Description
High performing human capital human capital bank islam bank islam experience experience dato sri zukri samat managing director bank islam malaysia bhd.
HIGH PERFORMING
HIGH PERFORMING
HUMAN CAPITAL :
HUMAN CAPITAL :
BANK ISLAM
BANK ISLAM
EXPERIENCE
EXPERIENCE
DATO’ SRI ZUKRI SAMAT
Managing Director
Bank Islam Malaysia Bhd
6 November 2012
Strategic Planning, Managing Director’s Office
Page 2
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Strategic Planning, Managing Director’s Office
Page 3
Introduction to Bank Islam
Financial Position (1H FY2012)
Financial Position (1H FY2012)
Background
Background
Malaysia’s Pioneer Islamic Bank formed in 1983
3
rd
largest Islamic Bank in Malaysia
Major shareholders:
o BIMB Holdings Berhad 51.0% (Major
shareholder is Lembaga Tabung Haji at 51.6%)
o Lembaga Tabung Haji 18.5%
o Dubai Financial Group 30.5%
Total Assets : RM33,846 million
Total Deposits : RM28,700 million
Profit before tax : RM281.5 million
Shareholders’ funds : RM2,970 million
Network strength in Malaysia
Network strength in Malaysia
125 branches, 1,153 ATM & CDM
Strategic Planning, Managing Director’s Office
Page 4
About Bank Islam
Pre 2006 – what went wrong?
The results of turnaround plan
Lesson learnt
Turnaround plan
FY2005 and FY2006: What went wrong?
Strategic Planning, Managing Director’s Office Page 5
Profit before tax (in million)
Note : Shareholders’ Funds of RM(277.8) million as at 30 June 2006
Strategic Planning, Managing Director’s Office Page 6
The root cause of the problem
Post mortem revealed:
o Losses largely the result of high non?performing financing
(non?robust credit evaluation process, and insufficient depth
and breadth in processing loans, risk management frame
was not properly established)
o Poor working culture and attitude
o The bank was no longer a going concern
Strategic Planning, Managing Director’s Office
Page 7
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Strategic Planning, Managing Director’s Office Page 8
Post FY2006: Turnaround plan
Appointment of new management team
Implementation of five?component turnaround plan in 2006 to
drive Bank Islam’s recovery which included vigorous re?branding
exercise for instance, the change of logo.
BANKING FOR
ALL
BANKING FOR
ALL
BANKING FOR
MUSLIMS
BANKING FOR
MUSLIMS
Strategic Planning, Managing Director’s Office Page 9
Rationale behind the change of logo:
o To change the mindset i.e. general and non?Muslims’
perception and the working culture
o Corporate logo which signifies the bank’s unwavering
commitment to Shariah principles in all its products and
services
o New branch look to attract younger generation and non?
Muslim customers
Corporate Re-branding: Change in mindset
Bank Islam: What it was before
Strategic Planning, Managing Director’s Office Page 10
Bank Islam: New banking experience
Strategic Planning, Managing Director’s Office
Page 11
Strategic Planning, Managing Director’s Office Page 12
Recruitment of new management team
New Managing Director came on board on 9 June 2006.
Introduction of some non?Muslims in the management
team to fill the void in expertise and promote cross culture
for key positions such as Risk Management and IT.
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office Page 13
Reorganisation of the bank
Change of Business Model: Branches as profit centres
rather than service outlets
Establishment of Risk Management Division
Dedicated Recovery Team
Establishment of Corporate Investment Banking (CIB)
Enhancement of Treasury Division
Introduction of performance culture across the bank
Introduction of performance management
Reward given based on performance
Remuneration package introduced
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office Page 14
Process re-engineering
Centralisation of processing
Introduction of credit scoring for consumer financing
Improve process to reduce turnaround time
Automation
Revamped procurement policy to reduce leakages
"Simplicity means the achievement of maximum effect with
minimum means“ – Albert Einstein
Turnaround plan (cont'd)
Page 15
Encourage Business Innovation
Product Innovation:
o Payment Holiday
o No payment during construction
o TAP Mobile Banking
o Sinar Letrik
Universal license also enables new product offerings all
under one roof:
o Advisory services on Initial Public Offerings (IPO) and
Mergers & Acquisitions (M&A) by CIB
o Ar?Rahnu or Islamic pawn broking
o Bereau de Change
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office
Page 16
Human capital development
In FY2011, total spent on training was RM7.16 million (or 2.58% of
total staff remuneration). Specialised Training Programme for:
o Support staff
o Junior management
o Middle management
o Senior management
Succession planning – an exercise carried out to reduce the gap
between the successor and what is required of him.
