantu mencapai potensi mereka masing-masing.

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Penentuan Masa Depan

Defining the Future

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Maklumat KorporatCorporate Information

lEMBAGA PENGARAH BOARD OF DIRECTORS

Tan Sri Samsudin bin Osman(Dilantik pada 1 Februari 2007 Appointed on 1 February 2007)

Dato’ Noorazman bin A. Aziz(Meletak jawatan pada 31 Oktober 2007 Resigned w.e.f 31 October 2007)

Dato’ Dr Abdul Halim bin Ismail

Dato’ Mohd Bakke bin Salleh

Encik Zahari @ Mohd Zin bin Idris

Datuk Burhanuddin bin Ahmad Tajudin

Encik Salih Amaran bin Jamiaan

Puan Zaiton binti Mohd Hassan

Datuk Ismee bin Ismail

Dato’ Hairuddin bin Mohamed

MAJlIS PENGAwASAN SYARIAH SHARIAH SUPERVISORY COUNCIl

Ustaz Mohd Bakir bin Haji Mansor

Dr Ahmad Shahbari @ Sobri bin Salamon

Dr Abdullah bin Haji Ibrahim

Dato’ Daud bin Muhammad

Dr Yusof bin Ramli

Dr Asmak binti Ab Rahman

Ustaz Nasrudin bin Yaakub(Setiausaha | Secretary)

JAwATANkUASA PENAMAAN DAN PENIlAIAN NOMINATION AND ASSESSMENT COMMITTEE

Pengerusi | ChairmanDato’ Mohd Bakke bin SallehPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Ahli-ahli | MembersEncik Zahari @ Mohd Zin bin IdrisPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Puan Zaiton binti Mohd HassanPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

JAwATANkUASA GANJARAN REMUNERATION COMMITTEE

Pengerusi | ChairmanDato’ Mohd Bakke bin SallehPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Ahli-ahli | MembersEncik Zahari @ Mohd Zin bin IdrisPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Puan Zaiton binti Mohd HassanPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

JAwATANkUASA kHAS lEMBAGAPENGARAHSPECIAl BOARD COMMITTEE

Pengerusi | ChairmanDato’ Hairuddin bin MohamedPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Ahli-ahli | MembersDatuk Burhanuddin bin Ahmad TajudinPengarah Bukan Eksekutif Tidak BebasNon-Independent Non-Executive Director

Encik Zahari @ Mohd Zin bin IdrisPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Dato’ Noorazman bin A. AzizPengarah Eksekutif Tidak BebasNon-Independent Executive Director

Dato’ Zukri bin SamatPengarah Urusan | Managing DirectorBank Islam Malaysia Berhad

JAwATANkUASA AUDIT DAN PEMERIkSAAN AUDIT AND ExAMINATION COMMITTEE

Pengerusi | ChairmanEncik Zahari @ Mohd Zin bin IdrisPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Ahli-ahli | MembersEncik Salih Amaran bin JamiaanPengarah Bukan Eksekutif Tidak BebasNon-Independent Non-Executive Director

Puan Zaiton binti Mohd HassanPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

kETUA-kETUA EkSEkUTIF DAlAM kUMPUlANCEOS IN THE GROUP

Dato’ Noorazman bin A. AzizPengarah Urusan KumpulanGroup Managing Director(Meletak jawatan pada 31 Oktober 2007 Resigned w.e.f 31 October 2007)

Dato’ Zukri bin Samat

Dato’ Mohamed Hassan bin Md kamil

Dato’ Idris bin Md Tahir

Encik Nor Idzam bin Ya’akub(Meletak jawatan pada 20 Oktober 2007 Resigned w.e.f 20 October 2007)

SETIAUSAHA SYARIkAT COMPANY SECRETARIES

Encik Saiful Nizam bin Yasin(LS 08955)

YM Tengku Maizura binti Tengku Ishak(LS 09202)

JURUAUDITAUDITORS

KPMG Desa Megat & Co (AF 0759)Wisma KPMGJalan DungunDamansara Heights50490 Kuala Lumpur

PEJABAT BERDAFTARREGISTERED OFFICE

Level 18,Menara Yayasan Tun Razak200 Jalan Bukit Bintang55100 Kuala LumpurTel: +603 2781 2999Fax: +603 2781 2998

PENDAFTAR SAHAMSHARE REGISTRAR

Symphony Share Registrars Sdn BhdLevel 26Menara Multi-PurposeCapital SquareNo 8, Jalan Munshi Abdullah50100 Kuala Lumpur

PENYENARAIAN BURSA SAHAM STOCk ExCHANGE lISTING

Papan Utama Bursa MalaysiaSecurities Berhad |Main Board of Bursa MalaysiaSecurities Berhad16 September 1997

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Tan Sri Samsudin bin OsmanPengerusi Bukan Eksekutif Tidak BebasNon-Independent Non-Executive Chairman

Sarjana Pentadbiran Awam, Pennsylvania State University (USA)Master in Public Administration, Pennsylvania State University (USA)

Tan Sri Samsudin, a Malaysian, aged 60 was appointed Chairman of BHB on 1 February 2007.

Tan Sri Samsudin has had an illustrious career with the Malaysian civil service having joined in 1969 as an Assistant Secretary in the Public Service Department. He rose through the ranks and held key positions amongst others as the Federal Secretary of Sabah from 1990 to 1994 and as the Secretary General, Ministry of Domestic Trade and Consumer Affairs from 1994 to 1996. He was the Secretary General, Ministry of Home Affairs from 1996 to 1998 and became the Director General of Public Service Department from 1998 to 2001. He was appointed the Chief Secretary to the Government of Malaysia until his retirement in 2006.

Tan Sri Samsudin is presently the President of Perbadanan Putrajaya. He is also the Chairman of the Employees Provident Fund (EPF) Board, EPF Investment Panel and University Utara Malaysia.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of LTH. He has not been convicted of any offence within the past ten (10) years.

He attended (3) out of (3) Board Meetings held in the financial year since his appointment.

Profil PengarahDirectors’ Profile

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Tan Sri Samsudin, warganegara Malaysia, berusia 60 tahun, dilantik sebagai Pengerusi BHB pada 1 Februari 2007.

Tan Sri Samsudin telah menjawat pelbagai jawatan penting dalam perkhidmatan awam Malaysia sejak tahun 1969 sebagai Penolong Setiausaha dalam Jabatan Perkhidmatan Awam. Beliau pernah memegang beberapa jawatan utama antaranya Setiausaha Persekutuan Negeri Sabah dari tahun 1990 hingga 1994 dan Ketua Setiausaha, Kementerian Perdagangan Dalam Negeri dan Hal Ehwal Pengguna dari tahun 1994 hingga 1996. Beliau merupakan Ketua Setiausaha, Kementerian Dalam Negeri dari tahun 1996 hingga 1998 dan seterusnya menjawat jawatan Ketua Setiausaha Jabatan Perkhidmatan Awam dari tahun 1998 hingga 2001. Beliau dilantik menjadi Ketua Setiausaha Negara sehingga beliau bersara pada tahun 2006.

Pada masa ini, Tan Sri Samsudin memegang jawatan Presiden Perbadanan Putrajaya. Beliau juga merupakan Pengerusi bagi Lembaga Kumpulan Wang Simpanan Pekerja (KWSP), Panel Pelaburan KWSP dan Universiti Utara Malaysia (UUM).

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB dan tidak mempunyai sebarang konflik kepentingan dengan BHB kecuali sebagai pengarah nomini LTH. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri (3) daripada (3) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan semenjak pelantikan beliau.

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Profil PengarahDirectors’ Profile

Dato’ Noorazman, a Malaysian, aged 51, was appointed to the Board on 1 April 2005. He resigned as Group Managing Director of BHB with effect from 31 October 2007. Prior to this he was the Managing Director of Bank Islam from April 2005 until June 2006.

He is currently a member of the STMB Board.

Dato’ Noorazman has over twenty (20) years experience in the international finance sector, banking and financial markets especially in treasury, investment, corporate banking and finance as well as offshore financing and capital markets.

From May 2001 until April 2003, Dato’ Noorazman was seconded to the Ministry of Finance as the Director General of Labuan Offshore Financial Services Authority. From July 2003 until May 2004, Dato’ Noorazman served tenure as the Chief Operating Officer of Bursa Malaysia. Thereafter, he joined Citigroup as the Managing Director and Head of Corporate Banking of Citibank Malaysia Berhad.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past ten (10) years.

He attended (11) out of (12) Board Meetings held in the financial year.

Dato’ Noorazman bin A. AzizPengarah Eksekutif Tidak BebasNon-Independent Executive Director(Meletak jawatan pada 31 Oktober 2007)(Resigned w.e.f 31 October 2007)

Sarjana Muda (Kewangan), Louisiana State University (USA)BSc (Finance), Louisiana State University (USA)

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Dato’ Noorazman, warganegara Malaysia, berusia 51 tahun, dilantik sebagai Pengarah pada 1 April 2005. Beliau melepaskan jawatan sebagai Pengarah Urusan Kumpulan BHB berkuatkuasa 31 Oktober 2007. Sebelum ini, beliau ialah Pengarah Urusan Bank Islam dari April 2005 hingga Jun 2006.

Beliau kini merupakan ahli Lembaga Pengarah STMB.

Dato’ Noorazman mempunyai pengalaman lebih 20 tahun dalam sektor kewangan antarabangsa, perbankan dan pasaran kewangan terutama dalam khazanah, pelaburan, perbankan korporat dan kewangan serta pembiayaan luar pesisir dan pasaran modal.

Dari Mei 2001 hingga April 2003, Dato’ Noorazman telah dipinjamkan kepada Kementerian Kewangan sebagai Ketua Pengarah Lembaga Perkhidmatan Kewangan Luar Pesisir Labuan. Dari Julai 2003 hingga Mei 2004, Dato’ Noorazman berkhidmat sebagai Ketua Pegawai Operasi di Bursa Malaysia. Kemudian beliau menyertai Citigroup sebagai Pengarah Urusan dan Ketua Perbankan Korporat Citibank Malaysia Berhad.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB. Beliau juga tidak mempunyai konflik kepentingan dengan BHB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri (11) daripada (12) Mesyuarat Lembaga yang diadakan pada tahun kewangan.

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Profil PengarahDirectors’ Profile

Dato’ Dr. Abdul Halim, a Malaysian, aged 68, was appointed a Director of BHB on 21 August 1998.

Dato’ Dr. Abdul Halim is presently the Executive Director of BIMBSEC Sdn. Bhd. Prior to this, he was the Managing Director of Bank Islam until 1994.

Dato’ Dr. Abdul Halim is currently the Chairman of BIMB Unit Trust Management Berhad and Mentakab Rubber Company (Malaya) Berhad. He is also a Director of Golden Hope Plantations Berhad, Institut Kefahaman Islam Malaysia (IKIM), Synergy Drive Berhad and is a member of the Shariah Advisory Council(s) of the Securities Commission and Bank Negara Malaysia.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of PNB. He has not been convicted of any offence within the past ten (10) years.

He attended (9) out of (12) Board Meetings held in the financial year.

Dato’ Dr Abdul Halim bin IsmailPengarah Bukan Eksekutif Tidak BebasNon-Independent Non-Executive Director

Doktor Falsafah (Ekonomi), University of Oxford (England)PhD (Economics), University of Oxford (England)

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Dato’ Dr Abdul Halim, warganegara Malaysia, berusia 68 tahun, dilantik sebagai Pengarah BHB pada 21 Ogos 1998.

Dato’ Dr Abdul Halim kini merupakan Pengarah Eksekutif BIMBSEC. Sebelum itu, beliau Pengarah Urusan Bank Islam sehingga 1994.

Dato’ Dr Abdul Halim merupakan Pengerusi BIMB Unit Trust Management Berhad dan Mentakab Rubber Company (Malaya) Berhad. Beliau juga ialah Pengarah Golden Hope Plantations Berhad, Institut Kefahaman Islam Malaysia (IKIM), Synergy Drive Berhad dan ahli Badan Penasihat Syariah di Suruhanjaya Sekuriti dan Bank Negara Malaysia.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB. Beliau juga tidak mempunyai konflik kepentingan dengan BHB kecuali sebagai pengarah nomini PNB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri (9) daripada (12) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Profil PengarahDirectors’ Profile

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Dato’ Mohd Bakke, a Malaysian, aged 53, was appointed a Director of BHB on 3 June 2002. He is the Chairman of the Nomination and Assessment Committee and Remuneration Committee. Dato’ Mohd Bakke is presently the Group Managing Director and Chief Executive Director of Felda Holdings Berhad. Before assuming this position, he was the Group Managing Director and Chief Executive Officer of LTH.

He is also a Director of Bank Islam, Amanah Raya Berhad and a Commission Member of the Securities Commission.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past ten (10) years.

He attended (11) out of (12) Board Meetings held in the financial year.

Dato’ Mohd Bakke bin SallehPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Sarjana Muda (Ekonomi) London School of Economics and Political Science, Felo ICA (England dan Wales), Ahli MIA BSc (Econs) London School of Economics and Political Science, Fellow of ICA (England and Wales), Member of MIA

Dato’ Mohd Bakke, warganegara Malaysia, berusia 53 tahun, dilantik sebagai Pengarah BHB pada 3 Jun 2002. Beliau merupakan Pengerusi Jawatankuasa Penamaan dan Penilaian dan Jawatankuasa Saraan.

Pada masa ini Dato’ Mohd Bakke ialah Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif FELDA Holdings Berhad. Sebelum ini beliau ialah Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif LTH.

Beliau juga merupakan Pengarah Bank Islam, Amanah Raya Berhad dan juga Ahli Suruhanjaya Sekuriti Malaysia.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB dan beliau juga tidak mempunyai sebarang konflik kepentingan dengan BHB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun lalu.

Beliau telah menghadiri (11) daripada (12) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Encik Zahari, a Malaysian, aged 64, was appointed a Director of BHB on 20 September 2002. He is the Chairman of the Audit and Examination Committee and a member of the Nomination and Assessment Committee and Remuneration Committee.

He was the former General Manager, Commercial Banking Division of Malayan Banking Berhad before retiring in 1996.

He is also a director of Bank Islam and Putrajaya Perdana Berhad.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past ten (10) years.

He attended all (12) Board Meetings held in the financial year.

Encik Zahari @ Mohd Zin bin IdrisPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Sijil Senior CambridgeSenior Cambridge Certificate

Profil PengarahDirectors’ Profile

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Encik Zahari, warganegara Malaysia, berusia 64 tahun, dilantik sebagai Pengarah BHB pada 20 September 2002. Beliau merupakan Pengerusi Jawatankuasa Audit dan Pemeriksaan dan ahli Jawatankuasa Penamaan dan Penilaian serta Jawatankuasa Saraan.

Beliau ialah bekas Pengurus Besar Bahagian Perbankan Komersial di Malayan Banking Berhad sebelum bersara pada 1996.

Beliau juga merupakan Pengarah Bank Islam dan Putrajaya Perdana Berhad.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB dan beliau juga tidak mempunyai konflik kepentingan dengan BHB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri kesemua (12) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Profil PengarahDirectors’ Profile

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Datuk Burhanuddin, a Malaysian, aged 74, was appointed a Director of BHB on 26 April 2004. He is a lawyer by profession having practised for over 28 years.

He is a Director of Permodalan Nasional Berhad, Amanah Saham Nasional Berhad and Ireka Corporation Berhad.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of PNB. He has not been convicted of any offence within the past ten (10) years.

He attended (11) out of (12) Board Meetings held in the financial year.

Datuk Burhanuddin bin Ahmad TajudinPengarah Bukan Eksekutif Tidak BebasNon-Independent Non-Executive Director

Barrister at Law (Middle Temple) Barrister at Law (Middle Temple)

Datuk Burhanuddin, warganegara Malaysia, berusia 74 tahun, dilantik sebagai Pengarah BHB pada 26 April 2004.Beliau ialah seorang peguam yang telah berkhidmat selama 28 tahun.

Beliau juga merupakan Pengarah Permodalan Nasional Berhad, Amanah Saham Nasional Berhad dan Ireka Corporation Berhad.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB. Beliau juga tidak mempunyai konflik kepentingan dengan BHB kecuali sebagai pengarah nomini PNB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri (11) daripada (12) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Profil PengarahDirectors’ Profile

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Encik Salih Amaran bin JamiaanPengarah Bukan Eksekutif Tidak BebasNon Independent Non-Executive Director

Sarjana Pentadbiran Perniagaan,Wharton University of Pennsylvania (USA)MBA, Wharton University of Pennsylvania (USA)

Encik Salih Amaran, a Malaysian, aged 67, was appointed a Director of BHB on 18 February 2005. He is also a member of the Audit and Examination Committee.

He was the former Deputy Secretary, Finance Division at the Malaysian Ministry of Finance; General Manager, International Banking Division of Malayan Banking Berhad; Special Adviser (Economics) of the Commonwealth Secretariat, London; and Deputy Director, Trade Finance and Promotion Department, of the Islamic Development Bank (IDB) in Jeddah. From 2000 to 2002, he was the Regional Representative of IDB for Brunei, Indonesia and Malaysia, based in Kuala Lumpur.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of PNB. He has not been convicted of any offence within the past ten (10) years.

He attended all (12) Board Meetings held in the financial year.

Encik Salih Amaran, warganegara Malaysia, berusia 67 tahun, dilantik sebagai Pengarah BHB pada 18 Februari 2005. Beliau juga merupakan ahli Jawatankuasa Audit dan Pemeriksaan.

Beliau ialah bekas Timbalan Setiausaha, Bahagian Kewangan di Kementerian Kewangan Malaysia, Pengurus Besar, Bahagian Perbankan Antarabangsa Malayan Banking Berhad, Penasihat Khas (Ekonomi) di Pejabat Sekretariat Komanwel, London dan Timbalan Pengarah, Jabatan Pembiayaan dan Penggalakkan Perdagangan, Islamic Development Bank (IDB) di Jeddah. Dari tahun 2000 ke 2002, beliau bertugas sebagai Wakil Serantau IDB bagi Brunei, Indonesia dan Malaysia, berpusat di Kuala Lumpur.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB dan tidak mempunyai sebarang konflik kepentingan dengan BHB kecuali sebagai pengarah nomini PNB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri kesemua (12) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Profil PengarahDirectors’ Profile

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Puan Zaiton, a Malaysian, aged 50, was appointed a Director of BHB on 2 February 2006. She is also a member of the Audit and Examination Committee, Nomination and Assessment Committee and Remuneration Committee.

Puan Zaiton is presently the Managing Director of Capital Intelligence Advisors Sdn Bhd. She was formerly the President/ Executive Director of Malaysian Rating Corporation Berhad (MARC). Prior to joining MARC, Puan Zaiton served 12 years with Maybank, in various senior positions, including General Manager, Group Strategic Planning, a post she held until her resignation in 1996.

She is also a Commission Member of the Companies Commission of Malaysia and a Board member of Bank Islam, Malaysian Industrial Development Finance Berhad and Credit Guarantee Corporation Malaysia Berhad.

She does not have any family relationship with any director and/or major shareholder of BHB nor does she have any conflict of interest with BHB. She has not been convicted of any offence within the past ten (10) years.

She attended all the (12) Board Meetings held in the financial year.

Puan Zaiton binti Mohd HassanPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Ahli Malaysian Institute of Certified PublicAccountants (MICPA); Fellow Association ofChartered Certified Accountants (UK)Member of Malaysian Institute of Certified PublicAccountants (MICPA); Fellow of Association ofChartered Certified Accountants (UK)

Puan Zaiton, warganegara Malaysia, berusia 50 tahun, dilantik sebagai Pengarah BHB pada 2 Februari 2006. Beliau merupakan ahli Jawatankuasa Audit dan Pemeriksaan, Jawatankuasa Penamaan dan Penilaian dan Jawatankuasa Saraan.

Puan Zaiton ialah Pengarah Urusan di Capital Intelligence Advisors Sdn Bhd. Beliau merupakan bekas Presiden/Ketua Pegawai Eksekutif di Malaysian Rating Corporation Berhad (MARC). Sebelum menyertai MARC, Puan Zaiton berkhidmat selama 12 tahun di Maybank dengan menyandang pelbagai jawatan kanan, termasuk Pengurus Besar, Perancangan Strategik Kumpulan, iaitu jawatan yang disandang sehingga beliau meletakkan jawatan pada tahun 1996.

Beliau juga merupakan Ahli Suruhanjaya Syarikat Malaysia dan ahli Lembaga Bank Islam, Malaysia Industrial Development Finance Berhad dan Credit Guarantee Corporation Malaysia Berhad. Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB dan tidak mempunyai konflik kepentingan dengan BHB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri kesemua (12) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Datuk Ismee, a Malaysian, aged 42, was appointed Director of BHB on 9 October 2006. He is also a Board member of Bank Islam and TH Plantation Berhad.

Datuk Ismee is presently the Group Managing Director and Chief Executive Officer of LTH. Prior to that, he was the Chief Executive Officer of ECM Libra Securities and Director of ECM Libra Capital Sdn. Bhd. He has also served several organizations namely as Senior General Manager of Finance, LTH; Chief Accountant at Pengurusan Danaharta Nasional Berhad; General Manager of Business Development at Arab Malaysian Development Berhad and several finance positions in Shell Malaysia.

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB except by virtue of being a nominee director of LTH. He has not been convicted of any offence within the past ten (10) years.

He attended (5) out of (9) Board Meetings held in the financial year.

Datuk Ismee bin IsmailPengarah Bukan Eksekutif Tidak BebasNon-Independent Non-Executive Director

Chartered Institute of Management Accountants (UK) Chartered Institute of Management Accountants (UK)

Datuk Ismee, warganegara Malaysia, berusia 42 tahun, dilantik sebagai Pengarah BHB pada 9 Oktober 2006. Beliau juga merupakan Pengarah Bank Islam dan TH Plantation Berhad.

Datuk Ismee ialah Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif LTH. Sebelum itu, beliau merupakan Ketua Pegawai Eksekutif ECM Libra Securities dan Pengarah ECM Libra Capital Sdn Bhd. Beliau juga pernah berkhidmat dengan beberapa organisasi antaranya selaku Pengurus Besar Kanan Kewangan, LTH; Ketua Akauntan di Pengurusan Danaharta Nasional Berhad; Pengurus Besar Pembangunan Perniagaan di Arab Malaysian Development Berhad dan beberapa jawatan kewangan di Shell Malaysia.

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama dan tidak mempunyai konflik kepentingan dengan BHB kecuali sebagai pengarah nomini LTH. Beliau juga tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri (5) daripada (9) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Dato’ Hairuddin, a Malaysian, aged 57, was appointed Director of BHB on 9 October 2006. He is also the Chairman of BHB’s Special Board Committee.

Datuk Hairuddin was formerly the Commissioner of Police at the Commercial Crimes Investigation Department. During his 36 years of tenure, he held several senior positions in the Force, amongst which are Deputy Commissioner of Police (Chief, Police Officer of Kedah), Senior Assistant Commissioner I (Deputy Director of Administration (Training) and Senior Assistant Commissioner II (Crime Investigation Department, Sarawak).

He does not have any family relationship with any director and/or major shareholder of BHB nor does he have any conflict of interest with BHB. He has not been convicted of any offence within the past ten (10) years.

He attended (9) out of (9) Board Meetings held in the financial year.

Dato’ Hairuddin bin MohamedPengarah Bukan Eksekutif BebasIndependent Non-Executive Director

Sarjana Muda Sains Sosial, Universiti Sains MalaysiaBachelor of Social Science, Universiti Sains Malaysia

Dato’ Hairuddin, warganegara Malaysia, berusia 57 tahun, dilantik sebagai pengarah BHB pada 9 Oktober 2006. Beliau juga merupakan Pengerusi Jawatankuasa Khas Lembaga BHB.

Dato’ Hairuddin merupakan bekas Pesuruhjaya Polis di Jabatan Siasatan Jenayah Komersial. Beliau pernah menyandang beberapa jawatan kanan sepanjang tempoh 36 tahun perkhidmatannya dalam pasukan Polis, antaranya, Timbalan Pesuruhjaya Polis (Ketua Pegawai Polis Kedah), Penolong Kanan Pesuruhjaya l (Timbalan Pengarah Pentadbiran (Latihan)) dan Penolong Kanan Pesuruhjaya ll (Jabatan Siasatan Jenayah, Sarawak).

Beliau tidak mempunyai sebarang pertalian kekeluargaan dengan mana-mana pengarah dan/atau pemegang saham utama BHB dan tidak mempunyai konflik kepentingan dengan BHB. Beliau tidak pernah dikenakan sebarang tindakan undang-undang dalam tempoh 10 tahun yang lalu.

Beliau telah menghadiri (9) daripada (9) Mesyuarat Lembaga Pengarah yang diadakan pada tahun kewangan.

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Ketua-ketua Pegawai Eksekutif dalam Kumpulan CEOs in the Group

Encik Saiful Nizam bin Yasin

Setiausaha SyarikatCompany Secretaries

Dato’ Noorazman bin A. AzizPengarah Urusan KumpulanBIMB Holdings Berhad (Meletak jawatan pada 31 Oktober 2007) Group Managing DirectorBIMB Holdings Berhad(Resigned w.e.f 31 October 2007)

Dato’ Zukri bin SamatPengarah UrusanBank Islam Malaysia Berhad Managing DirectorBank Islam Malaysia Berhad

YM Tengku Maizura binti Tengku Ishak

Dato’ Idris bin Md TahirPengarah Eksekutif (Operasi)BIMB Securities Sdn Bhd Executive Director (Operations)BIMB Securities Sdn Bhd

Encik Nor Idzam bin Ya’akubKetua Pegawai Eksekutif BIMB Venture Capital Sdn Bhd(Meletak jawatan pada 22 Oktober 2007) Chief Executive Officer BIMB Venture Capital Sdn Bhd(Resigned w.e.f 22 October 2007)

Dato’ Mohamed Hassan bin Md. kamilPengarah Urusan KumpulanSyarikat Takaful Malaysia BerhadGroup Managing DirectorSyarikat Takaful Malaysia Berhad

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Majlis Pengawasan SyariahShariah Supervisory Council

Ustaz Mohd Bakir binHaji MansorPengerusi | Chairman

Fellow Penyelidikan Institut Perbankandan Kewangan IslamResearch Fellow, Islamic Banking andFinance Institute Malaysia

Dato’ Daud bin MuhammadAhli | Member

Ketua Hakim Syarie Negeri KelantanSharie’s Chief of Justice, Kelantan

Dr Abdullah bin Haji IbrahimAhli | Member

Fellow Penyelidikan Institut Perbankan dan Kewangan IslamResearch Fellow, Islamic Banking and Finance Institute Malaysia

Dr Yusof bin RamliAhli | Member

Pensyarah Pusat Pemikiran dan Kefahaman Islam (CITU), Universiti Teknologi Mara Lecturer, Centre of Islamic Thought andUnderstanding, Universiti Teknologi Mara

Dr Ahmad Shahbari @Sobri bin SalamonAhli | Member

Pengerusi Eksekutif PUSRAWI Corporation Sdn Bhd Executive Chairman PUSRAWI Corporation Sdn Bhd

Dr Asmak binti Ab RahmanAhli | Member

Pensyarah, Jabatan Syariah danEkonomi, Akademi Pengajian IslamUniversiti Malaya Lecturer, Shariah and EconomicDepartment, Islamic Studies Academy,University of Malaya

Ustaz Nasrudin bin YaakubSetiausaha | Secretary

Ketua Jabatan Syariah Bank Islam Malaysia BerhadHead of Shariah Department Bank Islam Malaysia Berhad

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Memperkaya Bakat

Enriching Talents

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Penyata Tadbir Urus Korporat

BHB (Syarikat) sedar akan kepentingan tadbir urus korporat dan benar-benar komited serta menyokong cadangan yang dikemukakan oleh Kod Tadbir Urus Korporat Malaysia (Kod). Berdasarkan kesedaran ini, Lembaga Pengarah BHB (Lembaga Pengarah) sentiasa berusaha memastikan tahap tadbir urus korporat yang tinggi diamalkan oleh semua syarikat dalam kumpulan BHB (Kumpulan). Kumpulan percaya bahawa integriti dalam proses perniagaan yang disokong oleh sistem dasar dan kawalan dalaman yang mantap akan membantu mewujudkan nilai jangka panjang Pemegang Saham.

Selain daripada kod itu, Lembaga Pengarah juga mengambil kira kesesuaian untuk mengguna pakai cadangan dan garis panduan tentang tadbir urus korporat sebagaimana yang digariskan oleh badan pengawal selia seperti Keperluan Penyenaraian Bursa Malaysia Securities Berhad (Bursa Malaysia), serta Garis Panduan Tadbir Urus Korporat Bank Negara Malaysia (BNM GP1-i).

I. lEMBAGA PENGARAH

1) kOMPOSISI lEMBAGA PENGARAH

Pada masa ini, Lembaga Pengarah dianggotai sembilan (9) Pengarah Bukan Eksekutif dengan empat (4) daripadanya merupakan Pengarah Bebas. Komposisi Lembaga Pengarah pada masa ini mematuhi syarat yang ditetapkan pada perenggan 15.02 Keperluan Penyenaraian Bursa Malaysia. Profil ringkas setiap ahli Lembaga Pengarah dinyatakan pada muka surat 29 hingga 38 dalam Laporan Tahunan ini.

Ahli Lembaga Pengarah terdiri daripada mereka yang mempunyai pelbagai latar belakang dan pengalaman profesional seperti perbankan dan kewangan, perakaunan, ekonomi dan undang-undang yang dapat menyumbang pengetahuan, kepakaran serta pandangan mereka yang amat berharga demi mencapai objektif dan wawasan BHB. Dengan pengetahuan dan pengalaman mereka secara kumpulan, Lembaga Pengarah mempunyai kepakaran yang diperlukan untuk memantau aktiviti dan prestasi perniagaan mereka yang berkaitan, menilai dan meluluskan pelan perniagaan strategik bagi Kumpulan dan mengkaji kecukupan dan integriti kawalan dalaman dan sistem maklumat pengurusan. Komposisi Lembaga Pengarah pada tempoh tahun kewangan ini juga agak sesuai mewakili stuktur pemilikan syarikat dengan wakil yang mencukupi untuk menjaga kepentingan minoriti melalui pengarah bebas.

Terdapat pembahagian tugas dan tanggungjawab yang jelas antara Lembaga Pengarah dan pihak Pengurusan. Lembaga Pengarah bertanggungjawab menggubal rangka kerja dasar cara BHB dan Kumpulan patut beroperasi manakala pihak Pengurusan bertanggungjawab dalam melaksanakan dasar-dasar yang sesuai serta objektif dan pencapaian sasaran korporat Kumpulan. Di samping itu, terdapat juga perbezaan yang jelas antara peranan Pengerusi dan Pengarah Urusan. Pengerusi menyediakan kepimpinan berkesan kepada Lembaga Pengarah manakala Pengarah Urusan mengetuai Pengurusan untuk mempertingkat sumbangan kepada keseluruhan Kumpulan dan menambah nilai terhadap pemegang saham.

Lembaga Pengarah percaya bahawa keberkesanan dalam tadbir urus korporat ini adalah berlandaskan pada tiga asas utama, iaitu kebebasan, kebertanggungjawapan dan ketelusan. Bagi tujuan ini, Lembaga Pengarah mempunyai pengarah yang mampu bertindak serta menyuarakan pandangan dan pendapat mereka secara bebas tanpa sebarang pengaruh. Lebih penting lagi, Lembaga Pengarah mempunyai ahli yang antaranya ialah Pengarah Bukan Eksekutif Bebas yang tidak terikat dengan pihak pengurusan dan pemegang saham utama Syarikat. Mereka juga bebas daripada sebarang kaitan perniagaan atau hubungan lain yang mungkin menjejaskan pertimbangan dan tugas mereka.

2) MESYUARAT lEMBAGA

Kesemua mesyuarat Lembaga Pengarah dijadualkan lebih awal pada permulaan setiap tahun baru kalendar bagi membolehkan para Pengarah merancang lebih awal dan menyelaraskan jadual mesyuarat itu dengan jadual mereka masing-masing. Lembaga Pengarah mengadakan mesyuarat sekurang-kurangnya empat (4) mesyuarat biasa yang terancang setiap tahun dengan mesyuarat tambahan bagi membincangkan hal-hal tertentu, mengikut keperluan.

Pada tahun kewangan berakhir 30 Jun 2007, Lembaga Pengarah telah bermesyuarat sebanyak 12 kali. Kesemua Pengarah telah mematuhi keperluan kehadiran minimum ke Mesyuarat Lembaga Pengarah sebagaimana yang ditetapkan oleh Bank Negara Malaysia dan Bursa Malaysia.

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Statement of Corporate Governance

BHB (the Company) recognises the importance of corporate governance and is fully committed and supports the recommendations of the Malaysian Code on Corporate Governance (the Code). Based on this premise, the Board of Directors of BHB (the Board) constantly strives to ensure that high standards of corporate governance are being practiced throughout BHB group of companies (the Group). The Group believes that integrity in business processes supported by a sound system of policies and internal controls will help create long-term value for our Shareholders.

In addition to the Code, the Board also considers where appropriate the adoption of recommendations and guidelines on corporate governance outlined by regulatory bodies such as Bursa Malaysia Securities Berhad’s Listing Requirements and Bank Negara Malaysia’s Guidelines on Corporate Governance (BNM GP1-i).

I. BOARD OF DIRECTORS

1) COMPOSITION AND DIVISION OF RESPONSIBIlITIES

The Board currently has nine (9) non-executive directors, of whom four (4) are independent. The current composition of the Board is in compliance with paragraph 15.02 of the Listing Requirements of Bursa Malaysia Securities Berhad (Bursa Malaysia). A brief profile of each member of the Board is presented on page 29 to 38 of this Annual Report.

The Board has within it, members from diverse professional backgrounds and experiences such as banking and

finance, accounting, economics and law, bringing with them invaluable knowledge, expertise and perspective to achieve the Group’s objectives and vision. Cumulatively, with their knowledge and experience, the Board has the expertise required for the task of overseeing the conduct and performance of its respective businesses, reviewing and approving the strategic business plans for the Group and reviewing the adequacy and integrity of internal controls and management information systems. The composition of the Board during the financial year under review had also fairly represented the ownership structure of the company with appropriate representations of minority interest through the independent directors.

