Big or small, well help them all

When the plight of homeless elephants fell on our ears and how they are being rescued by the Kuala Gandah National Elephant Orphanage Sanctuary, we knew we just had to help. Thats because theres nothing too big or too small that we can do to make a difference in this world.

As the countrys largest Islamic cooperative bank, Bank Rakyat has received numerous awards and accolades for its great achievements and contributions in the Islamic banking sector.

ABout us

Established in 1954, Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) is currently the largest Islamic cooperative bank in Malaysia with total assets amounting RM61.91 billion for financial year ended 31 December 2010. In 2003, the Board of Directors undertook a historic decision to announce the replacement of Bank Rakyats Conventional Banking System to a system based fully on Syariah principles. Now all Bank Rakyat branches offer Syariah based banking products to the public. Bank Rakyat had consecutively recorded rising profits before tax and zakat since then, the highest being RM1.72 billion for financial year ended 31 December 2010. The various awards and accolades achieved in the past year, whether in Malaysia or the International arena are testaments to the Banks excellence & eminences. Bank Rakyat is expanding its product and customer facilities continuously to provide greater diversity to its customers.

A wide range of banking products and services are being offered which includes consumer financing, commercial financing and deposit as well as investment products to cater for various segments of market. Successful introduction of quality, diversified and innovative product meeting the needs of a wide spectrum of customers, enhanced and efficient delivery channels as well as friendly corporate image disposition have placed Bank Rakyat on the right footing to become Your Choice Bank. An entity under the purview of the Ministry of Domestic Trade, Cooperative and Consumerism, Bank Rakyat is committed to support the Ministrys mission to strengthen the cooperative sector as the nations economic growth thrust. To date, Bank Rakyat has 127 branches with more than 400 automated teller machines (ATMs) and cash deposit machines (CDMs) as well as 23 Ar-Rahnu Xchange nationwide. Bank Rakyat also operates a call centre, tele-Rakyat: 1-300-881BANK(12265) and irakyat.com.my internet banking. Bank Rakyats official website is www.bankrakyat.com.my. Please visit us at Facebook, Bank Rakyat, Bank Pilihan Anda.

22

2010

Bank Rakyat Annual Report

PRoduCts & CustoMER FACIlItIEs

savings & Investment Savings Account-i Tawfir Savings Account-i Nuri General Investment Account-i Qiradh Sijil Pembiayaan Bank Rakyat (SPBR)

Financing for sMI and Cooperative Entrepreneurs Kad CO-OP Micro Financing-i (MUsK) Contract Financing-i Tijari Term Financing-i Bridging Financing-i Property Financing-i Hire Purchase Ar-Rahnu Xchange Bank Rakyat Service Agent Rakan Koop Business Financing-i Belia Niaga Scheme Revolving Credit Facility-i Tarkhis (SELAWAT) Sistem Autopay Rural Development Financing-i Scheme (SPED) Kop-Autopay Service Scheme Rakyat Franchise Financing-i Scheme Credit Guarantee Corporation Scheme (CGC) SME Assistance Guarantee Scheme (SAGS)

Consumer Financing Personal Financing-i 1Aslah Home Financing-i Manzili Car Financing-i AnNaqlu Education Financing-i Falah Pawn Broking-i Ar-Rahnu/Az-Zahab/GENiUS Contract Financing-i Tijari Land Financing-i Ardhi Fixed Asset Financing-i Al-Mal Share Financing-i Collateral Financing-i (Unit Trust Investment Certificate) Credit Card-i Debit Card-i Pinjaman Transformasi Kedai Runcit (TUKAR-i) Pinjaman Transformasi Bengkel Automotif (ATOM-i)

Customer Facilities i-Rakyat Internet Banking tele-Rakyat Call Centre e-Rakyat Electronic Banking Centre Tabung Haji Services Interbank Giro (IBG) Interbank Fund Transfer (IBFT) Remittance (Western Union) Bankcard/MEPS Regional MEPS e-Debit MEPS Collection Agent Utility (Water/Electricity Bill) Assessment Tax/Quit Rent Telecommunication/Broadcasting Zakat Deposits/Savings Airline Company Services Consumer/Loan Pension

Commercial Financing Contract Financing-i Share Financing-i Bridging Financing-i Property Financing-i Term Financing-i Hire Purchase

Financial Planning services Investment Bancatakaful Wealth Distribution

Bank Rakyat Annual Report

2010

23

MIlEstonEs

1954-1989
Eleven Union Banks merged on 28 September to become Bank Agong Kampong Bekerjasama-sama Persekutuan Tanah Melayu Dengan Tanggongan Berhad or Bank Agong and was registered under the Cooperative Ordinance 1948. The head office was in Bukit Mertajam.