“Make me redundant”– Dato’ Sri Zukri Samat
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office
Strategic Planning, Managing Director’s Office
Page 17
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Strategic Planning, Managing Director’s Office Page 18
The outcome of the turnaround plan
336
On annualised basis
*18 months Financial Period ended 31 December 2010.
Strategic Planning, Managing Director’s Office Page 19
The outcome of the turnaround plan (cont’d)
FY2007 Year?to?date
No. of branches 90 125
No. of ATM & CDM 301 1,153
Customer base (million) 1.7 5.1
Network strength and customer base
Awards & recognition
Strategic Planning, Managing Director’s Office Page 20
Best Islamic Bank in Malaysia 2011 – IFN Award
Rated 4
th
Strongest Bank in Malaysia by The Asian Banker (Part of Financial
Times Group)
Ranked 53
rd
– Asia Pacific 500 Strongest Bank by The Asian Banker
Ranked 24
th
Largest Islamic Financial Institutions in the world by The Banker
Awarded Readers’ Digest Platinum Award’s “Most Trusted Brand for Islamic
Financial Service” for fourth consecutive year
Awarded Brand Laureate Award for Best Brand in Islamic Banking by the Asia
Pacific Brands Foundation for two consecutive years
Awarded the “Anugerah Inovasi Islam Peringkat Kebangsaan 2011 bagi Inovasi
Kewangan Islam” by MOSTI for TAP Mobile Banking?i product
Strategic Planning, Managing Director’s Office
Page 21
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Lesson learnt
Strategic Planning, Managing Director’s Office Page 22
With the right people, you can move mountains
Change the mindset is the most difficult
Innovation is the key to stay relevant
The world is full of uncertainty. Change is the only constant
The way forward for Bank Islam
Strategic Planning, Managing Director’s Office Page 23
Continue to strengthen the domestic presence. 150 branches
in 2015 from the current 125
Merger, if there is a right partner
Inorganic growth. Indonesia is where we want to gain a
foothold. ASEAN eventually
Be the best in class. “Whatever you are, be a good one” ?
Abraham Lincoln
“When you do something, do it properly or don’t
bother at all”– Dato’ Sri Zukri Samat
Page 24
Strategic Planning, Managing Director’s Office
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doc_525840709.pdf
High performing human capital human capital bank islam bank islam experience experience dato sri zukri samat managing director bank islam malaysia bhd.
HIGH PERFORMING
HIGH PERFORMING
HUMAN CAPITAL :
HUMAN CAPITAL :
BANK ISLAM
BANK ISLAM
EXPERIENCE
EXPERIENCE
DATO’ SRI ZUKRI SAMAT
Managing Director
Bank Islam Malaysia Bhd
6 November 2012
Strategic Planning, Managing Director’s Office
Page 2
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Strategic Planning, Managing Director’s Office
Page 3
Introduction to Bank Islam
Financial Position (1H FY2012)
Financial Position (1H FY2012)
Background
Background
Malaysia’s Pioneer Islamic Bank formed in 1983
3
rd
largest Islamic Bank in Malaysia
Major shareholders:
o BIMB Holdings Berhad 51.0% (Major
shareholder is Lembaga Tabung Haji at 51.6%)
o Lembaga Tabung Haji 18.5%
o Dubai Financial Group 30.5%
Total Assets : RM33,846 million
Total Deposits : RM28,700 million
Profit before tax : RM281.5 million
Shareholders’ funds : RM2,970 million
Network strength in Malaysia
Network strength in Malaysia
125 branches, 1,153 ATM & CDM
Strategic Planning, Managing Director’s Office
Page 4
About Bank Islam
Pre 2006 – what went wrong?
The results of turnaround plan
Lesson learnt
Turnaround plan
FY2005 and FY2006: What went wrong?
Strategic Planning, Managing Director’s Office Page 5
Profit before tax (in million)
Note : Shareholders’ Funds of RM(277.8) million as at 30 June 2006
Strategic Planning, Managing Director’s Office Page 6
The root cause of the problem
Post mortem revealed:
o Losses largely the result of high non?performing financing
(non?robust credit evaluation process, and insufficient depth
and breadth in processing loans, risk management frame
was not properly established)
o Poor working culture and attitude
o The bank was no longer a going concern
Strategic Planning, Managing Director’s Office
Page 7
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Strategic Planning, Managing Director’s Office Page 8
Post FY2006: Turnaround plan
Appointment of new management team
Implementation of five?component turnaround plan in 2006 to
drive Bank Islam’s recovery which included vigorous re?branding
exercise for instance, the change of logo.
BANKING FOR
ALL
BANKING FOR
ALL
BANKING FOR
MUSLIMS
BANKING FOR
MUSLIMS
Strategic Planning, Managing Director’s Office Page 9
Rationale behind the change of logo:
o To change the mindset i.e. general and non?Muslims’
perception and the working culture
o Corporate logo which signifies the bank’s unwavering
commitment to Shariah principles in all its products and
services
o New branch look to attract younger generation and non?
