Affin Bank Berhad | Annual Report 2020

222 ORGANISATION EXECUTIVE SUMMARY CORPORATE GOVERNANCE FINANCIAL STATEMENTS OTHER INFORMATION The Directors hereby submit their report together with the audited financial statements of the Group and the Bank for the financial year ended 31 December 2020. PRINCIPAL ACTIVITIES The principal activities of the Bank during the financial year are banking and related financial services. The principal activities of the subsidiaries are Islamic banking business, investment banking and stock-broking, money-broking, fund and asset management, property management services, nominee and trustee services. The details of the subsidiary companies are disclosed in Note 17 of the financial statements. The principal activities of the joint ventures are underwriting of life insurance business and property development while the associates are principally engaged in the underwriting of general insurance business and investment holding. Islamic banking business refers generally to the acceptance of deposits and granting of financing under the Shariah principles. There were no significant changes in the nature of these activities during the financial year. FINANCIAL RESULTS The Group The Bank RM’000 RM’000 Profit before zakat and taxation 394,180 93,069 Zakat (7,469) - Profit before taxation 386,711 93,069 Taxation (113,863) (86) Net profit for the financial year 272,848 92,983 DIVIDENDS The dividends on ordinary shares paid or declared by the Bank since 31 December 2019 were as follows: In respect of the financial year ended 31 December 2019: RM’000 Single-tier interim dividend of 7 sen per share paid on 9 September 2020 139,021 On 27 January 2021, the Board of Directors proposed a single-tier interim dividend of 3.5 sen per share amounting to RM72,792,688 in respect of the financial year ended 31 December 2020, based on the Bank’s issued and paid-up capital of 2,079,791,097 ordinary shares at 31 December 2020. The Directors do not recommend any final dividend to be paid for the financial year ended 31 December 2020. On the same day, the Board of Directors resolved that Dividend Reinvestment Plan as disclosed in Note Z be applied to the said interim dividend and the entire interim dividend can be elected and reinvested in new ordinary shares of the Bank. RESERVES AND PROVISIONS All material transfers to or from reserves or provisions during the financial year are shown in the financial statements and notes to the financial statements. DIRECTORS’ REPORT FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2020