There is a clear division of duties and responsibilities between the Board and Management. The Board is responsible for setting the policy framework within which the Company and the Group should be operating whilst the Management is accountable for the execution of enabling policies and attainments of the Group’s corporate goals and objectives. There is also a clear distinction between the role of Chairman and the Managing Director. The Chairman provides effective leadership to the Board while the Managing Director provides stewardship to the Management to improve contribution to overall earnings of the Group and to enhance value for shareholders.

The Board believes that effective corporate governance is premised on three important cornerstones, namely

independence, accountability and transparency. For this reason, the Board has directors who are able to act independently and express their views and opinions unencumbered and free from any influence. More importantly, the Board has as members, independent non-executive directors who are independent from management and major shareholders of the Company. The independent directors are also free from any business or other relationships that could materially interfere with the exercise of their objective and independent judgment.

2) BOARD MEETINGS

Board meetings are scheduled in advance at the beginning of a new calendar year to enable directors to plan ahead and fit the year’s meeting into their own schedules. The Board has at least four (4) regularly scheduled meetings annually with additional meetings for particular matters, convened as and when required.

For the financial year ended 30 June 2007, the Board met (12) times. All Directors had complied with the minimum number of attendances for Board Meetings as stipulated by BNM and Bursa Malaysia.

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Penyata Tadbir Urus Korporat

Butiran kehadiran setiap Pengarah ke mesyuarat sepanjang tempoh mereka memegang jawatan bagi tahun kewangan berakhir 30 Jun 2007 adalah seperti yang berikut:

Pengarah kehadiran/ Bil Mesyuarat

Tan Sri Samsudin bin Osman 3/3* (dilantikpada1Februari2007) Dato’ Noorazman bin A.Aziz 11/12 (meletakjawatanpada31Oktober2007) Dato’ Dr. Abdul Halim bin Ismail 9/12 Dato’ Mohd Bakke bin Salleh 11/12 Zahari @ Mohd Zin bin Idris 12/12 Datuk Burhanuddin bin Ahmad Tajudin 11/12 Salih Amaran bin Jamiaan 12/12 Zaiton binti Mohd Hassan 12/12 Datuk Ismee bin Ismail 5/9* (dilantikpada9Oktober2006) Dato’ Hairuddin bin Mohamed 9/9* (dilantikpada9Oktober2006)

*Menunjukkan bilangan mesyuarat yang diadakan sepanjang Pengarah berkenaan memegang jawatan.

3) BEkAlAN MAklUMAT

Lembaga Pengarah mempunyai akses penuh dan tidak terbatas pada semua maklumat yang berkaitan dengan urus niaga dan urusan BHB bagi membolehkan mereka menjalankan tugas dengan berkesan. Semua Pengarah mempunyai akses mendapatkan nasihat dan khidmat Setiausaha Syarikat dan jika perlu, mereka boleh mendapatkan khidmat nasihat profesional bebas.

Laporan Lembaga Pengarah menyediakan perkembangan terkini berkenaan operasi, kewangan dan korporat yang diedarkan sebelum mesyuarat Lembaga Pengarah bagi membolehkan mereka mendapat penjelasan atau huraian lanjut sebagai persediaan sebelum menghadiri mesyuarat.

4) PElANTIkAN MENGANGGOTAI lEMBAGA

Lembaga Pengarah telah menetapkan prosedur rasmi dan telus dalam pelantikan ahli baru menganggotai Lembaga Pengarah. Jawatankuasa Penamaan dan Penilaian diberi tanggungjawab untuk mengenal pasti serta membuat cadangan tentang pelantikan pengarah baru menganggotai Lembaga Pengarah Syarikat selepas mengambil kira keperluan pelbagai kemahiran, pengalaman dan kualiti lain yang dimiliki oleh calon.

5) PEMIlIHAN SEMUlA

Berdasarkan Tataurusan Pertubuhan Syarikat, sekurang-kurangnya sepertiga (1/3) daripada pengarah dikehendaki bersara secara giliran setiap tahun kewangan dan mereka boleh menawarkan diri untuk dipilih semula pada Mesyuarat Agung Tahunan (AGM). Pengarah yang dilantik oleh Lembaga untuk mengisi kekosongan biasa tertakluk pada pemilihan oleh pemegang saham pada AGM pertama selepas pelantikan mereka.

Pelantikan semua Pengarah tertakluk pada kelulusan Bank Negara Malaysia.

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Statement of Corporate Governance

Details of attendance of each Director who was in office during the financial year ended 30 June 2007 are as follow:-

Directors No. of meetings and attendances

Tan Sri Samsudin bin Osman 3/3* (appointedon1February2007) Dato’ Noorazman bin A.Aziz 11/12 (resignedw.e.f31October2007) Dato’ Dr. Abdul Halim bin Ismail 9/12 Dato’ Mohd Bakke bin Salleh 11/12 Zahari @ Mohd Zin bin Idris 12/12 Datuk Burhanuddin bin Ahmad Tajudin 11/12 Salih Amaran bin Jamiaan 12/12 Zaiton binti Mohd Hassan 12/12 Datuk Ismee bin Ismail 5/9* (appointedon9October2006) Dato’ Hairuddin bin Mohamed 9/9* (appointedon9October2006)

* Reflects the number of meetings held during the time the Directors held office.

3) SUPPlY OF INFORMATION

The Board of Directors has full and unrestricted access to all information pertaining to the Group’s businesses and affairs to enable them to discharge their duties effectively. All Directors have access to the advice and services of the Company Secretary and they may also seek independent professional advice where necessary.

Board reports providing updates on operational, financial and corporate developments are circulated on a timely basis

prior to board meetings to enable them to obtain further clarification or explanation where necessary in order to be adequately apprised before meetings.

4) APPOINTMENT TO THE BOARD

The Board has put in place formal and transparent procedures for the appointments of new members to the Board. The Nomination and Assessment Committee is entrusted with the specific tasks of identifying and making recommendations on the appointments of new directors to the Board of the Company after taking into account the required mix of skills, experience and other qualities of the appointee.

5) RE-ElECTION

In accordance with the Company’s Articles of Association, at least one-third (1/3) of the directors are required to retire by rotation each financial year and can offer themselves for re-election at the Annual General Meeting (AGM). Directors, who are appointed by the Board to fill a casual vacancy are subject to election by shareholders at the first AGM following their appointment.

All appointments of Directors are subject to the approval of BNM.

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Penyata Tadbir Urus Korporat

6) kEAHlIAN DAlAM lEMBAGA PENGARAH SYARIkAT lAIN

Menurut Keperluan Penyenaraian Bursa Malaysia, setiap ahli Lembaga Pengarah dibolehkan menjadi ahli lembaga pengarah tidak melebihi sepuluh (10) syarikat awam dan tidak melebihi lima belas (15) keahlian dalam lembaga pengarah syarikat bukan awam yang tersenarai.

7) lATIHAN PENGARAH

Semua Pengarah telah mengikuti dan tamat dengan jayanya Program Akreditasi Mandatori sebagaimana yang ditetapkan oleh Bursa Malaysia.

Di samping itu, semua Pengarah dimaklumkan tentang seminar dan persidangan yang berkaitan dengan isu perbankan dan kewangan, tanggungjawab Pengarah serta tadbir urus korporat anjuran pihak berkuasa yang berkaitan untuk mereka hadiri. Pengarah digalakkan menghadiri program pembelajaran dan seminar yang berterusan supaya mereka dapat mengikuti perkembangan dunia perniagaan.

Program latihan Terpilih Yang Dihadiri oleh Para Pengarah:

Tajuk kursus/Jurulatih

Memperbaiki Prestasi Lembaga Pengarah, Kepimpinan dan Tataurus/JamesCrownKnowledge GroupConsultingSdnBhd

8) GANJARAN PENGARAH

Pengarah Bukan Eksekutif diberi bayaran dalam bentuk yuran pengarah yang diluluskan oleh pemegang saham di AGM. Butiran mengenai saraan kepada Pengarah bagi tahun kewangan berakhir 30 Jun 2007 dinyatakan pada muka surat 128 hingga 129 dalam Laporan Tahunan ini.

II. JAwATANkUASA lEMBAGA PENGARAH

Lembaga Pengarah telah menugaskan tanggungjawab tertentu kepada Jawatankuasa Lembaga Pengarah, yang berurusan mengikut bidang tugas yang jelas terutamanya bagi membantu Lembaga Pengarah menjalankan tugas dan tanggungjawabnya.

lEMBAGA PENGARAH

Jawatankuasa Audit dan Pemeriksaan

Jawatankuasa Penamaan dan Penilaian

Jawatankuasa Ganjaran

Jawatankuasa khaslembaga Pengarah

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6) DIRECTORSHIP IN OTHER COMPANIES

Pursuant to the Listing Requirements of Bursa Malaysia, each member of the Board holds not more than ten (10) directorships in public companies and not more than fifteen (15) directorships in non-public listed companies.

7) DIRECTORS’ TRAINING

All Directors have attended and successfully completed the Mandatory Accreditation Programme in the manner prescribed by Bursa Malaysia.

In addition, seminars and conferences organised by the relevant regulatory authorities on areas relevant to banking and finance, Directors’ responsibilities and corporate governance issues are made known to the Directors for their participation in such seminars and conferences. Directors are encouraged to attend continuous education programmes and seminars to keep them abreast with developments in the market place.

Selected Training Programmes Attended By Directors: Course Title/Trainer Improving Board Directors’ Performance, Leadership and Governance/JamesCrownofKnowledge GroupConsultingSdnBhd

8) DIRECTORS’ REMUNERATION

Non-executive Directors are paid directors’ fees and these are approved by shareholders at the AGM. Details of the remuneration of Directors for the year ended 30 June 2007 are set out on page 128 to 129 of this Annual Report.

II. BOARD COMMITTEES

The Board has delegated certain responsibilities to Board committees, which operate within clearly defined terms of reference primarily to assist the Board in the execution of its duties and responsibilities.

Statement of Corporate Governance

BOARD OF DIRECTORS

Audit and Examination Committee

Nomination and Assessment Committee

Remuneration Committee

Special Board Committee

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Penyata Tadbir Urus Korporat

1) JAwATANkUASA PENAMAAN DAN PENIlAIAN

Jawatankuasa ini bertanggungjawab menilai, mempertimbangkan dan mencadangkan kepada Lembaga calon untuk memegang jawatan Pengarah dalam Kumpulan. Tanggungjawab lain bagi Jawatankuasa ini adalah seperti yang berikut:

• mengesyorkan kepada Lembaga Pengarah hal-hal yang berkaitan dengan pembaharuan atau lanjutan pelantikan dan pemilihan semula pengarah yang bersara.

• mencadangkan kepada Lembaga Pengarah, para pengarah yang layak menduduki Jawatankuasa Lembaga.• mengesyorkan kepada Lembaga Pengarah hal-hal yang berkaitan dengan pelantikan pengarah eksekutif serta

pelantikan pengurusan kanan.• mengkaji dan menilai prestasi Lembaga Pengarah secara keseluruhan dan pelbagai jawatankuasanya serta

sumbangan tahunan setiap pengarah.

Jawatankuasa ini terdiri daripada pengarah bukan eksekutif yang kesemuanya bebas. Mesyuarat diadakan apabila perlu bagi membincangkan hal-hal yang berkaitan. Keahlian Jawatankuasa dalam tahun kewangan adalah seperti yang berikut:

Nama ahli kehadiran/Bil Mesyuarat

Dato’ Mohd Bakke bin Salleh 9/9 Pengerusi,PengarahBukanEksekutifBebas Zahari @ Mohd Zin bin Idris 9/9 PengarahBukanEksekutifBebas Zaiton binti Mohd Hassan 9/9 PengarahBukanEksekutifBebas

2) JAwATANkUASA SARAAN

Jawatankuasa ini berperanan membantu dan menyokong tanggungjawab Lembaga dari segi pakej saraan kepada para pengarah dalam segala bentuk. Jawatankuasa ini juga bertanggungjawab menilai dan mengesyorkan kepada Lembaga:

• pakej ganjaran Pengarah Eksekutif dalam segala bentuk, dengan nasihat profesional bebas yang lain jika perlu.• pakej ganjaran bukan eksekutif ditentukan oleh Lembaga secara keseluruhan kecuali saraan bagi mana-mana ahli

Jawatankuasa ini.

Jawatankuasa ini dianggotai oleh pengarah bukan eksekutif dan kesemuanya adalah bebas. Mesyuarat diadakan apabila perlu bagi membolehkan Jawatankuasa membincangkan hal-hal yang berkaitan. Keahlian Jawatankuasa dalam tahun kewangan adalah seperti yang berikut:

Nama ahli kehadiran/Bil Mesyuarat

Dato’ Mohd Bakke bin Salleh 10/10 Pengerusi,PengarahBukanEksekutifBebas Zahari @ Mohd Zin bin Idris 10/10 PengarahBukanEksekutifBebas Zaiton binti Mohd Hassan 10/10 PengarahBukanEksekutifBebas

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Statement of Corporate Governance

1) NOMINATION AND ASSESSMENT COMMITTEE

The Committee is responsible to assess, consider and recommend to the Board, candidates for directorships to be filled in the Group. The other responsibilities of the Committee are as follow:-

• to recommend to the Board on matters of renewal or extension of directors appointment and reappointment of retiring directors.

• to recommend to the Board, directors to fill the seats on Board Committees.• to recommend to the Board on matters of appointment of executive director as well as appointment of senior

management.• to review and assess performance of the Board as a whole and its various standing committees as well as the

contribution of each individual directors annually.

The Committee comprises non-executive directors, all of whom are independent. Meetings are held as and when is necessary for the Committee to deliberate on related matters. The members of the Committee comprised of the following members during the financial year:-

Name of members No. of meeting and attendances

Dato’ Mohd Bakke bin Salleh 9/9 Chairman,IndependentNon-ExecutiveDirector Zahari @ Mohd Zin bin Idris 9/9 IndependentNon-ExecutiveDirector Zaiton binti Mohd Hassan 9/9 IndependentNon-ExecutiveDirector

2) REMUNERATION COMMITTEE

The Committee’s role is to assist and support the Board’s responsibility in respect of remuneration package of directors in all forms. The Committee is also responsible to assess and recommend to the Board:-

• the remuneration package of executive directors in all its form, using other independent professional advice, if necessary.

• the remuneration of non-executive directors which shall be a decision of the Board as a whole, save and except where the remuneration is in respect of any member or members of this Committee.

The Committee comprises non-executive directors, all of whom are independent. Meetings are held as and when is necessary for the Committee to deliberate on related matters. The Committee comprised of the following members during the financial year:-

Name of members No. of meeting and attendances

Dato’ Mohd Bakke bin Salleh 10/10 Chairman,IndependentNon-ExecutiveDirector Zahari @ Mohd Zin bin Idris 10/10 IndependentNon-ExecutiveDirector Zaiton binti Mohd Hassan 10/10 IndependentNon-ExecutiveDirector

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Penyata Tadbir Urus Korporat

3) JAwATANkUASA kHAS lEMBAGA PENGARAH

Jawatankuasa ini ditubuhkan khusus untuk mempertimbangkan dan menyiasat, menilai, menasihati jika difikirkan perlu dan mencadangkan kepada Lembaga BHB akan bentuk tindakan yang patut diambil pada mana-mana pegawai, penasihat atau pakar runding syarikat dalam Kumpulan BHB apabila terdapat bukti kukuh yang boleh dipercayai bahawa pegawai, penasihat atau pakar runding berkenaan telah membuat tindakan yang boleh memudaratkan kepentingan entiti tersebut. Tanggungjawab lain Jawatankuasa adalah seperti yang berikut:

• untuk mendapatkan khidmat nasihat guaman atau pegawai yang berkaitan dalam Kumpulan BHB tentang sebarang laporan, penemuan, pemerhatian dan cadangan atas perilaku pegawai, penasihat atau pakar runding berkenaan isu yang diputuskan oleh Lembaga BHB;

• untuk menggunakan khidmat penasihat undang-undang bebas, sekiranya perlu, bagi mendapatkan nasihat undang-undang yang bebas mengenai sebarang isu kontroversi yang dianggap kompleks;

• untuk meminta penjelasan daripada pegawai yang berkaitan tentang pengendalian, pengurusan, keputusan, tindakan atau pengabaian tentang isu berkaitan; dan

• untuk menubuhkan jawatankuasa kecil yang terdiri daripada pegawai syarikat berkenaan dalam Kumpulan BHB bagi membantu melaksanakan tanggungjawab mereka termasuk menjalankan penyiasatan lanjut bagi mengenal pasti fakta tertentu atau mengumpulkan maklumat lanjut.

Ahli Jawatankuasa ini adalah seperti yang berikut:-

Nama ahli kehadiran/Bil Mesyuarat Dato’ Hairuddin bin Mohamed 6/6 Pengerusi,PengarahBukanEksekutifBebas Datuk Burhanuddin bin Ahmad Tajudin 6/6 PengarahBukanEksekutifTidakBebas Encik Zahari @ Mohd Zin bin Idris 6/6 PengarahBukanEksekutifBebas Dato’ Noorazman bin A. Aziz 6/6 PengarahBukanEksekutifTidakBebas Dato’ Zukri bin Samat 6/6 PengarahUrusan,BankIslamMalaysiaBerhad

4) JAwATANkUASA AUDIT DAN PEMERIkSAAN

Sehingga tarikh Laporan Tahunan ini, Jawatankuasa Audit dan Pemeriksaan terdiri daripada tiga (3) Pengarah Bukan Eksekutif (dua (2) daripadanya ialah Pengarah Bukan Eksekutif Bebas, termasuk Pengerusi). Keahlian dan kehadiran Jawatankuasa ke mesyuarat Jawatankuasa adalah seperti yang berikut:

Nama ahli kehadiran/Bil Mesyuarat

Zahari @ Mohd Zin bin Idris 10/10 Pengerusi/PengarahBukanEksekutifBebas Zaiton binti Mohd Hassan 10/10 PengarahBukanEksekutifBebas Salih Amaran bin Jamiaan 10/10 PengarahBukanEksekutifTidakBebas

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Statement of Corporate Governance

3) SPECIAl BOARD COMMITTEE

The Committee is specifically established to consider and appropriate to inquire into, evaluate, advise and recommend to BHB’s Board on actions to be taken against any officer, adviser or consultants of companies within BHB Group where there are sufficient grounds to believe that such officer, adviser or consultant has acted in such manner, detrimental to the interests of such entities. The other responsibilities of the Committee are as follow:-

• to consult solicitors or the relevant officers of the companies within BHB Group in relation to any reports, findings, observations and recommendations on the conduct of officers, advisers or consultants in relation to the issue determined by BHB’s Board;

• to engage independent legal advisor, where necessary to provide independent legal advice on any contentious issues that are viewed to be complex in nature;

• to request for explanation or clarification by such relevant officers in relation to the handling, management, decisions, actions or omission relating to the issue; and

• to establish a sub-committee(s) comprising of such officers of companies within BHB Group to assist it in carrying out its function including carrying out further investigation to establish certain facts or to collate further information.

The members of the Committee comprised of the following members:-

Name of members No. of meetings and attendances

Dato’ Hairuddin bin Mohamed 6/6 Chairman,IndependentNon-ExecutiveDirector Datuk Burhanuddin bin Ahmad Tajudin 6/6 Non-IndependentNon-ExecutiveDirector Encik Zahari @ Mohd Zin bin Idris 6/6 IndependentNon-ExecutiveDirector Dato’ Noorazman bin A. Aziz 6/6 Non-IndependentExecutiveDirector Dato’ Zukri bin Samat 6/6 ManagingDirector,BankIslamMalaysiaBerhad

4) AUDIT AND ExAMINATION COMMITTEE

The Committee comprises as at the date of this Annual Report, three (3) non-executive directors two (2) of whom, including the Chairman, are independent directors). The composition of the Committee and details of attendance of each member at Committee meetings during the period under review are as follows:-

Name of members No. of meetings and attendances

Zahari @ Mohd Zin bin Idris 10/10 Chairman/IndependentNon-ExecutiveDirector Zaiton binti Mohd Hassan 10/10 IndependentNon-ExecutiveDirector Salih Amaran bin Jamiaan 10/10 Non-IndependentNon-ExecutiveDirector

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Penyata Tadbir Urus Korporat

Bidang Tugas

Bidang tugas Jawatankuasa ini adalah seperti yang berikut:

• kOMPOSISI

Jawatankuasa ini terdiri daripada sekurang-kurangnya tiga (3) pengarah bukan eksekutif yang majoritinya merupakan pengarah bukan eksekutif bebas. Pengerusinya ialah pengarah bukan eksekutif bebas.

Sekurang-kurangnya seorang (1) ahli Jawatankuasa terdiri daripada ahli Institut Akauntan Malaysia atau mempunyai kelayakan yang serupa sebagaimana yang termaktub dalam Bahagian I dan Bahagian II Jadual Pertama Akta Perakaunan 1967, dengan pengalaman kerja selama tiga (3) tahun.

Jawatankuasa ini tidak boleh mempunyai pengarah giliran sebagai ahli.

• kEkERAPAN MESYUARAT

Mesyuarat perlu diadakan tidak kurang daripada empat (4) kali setahun. Juruaudit luar boleh memohon untuk mengadakan mesyuarat sekiranya difikirkan perlu.

• kORUM

Korum perlu dua (2) orang, dengan kedua-dua terdiri daripada pengarah bukan eksekutif bebas. Setiausaha Syarikat (SS) BHB patut bertindak sebagai Setiausaha kepada Jawatankuasa ini.

• kEHADIRAN SEMASA MESYUARAT

Pengarah Urusan Kumpulan, Ketua Pengawai Kewangan dan Ketua Audit Dalaman bagi anak-anak syarikat perlu menghadiri mesyuarat melalui jemputan Jawatankuasa ini. Ahli Lembaga lain berhak untuk menghadiri mesyuarat.

• kUASA

Jawatankuasa ini diberi kuasa oleh Lembaga Pengarah untuk mengkaji dan menyelidik sebarang aktiviti yang terkandung di bawah bidang tugasnya. Jawatankuasa ini juga diberi kuasa oleh Lembaga Pengarah untuk mendapatkan sebarang maklumat yang diperlukan daripada mana-mana kakitangan dan semua kakitangan diarah bekerjasama memenuhi semua permintaan Jawatankuasa ini.

Jawatankuasa ini diberi kuasa oleh Lembaga Pengarah untuk mendapatkan nasihat guaman luar atau nasihat profesional lain jika difikirkan perlu.

• TUGAS DAN TANGGUNGJAwAB

Berikut disenaraikan tugas dan tanggungjawab utama Jawatankuasa

a) mengkaji skop pelan audit juruaudit dalaman serta juruaudit luar.

b) mengkaji pengumuman suku tahunan yang dihantar kepada Bursa Malaysia dan penyata kewangan akhir tahun untuk dicadangkan kepada Lembaga Pengarah;

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Terms of Reference

The terms of reference of the Committee are as follows:

• COMPOSITION

The Committee shall comprise at least three (3) non-executive directors, a majority of whom shall be independent non-executive directors. The Chairman shall be an independent non-executive director.

At least one (1) member shall be a member of the Malaysian Institute of Accountants or possess similar qualifications as prescribed in Part I or Part II of the First Schedule of the Accountants Act 1967, with at least three (3) years of work experience.

The Committee shall not consist of any alternate director of the Company.

• FREQUENCY OF MEETINGS

Meetings shall be held not less than four (4) times a year. The external auditors may request a meeting if they consider it necessary.

• QUORUM

The quorum shall be two (2), both of which shall be independent non-executive directors. The Company Secretary of BHB shall act as Secretary to the Committee.

• ATTENDANCE AT MEETINGS

The Group Managing Director, Chief Financial Officer and Chief Internal Auditor of subsidiaries shall attend meetings by invitation of the Committee. Other Board members shall have the right of attendance.

• AUTHORITY

The Committee is authorised by the Board to review and investigate any activity within its terms of reference. It is also authorised by the Board to seek any information it requires from any employees and all employees are directed to co-operate with any request made by the Committee.

The Committee is authorised by the Board to obtain external legal or other professional advice as and when is necessary.

• DUTIES AND RESPONSIBIlITIES

The following are the main duties and responsibilities of the Committee:

a) to review the scope of audit plans of both the internal and external auditors;

b) to review the quarterly announcement made to Bursa Malaysia and year end financial statements for recommendation to the Board;

Statement of Corporate Governance

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Penyata Tadbir Urus Korporat

c) mengkaji dan melaporkan kepada Lembaga Pengarah sebarang transaksi penting yang bukan dalam bidang perniagaan biasa, terutamanya bagi transaksi pihak yang berkaitan dan potensi konflik kepentingan dalam Syarikat atau Kumpulan;

d) mengesyorkan kepada Lembaga Pengarah pelantikan juruaudit luar dan yuran audit yang perlu dibayar;

e) membuat cadangan yang sesuai kepada Lembaga perihal peletakan jawatan atau pemberhentian juruaudit Iuar;

f) mengkaji laporan juruaudit luar kepada pihak Pengurusan dan respons pihak Pengurusan tentang kelemahan prosedur dan kawalan perakaunan dalaman dan membuat cadangan kepada Lembaga Pengarah; dan

g) mengkaji laporan audit anak-anak syarikat di bawah bidang kuasa Jawatankuasa dan peranan tersebut perlu dilaksanakan oleh Jawatankuasa bersama-sama dengan Lembaga Pengarah anak-anak syarikat berkenaan.

• FUNGSI AUDIT DAlAM

Fungsi audit dalaman beroperasi di peringkat anak-anak syarikat utama. Juruaudit Dalaman Bank Islam dan STMB melaksanakan kerja-kerja audit bagi Kumpulan Bank Islam dan Kumpulan STMB.

Juruaudit Dalaman Bank Islam dan STMB melaksanakan pengauditan atas amalan kawalan dalaman dan melaporkan penemuan kepada Jawatankuasa Audit masing-masing.

Fungsi teras yang jelas Jabatan Audit Dalaman yang berkenaan adalah untuk melaksanakan penilaian bebas atas aktiviti kumpulan Bank Islam dan STMB, memberi jaminan bersabit dengan pematuhan kepada kawalan dalaman dan proses pengurusan risiko, dan pematuhan pada undang-undang, peraturan dan dasar.

Pihak pengurusan Bank Islam dan STMB bertanggungjawab memastikan tindakan pembetulan atas laporan kelemahan yang dilaksanakan dalam tempoh masa yang munasabah.

• AkTIVITI SEPANJANG TAHUN

Berikut ialah ringkasan aktiviti yang telah dijalankan oleh Jawatankuasa sepanjang tempoh tahun kewangan ini:

a) mengkaji pelan audit juruaudit luar, skop kerja dan keputusan audit tahunan bagi Kumpulan;

b) mengkaji penyata kewangan suku tahunan Kumpulan dan draf pengumuman kepada Bursa Malaysia sebelum memberikan cadangan untuk diluluskan oleh Lembaga Pengarah;

c) mengkaji penyata kewangan tahunan teraudit Syarikat dan Kumpulan bersama juruaudit luar sebelum dikemukakan kepada Lembaga Pengarah untuk kelulusan mereka;

d) mengkaji keputusan dan laporan juruaudit luar serta respons pihak Pengurusan mengenai penemuan juruaudit luar; dan

e) memberikan pertimbangan dan mencadangkan kepada Lembaga Pengarah akan pelantikan semula juruaudit luar dan yuran audit mereka.

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c) to review and report to the Board any significant transactions which are not within the normal course of business, particularly on related party transactions and potential conflicts of interest that may arise within the Company or Group;

d) to recommend to the Board the appointment of external auditors and audit fees payable thereof;

e) to make appropriate recommendations to the Board on matters of resignation or dismissal of external auditors;

f) to review external auditors’ letter to the Management and the Management’s response on the weaknesses of internal accounting procedures and controls and make recommendations to the Board; and

g) to review audit reports of the Company’s subsidiaries which fall under the jurisdiction of the Committee and that function shall be performed by the Committee in co-ordination with the Board of Directors of the subsidiaries.

• INTERNAl AUDIT FUNCTION

The internal audit function operates at major subsidiaries level. The Internal Auditors of Bank Islam and STMB conducts an audit for the Bank Islam Group and STMB Group respectively.

The respective Internal Auditor regularly audits the internal control practices and report significant findings to their respective Audit Committee with proposed recommendations.

The respective Internal Auditor’s core function is to perform an independent appraisal of the Bank Islam Group and STMB Group activities, to provide assurance on compliance to internal controls and risk management processes, and compliance with laws, regulations and policies.

The management of Bank Islam and STMB are responsible to ensure that corrective actions on reported weaknesses are undertaken within an appropriate time frame.

• ACTIVITIES DURING THE YEAR

The following is a summary of the activities carried out by the Committee during the financial year:-

a) reviewed the external auditors’ audit plan, scope of work and results of the annual audit for the Group;

b) reviewed the financial statements of the Group on a quarterly basis and the draft announcement to Bursa Malaysia before recommending them for approval to the Board;

c) reviewed the annual audited financial statements of the Company and the Group with external auditors prior to the submission to the Board for their approval;

d) reviewed the external auditor’s results and report as well as the Management’s consequent responses to the findings of the external auditors; and

e) considered and recommended to the Board the re-appointment of the external auditors and their audit fees.

Statement of Corporate Governance

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Penyata Tadbir Urus Korporat

III. AkAUNTABIlITI DAN AUDIT

1) PElAPORAN kEwANGAN

Lembaga Pengarah bertanggungjawab membentangkan penilaian yang seimbang dan komprehensif atas operasi dan prospek Syarikat dan Kumpulan pada setiap hujung tahun kewangan terutamanya melalui penyata kewangan tahunan, pengumuman keputusan suku tahunan dan setiap setengah tahun dan juga pernyataan Pengerusi serta tinjauan operasi dalam laporan tahunan.

Penyata kewangan BHB disediakan mengikut keperluan Lembaga Piawaian Perakaunan Malaysia bagi memastikan laporan yang dikemukakan mengenai prestasi Kumpulan adalah betul dan adil.

Pernyataan oleh Pengarah menurut Seksyen169 Akta Syarikat, 1965 dinyatakan pada muka surat 78 dalam Laporan Tahunan ini.

2) kAwAlAN DAlAMAN

Lembaga Pengarah sedar akan kepentingan sistem kawalan dalaman yang mantap bagi memelihara kepentingan pelaburan pemegang saham dan aset Syarikat. Penyata Kawalan Dalaman dipaparkan pada muka surat 58 dalam Laporan Tahunan ini.

3) HUBUNGAN DENGAN JURUAUDIT

Lembaga Pengarah telah mewujudkan hubungan yang telus dan wajar dengan juruauditnya melalui Jawatankuasa Audit. Juruaudit Luar mempunyai tanggungjawab untuk mengetengahkan sebarang kepincangan dalam sistem kawalan dalaman dan pematuhan Kumpulan untuk perhatian pihak Pengurusan, Jawatankuasa Audit serta Lembaga.

Peranan Jawatankuasa Audit berhubung dengan Juruaudit Luar dinyatakan dalam Laporan Jawatankuasa Audit pada muka surat 50 hingga 55 dalam Laporan Tahunan ini.

IV. PEMEGANG SAHAM

HUBUNGAN PEMEGANG SAHAM DAN PElABUR

Lembaga Pengarah sedar akan kepentingan para pemegang saham, pelabur dan masyarakat umum untuk mendapatkan maklumat yang saksama dan tepat pada masanya jika dikaitkan dengan prestasi Kumpulan dan hal-hal lain yang menjejaskan kepentingan pemegang saham.

Satu cara terpenting penyampaian maklumat kepada pemegang saham adalah melalui laporan tahunan yang mengandungi butiran maklumat yang komprehensif mengenai keputusan dan prestasi Syarikat dan Kumpulan.

AGM dianggap forum utama bagi pemegang saham dan pelabur mendapatkan maklumat tentang perkembangan terkini dalam Syarikat dan Kumpulan. Pemegang saham dipelawa mengemukakan soalan sewaktu sesi soal jawab sebelum tindakan mendapatkan kelulusan bagi sesuatu resolusi.

Selain itu, Syarikat dari semasa ke semasa membuat pelbagai pengumuman dan penzahiran usul penting korporat kepada Bursa Malaysia (termasuk penzahiran wajib di bawah Keperluan Penyenaraian) supaya pelabur awam dapat mengakses maklumat penting yang mempengaruhi Kumpulan. Anak-anak syarikat utama, Bank Islam dan STMB (tersenarai di Papan Utama) dari semasa ke semasa juga membuat penzahiran kepada media tentang pelbagai aktiviti yang berkaitan dengan syarikat yang melibatkan kepentingan awam.

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III. ACCOUNTABIlITY AND AUDIT

1) FINANCIAl REPORTING

The Board takes responsibility for presenting a balanced and comprehensive assessment of the Company’s and the Group’s operations and prospects at the end of each financial year primarily through annual financial statements, quarterly and half-yearly announcement of results to shareholders as well as the Chairman’s Statement and review of operations in the Annual Report.

The financial statements of BHB are prepared in accordance with the Malaysian Accounting Standards Board’s requirements to ensure that the reports present a true and fair view of the Group performance.

The Statement by Directors pursuant to Section 169 of the Companies Act, 1965 is set out on page 78 of this

Annual Report.

2) INTERNAl CONTROl

The Board recognises the importance of a sound system of internal controls to safeguard shareholders’ investments and the Company’s assets. The Statement on Internal Control is set out in page 59 of this Annual Report.

3) RElATIONSHIP wITH AUDITORS

The Board has established transparent and appropriate relationship with its auditors through the Audit Committee. The external auditors have an obligation to highlight any significant defects in the Group’s system of internal controls and compliance to the attention of Management, Audit Committee and the Board.

The role of the Audit Committee in relation to the external auditors is described under the Audit Committee Report on page 50 to 55 of this Annual Report.

IV. SHAREHOlDERS

RElATIONSHIP wITH SHAREHOlDERS AND INVESTORS

The Board recognises the importance of timely and equal access of information with regard to the Company’s and the Group’s performance and other matters affecting shareholders interest to shareholders, investors and the general public.

One of most important means of communication to shareholders is through the Annual Report which contains comprehensive details about the financial results and performance of the Company and the Group.

The AGM is regarded as the principal forum during which shareholders and investors are informed of the current developments of the Company and the Group. Shareholders are invited to ask questions during the question and answer session prior to the motion moving for approval of a particular resolution.