1954

The bank moves its head office to Kuala Lumpur. Its capital also was raised from RM2 million to RM20 million.

1964

As the national economy continues to grow, the Banks name was changed to Bank Kerjasama Rakyat Malaysia Berhad or Bank Rakyat. Banks By-Laws were also amended to allow the Bank to venture into other business through its subsidiaries which include United Manufacturers Sdn. Bhd., Asean Chemical Fertilizers Sdn. Bhd., Pulp and Paper Industries Sdn. Bhd., Angkasaraya Development Sdn. Bhd., Aman Properties Sdn. Bhd. and Rakyat Corporation Sdn. Bhd.

1973

1978

The Bank Kerjasama Rakyat Malaysia Berhad Act (Special Provision) 1978 was enacted to enable the government to oversee and control the management and administration of the Bank. A loan of RM115 million was provided by the government to turn around the Bank. The Act also allows the Bank to give loans to non-members and companies. It further places the Bank under the supervision of the ministry in charge of overseeing the cooperatives sector.

1967

To reflect its identity as a cooperative bank and also to widen its scope of activity, the name was again changed, to be known as Bank Kerjasama Malaysia Berhad or in short, Bank Kerjasama. Memberships were opened to individuals and cooperatives. Banks goals and functions were expanded to allow the bank to provide financing to these categories.

Bangunan Angkasaraya on Jalan Ampang was built by Angkasaraya Development Sdn. Bhd., a modern building that symbolises the rapid progress and growth experienced by Bank Rakyat. Change to the By-Laws allows the Banks share capital to be raised to RM50 million.

1974

The head office moves from Jalan Ipoh to a 22-storey building owned by the Bank at Jalan Tangsi, Kuala Lumpur. The head office remains here until today.

1979

1989

As a strategy to widen its operation channel, the Banks first mini-branch was opened at Bandar Tun Razak, Kuala Lumpur.

24

2010

Bank Rakyat Annual Report

MIlEstonEs

1993-2009
1993
The Bank makes a landmark decision by launching the Syariah Banking System at its branches in Alor Star, Jalan Ipoh, Kota Bharu and Sungai Besar, making it the first local bank to switch course from a conventional banking system to a Syariah compliant system. Bank Islam Malaysia Berhad was appointed as the consultant to implement the system.

1999

Bank Rakyat increased its Authorised Share Capital to RM1 billion. The Integrated Retail Banking System was introduced to strengthen Banks competitiveness. Another milestone was achieved when all 80 branches became fully Syariah compliant.

Banks Annual General Meeting was reconvened after a lapse of 16 years. The Bank operates as a fully Syariah compliant Bank after successfully converted 1.1% of its conventional assets balance to Syariah compliant assets.

2002

2000

1994

Bank Rakyat becomes the first local bank to have a fully Islamic banking branch in Jertih. Also introduced were the ATMs while the share capital was doubled to RM100 million. An amendment to the Cooperatives Act 1993 sees the opening of Kota Kinabalu branch. The amendment allows cooperatives to operate in Sabah and Sarawak. Syariah Advisory Council was established to ensure that our banking operations adhere to Islamic teachings, principles and concepts.

The first Ar-Rahnu outlet was launched in Kota Bharu to mark the start of the Banks involvement in micro-credit activities.

2003

2001

The Annual General Meeting approves a resolution to double the Authorised Share Capital to RM2 billion. Another development was the introduction of the first e-Rakyat, the Electronic Banking Centre, at Jalan Tangsi branch.

This year sees the introduction of a new logo with new corporate colour, off premise ATMs and the bank succeeding in settling its loan with the government. A significant shift took place when the Bank was placed under the Development Financial Institutions Act 2002, which in turn placed the Bank under direct control of Bank Negara Malaysia.

2004

The Bank was placed under the jurisdiction of the Ministry of Entrepreneur and Cooperative Development. Banks participation in the Malaysian Electronic Payment System (MEPS) makes Bank Rakyat the first non-commercial bank to be part of the system.

Bank Rakyat Annual Report

2010

25

2006

tele-Rakyat, the Banks call centre, was introduced. Also introduced was the Ar-Rahnu Xchange, the Banks first Islamic pawnshop franchise. The first outlet is in Sentul, Kuala Lumpur.

2007

The introduction of i-Rakyat, an online banking facility, is yet another service to benefit customers. Bank Rakyats Ar-Rahnu was further expanded through the opening of Ar-Rahnu Xchange premis at Klang, Selangor. It is operated by Koperasi Pembangunan Pulau Lumut Berhad (KPPLB) on franchise system.

