Laporan Kewangan Affin Bank 2008

soaring to new heights

Annual Report 2008

contents

1 Our Vision, Mission and Values
4 Notice of Annual General Meeting
5 Corporate Structure
6 Corporate Information
8 Financial Highlights
10 Financial Review
14 Board of Directors
20 Management Team
26 Statement of Corporate Governance
32 Audit and Examination Committee
34 Statement on Internal Control
36 Letter to Shareholders
39 Corporate Diary
46 Network of Branches

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Annual Report 2008
Our Vision, Mission & Values



our vision, mission & values

OUR VISION OUR MISSION OUR VALUES

A Premier Partner for • T o provide innovative financial solutions and In Serving Customers
Financial Growth and services to target customers in order to generate • Customer-first
Innovative Services. profits and create value for our shareholders and • Quality-focus
other stakeholders.
In Serving the Bank
• In doing so, we provide opportunities for • Loyalty
employees to contribute and excel; and be • Total commitment
competitive in providing our solutions and • Excellence through teamwork
services to our valued customers.
In Carrying Ourselves
• We shall conduct our business with integrity at Work
and professionalism in compliance with good • Discipline
corporate governance principles and practices. • Integrity
• Humility
• Be disciplined in growing our • Caring
loans by having an attitude • Creativity
of ‘absolute zero tolerance’
for NPLs.

“A FFINBANK stands at the doorway to a new horizon.
We are renewed and ready to face the challenges in
tandem with the shift in financial landscape amidst
a volatile market outlook. It is a journey we take
with our partners, clients, friends and team members.
We believe it is a journey that will lead to greater success
and well deserved recognition.”

YBhg. Gen Tan Sri Dato’ Seri Ismail Hj. Omar (Rtd)

Chairman



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Annual Report 2008
Notice of Annual General Meeting


notice of annual general meeting

NOTE Notice is hereby given that the 33rd Annual
General Meeting of AFFIN Bank Berhad
A member entitled to attend and vote at the will be held at the Board Room, 19th Floor,
Meeting is entitled to appoint a proxy to attend Menara AFFIN, 80, Jalan Raja Chulan,
and vote instead of him and the proxy need not 50200 Kuala Lumpur on Tuesday, 24 March,
be a member of the Company. 2009 at 9.30 a.m. for the transaction of the
following business:-
The instrument appointing a proxy shall be in
writing under the hand of the appointor or his 1. To receive the Statutory Statements of Accounts for the year
attorney duly authorised in writing or, if the ended 31 December 2008 and the Directors’ and Auditors’
appointor is a corporation, either under seal or Reports thereon.
in some other manner approved by Directors.
2. To declare a final dividend of 2.00% less income tax (25%)
The instrument appointing a proxy and the amounting to RM21.6 million for the financial year ended
power of attorney or other authority, if any, 31 December 2008.
under which it is signed or a notarially certified
copy of such power or authority shall be 3. To approve Directors’ fees for 2008.
deposited at the Company’s registered office at
17th Floor, Menara AFFIN, 80, Jalan Raja Chulan, 4. To re-elect the following Directors who retire pursuant
50200 Kuala Lumpur, at least forty-eight hours to Article 91(a) of the Articles of Association and who,
before the time appointed for holding the being eligible, offer themselves for re-election:-
Meeting or adjourned Meeting as the case a. YM Dr. Raja Abdul Malek Raja Jallaludin
may be, otherwise the person so named b. Y Bhg. Vice Admiral Dato’ Seri Ahmad Ramli
shall not be entitled to vote in respect thereof. Mohd Nor (Rtd)

c. YBhg. Dato’ Sri Abdul Aziz Abdul Rahman

5. To appoint Messrs PricewaterhouseCoopers as Auditors for
the financial year ending 31 December 2009 and to authorise
the Directors to fix their remuneration.

6. To transact any other business.

BY ORDER OF THE BOARD

NIMMA SAFIRA KHALID
AZIZAH SHUKOR
Secretaries

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Annual Report 2008

Corporate Structure



corporate structure

AFFIN Holdings Berhad

100% AFFIN Bank Berhad AFFIN Investment Bank Berhad 100%

100% AFFIN Islamic Bank Berhad AFFIN Fund Management Berhad 100%

100% AFFIN Factors Sdn Bhd AFFIN Trust Management Berhad # 100%

100% PAB Properties Sdn Bhd Merchant Nominees (T) Sdn Bhd 100%

100% ABB Nominee (T) Sdn Bhd Merchant Nominees (A) Sdn Bhd # 100%

100% ABB Nominee (A) Sdn Bhd Classic Precision Sdn Bhd 67%

100% ABB Trustee Berhad** AFFIN Nominees (T) Sdn Bhd 100%

100% AFFIN Futures Sdn Bhd# AFFIN Nominees (A) Sdn Bhd 100%

100% PAB Property Management Services Sdn Bhd#

100% PAB Property Development Sdn Bhd# AFFIN-ACF Holdings Sdn Bhd 100%
100% ABB Venture Capital Sdn Bhd#
100% ABB IT & Services Sdn Bhd# AFFIN.Com Sdn Bhd * 100%
100% BSNCB Nominees (T) Sdn Bhd#
100% BSNC Nominees (T) Sdn Bhd# AFFIN Leasing Sdn Bhd * 100%
100% ABB Asset Management (M) Berhad# AFFIN-ACF Management Services Sdn Bhd * 100%
AFFIN-ACF Capital Sdn Bhd # 100%

100% AFFIN Recoveries Berhad# AFFIN-ADB Sdn Bhd 100%
100% BSN Merchant Nominees (T) Sdn Bhd#

100% BSN Merchant Nominees (A) Sdn Bhd#

100% AFFIN-ACF Nominees (T) Sdn Bhd# AFFIN Moneybrokers Sdn Bhd 100%
20% UBB Trustee (Malaysia) Berhad***

50% AFFIN-i Goodyear Sdn Bhd##

AFFIN Capital Sdn Bhd 100%

AFFIN Securities Sdn Bhd* 100%

# Dormant * In members’ voluntary AXA AFFIN General Insurance Berhad*** 40%
winding-up AXA AFFIN Life Insurance Berhad 51%
## AFFIN-i Goodyear Sdn Bhd
is jointly owned by ** 80% held by Directors of
AFFIN Islamic Bank Berhad AFFIN Bank Berhad in trust
and Jurus Positif Sdn Bhd
with 50-50 ownership for AFFIN Bank Berhad

*** Associates

affinbank SECRETARIES
Annual Report 2008 Nimma Safira Khalid
Corporate Information Azizah Shukor

(appointed 23 September 2008)

corporate information REGISTERED OFFICE
17th Floor, Menara AFFIN,
NAME 80, Jalan Raja Chulan,
AFFIN Bank Berhad (25046-T) 50200 Kuala Lumpur.
Tel : 03-2055 9000
DATE OF INCORPORATION Fax : 03-2026 1415
23 October 1975
AUTHORISED SHARE CAPITAL
PRINCIPAL ACTIVITIES
AFFIN Bank Berhad is principally involved in the carrying out of No. of shares 2,000,000,000
banking and finance related services. The Bank has 17 subsidiary
companies and three associate companies which are principally Par value RM1.00
engaged in property management services, nominee services,
trustees management services and factoring services. Total RM2,000,000,000

BOARD OF DIRECTORS ISSUED AND PAID-UP SHARE CAPITAL
Chairman
YBhg. Gen Tan Sri Dato’ Seri Ismail Hj. Omar (Rtd) No. of shares 1,439,285,382

Directors Par value RM1.00
YBhg. Tan Sri Dato’ Lodin bin Wok Kamaruddin
Total RM1,439,285,382
(Directorship from 1 January 2008 - 29 March 2008)
SUBSTANTIAL SHAREHOLDER
YBhg. Dato’ Sri Abdul Hamidy Abdul Hafiz No. of shares
YM Dr. Raja Abdul Malek Raja Jallaludin AFFIN Holdings Berhad 1,439,285,382
YBhg. Vice Admiral Dato’ Seri Ahmad Ramli Mohd Nor (Rtd)
YBhg. Datuk Razman Md. Hashim Che Din Md. Hashim EXTERNAL AUDITORS
YBhg. Dato’ Dr. Lee Chee Kuon PricewaterhouseCoopers (AF 1146)
YBhg. Dato’ Sri Abdul Aziz Abdul Rahman
Mr Stephen Charles Li (appointed 17 March 2008)
Mr Eric Koh Thong Hau

(Alternate Director to Mr Stephen Charles Li appointed 17 March 2008)

Mr Aubrey Li Kwok-Sing (appointed 17 March 2008)
Mr Brian David Li Man-Bun

(Alternate Director to Mr Aubrey Li Kwok-Sing appointed 22 May 2008)

Managing Director/Chief Executive Officer
YBhg. Dato’ Sri Abdul Hamidy Abdul Hafiz

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Annual Report 2008
Corporate Information



Subsidiaries and Date and Place Issue and Paid Up Effective Equity Principal
Associate Companies Activities
of Incorporation Capital (RM) Interest (%)

AFFIN Islamic Bank Berhad 13.09.2005, Malaysia 160,000,002 100 Islamic Banking
Factoring Services
AFFIN Factors Sdn Bhd 26.12.1995, Malaysia 10,000,000 100
Property
PAB Properties Sdn Bhd 05.05.1983, Malaysia 8,000,000 100 Management Services

Nominee Services
Nominee Services
ABB Nominee (Tempatan) Sdn Bhd 09.02.1978, Malaysia 40,002 100
Trustee
ABB Nominee (Asing) Sdn Bhd 25.06.1996, Malaysia 2 100
Dormant
ABB Trustee Berhad* 03.12.1995, Malaysia 100,000 100 Dormant

(Associate Company) Dormant
Dormant
AFFIN Futures Sdn Bhd 25.07.1995, Malaysia 13,000,000 100 Dormant
Dormant
PAB Property Management 08.04.1991, Malaysia 30,002 100
Services Sdn Bhd Dormant

PAB Property Development Sdn Bhd 20.03.1991, Malaysia 250,000 100 Dormant
Dormant
ABB Venture Capital Sdn Bhd 01.12.1995, Malaysia 2 100 Dormant

ABB IT & Services Sdn Bhd 09.10.1995, Malaysia 2,000,000 100 Dormant

BSNCB Nominees 09.10.1995, Malaysia 500,000 100 Dormant
(Tempatan) Sdn Bhd
Trustee Services
BSNC Nominees 21.11.1995, Malaysia 10,000 100
(Tempatan) Sdn Bhd Property Development