In addition, the Company from time to time makes various announcements and disclosures on material corporate proposals to Bursa Malaysia (including mandatory disclosures under the Listing Requirements) so that the investing public has reasonable access to material information affecting the Group. The Company’s major subsidiaries, Bank Islam and STMB (listed on the Main Board) also make disclosures to the media from time to time on various matters pertaining to their activities that are of public interest.

Statement of Corporate Governance

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Penyata Kawalan Dalaman

Lembaga Pengarah sedar akan kepentingan untuk memantapkan sistem kawalan dalaman dan amalan pengurusan risiko yang baik bagi memastikan tadbir urus korporat yang berkesan. Lembaga juga sedar akan tanggungjawab mereka untuk mengkaji kecukupan dan integriti sistem kawalan dalaman Kumpulan, termasuk mengkaji keberkesanannya.

Seperti mana sistem kawalan dalaman yang lain, sistem kawalan dalaman Kumpulan direka untuk mengurus dan bukannya untuk menghapuskan risiko kegagalan bagi mencapai objektif perniagaan. Oleh itu, sistem ini hanya boleh menyediakan jaminan munasabah, bukannya jaminan mutlak terhadap salah nyata penting atau kerugian.

Proses mengenal pasti, menilai dan mengurus risiko utama yang dihadapi oleh Kumpulan ialah satu proses yang berterusan dan ini termasuk mengkaji dan mengemas kini sistem kawalan dalaman apabila terdapat perubahan pada persekitaran perniagaan, operasi atau garis panduan pengawalseliaan.

Penyata kawalan dalaman anak-anak syarikat perbankan dan takaful diluluskan oleh Jawatankuasa Audit dan Lembaga Pengarah masing-masing.

PROSES kAwAlAN DAlAMAN UTAMA

• Pengurusan Risiko

BHB menyemak rangka kerja pengurusan risiko perusahaan Kumpulan dan menggunakan khidmat profesional bagi membantu kerja penyemakan dengan tujuan untuk memformalkan proses pengenalpastian, penilaian, pengurusan dan pemantauan risiko utama yang dihadapi pada peringkat Kumpulan.

Meskipun demikian, anak-anak syarikat perbankannya mempunyai rangka kerja pengurusan risiko yang kukuh yang menyediakan asas untuk menguruskan risiko yang berkaitan dengan perniagaan perbankan. Ini termasuklah pengurusan risiko kredit, risiko pasaran, risiko operasi, risiko syariah dan risiko kecairan.

Bagi anak syarikat takaful, pihak pengurusan sedang mengambil langkah untuk memperbaik proses pengurusan risikonya dalam bidang operasi, kewangan dan bidang yang lain.

• Jawatankuasa Audit

Jawatankuasa Audit BHB dan anak-anak syarikatnya yang utama mengkaji isu kawalan dalaman yang dikenal pasti oleh juruaudit dalaman, juruaudit luar, badan pengawalseliaan dan pihak pengurusan sendiri, dan mempertimbangkan tindakan yang telah/akan diambil, dan sekiranya perlu, menyarankan tindakan selanjutnya untuk menangani isu kawalan dalaman ini.

Jika terdapat isu yang khusus pihak pengurusan anak-anak syarikat akan

dijemput menghadiri mesyuarat Jawatankuasa Audit BHB untuk berbincang dan membuat pertimbangan

• Audit Dalaman

Fungsi audit dalaman BHB dan anak syarikat milik penuhnya sebelum ini dilakukan oleh Jabatan audit dalaman anak syarikat perbankan BHB. Dengan struktur pemegang saham yang baru di peringkat anak syarikat perbankan, BHB mewujudkan fungsi Audit Dalaman yang merangkumi BHB dan anak syarikat milik penuhnya.

Audit Dalaman anak syarikatnya yang utama melaporkan kepada Jawatankuasa Audit anak-anak syarikat masing-masing. Pelan audit disemak semula dan diluluskan oleh Jawatankuasa Audit anak-anak syarikat masing¬masing dan penemuan audit diserahkan kepada Jawatankuasa Audit untuk semakan semasa mesyuarat berkala.

Jabatan audit dalaman telah melakukan penilaian kendiri terhadap fungsi-¬fungsinya bagi meningkatkan lagi keberkesanan dan kecekapan mereka.

• BHB dan anak-anak syarikatnya mempunyai struktur organisasi dengan tanggungjawab yang jelas. Pelbagai jawatankuasa pengurusan ditubuhkan oleh anak-anak syarikatnya yang utama bagi membantu Lembaga masing¬masing dalam amalan perniagaan syarikat.

• BHB mempunyai wakil Lembaga dalam setiap anak syarikat.

• Had kuasa, dasar dan prosedur didokumenkan.

• Pelan perniagaan dan belanjawan anak-anak syarikat utama diluluskan oleh Lembaga masing-masing. Prestasi dinilai berdasarkan belanjawan dan penerangan diberikan secara berkala kepada Lembaga masing-masing dan Lembaga BHB jika terdapat pertentangan yang ketara.

• Anak-anak syarikat mempunyai garis panduan dalam melaksanakan sistem pengambilan pekerja, pemberhentian, penilaian prestasi dan latihan. Anak-anak syarikat juga mempunyai kod perilaku/ etika yang menerangkan perlakuan yang diharapkan daripada pekerja.

• Anak syarikat telah mengenalpasti teknologi maklumat adalah kunci kepada kejayaan perniagaan dan telah mengambil keputusan untuk mengganti sistem untuk memenuhi keperluan perniagaan semasa dan masa hadapan.

• Kumpulan sedang melaksanakan penstrukturan semula operasi dan sedang menyusun inisiatif yang strategik untuk memperkemas perniagaan dan operasi serta memanfaatkan sinergi yang dijangkakan dalam Kumpulan.

• Pengurusan anak syarikat Takaful juga mengambil langkah yang perlu untuk menangani isu kawalan kewangan atau risiko, yang mencakup pengukuhan proses penutupan kewangan dan proses penyesuaian dan mewujudkan pasukan yang berdedikasi bagi menangani bidang perakaunan yang khusus.

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Statement on Internal Control

• Risk Management

BHB is reviewing its group enterprise risk management framework and has engaged a professional service provider to assist the review with the objective of formalising the process of identifying, evaluating, managing and monitoring the significant risks faced at the Group level.

Notwithstanding the above, its banking

subsidiary has an established risk management framework which provides the foundation to manage the risks associated with its banking business. This includes the management of credit risk, market risk, operational risk, syariah risk and liquidity risk.

For the takaful subsidiary, the management is taking steps to improve its risk management process in the areas ofoperational, financial and other areas.

• Audit Committee

The Audit Committees of BHB and its major subsidiaries review internal control issues identified by the respective internal auditors, external auditors, regulatory authorities and the management themselves, and deliberate on the actions taken/to be taken, and when necessary, recommend further actions to address the internal control issues. Where there are specific issues, management of the subsidiaries are invited to BHB Audit Committee meeting for discussion and deliberation.

The Board of Directors (“Board”) recognises the importance of maintaining a sound system of internal control and risk management practices to ensure good corporate governance. The Board affirms its responsibilities for reviewing the adequacy and integrity of the Group’s system of internal control, including the review of its effectiveness.

As with any internal control system, the Group’s system of internal control is designed to manage rather than eliminate the risk of failure to achieve business objectives. As such, the system can only provide reasonable but not absolute assurance against material misstatement or loss.

The process of identifying, evaluating and managing the significant risks faced by the Group is an on-going process and includes reviewing and updating the internal controls system when there are changes to business environment, operations or regulatory guidelines.

The banking and takaful subsidiaries’ statement on internal control are approved by their respective Audit Committee and Board.

kEY INTERNAl CONTROl PROCESSES

• Internal Audit The internal audit function for BHB

and its wholly-owned subsidiaries was formerly carried out by the internal audit department of BHB’s banking subsidiary. With the new shareholding structure at the banking subsidiary, BHB is establishing an IA function which will cover BHB and its wholly-owned subsidiaries.

The Internal Audit of its major subsidiaries reports to the respective subsidiaries’ Audit Committee. The audit plans are reviewed and approved by the respective subsidiaries’ Audit Committees and the audit findings are submitted to the Audit Committees for review at their periodic meetings.

The internal audit departments conducts self-assessment of their functions and continuously improves themselves to further enhance their effectiveness and efficiency.

• BHB and its subsidiaries have organisational structures with clear lines of responsibility. Various management committees are established by the major subsidiaries to assist their respective Boards in the conduct of the companies’ business.

• BHB has Board representations in all the subsidiaries.

• Limits of authority, policies and procedures are documented.

• The major subsidiaries’ business plans and budgets are approved at their respective Boards. The performance is assessed against the budgets and explanations are provided for significant variances on a regular basis to the respective Boards and BHB Board.

• There are guidelines within the subsidiaries for hiring, termination, performance appraisals and training. Subsidiaries also have code of conduct/ethics which express the conduct expected of their employees.

• Subsidiaries within the Group recognise that IT is key to their businesses and have decided to replace various systems to accommodate current and future business requirements.

• The Group is undergoing operational restructuring. It is putting in place strategic initiatives to streamline businesses and operations and to take advantage of anticipated synergies within the Group.

• The takaful subsidiary’s management is also taking measures to address the financial control issues or risks, which include strengthening the financial closing process and reconciliation process and setting dedicated team to address specific accounting areas.

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Maklumat Pematuhan Tambahan

1. Pembelian Balik Saham BHB tidak membeli sebarang sahamnya sendiri pada tahun kewangan berakhir 30 Jun 2007.

2 Pelaksanaan Opsyen, waran atau Urusan Sekuriti Boleh Tukar Sepanjang tahun kewangan ini, tiada sebarang Skim Opsyen Syer Kakitangan (ESOS) BHB yang dilaksanakan. Setakat 30

Jun 2007, ESOS yang berikut tidak terpakai:

(i) 45,868,500 ESOS 1997/2007 dengan harga guna hak RM2.13; dan(ii) 5,044,000 ESOS 1997/2007 dengan harga guna hak RM2.43.

ESOS di atas telah luput pada 21 Ogos 2007.

BHB tidak menerbitkan sebarang sekuriti boleh tukar pada tahun kewangan berakhir 30 Jun 2007.

3. American Depository Receipt (ADR) atau Global Depository Receipt (GDR) BHB tidak menaja sebarang program ADR atau GDR pada tahun kewangan berakhir 30 Jun 2007.

4 Fi Bukan Audit Jumlah fi bukan audit yang dibayar/perlu dibayar oleh BHB kepada juruaudit luar serta syarikat bersekutunya bagi tahun

kewangan berakhir 30 Jun 2007 tertera pada nota 29 pada muka surat 128 dalam Laporan Tahunan ini.

5 Jaminan keuntungan BHB tidak memberi sebarang jaminan keuntungan pada tahun kewangan.

6 Senarai Harta Tanah Senarai harta tanah dinyatakan pada muka surat 147 hingga 156 dalam Laporan Tahunan ini.

7 kontrak Penting BHB dan kesemua anak syarikatnya tidak memeterai sebarang kontrak penting sepanjang tahun kewangan berakhir 30 Jun

2007 selain daripada yang tertera di bawah dan yang berkaitan dengan urusan perniagaan mereka yang lazim:

i) Perjanjian Jualan Saham (SSA) bertarikh 22 Disember 2005 antara BHB dan Permodalan Nasional Berhad (PNB) bagi pembelian oleh BHB daripada PNB sebanyak 49 juta saham BIMBSEC yang mencakupi 49% kepentingan ekuiti dalam BIMBSEC, dengan pertimbangan belian sebanyak RM54,453,202.65 melalui terbitan 46,942,416 saham BHB baru pada harga terbitan RM1.16 bagi setiap saham BHB. Pada 21 April 2006, BHB dan PNB telah sepakat untuk menangguhkan tarikh kepada empat (4) bulan lagi sehingga tarikh luput pada 22 Oktober 2006 bagi memenuhi syarat-syarat terdahulu berkaitan SSA tersebut pada 22 April 2006. pada 20 Oktober 2006, BHB dan PNB sepakat untuk menangguhkan tarikh penyempurnaan SSA yang asalnya berakhir pada atau sebelum 12 November 2006 hingga 1 Mac 2007.

ii) Perjanjian Utama Berarah (HOA) bertarikh 7 Januari 2006 antara BHB, Bank Islam dan Dubai Financial LLC (DF) bagi membolehkan DF melanggan saham biasa baru dalam Bank Islam setara dengan 49% daripada jumlah keseluruhan modal saham terbitan dan berbayar Bank Islam setelah selesai urusan langganan tersebut. HOA ini mencerminkan persefahaman bersama antara DF, BHB dan Bank Islam apabila Bank Islam dan BHB bersetuju untuk memberikan DF tempoh eksklusif untuk menelitinya selama 30 hari bermula dari tarikh penerimaan kelulusan dari BNM. HOA ini akan tamat selepas 90 hari dari tarikh termeterainya perjanjian atau mana-mana tarikh sebagaimana dipersetujui secara bertulis oleh kesemua pihak yang terlibat. HOA telah diambil alih oleh para pemegang saham dan Perjanjian Langganan bertarikh 30 Jun 2006.

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Additional Compliance Information

1 Share Buybacks BHB did not purchase any of its own shares during the financial year ended 30 June 2007.

2 Options, warrants or Convertible Securities Exercised During the financial year under review, none of BHB’s Employees’ Share Option Scheme (ESOS) outstanding were exercised.

As at 30 June 2007, the following ESOS were outstanding:- i) 45,868,500 ESOS 1997/2007 with an exercise price of RM2.13; and ii) 5,044,000 ESOS 1997/2007 with an exercise price of RM2.43. The above ESOS expired on 21 August 2007. BHB has not issued any convertible securities in respect of the financial year ended 30 June 2007.

3 American Depository Receipt (ADR) or Global Depository Receipt (GDR) BHB has not sponsored any ADR or GDR programme in the financial year ended 30 June 2007.

4 Non-Audit Fees The amount of non-audit fees paid/payable to external auditors and their affiliated companies by BHB for the financial year

ended 30 June 2007 is set out in note 29 on page 128 of this Annual Report.

5 Profit Guarantee There was no profit guarantees given by BHB during the financial year under review.

6 list of Properties The list of properties is set out on page 147 to 156 of the Annual Report.

7 Material Contracts Save as disclosed below, neither BHB nor its subsidiaries have entered into any contracts which are material, during the

financial year ended 30 June 2007, other than contracts entered into in their ordinary course of business:

(i) Share Sale Agreement (SSA) dated 22 December 2005 between BHB and Permodalan Nasional Berhad (PNB) for the acquisition by BHB from PNB of 49 million BIMBSEC Shares, representing 49% equity interest in BIMBSEC, for a purchase consideration of RM54,453,202.65 to be satisfied via the issuance of 46,942,416 new BHB Shares at an issue price of RM1.16 per BHB Share. On 21 April 2006, both BHB and PNB have mutually agreed to extend the date for fulfilling the conditions precedent of the SSA which was due on 22 April 2006 for a further two (2) months to expire on 22 June 2006. On 21 June 2006, both BHB and PNB have mutually agreed to extend the date for fulfilling the conditions precedent of the SSA which was due on 22 June 2006 for a further four (4) months to expire on 22 October 2006. On 20 October 2006, both BHB and PNB have mutually agreed to extend the completion date of the SSA which was originally due on or before 12 November 2006 to 1 March 2007.

(ii) Indicative Heads of Agreement (HOA) dated 7 January 2006 between BHB, Bank Islam and Dubai Financial LLC (DF) for DF to subscribe for new ordinary shares in Bank Islam equivalent to 49% in the total issued and paid-up share capital of Bank Islam after the said subscription. The HOA reflects the mutual understanding between DF, BHB and Bank Islam where Bank Islam and BHB agree to grant DF a 30-day exclusivity period for due diligence commencing from the date of receipt of approval from BNM and the HOA will expire after 90 days from the date of signing or such other later or earlier date as mutually agreed between the parties in writing. The HOA have now been superceded by the Shareholders and Subscription Agreement dated 30 June 2006.

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Maklumat Pematuhan Tambahan

iii) Satu perjanjian bertarikh 2 Disember 2005 antara BHB dengan LTH memberikan pendahuluan pemegang sahamkepada BHB sebanyak RM280 juta, yang telah digunakan sepenuhnya oleh BHB bagi melanggan saham biasa baru Bank Islam bernilai RM1.00 setiap satu. Bank Islam merupakan anak syarikat milik penuh BHB. BHB harus membayar balik pendahuluan tersebut dalam jangkamasa tidak melebihi satu dari tarikh penjualan dengan cara agihan dan terbitan saham BHB selaras dengan cadangan terbitan hak boleh ditarik-balik sehingga 306,938,750 saham baru BHB pada harga terbitan RM1.00 setiap satu saham terbitan hak, pada asas satu saham terbitan hak bagi setiap dua saham BHB sedia ada;

iv) Perjanjian Pemegang Saham bertarikh 30 Jun 2006 antara BHB, Bank Islam, LTH dan DF untuk melanggan 845,490,000 saham Bank Islam pada harga terbitan RM1.20 sesaham untuk pertimbangan jumlah tunai sebanyak RM1,014,588,000 merupakan anggaran sebanyak 49.0% daripada modal saham terbitan dan berbayar Bank Islam yang diperbesar selepas penyempurnaan Cadangan Terbitan terhad oleh Bank Islam.

v) Perjanjian Langganan kepada DF bertarikh 30 Jun 2006 antara BHB, Bank Islam dan DF berhubung dengan cadangan terbitan terhad sebanyak 690,196,000 saham baru Bank Islam kepada DF pada harga terbitan RM1.20 sesaham pertimbangan jumlah tunai sebanyak RM828,235,200.00 yang mewakili 40% daripada modal saham dan berbayar Bank Islam yang diperbesar selepas Cadangan Terbitan Terhad oleh Bank Islam selesai.

vi) Perjanjian Langganan kepada LTH bertarikh 30 Jun 2006 antara BHB, Bank Islam dan LTH berhubung dengan cadangan terbitan terhad sebanyak 155,294,000 saham baru Bank Islam kepada LTH pada harga terbitan RM1.20 setiap saham Bank Islam dengan pertimbangan tunai berjumlah RM186,352,800.00 mewakili 9% daripada modal saham terbitan dan berbayar Bank Islam yang diperbesar setelah Cadangan Terbitan Terhad oleh Bank Islam selesai.

8 Penggunaan Sekatan dan/atau Penalti Sepanjang tahun kewangan ini BHB atau semua anak syarikatnya, Pengarah atau pihak Pengurusan tidak dikenakan

sebarang sekatan dan/atau penalty hasil daripada sebarang pelanggaran peraturan/garis panduan/perundangan oleh mana-mana pihak berkuasa.

9 Variasi dalam keputusan Tidak terdapat variasi dalam keputusan (perbezaan sebanyak 10% atau lebih) daripada sebarang keputusan ramalan/

anggaran/jangkaan keuntungan tidak teraudit yang diumumkan. Tiada sebarang pengumuman mengenai ramalan, jangkaan atau keuntungan tidak teraudit bagi tahun kewangan berakhir 30 Jun 2007.

10 Penggunaan Hasil yang diperoleh semasa usaha korporat dijalankan Sepanjang tempoh tahun kewangan ini usaha pengumpulan dana yang dilakukan oleh BHB adalah seperti berikut:

i) Hasil yang berjumlah RM281,482,480 daripada terbitan hak yang boleh ditarik balik melibatkan, antara lain, terbitan 281,482,480 saham biasa baru pada harga RM1.00 sesaham biada digunakan seperti berikut:-

Keterangan Penggunaan yang Diluluskan Penggunaan Sebenar RM(‘juta) RM(‘juta)

Bayaran semula bagi pendahuluan pemegang saham 280.00 280.00 Bayaran bagi anggaran perbelanjaan Cadangan 1.48 1.48

Jumlah hasil 281.48 281.48

ii) Pada 9 April 2007, BHB menerbitkan saham biasa baru dengan nilai RM1.00 setiap satu dalam BHB dengan harga terbitan RM1.16 sesaham BHB bagi penyelesaian bagi cadangan perolehan oleh BHB sebanyak 49 juta saham biasa dengan harga RM1.00 setiap satu dalam BIMBSEC yang mewakili 49% kepentingan ekuiti dalam BIMBSEC, daripada PNB bagi pertimbangan pembelian kira-kira RM54.45 juta.

Pelaksanaan usaha korporat di atas (i) & (ii) sudah diluluskan oleh Para Pemegang Saham BHB pada 14 Jun 2006.

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Additional Compliance Information

(iii) An agreement dated 2 December 2005 between BHB and LTH, for LTH to extend a shareholder’s advance to BHB amounting to RM280 million, which was fully drawndown by BHB to subscribe for new ordinary shares of RM1.00 each in our wholly-owned subsidiary, Bank Islam. The advance is to be repaid by BHB no later than one year from the date of draw down through allotment and issuance of BHB shares in accordance with the proposed renounceable rights issue of up to 306,938,750 new BHB shares at an issue price of RM1.00 per Rights share, on the basis of one Rights share for every two existing BHB shares.

(iv) Shareholders’ Agreement dated 30 June 2006 between BHB, Bank Islam, LTH and DF to subscribe for 845,490,000 new Bank Islam Shares at an issue price of RM1.20 per Bank Islam Share for a total cash consideration of RM1,014,588,000 representing approximately 49.0% of the enlarged issued and paid-up share capital of Bank Islam after the completion of the Proposed Restricted Issue by Bank Islam;

(v) Subscription Agreement to DF dated 30 June 2006 between BHB, Bank Islam and DF in relation to the proposed restricted issue of 690,196,000 new Bank Islam shares to DF at an issue price of RM1.20 per Bank Islam share for a total cash consideration of RM828,235,200.00 representing 40.0% of the enlarged issued and paid-up share capital of Bank Islam after the completion of the Proposed Restricted Issue by Bank Islam.

(vi) Subscription Agreement to LTH dated 30 June 2006 between BHB, Bank Islam and LTH in relation to the proposed restricted issue of 155,294,000 new Bank Islam shares to LTH, at an issue price of RM1.20 per Bank Islam Share for a cash consideration of RM186,352,800.00 representing approximately 9.0% of the enlarged issued and paid up capital of Bank Islam after the completion of the Proposed Restricted Issue by Bank Islam.

8 Imposition of Sanctions and/or Penalties There were no sanctions and/or penalties imposed on the Company and its subsidiaries, Directors or Management arising

from any significant breach of rules/guidelines/legislations by the relevant regulatory bodies during the financial year under review.

9 Variation in Results There was no variation in results (differing by 10% or more) from any profit estimation forecast/projection unaudited

results announced. There was no profit forecast, projection or unaudited results made or announced for financial year ended 30 June 2007.

10 Utilisation Proceeds Raised during Corporate Exercise During the financial year, the fund raising exercise undertaken by BHB are as follows:-

i) The proceeds totaling RM281,482,480 from the renounceable rights issue involving, inter alia, the issue of 281,482,480 new ordinary shares at the price of RM1.00 per ordinary share were utilised as follows:-

Description Approved Utilisation Actual Utilisation RM (‘million) RM (‘million)

Repayment of shareholder’s advance 280.00 280.00 Payment of estimated expenses of the Proposals 1.48 1.48

Total proceeds 281.48 281.48

ii) On 9 April 2007, BHB issued 49,942,416 new ordinary shares of RM1.00 each in BHB at an issue price of RM1.16 per BHB share as settlement for the proposed acquisition by BHB of 49 million ordinary shares of RM1.00 each in BIMBSEC representing 49% equity interest in BIMBSEC, from PNB for a purchase consideration of approximately RM54.45 million.

The above corporate exercise (i) & (ii) was approved by the Shareholders of BHB on 14 June 2006.

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Maklumat Pematuhan Tambahan

lTHLTH terlibat terutamanya dalam BHB menggalakkan ahli menunaikan ibadah haji ke Mekah selain pengurusan deposit dan pelaburan mereka.

PNBPNB terlibat terutamanya dalam pegangan pelaburan dan perkhidmatan rundingan pengurusan.

Amanah saham Bumiputra (ASB)ASB ialah skim dana amanah saham yang diasaskan oleh PNB..

kumpulan wang Simpanan Pekerja (kwSP)KWSP merupakan badan berkanun ditubuhkan di bawah Akta KWSPBHB 1991 terutamanya untuk pengurusan dana wang simpanan.

• Fi pembrokeran kena dibayar kepada BHB

• Sewa premis pejabat kena dibayar oleh BHB

• Fi pembrokeran kena dibayar kepada BHB

• Fi pembrokeran kena dibayar kepada BHB

• Fi pembrokeran kena dibayar kepada BHB

• Sewa premis pejabat oleh BHB ±

LTH merupakan pemegang saham utama 383.5 BHB dengan pemegang saham sebanyak 41.92%.

Tan Sri Samsudin bin Osman ialah Pengarah Nomini LTH dalam BHB.

Datuk Ismee bin Ismail adalah Pengarah Urusan Kumpulan dan Ketua Pegawai Eksekutif LTH dan juga Pengarah BHB (tidak mempunyai pegangan saham secara terus/tidak terus dalam LTH).

PNB merupakan pemegang saham utama 191.7 BHB dengan pegangan saham sebanyak 14.69%.

Dato’ Dr Abdul Halim bin Ismail, Encik Salih Amaran bin Jamian dan Datuk Burhanuddin bin Ahmad Tajuddin ialah Pengarah Nomini PNB dalam BHB.

ASB merupakan pemegang saham utama BHB dengan pegangan saham 9.54% dicagar dengan Amanah Raya Nominees (Tempatan) Sdn Bhd.

ASB ialah anak syarikat milik penuh PNB

KWSP merupakan pemegang saham utama BHB dengan pegangan saham sebanyak 5.57%

383.5

2,259.6

191.7

644.0

546.2

276.0

11 Mandat Am Pada AGM yang lepas, BHB telah memperoleh mandate am daripada para pemegang sahamnya untuk membenarkan

BHB dan/ atau anak-anak syarikat menjalankan urusan perniagaan biasa mereka dengan memasuki urusniaga berulang dalam bentuk hasil atau perniagaan yang mana perlu bagi operasi hariannya, dengan mana-mana pihak berkaitan. Mandat ini terpakai selagi termanya tidak memihak kepad pihak berkaitan berbanding yang tersedia kepada masyarakat umum dan tidak memudaratkan para pemegang saham minority (RRPT). Mandat RRPT sah sehingga tamatnya AGM BHB yang akan datang Lembaga Pengarah bercadang memperbaharui mandate RRPT pada AGM BHB akan datang. Mandat ini, jika diluluskan oleh para pemegang saham, akan sah sehingga AGM BHB tahun beikutnya.

12 Urusniaga Berulang Pihak Berkaitan

Bentuk urus niaga** Pihak Berkaitan/ Pengarah dan/ atau pemegang saham Nilai Aktiviti ASAS utama yang berminat# urusniaga sebenar (RM’000)*

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Additional Compliance Information

lTHLTH is principally involved in promoting members’ pilgrimage to Makkah, as well as managing their deposits and investment.

PNBPNB is principally involved in investment holding and provision of management consultancy services.

Amanah Saham Bumiputra (ASB) ASB is a fund scheme initiated under PNB.

Employee’s Provident Fund Board (EPF)EPF is a statutory body formed under EPF ACT 1991 principally involved in provident fund.

• Brokerage fees payable to BHB

• Rental of office premises payable by BHB

• Brokerage fees payable to BHB

• Brokerage fees payable to BHB

• Brokerage fees payable to BHB

• Rental of office premises payable by BHB ±

LTH is a major shareholder of BHB with 41.92% shareholding.

Tan Sri Samsudin bin Osman is a nominee director of LTH in BHB.

Datuk Ismee bin Ismail is the Group Managing Director and Chief Executive Officer of LTH and also a Director of BHB (has no direct/indirect shareholdings in LTH).

PNB is a major shareholder of BHB with 14.69% shareholding.

Dato’ Dr Abdul Halim bin Ismail, Encik Salih Amaran bin Jamiaan and Datuk Burharuddin bin Ahmad Tajuddin are nominee directors of PNB in BHB.

ASB is a major shareholder of BHB with 9.54%, registered under Amanah Raya Nominees (Tempatan) Sdn Bhd.

ASB is a wholly-owned subsidiary of PNB.

EPF is a major shareholder of BHB with 5.57% shareholding.

383.5

2,259.6

191.7

644.0

546.2

276.0

11 General Mandate BHB had, at the last AGM obtained a general mandate from its shareholders to allow BHB and/or its subsidiaries in their

normal course of business, to enter into recurrent transactions of a revenue or trading nature with related parties which are necessary for its day to day operations, on terms not more favourable to the related party than those available to the general public and not to the detriment of the minority shareholders (RRPT). The RRPT Mandate is valid until the conclusion of the forthcoming AGM of BHB. The Board proposes to seek renewal of the RRPT Mandate at the forthcoming AGM of the Company. This Mandate, if approved by shareholders, would be valid until the conclusion of the next AGM of the Company.

12 Recurrent Related Party Transaction

Nature of Transactions** Related Party/ Interested Director and/ Actual Principal Activities or Major Shareholder# Transactions Value (RM’000)*

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Bentuk urus niaga** Pihak Berkaitan/ Pengarah dan/ atau pemegang saham Nilai Aktiviti ASAS utama yang berkepentingan# urusniaga sebenar (RM’000)*

Maklumat Pematuhan Tambahan

STMBSTMB terlibat secara khusus dalam perniagaan takaful keluarga dan takaful am.

BIMBSECBIMB Securities terlibat secra khusus dalam aktiviti pembrokeran saham dan berkaitan berdasarkan prinsip Syariah.

Bank Islam terlibat secara khusus dalam perbankan Islam dan aktiviti berdasarkan prinsip Syariah.

• Fi pengurusan portfolio STMB kepada BHB

• Sewa premis pejabat kena dibayar oleh BHB

• Fi pembrokeran kena dibayar kepada BHB

• Fi pengurusan portfolio kena dibayar kepada BHB

• Sewa sistem komputer kepada BHB±

• Sewa kenderaan kena dibayar kepada BHB±

• Sewa premis pejabat kena dibayar kepada BHB±

• Sewa premis pejabat kena dibayar kepada BHB±

• Fi pengurusan kena dibayar oleh BHB±

Dato’ Noorazman bin A. Aziz merupakan seorang Pengarah BHB dan juga Pengarah STMB.

Dato’ Dr Abdul Halim bin Ismail merupakan seorang Pengarah BHB juga Pengarah Eksekutif BSSB.

Datuk Burhanuddin bin Ahmad Tajuddin merupkan seorang Pengarah BHB dan juga Pengarah BSSB.

Dato’ Noorazman bin A. Aziz, Dato’ Mohd Bakke bin Salleh, Datuk Ismee bin Ismail, Zaiton Binti Mohd Hassan dan Zahari @ Mohd Zin bin Idris merupakan Pengarah BHB dan mereka juga ialah Pengarah BIMB.

550.0

8,139.0

252.6

3.4

28,145.0

88.0

12.0

399.0

325.0

* Nilai transaksi sebenar diperoleh daripada Laporan Tahunan tahun kewangan berakhir 30 Jun 2007# Fi pihak pengurusan merupakan fi dibayar kepada BIMBSEC Aset Management Sdn Bhd bagi dana yang ditempatkan/ dilaburkan dengan

mereka oleh syarikat dalam Kumpulan terutamanya BHB dan Bank islam.+ Jenis transaksi – transaksi baru** Jenis transaksi – transaksi sedia ada

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STMBSTMB is principally involved in family and general takaful business.

BIMBSECBSSB is principally involved in the provision of stock broking and related activities based on the principles of Shariah.

Bank IslamBIMB is principally involved in the provision of Islamic banking and related activies based on the principles of Shariah.

• Portfolio management fees payable to BHB

• Rental of office premises payable by BHB

• Brokerage fees payable to BHB

• Portfolio management fees payable to BHB

• Rental of computer system payable to BHB±

• Rental of motor vehicle payable to BHB±

• Rental of office premises payable to BHB±

• Rental of office premises payable by BHB±

• Management fees payable by BHB±

Dato’ Noorazman A. Aziz is a Director of BHB and also a Director of STMB.

Dato’ Dr Abdul Halim bin Ismail is a Director of BHB and also an Executive Director of BIMBSEC.

Datuk Burhanuddin Ahmad bin Tajuddin is Director of BHB and also a Director of BIMBSEC.

Dato’ Noorazman bin A. Aziz, Dato’ Mohd Bakke bin Salleh, Datuk Ismee Ismail, Zaiton binti Mohd Hassan and Zahari @ Mohd Zin bin Idris are Directors of BHB and they are also Directors of Bank Islam.

550.0

8,139.0

252.6

3.4

28,145.0

88.0

12.0

399.0

325.0

Nature of Transactions** Related Party/ Interested Director and/ Actual Principal Activities or Major Shareholder# Transactions Value (RM’000)*

* The actual transaction value is extracted from the Annual Report for the financial year ended 30 June 2007.# Management fees are fees payable to BIMSEC Asset Management Sdn Bhd for the fund placed/invested with them by our Group

Companies especially BHB and Bank Islam± Nature of transaction – new transactions** Nature of transactions – existing transaction

Additional Compliance Information

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Sorotan 20072007 Highlights

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lAUNCH OF wAkAF lAND FOR CONSTRUCTION OF MENARA MAIwP Prime Minister, YAB Dato’ Seri Abdullah Ahmad Badawi officially launched a project for the development of Wakaf Land at Lot 168/169 located along the golden triangle in Jalan Perak, Kuala Lumpur. The ground-breaking ceremony marks the beginning of the construction phase of a RM151 million Menara Majlis Agama Islam Wilayah Persekutuan (MAIWP). The 34-storey office building is scheduled for completion in 2010, with Bank Islam as the anchor tenant. The 0.48 hectar Wakaf Land is a dedicated property willed by an Indian Muslim merchant, Allahyarham Ahmad Dawjee Dadabhoy. To date, the land is valued at RM34 million and being developed by TH Technologies Sdn Bhd, a wholly-owned subsidiary of LTH.

