KENANGA ANNUAL REPORT 2017

OUTLOOK AND PROSPECTS FOR 2018 (CONT’D.) Given that the U.S. Fed has signalled intentions to have at least three (3) more rate increases in 2018, this would likely trigger a risk of more global capital shifting out of emerging markets and back towards safe havens such as the U.S. A growing chorus of central banks are also raising or signalling intentions to raise interest rates. BNM is no exception as it had in January 2018 expectedly raised the Overnight Policy Rate by twenty-five (25) basis points to 3.25% from 3.00% given the strength of the global and domestic macroeconomic conditions. We are cautiously optimistic of a better performance in 2018, notwithstanding that we expect the Malaysian equities market to be less active after the anticipated general election. We will continue to strive to diversify our income to reduce our reliance on brokerage fees by increasing interest income as well as to build on our AUM growth momentum from our Investment and Wealth Management business for management fee income. INDEMNIFICATION OF DIRECTORS The Bank has maintained a Directors and Officers Liability Insurance on a group basis up to the aggregate limit of RM30 million against any legal liability incurred by the Directors and Officers in the discharge of their duties while holding office for the Group. The Directors and Officers shall not be indemnified by such insurance for any gross negligence, fraud, intentional breach of law or breach of trust proven against them. DIRECTORS The names of the Directors of the Bank in office since the date of the last report and at the date of this report are: Izlan Bin Izhab (Independent Non-Executive Director/Chairman) Datuk Syed Ahmad Alwee Alsree (Non-Independent Non-Executive Director/Deputy Chairman) Dato’ Richard Alexander John Curtis (Non-Independent Non-Executive Director) Luigi Fortunato Ghirardello* (Non-Independent Non-Executive Director) Ismail Harith Merican (Non-Independent Non-Executive Director) Luk Wai Hong, William (Independent Non-Executive Director) Jeremy Bin Nasrulhaq (appointed on 1 June 2017) (Independent Non-Executive Director) Norazian Binti Ahmad Tajuddin (Independent Non-Executive Director) (appointed on 15 December 2017) Kanagaraj Lorenz (Independent Non-Executive Director) (appointed on 26 December 2017) Datuk Kevin How Kow (resigned on 31 May 2017) (Non-Independent Non-Executive Director) * On 29 July 2017, Luigi Fortunato Ghirardello was re-designated from Independent Non-Executive Director to Non-Independent Non-Executive Director of KIBB. The names of the Directors who served on the respective Boards of the Bank’s subsidiaries since the beginning of the current financial year to the date of this report are disclosed in Note 54 to the financial statements. DIRECTORS’ BENEFITS Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the Bank was a party, whereby the Directors might acquire benefits by means of the acquisition of shares in or debentures of the Bank or any other body corporate. Kenanga Investment Bank Berhad 78 directors’ report