ABB Asset Management (M) Berhad 29.02.1996, Malaysia 2 100

AFFIN Recoveries Berhad 05.07.1995, Malaysia 125,000,000 100

BSN Merchant Nominees 26.11.1996, Malaysia 10,000 100
(Tempatan) Sdn Bhd

BSN Merchant Nominees 03.12.1996, Malaysia 10,000 100
(Asing) Sdn Bhd

AFFIN-ACF Nominees 25.01.1985, Malaysia 25,000 100
(Tempatan) Sdn Bhd

UBB Trustee (Malaysia) Berhad 09.02.1988, Malaysia 150,020 20

(Associate Company)

AFFIN-i Goodyear Sdn Bhd** 13.03.2008, Malaysia 1,000,000 50

(Associate Company)

* 80% held by the Directors of AFFINBANK in trust for AFFINBANK.
** A FFIN-i Goodyear Sdn Bhd is jointly owned by AFFIN Islamic Bank Bhd

and Jurus Positif Sdn Bhd with 50-50 ownership

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Annual Report 2008
Financial Highlights


financial highlights

Profit/(Loss) before taxation ↑ 41.2% Total assets ↑ 3.5%

RM454.6 million RM33.0 billion

Loans and advances ↑ 15.8% Shareholders’ funds ↑ 7.9%

RM19.5 billion RM2.7 billion

Deposits from customers ↑ 7.5% Return on equity + 4.1%

RM25.2 billion 17.6%

Profit/(Loss) before taxation Total assets Loans and advances

(per million) (per billion) (per billion)

08 454.6 08 33.0 08 19.5
07 322.0 07 31.9 07 16.8
06 272.3 06 29.4 06 17.0
05 229.4 05 25.0 05 16.4
04 179.6 04 18.1 04 10.7

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Annual Report 2008

Financial Highlights



Group Bank
Year Ended 31 December
2008 2007 2008 2007

RM’000 RM’000 RM’000 RM’000

Profit Before Taxation 454,628 322,003 409,553 251,209
Profit After Taxation 331,312 232,452 299,936 180,859

Assets

Total Assets 33,011,374 31,909,386 27,730,474 26,233,528
17,054,062 15,100,333
Loans & Advances 19,516,255 16,848,690

Liabilities & Shareholders’ Funds

Deposits from Customers 25,227,789 23,475,926 20,979,568 19,780,674
1,439,285 1,439,285
Share Capital 1,439,285 1,439,285 2,580,142 2,409,341

Shareholders’ Funds 2,709,538 2,511,000

Financial Ratios (%)

Return on Assets (ROA) 1.40 1.02 1.52 0.94
17.56 13.49 16.57 10.89
Return on Equity (ROE) 23.0 sen 18.0 sen 20.8 sen 14.0 sen

Earnings Per Share (EPS)

Shareholders’ Funds Deposits from customers Earnings per share

(per billion) (per billion) (per sen)

08 2.7 08 25.2 08 23.0
07 2.5 07 23.5 07 18.0
06 2.3 06 22.6 06 15.4
05 2.1 05 17.8 05 14.2
04 1.6 04 12.9 04 15.9

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Annual Report 2008
Financial Review
10

financial review

PRE-TAX PROFIT NET LOANS AND ADVANCES
The financial year ended 31 December 2008 saw growth Net loans, advances and financing at the Group level
in profit for both the Group and the Bank. The Group increased by 16% to RM19.5 billion from RM16.8 billion
recorded a pre-tax profit of RM454.6 million, an increase the year before.
of 41% from RM322.0 million in 2007. Meanwhile, the Bank
registered a pre-tax profit of RM409.6 million compared to Deposits From Customers
last year’s result of RM251.2 million, an increase of 63%. Deposits from customers at the Group level increased
to RM25.2 billion from RM23.5 billion recorded the year
revenue before. Fixed deposits rose by RM0.9 billion to RM14.7
During the year, the Bank’s net interest income rose by 7% billion from RM13.9 billion in 2007.
to RM677.6 million from RM634.7 million recorded in 2007.
The Bank also recorded an increase of 8% in other operating Meanwhile, deposits sourced from business enterprise
income to RM241.8 million against 2007 result of RM223.2 increased by RM1.5 billion to RM9.5 billion versus
million. Islamic Banking income increased by 16% to 2007 result of RM8.0 billion. However, deposits from
RM148.1 million from RM127.9 million in the year before. Government and statutory bodies contracted to
RM4.4 billion from last year’s result of RM4.7 billion.
OVERHEAD EXPENSES
In 2008, the Bank’s operating expenses increased by 3% Shareholders’ funds
to RM466.4 million against 2007 result of RM452.9 million. The Group’s shareholders’ funds expanded further
This was mainly due to the rise in establishment costs from by 8% to RM2.7 billion in 2008 from RM2.5 billion
RM128.4 million in 2007 to RM148.7 million in 2008. the year before.

ASSETS CAPITAL ADEQUACY
During the year, the Bank’s total assets rose by RM1.5 In the year under review, the Group adopted the Basel II
billion to RM27.7 billion, compared to RM26.2 billion in Risk Weighted Capital Adequacy Framework. The Group’s
2007. Likewise, the Group’s total assets grew by 3% to core Tier 1 capital ratio stood at 10.1% and risk-weighted
RM33.0 billion in 2008 from RM31.9 billion recorded the capital adequacy ratio was 13.1%.
previous year.

The Bank remains committed
to continuously provide quality
and innovative products an1d1
services to meet the needs
and requirements of customers
and clients.

“ A t AFFINBANK, we have our unique strengths
and capabilities that larger banks do not have.
Our banking and financial products are tailor-
made according to the needs of our customers
in terms of innovation and after sales services.
There’s no such thing as one-size-fits-all in banking.”

YBhg. Dato’ Sri Abdul Hamidy Abdul Hafiz

Managing Director/Chief Executive Officer

13

affinbank YBhg. Vice Admiral Dato’ Seri YBhg. Dato’ Sri Abdul Hamidy YBhg. Dato’
Annual Report 2008 Ahmad Ramli Mohd Nor (Rtd) Abdul Hafiz Dr. Lee Chee Kuon
Board of Directors
Non-Independent Non-Executive Director Managing Director/CEO/ Independent Non-Executive Director
14 Non-Independent Executive Director

YBhg. Gen Tan Sri Dato’ Seri
Ismail Hj. Omar (Rtd)

Chairman/
Non-Independent Non-Executive Director

YM Dr. Raja Abdul Malek
Raja Jallaludin

Independent Non-Executive Director

YBhg. Tan Sri Dato’ Lodin Wok YBhg. Dato’ Sri Abdul Aziz affinbank
Kamaruddin Abdul Rahman Annual Report 2008

Non-Independent Non-Executive Director Independent Non-Executive Director Board of Directors

15

YBhg. Datuk Razman Md Hashim Mr Stephen Charles Li Mr Aubrey Li Kwok-Sing
Che Din Md Hashim Non-Independent Non-Executive Director Non-Independent Non-Executive Director

Independent Non-Executive Director

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Annual Report 2008
Board of Directors
16

board of directors (cont.)

YBhg. Gen Tan Sri Dato’ Seri YBhg. Dato’ Sri Abdul Hamidy
Ismail Hj. Omar (Rtd) Abdul Hafiz
Chairman/ Managing Director/CEO/
Non-Independent Non-Executive Director Non-Independent Executive Director

Gen. Tan Sri Dato’ Seri Ismail Hj. Omar (Rtd), Dato’ Sri Abdul Hamidy Abdul Hafiz, aged 52,
aged 68, was appointed as a Director and as was appointed as a Director and as Managing
Chairman of AFFINBANK on 21 May 2002. Director/CEO of AFFINBANK on 1 June 2003.
Prior to his appointment at AFFINBANK, he
Gen. Tan Sri Ismail was appointed Chief was the Managing Director of Pengurusan
of Defence Forces in 1995 and retired on Danaharta Nasional Berhad, the national asset
31 December 1998, after 38 years of service management company.
as a professional soldier. His military service
included various Command and Service Dato’ Sri Hamidy’s directorships in several
appointments at the Army, Armed Forces public and private companies including AFFIN
and Government Ministerial levels. Islamic Bank Berhad, AFFIN Investment Bank
Berhad, AFFIN Capital Sdn Bhd, Financial
Gen. Tan Sri Ismail graduated from Royal Mediation Bureau, ABM-MCD Holdings
Military Academy, Sandhurst, United Kingdom Sdn Bhd, AFC Holdings (Malaysia) Sdn Bhd,
in 1961 and has attended military training and BCF Holdings Sdn Bhd, Credit Guarantee
management development courses from several Corporation Malaysia Berhad, Cagamas Berhad
international institutions such as The Land and Asean Finance Corporation Limited.
Forces Command and Staff College, Canada
(1972); the UN International Peace Academy, Dato’ Sri Hamidy is presently the Chairman of
Vienna (1981); and the National Defence College, the Association of Banks in Malaysia (ABM),
India (1988). an industry trade group representing local
financial institutions.
He currently holds directorships in several
public and private companies including AFFIN Dato’ Sri Hamidy’s extensive banking experience
Islamic Bank Berhad, EP Engineering Sdn Bhd and knowledge has served him well in improving
and ABB Trustee Berhad. He is also the the Bank. His expertise ensures the success
Chairman of Global Medical Alliance Sdn Bhd. of the Bank’s governance and management
functions.
Gen. Tan Sri Ismail’s strength is his high quality
leadership. As the Chairman, his leadership Dato’ Sri Hamidy attended all 11 of the Board
strength ensures the smooth functioning Meetings held during the financial year ended
and effectiveness of the Board. He leads the 31 December 2008.
Board in setting positive values and standards
in the Bank.

Gen. Tan Sri Ismail attended all 11 Board
Meetings held during the financial year ending
31 December 2008.

