The Board of Directors of Affin Bank Berhad (“Affin” or “Company”) wishes to announce the Company’s proposal to establish and implement a Long-Term Incentive Plan in the form of Share Grant Scheme (“Proposed SGS”) pursuant to the requirements of Bank Negara Malaysia’s Policy Document on Corporate Governance. The Proposed SGS is intended to be offered to eligible employees (“Eligible Employees”) within Affin and its subsidiary companies (excluding its dormant subsidiary companies).

The Proposed SGS is intended to attract, retain, motivate and reward the Eligible Employees through the award of ordinary shares in Affin (“Affin Shares”) that will be vested to selected Eligible Employees upon them attaining certain performance objectives and any other vesting conditions.

For the shareholders’ information, the Proposed SGS will be undertaken in addition to the reward scheme for the key senior management of Affin and its wholly owned subsidiaries, that was announced by the Company on 1 April 2022 (“Reward Scheme”). The Reward Scheme would differ from the Proposed SGS in that the Reward Scheme entails the payment of a portion of the discretionary performance bonus for the key senior management in the form of existing Affin Shares whereas the Affin Shares to be awarded under the Proposed SGS to Eligible Employees (who may include such key senior management) may vest to them over a longer period, and will be based on performance targets and such other vesting conditions, if any, to be achieved.

The Proposed SGS is subject to the approvals being obtained from, amongst others, the shareholders of Affin, Bank Negara Malaysia, Bursa Malaysia Securities Berhad (“Bursa Securities”) and any other relevant authorities (if required).

A detailed and comprehensive announcement on the Proposed SGS in accordance with the Main Market Listing Requirements of Bursa Securities will be made in due course.

This announcement is dated 13 July 2022.