For the first time profit before tax and zakat crosses the RM1 billion mark. Card Credit-i Bank Rakyat was launched and Tabung Haji services was offered to the customer at Bank Rakyat branches, ATMs and CDMs. Memorandum of Understanding with MobilityOne Sdn. Bhd. allows customers to reload their mobile phone pre-paid via ATMs and i-Rakyat. The first livery advertisement on the external body of Air Asia aircraft further strengthens Banks corporate branding. The Bank Rakyat Foundation was launched with the aim of providing financial assistance and consequently improve the education standards of Malaysians regardless of race.

2008

Launch of Bank Rakyat Twin Towers project off Jalan Travers. The project is estimated to cost RM460 million. The Bank was placed under the Ministry of Domestic Trade, Cooperatives and Consumerism.

2009

26

2010

Bank Rakyat Annual Report

CustoMER CHARtER

We are committed to provide excellent, efficient, effective and friendly services to our clients.

transactions 1. Complete Application Processing a. b. c. 2. 3. 4. Personal Financing Other Financing Corporate Financing

duration

<7 days <14 days <2 months <30 minutes <25 minutes

Gold Pawn (Ar-Rahnu) Processing Account Opening Processing Withdrawal Processing Through a. b. ATMs Counters

<1 minute <5 minutes

5.

Public Complaints Handling a. b. Record of Acceptance Settlements <14 days <30 days

Bank Rakyat Annual Report

2010

27

MICRo FInAnCIng CHARtER

We are committed to provide excellent, efficient, effective and friendly services to our clients.

simple
~ For micro entrepreneurs ~ No collaterals or securities ~ Simple application forms ~ Savings account at Bank Rakyat ~ Minimum documents

Fast
~ Approvals within 10 working days

Convenient
~ Transparent terms ~ Low installments ~ Payable at: Branches ATM/CDM Deductible from savings account

28

2010

Bank Rakyat Annual Report

2010 MEdIA HIgHlIgHts

Bank Rakyat Annual Report

2010

29

30

2010

Bank Rakyat Annual Report

2010 CAlEndAR oF EvEnts

18 January

27 January

18 January

Bank Rakyat Media Appreciation Night was held in Kuala Lumpur as an appreciation for the support given to Bank Rakyat. In attendance was Dato Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism.

Study tour by officers from Bank Islam Brunei to the Credit Card Department to foster closer ties as well as opportunities for future collaboration.

28 January

Official visit by Dato Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism to view the progress of the Bank Rakyat Twin Towers project, another landmark of Bank Rakyats success in Kuala Lumpur.
4 February

4 February

5 February

Bank Rakyat continues to progress in Selangor with the opening of the second branch in Section 23, Shah Alam, its 123rd branch in the country.

Business Action Plan Meeting 2010 in Kuala Lumpur has brought all Bank Rakyat managers to move towards achieving greater success.
18 February

9 February

Relationships with institution of higher learning from Indonesia established through the visit of Sekolah Tinggi Ekonomi Islam Tazkia from Indonesia to Bank Rakyats Head Office.

Visit by the students of the International Islamic University Malaysia to Bank Rakyat aimed at learning more about the achievement of the countrys biggest cooperative bank.

5 February

19 February

24 February

19 February

Announcement of Financial Performance of Bank Rakyat and Dividend for the year ended 31 December 2009.

24 February

Bank Rakyat opened its 124th branch in Tanjung Karang, Selangor bringing the total of branches in the state to 22.

Bank Rakyat Annual Report

2010

31

15 March 12 March

Bank Rakyat enhanced cooperation with A N G K A S A t h r o u g h t h e s i g n i n g o f t h e Memorandum of Understanding for the MultiPurpose Card (CO-OP Card).
15 March

27 March

Bank Rakyat launched Lembaga Tabung Haji Uniteller Service Counter which enable customers to conduct various transactions such as registration of pilgrimage, checking balances, withdrawal, depositing and transferring money. Alternatively, the transactions can be done at the ATM/CDM.

27 March The childrens playground sponsored by Bank Rakyat was inaugurated at Menara Alor Star, Alor Star, Kedah in conjunction with Bank Rakyats Nuri Club Third Anniversary celebration.