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Annual Report 2008

Board of Directors

17

YBHG. Tan Sri Dato’ Lodin Wok YM Dr. Raja Abdul Malek YBhg. Vice Admiral
Kamaruddin Raja Jallaludin, Dato’ Seri Ahmad Ramli
Non-Independent Non-Executive Director MBBS (UNIVERSITI MALAYA) Mohd Nor (Rtd)
Independent Non-Executive Director Non-Independent Non-Executive Director
Directorship from 1 January 2008 - 29 March 2008
Dr. Raja Abdul Malek bin Raja Jallaludin, aged Dato’ Seri Ahmad Ramli Mohd Nor,
Tan Sri Dato’ Lodin Wok Kamaruddin, aged 64, was appointed to the Board of Directors of aged 65, was appointed to the Board
59, was appointed to the Board of Directors AFFINBANK on 29 January 1991. of Directors of AFFINBANK on 21 May
of AFFINBANK on 26 January 1985. He is 2002. He retired as Chief of Royal
presently the Chief Executive of Lembaga He graduated as a doctor from the University Malaysian Navy in 1999.
Tabung Angkatan Tentera (LTAT), Deputy of Malaya in 1972 and, early in his career, worked
Chairman of AFFIN Holdings Berhad and at the General Hospital, Kuala Lumpur and the He graduated from the Brittania Royal
Group Managing Director of Boustead Faculty of Medicine, UKM. In late 1975, he went Naval College Dartmouth, United
Holdings Berhad. into private medical practice and became a Kingdom in 1996, the Indonesia Naval
senior partner of Drs. Catteral, Khoo, Raja Malek Staff College in 1976, the United States
He graduated with a Bachelor of Business & Partners until 2003 when he resigned from Naval War College and Naval Post-
Administration in 1972 and Masters in Business the firm. Professionally he is widely experienced Graduate School in 1981. He also holds
Administration from the University of Toledo and had served in various peer and academic a Masters Degree in Public Administration
Ohio, United States of America in 1973. activities. Amongst others, he had been a from Harvard University, United States
He has extensive experience in general clinical tutor in the Faculty of Medicine, UMMC; of America.
management and fund management. been a member of the Ethical Committee of
the Malaysian Medical Council, MOH; was He currently holds directorships in
Tan Sri Dato’ Lodin currently holds directorships the Chairman of Council, Academy of Family AFFIN Islamic Bank Berhad, Muhibbah
in several public companies including AFFIN Physicians, Malaysia and had also held Engineering (M) Berhad, Comintel
Islamic Bank Berhad, AFFIN Investment Bank consultancy position as Medical Director for Corporation Berhad and Favelle Favco
Berhad, AXA AFFIN Life Insurance Berhad, Parke Davis-Warner Lambert, an American Berhad.
Johan Ceramics Berhad, Boustead Plantations pharmaceutical firm.
Berhad, Boustead Properties Berhad, Boustead Dato’ Seri Ahmad Ramli Mohd Nor is
Heavy Industries Corporation Berhad, and He is currently the Director of Medical & presently the Executive Deputy Chairman/
UAC Berhad. Scientific Affairs for HOE Pharmaceutical/ Group Managing Director of Boustead
Diversified Healthcare Services Sdn Bhd. Heavy Industries Corporation Berhad.
Tan Sri Dato’ Lodin also sits on the Boards
of The University of Nottingham in Malaysia His other directorship in public companies Dato’ Seri Ahmad Ramli Mohd Nor’s
Sdn Bhd, Boustead Petroleum Marketing include ABB Trustee Berhad. He is also a appropriate leadership skills and vast
Sdn Bhd, Boustead REIT Managers Sdn Bhd, member of the Advisory Panel of StemLife experience are useful to the Board in
Boustead Naval Shipyard Sdn Bhd, Boustead Berhad. gaining a wider and forward looking
Petroleum Sdn Bhd, AFFIN Capital Sdn Bhd perspective of decision making.
and Badan Pengawas Pemegang Saham Dr. Raja Abdul Malek brings a diverse professional
Minoriti Berhad. experience to the Board. His background Dato’ Seri Ahmad Ramli Mohd Nor
provides the necessary independence to attended all 11 Board Meetings held
Tan Sri Dato’ Lodin brings a broad range of the Board and adds value by drawing on his during the financial year ended
business management expertise to the Board experience and contributing to the Board’s 31 December 2008.
which contributes positively to the Board’s decision-making process.
decision-making.
Dr. Raja Abdul Malek bin Raja Jallaludin attended
Tan Sri Dato’ Lodin Wok Kamaruddin attended 9 out of 11 Board Meetings held during the
3 out of 3 Board Meetings held during the financial year ended 31 December 2008.
financial year ended 31 December 2008.

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Annual Report 2008
Board of Directors
18

board of directors (cont.)

YBhg. Datuk Razman Md Hashim YBhg. Dato’ Dr. Lee Chee Kuon
Che Din Md Hashim Independent Non-Executive Director
Independent Non-Executive Director
Dato’ Dr. Lee Chee Kuon, aged 62, was appointed
Datuk Razman Md Hashim, aged 70, was to the Board of Directors of AFFINBANK on
appointed to the Board of Directors of 21 May 2002.
AFFINBANK on 21 May 2002. He is a
member of the Australian Institute of Bankers. He obtained his Bachelor of Science (Engineering,
First Class Honours) Degree from University of
Datuk Razman started his career as an Officer London, Master of Business Administration from
Trainee with Standard Chartered Bank Malaysia Cranfield School of Management and Doctor in
Berhad in 1967. Throughout his 34 years of Philosophy from University of London. He completed
banking experience with Standard Chartered the Advanced Management Programme (AMP)
Bank, he served in several offices including conducted by the Harvard Business School,
London, Europe, Hong Kong and Singapore. Harvard University as a valedictorian.
In Malaysia he held various senior level positions
and was appointed Executive Director of He was with Amanah-Chase Merchant Bank
Standard Chartered Bank Malaysia Berhad Berhad from 1975 to 1981 and left as Senior
in 1994 until his retirement in June 1999. Manager/Head of Corporate Finance. During
his tenure there, he successfully completed the
In June 1999, Datuk Razman was appointed Chase Manhattan’s intensive six months’ Credit
by Bank Negara Malaysia as Chairman of MBf Training Programme in Hong Kong. He joined
Finance Berhad. He served in that role until Baring Brothers Asia Limited for a year prior to
January 2002 when the finance company his move to a senior managerial position in the
was sold to another Malaysia-based financial Lion Group. There he was involved hands-on in
institution. the Group’s corporate businesses; in an operational
and advisory capacity at the director’s level.
Presently, Datuk Razman is the Deputy He was a director of AFFIN-ACF Holdings Berhad
Chairman of Sunway Group of Companies, and AFFIN-ACF Finance Berhad.
a Director of Sunway City Berhad, Sunway
Infrastructure Berhad, Ranhill Berhad, MAA He is the Managing Director/CEO of a licensed
Berhad, MAA Holdings Berhad, MAA Takaful fund management company for more than 10 years
Berhad, Chairman of Multi-Purpose Holdings (of which he is the originating founder member).
Berhad and Chairman of Berjaya Land Berhad.
Dato’ Dr. Lee Chee Kuon has vast knowledge
Datuk Razman uses his wide banking experience benefiting from his experience within the financial
and skills in fulfilling his responsibilities as an industry. He possesses the requisite business
Independent Director. acumen in providing independence to the Board.

Datuk Razman Md Hashim attended 9 of 11 Dato’ Dr. Lee Chee Kuon attended 10 of the 11
Board Meetings held during the financial year Board Meetings held during the financial year
ended 31 December 2008. ended 31 December 2008.

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Annual Report 2008

Board of Directors

19

YBhg. Dato’ Sri Abdul Aziz Aubrey Li Kwok-Sing Stephen Charles Li
Abdul Rahman Non-Independent Non-Executive Director Non-Independent Non-Executive Director
Independent Non-Executive Director
Mr. Aubrey Li Kwok-Sing, aged 59, was Mr. Stephen Charles Li, aged 49, was
Dato’ Sri Abdul Aziz Abdul Rahman, aged 63, was appointed to the Board of Directors of appointed to the Board of Directors of
appointed to the Board of Directors of AFFINBANK AFFINBANK on 17 March 2008. He is a AFFINBANK on 17 March 2008. Mr. Li
on 28 January 2003. Director of The Bank of East Asia Limited is a Director of The Bank of East Asia
and Chairman of MCL Partners Limited. Limited.
Dato’ Sri Abdul Aziz graduated with a Bachelor of
Commerce from University of New South Wales, He is also a Director of Cafè de Coral Mr. Li currently holds directorships
Sydney, Australia. He is a member of the Malaysian Holdings Limited, China Everbright in several funds managed by INTL
Institute of Certified Public Accountants (MICPA) International Limited, CNPC (Hong Kong) Consilium, LLC. He has over 16 years’
and the Malaysian Institute of Accountants (MIA). Limited, Kowloon Development Co. Ltd, experience in investment banking having
Pokfulam Development Company held senior capital markets positions
He has served as Chairman and board member Limited, Atlantis Investment Management with international investment banks in
of several government institutions, agencies and (Ireland) Limited and Dalton Capital London and Hong Kong.
public listed companies, both in Australia and (Guernsey) Limited.
Malaysia. Mr. Li holds a Bachelor of Science
Mr. Li complements the Board with his (Hons.) Degree in Mathematics from
At the corporate level, he was with Price Waterhouse expertise and extensive experience in King’s College, University of London,
& Co. Sydney, Malaysia Airlines and Managing investment banking, merchant banking United Kingdom in 1981. He is also a
Director of Bank Rakyat Berhad before venturing and capital markets. member of the Institute of Chartered
into politics and public service as the Pahang Accountants in England and Wales.
State Assemblyman, State Executive Councillor Mr. Li attended 6 of the 9 Board Meetings
and Deputy Chief Minister of Pahang. He was a held during the financial year ended Mr. Li’s international work exposure and
Senator of Malaysian Parliament for a maximum 31 December 2008, subsequent to his experience contributes to the Board
period of two (2) terms. appointment on 17 March 2008. decision-making process from the global
perspective.
Presently he is a board member of the International
Islamic University Malaysia, Universiti Malaysia Mr. Li attended 4 of the 9 Board Meetings
Pahang and their associated holding companies. held during the financial year ended
31 December 2008, subsequent to his
Dato’ Sri Abdul Aziz’s expertise and knowledge appointment on 17 March 2008.
carries across a broad spectrum relating to
finance and accounting. His standing in the Mr. Li’s alternate, Mr. Eric Koh Thong Hau,
community contributes effectively to his role as attended 5 of the 9 Board Meetings held.
an Independent Director particularly in meeting
various stakeholders’ expectations.

Dato’ Sri Abdul Aziz attended all 11 Board Meetings
held in the financial year ended 31 December 2008.

