KENANGA ANNUAL REPORT 2017

The Directors have pleasure in presenting their report together with the audited financial statements of Kenanga Investment Bank Berhad (“the Bank” or “KIBB”) and its subsidiaries (“the Group”) for the financial year ended 31 December 2017. PRINCIPAL ACTIVITIES The Bank is principally engaged in the investment banking business, provision of stockbroking and related financial services. The principal activities of the subsidiaries are described in Note 14 to the financial statements. There were no significant changes in the nature of the principal activities during the financial year. RESULTS Group RM’000 Bank RM’000 Profit after taxation and zakat 37,522 45,381 Share of results in associates and joint venture (13,356) – Profit for the financial year 24,166 45,381 Attributable to: Equity holders of the Bank 24,188 45,381 Non-controlling interests (22) – Profit for the financial year 24,166 45,381 There were no material transfers to or from reserves or provisions during the financial year, other than those arising from significant events as disclosed in Note 28 to the financial statements. In the opinion of the Directors, the results of the operations of the Group and of the Bank during the financial year were not substantially affected by any item, transaction or event of a material and unusual nature, other than the effects from the significant events as disclosed in Note 53 to the financial statements. DIVIDENDS During the financial year, a final single tier dividend of 2.25 sen per ordinary share on 722,546,999 ordinary shares in respect of the financial year ended 31 December 2016, which amounted to RM16,257,320 was paid on 9 June 2017. The Directors recommend a final dividend in respect of the current financial year ended 31 December 2017 of 3.00 sen on 722,546,999 ordinary shares, amounting to a dividend payable of RM21,676,410 to be proposed for the shareholders’ approval at the forthcoming Annual General Meeting. The financial statements for the current financial year do not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an appropriation of retained earnings in the financial year ending 31 December 2018. ISSUANCE OF SHARES The Bank had not issued any new shares during the financial year. Kenanga Investment Bank Berhad 76 DIRECTORS’ REPORT