Big or small,we’ll help them allWhen the plight of homeless elephants fell on our ears and how they are being rescued by the Kuala Gandah National Elephant Orphanage Sanctuary, we knew we just had to help. That’s because there’s nothing too big or too small that we can do to make a difference in this world.

As the country’s largest Islamic cooperative bank, Bank Rakyat has

received numerous awards and accolades for its great achievements and contributions

in the Islamic banking sector.

Established in 1954, Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) is currently the largest Islamic cooperative bank in Malaysia with total assets amounting RM61.91 billion for financial year ended 31 December 2010.

In 2003, the Board of Directors undertook a historic decision to announce the replacement of Bank Rakyat’s Conventional Banking System to a system based fully on Syariah principles. Now all Bank Rakyat branches offer Syariah based banking products to the public.

Bank Rakyat had consecutively recorded rising profits before tax and zakat since then, the highest being RM1.72 billion for financial year ended 31 December 2010.

The various awards and accolades achieved in the past year, whether in Malaysia or the International arena are testaments to the Bank’s excellence & eminences.

Bank Rakyat is expanding its product and customer facilities continuously to provide greater diversity to its customers.

A wide range of banking products and services are being offered which includes consumer financing, commercial financing and deposit as well as investment products to cater for various segments of market. Successful introduction of quality, diversified and innovative product meeting the needs of a wide spectrum of customers, enhanced and efficient delivery channels as well as friendly corporate image disposition have placed Bank Rakyat on the right footing to become Your Choice Bank.

An entity under the purview of the Ministry of Domestic Trade, Cooperative and Consumerism, Bank Rakyat is committed to support the Ministry’s mission to strengthen the cooperative sector as the nation’s economic growth thrust.

To date, Bank Rakyat has 127 branches with more than 400 automated teller machines (ATMs) and cash deposit machines (CDMs) as well as 23 Ar-Rahnu X’change nationwide. Bank Rakyat also operates a call centre, tele-Rakyat: 1-300-88-1BANK(12265) and irakyat.com.my internet banking. Bank Rakyat’s official website is www.bankrakyat.com.my. Please visit us at Facebook, Bank Rakyat, Bank Pilihan Anda.

ABout us

savings & Investment

• SavingsAccount-i Tawfir• SavingsAccount-iNuri• General InvestmentAccount-iQiradh• Sijil Pembiayaan Bank Rakyat (SPBR)

Consumer Financing

• Personal Financing-i 1Aslah• Home Financing-iManzili• Car Financing-i AnNaqlu• Education Financing-i Falah• PawnBroking-i Ar-Rahnu/Az-Zahab/GENiUS• Contract Financing-i Tijari• Land Financing-i Ardhi• FixedAsset Financing-i Al-Mal• Share Financing-i• Collateral Financing-i (Unit Trust InvestmentCertificate)• Credit Card-i• Debit Card-i• Pinjaman Transformasi Kedai Runcit (TUKAR-i)• Pinjaman Transformasi Bengkel Automotif (ATOM-i)

Commercial Financing

• Contract Financing-i• Share Financing-i• Bridging Financing-i• Property Financing-i• Term Financing-i• Hire Purchase

Financing for sMI and Cooperative Entrepreneurs

• KadCO-OP• Micro Financing-i (MUsK)• Contract Financing-i Tijari• Term Financing-i• Bridging Financing-i• Property Financing-i• Hire Purchase• Ar-RahnuX’change• Bank Rakyat ServiceAgent• Rakan Koop• Business Financing-i BeliaNiaga Scheme• RevolvingCredit Facility-i Tarkhis (SELAWAT)• SistemAutopay• RuralDevelopment Financing-i Scheme (SPED)• Kop-Autopay Service Scheme• Rakyat Franchise Financing-i Scheme• CreditGuaranteeCorporation Scheme (CGC)• SMEAssistanceGuarantee Scheme (SAGS)

Customer Facilities

• i-Rakyat Internet Banking• tele-Rakyat Call Centre• e-Rakyat Electronic BankingCentre• TabungHaji Services• InterbankGiro (IBG)• Interbank Fund Transfer (IBFT)• Remittance (WesternUnion)• Bankcard/MEPS• RegionalMEPS• e-DebitMEPS• CollectionAgent

– Utility (Water/Electricity Bill)– Assessment Tax/Quit Rent– Telecommunication/Broadcasting– Zakat– Deposits/Savings– Airline Company Services– Consumer/Loan– Pension

Financial Planning services

• Investment• Bancatakaful• WealthDistribution

PRoduCts & CustoMER FACIlItIEs

2010 Bank Rakyat Annual Report22

1954-1989

1954Eleven Union Banks merged on28 September to become Bank Agong K a m p o n g B e k e r j a s a m a - s a m a Persekutuan Tanah Melayu Dengan Tanggongan Berhad or Bank Agong and was registered under the Cooperative Ordinance 1948. The headofficewas inBukit Mertajam.

