AFFIN Bank Berhad : Shareholders Meeting Document

AFFIN BANK BERHAD

(Company No. 197501003274 / 25046-T)

(Incorporated in Malaysia)

MINUTES OF THE FORTY-FIFTH ANNUAL GENERAL MEETING OF AFFIN BANK BERHAD HELD VIRTUALLY AT THE BROADCAST VENUE AT BOARDROOM, 19TH FLOOR, MENARA AFFIN, 80 JALAN RAJA CHULAN, 50200 KUALA LUMPUR ON WEDNESDAY, 2 JUNE 2021 AT 2.30 P.M.

PRESENT AT THE BROADCAST VENUE:-

Board Of Directors

YBHG. DATO' AGIL NATT - CHAIRMAN

PARTICIPATION VIA VIDEO CONFERENCING

Board Of Directors

ENCIK MOHD SUFFIAN BIN HAJI HARON - Non-IndependentNon-Executive Director YBHG. DATO' ABDUL AZIZ BIN ABU BAKAR - Independent Non-Executive Director YBHG. DATO' MOHD HATA BIN ROBANI - Independent Non-Executive Director

MR. IGNATIUS CHAN TZE CHING - Non-IndependentNon-Executive Director

YBHG. DATO' ROZALILA BINTI ABDUL RAHMAN - Independent Non-Executive Director MR. YUEN PETER WAI HUNG - Non-IndependentNon-Executive Director

PUAN MARZIDA BINTI MOHD NOOR - Independent Non-Executive Director

MR. GREGORY JEROME GERALD FERNANDES - Independent Non-Executive Director MS. CHAN WAI YU - Independent Non-Executive Director

Member of Senior Management

YBHG. DATUK WAN RAZLY ABDULLAH BIN WAN ALI (President & Group Chief Executive Officer)

MS. JOANNE RODRIGUES (Chief Financial Officer)

Company Secretary

PUAN NIMMA SAFIRA BINTI KHALID (Chief Legal Officer And Company Secretary)

Representative from External Auditors, Messrs PricewaterhouseCoopers PLT:

MR. SOO HOO KHOON YEAN (Engagement Partner)

Representative From Share Registrar And Poll Administrator, Tricor Investor & Issuing House Services Sdn Bhd

PUAN SUZANA ABDUL RAHIM

Independent Scrutineers, Asia Securities Sdn Bhd

MS. ONG WAI LENG

SHAREHOLDERS & PROXIES

: As Per Attendance List

1. COMMENCEMENT OF THE MEETING

1.1 The Chairman, Dato' Agil Natt welcomed and thanked shareholders and proxies for their participation at Affin Bank Berhad's (ABB or Bank or Company) forty-fifth (45th) Annual General Meeting (AGM) (45th AGM) which was broadcasted fully virtual streaming from Tricor's TIIH online website at https://tiih.online.

1. The Chairman briefed that the convening of the AGM is in compliance with Section 327 of the Companies Act 2016 and in accordance to Article 67 of the

   Bank's Constitution.

   Pursuant to the implementation of the National Total Lockdown, the Securities Commission Malaysia had on 1 June 2021 revised the Guidance Note and Frequently Asked Questions (FAQs) on the conduct of General Meetings for Listed Issuers (which was originally issued on 18 April 2020). The revised guidance states that listed issuers are only allowed to conduct fully virtual general meetings during the total lockdown. In a fully virtual general meeting, all meeting's participants including the Chairperson of the meeting, Board members, senior management and shareholders participate in the meeting online. Physical gatherings no matter how small are prohibited.

   According to the Revised Guidance Note and FAQs, an online meeting platform can be recognised as the meeting venue or place under Section 327(2) of Companies Act 2016 if the online platform is located in Malaysia.

   The Bank had on 31 May 2021 made announcement to Bursa Malaysia that the Broadcast Venue of the 45th AGM of the Company shall be changed from Level 18, Menara Affin, 80, Jalan Raja Chulan 50200 Kuala Lumpur to the online meeting platform of TIIH Online via its website at https://tiih.online.

2. The Chairman introduced the Board Members, President & Group Chief Executive Officer (PGCEO), Chief Financial Officer, and Company Secretary who were present at the meeting via online meeting platform. He further introduced Ms. Chan Wai Yu, a new Board Member who joined the Bank on 1 April 2021.
   The Chairman informed that there was one (1) Board member who has resigned since the last AGM, Puan Nik Amlizan Binti Mohamed, a Nominee Director of Lembaga Tabung Angkatan Tentera, who resigned from the Bank on 5 October 2020. The Chairman, on behalf of the Board, expressed sincere appreciation to Puan Nik Amlizan for her invaluable contributions towards ABB.
3. The Chairman further introduced the representatives from Messrs.
   PricewaterhouseCoopers (Bank's external auditors), Tricor Investor & Issuing
   House Services Sdn Bhd (Tricor) (Share Registrar and Poll Administrator) and Asia Securities Sdn Bhd (Asia Securities) (Independent Scrutineer for the AGM's poll voting) who were also present at the Broadcast Venue.

