KENANGA ANNUAL REPORT 2020

110 5 1 2 3 4 6 7 FINANCIAL STATEMENTS DIRECTORS ’ REPORT 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” or “Kenanga Group”) for the financial year ended 31 December 2020. 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 13 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 89,499 78,143 Share of results in associates and a joint venture 12,786 - Profit for the financial year 102,285 78,143 Attributable to: Equity holders of the Bank 102,082 78,143 Non-controlling interests 203 - 102,285 78,143 There were no material transfers to or from reserves or provisions during the financial year other than those that have been disclosed in the statements of profit or loss and other comprehensive income and the statements of changes in equity. 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. DIVIDENDS During the financial year, an interim single tier dividend of 3.25 sen per ordinary share on 698,687,499 ordinary share in respect of the financial year ended 31 December 2019, which amounted to RM22,707,356 was paid on 15 April 2020. 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 is administered by the ESS Committee. The ESS has been extended for another five (5) years from 21 September 2022 to 20 September 2027 in accordance with the provisions of the By-Laws of the ESS. 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.