Muslim customers
Corporate Re-branding: Change in mindset
Bank Islam: What it was before
Strategic Planning, Managing Director’s Office Page 10
Bank Islam: New banking experience
Strategic Planning, Managing Director’s Office
Page 11
Strategic Planning, Managing Director’s Office Page 12
Recruitment of new management team
New Managing Director came on board on 9 June 2006.
Introduction of some non?Muslims in the management
team to fill the void in expertise and promote cross culture
for key positions such as Risk Management and IT.
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office Page 13
Reorganisation of the bank
Change of Business Model: Branches as profit centres
rather than service outlets
Establishment of Risk Management Division
Dedicated Recovery Team
Establishment of Corporate Investment Banking (CIB)
Enhancement of Treasury Division
Introduction of performance culture across the bank
Introduction of performance management
Reward given based on performance
Remuneration package introduced
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office Page 14
Process re-engineering
Centralisation of processing
Introduction of credit scoring for consumer financing
Improve process to reduce turnaround time
Automation
Revamped procurement policy to reduce leakages
"Simplicity means the achievement of maximum effect with
minimum means“ – Albert Einstein
Turnaround plan (cont'd)
Page 15
Encourage Business Innovation
Product Innovation:
o Payment Holiday
o No payment during construction
o TAP Mobile Banking
o Sinar Letrik
Universal license also enables new product offerings all
under one roof:
o Advisory services on Initial Public Offerings (IPO) and
Mergers & Acquisitions (M&A) by CIB
o Ar?Rahnu or Islamic pawn broking
o Bereau de Change
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office
Page 16
Human capital development
In FY2011, total spent on training was RM7.16 million (or 2.58% of
total staff remuneration). Specialised Training Programme for:
o Support staff
o Junior management
o Middle management
o Senior management
Succession planning – an exercise carried out to reduce the gap
between the successor and what is required of him.
“Make me redundant”– Dato’ Sri Zukri Samat
Turnaround plan (cont'd)
Strategic Planning, Managing Director’s Office
Strategic Planning, Managing Director’s Office
Page 17
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Strategic Planning, Managing Director’s Office Page 18
The outcome of the turnaround plan
336
On annualised basis
*18 months Financial Period ended 31 December 2010.
Strategic Planning, Managing Director’s Office Page 19
The outcome of the turnaround plan (cont’d)
FY2007 Year?to?date
No. of branches 90 125
No. of ATM & CDM 301 1,153
Customer base (million) 1.7 5.1
Network strength and customer base
Awards & recognition
Strategic Planning, Managing Director’s Office Page 20
Best Islamic Bank in Malaysia 2011 – IFN Award
Rated 4
th
Strongest Bank in Malaysia by The Asian Banker (Part of Financial
Times Group)
Ranked 53
rd
– Asia Pacific 500 Strongest Bank by The Asian Banker
Ranked 24
th
Largest Islamic Financial Institutions in the world by The Banker
Awarded Readers’ Digest Platinum Award’s “Most Trusted Brand for Islamic
Financial Service” for fourth consecutive year
Awarded Brand Laureate Award for Best Brand in Islamic Banking by the Asia
Pacific Brands Foundation for two consecutive years
Awarded the “Anugerah Inovasi Islam Peringkat Kebangsaan 2011 bagi Inovasi
Kewangan Islam” by MOSTI for TAP Mobile Banking?i product
Strategic Planning, Managing Director’s Office
Page 21
About Bank Islam
Pre 2006 – what went wrong?
Turnaround plan
The results of turnaround plan
Lesson learnt
Lesson learnt
Strategic Planning, Managing Director’s Office Page 22
With the right people, you can move mountains
Change the mindset is the most difficult
Innovation is the key to stay relevant
The world is full of uncertainty. Change is the only constant
The way forward for Bank Islam
Strategic Planning, Managing Director’s Office Page 23
Continue to strengthen the domestic presence. 150 branches
in 2015 from the current 125
Merger, if there is a right partner
Inorganic growth. Indonesia is where we want to gain a
foothold. ASEAN eventually
Be the best in class. “Whatever you are, be a good one” ?
Abraham Lincoln
“When you do something, do it properly or don’t
bother at all”– Dato’ Sri Zukri Samat
Page 24
Strategic Planning, Managing Director’s Office
? ?? ?? ?? ? ?? ?? ?? ?
? ?? ?? ?? ? ?? ?? ?? ?
?? ?? ?? ??? ?
?? ?? ?? ??? ?
doc_525840709.pdf