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1. QUORUM
2. 1. The Chairman informed that the Company Secretary has confirmed that the requisite quorum for commencement of a general meeting was met in accordance to Article 76 of the Bank's Constitution.
   2. That a total of 354 shareholders (including proxies and corporate representatives) representing a total of 1,751,498,939 ordinary shares equivalent to 88.17% of the total issued share capital, had participated at the AGM via the Remote Participation and Voting (RPV) facility.
   3. In addition, a total of 69 shareholders had appointed the Chairman of the Meeting as proxy to vote on their behalves and the shares so represented amounted to 498,481,048 ordinary shares equivalent to 25.09% of the total issued shares of ABB.
   4. The Chairman then called the Meeting to order.
3. NOTICE OF MEETING
4. 1. The Notice convening the AGM dated 30 April 2021, having been served on shareholders, was taken as read.
5. VOTING ON RESOLUTIONS
6. 1. The Chairman informed that in line with Paragraph 8.29A of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, voting on all resolutions for the 45th AGM would be conducted by way of poll, via electronic voting (e-voting) and would be administered by Tricor, the Poll Administrator appointed for this AGM. The poll results will be validated and verified by the appointed Scrutineers, Asia Securities Sdn Bhd.
   2. That the shareholders were further informed of the following:-
   3. 1. The voting session had already commenced from the start of the meeting and that shareholders/proxies may start registering their votes electronically until the closure of the voting session which would be announced later;
      2. The results of the poll voting and declaration of resolutions will be shown on the screen after the Scrutineers have verified the poll results upon the closure of the e-voting session. Shareholders may view and take note of the results from the screen. The Chairman will then declare whether the resolutions are duly passed; and
      3. Shareholders and proxies are welcome to raise questions at any time during the AGM by submitting written questions using the Query Box as provided via the RPV facility. The Board will then answer the questions during the question and answer (Q&A) session.

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5. PRESENTATION BY PGCEO

1. The Chairman invited PGCEO to update the shareholders on the Group's performance and highlights for the financial year ended 31 December 2020 (FY2020).
2. The key highlights of the PGCEO's presentation were as follows:-
3. 1. Key Financial Highlights for FY2020
   2. 1. The Net Interest Income improved by 0.8% year-on-year (YoY) contributed by more significant loan bookings and improved Current Account/Saving Account (CASA) in deposit composition.
      2. Improvement in lending Net Interest Margin & growth in loan base predominantly from Community Banking (Hire Purchase).
      3. Despite the COVID-19 pandemic crisis, the Bank was able to improve Net Interest Income and steer the Bank in a better direction.
      4. Gross Loans increased contributed majority by Community Banking business. Community Banking loan portfolio increased by 48.8% YoY contributed majority from Housing Loan.
      5. Enterprise loan portfolio grew 18.5% YoY. Enterprise Banking shows great improvement in asset quality and reduces impairment by 98 bps.
      6. Improvement in Asset Quality for Community Banking contributed by Mortgage portfolio.
      7. The Bank has improved its deposit based by strong growth in CASA by RM1.3 billion or 13.6%. CASA is growing strong and ahead of budget by RM0.03 billion.
      8. FD has contracted by RM2.8 billion YoY aligned with Bank's AFFINITY IN MOTION 22 (AIM22) strategy to reduce FD and increase CASA deposit base.
      9. Reduced cost of fund (COF) was mainly due to Bank's strategy to increase deposit based on CASA and reducing high cost FD.
      10. Affin Bank Berhad is one of the banks showing expansion in net interest margin (NIM) despite the overnight policy rate (OPR) cut.

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1. AIM22 Key Focus Areas
   The AIM22 key focus areas are targeted on the following:-
2. 1. Return on equity (ROE) Focus - building annuity income and converting branches into Dual Banking.
   2. Productivity & Efficiency - launched two (2) new segments (Affin Invikta and Affin Avance).
   3. Turbo Charged CASA - continuing CASA momentum and reduction in COFs and expansion of NIM.
   4. Digital Transformation Acceleration : Affinmax - the Bank's new Corporate Internet Banking System.
   5. Enhanced Retail Internet Banking.

1. Sustainability
   Sustainability initiatives at Affin Bank Group as a financial group.

(IV) Always About You

Financial Assistance Instalment Relief (FAIR) Program is specially customized and supportive to provide financial assistance/solutions to individuals, small and medium-sized enterprises (SME) and Corporate customers.

1. 1. The PGCEO thanked the shareholders/stakeholders for their continued support.
      Note: Details of the PGCEO's presentation can be viewed from ABB's website at www.affinbank.com.my.
2. AUDITED FINANCIAL STATEMENTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020 AND REPORTS OF THE DIRECTORS AND AUDITORS
3. 1. The Chairman informed that the Company's Audited Financial Statements (AFS) for the financial year ended 31 December 2020 together with the Reports of the Directors and Auditors were laid before the Company at this meeting pursuant to Section 340(1)(a) of the Companies Act, 2016.
   2. The Chairman explained that the AFS are laid for discussion only and will not be put forward for voting.
4. MINORITY SHAREHOLDERS WATCH GROUP (MSWG) QUESTIONS AND ANSWERS
5. 1. The PGCEO informed that the MSWG had per their letter dated 25 May 2021 raised some points on the Company's strategy, financials and governance matters. The Bank had via its letter dated 2 June 2021 provided the responses to MSWG.

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