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Annual Report 2008
Management Team
20

management team

Ybhg. Dato’ Sri Abdul Hamidy ZULKIFLEE ABBAS ABDUL HAMID KAMARUL ARIFFIN
Abdul Hafiz Executive Director, Banking MOHD JAMIL
Managing Director / CEO CEO, AFFIN Islamic Bank
Prior to joining AFFINBANK, Zulkiflee Abbas
was the Chief Credit Officer in one of Malaysia’s Kamarul Ariffin Mohd Jamil graduated
leading banks. He also served in various from the University of Cambridge in 1992
positions there including the board member with a Bachelor of Arts (Economics).
of its subsidiaries. He graduated with a He joined AFFINBANK in 2003 as Head,
Masters in Business Administration from the Corporate Strategy Division. In 2005, he
Southern Illinois University. Zulkiflee Abbas was appointed as Head, Islamic Banking
joined AFFINBANK in March 2005 as Director, Division and with the incorporation of
Enterprise Banking. He was later made the AFFIN Islamic Bank as a standalone
Director of Business before assuming his subsidiary in 2006, he is currently
current position. the Chief Executive Officer. Prior to
AFFINBANK, Kamarul held various
“E veryone is equally important. We would not have reached positions at Pengurusan Danaharta
this level of achievement and success without the dedication Nasional Berhad namely Head of
and enthusiasm of each and every team member.” Managing Director’s Office and Special
Assistant to Managing Director between
YBhg. Gen Tan Sri Dato’ Seri Ismail Hj. Omar (Rtd) 1999 and 2003. Kamarul also did a
Chairman stint in Trenergy Malaysia Berhad and
Shell Malaysia Trading Sdn Bhd in
various capacities including business
development, planning and Special
Assistant to the Managing Director of
Trenergy Malaysia Berhad.

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Annual Report 2008

Management Team

21

SHARIFFUDIN MOHAMAD EE KOK SIN KASINATHAN KASIPILLAI
Director, Operations Chief Financial Officer Chief Risk Officer

Shariffudin joined AFFINBANK in Ee Kok Sin began his career in 1982 as a Kasinathan holds a Masters in Business
August 2007. He has 25 years local Trainee Accountant with a firm of Chartered Administration from the University of Bath, UK
and overseas experience in banking. Accountants in London. He has extensive and is a Certified Risk Professional awarded
His hands-on experience covers experience in auditing, treasury functions, by Bank Administration Institute, Chicago,
Branch Operations, Trade Finance, financial accounting, financial management USA. He is also an Associate Fellow of
Corporate Banking, Corporate and information technology. Prior to his Institute of Bankers Malaysia. This is in
Relationship Management, Credit appointment at AFFINBANK, he was the recognition of his pioneering work in developing
Operations, Cash Management and General Manager, Finance & Services of the Certified Credit Professional (CCP)
Securities Services. His last position Pengurusan Danaharta Nasional Berhad. certification. He continues to serve as an
was Head, Project Management At AFFINBANK, his portfolio includes active member of CCP Examination Committee
Services (Technology & Operations) Finance, Property & Logistics, Administration to this day. He has over 30 years of local and
in a leading foreign bank and its local and Information Technology. He is a Fellow overseas banking experience particularly in
outsourcing subsidiary. He graduated Member of the Association of the Chartered the area of Risk Management. He comes from
from Southern Illinois University, USA Certified Accountants (FCCA) and a member a foreign bank background having earlier
with a Degree in Finance and a Masters of The Malaysian Institute of Certified Public worked in the risk function of that bank in
in Business Administration. Accountants (MICPA) and Malaysian Institute a number of countries including London,
of Accountants (MIA). Singapore, Hong Kong, Mumbai and Jakarta.

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Annual Report 2008
Management Team
22

management team (cont.)

KHATIMAH MAHADI MOHAMAD ASLAM KHAN IDRIS ABD. HAMID
Group Chief Internal Auditor Chief Recovery Specialist Head, Hire Purchase

Khatimah Mahadi has 28 years of experience Mohamad Aslam Khan holds a Bachelor’s Idris Abd Hamid has over 30 years of
in Internal Auditing including 21 years in Degree in Business Administration with experience in the banking and finance
financial services with Citibank Berhad, a honours. He joined AFFINBANK in 1996 industry. His career with AFFINBANK
development bank and a finance company. as the General Manager of Commercial began in 1994 when he was the General
In addition, she also had a stint with a local Banking Division and was later appointed the Manager for AFFIN Finance Berhad
bank, Lembaga Pasaran dan Perlesenan Getah Head of Special Asset Management. He has and he was later made Deputy Chief
and Auditing/Consulting Firm Hanafiah, Raslan held various positions domestically and Executive Officer for AFFIN-ACF Finance
& Mohamad. She was also the Director of internationally both in the business and Berhad from 2000 to 2005. Prior to
Compliance and Country Internal Audit Head business support divisions. Aslam has over joining AFFINBANK, Idris held various
when she was with Citibank Berhad. 35 years of banking experience. Prior to positions at Arab-Malaysian Finance
AFFINBANK, he held various positions at (currently known as AmBank) from
Maybank for 21 years. His last position there 1984 to 1994 as Branch Manager,
was the General Manager of Maybank in New Assistant Manager Corporate Loans
York. He also had a five-year stint with the and Head of Consumer Loans Division.
former Oriental Bank as the General Manager, He graduated from the University of
Enterprise Banking Division. Northern Colorado and Southern
Illinois University, USA with Masters in
Business Administration and Bachelor
of Science in Finance respectively.

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Annual Report 2008

Management Team

23

TAN KOK TOON MR RICHARD KONG AHMAD ZULQARNAIN ONN
Director, Treasury Chief Human Resources Officer Chief Corporate Strategist

Tan Kok Toon completed his Bachelor Richard was previously the General Manager, Zulqarnain graduated from Harvard University
of Science (Hons) in Mathematics from Operations at Pengurusan Danaharta Nasional with an AB in Economics. Before joining
Universiti Malaya in 1987. He joined Berhad until its winding down in December AFFINBANK, Zulqarnain was the principal of
AFFINBANK as Head of Treasury in 2005. He has 35 years of extensive banking a private corporate finance advisory firm. He
October 2004 and is responsible for experience, including service in a leading began his career with UBS as an analyst, and
managing all aspects of Treasury international bank, Standard Chartered Bank subsequently joined Pengurusan Danaharta
Division. He is currently the Honorary Malaysia Berhad. During his tenure with the Nasional Berhad. He then joined the investment
Secretary of Persatuan Pasaran Bank, he had the opportunity to serve as banking team at CIMB before being seconded
Kewangan Malaysia (Association Head, Special Assets Management (SAM) to the Corporate Debt Restructuring Committee.
Cambiste Internationale) and Chair to Regional Asia Pacific Head for Brunei & the His other previous positions include Director
the Seminar and Education Committee. Philippines. Richard also worked as a Senior in the Symphony House Berhad group and
Prior to AFFINBANK, he worked in Account Manager in SCB Nakornthon Bank Executive Director at Bolton Berhad.
one of the largest banks in Malaysia. in Bangkok, during the Asian financial crisis.
For more than 18 years, he worked in He has a strong track record in the areas of
various capacities of Treasury operations, asset management, credit risk management,
served as Treasury Manager with the commercial and domestic corporate banking
New York branch of the bank and was and also in manpower planning, training &
Treasury Business Advisor to turnaround development.
a business project in the Philippines.

“ S ociety is where the Bank draws its customer base from.
The Bank believes that every organization should return
24to the community what it has been able to draw from it.
The Bank aspires not only to paint an image of a caring
Bank but to truly be a caring Bank.”

Kamarul Ariffin Mohd Jamil
Chief Executive Officer, AFFIN Islamic

25

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Annual Report 2008
Corporate Governance

26

statement of
corporate governance

The Board of Directors of AFFINBANK (‘Board’) and and its employees. The Board and Management set high
Management appreciate the importance of adopting high ethical business standards and practices for business conduct
standards of Corporate Governance towards enhancing and the code of behaviour for employees to adhere to. In
business prosperity and corporate accountability with the addition to the COE, all Directors are also required to observe
ultimate objective of safeguarding shareholder’s interests. the Directors’ COE. Responsibility for implementation of these
The Board and Management are fully committed and policies and guidelines rests primarily with Management, with
constantly strive to ensure that the principles of the Malaysian oversight by the Audit and Examination Committee. Good
Code on Corporate Governance (‘Code’) and Bank Negara Corporate Governance is the foundation of the culture and
Malaysia (BNM) Guidelines on Corporate Governance for business practices of AFFINBANK.
Licensed Institutions (Revised BNM/GP1) are adopted and
practised throughout the group. This is important in ensuring The following statements set out the commitment of
that AFFINBANK is managed safely and soundly where risks AFFINBANK in applying good Corporate Governance
and business prudence are appropriately balanced in order principles and the extent of compliance with the
to maximize shareholder’s return and protect the interests of recommended best practices.
all stakeholders. Throughout 2008 and to date, AFFINBANK
continues to conduct its business with integrity and exercise 1. Board of Directors
a high level of transparency and objectivity.
The Board is committed in establishing and enhancing
The Board and Management are fully committed in ensuring shareholder’s value in the long term. The Board is pleased
employees adhere closely to BNM’s Guidelines (BNM/GP7) to report that the Board has to its best efforts and knowledge
on Code of Ethics (‘COE’), which aims at instilling the three complied with the principles and best practices of the Code
values integrity, credibility and confidence in AFFINBANK throughout the financial year under review.

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Annual Report 2008
Corporate Governance

27

In 2008, AFFINBANK continues to have a strong and AFFINBANK. These include responsibility for determining
experienced Board, befitting its aspiration to become a mid AFFINBANK’s general policies and strategies for the short,
size Bank of prominence. The Board of AFFINBANK has a medium and long term, approving business plans, including
balance composition. It consists of representatives from the targets and budgets, and approving major strategic decisions.
private sector with suitable qualifications fulfilling the fit and The terms of reference of the Board Committees disclosed
proper criteria as required by BNM/GP1, a mixture of different on page 33 of this Annual Report provide an outline of its
skills, competencies and experience. Directors’ profiles which roles and functions.
appear on pages 16 to 19 reflect clearly the depth and diversity
in expertise and perspective they have to lead AFFINBANK In carrying out its functions, the Board has delegated specific
as well as allow for an independent and objective analysis of responsibilities to other Board Committees, which operated
major issues. under approved terms of reference, to assist the Board in
discharging their duties.
Board’s Responsibilities
The Board is principally responsible for the overall performance • T he Board Remuneration Committee (‘RC’) is responsible for
of AFFINBANK. The Board provides stewardship on providing a formal and transparent procedure for developing
AFFINBANK’s strategies and operations in order to maximize the remuneration policy for Directors, Managing Director/
shareholder’s value. Chief Executive Officer and key senior management
officers and ensuring that compensation is competitive
The Board’s responsibilities remain within the framework of and consistent with AFFINBANK’s culture, objectives and
BNM Guidelines. The Board has diligently carried out its strategy. The Committee obtains advice from experts in
responsibilities whilst retaining full and effective control of compensation and benefits, both internally and externally.