08 | 06 | 2007

PElANCARAN TANAH wAkAF BAGI PEMBINAAN MENARA MAIwP Perdana Menteri, Yang Amat Berhormat Dato’ Seri Abdullah Ahmad Badawi dengan rasminya telah melancarkan projek bagi memajukan Tanah Wakaf di Lot 168/169 yang terletak di sepanjang segi tiga emas di Jalan Perak, Kuala Lumpur. Upacara pecah tanah itu menandakan bermulanya fasa pembinaan Menara Majlis Agama Islam Wilayah Persekutuan (MAIWP) yang bernilai RM151 juta. Bangunan pejabat 34-tingkat ini dijadualkan siap pada tahun 2010, dengan Bank Islam sebagai penyewa utama. Tanah Wakaf seluas 0.48 hektar ini merupakan harta pemberian yang diwakafkan oleh seorang hartawan India Muslim, iaitu Allahyarham Ahmad Dawjee Dadabhoy. Sehingga kini, tanah ini bernilai RM34 juta dan dimajukan oleh TH Technologies Sdn Bhd, anak syarikat milik penuh LTH.

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Sorotan 20072007 Highlights

28 | 06 | 2007

lAwATAN IMAM DARI NEGARA CHINA

Satu kumpulan Imam Muda dari Negara China melawat STMB untuk menimba pengetahuan, mempelajari dan mendalami ilmu mengenai kewangan Islam terutamanya tentang takaful. Penerangan mengenai konsep dan sistem Takaful di Malaysia telah dikendalikan oleh Jabatan Syariah STMB.

VISIT BY YOUNG IMAMS FROM CHINA

A group of Young Imams from China visited STMB to gain knowledge, learn and explore more about Islamic finance especially takaful. The presentation on concept and system of Takaful in Malaysia was conducted by STMB’s Syariah Department.

07 | 09 | 2007

BANk ISlAM MENCATAT kEUNTUNGAN TERTINGGI DAlAM TEMPOH 24 TAHUN Bank Islam mengumumkan keuntungan sebelum zakat dan cukai tertingginya sebanyak RM255.50 juta daripada hasil sebanyak RM1.03 bilion, berbanding dengan kerugian sebelum zakat dan cukai sebanyak RM1.28 billion daripada hasil sebanyak RM948.9 juta pada tahun kewangan 2006. Prestasi cemerlang ini disebabkan pemulihan operasi dan program pemulihan pinjaman Bank yang intensif. BANk ISlAM RECORDS HIGHEST PROFIT IN 24 YEARS Bank Islam announced its highest profit before zakat and tax of RM255.50 million on revenue of RM1.03 billion compared with a loss before zakat and tax of RM1.28 billion on revenue of RM948.9 million in financial year 2006. The strong performance was attributable to operational turnaround and the Bank’s intensive loan-recovery programme.

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Sorotan 20072007 Highlights

21 | 08 | 2007

PElANCARAN IDENTITI kORPORAT BARU

Menteri di Jabatan Perdana Menteri, iaitu Yang Berhormat Dato’ Dr. Abdullah Md Zin memperkenalkan identiti baru korporat Bank Islam pada majlis rasmi pelancaran yang diadakan di cawangan Bank Islam Shah Alam yang telah diubah suai. Upacara yang bersejarah ini juga menyaksikan menteri berkenaan melancarkan cawangan Bank Islam Shah Alam yang telah dibentuk semula dan laman web korporat Bank yang baru. Identiti baru ini adalah hasil daripada usaha Penjenamaan Semula Bank Islam, iaitu sebahagian daripada Pelan Pemulihan Bank.

lAUNCH OF NEw CORPORATE IDENTITY

Minister at the Prime Minister’s Office Yang Berhormat Dato’ Dr. Abdullah Md Zin unveiled Bank Islam’s new corporate identity at an official launch ceremony held at the Bank’s remodeled branch in Shah Alam. The historical event also saw the minister launching the Shah Alam branch and Bank Islam’s revamped corporate website. The new identity is a result of Bank Islam’s Rebranding Exercise, which is part of the Bank’s Turnaround Plan.

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17 | 09 | 2007

kERJASAMA STRATEGIk BERSAMA EUROPEAN ISlAMIC INVESTMENT BANk

Bank Islam menjalin kerjasama strategik dengan European Islamic Investment Bank PLC (EIIB) pada 17 September 2007. Perkongsian ini adalah bukti penglibatan terus bank yang jelas dalam pasaran Eropah. Perkongsian ini menyaksikan Bank Islam mendapat akses ke UK dan Eropah melalui EIIB, yang berpusat di London, sementara EIIB akan mendapat “tapak” bagi pengembangannya di Asia. Memorandum Persefahaman bagi kerjasama strategik ini dilakukan secara rasmi pada majlis menandatangani perjanjian di Kuala Lumpur. Pengarah Urusan Bank Islam, Dato’ Zukri Samat menandatangani perjanjian bagi pihak Bank, sementara EIIB diwakili oleh Pengarah Urusan mereka, Mr Jon Weguelin.

STRATEGIC COllABORATION wITH EUROPEAN ISlAMIC INVESTMENT BANk

Bank Islam entered into a strategic collaboration with the European Islamic Investment Bank PLC (EIIB) on 17 September 2007. The partnership is a testimony of the bank’s immediate and significant presence in the European market. The partnership sees Bank Islam gaining access to the UK and Europe through EIIB, which is based in London, while EIIB will gain a “foothold” for its expansion in Asia. The Memorandum of Understanding for the strategic collaboration was formalised at a signing ceremony in Kuala Lumpur. Bank Islam’s Managing Director Dato’ Zukri Samat signed for the Bank, while EIIB was represented by its Managing Director, Mr John Weguelin.

Sorotan 20072007 Highlights

Penyata KewanganFinancial Statements

73 Director’s Report

78 Statement by Directors

79 Report of the Shariah Supervisory Council

80 Statutory Declaration

81 Report of the Auditors

83 Balance Sheets

84 Income Statements

85 Consolidated Statements of Changes in Equity

88 Statements of Changes in Equity

89 Cash Flow Statements

91 Notes to the Financial Statements

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73

The Directors have pleasure in submitting their report and the audited financial statements of the Group and of the Company for the year ended 30 June 2007.

PrinciPal activities

The Company is principally engaged as an investment holding company with business transacted in accordance with Islamic principles, whilst the principal activities of the subsidiaries are as stated in Note 13 to the financial statements.

There has been no significant change in the nature of these activities during the financial year.

results Group company rM’000 rM’000

Profit for the year attributable to: Shareholders of the Company 799,322 18,353Minority interest 112,924 -

912,246 18,353

reserves and Provisions

There were no material transfers to or from reserves and provisions during the year under review.

dividends

There was no dividend paid during the year. The final ordinary dividend recommended by the Directors in respect of the year ended 30 June 2007 is 2.0 sen per share less tax at 26% totalling to RM13,192,571 (1.5 sen net per share).

Bad and douBtful financinG

Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that actions had been taken in relation to the writing off of bad financing and the making of provisions for doubtful financing, and have satisfied themselves that all known bad financing have been written off and adequate provisions had been made for bad and doubtful financing.

At the date of this report, the Directors are not aware of any circumstances that would render the amount written off for bad financing, or amount of the provision for doubtful financing in the financial statements of the Group and of the Company, inadequate to any substantial extent.

Director’s Report for the financial year ended 30 June 2007

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74

current assets

Before the financial statements of the Group and of the Company were made out, the Directors took reasonable steps to ascertain that any current assets, other than financing, which were unlikely to be realised in the ordinary course of business at their values as shown in the accounting records of the Group and of the Company have been written down to their estimated realisable value.

At the date of this report, the Directors are not aware of any circumstances that would render the values attributed to the current assets in the financial statements of the Group and of the Company to be misleading.

valuation Methods

At the date of this report, the Directors are not aware of any circumstances which have arisen which render adherence to the existing methods of valuation of assets or liabilities of the Group and of the Company to be misleading or inappropriate.

continGent and other liaBilities

At the date of this report, there does not exist:

(a) any charge on the assets of the Group and of the Company which has arisen since the end of the financial year and which secures the liabilities of any other person, or

(b) any contingent liabilities in respect of the Group and of the Company that has arisen since the end of the financial year other than those incurred in the ordinary course of the banking business.

No contingent or other liability of any company in the Group has become enforceable, or is likely to become enforceable within the period of twelve months after the end of the financial year which, in the opinion of the Directors, will or may substantially affect the ability of the Group and of the Company to meet its obligations as and when they fall due.

chanGe of circuMstances

At the date of this report, the Directors are not aware of any circumstances, not otherwise dealt with in this report or the financial statements that would render any amount stated in the financial statements of the Group and of the Company misleading.

iteMs of an unusual nature

Other than as disclosed in the financial statements, the results of the operations of the Group and of the Company for the financial year were not, in the opinion of the Directors, substantially affected by any item, transaction or event of a material and unusual nature.

There has not arisen in the interval between the end of the financial year and the date of this report any item, transaction or event of a material and unusual nature, likely to affect substantially the results of the operations of the Group and of the Company for the current financial year in which this report is made.

Director’s Report for the financial year ended 30 June 2007

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75

eMPloyee share oPtion scheMe

The Company’s Employee Share Option Scheme (“ESOS”) is governed by the by-laws which were approved by the shareholders of the Court-convened Extraordinary General Meeting held on 31 May 1997 and became effective on 21 August 1997 for a period of five years. At an Extraordinary General Meeting held on 20 August 2002, the shareholders of the Company approved the extension of the ESOS for a further period of five years to 21 August 2007.

The main features of the ESOS are:

(a) Eligible person are employees of the Company who have been confirmed in writing and are in the employment of the Company including full-time Executive Directors.

(b) The total number of shares to be offered shall not exceed 10% of the issued and paid up share capital of the Company at any point of time during the tenure of ESOS.

(c) The option price for each share shall be the average of the mean market quotation of the shares of the Company in the daily official list issued by Bursa Malaysia for the five trading days preceding the date of the offer, or the par value of the share of the Company of RM1, whichever is higher.

(d) The number of shares under the option, the option price and the method of exercise of the options may be adjusted as a result of any alteration of the capital structure of the Company by way of capitalisation of profits or reserve, right issues or reduction of capital, if any, made by the Company while an option remains unexercised.

(e) The movement in the options to take up unissued new ordinary shares of RM1 each and the option price are as follows:

option price at at rM 1.7.2006 Granted exercised 30.6.2007

2.13 45,868,500 - - 45,868,500 2.43 5,044,000 - - 5,044,000

directors

Directors who served since the date of the last report are:

Tan Sri Samsudin bin Osman (appointed on 1.2.2007) Dato’ Noorazman bin Abd. AzizDato’ Mohd Bakke bin SallehDato’ Dr. Abdul Halim bin IsmailDatuk Burhanuddin bin Ahmad TajudinDatuk Hairuddin bin MohamedDatuk Ismee bin IsmailZahari @ Mohd Zin bin IdrisZaiton binti Mohd HassanSalih Amaran bin Jamiaan

Director’s Report for the financial year ended 30 June 2007

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76

The holdings and deemed holdings in the ordinary shares of the Company and of its related corporations (other than wholly-owned subsidiaries) of those who were Directors at year end as recorded in the Register of Directors’ Shareholdings are as follows:-

number of ordinary shares of rM1 each at at 1.7.2006 acquired sold 30.6.2007

Company Dato’ Dr. Abdul Halim bin Ismail 1,400 - - 1,400

number of options over ordinary shares of rM1 each exercise price at at rM 1.7.2006 Granted exercised 30.6.2007

Dato’ Dr. Abdul Halim Ismail 2.13 250,000 - - 250,000

None of the other Directors holding office at 30 June 2007 had any interest in the ordinary shares of the Company and of its related corporations during the financial year.

directors’ Benefits

Since the end of the previous financial year, no Director of the Company has received nor become entitled to receive any benefit (other than benefits included in the aggregate amount of emoluments received or due and receivable by the Directors as shown in the financial statements or the fixed salary of a full time employee of the Company) by reason of a contract made by the Company or a related corporation with the Director or with a firm of which the Director is a member, or with a company in which the Director has a substantial financial interest.

There was no arrangement during and at the end of the financial year which had the object of enabling Directors of the Company to acquire benefits by means of the acquisition of share in or debentures of the Company or any other body corporate, other than share options granted pursuant to the ESOS.

issue of shares and deBentures

During the financial year, the Company issued a total of 328,424,896 new ordinary shares of RM1 each which comprised as follows:

(a) pursuant to the Company’s rights issue, 281,482,480 new ordinary shares were issued at par for a cash consideration of approximately RM281.5 million for working capital purposes; and

(b) pursuant to the Company’s acquisition of 49% interest in BIMB Securities Sdn Bhd, 46,942,416 new ordinary shares of RM1 each were issued at a price of RM1.16 per share for a total consideration of approximately RM54.4 million.

There were no other changes in the issued and paid-up capital of the Company during the financial year.

oPtions Granted over unissued shares

No options were granted to any person to take up unissued shares of the Company during the year.

Director’s Report for the financial year ended 30 June 2007

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77

auditors

The auditors, Messrs KPMG Desa Megat & Co., have indicated their willingness to accept re-appointment.

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

…………………………………………………………dato’ Mohd Bakke bin salleh

…………………………………………………………dato’ noorazman bin a. aziz

Kuala Lumpur,

Date: 29 October 2007

Director’s Report for the financial year ended 30 June 2007

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78

In the opinion of the Directors, the financial statements set out on pages 83 to 146 are drawn up in accordance with the provisions of the Companies Act, 1965 and applicable approved accounting standards for entities other than private entities issued by the Malaysian Accounting Standards Board as modified by Bank Negara Malaysia Guidelines so as to give a true and fair view of the state of affairs of the Group and of the Company as at 30 June 2007 and of the results of their operations and cash flows for the year ended on that date.

Signed in accordance with a resolution of the Directors:

…………………………………………………………dato’ Mohd Bakke bin salleh

…………………………………………………………dato’ noorazman bin a. aziz

Kuala Lumpur,

Date: 29 October 2007

Statement by Directors pursuant to Section 169(15) of the Companies Act, 1965

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79

The Shariah Supervisory Council (“SSC”) was established under the provision of Section 3(5)(b) of the Islamic Banking Act 1983 to advise the Group particularly on the operation of its banking business in order to ensure that they do not involve any element which is not approved by Islam.

The SSC takes the views of Shariah Committees of relevant authorities such as Bank Negara Malaysia and Securities Commission from time to time on issues relating to the industry.

The duties and responsibilities of SSC are to review, appraise and advise the Directors on the operations of the Group and of the Company’s business in order to ensure that they do not involve any element which is not approved by Islam.

The roles of SSC in monitoring the Group’s activities are as follows: -

a) Review the products and services to ensure conformity with the Shariah requirements.

b) Deliberate on Shariah issues pertaining to the day to day operations of the Group and of the Company and provide advice accordingly.

c) Form opinions on the operations of the Group and of the Company on whether they are Shariah compliant.

d) Educate on muamalat or Islamic transactions based on Shariah principles.

The roles of SSC with respect to zakat are as follows: -

a) Review and approve the computation of zakat payable for the year.

b) Advise on the distribution of zakat to the appropriate ‘asnaf’.

We, Mohd. Bakir Mansor and dr. ahmad shahbari @ sobri salamon, being two of the members of Shariah Supervisory Council of BIMB Holdings Berhad, do hereby confirm on behalf of the Council, that in our opinion, the operations of the Group and of the Company for the year ended 30 June 2007 have been conducted in conformity with the Shariah principles.

On behalf of the Council:

…………………………………………………………Mohd. Bakir Mansor

…………………………………………………………dr. ahmad shahbari @ sobri salamon

Kuala Lumpur,Date: 29 October 2007

Report of the Shariah Supervisory Council

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80

I, rusman amir Zaihan, the officer primarily responsible for the financial management of BIMB Holdings Berhad, do solemnly and sincerely declare that the financial statements set out on pages 83 to 146 are, to the best of my knowledge and belief, correct and I make this solemn declaration conscientiously believing the same to be true, and by virtue of the provisions of the Statutory Declarations Act, 1960.

Subscribed and solemnly declared by the above named in Kuala Lumpur on 29 October 2007

…………………………………………….rusman amir Zaihan

Before me:

Statutory Declarationpursuant to Section 169(16) of the Companies Act, 1965

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81

We have audited the financial statements set out on pages 83 to 146. The preparation of the financial statements is the responsibility of the Company’s Directors.

It is our responsibility to form an independent opinion, based on our audit, on the financial statements and to report our opinion to you, as a body, in accordance with Section 174 of the Companies Act, 1965 and for no other purpose. We do not assume responsibility to any other person for the content of this report.

We conducted our audit in accordance with approved Standards on Auditing in Malaysia. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by the Directors, as well as evaluating the overall financial statements presentation. We believe our audit provides a reasonable basis for our opinion.

In our opinion:

(a) the financial statements are properly drawn up in accordance with the provisions of the Companies Act, 1965 with such modifications and exceptions as have been determined by Bank Negara Malaysia pursuant to subsection 19 of Section 169 of the said Act and applicable approved accounting standards for entities other than private entities issued by the Malaysian Accounting Standards Board so as to give a true and fair view of:

i) the state of affairs of the Group and of the Company at 30 June 2007 and the results of their operations and cash flows

for the year ended on that date; and

ii) the matters required by Section 169 of the Companies Act, 1965 to be dealt with in the financial statements of the Group and of the Company; and

(b) the accounting and other records and the registers required by the Companies Act, 1965 to be kept by the Company have been properly kept in accordance with the provisions of the said Act.

The subsidiaries in respect of which we have not acted as auditors are identified in Note 13 to the financial statements and we have considered their financial statements and the auditors’ reports thereon. We are satisfied that the financial statements of the subsidiaries that have been consolidated with the Company’s financial statements are in form and content appropriate and proper for the purposes of the preparation of the consolidated financial statements and we have received satisfactory information and explanations required by us for those purposes.

The audit report on the financial statements of the subsidiaries were not subject to any qualification and did not include any comment made under subsection (3) of Section 174 of the Act.

Report of the Auditorsto the members of BIMB Holdings Berhad

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82

Without qualifying our opinion, we wish to highlight on the following matter:-

There were numerous un-reconciled differences in the accounting records of a subsidiary, Syarikat Takaful Malaysia Berhad (“STMB”), in the previous financial year which resulted in the issuance of a qualified audit opinion on the consolidated financial statements for the year ended 30 June 2006. Since then, STMB has made great efforts which included engaging third party consultants, to identify and clear the numerous reconciling items in the accounting records and made adjustments to the financial statements. As explained in Note 44 to the financial statements, given the continued growth of the STMB’s business operations over the years which resulted in the significant volume of transactions that had to be manually processed, it was impracticable within the time constraint for financial statements issuance to determine the period-specific effects that some of these adjustments might have on the previous years’ financial statements.

Given the impracticality, the Group has incorporated the necessary adjustments against the opening accumulated losses, minority interests and General Takaful and Family Takaful participants’ funds as at 1 July 2006. RM2.9 million, RM1.3 million and RM2.8 million have been credited to the opening accumulated losses, minority interests and General Takaful participants’ fund, respectively. An amount of RM41.4 million has been charged to the opening Family Takaful participants’ fund.

KPMG desa Megat & co. adrian lee lye WangFirm Number: AF 0759 PartnerChartered Accountants Approval Number: 2679/11/07(J)

Kuala Lumpur,

Date: 29 October 2007

Report of the Auditorsto the members of BIMB Holdings Berhad

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83

Group company 2007 2006 2007 2006 note rM’000 rM’000 rM’000 rM’000 restated

assetsCash and short term funds 3 6,011,713 2,882,378 25,146 12,605Deposits and placements with financial institutions 4 287,459 59,476 - - Securities: Held-for-trading 5 361,550 279,176 20,968 15,527 Available-for-sale 6 3,460,097 2,199,477 11,812 12,319 Held-to-maturity 7 181,184 143,828 - - Financing, advances and others 8 8,433,287 8,601,387 100,000 100,000Deferred tax assets 10 12,902 8,020 - - Other assets 11 156,426 93,360 242 37Current tax assets 43,847 18,254 214 563Statutory deposit with Bank Negara Malaysia 12 396,639 459,856 - - Investments in subsidiaries 13 - - 1,301,686 1,247,233Investments in associates 14 149 149 149 149Property, plant and equipment 15 171,146 184,011 399 666General Takaful and Family Takaful assets 16 3,110,827 2,812,628 - -

total assets 22,627,226 17,742,000 1,460,616 1,389,099

liabilitiesDeposits from customers 17 17,388,633 14,148,593 - - Deposits and placements of banks and other financial institutions 18 33,991 63,028 - - Bills and acceptances payable 109,189 100,919 - - Other liabilities 19 317,939 305,125 9,867 13,528Amount due to a corporate shareholder 21 - 280,000 - 280,000Provision for zakat 7,285 3,564 - - Deferred tax liabilities 10 - - 1,435 - General Takaful and Family Takaful liabilities 16 499,048 367,078 - - General Takaful and Family Takaful participants’ funds 16 2,611,779 2,445,551 - -

total liabilities 20,967,864 17,713,858 11,302 293,528

equity Share capital 22 891,390 562,965 891,390 562,965 Reserves 122,291 (708,855) 557,924 532,606

total equity attributable to shareholders of the company 1,013,681 (145,890) 1,449,314 1,095,571Minority interests 645,681 174,032 - -

total equity 1,659,362 28,142 1,449,314 1,095,571

total equity and liabilities 22,627,226 17,742,000 1,460,616 1,389,099

commitments and contingencies 36 4,937,223 4,026,381 - -

Balance Sheets as at 30 June 2007

The notes on pages 91 to 146 are an integral part of these financial statements.

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Group company 2007 2006 2007 2006 note rM’000 rM’000 rM’000 rM’000

Income derived from investment of depositors’ funds 23 853,534 788,656 - - Income derived from investment of shareholders’ funds 24 1,029,451 327,297 30,188 29,126Allowance for losses on financing 25 (24,739) (1,300,478) - - Reversal/(Impairment) losses 26 75,002 (164,461) - (160,897)Profit equalisation reserve (47,921) (9,308) - - Direct expenses (3,810) (13,660) - -

Total distributable income 1,881,517 (371,954) 30,188 (131,771) Income attributable to depositors 27 (402,415) (364,105) - -

Total net income/(loss) 1,479,102 (736,059) 30,188 (131,771)Personnel expenses 28 (270,168) (233,507) (3,511) (124)Depreciation (46,661) (33,756) - - Impairment loss from property, plant & equipment (11,424) - - - Other overhead expenses 29 (208,613) (167,999) (1,802) (2,257)

operating profit/(loss) 942,236 (1,171,321) 24,875 (134,152)Finance cost 31 (13,370) (6,000) - (6,000) Share of losses in associated companies - (618) - -

Profit/(loss) before zakat and taxation 928,866 (1,177,939) 24,875 (140,152)Zakat (8,094) (7,065) - 398Tax expense 32 (8,526) (30,454) (6,522) (8,892)

Profit/(loss) for the year 912,246 (1,215,458) 18,353 (148,646)

attributable to:Shareholders of the Company 799,322 (1,230,008) 18,353 (148,646)Minority interests 112,924 14,550 - -

Profit/(loss) for the year 912,246 (1,215,458) 18,353 (148,646)

Group note 2007 2006 Earnings/(Loss) per share (sen) 33 99.29 (218.49) Dividend per ordinary share – net (sen) 34 - 1.8 No separate disclosure of fully diluted earnings per share has been made for reasons described in Note 33.

Income Statementsfor the year ended 30 June 2007

The notes on pages 91 to 146 are an integral part of these financial statements.

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13,8

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Loss

for

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year

-

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(1,2

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30 J

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2006

562,

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533

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(6,1

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174,

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42

Consolidated Statements of Changes in Equityfor the year ended 30 June 2007

The

no

tes

on

pag

es 9

1 to

146

are

an

inte

gra

l par

t o

f th

ese

finan

cial

sta

tem

ents

.

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-

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21

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-

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-

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21,4

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79

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2 79

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(230

) 21

,717

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799,

322

820,

809

140,

773

961,

582

Consolidated Statements of Changes in Equityfor the year ended 30 June 2007

The

no

tes

on

pag

es 9

1 to

146

are

an

inte

gra

l par

t o

f th

ese

finan

cial

sta

tem

ents

.

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(631

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(3,7

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Min

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su

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of

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omp

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-

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387,

019

387,

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Acq

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of s

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of

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-

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(53,

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(5

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33

5,89

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335,

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at

30 J

une

2007

891,

390

602,

978

326,

177

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(1,4

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1 64

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1 1,

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362

The

Sta

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e p

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Act

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3 an

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s ca

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ital

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f R

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f

RM

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is n

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as

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div

iden

ds.

The

no

tes

on

pag

es 9

1 to

146

are

an

inte

gra

l par

t o

f th

ese

finan

cial

sta

tem

ents

.

Consolidated Statements of Changes in Equityfor the year ended 30 June 2007

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non-distributable retained profits/ share share fair value (accumulated

capital premium reserve losses) totalcompany note rM’000 rM’000 rM’000 rM’000 rM’000

at 1 July 2005 562,965 596,157 (83) 94,938 1,253,977

Unrealised net gain on revaluation of securities available-for-sale - - 373 - 373Net loss for the year - - - (148,646) (148,646)Total recognised income and expense for the year - - 373 (148,646) (148,273)Dividend - 2005 final 34 - - - (10,133) (10,133)

at 30 June 2006 562,965 596,157 290 (63,841) 1,095,571

Unrealised net loss on revaluation of securities available-for-sale - - (507) - (507) Net profit for the year - - - 18,353 18,353Total recognised income and expense for the year - - (507) 18,353 17,846Shares issued 22 328,425 7,473 - - 335,898

at 30 June 2007 891,390 603,630 (217) (45,488) 1,449,315

Statements of Changes in Equity for the year ended 30 June 2007

The notes on pages 91 to 146 are an integral part of these financial statements.

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Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 restated

cash flows from operating activitiesProfit/(Loss) before zakat and taxation 928,866 (1,177,939) 24,875 (140,152)Adjustments for: Depreciation of property, plant and equipment 46,661 33,756 - - Impairment losses of property, plant and equipment 11,424 - - - Impairment loss on securities available-for-sale (75,002) 104,254 - - Impairment loss on securities held-to-maturity - 55,887 - - Impairment loss on investment in a subsidiary - - - 156,027 Impairment loss on investment in associates - 3,340 - 4,870 Allowance for doubtful debts 10 7,313 - - Allowance for losses on financing 24,739 1,300,478 - - Allowance for diminution in value of investments (1,242) - - - Dividend income (172,308) (5,333) (10,525) (20,126) Net (gain)/loss on disposal of investments - - (1,725) 1,344 Gain on disposal of property, plant and equipment (20) - - - Gain on disposal of associate (950) - - - Gain on dilution of interest in a subsidiary (631,507) - - - Net gain on sale of securities held-for-trading (10,900) (7,709) - - Net gain on sale of securities available-for-sale (2,730) (4,183) - - Fair value gain on securities held-for-trading - (334) - - Accretion of discount less amortisation of premium (71,882) - - - Dividend received from securities available-for-sale (48,037) (101,518) (466) - Dividend received from securities held- for-trading (352) (22,703) (907) - Dividend received from securities held-to-maturity (15,857) - - - Goodwill written off 2,450 - - - Property, plant and equipment written off 11,613 - - - Share of losses in associated companies - 618 - - Unrealised foreign exchange gain (26,885) - - - Reversal of impairment losses (75,002) - - -

Operating (loss)/profit before working capital changes (106,911) 185,927 11,252 1,963 Changes in working capital: Deposits and placements of banks and other financial institutions (29,037) (1,289,891) - - Financing of customers 143,361 (805,074) - - Statutory deposits with Bank Negara Malaysia 63,217 (31,388) - - Bills receivable - 3,532 - - Other receivables (58,085) 198,269 (205) (21) Deposits from customers 3,240,040 910,366 - - Other payables 12,814 (84,115) (3,803) (6,168) Bills payable 8,270 14,448 - -

Cash generated from/(used in) operations 3,273,669 (897,926) 7,244 (4,226) Zakat paid (4,373) (11,228) - - Income taxes paid (39,001) (40,495) (4,738) (9,616)

net cash generated from/(used in) operating activities 3,230,295 (949,649) 2,506 (13,842)

Cash Flow Statements for the year ended 30 June 2007

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Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 restated cash flows from investing activities Acquisition of shares in a subsidiary company - - (46,942) (280,000) Purchase of property, plant and equipment (56,784) (46,667) (399) - Proceeds from disposal of property, plant and equipment 187 878 667 - Proceeds from disposal of associate 950 - - - Dividend received 172,308 5,333 10,525 20,126 Dividend received from securities available-for-sale 48,037 101,518 466 - Dividend received from securities held-for-trading 352 22,703 907 - Dividend received from securities held-to-maturity 15,857 - - - Net (purchase)/disposal of securities (1,087,708) 774,125 (3,716) 12,031

Net cash (used in)/generated from investing activities (906,801) 857,890 (38,492) (247,843)

cash flows from financing activities Dividend paid (3,728) (10,133) - (10,133) Proceeds from issuance of new ordinary shares 335,898 - 328,385 - Acquisition of minority shareholders (56,992) - - - Issuance of shares of a subsidiary to minority shareholders 1,018,526 9,076 - - Advances from subsidiaries - - 142 - (Repayment)/Advance from a corporate shareholder (280,000) 280,000 (280,000) 280,000

net cash generated from financing activities 1,013,704 278,943 48,527 269,867

net increase in cash and cash equivalents 3,337,198 187,184 12,541 8,182

cash and cash equivalents at the beginning of year 2,941,854 2,755,611 12,605 4,423 foreign exchange differences 20,120 (941) - -

cash and cash equivalents at the end of year 6,299,172 2,941,854 25,146 12,605

cash and cash equivalents comprise:

Cash and short term funds 6,011,713 2,882,378 92 12,605 Deposits and placements with financial institutions 287,459 59,476 25,054 -

6,299,172 2,941,854 25,146 12,605

Cash Flow Statements for the year ended 30 June 2007

The notes on pages 91 to 146 are an integral part of these financial statements.

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91

BIMB Holdings Berhad is a public limited liability company, incorporated and domiciled in Malaysia and listed on the Main Board of Malaysia Securities Exchange Berhad. The address of its registered office and principal place of business are as follows:

registered office and principal place of business Level 18, Menara Yayasan Tun Razak,200 Jalan Bukit Bintang,55100 Kuala Lumpur.

The consolidated financial statements as at and for the year ended 30 June 2007 comprise the Company and its subsidiaries (together referred to as the Group) and the Group’s interest in associates. The financial statements of the Company as at and for the year ended 30 June 2007 do not include other entities.

The Company is principally engaged in investment holding activities while the other Group entities are primarily involved in Islamic banking business, provision of stockbroking and managing family and general takaful businesses.

1. Basis of PreParation

(a) statement of compliance

The financial statements of the Group and of the Company have been prepared in accordance with applicable approved accounting standards for entities other than private entities issued by the Malaysian Accounting Standards Board (MASB) as modified by Bank Negara Malaysia Guidelines, accounting principles generally accepted in Malaysia, the provisions of the Companies Act, 1965 and Shariah requirements.

The MASB has issued the following Financial Reporting Standards (FRSs) and Interpretations that are effective for annual periods beginning after 1 January 2006, and that have not been applied in preparing these financial statements:

standard / interpretation effective date

FRS 117, Leases 1 October 2006

FRS 124, Related Party Disclosures 1 October 2006 Amendment to FRS 1192004, Employee Benefits – Actuarial Gains and Losses, Group Plans and Disclosures 1 January 2007 FRS 6, Exploration for and Evaluation of Mineral Resources 1 January 2007 Amendment to FRS 121, The Effects of Changes in Foreign Exchange Rates – Net Investment in a Foreign Operation 1 July 2007 IC Interpretation 1, Changes in Existing Decommissioning, Restoration and Similar Liabilities 1 July 2007 IC Interpretation 2, Members’ Shares in Co-operative Entities and Similar Instruments 1 July 2007 IC Interpretation 5, Rights to Interests arising from Decommissioning, Restoration and Environmental Rehabilitation Funds 1 July 2007

Notes to the Financial Statements

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1. Basis of PreParation (cont’d)

(a) statement of compliance (cont’d)

standard / interpretation effective date

IC Interpretation 6, Liabilities arising from Participating in a Specific Market – Waste Electrical and Electronic Equipment 1 July 2007 IC Interpretation 7, Applying the Restatement Approach under FRS 1292004 Financial Reporting in Hyperinflationary Economies 1 July 2007 IC Interpretation 8, Scope of FRS 2 1 July 2007

FRS 107, Cash Flow Statements 1 July 2007

FRS 111, Construction Contracts 1 July 2007

FRS 112, Income Taxes 1 July 2007

FRS 118, Revenue 1 July 2007

FRS 120, Accounting for Government Grants and Disclosure of Government Assistance 1 July 2007

FRS 134, Interim Financial Reporting 1 July 2007

FRS 137, Provisions, Contingent Liabilities and Contingent Assets 1 July 2007

The Group and the Company plan to apply the above-mentioned FRSs (except for FRS 139 which its effective date has yet to be announced) initially for the annual period beginning 1 July 2007.

The impact of applying FRS 117, FRS 124 and FRS 139 on the financial statements upon first adoption of these standards as required by paragraph 30(b) of FRS 108, Accounting Policies, Changes in Accounting Estimates and Errors is not disclosed by virtue of the exemptions given in the respective standards.

The initial application of the other standards and interpretations are not expected to have any material impact on the financial statements of the Group and the Company.

There were no significant financial impact of adopting the new/revised FRSs in 2007.

The financial statements were approved by the Board of Directors on 29 October 2007.

Notes to the Financial Statements

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93

1. Basis of PreParation (cont’d)

(b) Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following assets as explained in their respective accounting policy notes:

• Securities held-for-trading • Securities available-for-sale • Derivatives financial instruments

(c) functional and presentation currency

These financial statements are presented in Ringgit Malaysia (RM), which is the Company’s functional currency. All financial information presented in RM has been rounded to the nearest thousand, unless otherwise stated.

(d) use of estimates and judgements

The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

In particular, information about significant areas of estimation uncertainty and critical judgements in applying accounting policies that have the most significant effect on the amount recognised in the financial statements are described in the following note:

• Note 10 – unrecognised deferred tax assets/liabilities

2. siGnificant accountinG Policies

The accounting policies set out below have been applied consistently to all periods presented in these financial statements, and have been applied consistently by Group entities, unless otherwise stated.

