157 06 / FINANCIAL STATEMENTS 01 02 03 04 05 07 08 09 DIRECTORS’ REPORT OUTLOOK AND PROSPECTS FOR 2026 Malaysia’s domestic economy is expected to remain robust in 2026, supported primarily by resilient domestic demand and firm industrial activity. High frequency indicators point to consistent gains across the economic sector, led by stronger industrial output, better-than-expected export performance, solid retail sales driven by festive spending and a low unemployment rate backed by sustained hiring. Nevertheless, downside risks to growth persist mainly stemming from external headwinds. These include uncertainty over President Donald Trump’s policy direction, escalating geopolitical tensions, and China’s uneven economic recovery. Against this backdrop, we forecast Gross Domestic Product growth to moderate to 4.5% in 2026 (2025: 5.2%) with upside potential toward 5.0%. We expect the growth momentum brought by better-than-expected exports and domestic demand in the 4Q25 would spill over into 1H26, helping cushion the geopolitical headwinds and support growth in 2026. A firmer ringgit continues to help contain imported inflation, support domestic consumption, and stabilise business costs. Export competitiveness remains resilient due to regional tariff relief and continued Asian trade flows. Sustained foreign portfolio inflows also help anchor financial market stability. Similarly, we continue to expect Bank Negara Malaysia to keep the Overnight Policy Rate (“OPR”) steady at 2.75% throughout 2026, barring major external shocks. With growth holding up and inflation remaining manageable, there is limited need for a policy shift. BNM is likely to maintain a cautious, balanced approach, supporting growth while managing inflation risks amid persistent global uncertainty. The Group anticipates stronger revenue in 2026, driven by a significant rebound in brokerage and trading income from a weak 2025 base, supported by improved market sentiment. Investment Banking is poised to benefit from sustained momentum in Mergers & Acquisitions activity and an active Initial Public Offering pipeline. Concurrently, our Asset Management business is expected to grow in this favorable environment. Operationally, the Group will intensify its focus on cost efficiency, particularly within its stockbroking division, while continuing to invest in strategic digital initiatives. Overall, the outlook for 2026 is one of cautious optimism for improved financial performance. INDEMNIFICATION OF DIRECTORS AND OFFICERS The Bank has maintained a Directors and Officers Liability Insurance on a group basis up to the aggregate limit of RM30.0 million against any legal liability incurred by the Directors and Officers in the discharge of their duties while holding office for the Group. The Directors and Officers shall not be indemnified by such insurance for any gross negligence, fraud, intentional breach of law or breach of trust proven against them. The total amount of insurance premium paid for the Directors and Officers of the Group and of the Bank for the current financial year were RM54,000 and RM39,358, respectively.
RkJQdWJsaXNoZXIy NDgzMzc=