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Annual Report 2008
Corporate Governance
28

statement of corporate governance (cont.)

• The Board Nominating Committee (‘NC’) is responsible Board, the governance structure and inculcate a positive
for providing a formal and transparent procedure for the culture in the Board.
appointment of Directors and Managing Director/Chief
Executive Officer, assessing the effectiveness of individual The Board comprises Directors who, as a group, provide a
Directors, the Board as a whole and the performance of mixture of core competencies such as finance, accounting,
the Managing Director/Chief Executive Officer and key legal, business, management, marketing, information
senior management personnel. technology and investment management, which are essential
for the effective functioning and discharging of responsibilities
• The Board Risk Management Committee (‘BRMC’) is by the Board.
responsible for overseeing management’s activities in
managing credit, market, liquidity, operational, legal and The Managing Director/Chief Executive Officer is responsible
other risks and to ensure that the risk management process for the overall day-to-day business affairs of AFFINBANK
is in place and functioning. while providing strong leadership in the implementation of
Board decisions.
• The Board Loan Review and Recovery Committee (‘BLRRC’)
is responsible in providing critical review of loans and other The Independent Non-Executive Directors play a vital role
credit facilities with higher risk implications, after due process in providing effective checks and balances on the Board
of checking, analysis, review and recommendation by the through their knowledge and experience towards the
Credit Risk Management function, and if found necessary, achievement of AFFINBANK’s objectives. No individual or
to exercise the power to veto loan applications that have small group of individuals dominate the Board’s decision
been approved by the Management Loan Committee. making process.

• T he Audit and Examination Committee is responsible for Independence and Conflict of Interest
providing oversight on reviewing the adequacy and integrity It is the Directors’ responsibilities to declare whether they have
of the internal control systems and oversees the work of a potential or actual interest in any transaction of AFFINBANK.
the internal and external auditors. Where issues involve conflict of interest, the interested
Directors abstain from discussing or voting on the matter.
Board Composition and Balance
The Board consists of ten (10) Directors and two (2) alternate Appointments and Re-election to the Board
Directors comprising one (1) Executive Director and nine (9) In 2008, BNM approved two (2) re-appointments of the
Non-Executive Directors, of whom four (4) are Independent Non-Independent Non-Executive Directors and three (3)
Non-Executive Directors and five (5) are Non-Independent Independent Non-Executive Directors. In accordance with
Non-Executive Directors. Board meetings are presided by a the Company’s Memorandum and Articles of Association,
Non-Executive Non-Independent Chairman whose role is one-third (1/3) of the Directors, or, if their number is not three
clearly separated from the role of the Managing Director/ (3) or a multiple of three (3), the number nearest to one-third
Chief Executive Officer. The Chairman is responsible for (1/3), shall retire from office at each Annual General Meeting
ensuring the effectiveness and smooth functioning of the and they may offer themselves for re-election.

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Annual Report 2008
Corporate Governance

29

None of the Directors are subject to retirement pursuant to 6. Enhancing the Resilience and Stability of the Islamic
Section 129 of the Companies Act, 1965. Financial System by The Islamic Financial Services
Board (IFSB) and Institute of International Finance (IIF)
Directors’ Training and Development
All newly appointed Non-Executive Directors are furnished Meeting and Supply of Information to the Board
by AFFINBANK with copies of the BNM Guidelines, the The Board meets on a scheduled basis at least twelve (12)
Banking and Financial Institutions Act 1989 and other relevant times a year with additional meetings convened when
legislation governing the banking industry to facilitate their necessary to review progress reports on AFFINBANK’s
understanding of banking business requirements. New financial performance, approved strategies and business
Directors are also given briefing by the senior management plans and significant policies as well as to consider business
to help them gain a better understanding of the Company’s and other proposals which require the Boards’ approval.
business operations. For financial year ended 31 December 2008, 11 Board
meetings were held. Meetings are usually held at the Bank’s
All Directors have attended various training programmes Board Room at 19th Floor, Menara AFFIN, 80 Jalan Raja Chulan,
organised internally as well as externally by the relevant 50200 Kuala Lumpur.
authorities such as BNM, Securities Commission (‘SC’)
and Companies Commission of Malaysia (‘CCM’). Board Before each Board meeting, Directors are provided with a
members undergo the necessary training from time to complete set of Board papers providing updates on operational,
time and keep abreast with current regulatory issues and financial and corporate developments itemised in the agenda
changing commercial risks. for Board’s review, approval and/or notation.

The following are some of the programmes, seminars and The Board monitors AFFINBANK’s performance by reviewing
briefings attended by the Directors in 2008:- the monthly Management Report, which provides a
1. Financial Institutions Directors’ Education (FIDE) Pilot comprehensive review and analysis of AFFINBANK’s
operation and financial issues. In addition, the Minutes of
Programme organised by FIDE the various Board Committees and Management Committee
2. Khazanah Global Lectures by Carlos Ghosn organised meetings and other issues are also tabled and considered
by the Board.
by Khazanah Nasional Berhad
3. Lecture by Mr James Crown organised by Knowledge Procedures are in place for Directors to seek independent
professional advice at AFFINBANK’s expense. AFFINBANK
Group Consulting also provides the Board with assistance and their full access
4. Luncheon Talk on Market Liquidity & Implication on to necessary materials and relevant information as well as
the advice and services of the Company Secretaries in order
World Economy organised by Malaysian Institute of to fulfill their duties and specific responsibilities.
Economic Research
5. Presentation and Dialogue in conjunction with the
release of PIDM Annual Report organised by
Perbadanan Insurans Deposit Malaysia (PIDM)

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Annual Report 2008
Corporate Governance
30

statement of corporate governance (cont.)

2. Directors’ Remuneration 3. Accountability and Audit

Composition Financial Reporting
AFFINBANK acknowledges the importance of attracting and AFFINBANK continues to subscribe to the philosophy of
retaining the right calibre of Directors with the necessary transparent, fair, reliable and easily understandable reporting
skills, qualifications and experience for effective Board to stakeholders. The Board upholds its responsibility by
oversight of AFFINBANK’s business activities and affairs. regularly providing updates on AFFINBANK’s performance
through quarterly announcements, ad hoc press conferences,
The make-up of the Managing Director/Chief Executive and briefings to the media throughout 2008.
Officer’s remuneration remains unchanged consisting of
salary, allowances, bonus and other customary benefits The Board acknowledges and accepts full responsibility for
as appropriate. Any salary review, takes into account the financial information contained in this Annual Report and
market rates and the performance of the individual and of by which means it provides a balanced, clear and meaningful
AFFINBANK. assessment of its financial position and prospects as
presented here in this Annual Report and all other reports
Non-executive Directors’ emoluments consist of two to the stakeholders, regulatory authorities and public.
components – an annual fee as a Board member and
an allowance for attendance of meetings. A revision of Statement of Directors’ Responsibility for
Directors fees was effected in 2008. The Directors’ fees Preparing the Financial Statement
and allowances are those recommended by the Board The Board is confident that the financial statements for the
and in line with AFFIN Holdings group of companies. financial year ending 2008 give a true and fair view of the
state of affairs, the results and cash flow of AFFINBANK and
Directors’ emoluments are disclosed in the relevant note to the Group for the financial year. The Board also strives to
the financial statements as an aggregate sum, in conformance ensure that financial reporting presents a true and fair
with the relevant legislation. assessment of AFFINBANK’s position and prospects.

Shareholder There is reasonable assurance that AFFINBANK has
AFFINBANK is a wholly owned subsidiary of AFFIN Holdings maintained proper accounting records used and consistently
Berhad, a company listed on Bursa Malaysia. applied appropriate accounting policies supported by
reasonable and prudent judgments and estimates, and
Annual General Meeting (‘AGM’) prepared the financial statements in accordance to the
The Annual Report and financial statements for year ended provision of the Companies Act 1965, approved accounting
31 December 2007 were tabled at the 32nd AGM on standards in Malaysia and BNM Guidelines.
14 March 2008. Likewise the Annual Report and financial
statements for year ended 31 December 2008 will be All published information on AFFINBANK is available at
tabled at the 33rd AGM on 24 March 2009. www.affinbank.com.my.

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Annual Report 2008
Corporate Governance

31

INTERNAL CONTROL independent audits in accordance with the approved 2008
Internal Audit Plan.
AFFINBANK has a well-established and fully operational risk
management and internal control system. The Statement on RELATIONSHIP WITH AUDITORS
Internal Control, which is set out in pages 34 through 35 of the
Annual Report provides an overview on the risk management A professional and transparent relationship continues to exist
process/framework as well as on how the internal control between the Board/Audit and Examination Committee and
system has been designed to manage risks and avert failures. the external auditors. The Audit and Examination Committee
AFFINBANK continues to enhance its system of internal is authorized to communicate directly with both the external
control and risk management, in order to better quantify its and internal auditors. A full Audit and Examination Committee
compliance with the Code. report outlining its role in relation to the Auditors is set out
in page 33. In addition, the external auditors meet with the
The Board has overall responsibility for maintaining the proper Board at least once a year when the annual audited financial
management and protection of AFFINBANK’s interests by statements are presented to the Board.
ensuring effective implementation of the risk management
policies and processes, as well as adherence to a sound ASSURANCE
system of internal control, and by seeking regular assurance
on their effectiveness. The Board also recognizes that risks The Board through the Audit and Examination Committee
cannot be eliminated completely. As such, the inherent system has satisfactorily performed its oversight role in ensuring
of internal control is designed to provide a reasonable though there is a sound internal control system and regular review
not absolute assurance against the risk of material errors, on the adequacy and integrity of the system. Assurance on
fraud or losses occurring. the effectiveness of risk management, control and governance
process is obtained from the Management and Auditors
The Audit and Examination Committee has an oversight (internal and external).
responsibility for the adequacy and integrity of the internal
control system. Reliance is placed on the results of independent BNM auditors, internal auditors and external auditors
audits performed primarily by internal auditors, the outcome conduct independent audits on AFFINBANK’s business
of statutory audits on financial statements conducted by operations, support activities and financial records and
external auditors and on representations by Management statements respectively to derive an opinion on the
based on their control self-assessment of all areas of their adequacy and integrity of AFFINBANK’s overall internal
responsibility. Minutes of Audit and Examination Committee control framework.
meetings, which provide a summary of the proceedings, are
circulated to Board members for notation and discussion. Finally, with the benefit of the above assurances and the
external auditor’s comments incorporated in their audit report
AFFINBANK has an established Internal Audit Division which on the financial statements for the financial year ended
reports functionally to the Audit and Examination Committee 31 December 2008, the Board is able to conclude that
and administratively to the Managing Director/Chief AFFINBANK conducts its business prudently and in line
Executive Officer. The division is responsible for conducting with good governance practices.