(a) Basis of consolidation

(i) Subsidiaries

Subsidiaries are entities controlled by the Group. Control exists when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. In assessing control, potential voting rights that presently are exercisable are taken into account.

The financial statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date that control ceases.

Investments in subsidiaries are stated in the Company’s balance sheet at cost less impairment losses.

Notes to the Financial Statements

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94

2. siGnificant accountinG Policies (cont’d)

(a) Basis of consolidation (cont’d)

(ii) Associates

Associate is an entity in which the Group has significant influence, but not control, over the financial and operating policies.

Associate is accounted for in the consolidated financial statements using the equity method. The consolidated financial statements include the Group’s share of the income and expenses of the equity accounted associate, after adjustments to align the accounting policies with those of the Group, from the date that significant influence commences until the date that significant influence ceases.

When the Group’s share of losses exceeds its interest in an equity accounted associate, the carrying amount of that interest (including any long-term investments) is reduced to nil and the recognition of further losses is discontinued except to the extent that the Group has an obligation or has made payments on behalf of the investee.

Investment in an associate is stated in the Company’s balance sheet at cost less impairment losses.

(iii) ChangesinGroupcomposition

Where a subsidiary issues new equity shares to minority interests for cash consideration and the issue price has been established at fair value, the reduction in the Group’s interests in the subsidiary is accounted for as a disposal of equity interest with the corresponding gain or loss recognised in the income statement.

When a group purchases a subsidiary’s equity shares from minority interests for cash consideration and the purchase price has been established at fair value, the accretion of the Group’s interests in the subsidiary is accounted for as a purchase of equity interest for which the acquisition accounting method of accounting is applied.

The Group treats all other changes in group composition as equity transactions between the Group and its minority shareholders. Any difference between the Group’s share of net assets before and after the change, and any consideration received or paid, is adjusted to or against Group reserves.

(iv) Minorityinterest

Minority interest at the balance sheet date, being the portion of the net identifiable assets of subsidiaries attributable to equity interests that are not owned by the Company, whether directly or indirectly through subsidiaries, are presented in the consolidated balance sheet and statement of changes in equity within equity, separately from equity attributable to the equity shareholders of the Company. Minority interest in the results of the Group are presented on the face of the consolidated income statement as an allocation of the total profit or loss for the year between minority interest and the equity shareholders of the Company.

Where losses applicable to the minority exceed the minority’s interest in the equity of a subsidiary, the excess, and any further losses applicable to the minority, are charged against the Group’s interest except to the extent that the minority has a binding obligation to, and is able to, make additional investment to cover the losses. If the subsidiary subsequently reports profits, the Group’s interest is allocated with all such profits until the minority’s share of losses previously absorbed by the Group has been recovered.

Notes to the Financial Statements

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2. siGnificant accountinG Policies (cont’d)

(a) Basis of consolidation (cont’d)

(v) Transactionseliminatedonconsolidation

Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the consolidated financial statements.

Unrealised gains arising from transactions with equity accounted investees are eliminated against the investment to the extent of the Group’s interest in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment.

(b) foreign currency

(i) Foreigncurrencytransactions

Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange rates at the dates of the transaction.

Monetary assets and liabilities denominated in foreign currencies at the balance sheet date are retranslated to the functional currency at the exchange rate at that date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was determined. Foreign currency differences arising on retranslation are recognised in the income statement.

(ii) OperationsdenominatedinfunctionalcurrenciesotherthanRinggitMalaysia

The assets and liabilities of operations in functional currencies other than RM, including goodwill and fair value adjustments arising on acquisition, are translated to RM at exchange rates at the balance sheet date. The income and expenses of foreign operations, are translated to RM at exchange rates at the dates of the transactions.

On disposal, accumulated translation differences are recognised in the consolidated income statement as part of the gain or loss on sale.

(iii) Netinvestmentinforeignoperations

Exchange differences arising from monetary items that in substance form part of the Group’s net investment in foreign operations, are recognised in equity in the Group’s financial statements only when the financing is denominated in either the functional currency of the Company or the foreign operation. Deferred exchange differences are released to the income statement upon disposal of the investment.

Notes to the Financial Statements

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2. siGnificant accountinG Policies (cont’d)

(c) intangible assets

(i) Goodwill

Goodwill arises on the acquisition of subsidiaries and associates.

Goodwill represents the excess of the cost of the acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the acquiree.

Goodwill is measured at cost and tested for impairment at least annually or more frequently when there is objective evidence of impairment.

Goodwill is allocated to cash-generating units and is tested annually for impairment or more frequently if events or changes in circumstances indicate that it might be impaired.

In respect of equity accounted investees, the carrying amount of goodwill is included in the carrying amount of the

investment. The entire carrying amount of the investment is tested for impairment when there is objective evidence of impairment.

(ii) Acquisitionofminorityinterest

Goodwill arising on the acquisition of a minority interest in a subsidiary represents the excess of the cost of the additional investment over the carrying amount of the net assets acquired at the date of exchange.

(d) derivative financial instruments

The Group holds derivative financial instruments to hedge its foreign currency exposure. Foreign exchange trading positions, including spot and forward contracts, are revalued at prevailing market rates at

balance sheet date and the resultant gains and losses for the financial year are recognised in the income statement.

(e) financing

Financing is stated after deducting the allowance for losses on financing.

Allowanceforbadanddoubtfulfinancing

Specific allowances are made for bad and doubtful financing, which have been individually reviewed and specifically identified as bad and doubtful.

A general allowance based on a percentage of the financing portfolio (net of specific allowance for bad and doubtful financing) is also made. These percentages are reviewed annually in the light of past experiences and prevailing circumstances and an adjustment is made to the overall general allowance, if necessary.

Notes to the Financial Statements

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2. siGnificant accountinG Policies (cont’d)

(e) financing (cont’d)

An uncollectible financing or portion of a financing classified as bad is written off after taking into consideration the realisable value of collateral, if any, when in the judgement of the management, there is no prospect of recovery.

During the financial year, specific allowance for bad and doubtful financing has been made in full compliance with the revised BNM GP3 (September 1998). Allowances of 20% on shortfall of carrying value against the collateral value is made where repayment is in arrears for six to less than nine months from the first date of default; allowances of 50% for repayment in arrears for nine to twelve months; whilst full allowance is made for arrears exceeding twelve months. Any allowance during the year is charged to the income statement.

In the previous year, the Group had adopted a more stringent basis for specific allowance on those doubtful financing where repayment is in arrears for more than three (3) months by providing full allowance on the shortfall of carrying value against the collateral value. The Directors were of the view that such treatment reflected a more prudent provision policy and was necessary to address the deteriorating financing portfolio.

(f) securities

The holdings of the securities portfolio of the Group and the Company are recognised based on the following categories and consequently their valuation methods:

(i) Securitiesheld-for-trading

Securities are classified as held-for-trading if it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term or it is part of a portfolio of identified securities that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking. Securities classified as held-for-trading will be stated at fair value and any gain or loss arising from a change in the fair value will be recognised in income statement.

(ii) Securitiesavailable-for-sale

Available-for-sale securities are securities that are not classified as held-for- trading or held-to-maturity and are measured at fair value. Securities in equity instruments that do not have a quoted market price in an active market and whose fair value cannot be reliably measured are stated at cost. Any gain or loss arising from a change in the fair value is recognised directly in equity through the statement of changes in equity until the securities are sold, disposed off or impaired, at which time the cumulative gains or losses previously recognised in equity will be transferred to income statement. Profit from the available-for-sale securities is recognised in the income statement.

(iii) Securitiesheld-to-maturity

Held-to-maturity securities are securities with fixed or determinable payments and fixed maturity that the Company has the positive intention and ability to hold to maturity. These securities are measured at amortised cost using the effective profit method. A gain or loss is recognised in the income statement when the securities are derecognised or impaired, as well as amortisation of premium and accretion of discounts.

Notes to the Financial Statements

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98

2. siGnificant accountinG Policies (cont’d)

(g) Property, plant and equipment

(i) Recognitionandmeasurement Items of property, plant and equipment are stated at cost less accumulated depreciation and impairment losses.

Property, plant and equipment retired from active use and held for disposal are stated at the carrying amount at the date when the asset is retired from active use, less impairment losses, if any.

Cost includes expenditures that are directly attributable to the acquisition of the asset and any other costs directly

attributable to bringing the asset to working condition for its intended use, and the costs of dismantling and removing the items and restoring the site on which they are located. The cost of self-constructed assets also includes the cost of materials and direct labour. Purchased software that is integral to the functionality of the related equipment is capitalised as part of that equipment.

The cost of property, plant and equipment recognised as a result of a business combination is based on fair value at acquisition date. The fair value of property is the estimated amount for which a property could be exchanged between a willing buyer and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion. The fair value of other items of plant and equipment is based on the quoted market prices for similar items.

When significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

(ii) Subsequentcosts

The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of the item if it is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be measured reliably. The carrying amount of those parts that are replaced is derecognised. The costs of the day-to-day servicing of property, plant and equipment are recognised in the income statement as incurred.

(iii) Depreciation

Depreciation is recognised in the income statement on a straight-line basis over the estimated useful lives of each part of an item of property, plant and equipment. Leasehold land is amortised in equal instalments over the period of the lease.

The estimated useful lives for the current and comparative periods are as follows:

• Buildings 99 years • Building improvement and renovations 6 years • Furniture, fixtures and fittings 2 – 6 years • Office equipment 2 – 6 years • Motor vehicles 4 years • Computer equipment and software 2 – 6 years

The depreciable amount is determined after deducting the residual value.

Depreciation methods, useful lives and residual values are reassessed at the reporting date.

Notes to the Financial Statements

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99

2. siGnificant accountinG Policies (cont’d)

(h) impairment

The carrying amounts of assets except for financial assets (other than securities held-to-maturity and available-for-sale) are reviewed at each reporting date to determine whether there is any indication of impairment.

If any such indication exists, then the asset’s recoverable amount is estimated. For goodwill that has indefinite useful lives or that is not yet available for use, recoverable amount is estimated at each reporting date.

An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its recoverable amount. A cash-generating unit is the smallest identifiable asset group that generates cash flows that largely are independent from other assets and groups. Impairment losses are recognised in the income statement. Impairment losses recognised in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to reduce the carrying amount of the other assets in the unit (groups of units) on a pro rata basis.

The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. Reversals of impairment losses are credited to the income statement in the year in which the reversals are recognised.

(i) Bills and other receivables

Bills and other receivables are stated at cost less allowance for doubtful debts.

(j) cash and cash equivalents

Cash and cash equivalents include cash and short-term funds, and deposits and placements with banks and other financial institutions.

(k) Bills and acceptances payable

Bills and acceptances payable represent the Group’s own bills and acceptances rediscounted and outstanding in the market.

(l) liabilities

Deposits from customers and deposits and placements of banks and financial institutions are stated at placement values.

Notes to the Financial Statements

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100

2. siGnificant accountinG Policies (cont’d)

(l) liabilities (cont’d)

Other payables are measured initially and subsequently at cost. Other payables are recognised when there is a contractual obligation to deliver cash or another financial asset to another entity.

(m) leases

The Group accounts for its Ijarah leasing contracts as operating leases and Ijarah Muntahia Bittamlik as finance leases.

(n) family takaful fund Included in Family Takaful Fund is fund arising from:-

i) Family Takaful; ii) Group Family Takaful; and iii) Family Retakaful Funds.

The profit attributable to cedants represents the cedants’ share in the family retakaful surpluses and is distributable in accordance with the terms and conditions prescribed by the Group.

The Family Takaful Fund is maintained in accordance with the requirements of the Takaful (Amendment) Act, 1984 and includes the amounts attributable to participants which represents the participants’ share of the return on the investments and are distributable in accordance with the terms and conditions prescribed by the Group.

The surplus transferable from the Family Takaful Fund to the income statement is based on the surplus determined by an annual actuarial valuation of the long term liabilities to the participants. Contributions income

Contribution is recognised as soon as the amount of the contribution can be reliably measured. Initial contribution is recognised from inception date and subsequent contribution is recognised when it is due.

At the end of the financial period, all due contributions are accounted for to the extent that they can be reliably measured.

Investment-linked business

Investments of investment-linked business are stated at closing market prices. Any increase or decrease in value of these investments is taken into the investment-linked business revenue account.

Actuarial reserve

Actuarial reserves comprises the unearned contribution reserves and the reserve computed under the net contribution valuation as explained below :

Notes to the Financial Statements

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101

2. siGnificant accountinG Policies (cont’d)

(n) family takaful fund (cont’d)

(i) Unearned contribution reserve

The Unearned Contributions Reserve (UCR) of group family fund (except for Mortgage Reducing Term Takaful (“MRTT”) products) and family retakaful fund represents the portion of the net contributions of takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period.

In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows:

(a) 1/365th method for all group family takaful business within Malaysia.

(b) A pro-rata basis based on a time apportionment method for family retakaful business. (ii) Net contribution valuation

The actuarial liability for MRTT products managed under group family fund is calculated using net contribution method of valuation (“NCV”). The liability is ascertained by deducting the present value of future net contribution from the present value of the future amount-at-risk.

The valuation basis for MRTT products has been changed in the current financial year from UCR to NCV in compliance to the Bank Negara Malaysia’s Guidelines on “Valuation of Liabilities for Mortgage Reducing Term Takaful” issued on 11 April 2007.

Provision for outstanding claims Claims and settlement costs that are incurred during the financial period are recognised when a claimable event

occurs and/or the Takaful operator is notified.

Claims and provisions for claims arising on family and group family Takaful certificates, including settlement costs, are accounted for using the case basis method and for this purpose; the benefits payable under a family Takaful certificates are recognised as follows:

(i) maturity or other policy benefit payments due on specified dates are treated as claims payable on the due dates; and

(ii) death, surrender and other benefits without due dates are treated as claims payable, on the date of receipt of intimation of death of the participant or occurrence of contingency covered.

(o) General takaful fund

The General Takaful Fund is maintained in accordance with the Takaful Act, 1984 (amendment). Included in General Takaful fund is fund arising from:

i) General Takaful; ii) Asean Takaful Group (“ATG”) retakaful pool; and iii) General retakaful funds.

Notes to the Financial Statements

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2. siGnificant accountinG Policies (cont’d)

(o) General takaful fund (cont’d)

The General Takaful underwriting results are determined for each class of Takaful business after taking into account retakaful, commissions, unearned contributions, claims incurred and management expenses.

The net surplus for general retakaful is determined after deducting retakaful, reserve for unearned retakaful contributions,

net claims incurred and acquisition costs.

The profit attributable to cedants represents the cedants’ share in the general retakaful surpluses and is distributable in accordance with the terms and conditions prescribed by the Group.

Contributions income

Contributions are recognised in a financial period in respect of risks assumed during that particular financial period based on the inception date. Inward treaty retakaful contributions are recognised on the basis of periodic advices received from ceding takaful operators.

Unearned contributions reserve (“UCR”)

The UCR represents the portion of the net contributions of Takaful certificates written that relate to the unexpired periods of the certificates at the end of the financial period.

In determining the UCR at balance sheet date, the method that most accurately reflects the actual unearned contributions is used, as follows:

(i) 1/365th method for all General Takaful business within Malaysia.

(ii) 1/8th method for all classes of General Inward Takaful business.

Provision for outstanding claims

A liability for outstanding claims is recognised in respect of direct Takaful business. The amount of outstanding claims is the best estimate of the expenditure required together with related expenses less recoveries, if any, to settle the present obligation at the balance sheet date. Any difference between the current estimated cost and subsequent settlement is dealt with in the Takaful revenue account for the Group in the year in which the settlement takes place.

Provision is also made for the cost of claims, together with related expenses, incurred but not reported (“IBNR”) at balance sheet date, using a mathematical method of estimation by a qualified independent actuary.

(p) Profit equalisation reserve (“Per”)

PER is a mechanism to reduce the fluctuations in the profit rates payable to the depositors. It is provided based on the Framework of the Rate of Return or BNM/GP2-i issued by Bank Negara Malaysia. The amount of PER is appropriated from and written back to the total gross income. PER is reflected under other liabilities of the Group.

Notes to the Financial Statements

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2. siGnificant accountinG Policies (cont’d)

(q) share capital

Ordinary shares are classified as equity in the balance sheet. Cost directly attributable to the issuance of new equity shares are taken to equity as a deduction from the proceeds.

(r) income recognition

Financeincome

Finance income is recognised on an accrual basis.

Income on cash line, house and term financing is accounted for on a constant rate of return basis by reference to the rest periods as stipulated in the financing agreement.

Where a financing account becomes non-performing, profit accrued and recognised as income prior to the date the account is classified as non-performing is reversed out of income. Thereafter, profit on the non-performing financing shall only be recognised as income on a cash basis. Income is not recognised on customers’ accounts where repayments are in arrears for more than six months from the first day of default for financing, cash line and advances; and three months from the first day of default for trade bills, credit cards, bankers acceptances, trust receipts and other instruments of similar nature.

Feeandotherincomerecognition

Financing arrangement, management and participation fees, underwriting commissions and brokerage fees are recognised as income based on contractual arrangements. Guarantee fee is recognised as income upon issuance of the guarantee. Fees from advisory and corporate finance activities are recognised net of service taxes and discounts on completion of each stage of the assignment.

Dividend income from subsidiary and associated companies and other investments are recognised when the Company’s rights to receive payment is established.

(s) income tax

Tax expense comprises current and deferred tax. Tax expense is recognised in the income statement except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is recognised using the balance sheet method, providing for temporary differences between the carrying amounts of assets and liabilities for reporting purposes and the amounts used for taxation purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of goodwill, the initial recognition of assets or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profit (tax loss). Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the balance sheet date.

Notes to the Financial Statements

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2. siGnificant accountinG Policies (cont’d)

(s) income tax (cont’d)

Deferred tax liability is recognised for all taxable temporary differences.

A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.

Additional taxes that arise from the distribution of dividends are recognised at the same time as the liability to pay the related dividend is recognised.

(t) Zakat

This represents business zakat. It is an obligatory amount payable by the Group to comply with the principles of Shariah.

(u) employee benefits

Shorttermemployeebenefits

Short-term employee benefit obligations in respect of salaries, annual bonuses, paid annual leave and sick leave are measured on an undiscounted basis and are expensed as the related service is provided.

A provision is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

The Group’s contribution to the Employees Provident Fund is charged to the income statements in the year to which they relate. Once the contributions have been paid, the Group has no further payment obligations.

Share-basedpaymenttransactions

The share options programme allows employees to acquire shares of the Company. In the previous years, share options granted to employees is not recognized as an employee cost. Following the adoption of FRS 2, Share-based Payment, the grant date fair value of share options granted to employees is recognized as an employee expense, with a corresponding increase in equity, over the period in which the employees become unconditionally entitled to the options. The change in accounting policy is applied retrospectively only for those options granted after 31 December 2004 and have not vested as of 1 January 2006 as provided in the transitional provision of FRS 2. No expense is recognized as there were no options that remained unvested as of 1 January 2006.

Notes to the Financial Statements

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Notes to the Financial Statements

3. cash and short terM funds Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 restated

Cash and balances with banks and other financial institutions 400,700 406,151 25,146 12,605Money at call and interbank placements with remaining maturity not exceeding one month 5,611,013 2,476,227 - -

6,011,713 2,882,378 25,146 12,605

4. dePosits and PlaceMents With BanK and other financial institutions Group 2007 2006 rM’000 rM’000 restated

Licensed banks 287,459 59,476

5. securities held-for-tradinG Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 restated

at fair value: Quoted securities in Malaysia Shares 63,390 40,347 20,968 15,527

unquoted securities in Malaysia Malaysian Government Investment Issues 15,231 4,971 - - Bank Negara Negotiable Notes 99,744 - - - Negotiable Islamic Debt Certificates - 49,950 - - Islamic Commercial Papers - 4,356 - - Islamic Debt Securities 16,909 - - - Accepted Bills 166,276 179,552 - -

298,160 238,829 - -

361,550 279,176 20,968 15,527

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Notes to the Financial Statements

6. securities availaBle-for-sale Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 restated

at fair value: Quoted securities in Malaysia Unit trust 25,955 29,418 11,812 12,319 Shares 5,448 156,228 - -

31,403 185,646 11,812 12,319

at fair value: Quoted securities outside Malaysia Bond 17,263 18,363 - -

at fair value: unquoted securities in Malaysia Malaysian Government Investment Issues 791,304 250,131 - - Bank Negara Negotiable Notes - 41,950 - - Negotiable Islamic Debt Certificates 1,385,542 333,763 - - Islamic Commercial Papers 113,715 173,301 - - Islamic Debt Securities 792,580 626,828 - - Accepted Bills 233,166 534,007 - - Promissory notes 6,022 6,022 - -

3,322,329 1,966,002 - -

at fair value: unquoted securities outside Malaysia Islamic Development Bank Unit Trust 1,928 2,039 - - Islamic Debt Securities 69,199 - - -

71,127 2,039 - -

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6. securities availaBle-for-sale (cont’d) Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 restated

at cost: unquoted securities in Malaysia Unquoted shares 30,516 38,846 - - Less: Accumulated impairment losses (24,168) (22,484) - -

6,348 16,362 - -

at cost: unquoted securities outside Malaysia Unquoted shares 27,163 42,712 - - Less: Accumulated impairment losses (15,536) (31,647) - -

11,627 11,065 - -

3,460,097 2,199,477 11,812 12,319

7. securities held-to-Maturity Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 restated

at amortised cost: Quoted securities in Malaysia Islamic Debt Securities 5,560 7,634 - -

unquoted securities in Malaysia Shares 878 - - - Islamic Debt Securities 205,342 206,796 - - Less: Accumulated impairment loss (30,648) (70,602) - -

175,572 136,194 - -

unquoted securities outside Malaysia Shares 52 - - -

181,184 143,828 - -

Notes to the Financial Statements

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8. financinG, advances and others

Group 2007 2006 rM’000 rM’000 restated

i) By type Cash line 135,221 16,686 Term financing House financing 5,694,890 5,727,134 Syndicated financing 180,182 230,117 Leasing receivables 398,807 364,067 Bridging financing 658,083 483,275 Personal financing 1,960,359 1,794,872 Other term financing 4,115,797 4,890,499 Staff financing 310,488 284,619 Credit cards 253,498 177,052 Revolving credit 1,018,506 1,270,854

14,725,831 15,239,175 Less: Unearned income (4,906,263) (5,004,732)

9,819,568 10,234,443 Less: Allowance for bad and doubtful financing: - General (170,461) (168,462) - Specific (1,215,820) (1,464,594)

total net financing, advances and others 8,433,287 8,601,387

ii) By contract Bai’ Bithaman Ajil (deferred payment sale) 5,836,269 6,522,248 Ijarah (operating lease) 157,855 104,372 Ijarah Muntahia Bittamlik/AITAB (finance lease) 184,379 216,602 Mudharabah (profit sharing) 18,150 21,316 Murabahah(cost-plus) 1,248,975 1,422,832 Bai’-Al-Inah Cash Note 1,267,727 1,069,766 Bai Al-Inah 415,328 184,532 Istisna’ 638,984 642,964 Others 51,901 49,811

9,819,568 10,234,443

Notes to the Financial Statements

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8. financinG, advances and others (cont’d)

Group 2007 2006 rM’000 rM’000 restated

iii) By type of customer Domestic non-bank financial institutions 46,035 149,494 Domestic business enterprise 2,132,518 1,572,367 Small medium industries 1,051,169 1,092,140 Government 68,214 74,786 Individuals 6,490,367 6,527,505 Other domestic entities 29,575 25,022 Foreign entities 1,690 793,129

9,819,568 10,234,443

iv) By profit rate sensitivity fixed rate House financing 2,464,941 2,600,168 Others 7,354,627 7,634,275

9,819,568 10,234,443

v) By economic purposes Agriculture, hunting, forestry and fishing 226,185 140,751 Mining and quarrying 3,633 5,464 Manufacturing 1,125,203 1,206,281 Electricity, gas and water 87,387 93,604 Construction 700,883 781,612 Real estate 109,903 125,324 Purchase of landed property: - Residential 2,891,457 2,743,033 - Non-residential 480,508 538,259 Wholesale, retail trade, restaurants and hotels 268,740 470,866 Transport, storage and communication 77,162 84,711 Finance, insurance and business services 46,038 116,035 Purchase of securities 221,905 487,421 Purchase of transport vehicles 1,764,858 1,958,573 Consumption credit 1,451,771 1,241,543 Community, social and personnel 59,135 49,907 Others 304,800 191,059

9,819,568 10,234,443

Notes to the Financial Statements

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8. financinG, advances and others (cont’d)

company 2007 2006 rM’000 rM’000 Subordinated Mudharabah financing 100,000 100,000

The amount refers to a subordinated Mudharabah financing facility granted to a subsidiary, Bank Islam Malaysia Berhad which is subordinated to all other liabilities, of the subsidiary and matures in year 2010.

9. non-PerforMinG financinG, advances and others

(i) Movement in the non-performing financing, advances and others

Group 2007 2006 rM’000 rM’000 restated At 1 July 2,269,107 1,967,185 Classified as non-performing during the year 712,278 1,147,756 Reclassified as performing during the year (81,375) (189,763) Amount recovered (392,880) (127,873) Amount written off (307,245) (502,861) Exchange differences (40,845) (25,337)

At 30 June 2,159,040 2,269,107 Less: Specific allowance (1,215,820) (1,464,594)

Net non-performing financing, advances and others 943,220 804,513

Ratio of net non-performing financing, advances and others to total net financing, advances and others 10.94% 9.15%

Notes to the Financial Statements

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9. non-PerforMinG financinG, advances and others (con’t)

(ii) Movement in allowance for bad and doubtful financing Group 2007 2006 rM’000 rM’000 restated General allowance At 1 July 168,462 160,533 Allowance made during the year 3,074 29,437 Amount transferred to specific allowance - (11,342) Amount transferred to PER - (3,150) Write-back made during the year - (6,298) Exchange differences (1,075) (718)

At 30 June 170,461 168,462

Ratio of net non-performing financing, advances and others to total net financing, advances and others 1.97% 1.91%

specific allowance At 1 July 1,464,594 833,645 Allowance made during the year 275,389 1,189,196 Amount transferred from general allowance - 11,342 Amount transferred from allowance for doubtful debts - 11,089 Amount recovered (228,208) (83,273) Amount written off (264,230) (484,404) Exchange differences (31,725) (13,001)

At 30 June 1,215,820 1,464,594

(iii) non-performing financing by sector Agriculture, hunting, forestry and fishing 84,758 71,833 Mining and quarrying 3,135 4,926 Manufacturing 412,419 393,907 Electricity, gas and water 83,510 88,200 Construction 461,369 445,769 Real estate 4,431 4,487 Purchase of landed property: -Residential 360,829 317,471 -Non-residential 158,501 150,453 Wholesale and retail trade and restaurants and hotel 144,260 243,613 Transport, storage and communication 19,200 19,468 Finance, insurance and business services 636 5,007 Purchase of securities 184,581 297,506 Purchase of transport vehicles 60,608 40,067 Consumption credit 140,793 110,173 Community, social and personal 23,591 17,054 Others 16,419 59,173

At 30 June 2,159,040 2,269,107

Notes to the Financial Statements

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10. deferred tax assets and liaBilities

recognised deferred tax assets and liabilities

Deferred tax assets and liabilities are attributable to the following:

assets liabilities net 2007 2006 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Group

Property, plant and equipment 6,092 6,419 (2,248) (4,057) 3,844 2,362 Financing receivable 2,996 3,231 - - 2,996 3,231 Other items 6,174 434 (1,420) - 4,754 434 Tax loss carry-forwards 1,308 730 - - 1,308 730 Unabsorbed capital allowance - 1,263 - - - 1,263

Tax assets 16,570 12,077 (3,668) (4,057) 12,902 8,020

company

Other items - - (1,435) - (1,435) -

In recognising the deferred tax assets attributable to unutilised tax loss carry-forwards and unutilised capital allowance carry-forwards (included in deductible temporary differences of property, plant and equipment) the Directors made an as-sumption that there will not be any substantial change (more than 50%) in the shareholders before these assets are utilised. If there is substantial change in the shareholders, unutilised tax loss carry-forwards amounting to approximately RM1.3 million will not be available to the Group, resulting in an increase in net deferred tax liabilities.

unrecognised deferred tax assets

Deferred tax assets have not been recognised in respect of the following items: Group 2007 2006 rM’000 rM’000

Allowances for losses on financing 170,461 171,936 Impairment losses 74,654 136,693 Unutilised tax losses 144,028 560,041 Unabsorbed capital allowances 49,926 63,831 Other temporary differences 7,403 7,311

446,472 939,812

The deductible temporary differences do not expire under current tax legislation unless there is a substantial change in shareholders (more than 50%). If there is substantial change in shareholders, unutilised tax loss carry-forwards of the Group amounting to approximately RM144.0 million and unutilised capital allowance carry-forwards amounting to approximately RM49.9 million will not be available. Deferred tax assets have not been recognised in respect of these items because it is uncertain whether the Group is able to utilise the benefits in the future.

Notes to the Financial Statements

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11. other assets Group company

2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

restated Bill receivables 10,668 12,601 - - Clients’ and dealers’ debit balances 6,858 1,218 - - Due from Takaful funds 36,411 14,413 - - Amount due from subsidiaries - - 22 - Amount due from associates - 138 - - Deposits and prepayments 16,281 14,048 220 37Statutory deposits with LOFSA 100 97 - - Other receivables 171,979 136,986 - -

242,297 179,501 242 37Allowance for doubtful debts (85,871) (86,141) - -

156,426 93,360 242 37

12. statutory dePosit With BanK neGara Malaysia

The non-interest bearing statutory deposits are maintained with Bank Negara Malaysia in compliance with Section 37(1)(c) of the Central Bank of Malaysia Act, 1958 (revised 1994), the amount of which are determined as set percent-ages of total eligible liabilities.

13. investMents in suBsidiaries company

2007 2006 rM’000 rM’000

at costQuoted shares in Malaysia 106,986 106,986Unquoted shares in Malaysia 1,351,237 1,296,784

1,458,223 1,403,770Less: Accumulated impairment loss (156,537) (156,537)

1,301,686 1,247,233

Market value:Quoted shares in Malaysia 144,431 129,453

Notes to the Financial Statements

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13. investMents in suBsidiaries (cont’d)

Details of the subsidiaries are as follows: effective ownershipname of company Principal activities interest 2007 2006 % %

Bank Islam Malaysia Berhad Islamic banking 51 100

Subsidiary of Bank Islam Malaysia Berhad Bank Islam (L) Ltd Dormant 100 100 BIMB Unit Trust Management Berhad Manager of Amanah Saham 100 100 Bank Islam BIMB Foreign Currency Foreign currency clearing house 100 75.50 Clearing Agency Sdn. Bhd. Al-Wakalah Nominees (Tempatan) Sdn. Bhd. Provides nominee services 100 100 BIMB Trust Ltd. Provides trust and related services 100 100 Subsidiary of BIMB Trust Ltd. BIMB Offshore Company Dormant 100 100 Management Services Sdn. Bhd. Syarikat Takaful Malaysia Berhad+ Family and general Takaful business 67.93 69.56 Subsidiary of Syarikat Takaful Malaysia Berhad ASEAN Retakaful International (L) Ltd^ Offshore retakaful business 42.85 43.89 P.T. Syarikat Takaful Indonesia* # Holding company 38.04 38.95 Subsidiary of P.T. Syarikat Takaful Indonesia P.T. Asuransi Takaful Umum* # General Takaful business 38.04 38.95 P.T. Asuransi Takaful Keluarga* # Family Takaful business 38.04 38.95

Notes to the Financial Statements

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13. investMents in suBsidiaries (cont’d)

effective ownershipname of company Principal activities interest 2007 2006 % %

BIMB Securities (Holdings) Sdn. Bhd. Investment holding company 100 100 Subsidiary of BIMB Securities (Holdings) Sdn. Bhd. BIMB Securities Sdn. Bhd. Stockbroking company 100 51 Subsidiary of BIMB Securities Sdn. Bhd BIMSEC Asset Management Sdn. Bhd. Provides investment management services 100 51 BIMSEC Nominees (Tempatan) Sdn. Bhd Provides nominee services 100 51 BIMSEC Nominees (Asing) Sdn. Bhd. Provides nominee services 100 51 Syarikat Al-Ijarah Sdn. Bhd. Leasing of assets 100 100 Pembiayaan Perumahan Nasional Sdn. Bhd. Dormant 51 51 BIMB Venture Capital Sdn. Bhd. Provides advisory, consultancy 100 100 and related services in investment BIMB Musyarakah Satu Sdn. Bhd. Venture capital company and 100 100 investment company + The auditors’ report on the financial statements of Syarikat Takaful Malaysia Berhad (“STMB”) included an emphasis of

matter on the adjustments made to the opening balances as at 1 July 2006 arising from the subsequent clearance of the numerous unrecorded differences identified in the previous year.

* Incorporated in Indonesia. ^ Audited by a firm of auditors affiliated with KPMG Desa Megat & Co. # Audited by a firm of auditors other than KPMG Desa Megat & Co. During the financial year, Bank Islam Malaysia Berhad (“BIMB”) issued a total of 845,490,000 new ordinary shares of RM1

each to Dubai Financial LLC and Lembaga Tabung Haji at a total cash consideration (net of expenses) of RM1,014.1 million. Arising from this, the Group’s interest in BIMB was diluted from 100% to 51% and a gain of RM631.5 million arising from this dilution of interest was recognised.

In addition, the Group had also acquired the remaining 49% interest in BIMB Securities Sdn Bhd for a total consideration of approximately RM54.4 million resulting in BIMB Securities Sdn Bhd being a wholly owned subsidiary of the Group.

Notes to the Financial Statements

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14. investMents in associates

Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000 at cost Unquoted shares in Malaysia 7,492 5,962 5,019 5,019 Less : Share of post-acquisition losses (2,473) (2,473) - - : Accumulated impairment losses (4,870) (3,340) (4,870) (4,870)

149 149 149 149

The principal activities of the associates, incorporated in Malaysia (unless otherwise stated), and the interest of the Group are as follows:

effective ownershipGroup Principal activities interest 2007 2006 % %

MySPEED.com Sdn Bhd e-business activities - 20.54

Islamic Banking and Finance Institute Malaysia Sdn. Bhd. Provides training and consultancy services 48.00 48.00

Arabian Malaysian Takaful Company # Health and family Takaful business 17.04 17.04

# Incorporated in Bahrain

On 14 March 2007, the investment in an associated company, MySPEED.com Sdn Bhd has been fully disposed for a pur-chase consideration of RM950,000.