1 April Bank Rakyat held a press conference to announce the Bank Rakyat Carnival 2010, which has entered its third year. It allows the bank to strengthen its ties with the local community. 3 April Bank Rakyat Annual General Meeting 2010 was held at the Putra World Trade Centre, Kuala Lumpur. Simultaneously a book entitled Membina Kegemilangan, a recorded history of the Banks development since its inception on 28 September 1954 to present was launched by Dato Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism. 6 April Bank Rakyat signed a Memorandum of Understanding with Berita Harian for the Program Score A, an educational programme that benefits the children of the Banks members and members of the school cooperatives in preparation for the UPSR, PMR and SPM. 9-11 April Bank Rakyat joined Smart Kids Fair 2010 in Kuala Lumpur to reach out childrens from all walks of life.
6 April

17-18 April Bank Rakyat Carnival 2010 kicks off in Muar, Johor and participation small and medium entrepreneurs which showcase their products and services. The programme aims at strengthening the ties between the Bank and the local community through a various activities.

32

2010

Bank Rakyat Annual Report

2010 CAlEndAR oF EvEnts

23 May

31 May

23 May Efforts to foster the relationship between Bank Rakyat and medias materialised through Bank Rakyat-BERNAMA Media Bowling 2010.

31 May Bank Rakyat shared its experiences and knowledge with delegation from Uzbekistan in the field of Micro Financing-i.

10 July

5 June

15 July

5 June Bank Rakyats commitment in the preservation of nature is further affirmed through Underwater Exploration Camp 2010 in Pulau Redang, Terengganu organised for members of Kelab Nuri. 8 June Bank Rakyat honoured its corporate clients at a cocktail at The Royale Chulan Hotel, Kuala Lumpur. 11-12 June Bank Rakyat 2010 Carnival continued at the Darul Aman Stadium, Alor Setar, Kedah.

4 July Bank Rakyat actively participate in the Ministry of Domestic Trade, Cooperatives and Consumerism Sports Carnival in Bangi. 10 July Bank Rakyat Family Day 2010 for the Head Office employees held at Taman Wetland, Putrajaya. This is an ongoing effort to strengthen relationships among employees at all levels.

15 July Dato Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism launched a multi-purpose cooperative card, known as the CO-OP Card. This card designed for members of cooperatives as an ATM card, MEPS e-debit, discount and loyalty card. Bank Rakyat also signed the CO-OP Card Trade Merchant Agreement at the ceremony.

Bank Rakyat Annual Report

2010

33

16-18 July Bank Rakyats role and its contributions to the cooperative sector continues to be reinforced through participation in the National Cooperative Day 2010 in Kuantan, Pahang. The Bank has been awarded with the Outstanding Cooperative (Big Clusters) Award during the ceremony. 23 July Bank Rakyat Head Office Annual Dinner 2010 was held as an appreciation for employees contributions and loyalty towards Banks development.
16-18 July 23 July

25 August

27 August

28 september A special ceremony to commemorate the 56th anniversary of Bank Rakyat held at the Head Office, Kuala Lumpur and attended by the Board of Directors, Management and staff of Bank Rakyat. 30 september Bank Rakyat hosted Hari Raya Aidilfitri Open House for its depositors in Kuala Lumpur in a festive atmosphere. 1 october Bank Rakyat received the delegation from Kargozar Public Relations Institute of Tehran and Iranian Association of Public Relations Specialists. They were briefed on the historical development and current achievement of the Bank. 9-10 october Bank Rakyat Carnival 2010 at Padang Merdeka, Kota Kinabalu, Sabah received an encouraging response from the people. 2 december Bank Rakyat received delegates from Cooperative College of Malaysia to enhance collaboration in cooperative sector and strengthen existing ties.

31 July 1 August Bank Rakyat Managers Conference 2010 held at the Pullman Hotel, Putrajaya aims to re-evaluate the half year performance of the Bank. 6 August Bank Rakyat expand its branch network by opening the 125th branch in Bera, Pahang. 19 August With the arrival of the holy month of Ramadan, Bank Rakyat organised the Majlis Berbuka Puasa Media 2010 in Kuala Lumpur. 20 August The takaful service is extended to customers and members through the launch of Takaful Amani in collaboration with Takaful Ikhlas Sdn. Bhd.

25 August Bank Rakyat continue its corporate social responsibility program towards the community with a visit to the Pediatric Institute, Hospital Kuala Lumpur, Kuala Lumpur and distribution of goodies to the patients. 27 August The Board of Directors and Management of Bank Rakyat host a Majlis Berbuka Puasa for Head Office employees in Kuala Lumpur. 23 september Bank Rakyat opened the Kuala Nerang branch to enable people in the township and its surrounding to use the facilities and services of Bank Rakyat. It is the 126th branch of Bank Rakyat. 25 september Staff at the Head Office and the nearby branches and their family members are treated to a Hari Raya Aidilfitri Celebration at the forecourt at Jalan Tangsi, Kuala Lumpur.