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Annual Report 2008
Audit and Examination Committee
32

audit and examination committee

YBHG. DATO’ SRI ABDUL AZIZ YM DR. RAJA ABDUL MALEK
ABDUL RAHMAN BIN RAJA JALLALUDIN
Chairman Member

YBHG. DATO’ DR. LEE CHEE KUON
Member

YBHG. TAN SRI MOHAMED JAWHAR
Member
Representative from AFFIN Islamic Bank Berhad

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Annual Report 2008
Audit and Examination Committee

33

TERMS OF REFERENCE OF THE 2. To review the reports of the Internal Auditor, the
AUDIT AND EXAMINATION COMMITTEE External Auditors, Bank Negara Malaysia examiners
or any other relevant parties and decide on actions
Size and composition to be taken on relevant issues raised in the reports.
The Committee shall consist of at least three (3) members
but not more than five (5) members, appointed by the Board 3. To review with the External Auditors the scope of their
from amongst the non-executive Directors of the Bank. audit plan, the system of internal accounting controls,
the audit reports, the assistance given by the
Meetings management and its staff to the auditors, and
Meetings shall be held at a frequency to be decided by the any findings and action to be taken.
Audit and Examination Committee. At the request of the
Auditors, the Chairman shall convene a meeting to consider 4. To make recommendation to the Board on the
any matters that the Auditors may wish to bring to the appointment of External Auditors.
attention of the Directors or shareholders. A quorum shall
consist of at least two (2) members. The Group Chief Internal 5. To review the effectiveness and performance of the
Auditor shall be the Secretary to the Audit and Examination internal audit functions from time to time.
Committee.
6. To review and approve the annual audit plan and budget
Authority for Group Internal Audit, which sets out the audit
The Committee shall have unlimited access to all records, objectives, auditable areas, scope of coverage, frequency
information and documents relevant to its activities, to the of audit and duration of each audit assignment.
Internal and External Auditors, and to senior management
of the Bank and its subsidiaries. The Internal and External 7. To ensure that Group Internal Audit has adequate
Auditors shall have free access to the Audit and Examination resources and support services to carry out its functions.
Committee and be allowed to attend and to be heard at
the Committee meetings. The Committee is authorised by 8. To review the overall performance of the Group Chief
the Board to obtain outside and independent professional Internal Auditor, including the remuneration package.
advice as and when it is considered necessary.
9. To review any significant related party transactions that
Duties and Responsibilities may arise within the Bank’s group or associate companies
The duties and responsibilities of the Audit and Examination and report to the Board any areas of concern.
Committee are:
10. To escalate to the Board via minutes of meetings or
1. To review AFFINBANK’s financial statements and to special reports on any exceptions identified.
ensure compliance with disclosure requirements and
any adjustments as suggested by the External Auditors, 11. To carry out such other responsibilities as may be
prior to submission to the Board. delegated by the Board from time to time.

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Annual Report 2008
Statement on Internal Control
34

statement on internal control

RESPONSIBILITY Key Internal Control Processes
The key processes put in place to assist the Board in
The Board acknowledges overall responsibility for AFFINBANK reviewing the adequacy and integrity of the system of
Group’s system of internal controls and its effectiveness. internal controls include the following:
The system of internal controls encompasses controls relating
to financial, operational, risk management and compliance • R elevant Board committees are established with specific
with applicable laws, regulations, policies and guidelines. responsibilities delegated by the Board to deliberate on
matters within the respective scope of responsibility.
However, the system of internal controls is designed to The committees are guided by written terms of reference
manage rather than eliminate the risks of failure to achieve and their minutes of meetings are tabled to the Board.
the goals and objectives of the Group. Therefore, it can
only provide a reasonable and not absolute assurance • T he Board Risk Management Committee (BRMC) assists
against material misstatement of management and financial the Board in its supervisory role concerning the overall
information, or against financial losses or fraud. management of risk in the Bank. It has responsibility for
reviewing and approving all risk management policies
The Board has an established process for identifying, and risk management methodologies. BRMC also reviews
evaluating, managing and reporting on all significant risks guidelines and portfolio management reports including
that may impact the achievement of business goals and risk exposure information.
objectives of the Group. The system of internal controls is
dynamic and updated from time to time to meet the changes • The Board Loan Review and Recovery Committee (BLRRC)
in regulatory guidelines and business environment. This critically reviews loans and other credit facilities with higher
process is regularly reviewed by the Board through its risk implications, after due process of checking, analysis,
Board Risk Management Committee (BRMC) and Audit review and recommendation by Risk Management, and if
and Examination Committee (AEC). found necessary, exercise the power to veto loan applications
that have been approved by the Management Loan
The Board is of the view that the system of internal controls Committee (MLC). BLRRC also reviews the non-performing
in place for the year under review is sound and sufficient to loan reports presented by the Management.
safeguard the investment of the shareholders, the interests
of the customers and regulators, and the assets of the Group. • The Management Committee (MCM), comprising the
senior management team, assists the Board in managing
The management assists the Board in implementing the the day-to-day operations. MCM formulates tactical
policies approved by the Board, implementing risk and control plans and business strategies, monitors the Bank’s
procedures, and developing, operating and monitoring overall performance, and ensures that the activities are
internal controls to mitigate and control identified risks. in accordance with corporate objectives, strategies,
policies and annual business plan and budget.

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Annual Report 2008
Statement on Internal Control

35

• The Management Loan Committee (MLC) is established • An integrated risk management framework is in place.
within senior management to approve complex and The risk management function operates in an independent
larger loans and workout/recovery proposals beyond capacity and is a part of the Bank’s senior management
the delegated authority of the concerned individual senior structure which works closely as a team in managing
management personnel of the Bank. The other committees risks to enhance stakeholders’ value. Its responsibilities
comprising senior management include the Asset & extend to cover market, liquidity, credit and operational
Liability Management Committee (ALCO) which manages risks. The risk management function reports to BRMC.
market and liquidity risks, and Operational Risk Management
Committee (ORMC) which manages operational risk.

• A detailed budgeting process is in place with annual
business plans and budgets prepared by business divisions,
reviewed by MCM and approved by the Board. The actual
performances are monitored against the approved targets
and budget of each business division by MCM on a
monthly basis.

• The business plan is supported by an annual credit plan,
prepared by Risk Management and approved by BRMC.
The credit plan sets out the prevailing risk appetite and
provides credit strategies and lending guidelines for the
development and management of new and existing
customer relationships.

• P olicies and procedures for key processes are documented
and regularly updated to ensure relevance and compliance
with internal controls, directives, laws and regulations.
To enhance risk culture and awareness, road shows are
undertaken by Risk Management across the Bank.

• Proper guidelines for the hiring and termination of
employees, staff training programs and performance
appraisals are established and other relevant procedures
in place to ensure staff are adequately trained and
equipped to carry out their responsibilities competently.

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Annual Report 2008
Letter to Shareholders
36

Letter to shareholders

It gives us great joy to reflect Performance review
upon and comment on our
2008 results and we consider For year 2008, AFFINBANK continued with the implementation
this as one of the best privileges of its transformation plan, notwithstanding difficult economic
one can ask for. This was conditions in the second half of the financial year arising from
indeed a fantastic year for the the financial crisis afflicting the global economy.
Bank, highlighted by record
profits, robust growth, industry By focusing on efforts to strengthen its position as a mid-
leading performance and award sized anchor financial institution, the Bank successfully
winning standards. achieved several important milestones in 2008.

• In 2008, we are pleased to report a profit before tax of
RM454 million, the highest ever achieved in the history
of the Bank.

• Our long-term credit rating was upgraded one notch in
November by Rating Agency Malaysia from A3 to A2
while our short-term rating was reaffirmed at P1. This is a
major achievement for the Bank in view of present market
uncertainties. It is our expressed goal to further improve
our financial position and achieve a double-A rating over
the medium term.

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Annual Report 2008
Letter to Shareholders

37

• Our net NPL ratio has been reduced from 7.69% at the • In our continued effort to introduce various innovative
end of 2007 to 3.22%. This is a clear testimony to our products and services to our customers, the Bank
efforts in curbing the Bank’s legacy NPL problem and successfully launched our retail internet banking portal
more importantly, our new (non-legacy) NPL level is low affinOnline.com in December 2008.
at less than 1%.
• T he Bank had also won several industry accolades.
• In April 2008 AFFIN Islamic became the first domestic In 2008, AFFINBANK was ranked among the Top 30
Islamic bank in Malaysia to enter into a Musharakah Malaysia’s Most Valuable Brands (MMVB) for the second
Agreement with a notable property developer in Penang. year running, with an estimated brand value of RM237
The Musharakah was established via a special purpose million. In 2009, we will further buttress this achievement
vehicle in which both AFFIN Islamic and the developer with an acceleration of our brand building efforts.
are joint partners. Under the agreement, the developer
will be responsible for the construction and sales of the • In May 2008, AFFIN Islamic successfully launched its
property while AFFIN Islamic will provide the financing Islamic debit MasterCard, the first in the Asia Pacific region.
requirements, featuring a combination of hybrid Islamic
financing products. Musharakah is a partnership between • AFFINBANK was recognised in the MasterCard Asia
two or more parties where each party contributes capital Pacific/Middle East and Africa Product Awards 2008
and shares the profit of the venture based on a pre-agreed for Best Debit Program for its Debit MasterCard. The
profit sharing ratio. This partnership allows us to earn AFFINBANK Debit MasterCard is the first MasterCard
blended returns where for the same amount of exposure debit card and the first debit card with Touch ‘n Go
and risk, the Bank earns both equity and debt returns, auto reload facility in the country.
while maintaining our risk position as a creditor.

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Annual Report 2008
Letter to Shareholders

38

Letter to shareholders (cont.)