1964The bank moves its head office to Kuala Lumpur. Its capital alsowas raised fromRM2 million to RM20 million.

1967To reflect its identity as a cooperative bank and also to widen its scope of activity, the name was again changed, to be known as Bank Kerjasama Malaysia Berhad or in short, Bank Kerjasama. Memberships were opened to individuals and cooperatives. Bank’s goals and functions were expanded to allow the bank to provide financing to these categories.

1973As the national economy continues to grow, the Bank’s name was changed to Bank Kerjasama Rakyat Malaysia Berhad orBankRakyat. Bank’sBy-Lawswerealsoamended to allow the Bank to venture into other business through its subsidiaries whichincludeUnitedManufacturersSdn.Bhd., Asean Chemical Fertilizers Sdn. Bhd., Pulp and Paper Industries Sdn. Bhd., Angkasaraya Development Sdn. Bhd., Aman Properties Sdn. Bhd. and Rakyat Corporation Sdn. Bhd.

1974Bangunan Angkasaraya on Jalan Ampang was built by Angkasaraya Development Sdn. Bhd., a modern building that symbolises the rapid progress and growth experienced by Bank Rakyat. Change to the By-Laws allows the Bank’s sharecapital to be raised to RM50 million.

1978The Bank Kerjasama Rakyat Malaysia Berhad Act (Special Provision) 1978 was enacted to enable the government to oversee and control the management and administration of the Bank. A loan of RM115 million was provided by the government to turn around the Bank. The Act also allows the Bank to give loans to non-members and companies. It further places the Bank under the supervision of the ministry in charge of overseeing the cooperatives sector.

1979The head office moves from Jalan Ipoh to a 22-storey building owned by the Bankat JalanTangsi, Kuala Lumpur. Thehead office remains here until today.

1989As a strategy to widen its operation channel, the Bank’s first mini-branch was opened atBandarTunRazak,KualaLumpur.

MIlEstonEs

Bank Rakyat Annual Report 2010 23

MIlEstonEs

1993-2009

1993The Bank makes a landmark decision by launching the Syariah Banking System at its branches in Alor Star, Jalan Ipoh, Kota Bharu and Sungai Besar, making it the first local bank to switch course from a conventional banking system to a Syariah compliant system. Bank Islam Malaysia Berhad was appointed as the consultant to implement the system.

1994Bank Rakyat becomes the first local bank to have a fully Islamic banking branch in Jertih. Also introduced were the ATMs while the share capital was doubled to RM100 million.

An amendment to the Cooperatives Act 1993 sees the opening of Kota Kinabalu branch . The amendment a l lows cooperatives to operate in Sabah and Sarawak.

Syariah Advisory Council was established to ensure that our banking operations adhere to Islamic teachings, principles and concepts.

1999Bank Rakyat increased its Authorised Share Capital to RM1 bill ion. The Integrated Retail Banking System was introduced to strengthen Bank’s competitiveness. Another milestone was achieved when all 80 branches became fully Syariah compliant.

2000The first Ar-Rahnu outlet was launched in Kota Bharu to mark the start of the Bank’s involvement in micro-credit activities.

2001This year sees the introduction of a new logo with new corporate colour, off premise ATMs and the bank succeeding in settling its loan with the government. A significant shift took place when the Bank was placed under the Development Financial Institutions Act 2002, which in turn placed the Bank under direct control of Bank Negara Malaysia.

2002Bank’s Annual General Meeting wasreconvened after a lapse of 16 years. The Bank operates as a fully Syariah compliant Bank after successfully converted 1.1% of its conventional assets balance to Syariah compliant assets.

2003TheAnnualGeneralMeetingapprovesaresolution to double the Authorised Share Capital to RM2 billion. Another development was the introduction of the first e-Rakyat, the Electronic Banking Centre, at Jalan Tangsi branch.

2004The Bank was placed under the j u r i s d i c t i o n o f t h e M i n i s t r y o f E n t r e p r e n e u r a n d C o o p e r a t i v e Development. Bank’s participation in the Malaysian Electronic Payment System (MEPS) makes Bank Rakyat the first non-commercial bank to be part of the system.

2010 Bank Rakyat Annual Report24

2006tele-Rakyat, the Bank’s call centre, was introduced. Also introduced was the Ar-Rahnu X’change, the Bank’s first Islamic pawnshop franchise. The first outlet is in Sentul, Kuala Lumpur.

2007The introduction of i-Rakyat, an online banking facility, is yet another service to benefit customers.

Bank Rakyat’s Ar-Rahnu was further expanded through the opening of Ar-Rahnu X’change premis at Klang, Selangor. It is operated by Koperasi Pembangunan Pulau Lumut Berhad(KPPLB) on franchise system.

2008For the first time profit before tax and zakat crosses the RM1 billion mark. Card Credit-i Bank Rakyat was launched and TabungHaji serviceswas offered to thecustomer at Bank Rakyat branches, ATMs and CDMs. Memorandum of Understanding with MobilityOne Sdn.Bhd. allows customers to reload their mobile phone pre-paid via ATMs and i-Rakyat.

