09 How We Are Governed Financial Statements Shareholders’ Information Additional Information For the Financial Year Ended 31 December 2021 (“FY2021”), Kenanga Group registered a Profit Before Tax (“PBT”) of RM148.2 million, which exceeded our record achievement of RM134.7 million in 2020, while Profit After Tax stood at RM118.8 million, up 16.2% from the year before. This outstanding performance was primarily attributable to the strong performance in our equity broking, asset and wealth management, as well as, private equity investment businesses. The Group rose above the challenges of this global crisis to yield a second bumper year, which not only testifies to its commitment towards being adaptable, resourceful and resilient, but also a validation of the strong leadership and great courage demonstrated at every level of the organisation. SHAREHOLDER’S VALUE The Board of Directors is pleased to declare an interim dividend of 10.50 sen per share, the highest dividend pay-out since being listed on Bursa Malaysia Securities Berhad (“Bursa Securities”) in 1996, amounting to RM77.1 million in dividends payable for FY2021. ETHICS AND GOVERNANCE One of the key milestones of the year was the successful implementation of the third and final phase of the Group’s Ethics Blueprint. This multi-year programme has culminated in the implementation of a clear Ethics Governance Structure throughout the Group, crystallising a culture of doing the right thing and the fundamental philosophy of achieving success with integrity. During the year, we held our fifth annual Fraud Awareness Week (“FAW”), which was the centrepiece of a month-long fraud awareness campaign that united over 500 participants in a move to promote the fight against fraud, bribery, and corruption. Themed Reinforcing Ethical Values through Regulatory Dynamism, delegates of public listed companies, professional bodies, as well as, representatives from the Malaysian AntiCorruption Commission, Bursa Malaysia Berhad, the Securities Commission Malaysia, Bank Negara Malaysia, and Employees Provident Fund, were engaged in interactive games, quizzes and seminars designed to enhance awareness on trends and practices surrounding fraud prevention and detection. We are pleased that we have managed to expand an internal campaign which we started five (5) years ago, into an industry call to action to combat fraud, and at the same time, respond to the United Nations Global Compact’s 10th Principle which emphasises the need for businesses to work against corruption in all its forms. We recognise that to truly move the needle and unite on the fight against fraud requires industry players, regulators and customers to band together. There is so much more to be done and we are committed to working together with all stakeholders to drive a conscious process that is solutions-focused, to enable us to win the war against financial crime and promote a culture that encourages ethical conduct. A full account of our efforts can be found in the Ethics and Compliance Statement on pages of 108 to 118 of this Annual Report. CORPORATE GOVERNANCE Raising the bar for good corporate governance has always been a priority for Kenanga Group. Throughout the years, the Group strives to align itself with locally, as well as globally recognised best practices and standards towards the internalisation of a transparent, ethical and compliant culture within the Group. During the year, the Board of Directors identified action plans to embed into Kenanga Group’s governance framework, the best corporate governance practices in relation to board leadership and effectiveness, audit and risk management, integrity in corporate reporting, as well as meaningful relationship with stakeholders, aligning itself with the revised Malaysian Code on Corporate Governance issued by the Securities Commission Malaysia in April 2021. In strengthening the Board of Directors’ oversight on Kenanga Group’s corporate governance, the Board of Directors had expanded the scope of its Group Nomination & Remuneration Committee to cover the stewardship of the Group’s governance structure, framework and policies. To reflect this enhanced roles and responsibilities, the committee was re-designated as Group Governance, Nomination & Compensation Committee. The adoption and implementation of corporate governance policies and practices as detailed in the Corporate Governance Report for 2021, which is available on Kenanga’s website, demonstrates the Board of Directors and senior management’s seriousness in building the Group’s long-term resilience to meet the challenges in a fast-evolving business landscape.
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