Looking forward Acknowledgments
We thank our fellow Board members for their wise counsel
Moving forward, the Bank remains committed to continuously and guidance in steering AFFINBANK on a steady growth
provide quality and innovative products and services to path. We must congratulate our employees at all levels of
meet the needs and requirements of customers and clients. the Group for their dedication, hard work and teamwork,
without which we would not have recorded the highest
Although the Bank expects Year 2009 to be challenging ever pre-tax profit in 2008. Finally, our appreciation goes to
in the face of economic uncertainties, the banking sector our loyal customers and shareholders for their continuing
remains robust and we are cautiously optimistic on the support and confidence in AFFINBANK.
opportunities available.
YBhg. Gen. Tan Sri Dato’ Seri Ismail Hj. Omar (Rtd)
The Bank takes a ‘business as usual’ approach and remains
committed to the needs of its customers. Nevertheless, the Chairman
Bank will continue to be vigilant and careful with its lending
policies while at the same time, the Group continues with YBhg. Dato’ Sri Abdul Hamidy Abdul Hafiz
its strategy on sustaining business growth, improving asset
quality, enhancing operational efficiency and raising the Managing Director/CEO
quality of its human capital.

Growing a bank the size of AFFINBANK is challenging.
Nevertheless we have proven that with clear strategies,
core strengths, a balanced approach to growth, and the
benefits of good leadership, we can press on with no
compromise in quality.

affinbank
Annual Report 2008

Corporate Diary

39

corporate Diary

11 February 2008 1 April 2008

AFFIN Islamic helps build houses AFFIN Islamic and Mutiara Goodyear
for the underprivileged in Pahang embark on Malaysia’s first hybrid
Musharakah financing arrangement
AFFIN Islamic Bank (AFFIN Islamic) handed over RM500,000
in zakat payment to Kampung Aur and nearby villages to build AFFIN Islamic and Mutiara Goodyear Development Berhad
20 units of low cost houses for the hardcore poor. The handing (Mutiara Goodyear) announced that both parties have entered
over was made in a ceremony graced by YAB Dato’ Sri into Musharakah (joint-venture) financing arrangement for a
Dr. Jamaludin Jarjis, Minister of Science, Technology and land development project. The arrangement is the first in the
Innovation and Rompin Member of Parliament. En. Kamarul country to feature a combination of hybrid Islamic financing
Ariffin Mohd Jamil, AFFIN Islamic CEO presented a mock key to products based on the concept of Musharakah (joint-venture),
the Tok Empat of Kampung Aur, witnessed by representatives Murabahah (sale-based financing), Istisna’ (bridging financing)
from the nearby branches. and Musharakah Mutanaqisah (diminishing partnership). The
Musharakah is established via a registered Special Purpose
Vehicle called AFFIN-i Goodyear Sdn Bhd (AFFIN-i Goodyear)
in which AFFIN Islamic and Jurus Positif Sdn Bhd, a wholly-
owned subsidiary of Mutiara Goodyear are joint partners. For
the first project, AFFIN-i Goodyear undertook the development
of high-end residential properties on an 8.8 acre land in Bukit
Gambir, Penang. Under this joint venture, Mutiara Goodyear is
responsible for the construction and sales of the development
whilst AFFIN Islamic provides the facilities required to finance
the development.

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Annual Report 2008
Corporate Diary
40

corporate diary (cont.)

28 May 2008 29 July 2008

AFFIN Islamic first in Asia Pacific to AFFINBANK & AFFIN Islamic sponsor
introduce Islamic bank Debit MasterCard Teater Muzikal Patriot and Hari Pahlawan
campaign
AFFIN Islamic introduced Asia Pacific’s first Islamic bank Debit
MasterCard – the AFFIN Islamic Debit MasterCard. The card To show our support for the armed forces in conjunction with
brings all the functionality of a MasterCard debit card and has Hari Pahlawan, AFFINBANK and AFFIN Islamic were proud
been specifically designed for use in electronic terminals for to be the main sponsors of Teater Muzikal Patriot and Hari
increased security. Account information is imprinted so the Pahlawan campaign. Teater Muzikal Patriot was held at Istana
card cannot be used in a manual imprinter. The AFFIN Islamic Budaya from 29 July to 3 August 2008. It showcased the
Debit MasterCard card offers cardholders’ acceptance at struggles and sacrifice of a local hero during World War Two
merchant locations around the globe. It also acts as a and during the Malayan Emergency while at the same time
Bankcard which cardholders can use to withdraw cash at wooing the attention of a girl who has been promised to a
ATMs nationwide. Linked to a Savings-i or Current Account-i, wealthy man.
the card allows cardholders to conduct transactions using their
own funds rather than making purchases on credit.

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Annual Report 2008

Corporate Diary

41

4 September 2008 26 October 2008

AFFINBANK shares Raya delights AFFINBANK wins
with Armed Forces personnel MasterCard award for
its Debit Card
AFFINBANK continued its tradition by contributing cash and kind worth RM100,000 to
ensure that armed forces personnel serving overseas can share in the spirit of Ramadhan. AFFINBANK was recognised in the
AFFINBANK has steadily increased its financial support over previous years, reflecting MasterCard Asia/Pacific Middle East
its role as a model corporate citizen to military personnel. In addition to these contributions, and Africa Product Awards 2008
volunteers from AFFINCare, the charity arm of AFFINBANK, packed Hari Raya goodies for Best Debit Program for its
to ensure that Armed Forces personnel serving overseas will be able to savour them AFFINBANK Debit MasterCard.
during the festivities. The AFFINBANK Debit MasterCard
is Malaysia’s first MasterCard debit
10 October 2008 card and the first debit card with
Touch ‘n Go auto reload facility.
AFFINBANK’s financial institution rating upgraded

RAM Ratings upgraded AFFINBANK’s long-term financial institution rating, from A3 to
A2, with a stable outlook; the short-term rating has been reaffirmed at P1. The rating
upgrade reflects AFFINBANK’s healthier credit fundamentals, which have been improving
over the past 5 years. RAM Ratings has also been monitoring the Bank’s fundamental
improvements on a quarter-on-quarter basis for the last two years. Given its stringent
loan-approval policies and various monitoring measures, the rating agency believes that
AFFINBANK is now more resilient against an economic downturn.

affinbank
Annual Report 2008
Corporate Diary
42

corporate diary (cont.)

13 November 2008 25 November 2008

AFFINBANK & AFFIN Islamic target AFFINBANK ranked top 30
Malaysia’s Armed Forces in CSR initiative most valuable brands again

To honour the Malaysian armed forces as stalwarts of the AFFINBANK was recognized as among the Top 30 Malaysia’s
country’s security, AFFINBANK and AFFIN Islamic in November Most Valuable Brands in 2008 for the second year running.
jointly launched their latest Corporate Social Responsibility The Bank was ranked 23rd, two notches up from its 2007
(CSR) initiative called the Save & Donate Campaign. With this ranking. This prestigious award was conducted by Interbrand
campaign, customers contributed to the Malaysian armed and commissioned by 4As (the Association of Accredited
forces whenever they opened a savings or current account, Advertising Agents Malaysia) and The Edge. MD/CEO Dato’ Sri
or topped up their fixed deposit accounts with AFFINBANK/ Hamidy Abdul Hafiz received the award on behalf of the Bank
AFFIN Islamic. The Bank automatically made a donation to the at an award night in Petaling Jaya. Conducted for the second
Armed Forces Welfare Fund for every account opened during year running, MMVB is a brand valuation exercise that calculates
the campaign period. The Armed Forces Welfare Fund was the net present value of the earnings a brand is expected to
set up to help families of Malaysia’s armed forces personnel to generate and secure in the future for its owner.
buy stationery, school bags, uniforms and other necessities
for school children.

affinbank
Annual Report 2008

Corporate Diary

43

13 December 2008 18 December 2008

AFFINBANK cheers the little hearts AFFINBANK launches affinOnline.com,
of Banting Hospital’s Paediatric Ward a simple, convenient and safe internet
banking service for everyday customers
A group of 30 staff from AFFINBANK and AFFIN Islamic went
to visit and spend time with the children, nurses and doctors AFFINBANK launched affinOnline.com, an Internet-based
at Banting Hospital’s Paediatric Ward. It was a joyful occasion retail banking facility specifically designed to help everyday
as babies and young children, accompanied by their parents, customers do their banking transactions with the ease, safety
received presents from AFFINCare patron, YBhg Datin Sri and simplicity of point-and-click. The Bank’s Retail Internet
Mainah Abdul Karim and Chief Human Resource Officer Banking strategy is based on serving the needs of any customer
Richard Kong. Each gift pack consisted of a school backpack, who may not have the time to go to banks. With affinOnline.com,
stationery, coin-box, notepad and goodies like sweets, toys, customers will have access to a variety of transaction options.
balloons and healthy snacks. Many staff also contributed affinOnline.com was designed on a strategy based on three
generously to help purchase the gifts for the children. basic premises – easy to use, convenient and with the highest
standards of security.

“G rowing a bank the size of AFFINBANK is challenging.
Nevertheless we have proven that with clear strategies,
core strengths, a balanced approach to growth, and
the benefits of good leadership, we can press on with
no compromise in quality.”