Notes to the Financial Statements

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15. ProPerty, Plant and eQuiPMent furniture, computer Group **land fixtures, equipment and and office Motor and building fittings equipment vehicles software total cost rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

At 1 July 2005 98,166 75,692 108,560 5,868 134,588 422,874 Additions 1,002 20,341 7,375 967 16,982 46,667 Reclassifications 4,199 (18,936) 10,576 (421) 4,555 (27) Disposals - (559) (150) (2,337) - (3,046) Exchange difference (53) - (135) (9) - (197)

At 30 June 2006/1 July 2006 103,314 76,538 126,226 4,068 156,125 466,271 Additions 14,666 9,346 21,747 573 10,452 56,784 Reclassifications (5,346) 8,916 (1,350) - (2,220) 5,366 Disposals (49) (94) (59) (881) - (1,083) Written off - - (3,969) - (7,644) (11,613) Exchange difference (2,444) (181) 1,075 104 - (1,446)

At 30 June 2007 110,141 94,525 143,670 3,864 156,713 508,913 depreciation and impairment loss At 1 July 2005 Accumulated depreciation 19,921 38,359 87,331 4,193 102,033 251,837 Accumulated impairment loss - - - - - - 19,921 38,359 87,331 4,193 102,033 251,837 Depreciation of the year 2,075 7,843 13,813 553 9,472 33,756 Disposals - - (128) (2,262) - (2,390) Reclassifications (46) (331) (50) (338) - (765) Exchange difference (43) - (128) (7) - (178)

At 30 June 2006/1 July 2006 Accumulated depreciation 21,907 45,871 100,838 2,139 111,505 282,260 Accumulated impairment loss - - - - - - 21,907 45,871 100,838 2,139 111,505 282,260 Depreciation of the year 5,799 28,498 11,467 837 60 46,661 Impairment loss 11,424 - - - - 11,424 Disposals (169) (5) (44) (698) - (916) Exchange difference (2,145) (429) 922 (10) - (1,662)

At 30 June 2007 Accumulated depreciation 25,392 73,935 113,183 2,268 111,565 326,343 Accumulated impairment loss 11,424 - - - - 11,424 36,816 73,935 113,183 2,268 111,565 337,767

carrying amounts

At 1 July 2005 78,245 37,333 21,229 1,675 32,555 171,037

At 30 June 2006/1 July 2006 81,407 30,667 25,388 1,929 44,620 184,011

At 30 June 2007 73,325 20,590 30,487 1,596 45,148 171,146

Notes to the Financial Statements

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15. ProPerty, Plant and eQuiPMent (cont’d) ** land and building

Buildings Building improvements freehold leasehold freehold leasehold in and land land building building progress renovations total cost rM’000 rM’000 rM’000 rM’000 rM’000 rM’000 rM’000 At 1 July 2005 11,282 15,211 31,549 4,474 16,109 19,541 98,166 Additions 490 - 28 - 261 223 1,002 Reclassifications - - - - - 4,199 4,199 Exchange difference - - - - - (53) (53)

At 30 June 2006/1 July 2006 11,772 15,211 31,577 4,474 16,370 23,910 103,314 Additions 454 - - - - 14,212 14,666 Reclassifications - - - - 12 (5,358) (5,346) Disposals (49) - - - - - (49) Exchange difference (743) (29) - - - (1,672) (2,444)

At 30 June 2007 11,434 15,182 31,577 4,474 16,382 31,092 110,141 depreciation and impairment loss At 1 July 2005 Accumulated depreciation - 49 7,284 900 1,184 10,504 19,921 Accumulated impairment loss - - - - - - - - 49 7,284 900 1,184 10,504 19,921 Depreciation of the year - 4 774 90 105 1,102 2,075 Reclassifications - - (6) 6 - (46) (46) Exchange difference - - - - - (43) (43)

At 30 June 2006/1 July 2006 Accumulated depreciation - 53 8,052 996 1,289 11,517 21,907 Accumulated impairment loss - - - - - - - - 53 8,052 996 1,289 11,517 21,907 Depreciation of the year - 31 719 (122) - 5,171 5,799 Impairment loss - - - - 11,424 - 11,424 Disposals - - (169) - - - (169) Exchange difference - - (20) - - (2,125) (2,145)

At 30 June 2007 Accumulated depreciation - 84 8,582 874 1,289 14,563 25,392 Accumulated impairment loss - - - - 11,424 - 11,424 - 84 8,582 874 12,713 14,563 36,816 carrying amounts At 1 July 2005 11,282 15,162 24,265 3,574 14,925 9,037 78,245

At 30 June 2006/1 July 2006 11,772 15,158 23,525 3,478 15,081 12,393 81,407

At 30 June 2006 11,434 15,098 22,995 3,600 3,669 16,529 73,325

Notes to the Financial Statements

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15. ProPerty, Plant and eQuiPMent (cont’d) long term office renovation leasehold equipment work-in company land* and computer progress total rM’000 rM’000 rM’000 rM’000 cost At 1 July 2005/30 June 2006/1 July 2006 666 - - 666 Additions - 47 352 399 Disposal (666) - - (666)

At 30 June 2007 - 47 352 399

carrying amount At 1 July 2005/30 June 2006 666 - - 666

At 30 June 2007 - 47 352 399

* The land was registered under the name of a subsidiary, Bank Islam Malaysia Berhad.

16. General taKaful and faMily taKaful funds’ Balance sheet as at 30 June 2007

2007 2006 General family General family takaful takaful takaful takaful fund fund total fund fund total rM’000 rM’000 rM’000 rM’000 rM’000 rM’000 assets Property, plant and Equipment 7 7,977 7,984 41,817 183,494 225,311 Investment properties 40,376 200,053 240,429 - - - Investments 414,809 2,160,969 2,575,778 382,686 1,967,868 2,350,554 Investments-linked business - 37,682 37,682 - 25,747 25,747 Financing receivables 2,700 6,053 8,753 4,616 13,445 18,061 Receivables 70,234 91,352 161,586 103,484 76,896 180,380 Cash and bank balances 24,738 53,877 78,615 5,081 7,494 12,575

552,864 2,557,963 3,110,827 537,684 2,274,944 2,812,628

Notes to the Financial Statements

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16. General taKaful and faMily taKaful funds’ Balance sheet as at 30 June 2007 (cont’d)

2007 2006 General family General family takaful takaful takaful takaful fund fund total fund fund total rM’000 rM’000 rM’000 rM’000 rM’000 rM’000 liabilities Payables 128,202 116,793 244,995 155,113 71,322 226,435 Provision for outstanding claims 164,294 85,190 249,484 94,074 45,498 139,572 Investment-linked business liabilities - 4,569 4,569 - 1,071 1,071

292,496 206,552 499,048 249,187 117,891 367,078

General Takaful and Family Takaful participants’ funds 260,368 2,351,411 2,611,779 288,497 2,157,054 2,445,551

552,864 2,557,963 3,110,827 537,684 2,274,945 2,812,628

17. dePosits froM custoMers

(i) By type of deposit Group 2007 2006 rM’000 rM’000 non-mudharabah fund Demand deposits 4,555,125 3,555,146 Savings deposits 1,589,308 1,422,174 Negotiable Islamic Debt Certificates (NIDC) 4,596,717 2,480,933 Others 35,222 24,897

10,776,372 7,483,150 Mudharabah fund Savings deposits 467,390 454,387 General investment deposits 2,015,116 2,417,239 Specific investment deposits 4,129,132 3,784,717 Others 623 9,100

6,612,261 6,665,443

17,388,633 14,148,593

Notes to the Financial Statements

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17. dePosits froM custoMers (cont’d)

(ii) By type of customer Group 2007 2006 rM’000 rM’000 Government and statutory bodies 3,309,885 2,876,855 Business enterprises 6,097,683 5,433,895 Individuals 2,549,629 2,292,431 Others 5,431,436 3,545,412

17,388,633 14,148,593

18. dePosits and PlaceMents of BanKs and other financial institutions Group 2007 2006 rM’000 rM’000

Mudharabah fund:Licensed banks 33,991 63,028

19. other liaBilities Group company 2007 2006 2007 2006 note rM’000 rM’000 rM’000 rM’000 restated

Clients’ and dealers’ credit balances 18,306 3,987 - - Sundry payables 242,231 291,648 2,556 6,359Profit equalisation reserve 20 57,402 9,490 - - Amount due to subsidiaries a - - 7,311 7,169

317,939 305,125 9,867 13,528

note a The amount due to subsidiaries is unsecured, not subject to financing charge and has no fixed terms of repayment.

Notes to the Financial Statements

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20. Profit eQualisation reserve (“Per”)

Group 2007 2006 rM’000 rM’000 At 1 July 9,490 - Recognised in the income statement 47,921 9,308 Transferred from general allowance - 3,150 Transferred to profit payable to depositor - (2,968) Exchange difference (9) -

At 30 June 57,402 9,490

21. aMount due to a corPorate shareholder The Company had entered into an agreement dated 2 December 2005 with its substantial shareholder Lembaga Tabung

Haji (“LTH”), for LTH to advance RM280 million as Shareholder’s Advance (“SA”) under a Qardul Hassan agreement. The SA was fully drawn down in December 2005 and was subsequently utilised by the Company to subscribe for new ordinary shares of RM1 each in Bank Islam Malaysia Berhad. RM206.5 million of the SA was repaid through allotment and issuance of the Company’s shares to LTH pursuant to the rights issue exercise by the Company during the year. The remaining RM73.5 million was repaid on 30 April 2007.

22. caPital and reserve

share capital Group and company 2007 2006 rM’000 rM’000

authorised: Ordinary shares of RM1 each 2,000,000 2,000,000 One Special Rights Redeemable Preference Share of RM1 * *

2,000,000 2,000,000

issued and fully paid: Ordinary shares of RM1 each on issue at 1 July 562,965 562,965 Issued during the year 328,425 -

On issue at 30 June 891,390 562,965

* Represents RM1

Notes to the Financial Statements

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22. caPital and reserve (cont’d)

During the financial year, the Company issued a total of 328,424,896 new ordinary shares of RM1 each which comprised as follows:

(a) pursuant to the Company’s rights issue, 281,482,480 new ordinary shares were issued at a cash consideration of approximately RM281.5 million for working capital purposes; and

(b) pursuant to the Company’s acquisition of 49% interest in BIMB Securities Sdn Bhd, 46,942,416 new ordinary shares of RM1 each were issued for a total consideration of approximately RM54.4 million.

section 108 tax credit

Subject to agreement by the Inland Revenue Board, the Company has sufficient Section 108 tax credit and tax exempt income to frank approximately RM79,002,000 if paid out as dividends.

23. incoMe derived froM investMent of dePositors’ funds Group 2007 2006 rM’000 rM’000

Income derived from investment of: (i) general investment deposits 144,812 193,116 (ii) other deposits 708,722 595,540

853,534 788,656

(i) income derived from investment of general investment deposits

Group 2007 2006 rM’000 rM’000

financing income and hibah Financing, advances and others 111,014 147,656 Securities: - Held-for-trading 46 3,726 - Available-for-sale 8,874 18,055 - Held-to-maturity 138 - Money at call and deposit with financial institutions 15,951 13,255

136,023 182,692 Amortisation of premium less accretion of discounts 8,995 2,371

145,018 185,063

Notes to the Financial Statements

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23. incoMe derived froM investMent of dePositors’ funds (cont’d)

(i) income derived from investment of general investment deposits (cont’d) Group 2007 2006 rM’000 rM’000 other dealing income Net gain from foreign exchange transactions - 3,116 Net (loss)/gain from sale of securities held-for-trading (404) 3,507 Net gain on revaluation of securities held-for-trading 50 82

144,664 191,768 other operating income Net gain from sale of securities available-for-sale 74 1,348 Gross dividend income from securities: quoted in Malaysia 74 -

144,812 193,116

(ii) income derived from investment of other deposits

Group 2007 2006 rM’000 rM’000

financing income and hibah Financing, advances and others 536,864 479,998 Securities: - Held-for-trading 306 15,592 - Held-to-maturity 854 - - Available-for-sale 14,313 16,368 Money at call and deposit with financial institutions 97,929 53,890

650,266 565,848 Amortisation of premium less accretion of discounts 57,880 11,917

708,146 577,765

other dealing income Net gain from foreign exchange transactions - 7,598 Net (loss)/gain from sale of securities held-for-trading (268) 4,202 Net gain on revaluation of securities held-for-trading 348 252

708,226 589,817 Net gain from sale of securities available-for-sale 496 5,723

708,722 595,540

Notes to the Financial Statements

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24. incoMe derived froM investMent of shareholders’ funds Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

financing income and hibah Financing, advances and others 5,281 3,632 4,605 9,462 Securities: - Held-for-trading - 3,385 - - - Available-for-sale 24,850 67,095 - - - Held-to-maturity 14,865 - - 38 Money at call and deposit with financial institutions 55,946 24,435 566 288

100,942 98,547 5,171 9,788 Amortisation of premium less accretion of discounts 5,007 7,530 - -

105,949 106,077 5,171 9,788 other dealing income Net gain/(loss) from foreign exchange transactions 15,572 (10,648) - - Net gain from sale of securities held-for-trading 11,572 10,925 - - Net gain on revaluation of securities held-for-trading 7,407 - - -

Balance brought forward 140,500 106,354 5,171 9,788

Balance carried forward 140,500 106,354 5,171 9,788 other operating income Net gain/(loss) from sale of securities available-for-sale 2,160 2,835 1,725 (1,344) Unrealised foreign exchange gain on foreign currency cash balances 3,508 751 - - Reversal of allowance for diminution in value of investments 1,242 1,318 - - Profits from General Takaful and Family Takaful funds attributable to the Group 170,837 133,023 - - Gross dividend income from securities: Quoted in Malaysia 1,422 809 907 809 Unit trust 286 1,981 466 1,690 Unquoted in Malaysia 643 2,543 - - Unquoted outside Malaysia 57 - - - Gain on disposal of unquoted investments in Malaysia - 1,690 - - Gain on disposal of associate 950 - - - Gross dividend income - subsidiary companies 1,654 - 10,525 17,589 Fees and commission 65,762 63,486 - - Net gain on disposal of property, plant and equipment 20 - - - Hibah - - 6,070 - Gain from dilution of interest in a subsidiary 631,507 - - - Others 8,903 12,507 5,324 594

1,029,451 327,297 30,188 29,126

Notes to the Financial Statements

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25. alloWance for losses on financinG

Group 2007 2006 rM’000 rM’000

Allowance for bad and doubtful financing: - Specific allowance - Made in the financial year 275,389 1,212,296 - Written back (228,208) (83,273) - General allowance - Made in the financial year 3,074 29,437 - Written back - (6,298) - Transfer - (11,342) - Deferred allowance for bad and doubtful financing expensed off - 167,498 Bad debts and financing: - Recovered (21,831) (18,799) Recoverable from Danaharta (1,616) - Exchange difference (2,069) 10,959

24,739 1,300,478

26. iMPairMent losses

Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

Securities: Held-to-maturity - 55,887 - - Available-for-sale (75,002) 104,254 - -

Exchange difference - 980 - -

(75,002) 161,121 - - Investment in associates - 3,340 - 4,870 Investment in a subsidiary (“BIMB”) - - - 156,027

(75,002) 164,461 - 160,897

Notes to the Financial Statements

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27. incoMe attriButaBle to dePositors

Group 2007 2006 rM’000 rM’000

Deposits from customers - Mudharabah Fund 233,238 209,361 - Non-Mudharabah Fund 163,557 132,116 Deposits and placements of banks and other financial institutions - Mudharabah Fund 5,620 22,628

402,415 364,105

28. Personnel exPenses Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

Salaries and wages 177,676 159,914 450 - Allowance and bonuses 58,168 27,112 33 - Employees’ Provident Fund 25,345 21,734 71 - Directors’ remuneration 2,344 1,988 1,717 124 Others 6,635 22,759 1,240 -

270,168 233,507 3,511 124

share option plan

The Company offers vested share options over ordinary shares to Executive Directors and all employees of the Group who have been confirmed in writing and are in the employment of the Group. The balance in the number of share options held by employees are as follows:

company 2007 2006 rM’000 rM’000

Outstanding at 30 June 50,913 50,913

Terms of the options outstanding at 30 June 2007:

expiry date exercise price number

21 August 2007 RM2.13 45,868,500 21 August 2007 RM2.43 5,044,000

50,912,500

No share options were granted by the Company or exercised by the option holders during the financial year.

Notes to the Financial Statements

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29. other overhead exPenses

Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

Promotion 13,767 13,299 18 10 Establishment 64,216 38,402 228 229 General expenses 130,630 116,298 1,556 2,018

208,613 167,999 1,802 2,257

Included in other overhead expenses are:

Allowance for doubtful debts (10) 7,313 - - Auditors’ remuneration - Auditors of the Company 808 319 13 13 - Other auditors 320 11 - - Goodwill written off 2,450 - - - Rental of properties 30,518 23,296 - - Property, plant and equipment written off 7,644 - - - Rental of equipment 4,741 3,145 - -

30. directors’ and shariah suPervisory council MeMBers’ reMuneration

(a) (i) Aggregate remuneration of Directors of the Company categorised into appropriate components are as follows: Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

Executive Director: Allowances 62 284 - 14 Salaries, bonuses and EPF contributions 1,113 1,087 1,113 51 Other remuneration – Gratuity 160 70 160 - Benefits-in-kind 218 198 218 -

1,553 1,639 1,491 65

Notes to the Financial Statements

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30. directors’ and shariah suPervisory council MeMBers’ reMuneration (cont’d)

Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

Non-Executive Directors: Fees and allowances 791 349 226 162

Total 2,344 1,988 1,717 227

Total (excluding benefits-in-kind) 2,126 1,790 1,499 227

Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

(ii) Shariah Supervisory Council 142 130 - -

(b) (i) The number of Directors of the Company, whose remuneration are paid/payable for their services, fall within the following bands:

Group 2007 2006

number of executive directors Below RM100,000 - 1 * More than RM1,000,000 1 - number of non-executive directors Below RM100,000 8 7 RM100,001 and RM400,000 1 1

Total 10 9

(ii) Number of Shariah Supervisory Council Members 6 6

* Re-designated as an Executive Director of the Company on 9 June 2007.

31. finance cost Group 2007 2006 rM’000 rM’000 Hibah 13,370 6,000

Payment made to LTH for Hibah charges in relation to the RM280 million advance made to the Company.

Notes to the Financial Statements

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32. tax exPense (i) Major components of tax expense Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

current tax expense: Malaysia - current year 8,668 4,036 6,522 6,500 - prior years 2,648 22,065 - 2,392

11,316 26,101 6,522 8,892 deferred tax expense: Origination and reversal of temporary differences (2,790) 4,353 - -

8,526 30,454 6,522 8,892

(ii) reconciliation of effective tax expense Group company 2007 2006 2007 2006 rM’000 rM’000 rM’000 rM’000

Profit/(Loss) before tax 928,866 (1,177,939) 24,875 (140,152)

Income tax using Malaysia tax rate of 27% (2006: 28%) 250,794 (329,823) 6,716 (39,243) Deferred tax assets (recognised)/not recognised (134,683) 216,177 - - Non-taxable income (193,191) (1,163) (511) (60) Non-deductible expenses 69,676 123,563 308 45,797 Effect of current year tax loss not recognised 13,886 - - - Other items (604) (365) 9 6

5,878 8,389 6,522 6,500 Under provision in prior years 2,648 22,065 - 2,392

Tax expense 8,526 30,454 6,522 8,892

With effect from year of assessment 2007, corporate tax rate is at 27%. The Malaysian Budget 2007 also announced the reduction of corporate tax rate to 26% in 2008.

Notes to the Financial Statements

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33. earninGs Per share

Basic earnings per share

Basic earnings per share of the Company is calculated by dividing the net profit for the year by the number of ordinary shares in issue during the year.

2007 2006 rM’000 rM’000

Net profit/(loss) for the year 799,322 (1,230,008)

Weighted average number of ordinary shares 805,004 562,965

Basic earnings/(loss) per share (sen) 99.29 (218.49)

diluted earnings per share

The assumed conversion of ESOS in the current year has an anti-dilutive effect on the loss per share of the Group and is therefore not disclosed.

Weighted average number of ordinary shares Group 2007 2006 rM’000 rM’000

Issued ordinary shares at 1 July 562,965 562,965 Effect of shares issued in 31 March 2007 242,039 -

Weighted average number of ordinary shares at 30 June 805,004 562,965

34. dividends

Dividends recognised by the Company are:

sen total per share amount date of payment 2006 rM’000 Final 2005 ordinary 2.5 10,133 30 December 2005

After the balance sheet date, the following dividends were proposed by the Directors. These dividends will be recognised in subsequent financial reports upon approval by the shareholders.

Notes to the Financial Statements

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34. dividends (cont’d)

sen total per share amount 2007 (net of tax) rM’000 Final ordinary 1.5 13,192

35. related Party transactions

(i) identity of related parties

For the purposes of these financial statements, parties are considered to be related to the Group if the Group has the ability, directly or indirectly, to control the party or exercise significant influence over the party in making financial and operating decisions, or vice versa, or where the Group and the party are subject to common control or common significant influence. Related parties may be individuals or other entities.

The Group has a related party relationship with its subsidiaries (see note 13) and associate company (see note 14). company 2007 2006 rM’000 rM’000

expenditure Income attributable on deposits placed 446 297 Finance cost 4,255 10,157 Hibah 13,370 -

amounts due from Others 511 363

amounts due to Current account and investment deposits 25,146 3,561 Subordinated financing 100,000 100,000 Others 19 -

(ii) related party transactions

Significant transactions and balances with other related parties other than those disclosed elsewhere in the financial statements are as follows:

Group 2007 2006 rM’000 rM’000

Rental of premises paid to institutional shareholders: - Lembaga Tabung Haji 2,260 3,064 Brokerage fees paid by institutional shareholders: - Lembaga Tabung Haji 383 287

Notes to the Financial Statements

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35. related Party transactions (cont’d)

A Director is authorised to trade, under his own discretion, though a trading account co-owned by the Director and a subsidiary. Under the arrangement, any trading loss is borne by the Director, whereas any gain is equally shared by the Director and the subsidiary. Transactions entered into through this trading account are as follows:-

Group 2007 2006 rM’000 rM’000

Sales of securities 1,967 1,390 Purchase of securities 2,211 1,186

36. coMMitMents and continGencies

In the normal course of business, Bank Islam Malaysia Berhad and its subsidiaries make various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions.

Risk Weighted Exposure arising from the commitments and contingencies of this subsidiary as at 30 June are as follows:

credit risk Principal equivalent weighted amount amount amount 2007 rM’000 rM’000 rM’000

Direct credit substitutes 347,830 347,830 334,526 Transaction-related contingent items 411,564 205,782 203,861 Short term self-liquidating trade related contingencies 708,495 141,699 20,648 Assets sold with recourse and commitments with certain drawdown 119 119 119 Obligation under underwriting agreement 99,000 49,500 49,500 Foreign exchange related contracts 1,965,760 39,315 7,863 Miscellaneous 1,404,455 497,218 468,775

4,937,223 1,281,463 1,085,292

Notes to the Financial Statements

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36. coMMitMents and continGencies (cont’d)

credit risk Principal equivalent weighted amount amount amount 2006 rM’000 rM’000 rM’000

Direct credit substitutes 251,029 251,029 238,060 Transaction-related contingent items 323,360 161,680 160,078 Short term self-liquidating trade related contingencies 851,528 170,306 14,389 Assets sold with recourse and commitments with certain drawdown 60,925 60,925 60,925 Obligation under underwriting agreement 89,000 44,500 44,500 Foreign exchange related contracts 1,361,105 27,222 5,444 Miscellaneous 1,089,434 468,037 -

4,026,381 1,183,699 523,396

* The credit equivalent amount is arrived at using the credit conversion factor as per Bank Negara Malaysia guidelines.

2007 2006 credit credit Principal equivalent Principal equivalent amount amount* amount amount* rM’000 rM’000 rM’000 rM’000

Foreign exchange contracts - Forward contracts 1,522,889 30,458 1,155,980 23,120 - Others 442,871 8,857 205,125 4,102

Total 1,965,760 39,315 1,361,105 27,222

Foreign exchange related contracts are subject to market risk and credit risk.

Market risk

Market risk is the potential change in value caused by movement in market rates or prices. The contractual amounts stated above provide only a measure of involvement in these types of transactions and do not represent the amounts subject to market risk. Exposure to market risk may be reduced through offsetting on and off-balance sheet positions.

credit risk

Credit risk is a risk that a counterparty will be unable to meet the terms of a contract in which the Group has a gain position.

Notes to the Financial Statements

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37. financial risK ManaGeMent Policies

operational risk This risk is defined as the risk of loss arising from inadequate or failed internal processes, people and systems and

external events. In managing this risk a dedicated team has been established. The team is responsible for identification, assessment and measurement, control framework, monitoring and reporting of operational risks.

credit risk Credit risk is the potential loss of revenue and principal in the form of specific allowances as a result of defaults by the

customers or counter parties through the financing, dealing and investing activities.

The primary exposure to credit risk arises from financing activities. Credit policy to govern the activities is rigorously being enhanced with the objectives of improving and preserving the quality of assets originated. This is in line with the on-going organisation transformation.

Under the credit process flow, credit administration, credit control, review and analysis are performed independently of individuals involved in business origination. In addition, an independent evaluation of credit proposal before approval has been established for all proposal involving corporate and commercial. This function is performed by the risk management division.

Credit risk arising from dealing and investing activities are managed by the establishment of limits which includes counter parties limits and permissible acquisition of not less than A-rated private entities’ instruments. Furthermore, the dealing and investing activities are monitored by an independent middle office unit.

underwriting risk Underwriting risk includes the risk of incurring higher claims costs than expected owing to the random nature of claims

and their frequency and severity and the risk of change in legal or economic conditions or behavioural patterns affecting takaful pricing and conditions of takaful or retakaful cover. This may result in the situation of having either received too little contribution for the risk it has agreed to underwrite and hence has not enough funds to invest and pay claims, or claims are in excess of those expected.

The Group seeks to minimise underwriting risks with a balance mix and spread of business between classes of business and by observing underwriting guidelines and limits, conservative estimation of the claims provisions and high standards applied to security at retakaful.

Notes to the Financial Statements

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37. financial risK ManaGeMent Policies (cont’d) Market risk

Market risk is the risk of loss arising from the adverse movement in the level of market prices or rates. The market risk components are foreign exchange risk, profit rate risk and equity risk.

i) Foreignexchangerisk

This risk refers to the adverse exchange rate movements on foreign currency positions taken by the Group. Foreign currency open position is monitored against predetermined position limits and cut-loss limits.

ii) Profitraterisk

This risk refers to volatility in the net profit income as a result of changes in the levels of profit rate and shift in the composition of the assets and liabilities. The profit rate risk, however, is self-mitigated when most of the financing assets are based on fixed rate while profit paid to depositors are not contractual.

Profit paid to depositors/investors depends on the profit generated from the Bank’s activities and the profit sharing distribution.

The Group is not exposed directly to interest rate risk because interest is prohibited under Islamic banking. The indirect interest rate risk exists arising from competition with other banks. This is managed by regularly reviewing the Bank profit rates.

iii) Equityrisk

Equity risk refers to the adverse movements in the price of equities on equity positions. Equity position is marked to market and monitored by the Risk Management Division and reported to the Risk Management Committee.

liquidity risk

Liquidity risk is related to the risk arising mainly from withdrawals of deposits. In managing this, the Group is adopting the liquidity framework introduced by Bank Negara Malaysia which ascertain liquidity based on the contractual and behavioural cash flow of assets, liabilities and off-balance sheet commitments.

Notes to the Financial Statements

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-

-

-

-

-

3,89

1,93

6 -

3,

891,

936

8,07

5,89

7 1,

653,

929

974,

580

2,37

6,44

7 3,

920,

043

5,24

0,16

0 38

6,17

0 22

,627

,226

li

abili

ties

D

epos

its fr

om c

usto

mer

s 2,

714,

679

1,94

3,09

9 4,

129,

285

1,11

3,75

9 1,

003,

724

6,48

4,08

7 -

17

,388

,633

2.

56

Dep

osits

and

pla

cem

ents

of b

anks

an

d o

ther

fina

ncia

l ins

titut

ions

33

,991

-

-

-

-

-

-

33

,991

2.

70

Bill

s an

d a

ccep

tanc

e p

ayab

le

109,

189

-

-

-

-

-

-

109,

189

O

ther

liab

ilitie

s -

-

-

-

-

3,

436,

051

-

3,43

6,05

1

to

tal l

iab

ilitie

s 2,

857,

859

1,94

3,09

9 4,

129,

285

1,11

3,75

9 1,

003,

724

9,92

0,13

8 -

20

,967

,864

S

hare

hold

ers’

eq

uity

-

-

-

-

-

1,

659,

362

-

1,65

9,36

2

to

tal l

iab

ilitie

s an

d s

hare

hold

ers’

eq

uity

2,

857,

859

1,94

3,09

9 4,

129,

285

1,11

3,75

9 1,

003,

724

11,5

79,5

00

-

22,6

27,2

26

O

n-b

alan

ce s

heet

pro

fit

sens

itivi

ty g

ap

5,06

4,86

1 (3

77,6

70)

(3,1

55,1

92)

1,18

0,97

7 2,

899,

099

O

ff-b

alan

ce s

heet

pro

fit

se

nsiti

vity

gap

-

-

-

-

-

net

mat

urit

y m

ism

atch

5,

064,

861

(377

,670

) (3

,155

,192

) 1,

180,

977

2,89

9,09

9

Notes to the Financial Statements

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38.

Pr

of

it r

at

e r

isK

(co

nt

’d)

eff

ectiv

e

u

p t

o 1

>

1-3

> 3-

12

1-5

ove

r 5

no

n p

rofi

t tr

adin

g

p

rofi

t

as

at 3

0 Ju

ne 2

006

mo

nth

mo

nths

m

ont

hs

year

s ye

ars

se

nsiti

ve

bo

ok

tota

l ra

te

r

M’0

00

rM

’000

r

M’0

00

rM

’000

r

M’0

00

rM

’000

r

M’0

00

rM

’000

%

a

sset

s

Cas

h an

d s

hort

-ter

m fu

nds

and

dep

osits

and

pla

cem

ents

with

ban

ks

and

oth

er fi

nanc

ial i

nstit

utio

ns

2,28

3,51

9 25

6,58

8 -

-

-

-

401,

747

2,94

1,85

4 3.

10

S

ecur

ities

- H

eld

-for

-tra

din

g -

-

-

-

-

-

279,

176

279,

176

5.64

- H

eld

-to-

mat

urity

-

-

-

41

,362

10

2,46

6 -

- 14

3,82

8 -

- A

vaila

ble

-for

-sal

e 55

9,53

0 49

1,53

3 31

8,07

2 48

1,79

7 34

8,54

5 -

- 2,

199,

477

6.81

Fi

nanc

ing,

ad

vanc

es a

nd o

ther

s

- P

erfo

rmin

g 1,

061,

615

167,

822

981,

101

1,20

8,35

8 4,

377,

978

- -

7,79

6,87

4 8.

33

-

Non

-per

form

ing

-

-

-

-

-

804,

513

- 80

4,51

3

O

ther

ass

ets

-

-

-

-

-

3,57

6,27

8 -

3,57

6,27

8

3,90

4,66

4 91

5,94

3 1,

299,

173

1,73

1,51

7 4,

828,

989

4,38

0,79

1 68

0,92

3 17

,742

,000

li

abili

ties

D

epos

its fr

om c

usto

mer

s 2,

770,

176

1,68

6,93

9 2,

275,

344

1,43

6,82

9 49

8,61

2 5,

480,

693

- 14

,148

,593

2.

49

Dep

osits

and

pla

cem

ents

of b

anks

and

oth

er fi

nanc

ial i

nstit

utio

ns

63,0

28

- -

- -

- -

63,0

28

2.67

B

ills

and

acc

epta

nce

pay

able

10

0,91

9 -

- -

- -

- 10

0,91

9 -

O

ther

liab

ilitie

s -

-

- -

- 3,

401,

318

- 3,

401,

318

-

to

tal l

iab

ilitie

s 2,

934,

123

1,68

6,93

9 2,

275,

344

1,43

6,82

9 49

8,61

2 8,

882,

011

- 17

,713

,858

S

hare

hold

ers’

eq

uity

-

-

- -

- 28

,142

-

28,1

42

To

tal l

iab

ilitie

s an

d

shar

ehol

der

s’ e

qui

ty

2,93

4,12

3 1,

686,

939

2,27

5,34

4 1,

436,

829

498,

612

8,91

0,15

3 -

17,7

42,0

00

O

n-b

alan

ce s

heet

pro

fit

sens

itivi

ty g

ap

614,

876

(770

,996

) (9

76,1

71)

173,

047

4,35

7,52

7

O

ff-b

alan

ce s

heet

pro

fit

se

nsiti

vity

gap

-

-

-

-

-

net

mat

urity

mis

mat

ch

614,

876

(770

,996

) (9

76,1

71)

173,

047

4,35

7,52

7

Notes to the Financial Statements

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39. fair value of financial assets and liaBilities

Financial instruments comprise financial assets, financial liabilities and off-balance sheet instruments. Fair value is the amount at which the financial assets could be exchanged or a financial liability settled, between knowledgeable and willing parties in an arm’s length transaction. The information presented herein represents the estimates of fair values as at the balance sheet date.

Where available, quoted and observable market prices are used as the measure of fair values. Where such quoted and observable market prices are not available, fair values are estimated based on a range of methodologies and assumptions regarding risk characteristics of various financial instruments, discount rates, estimates of future cash flows and other factors. Changes in assumptions could materially affect these estimates and resulting fair value estimates.

Fair value information for non-financial assets and liabilities are excluded as they do not fall within the scope of FRS 1322004, Financial Instruments: Disclosure and Presentation which requires the fair value information to be disclosed.

