KENANGA ANNUAL REPORT 2019

105 DIRECTORS’ REPORT KENANGA GROUP EMPLOYEES’ SHARE SCHEME (“ESS” OR “SCHEME”) The Kenanga Group ESS is governed by the by-laws approved by the shareholders of the Bank at an Extraordinary General Meeting held on 25 May 2017. The ESS was implemented on 21 September 2017. It is valid for a period of five (5) years from its commencement date, and may be extended for a further period of five (5) years and is administered by the ESS Committee. The aggregate maximum number of the Bank shares which may be made available under the Scheme shall not in aggregate exceed 10% of the issued share capital of the Bank (excluding treasury shares) at any point in time during the duration of the Scheme. Other principal features of the ESS are as follows: (i) The employees eligible to participate in the ESS must be at least eighteen (18) years of age on the Award date and are employed by, and are on the payroll of the Kenanga Group and are confirmed in service. The ESS applies to the Bank and its non-dormant subsidiary companies. (ii) The entitlement under the ESS for the Executive Directors is subject to the approval of the shareholders in a general meeting and is not prohibited or disallowed by the relevant authorities or laws from participation in the Scheme. The ESS encompasses two (2) primary schemes in the form of Employees’ Share Option Scheme (“ESOS”) and Employee Share Grant Plan (“ESGP”). The actual allocation of share options to senior management of the Group is 38.8% as at 31 December 2019. More details of the ESS are as disclosed in Note 55 to the financial statements. ISSUANCE OF SHARES The Bank had not issued any new shares during the year. BUSINESS REVIEW FOR 2019 The profit before tax (“PBT”) of the Group and the Bank for the financial year ended 31 December 2019 (“FYE19”) are RM43.0 million and RM40.4 million, compared to PBT of RM28.9 million and RM38.6 million respectively in the previous financial year (“FYE18”). The performance of the Group’s respective business segments are analysed below: STOCKBROKING Stockbroking division registered PBT of RM9.5 million for FYE19 (FYE18: loss before tax (“LBT”) of RM13.5 million) mainly due to reversal of provision of impairment negated by lower brokerage income and interest income in 2019.