YBhg. Gen Tan Sri Dato’ Seri Ismail Hj. Omar (Rtd)
Chairman



affinbank
Annual Report 2008
Network of Branches
46

network of branches

Wilayah Persekutuan Jalan Ipoh Taman Maluri
468-11 & 468-11B, Batu 3 250 & 252, Jalan Mahkota
HEAD OFFICE Jalan Ipoh, 51200 Kuala Lumpur Taman Maluri, 55100 Kuala Lumpur
17th Floor, Menara AFFIN Tel : 03-4042 5554 Tel : 03-9282 7250
80, Jalan Raja Chulan Fax : 03-4042 4912 Direct Line : 0 3-9282 5249 / 9285 1084
50200 Kuala Lumpur Fax : 03-9283 4380
Tel : 03-2055 9000 LTAT
Fax : 03-2026 1415 Ground Floor, Bangunan LTAT Taman Midah
Jalan Bukit Bintang 38 & 40, Jalan Midah 1
Bangsar 55100 Kuala Lumpur Taman Midah, Cheras
No 4 & 6, Jalan Telawi 3 Tel : 03-2142 6311 / 6173 / 6681 56000 Kuala Lumpur
Bangsar Baru, 59100 Kuala Lumpur Fax : 03-2148 0586 Tel : 03-9130 0366 / 0194 / 0215
Tel : 03-2283 5025 / 5026 / 5027 Fax : 03-9131 7024
Fax : 03-2283 5028 Putrajaya
Jabatan Akauntan Negara Taman Tun Dr. Ismail
Bangunan Getah Asli Kompleks Kementerian Kewangan 47 & 49, Jalan Tun Mohd Fuad 3
Tingkat Bawah, 148, Jalan Ampang No 1, Persiaran Perdana Taman Tun Dr. Ismail
40450 Kuala Lumpur Presint 2, 62594 Putrajaya 60000 Kuala Lumpur
Tel : 03-2162 8770 Wilayah Persekutuan Tel : 03-7727 9080 / 9082
Fax : 03-2162 8587 Direct Line : 0 3-8888 4463 Fax : 03-7727 9543
Tel : 03-8888 3814 / 8889 1784 /
Batu Cantonment Wangsa Maju
No 840 & 842, Batu 4 3/4 8889 2927 No 2 & 4, Jalan 1/27F
Jalan Ipoh, 51200 Kuala Lumpur Fax : 03-8889 2082 Kuala Lumpur Sub-Urban Centre
Tel : 03-6258 7370 / 7690 Wangsa Maju, 53300 Kuala Lumpur
Fax : 03-6251 8214 Selayang Tel : 03-4143 2814 / 2816
81-85, Jalan 2/3A Direct Line : 03-4143 3005
Central Pusat Bandar Utara, KM 12, Jalan Ipoh Fax : 03-4143 3095
Ground & Mezzanine Floor 68100 Batu Caves, Kuala Lumpur
Menara AFFIN, 80, Jalan Raja Chulan Tel : 03-6137 2053 / 7122 Wisma Pertahanan
P.O.Box 12744, 50788 Kuala Lumpur Direct Line : 03-6136 2106 G.05, Tingkat Bawah, Wisma Pertahanan
Tel : 03-2055 2222 (30 lines) Fax : 03-6138 7122 Kementerian Pertahanan Malaysia
Fax : 03-2070 7592 Jalan Padang Tembak
Seri Petaling 50634 Kuala Lumpur
Jalan Bunus 10-12 Jalan Raden Tengah Tel : 03-2698 7912 / 2691 5649
133, Jalan Bunus, Off Jalan Masjid India Bandar Baru Seri Petaling Fax : 03-2698 6071
50100 Kuala Lumpur 57000 Kuala Lumpur
Tel : 03-2693 4686 Tel : 03-9058 5600 Labuan Offshore
Fax : 03-2691 3207 Fax : 03-9058 8513 Unit 3 (J), Level 3, Main Office Tower
Financial Park Labuan, Jalan Merdeka
Setapak 87000 Federal Territory Labuan
159 & 161, Jalan Genting Kelang Tel : 087-411 931 / 960
P.O.Box 202, 53300 Setapak Fax : 087-411 973
Kuala Lumpur
Tel : 03-4023 0455 / 0552
Fax : 03-4021 3921

affinbank
Annual Report 2008
Network of Branches

47

selangor Klang Utara Sea Park
No 29 & 31, Jalan Tiara 3 20-22, Jalan 21/12, Sea Park
Ampang Jaya Bandar Baru Klang 46300 Petaling Jaya, Selangor
No 11 & 11A, Jalan Mamanda 7/1 41150 Klang, Selangor Tel : 03-7875 6514 / 6255 / 6461
Ampang Point Tel : 0 3-3342 1585 / 1597 / Fax : 03-7876 6020
68000 Ampang, Selangor
Tel : 03-4257 6802 / 6804 1602 / 1669 Seri Kembangan
Fax : 03-4257 8636 Fax : 03-3342 1719 36, Jalan PSK 3
Pusat Perdagangan Seri Kembangan
Ampang New Village Kompleks PKNS 43300 Seri Kembangan, Selangor
49-G, Jalan Wawasan Ampang 2/1 Lot G17-20, Ground Floor Tel : 03-8945 6429 / 8943 / 6488
Bandar Baru Ampang Kompleks PKNS Fax : 03-8945 6442 / 8943 5306
68000 Ampang, Selangor 40000 Shah Alam, Selangor
Tel : 03-4296 2210 / 2311 Tel : 03-5510 5200 / 6990 / 0523 Subang Jaya
Fax : 03-4296 2206 Fax : 03-5510 8200 7 & 9, Jalan SS 15/8A
47500 Petaling Jaya, Selangor
Kajang PJ State Tel : 03-5634 8043 / 8045 / 8049
2 & 3, Jalan Saga No 38 & 40, Jalan Yong Shook Lin Fax : 03-5634 8040
Taman Sri Saga 46050 Petaling Jaya, Selangor
Off Jalan Sg. Chua Tel : 0 3-7955 0032 / The Curve, Mutiara Damansara
43000 Kajang Selangor Lot G32 & 126, Ground & First Floor
Tel : 03-8737 7435 / 7436 / 7437 7956 0022 (HPC) The Curve Shopping Complex
Fax : 03-8737 7433 Fax : 0 3-7954 0012 / Jalan PJU 7/8
Mutiara Damansara
Kelana Jaya 7956 0022 (HPC) 47820 Petaling Jaya, Selangor
101, Block C, Menara Glomac Tel : 03-7726 7258 / 7728 7035
Kelana Business Centre 97 Port Klang Fax : 03-7727 8912
Jalan SS7/2, 47301 Kelana Jaya No 1, Jalan Berangan
Petaling Jaya, Selangor 42000 Port Klang, Selangor UiTM Institut Teknologi MARA
Tel : 03-7625 2111 / 7806 1749 Tel : 03-3168 8366 / 3167 7346 Tingkat 2, Menara UiTM
Fax : 03-7806 1759 Fax : 03-3167 2784 / 6432 40450 Shah Alam, Selangor
Direct Line : 0 3-5510 8244
Kepong Puchong Tel : 03-5519 2377 / 1160
6, Jalan 54, Desa Jaya No 16 & 18, Jalan Bandar 3 Fax : 03-5510 5580
52100 Kepong, Selangor Pusat Bandar Puchong
Tel : 03-6276 4942 / 4943 / 4946 47100 Puchong, Selangor USJ Taipan
Fax : 03-6276 6375 Tel : 0 3-5882 2880 / 2810 / 8A & 8B, Jalan USJ 10/1J
47610 UEP Subang Jaya
Kinrara 2816 / 2817 Petaling Jaya, Selangor
No 1, Jalan TK1/11A, Taman Kinrara Fax : 03-5882 2881 Tel : 03-8023 7271
Section 1, Batu 7 1/2, Jalan Puchong Fax : 03-8023 9161
47100 Puchong, Selangor Rawang
Tel : 03-8070 3403 No. 33G & 35G, Jalan 1B
Direct Line : 03-8075 5682 Forturn Avenue
Fax : 03-8075 8159 48000 Rawang, Selangor
Tel : 0 3-6091 3322 / 3311 /

2394 / 2396
Fax : 03-6091 3344

affinbank
Annual Report 2008
Network of Branches
48

network of branches (cont.)

johor bahru Muar Sungai Petani
1, Jalan Petrie 23E & 23F, Jalan Kampung Baru
Ayer Hitam 84000 Muar, Johor 08000 Sungai Petani, Kedah
No. 765, Jalan Batu Pahat Tel : 06-953 2384 / 3753 / 9795 Tel : 04-421 1808 / 422 0831 /
86100 Ayer Hitam, Johor Fax : 06-953 3489 423 0684 / 423 0680
Tel : 07-758 1100 / 1616 Fax : 04-422 6675
Fax : 07-758 1001 Permas Jaya
23 & 25, Jalan Permas 10/2 Kelantan
Batu Pahat Bandar Baru Permas Jaya
3 & 4, Jalan Merah 81750 Johor Bahru, Johor Jeli
Taman Bukit Pasir Tel : 07-386 3703 / 3857 / 3904 No. A1 & A2, Blok A
83000 Batu Pahat, Johor Fax : 07-386 5061 Bandar Baru Bukit Bunga
Tel : 07-433 4210 / 4213 17700 Bukit Bunga
Fax : 07-433 3246 Segamat Tanah Merah, Kelantan
No. 1, Ground Floor Tel : 09-946 8955 / 8952
Johor Bahru Jalan Nagasari 23 Fax : 09-946 8954
M1-23 & M2-29 Bandar Segamat Baru
Johor Bahru City Square 85000 Segamat, Johor Kota Bharu
106-108, Jalan Wong Ah Fook Tel : 07-943 1378 / 1428 / 1432 13788H & 3788I
80000 Johor Bahru, Johor Fax : 07-943 1373 Seksyen 13, Jalan Sultan Ibrahim
Tel : 07-221 2403 / 2419 / 2440 / 2446 15050 Kota Bharu, Kelantan
Fax : 07-221 2462 Tampoi Tel : 09-744 5688 / 5582 /
49 & 51, Jalan Sri Perkasa 2/1
Johor Jaya Taman Tampoi Utama 743 8653
130 & 132, Jalan Ros Merah 2/17 81200 Tampoi, Johor Fax : 09-744 2202
Taman Johor Jaya Tel : 07-241 4946 / 4948 / 4951
81100 Johor Bahru, Johor Fax : 07-241 4953 Melaka
Tel : 07-351 8602 / 8603 / 8596
Direct Line : 07-355 5115 / 351 8605 Kedah Bukit Baru
Fax : 07-351 4122 No 7 & 8, Jalan DR1
Alor Star Delima Point, Taman Delima Raya
Kluang Bangunan Yasmin 75150 Melaka
503, Jalan Mersing 1 & 2, Jalan Teluk Wanjah Tel : 06-232 1386 / 1390 / 1395
86000 Kluang, Johor 05000 Alor Star, Kedah Fax : 06-232 1579
Tel : 07-772 4736 / 4750 Tel : 04-731 0477 / 0396 / 734 1735
Direct Line : 07-774 1359 Fax : 04-731 5796 Melaka Raya
Fax : 07-772 4486 200 & 201, Taman Melaka Raya
Langkawi Off Jalan Parameswara
Kulai 149-151, Persiaran Bunga Raya 75000 Melaka
13 & 14, Jalan Raya Langkawi Mall, 07000 Kuah Tel : 06-283 5500 / 5501 / 5502
Taman Sri Kulai Baru, Batu 21 Langkawi, Kedah Fax : 06-284 6618
81000 Kulai, Johor Tel : 04-966 4426 / 4427 / 4510
Tel : 07-663 9799 / 9802 / 9803 Fax : 04-966 4717
Fax : 07-663 9800