The following table summarises the carrying and fair values of the financial assets and liabilities on the balance sheet date:

carrying value fair value 2007 2006 2007 2006

Group rM’000 rM’000 rM’000 rM’000

financial assets Cash and short-term funds 6,011,713 2,871,812 6,011,713 2,871,812 Deposits and placements with banks and other financial institutions 287,459 59,476 287,459 59,476 securities Held-for-trading 361,550 279,176 361,550 279,176 Held-to-maturity 181,184 143,828 172,376 143,828 Available-for-sale 3,460,097 2,199,477 3,460,097 2,199,477 Financing, advances and others 8,433,287 8,601,387 8,603,748 8,769,849

financial liabilities Deposits from customers 17,388,633 14,148,593 17,388,633 14,148,593 Deposits and placements of banks and other financial institutions 33,991 63,028 33,991 63,028 Bills and acceptance payable 109,189 100,919 109,189 100,919

Notes to the Financial Statements

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39. fair value of financial assets and liaBilities (cont’d)

carrying value fair value 2007 2006 2007 2006

company rM’000 rM’000 rM’000 rM’000

financial assets Cash and short-term funds 25,146 12,605 25,146 12,605 securities Held-for-trading 20,968 15,527 20,968 15,527 Available-for-sale 11,812 12,319 11,812 12,319 Financing, advances and others 100,000 100,000 100,000 100,000

The fair value of the Group’s financial instruments which include cash and short-term funds, deposits and placements with banks and other financial institutions and short-term borrowings are not materially sensitive to shifts in market profit rate because of the limited term to maturity of these instruments.

As such, the carrying value of these financial assets and liabilities at balance sheet date approximate their fair values.

The fair values are based on the following methodologies and assumptions:

deposits and placements with banks and other financial institutions For deposits and placements with financial instruments with maturities of less than six months, the carrying value is a

reasonable estimate of fair values. For deposits and placements with maturities six months and above, the estimated fair values are based on discounted cash flows using prevailing money market profit rates at which similar deposits and placements would be made with financial instruments of similar credit risk and remaining period to maturity.

securities held-for-trading and securities available-for-sale The estimated fair values are generally based on quoted and observable market prices. Where there is no ready market in

certain securities, fair values have been estimated by reference to market indicative yields or net tangible asset backing of the investee.

financing, advances and others Their fair value is estimated by discounting the estimated future cash flows using the prevailing market rates of financings

with similar credit risks and maturities. The fair values are represented by their carrying value, net of specific allowance and income-in-suspense, being the recoverable amount.

Notes to the Financial Statements

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39. fair value of financial assets and liaBilities (cont’d)

deposits from customers For deposits from customers with maturities of less than six months, the carrying amounts are a reasonable estimate for

their fair values. For deposits with maturities of six months or more, the fair values are estimated using discounted cash flows based on prevailing market rates for similar deposits from customers.

deposits and placements of banks and other financial institutions The estimated fair values of deposits and placements of banks and other financial institutions with maturities of less

than six months approximate the carrying values. For deposits and placements with maturities of six months or more, the fair values are estimated based on discounted cash flows using prevailing money market profit rates for deposits and placements with similar remaining period to maturities.

Bills and acceptance payable The estimated fair values of bills and acceptance payables with maturity of less than six months approximate their

carrying values. For bills and acceptance payable with maturities of six months or more, the fair values are estimated based on discounted cash flows using prevailing market rates for borrowings with similar risks profile.

40. caPital coMMitMents Group 2007 2006 rM’000 rM’000

Property, plant and equipment Contracted but not provided for in the financial statements 9,845 16,335

41. continGent liaBility

The 2008 Budget has proposed to expand Section 60AA of the Income Tax Act 1967 that include the provision that share of profits distributed from the Family Takaful Fund and the General Takaful Fund are allowed as a tax deduction with effect only from the year of assessment 2008. The Group’s Takaful subsidiary, Syarikat Takaful Malaysia Berhad (“STMB”), had in previous years computed its income tax provision on the basis that the share of profits distributed from the respective Takaful Funds are allowed as tax deduction.

Based on advice of STMB’s external tax advisors, STMB’s directors has represented that the Malaysian Takaful Association (“MTA”) has made an appeal to the Ministry of Finance (“MOF”) for the above proposal to be applicable on a retrospective basis. No provision has been made by the Group for the potential tax liabilities of the previous years pending the outcome of the said appeal. The potential tax exposure to the Group assuming that the retrospective basis is rejected by the MOF is approximately RM109,700,000.

Notes to the Financial Statements

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42. caPital adeQuacy Bank Negara Malaysia’s guideline on capital adequacy requires banking institutions to maintain adequate level of capital to

withstand losses which may result from credit and risk associated with financing operations. The risk-weighted capital adequacy ratio of a subsidiary, Bank Islam Malaysia Berhad and its subsidiaries is analysed as

follows:

2007 2006 rM’000 rM’000

tier-i capital Paid-up share capital 1,725,490 880,000 Share premium 500,020 331,375 (Accumulated losses) (1,567,889) (1,668,690) Other reserves 364,645 215,923

total tier-1 capital 1,022,266 (241,392)

tier-ii capital Redeemable Subordinated Mudharabah financing 60,000 100,000 General allowance for bad and doubtful financing 170,461 168,462

total tier-ii capital 230,461 268,462

total capital 1,252,727 (241,392) less: Investment in Subsidiaries - -

Capital base 1,252,727 (241,392)

Group 2007 2006 Core capital ratio 10.42% -2.47% Risk-weighted capital ratio 12.77% -2.47% Core capital ratio after proposed dividends 10.42% -2.47% Risk-weighted capital ratio after proposed dividends 12.77% -2.47%

Notes to the Financial Statements

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42. caPital adeQuacy (cont’d)

Breakdown of risk weighted assets in the various categories of risk weights:

2007 2006 Risk Risk Principal weighted Principal weighted rM’000 rM’000 rM’000 rM’000 0% 7,622,791 - 3,556,085 - 10% 13,734 1,373 13,640 1,364 20% 555,881 111,176 773,735 154,747 50% 2,443,545 1,221,772 2,435,386 1,217,693 100% 8,291,455 8,291,455 7,918,276 7,918,277

Total risk-weighted assets for credit risk 18,927,406 9,625,776 14,697,122 9,292,081 Total risk-weighted assets for market risk - 184,730 - 471,239

Total risk-weighted assets for credit and market risk 18,927,406 9,810,506 14,697,122 9,763,320

43. seGMental inforMation

The inter-segment transactions have been entered into in the normal course of business and have been established under negotiated terms.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise corporate assets and expenses.

The Group operates predominantly in Malaysia and accordingly, information by geographical location on the Group’s operation is not presented.

Segment information is presented in respect of the Group’s main business segments.

Businesssegments

The Group comprises of the following main business segments:

Banking Islamic banking and provision of related services.

Takaful Underwriting of family and general Islamic insurance (“Takaful”).

Others Investment holding, currency trading, ijarah financing, stockbroking.

Notes to the Financial Statements

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43. seGMental inforMation (cont’d)

2007 Banking offshore domestic takaful others elimination consolidated rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Business segments

Revenue from external customers 30,295 999,193 193,460 28,530 - 1,251,478 Inter-segment revenue - 8,287 8,884 36,058 (53,229) -

total revenue 30,295 1,007,480 202,344 64,588 (53,229) 1,251,478

segment result

Operating profit 52,764 195,660 26,377 54,641 612,794 942,236 Finance costs (13,370) Zakat (8,094) Tax expense (8,526)

Profit for the year 912,246 Business segments

Segment assets 544,485 18,543,818 3,527,565 1,704,639 (1,693,430) 22,627,077 Investment in associates - - - 149 - 149

Total assets 544,485 18,543,818 3,527,565 1,704,788 (1,693,430) 22,627,226

Segment liabilities 1,204,065 16,835,127 3,192,232 65,138 (328,698) 20,967,864

Capital expenditure 7 39,742 Depreciation 139 20,588 18,842 7,092 - 46,661

Notes to the Financial Statements

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43. seGMental inforMation (cont’d)

2006 Banking offshore domestic takaful others elimination consolidated rM’000 rM’000 rM’000 rM’000 rM’000 rM’000

Revenue from external customers 60,754 892,803 164,521 16,924 - 1,135,002 Inter-segment revenue - 7,076 11,971 58,968 (78,015) -

total revenue 60,754 899,879 176,492 75,892 (78,015) 1,135,002

segment result Operating loss (345,303) (921,701) 45,739 (104,651) 154,595 (1,171,321) Finance costs (6,000) Share of profit of associates (618) Zakat (7,065) Tax expense (30,454)

net loss for the year (1,215,458)

Business segments

Segment assets 721,505 13,877,062 3,200,533 1,678,746 (1,733,217) 17,744,629 Investment in associates - - - 149 - 149

Total assets 721,505 13,877,062 3,200,533 1,678,895 (1,733,217) 17,744,778

Segment liabilities 502,968 14,343,641 2,884,403 324,313 (338,689) 17,716,636

Capital expenditure - 20,604 30,303 57 - 50,964 Depreciation 222 17,491 12,526 7,047 - 37,286 Expensed off deferred allowance for bad and doubtful financing that was previously amortised over 7 years - 167,498 - - - 167,498

44. Prior year adJustMents

There were numerous un-reconciled differences in the accounting records of a subsidiary, Syarikat Takaful Malaysia Berhad (“STMB”), in the previous financial year which resulted in the issuance of a qualified audit opinion on the consolidated financial statements for the year ended 30 June 2006. Since then, STMB has made great efforts which included engaging third party consultants to identify and clear the numerous reconciling items in the accounting records and made adjustments to the financial statements. Given the continued growth of the STMB’s business operations over the years which resulted in the significant volume of transactions that had to be manually processed, it was impracticable within the time constraint for financial statements issuance to determine the period-specific effects that some of these adjustments might have on the previous years’ financial statements.

Given the impracticality and pursuant to paragraph 44 of FRS108: Accounting Policies, Changes in Accounting Estimates and Errors, the Group has incorporated the necessary adjustments against the opening accumulated losses, minority interests and General Takaful and Family Takaful participants’ funds as at 1 July 2006. RM2.9 million, RM1.3 million and RM2.8 million have been credited to the opening accumulated losses, minority interests and General Takaful participants’ fund, respectively. An amount of RM41.4 million has been charged to the opening Family Takaful participants’ fund.

Notes to the Financial Statements

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45. coMParative fiGures

The presentation and classification of items for the following comparative figures have been restated to conform with current year’s presentation:

Group as as previously restated stated rM’000 rM’000

Balance sheet as at 30 June 2006 Assets Cash and short term funds 2,882,378 2,884,387 Deposits and placements with financial institutions 59,476 796,548 Securities: Held-for-trading 279,176 303,219 Available-for-sale 2,199,477 2,424,115 Held-to-maturity 143,828 1,534,374 Financing, advances and other loans 8,601,387 8,467,274 Other assets 93,360 436,382 Property, plant and equipment 184,011 409,323 General Takaful and Family Takaful assets 2,812,628 -

Liabilities Other liabilities 305,125 672,202 General Takaful and Family Takaful liabilities 367,078 - General Takaful and Family Takaful participants’ funds 2,445,551 - Takaful funds General Takaful fund - 2,157,054 Family Takaful fund - 288,497

income statement for the year ended 30 June 2006 Income derived from investment of shareholders’ funds 327,297 346,346 Impairment losses (164,461) (183,511) Direct expenses (13,660) - Depreciation (33,756) (37,286) Other overhead expenses (167,999) (178,129)

Notes to the Financial Statements

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Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

harta tanah MiliK BanK islaM

ProPerties oWned By BanK islaM

lokasi Keterangan Kegunaan tempoh hak Milik Keluasan tanah nilai Buku tarikh Pembelian

location description of tenure Kawasan Binaan Bersih pada date of

existing use (meter persegi) 30.06.2007 acquisition

land Built-up area net Book

(square metre) value as at

30.06.2007

(rM)

H.S. (D) 80625 Tanah tapak bangunan Pajakan 99 tahun 6,597 14,076,345 30.12.1994

P.T. 45 Seksyen 87 Building site berakhir 29.12.2093

Jalan Tun Razak Leasehold for 99 years

Bandar Kuala Lumpur expiring on 29.12.2093

No P.T. 1708 & 1709 Tanah tidak digunakan Pajakan 99 tahun 4,443 70,560 03.04.1986

H.S. (M) 2660 & 2661 Vacant land berakhir 02.04.2085

Batu 5½ Jalan Cheras Leasehold for 99 years

Kuala Lumpur expiring on 02.04.2085

Lot No P.T. 805 Tanah tidak digunakan Pajakan 99 tahun 405,000 637,103 04.02.2002

- HSD 1323 Vacant land berakhir 03.02.2101

Mukim Nakhoda Omar Leasehold for 99 years

Sabak Bernam expiring on 03.02.2101

Selangor Darul Ehsan

harta tanah syariKat al-iJarah sdn Bhd

ProPerties oWned By syariKat al-iJarah sdn Bhd

lokasi Keterangan Kegunaan tempoh hak Milik usia Bangunan nilai Buku tarikh Pembelian

location description of tenure age of Buildings Bersih pada date of

existing use (tahun/year) 30.06.2007 acquisition

net Book

value as at

30.06.2007

(rM)

No. P.T. Lot 002600 & Rumah kedai 4 tingkat Pegangan bebas 22 1,116,411 30.09.1985

H.S. (D) 815 & 816 171 & 273 meter persegi Freehold

Lot 002601. No 71 & 73 untuk operasi

Jalan Taman Selat Off Bank Islam

Jalan Bagan Luar 4-storey shophouse

171 & 273 square metres

for Bank Islam operation

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Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

1

2

3

4

5

6

Lot 11 & 12

Plaza Melaka

Jalan Hang Tuah

75300 Melaka

Lot 1 & 2

Kompleks Perniagaan

Fajar

91000 Tawau

Sabah

No. 64 & 65

Kompleks Jitra

Jalan Sungai Korok

06000 Jitra

Kedah Darul Aman

No. 23

Medan Istana 3

Bandar Ipoh Raya

30450 Ipoh

Perak Darul Ridzuan

No. 84

Batu 3 1/4

Jalan Gombak

53000

Kuala Lumpur

Lot 6966, Blok 59

Muara Tuang

Jalan Datok Mohd

Musa

94300 Kota Samarahan

Sarawak

Dua unit Rumah kedai/

Pejabat 4 1/2 tingkat

Two units of 4 1/2 storey

Shophouse/Office

Tiga unit Kompleks

Perniagaan/

Pejabat 4 tingkat

Three units of 4 storey

Commercial Complex/

Office

Dua unit Rumah kedai/

Pejabat 2 tingkat

Two units of 2 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 3 tingkat

One unit of 3 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 5 tingkat

One unit of 5 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 3 tingkat

One unit of 3 storey

Shophouse/Office

Pegangan Bebas

Freehold

Pajakan bandar

999 tahun

berakhir pada

31.12.2895

999 years town

lease expiring

on 31.12.2895

Pegangan Bebas

Freehold

Pajakan 99 tahun

berakhir pada

30.03.2081

99 years lease

expiring on

30.03.2081

Pegangan Bebas

Freehold

Pajakan 60 tahun

berakhir pada

31.12.2053

60 years lease

expiring on

31.12.2053

24

16

21

12

21

12

3,485/

14,434

4,025/

6,037

3,095/

6,935

1,539/

4,255

1,883/

8,700

1,312/

3,750

1,060,255.06

1,123,824.17

411,969.94

442,448.82

772,896.44

325,046.25

03.05.1985

12.07.1991

30.09.1991

20.09.1995

22.12.1995

07.07.1995

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

harta tanah MiliK syariKat taKaful Malaysia Berhad

ProPerties oWned By syariKat taKaful Malaysia Berhad

BIM

B H

old

Ing

s B

er

Ha

d | L

ap

or

an

Ta

hu

na

n 2

00

7 a

nn

ua

L r

ep

or

T

149

7

8

9

10

11

12

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Lot 54 & 55

Bandar Wilayah Jasa

Jalan Bunga Raya

91112 Lahad Datu

Sabah

No. 24

Jalan USJ 10/1B

47500 Subang Jaya

Selangor Darul Ehsan

No. 15 & 17

Jalan Kelibang

Langkawi Mall

07000 Kuah,

Langkawi

Kedah Darul Aman

No. 26 & 28

Jalan Perda Barat

Bukit Mertajam

Seberang Prai

14000 Penang

Lot 2, 3 & 4

Jalan Kulas

93400 Kuching

Sarawak

No. 14 & 16

Jalan Ibrahim

81900 Kota Tinggi

Johor Darul Ta’zim

Dua unit Rumah kedai/

Pejabat 3 tingkat

Two units of 3 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 3 tingkat

One unit of 3 storey

Shophouse/Office

Dua unit Rumah kedai/

Pejabat 2 tingkat

Two units of 2 storey

Shophouse/Office

Dua unit Rumah kedai/

Pejabat 3 tingkat

Two units of 3 storey

Shophouse/Office

Tiga unit Rumah kedai/

Pejabat 3 tingkat

Three units of 3 storey

Shophouse/Office

Dua unit Rumah kedai/

Pejabat 3 tingkat

Two units of 3 storey

Shophouse/Office

Pajakan bandar

99 ahun berakhir

pada 31.12.2090

99 years town

lease expiring on

31.12.2090

Pegangan Bebas

Freehold

Pegangan Bebas

Freehold

Pegangan bebas

Freehold

Pegangan Bebas

Freehold

Pajakan 99 tahun

Lot 14 berakhir

pada 08.05.2082

Lot 16 berakhir

pada 04.12.2078

99 years lease

Lot 14 expiring

on 08.05.2082

Lot 16 expiring

on 04.12.2078

12

13

14

9

12

21

2,400/

7,200

3,200/

9,600

1,440/

7,720

3,293/

8,840

4,817/

18,892

3,360/

8,544

944,589.22

3,614,616.67

634,260.10

968,045.14

2,590,537.50

975,639.92

27.12.1995

08.06.1996

17.07.1993

04.10.1996

02.01.1996

07.02.1996

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

BIM

B H

old

Ing

s B

er

Ha

d | L

ap

or

an

Ta

hu

na

n 2

00

7 a

nn

ua

L r

ep

or

T

150

13

14

15

16

17

18

19

No. 312

Jalan Bandar 13

Taman Melawati

53100 Kuala Lumpur

Lot 9046, Fasa 1A

Jalan Haji Manan

86000 Kluang

Johor Darul Ta’zim

No. 64 - D

Leboh Bishop

10200 Pulau Pinang

Darul Takaful

Jalan Sultan Ismail

50250 Kuala Lumpur

Lot 13 & 14

Lazenda Commercial

Centre

Jalan Okk Abdullah

87007 Labuan

Lot 6967, Blok 59

Muara Tuang

Jalan Datok Mohd

Musa 94300 Kota

Samarahan

Sarawak

Lot 28, 30 & 32

Jalan 2/3A,

Pasar Borong

68100 Selayang

Selangor Darul Ehsan

Satu unit Rumah kedai/

Pejabat 4 tingkat

One unit of 4 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 4 tingkat

One unit of 4 storey

Shophouse/Office

Satu unit bangunan

Pejabat 6 tingkat (9 level)

One unit of 6 storey

Office building (9 level)

Satu unit bangunan

Pejabat 20 tingkat

One unit of 20 storey

Office building

Dua unit bangunan

Pejabat 3 tingkat

Two units of 3 storey

Office building

Satu unit Rumah kedai/

Pejabat 3 tingkat

One unit of 3 storey

Shophouse/Office

Tiga unit Rumah kedai/

Pejabat 4 tingkat

Three units of 4 storey

Shophouse/Office

Pegangan Bebas

Freehold

Pajakan 99 tahun

99 years lease

Pegangan Bebas

Freehold

Pegangan Bebas

Freehold

Pajakan 999

tahun berakhir

pada 30.06.2902

999 years lease

expiring on

30.06.2902

Pajakan 60 tahun

berakhir pada

31.12.2053

60 years lease

expiring on

31.12.2053

Pajakan 99 tahun

berakhir pada

11.03.2086

99 years lease

expiring on

11.03.2086

13

11

30

19

13

12

20

1,920/

7,070

2,658/

9,930

3,972/

19,630

35,192/

232,182

2,504/

7,200

1,312/

3,750

4,447/

16,800

810,844.17

1,129,989.53

5,917,723.63

57,949,368.33

1,660,751.40

332,070.25

3,231,943.80

30.06.1994

27.03.1992

24.04.1996

14.05.1997

14.01.1997

09.04.1996

Lot No.

28 & 30

17.02.1997

Lot No. 32

12.05.1997

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

BIM

B H

old

Ing

s B

er

Ha

d | L

ap

or

an

Ta

hu

na

n 2

00

7 a

nn

ua

L r

ep

or

T

151

20

21

22

23

24

25

Dua tingkat bangunan

Pejabat 13 tingkat

Two floors of 13 storey

Office building

Satu tingkat bangunan

Pejabat 13 tingkat

One floor of 13 storey

Office building

Dua unit Rumah kedai/

Pejabat 4 tingkat

(kosong)

Two units of 4 storey

Shophouse/Office

(vacant)

Dua unit Rumah kedai/

Pejabat 2 tingkat

Two units of 2 storey

Shophouse/Office

Dua unit Rumah kedai/

Pejabat 4 tingkat

Two units of 4 Storey

Shophouse/Office

Dua unit Rumah kedai/

Pejabat 4 tingkat

Two units of 4 storey

Shophouse/Office

Pajakan 99 tahun

berakhir pada

26.07.2080

99 years lease

expiring on

26.07.2080

Pajakan 99 tahun

berakhir pada

26.07.2080

99 years lease

expiring on

26.07.2080

Pajakan 99 tahun

berakhir pada

24.02.2097

99 years lease

expiring on

24.02.2097

Pajakan 99 tahun

berakhir pada

05.09.2078

99 years lease

expiring on

05.09.2078

Pegangan Bebas

Freehold

Pegangan Bebas

Freehold

9

9

8

20

18

17

8,354*

6,594*

3,300/

10,560

3,956/

7,044

3,220/

12,092

3,200/

12,250

5,080,818.00

3,202,441.08

1,369,771.17

516,436.82

1,259,954.57

972,736.33

09.03.1998

06.01.1999

19.12.1996

18.09.1999

18.09.1999

18.09.1999

Lot 12680

Level 1 & Mezzanine

Jalan Bukit Timbalan

80000 Johor Bharu

Johor Darul Ta’zim

Lot 12680

Level 3,

Jalan Bukit Timbalan

80000 Johor Bharu

Johor Darul Ta’zim

Lot 14(S1) & 15(S1)

Indah Point, Section 12

Pulau Indah

Industrial Park

42000 Klang, West Port

Selangor Darul Ehsan

No. 1 & 2

Jalan Kelicap

Taman Pekan Baru

34200 Parit Buntar

Perak Darul Ridzuan

No. 46 & 47,

Darul Takaful

Jalan Rahmat

83000 Batu Pahat

Johor Darul Ta’zim

No. 180 & 181

Jalan Tuan Hitam

22000 Jerteh

Terengganu Darul Iman

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

BIM

B H

old

Ing

s B

er

Ha

d | L

ap

or

an

Ta

hu

na

n 2

00

7 a

nn

ua

L r

ep

or

T

152

26

27

28

29

30

31

Tiga unit Rumah kedai/

Pejabat 2 tingkat

Three units of 2 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 2 1/2 tingkat

One unit of 2 1/2 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 3 tingkat

One unit of 3 storey

Shophouse/Office

Satu unit Rumah kedai/

Pejabat 4 tingkat

One unit of 4 storey

Shophouse/Office

Tiga unit Rumah kedai/

Pejabat 2 1/2 tingkat

Three units of 2 1/2

storey Shophouse/Offie

Dua unit Rumah kedai/

Pejabat 2 tingkat

Two units of 2 storey

Shophouse/Office

Pegangan Bebas

Freehold

Pegangan Bebas

Freehold

Pajakan 99 tahun

berakhir pada

06.10.2079

99 years lease

expiring on

06.10.2079

Pajakan 99 tahun

berakhir pada

18.09.2068

99 years lease

expiring on

18.09.2068

Pajakan 99 tahun

berakhir pada

01.04.2095

99 years lease

expiring on

01.04.2095

Pajakan 99 tahun

berakhir pada

08.07.2086

99 years lease

expiring on

08.07.2086

8

11

8

7

7

20

6,339/

11,309

1,400/

3,570

2,001/

3,120

3,200/

8,019

4,195/

15,050

6,383/

8,032

1,666,521.72

266,396.63

578,425.58

1,918,528.34

1,002,311.17

1,138,059.72

07.05.1997

15.07.1999

01.07.1997

15.09.2000

02.10.2000

08.09.1999

Lot 82, 84 & 86

Jalan Rugbi 13/30

Seksyen 13

40100 Shah Alam

Selangor Darul Ehsan

No. 229, Jalan

Shahab 2

Shahab Perdana

Jalan Sultanah

Sambungan

05350 Alor Star

Kedah Darul Aman

Lot No. 3803

Jalan Dato’ Ulu Muar

72000 Kuala Pilah

Negeri Sembilan

Darul Khusus

No. 45

Jalan Teluk Sisek

25000 Kuantan

Pahang Darul Makmur

Lot. 21, 22, & 23

Pusat Komersil

Temerloh

28000 Temerloh

Pahang Darul Makmur

No. 2 & 4

Jalan 6C/7

43650 Bandar

Baru Bangi

Selangor Darul Ehsan

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

BIM

B H

old

Ing

s B

er

Ha

d | L

ap

or

an

Ta

hu

na

n 2

00

7 a

nn

ua

L r

ep

or

T

153

32

33

34

35

36

Satu unit Rumah kedai/

Pejabat 6 tingkat

One unit of 6 storey

Shophouse/ Office

Satu tingkat bangunan

Pejabat 81/2 tingkat

One floor of 81/2 storey

Office building

Satu unit Rumah kedai/

Pejabat 3 Tingkat

One unit of 3 storey

Shophouse/Office

Dua unit Rumah kedai/

Pejabat 4 tingkat

Two units of 4 storey

Shophouse/Office

Satu unit bangunan

Pejabat 12 tingkat

One unit of 12 storey

Office building

Pegangan Bebas

Freehold

Pegangan Bebas

Freehold

Pajakan 99 tahun

berakhir pada

25.09.2097

99 years lease

expiring on

26.09.2097

Pajakan 99 tahun

berakhir pada

03.10.2080

99 years lease

expiring on

03.10.2080

Pajakan kecil 45

tahun berakhir

pada 28.02.2047

45 years sub

lease expiring on

28.02.2047

11

10

6

22

5

1,500/

14,589

7,925*

3,899/

10,248

2,800/

11,020

3,600/

23,637

2,964,978.94

2,955,855.50

1,263,690.08

998,041.51

6,361,442.56

19.05.2000

08.07.1998

23.03.2002

08.09.1999

29.12.1997

Lot 14

Arab Malaysian

Business Centre

Jalan Pasar

70000 Seremban

Negeri Sembilan

Darul Khusus

Tingkat Bawah &

Mezzanine

Wisma Abrar

International

Lot 54, Seksyen 8

15350 Kota Bharu

Kelantan Darul Naim

No. 29, Jalan Delima

Pusat Perdagangan

Pontian

80000 Pontian

Johor Darul Ta’zim

Lot 11 & 12

Kompleks Seri Temin

Jalan Ibrahim

08000 Sungai Petani

Kedah Darul Aman

Lot 1129 & 1130

Bangunan Darul Takaful

Jalan Sultan Ismail

20100 Kuala

Terengganu

Terengganu Darul Iman

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

BIM

B H

old

Ing

s B

er

Ha

d | L

ap

or

an

Ta

hu

na

n 2

00

7 a

nn

ua

L r

ep

or

T

154

37

38

39

40

41

Dua unit bangunan

Pejabat 2 tingkat

Two units of 2 storey

Office building

Satu unit Rumah kedai/

Pejabat 2 tingkat

One unit of 2 storey

Shophouse/Office

Satu tingkat bangunan

Pejabat 22 tingkat

One floor of 22 storey

Office building

Dua unit bangunan

Pejabat 2 tingkat

Two units of 2 storey

Office building

Dua unit bangunan

Pejabat 4 1/2 tingkat

Two units of 4 1/2 storey

Office building

Pajakan 99 tahun

berakhir pada

05.10.2088

99 year lease

expiring on

05.10.2088

Pajakan 99 tahun

berakhir pada

08.07.2086

99 year lease

expiring on

08.07.2086

Pegangan bebas

Freehold

Pajakan 99 tahun

berakhir pada

13.11.2080

99 years lease

expiring on

13.11.2080

Pajakan 99 tahun

berakhir pada

09.12.2069

99 years lease

expiring on

09.12.2069

15

20

6

26

25

4,498/

8,685

1,905/

3,508

6,409*

1,600/

4,000

3,200/

15,200

640,057.51

462,055.53

3,929,486.30

488,330.03

1,222,469.11

17.09.1999

09.08.2002

26.06.2001

17.09.1999

03.07.2002

No. 616 & 617

Jalan Besar

Bandar Tampin 73000

Negeri Sembilan

Darul Khusus

No. 6, Jalan 6C/7

43650 Bandar Baru

Bangi

Selangor Darul Ehsan

Unit 3B/G

Tingkat Bawah

Blok 3B, Plaza Sentral

Jalan Stesen Sentral 5

50470 Kuala Lumpur

No. 26 & 27

Jalan Tanjung

Pasar Baru

18500 Machang

Kelantan Darul Naim

No. 330 & 331

Jalan Sultan

Yahya Petra

15720 Kota Bharu

Kelantan Darul Naim

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

BIM

B H

old

Ing

s B

er

Ha

d | L

ap

or

an

Ta

hu

na

n 2

00

7 a

nn

ua

L r

ep

or

T

155

42

43

44

45

46

47

Dua unit bangunan

Pejabat

Blok Utama - 26 tingkat

Blok Annex - 29 tingkat

Two units of

Office building

Main Block - 26 storey

Annex Block - 29 storey

Satu unit Rumah kedai/

Pejabat 2 tingkat

One unit of 2 storey

Shophouse/Office

Dua unit bangunan

Pejabat 3 tingkat

Two units of 3 storey

Office building

Dua unit bangunan

Pejabat 3 tingkat

Two units of 3 storey

Office building

Satu unit bangunan

Pejabat 4 tingkat

One unit of 4 storey

Office building

Dua unit bangunan

Pejabat 3 tingkat

Two unit of 3 storey

Office building

Pegangan Bebas

Freehold

Pajakan 99 tahun

berakhir pada

19.05.2091

99 years lease

expiring on

19.05.2091

Pegangan Bebas

Freehold

Pajakan 33 tahun

berakhir pada

08.09.2037

33 years lease

expiring on

08.09.2037

Pegangan Bebas

Freehold

Pajakan selama

99 tahun berakhir

pada 16.02.2099

99 years lease

expiring on

16.02.2099

Blok Utama/

Main Block - 34

Blok Annex/

Annex Block - 27

11

4

5

5

2

90,427/

393,508

2,800/

5,300

3,134/

18,304

3,852/

9,120

8,716/

18,440

3,080/

8,024

116,770,677.11

807,526.48

1,319,708.52

1,397,153.25

3,553,440.00

1,491,004.84

08.10.2004

10.08.2004

18.08.2003

03.07.2002

27.07.2002

30.11.2004

Dataran Kewangan

Darul Takaful

Jalan Sultan Sulaiman

50000 Kuala Lumpur

No. 2408

Taman Samudera

32040 Sri Manjung

Perak Darul Ridzuan

No. 76A & 76

Pusat Perniagaan

Jalan Tupai

34000 Taiping

Perak Darul Ridzuan

No. 10 & 11

Jalan Sultan Yahya

Petra

15200 Kota Bharu

Kelantan Darul Naim

No. 4197

Jalan Teluk Wanjah

05200 Alor Star

Kedah Darul Aman

No. 10 & 8, Jalan Padi

Emas 5/2, Bandar

Baru UDA 81200

Johor Bharu, Johor

Darul Ta’zim

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

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48

49

50

51

52

Satu unit bangunan

Pejabat 4 tingkat

One unit of 4 storey

Office building

Satu unit bangunan

Pejabat 3 tingkat

One unit of 3 storey

Office building

Satu unit bangunan

Pejabat 4 tingkat

One unit of 4 storey

Office building

Satu unit bangunan

Pejabat 3 tingkat

One unit of 3 storey

Office building

Satu unit bangunan

Pejabat 4 ½ tingkat

One unit of 4 ½ storey

Office building

Pajakan 99 tahun

berakhir pada

03.10.2080

99 years lease

expiring on

03.10.2080

Pegangan Bebas

Freehold

Pajakan selama

60 tahun berakhir

pada 30.09.2052

60 years lease

expiring on

30.09.2052

Pajakan selama

99 tahun berakhir

pada 16.02.2099

99 years lease

expiring on

16.02.2099

Pajakan selama

99 tahun

99 years lease

22

8

3

2

14

1,400/

5,510

1,600/

4,172

1,400/

5,500

1,540/

4,012

1,470/

6,117

757,565.08

384,729.58

909,877.99

743,628.07

868,892.00

11.09.2005

29.11.2005

20.01.2006

14.02.2006

21.03.2006

No. 4, Kompleks Seri

Temin Jalan Ibrahim

08000 Sungai Petani,

Kedah Darul Aman

No. 16,

Jalan Cenderawasih

Jalan Kilang Lama

09000 Kulim

Kedah Darul Aman

Lot 1340, Miri

Waterfront

Commercial Centre,

98000 Miri, Sarawak

No. 6, Jalan Padi

Emas 5/2, Bandar

Baru UDA, 81200

Johor Bharu

Johor Darul Ta’zim

No. 148, Kompleks

Munshi Abdullah

75200 Melaka

no. lokasi/

location

Penerangan

Kegunaan/

description of

existing use

hakmilik/

tenure

usia

Bangunan/

age of

Building

(tahun/

years)

nilai Buku

Bersih pada/

net Book

value as at

30.06.2007

(rM)

* Kawasan Binaan / Build-up Area

Harta Tanah Milik Kumpulan BHBProperties Owned by BHB Group

Keluasan

tanah,

Kawasan Binaan/

land, Built-up

area

(kaki persegi/

square feet)

tarikh

Perjanjian

Jual Beli/

date of

sale and

Purchase

agreement

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Statistik Pemegangan SahamShareholdings Statistics

analisis PeMeGanGan sahaM / analysis of shareholdinGs

Modal saham dibenarkan / authorised share capital : RM2,000,000,000

Modal saham Berbayar / Paid-up capital : RM891,389,896

Jenis saham / class of share : Saham Biasa Bernilai RM 1.00 Setiap Satu Ordinary Share of RM 1.00 eachhak Mengundi / voting rights : Satu (1) Undi Setiap Saham Biasa One (1) Vote Per Ordinary Share

analisis BerdasarKan saiZ PeGanGan sahaM / analysis By siZe of shareholdinGsPada 13 november 2007 / as at 13 november 2007

saiz Pegangan saham Bilangan % Pemegang Bilangan % Pemegangan size of shareholdings Pemegang saham / saham saham / saham / % of dipegang / % of no of shareholders no of shareholdings shareholders shares held Kurang Daripada 100 / Less Than 100 70 1.05 1,361 0.00100 – 1,000 1,142 17.18 1,004,097 0.111,001 – 10,000 4,299 64.67 19,233,541 2.1610,001 - 100,000 1,018 15.31 28,461,424 3.19100,001 Ke Atas / 100,001 And Above 115 1.73 201,719,468 22.635% Ke Atas / 5% And Above 4 0.06 640,970,005 71.91

Jumlah / total 6,648 100.00 891,389,896 100.00

senarai PeGanGan sahaM Para PenGarah / list of directors’ shareholdinGsPada 13 november 2007 / as at 13 november 2007

no nama-nama Pemegangan saham %no names shareholdings % 1. Tan Sri Samsudin bin Osman - -2. Dato’ Noorazman bin A. Aziz - -3. Dato’ Dr Abdul Halim bin Ismail 1,400 0.004. Dato’ Mohd Bakke bin Salleh - -5. Encik Zahari @ Mohd Zin bin Idris - -6. Datuk Burhanuddin bin Ahmad Tajudin - -7. Encik Salih Amaran bin Jamiaan - -8. Puan Zaiton binti Mohd Hassan - -9. Datuk Ismee bin Ismail - -10. Dato’ Hairuddin bin Mohamed - -

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senarai PeGanGan sahaM utaMa (5% dan Ke atas) / list of suBstantial shareholdinGs (5% aBove)Pada 13 november 2007 / as at 13 november 2007

no nama-nama saham %no names shareholdings % 1. Lembaga Tabung Haji 373,667,360 41.922. Permodalan Nasional Berhad 130,931,445 14.693. Amanah Raya Nominees (Tempatan) Sdn Bhd 85,000,000 9.54 A/C Skim Amanah Saham Bumiputera 4. Employees Provident Fund Board 51,371,200 5.76

Pecahan PeMeGanGan sahaM BuMiPutera / BuMiPutera shareholdinGs BreaKdoWnPada 13 november 2007 / as at 13 november 2007

no Jenis hak Milik Bilangan Pemegang saham % Bilangan saham %no types of ownership no of shareholders % no of shares %

1 Agensi Kerajaan / Government Agency 38 0.57 753,482,957 84.53 2 Bumiputera / Bumiputra : a) Individu / Individuals 1,381 20.77 8,890,467 1.00

b) Syarikat / Companies 43 0.65 46,857,035 5.26 c) Syarikat Nomini / Nominees Company 499 7.51 27,754,804 3.11 3 Bukan Bumiputera / Non-Bumiputra : a) Individu / Individuals 4,205 63.25 36,817,558 4.13 b) Syarikat / Companies 49 0.74 2,272,250 0.25 c) Syarikat Nomini / Nominees Company 293 4.41 6,142,900 0.69

Jumlah di Malaysia / Malaysian total 6,508 97.90 882,217,971 98.97 4 Asing / Foreign a) Individu / Individuals 90 1.35 4,510,400 0.51 b) Syarikat / Companies 2 0.03 95,000 0.01 c) Syarikat Nomini / Nominees Company 48 0.72 4,566,525 0.51

Jumlah asing / foreign total 140 2.10 9,171,925 1.03 Jumlah Keseluruhan / total 6,648 100.00 891,389,896 100.0

Statistik Pemegangan SahamShareholdings Statistics

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senarai tiGa Puluh (30) PeGanGan sahaM utaMa / list of toP thirty (30) shareholders Pada 13 november 2007 / as at 13 november 2007

no nama-nama Pemegangan saham % no names shareholdings % 1. Lembaga Tabung Haji 373,667,360 41.922. Permodalan Nasional Berhad 130,931,445 14.693. Amanah Raya Nominees (Tempatan) Sdn Bhd 85,000,000 9.54 A/C Skim Amanah Saham Bumiputera 4. Employees Provident Fund Board 51,371,200 5.765. Lembaga Tabung Angkatan Tentera 41,579,998 4.666. Felda Holdings Bhd 24,947,998 2.807. Mayban Nominees (Tempatan) Sdn Bhd 15,675,999 1.76 A/C for Majlis Ugama Islam Sabah 8. Majlis Agama Islam dan Adat Melayu Terengganu 10,405,000 1.179. Majlis Ugama Islam Sabah 9,178,000 1.0310. Amin Baitulmal Johor 8,316,000 0.9311. Majlis Agama Islam Selangor 5,873,488 0.6612. Majlis Agama Islam Negeri Pulau Pinang 5,544,000 0.6213. Majlis Amanah Rakyat 5,544,000 0.6214. Affin Nominees (Tempatan) Sdn Bhd 5,544,000 0.62 A/C Majlis Ugama Islam dan Adat Resam Melayu Pahang15. Majlis Agama Islam Negeri Sembilan 5,100,479 0.5716. Majlis Agama Islam dan Adat Istidat Melayu Kelantan 4,532,799 0.5117. Tabung Warisan Negeri Selangor 4,500,000 0.5018. Harakah Islamiah (HIKMAH) 3,056,000 0.3419. Lembaga Pemegang-pemegang Amanah Yayasan Negeri Sembilan 3,000,019 0.3420. Warisan Harta Sabah Sdn Bhd 2,865,000 0.3221. Saleem Abdul Latif Mustafa 2,500,000 0.2822. Yayasan Kelantan Darulnaim 2,414,540 0.2723. Pertubuhan Kebajikan Islam Malaysia (PERKIM) 2,242,294 0.2524. CIMB Trustee Berhad 2,239,750 0.25 A/C Amanah Saham Darul Iman 25. Perbadanan Kemajuan Ekonomi Islam Negeri Perak 2,141,863 0.2426. Pertubuhan Kebajikan Islam Malaysia (PERKIM) 1,979,292 0.2227. Majlis Agama Islam dan Adat Melayu Perak Darul Ridzuan 1,848,000 0.2128. Citigroup Nominees (Asing) Sdn Bhd 1,544,700 0.17 CBNY for DFA emerging Markets Fund 29. Majlis Agama Islam Wilayah Persekutuan 1,506,210 0.1730. Yayasan Islam Kelantan 1,385,999 0.16

Statistik Pemegangan SahamShareholdings Statistics

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Rangkaian Kumpulan SerantauRegional Group Network

BiMB holdings Berhad (423858-x)

Aras 18, Menara Yayasan Tun Razak, 200, Jalan Bukit Bintang, 55100 Kuala LumpurTel | Tel : 03 2781 2999Faks | Fax : 03 2781 2998

anaK-anaK syariKat | suBsidiaries

Bank islam Malaysia Berhad (98127-X)

Tingkat 14, Darul TakafulJalan Sultan Ismail50250 Kuala LumpurTel | Tel : 03 2616 8000Faks | Fax : 03 2694 7392, 2694 9077

al-Wakalah nominees (tempatan) sdn Bhd (122372-P)

Tingkat 14, Darul TakafulJalan Sultan Ismail50250 Kuala LumpurTel | Tel : 03 2616 8000Faks | Fax : 03 2693 7062

BiMB unit trust Management Berhad (276246-X)

Tingkat 5, Darul TakafulJalan Sultan Ismail50250 Kuala LumpurTel | Tel : 03 2694 6617, 2694 6619, 2616 8000Faks | Fax : 03 2694 3516

BiMB foreign currency clearing agency sdn Bhd (507913-V)

Tingkat 9, Menara Tun RazakJalan Raja Laut, Peti Surat 1108050734 Kuala LumpurTel | Tel : 03 2693 4287, 2693 4297, 2693 4327Faks | Fax : 03 2693 4115

syarikat takaful Malaysia Berhad (131646-K)

26th Floor, Annex BlockDataran Kewangan Darul TakafulNo 4, Jalan Sultan Sulaiman50000 Kuala LumpurTel | Tel : 03 2711 1984Faks | Fax : 03 2274 1464

asean retakaful international (l) limited (IS 9700061)

Aras 14, Blok 4Financial Park OfficeJalan Merdeka87000 Labuan I.O.F.CTel | Tel : 087 451 301, 451 302Faks | Fax : 087 451 300

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P.t. syarikat takaful indonesiaGedung Arthaloka, Lantai 14Jalan Jenderal Sudirman Kav 2Jakarta, 10220 IndonesiaTel | Tel : 021 251 2345Faks | Fax : 021 251 1521

BiMB securities (holdings) sdn Bhd (290167-P)

Aras 18, Menara Yayasan Tun Razak200, Jalan Bukit Bintang55100 Kuala LumpurTel | Tel : 03 2781 2999Faks | Fax : 03 2781 2998

BiMB securities sdn Bhd (290163-X)

Tingkat 1 & 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | Tel : 03 4043 3533Faks | Fax : 03 4041 4159

BiMsec nominees (asing) sdn Bhd (319820-P)

Tingkat 1 & 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | Tel : 03 4043 3533Faks | Fax : 03 4041 4159

BiMsec nominees (tempatan) sdn Bhd (319821-M)

Tingkat 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | Tel : 03 4043 3533Faks | Fax : 03 4041 4159

BiMsec asset Management sdn Bhd (419248-V)

Tingkat 1 & 2, Blok PodiumBangunan AMDBNo 1, Jalan Lumut50400 Kuala LumpurTel | Tel : 03 4043 3533Faks | Fax : 03 4041 8332

syarikat al-ijarah sdn Bhd (112330-P)

Aras 18, Menara Yayasan Tun Razak200, Jalan Bukit Bintang55100 Kuala LumpurTel | Tel : 03 2781 2999Faks | Fax : 03 2781 2998

Pembiayaan Perumahan nasional sdn Bhd (457596-A)

Tingkat 14, Darul TakafulJalan Sultan Ismail50250 Kuala LumpurTel | Tel : 03 2616 8000Faks | Fax : 03 2694 9077

BiMB venture capital sdn Bhd (53866-H)

Lantai 17, Bangunan Ibu PejabatLembaga Tabung HajiNo 201, Jalan Tun Razak50732 Kuala LumpurTel | Tel : 03 2161 8990Faks | Fax : 03 2164 6155

BiMB Musyarakah satu sdn Bhd (538579-A)

Lantai 17, Bangunan Ibu PejabatLembaga Tabung HajiNo 201, Jalan Tun Razak50732 Kuala LumpurTel | Tel : 03 2161 8990Faks | Fax : 03 2164 6155

islamic Banking & finance institute Malaysiasdn Bhd (340040-M)

Tingkat 3, Dataran Kewangan Darul TakafulJalan Sultan Sulaiman50000 Kuala LumpurTel | Tel : 03 2031 1010Faks | Fax : 03 2078 5250

Rangkaian Kumpulan SerantauRegional Group Network

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DENGAN INI DIMAKLUMKAN BAHAWA Mesyuarat Agung Tahunan BIMB Holdings Berhad yang Kesepuluh akan diadakan di Tun Rahah 1 & 2, Aras 1, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur pada hari Khamis, 13 Disember 2007, jam 9.30 pagi untuk tujuan-tujuan yang berikut:-

Notis Mesyuarat Agung Tahunan yang Kesepuluh

seBaGai urusan Biasa

1. Untuk menerima Akaun yang telah diaudit bagi tahun kewangan berakhir 30 Jun 2007 berserta Laporan Pengarah dan Juruaudit mengenainya.

2. Untuk mengisytiharkan dividen pertama dan akhir sebanyak 2% ditolak cukai sebanyak 26% bagi tahun kewangan berakhir 30 Jun 2007.

3. Untuk memilih semula Pengarah-pengarah berikut yang bersara di bawah Artikel 61 Tataurusan Persatuan Syarikat:

i. Encik Salih Amaran bin Jamiaan ii. Encik Zahari @ Mohd Zin bin Idris

4. Untuk memilih semula Tan Sri Samsudin bin Osman yang bersara mengikut Artikel 66 Tataurusan Persatuan Syarikat.

5. Untuk meluluskan fi para Pengarah bagi tahun kewangan berakhir 30 Jun 2007.

6. Untuk melantik semula Tetuan KPMG Desa Megat & Co sebagai Juruaudit Luar Syarikat sehingga Mesyuarat Agung Tahunan yang akan datang pada tahun 2008 dan juga untuk memberi kuasa kepada Pengarah untuk menetapkan imbuhan kepada mereka.

seBaGai urusan Khas

7. resolusi Khas Cadangan Pindaan kepada Tataurusan Persatuan Syarikat.

“Bahawa pembatalan, pengubahan, modifikasi atau penambahan kepada Tataurusan Persatuan Syarikat seperti yang terdapat dalam Pekeliling kepada Pemegang saham bertarikh 22 November 2007 dengan ini diluluskan.”

resolusi 1

resolusi 2

resolusi 3resolusi 4

resolusi 5

resolusi 6

resolusi 7

resolusi 8

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as ordinary Business

1. To receive the Audited Accounts for the financial year ended 30 June 2007 together with the Reports of the Directors and Auditors thereon.

2. To declare a first and final dividend of 2% less 26% tax in respect of the financial year ended 30 June 2007.

3. To re-elect the following Directors retiring pursuant to Article 61 of the Company’s Articles of Association:

i. Encik Salih Amaran bin Jamiaanii. Encik Zahari @ Mohd Zin bin Idris

4. To re-elect Tan Sri Samsudin bin Osman who is retiring pursuant to Article 66 of the Company’s Articles

of Association.

5. To approve the Directors’ fees for the financial year ended 30 June 2007.

6. To re-appoint Messrs. KPMG Desa Megat & Co. as External Auditors of the Company until the conclusion of the next Annual General Meeting in year 2008 and to authorise the Directors to fix their remuneration.

as sPecial Business

7. special resolution Proposed Amendments to the Articles of Association of the Company.

“That deletion, alteration, modification or addition to the Articles of Association of the Company as set out in the Circular to Shareholders dated 22 November 2007 be and is hereby approved”.

NOTICE IS HEREBY GIVEN that the tenth ANNUAL GENERAL MEETING of BIMB Holdings Berhad will be held at Tun Rahah 1 & 2, Level 1, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur on Thursday, 13 December 2007 at 9.30 a.m for the following purposes:-

resolution 1

resolution 2

resolution 3resolution 4

resolution 5

resolution 6

resolution 7

resolution 8

Notice of the Tenth Annual General Meeting

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8. resolusi Biasa Cadangan Mandat Pemegang Saham untuk Urusniaga Berulang Pihak Berkaitan yang Berbentuk

Hasil atau Perdagangan.

“Bahawa tertakluk pada Akta Syarikat, 1965, Memorandum dan Tataurusan Persatuan Syarikat dan juga Keperluan Penyenaraian oleh Bursa Malaysia Securities Berhad, kelulusan adalah dan dengan ini diberi kepada BIMB Holdings Berhad dan anak syarikatnya untuk memeterai urusniaga berulang pihak berkaitan yang berbentuk hasil atau perdagangan dengan pihak berkaitan berkenaan seperti yang dinyatakan dalam Seksyen 2.1 Pekeliling kepada Pemegang Saham bertarikh 22 November 2007 yang perlu bagi operasi harian Kumpulan tertakluk kepada perkara yang berikut:

i. urusniaga yang dijalankan adalah dalam operasi perniagaan dan berdasarkan terma komersial biasa yang tidak memihak lebih kepada pihak berkaitan daripada masyarakat umum;

ii. tidak memudaratkan pemegang saham minoriti Syarikat, dan

iii. akan diumumkan dalam laporan tahunan bersamaan dengan butir-butir terperinci nilai agregat urusniaga menurut mandat pemegang saham sepanjang tahun kewangan (Mandat).

Dan bahawa Mandat yang diberikan melalui resolusi ini akan berkuatkuasa serta merta selepas resolusi ini diluluskan;

Dan bahawa Mandat ini akan terus berkuatkuasa sehingga;

a. tamatnya Mesyuarat Agung Tahunan akan datang, pada waktu itu ia akan luput melainkan apabila diperbaharui pada mesyuarat tersebut melalui resolusi yang diluluskan;

b. tamat tempoh bila mana Mesyuarat Agung Tahunan yang akan datang, selepas tarikh tersebut ia perlu diadakan mengikut Seksyen 143(1) Akta Syarikat 1965 (tetapi tidak sehingga tarikh lanjutan yang dibenarkan mengikut Seksyen 143(2) Akta Syarikat 1965); atau

c. ia ditarik balik atau diubah melalui satu resolusi yang diluluskan oleh pemegang saham dalam mesyuarat agung;

mana-mana yang terdahulu.”

9. Untuk menjalankan urusan biasa lain yang mana notis sewajarnya telah diberikan selaras dengan Akta Syarikat, 1965.

resolusi 9

Notis Mesyuarat Agung Tahunan yang Kesepuluh

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8. ordinary resolution Proposed Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading

Nature.

“That subject to the Companies Act, 1965, Memorandum and Articles of Association of the Company and the Listing Requirements of Bursa Malaysia Securities Berhad approval be and is hereby given to BIMB Holdings Berhad and its subsidiaries to enter into the category of recurrent related party transactions of a revenue or trading nature with those related parties as specified in Section 2.1 of the Circular to the Shareholders dated 22 November 2007 which are necessary for the Group’s day to day operations subject to the following:-

i. the transactions carried out are in the ordinary course of business and on normal commercial terms that do not favour the related parties more than the general public;

ii. are not detrimental to the minority shareholders of the Company; and

iii. will be disclosed in the annual report with the breakdown of the aggregate value of transaction conducted pursuant to the shareholders’ mandate during the financial year. (Mandate)

And that the Mandate conferred by this resolution shall commence immediately upon the passing of this Resolution;

And that such Mandate shall continue to be in force until:-

a. the conclusion of the next annual general meeting of the Company, at which time it will lapse, unless by a resolution passed at the meeting, the authority is renewed;

b. the expiration of the period within which the next Annual General Meeting after the date is required to be held pursuant to section 143(1) of the Companies Act, 1965 (but shall not extend to such extension as may be allowed pursuant to section 143(2) of Companies Act, 1965; or

c. it is revoked or varied by a resolution passed by the shareholders in a general meeting.

whichever is the earlier.”

9. To transact any other ordinary business of which due notice shall have been given in accordance with the Companies Act, 1965.

resolution 9

Notice of the Tenth Annual General Meeting

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notis PenutuPan BuKu

DENGAN INI DIMAKLUMKAN BAHAWA buku daftar ahli Syarikat akan ditutup mulai 19 Disember 2007 hingga 20 Disember 2007 (termasuk kedua-dua tarikh) bagi tujuan menentukan kelayakan pembayaran dividen kepada pemegang saham. Dividen berkenaan, sekiranya diluluskan oleh pemegang saham semasa Mesyuarat Agung Tahunan Kesepuluh, akan dibayar pada 4 Januari 2008 kepada pemegang saham yang mana nama mereka tersenarai dalam pendaftaran ahli atau rekod pendeposit pada 18 Disember 2007.

DENGAN INI DIMAKLUMKAN SELANJUTNYA BAHAWA seorang pendeposit adalah layak untuk menerima dividen bagi:

a. Saham yang dipindahkan kepada Akaun Sekuriti Pendeposit sebelum 4.00 petang pada 18 Disember 2007 berkenaan dengan pindah milik biasa; dan

b. Saham yang dibeli di Bursa Malaysia Securities Berhad berasaskan kelayakan menurut peraturan Bursa Malaysia Securities Berhad.

Dengan Perintah Lembaga Pengarah

saiful niZaM yasin (LS 08955)tenGKu MaiZura tenGKu ishaK (LS 09202 )Setiausaha-setiausaha Syarikat

Kuala Lumpur22 November 2007

Nota:

1. Ahli Syarikat yang berhak menghadiri dan mengundi di dalam mesyuarat berhak melantik seorang atau lebih proksi untuk hadir dan mengundi bagi pihaknya.

2. Suratcara pelantikan seorang proksi hendaklah:- i dalam hal seorang individu, ditandatangani oleh pelantik atau oleh wakilnya; danii dalam hal sebuah syarikat, sama ada di bawah meterai rasmi atau ditandatangani oleh wakilnya atau oleh seorang

pegawai bagi pihak syarikat tersebut.3. Di mana ahli Syarikat melantik lebih daripada satu (1) proksi, pelantikan tersebut hendaklah menyatakan bahagian pegangan

sahamnya yang diwakili oleh setiap proksi.4. Semua borang proksi hendaklah didepositkan di Pejabat Berdaftar Syarikat, Aras 18, Menara Yayasan Tun Razak, 200

Jalan Bukit Bintang, 55100 Kuala Lumpur tidak kurang dari 48 jam sebelum waktu mesyuarat ditetapkan atau sebarang penangguhan berikutnya.

5. Nota penerangan mengenai Urusan Khas:-i Resolusi Khas 8, sila rujuk kepada Pekeliling kepada Pemegang Saham bertarikh 22 November 2007.ii Resolusi Biasa 9, sila rujuk kepada Pekeliling kepada Pemegang Saham bertarikh 22 November 2007.

Notis Mesyuarat Agung Tahunan yang Kesepuluh

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notice of BooK closure

NOTICE IS HEREBY GIVEN THAT the register of members will be closed from 19 December 2007 to 20 December 2007 (both dates inclusive) to determine shareholders entitlement to the dividend payment.

The dividend, if approved, by the shareholders at the Tenth Annual General Meeting, will be paid on 4 January 2008 to shareholders whose names appear in the register of members or record of depositors on 18 December 2007.

FURTHER NOTICE IS HEREBY GIVEN that a depositor shall qualify for dividend entitlement only in respect of:

a. Shares transferred to the depositor’s securities account before 4.00 p.m. on 18 December 2007 in respect of ordinary transfer.

b. Shares bought on Bursa Malaysia Securities Berhad on a cum entitlement basis according to the rules of Bursa Malaysia Securities Berhad.

By Order of the Board

saiful niZaM yasin (LS 08955)tenGKu MaiZura tenGKu ishaK (LS 09202 )Company Secretaries

Kuala Lumpur22 November 2007

Notes :

1. A member of the Company entitled to attend and vote at the meeting may appoint a proxy or proxies to attend and vote instead of him.

2. The instrument appointing a proxy shall:-i in case of individual, be signed by the appointer or by his attorney; andii in case of a corporation be either under its common seal or signed by its attorney or by an officer on behalf of the

corporation. 3. Where a member appoints more than one (1) proxy the appointment shall specify the proportions of his holdings to be

represented by each proxy.4. All proxy forms should be deposited at the Company’s Registered Office, Level 18, Menara Yayasan Tun Razak, 200 Jalan

Bukit Bintang, 55100 Kuala Lumpur not less than forty-eight (48) hours before the time fixed for holding of the meeting or any adjournment thereof.

5. Explanatory Notes to the Special Business:- i The Special Resolution 8, please refer to the Circular to Shareholders dated 22 November 2007.ii The Ordinary Resolution 9, please refer to the Circular to Shareholders dated 22 November 2007.

Notice of the Tenth Annual General Meeting

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Penyata Mengiringi Notis Mesyuarat Agung Tahunan

Menurut Perenggan 8.28 (2) Keperluan Penyenaraian Bursa Malaysia Securities Berhad.

1. Para pengarah yang dicalonkan untuk pemilihan semula pada Mesyuarat Agung Tahunan Kesepuluh Syarikat.

• Bahawa Encik Salih Amaran bin Jamiaan dan Encik Zahari @ Mohd Zin bin Idris, Pengarah yang bersara menurut Artikel 61 Tataurusan Persatuan Syarikat dan dicalonkan untuk pemilihan semula.

• Bahawa Tan Sri Samsudin bin Osman, Pengarah yang dilantik pada tahun kewangan akan bersara menurut Artikel 66 Tataurusan Persatuan Syarikat dan oleh sebab layak, telah menawarkan diri untuk pemilihan semula.

Butiran Pengarah-pengarah tersebut di atas dinyatakan pada profil Pengarah di muka surat 29 hingga 38 Laporan Tahunan ini.

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Statement Accompanying Notice of Annual General Meeting

Statement Pursuant to Paragraph 8.28(2) of the Listing Requirements of Bursa Malaysia Securities Berhad.

1. Directors who are standing for re-election at the Tenth Annual General Meeting of the Company.

• That Encik Salih Amaran bin Jamiaan and Encik Zahari @ Mohd Zin bin Idris who retires by rotation pursuant to Article 61 of the Company’s Articles of Association and seeking re-election.

• That Tan Sri Samsudin bin Osman, who was appointed during the financial year, retiring pursuant to Article 66 of the Company’s Articles of Association and being eligible, has offered himself for re-election.

The details of the above Directors are set out on the Directors’ Profile which appear on page 29 to 38 of this Annual Report.

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Muka surat ini sengaja dikosongkan | This page has been intentionally left blank

Jika pelantikan proksi di bawah meterai

Meterai Rasmi Adalah diturunkan di sini menurut Tataurusan

Pertubuhan Syarikat di hadapan:

Pengarah Pengarah/ Setiausaha

dalam kapasitinya sebagai ahli/ wakil kepada ahli/ penama yang diberi kuasa oleh

(pemilik benefisial)

(Diperbadankan di Malaysia)

BoranG ProKsi

Saya/ Kami

No KP/ No Paspot/ No Syarikat

beralamat

no telefon selaku Ahli/ Ahli-ahli BIMB Holdings

Berhad (“Syarikat”), dengan ini melantik

bagi jumlah saham

dan/ atau bagi jumlah saham

sebagai proksi saya/ proksi kami untuk mengundi bagi pihak saya/kami dalam Mesyuarat Agung Tahunan Syarikat yang Kesepuluh yang akan diadakan pada hari Khamis, 13 Disember 2007, jam 9.30 pagi atau pada mana-mana tarikh penangguhannya. Saya/kami menandakan dengan tanda “x” dalam ruang yang bersesuaian di bawah tentang bagaimana saya/kami ingin undian saya/kami dibuat:

Resolusi Biasa 1

Resolusi Biasa 2

Resolusi Biasa 3

Resolusi Biasa 4

Resolusi Biasa 5

Resolusi Biasa 6

Resolusi Biasa 7

Resolusi Khas 8

Resolusi Biasa 9

Untuk menerima Akaun teraudit bagi tahun kewangan berakhir 30 Jun 2007 berserta dengan Laporan Pengarah dan Juruaudit mengenainya.

Untuk mengisytiharkan dividen pertama dan akhir sebanyak 2% tolak cukai sebanyak 26% bagi tahun kewangan berakhir 30 Jun 2007.

Untuk memilih semula sebagai Pengarah, Encik Salih Amaran bin Jamiaan, yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan oleh sebab layak telah menawarkan diri untuk dipilih semula.

Untuk memilih semula sebagai Pengarah, Encik Zahari @ Mohd Zin bin Idris, yang bersara mengikut giliran menurut Artikel 61 Tataurusan Persatuan Syarikat dan oleh sebab layak telah menawarkan diri untuk dipilih semula.

Untuk memilih semula Tan Sri Samsudin bin Osman yang bersara menurut Artikel 66 Tataurusan Persatuan Syarikat.

Untuk meluluskan fi para Pengarah bagi tahun kewangan berakhir 30 Jun 2007.

Untuk melantik semula Tetuan KPMG Desa Megat & Co sebagai Juruaudit Luar Syarikat sehingga Mesyuarat Agung Tahunan yang akan datang pada tahun 2008 dan juga untuk memberikan kuasa kepada para Pengarah untuk menetapkan imbuhan mereka.

Cadangan Pindaan kepada Tataurusan Persatuan Syarikat.

Cadangan Mandat Pemegang Saham untuk Transaksi Berulang Pihak Berkaitan yang Berbentuk Hasil atau Perdagangan.

Menyokong Menentang

nota-nota :1. Ahli Syarikat yang berhak menghadiri dan mengundi di dalam mesyurat, berhak melantik seorang atau lebih proksi untuk hadir dan mengundi bagi pihaknya. 2. Suratcara pelantikan proksi hendaklah:-

i dalam hal seorang individu, ditandatangani oleh pelantik atau oleh wakilnya; danii dalam hal sebuah syarikat, sama ada di bawah meterai rasmi atau ditandatangani oleh wakil atau oleh seorang pegawai bagi pihak syarikat tersebut.

3. Di mana ahli syarikat melantik lebih daripada satu (1) proksi, pelantikan tersebut dikira tidak sah melainkan jika ahli syarikat tersebut menyatakan bahagian pegangan sahamnya yang diwakili oleh setiap proksi.

4. Surat cara pelantikan proksi hendaklah didepositkan di Pejabat Berdaftar Syarikat, Aras 18, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100 Kuala Lumpur tidak kurang dari 48 jam sebelum waktu yang telah ditetapkan untuk permulaan pengundian;

5. Seorang proksi boleh mengundi dengan secara mengangkat tangan atau pungutan suara. Sekiranya borang proksi dikembalikan tanpa dinyatakan sebarang kaedah bagaimana proksi tersebut perlu mengundi untuk sebarang hal khusus, proksi berkenaan bolehlah menggunakan budi bicara beliau untuk mengundi.

6. Penyerahan borang proksi tidak menghalang seorang ahli untuk hadir sendiri pada mesyuarat sekiranya ahli berkenaan mengambil keputusan untuk hadir.

*Potong jika tidak berkenaan.

Tertakluk pada arahan pengundian yang dinyatakan di atas, proksi saya/ kami boleh mengundi atau mengecualikan diri daripada mengundi mana-mana resolusi sebagaimana yang beliau/ mereka fikirkan sesuai.

Meterai

Bilangan saham yang dipegang :

No Akaun Sekuriti :

Tarikh :

Bilangan saham yang dipegang :

No Akaun Sekuriti :

Tarikh :

Jika pelantikan proksi di bawah kuasa

Ditandatangani oleh ahli individu/ pegawai atau wakil kepada ahli/ penama yang diberi kuasa

(pemilik benefisial)

If appointment of proxy is under seal

The Common Seal of was hereto affixed in accordance with its

Articles of Association in the presence of :-

Director Director/Secretary

In its capacity as *member/*attorney of member/*authorised nominee of

(beneficial owner)

(Incorporated in Malaysia)

FORM OF PROXY

I/We

NRIC No./Passport No./Company No

of

telephone no being a member/members of BIMB Holdings

Berhad (“the Company”), hereby appoint

in respect of shares of

and/or in respect of shares

of

as my/our proxy/proxies to vote for me/us and on my/our behalf at the Extraordinary General

Meeting of the Company to be held on Thursday, 13 December 2007, at 9.30 a.m or at any

adjournment thereof. I/We indicate with an “x” in the appropriate spaces below as to how I/we

wish my/our vote to be cast:

Ordinary Resolution 1

Ordinary Resolution 2

Ordinary Resolution 3

Ordinary Resolution 4

Ordinary Resolution 5

Ordinary Resolution 6

Ordinary Resolution 7

Special Resolution 8

Ordinary Resolution 9

To receive the Audited Accounts for the financial year ended 30 June 2007 together with the Reports of the Directors and Auditors thereon.

To declare a first and final dividend of 2% less 26% tax in respect of the financial year ended 30 June 2007.

To re-elect Encik Salih Amaran bin Jamiaan, a Director who is retiring by rotation pursuant to Article 61 of the Company’s Articles of Association and being eligible has offered himself for re-election.

To re-elect Encik Zahari @ Mohd Zin bin Idris , a Director who is retiring by rotation pursuant to Article 61 of the Company’s Articles of Association and being eligible has offered himself for re-election.

To re-elect Tan Sri Samsudin Osman who is retiring pursuant to Article 66 of the Company’s Articles of Association.

To approve the Directors’ fees for the financial year ended 30 June 2007.

To re-appoint Messrs. KPMG Desa Megat & Co. as External Auditors of the Company until the conclusion of the next Annual General Meeting in year 2008 and to authorise the Directors to fix their remuneration.

Proposed Amendment to the Articles of Association of the Company.

Proposed Shareholders’ Mandate for Recurrent Related Party Transactions of a Revenue or Trading Nature.

For Against

notes :1. A member of the Company entitled to attend and vote at this meeting is entitled to appoint one or more proxies to attend and vote for him.2. The instrument appointing a proxy shall :

i in case of an individual, be signed by the appointor or by his attorney; andii in case of a corporation, be either under its common seal or signed by its attorney or by an officer on behalf of the corporation.

3. Where a member appoints more than one (1) proxy the appointment shall specify the proportions of his holdings to be represented by each proxy.4. The instrument appointing a proxy must be deposited at the registered Office of the Company at Level 18, Menara Yayasan Tun Razak, 200 Jalan Bukit Bintang, 55100

Kuala Lumpur, Malaysia not less than 48 hours before the time appointed for the taking of the poll; of the duly executed form of proxy are not acceptable.5. A proxy may vote on a show of hands and on a poll. If the form of proxy is returned without an indication as to how the proxy shall vote on any particular matter, the proxy

may exercise his discretion as to whether to vote on such matter.6. The lodging of a form of proxy does not preclude a member from attending and voting in person at the meeting should the member subsequently decides to do so.

*Delete if inappropriate

Subject to the abovestated voting instructions, my/our proxy may vote or abstain from voting on any resolution as *he/*she/*they may think fit.

Seal

No. of shares held :

Securities Account No :

Date :

No. of shares held :

Securities Account No :

Date :

If appointment of proxy is under hand

Signed by *individual member/*officer or attorney of member/*authorised nominee of

(beneficial owner)

BIMB HOLDINGS BERHAD (423858-X)

Level 18, Menara Yayasan Tun Razak200, Jalan Bukit Bintang

55100 Kuala Lumpur

Tel: +603 2781 2999Fax: +603 2781 2998