The first livery advertisement on the external body of Air Asia aircraft further strengthens Bank’s corporate branding.

The Bank Rakyat Foundation was launched with the aim of providing financial assistance and consequently improve the education standards of Malaysians regardless of race.

2009Launch of Bank Rakyat Twin Towersproject off Jalan Travers. The project is estimated to cost RM460 million. The Bank was placed under the Ministry of Domestic Trade, Cooperatives and Consumerism.

Bank Rakyat Annual Report 2010 25

CustoMER CHARtER

transactions duration

1. Complete Application Processing

a. Personal Financing <7 days

b. Other Financing <14days

c. Corporate Financing <2 months

2. Gold Pawn (Ar-Rahnu) Processing <30minutes

3. AccountOpening Processing <25minutes

4. Withdrawal Processing Through

a. ATMs <1 minute

b. Counters <5 minutes

5. Public ComplaintsHandling

a. Record of Acceptance <14 days

b. Settlements <30 days

We are committed to provide excellent, efficient, effective and friendly services to our clients.

2010 Bank Rakyat Annual Report26

MICRo FInAnCIng CHARtER

We are committed to provide excellent, efficient, effective and friendly services to our clients.

simple~ For micro entrepreneurs

~ No collaterals or securities

~ Simple application forms

~ Savings account at Bank Rakyat

~ Minimum documents

Fast~ Approvals within 10 working days

Convenient~ Transparent terms

~ Low installments

~ Payable at:

• Branches

• ATM/CDM

• Deductible from savings account

Bank Rakyat Annual Report 2010 27

2010 MEdIA HIgHlIgHts

2010 Bank Rakyat Annual Report28

Bank Rakyat Annual Report 2010 29

2010 CAlEndAR oF EvEnts

4 February

Bank Rakyat continues to progress in Selangor with the opening of the second branch in Section 23, Shah Alam, its 123rd branch in the country.

9 February

Relationships with institution of higher learning from Indonesia established through the visit of Sekolah Tinggi Ekonomi Islam Tazkia from Indonesia to Bank Rakyat’sHeadOffice.

18 January

Bank Rakyat Media Appreciation Night was held in Kuala Lumpur as anappreciation for the support given to Bank Rakyat. In attendance was Dato’ Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism.

28 January

OfficialvisitbyDato’SriIsmailSabriYaakob,MinisterofDomesticTrade,Cooperativesand Consumerism to view the progress of the Bank Rakyat Twin Towers project,another landmark of Bank Rakyat’s success in Kuala Lumpur.

5 February

Business Action Plan Meeting 2010 in Kuala Lumpur has brought all BankRakyat managers to move towards achieving greater success.

18 February

Visit by the students of the International Islamic University Malaysia to BankRakyat aimed at learning more about the achievement of the country’s biggest cooperative bank.

27 January

Study tour by officers from Bank Islam Brunei to the Credit Card Department to foster c loser t ies as wel l as opportunities for future collaboration.

19 February

5 February

18 January

4 February

24 February 19 February

Announcement of Financial Performance of Bank Rakyat and Dividend for the year ended 31 December 2009.

24 February

Bank Rakyat opened its 124th branch in Tanjung Karang, Selangor bringing the total of branches in the state to 22.

2010 Bank Rakyat Annual Report30

15 March

12 March

Bank Rakyat enhanced cooperation with ANGKASA through the s ign ing of theMemorandum of Understanding for the Multi-PurposeCard (CO-OPCard).

15 March

Bank Rakyat launched Lembaga Tabung HajiUnitellerServiceCounterwhichenablecustomersto conduct various transactions such as registration of pilgrimage, checking balances, withdrawal, depositing and transferring money. Alternatively, the transactions can be done at theATM/CDM.

27 March

27 March

The children’s playground sponsored by Bank Rakyat was inaugurated at Menara Alor Star, Alor Star, Kedah in conjunction with Bank Rakyat’s Nuri Club Third Anniversary celebration.

6 April

1 AprilBank Rakyat held a press conference to announce the Bank Rakyat Carnival 2010, which has entered its third year. It allows the bank to strengthen its ties with the local community.

3 AprilBank Rakyat AnnualGeneralMeeting 2010was held at the PutraWorldTradeCentre,KualaLumpur.SimultaneouslyabookentitledMembina Kegemilangan, a recorded history of the Bank’s development since its inception on 28 September 1954 to present was launched by Dato’ Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism.

6 AprilBankRakyatsignedaMemorandumofUnderstandingwithBeritaHarian for theProgramScore ‘A’, aneducationalprogrammethatbenefits the children of the Bank’s members and members of the school cooperatives in preparation for theUPSR, PMR and SPM.

9-11 AprilBankRakyat joinedSmartKidsFair2010inKualaLumpurtoreachout childrens from all walks of life.

17-18 AprilBank Rakyat Carnival 2010 kicks off in Muar, Johor and participation small and medium entrepreneurs which showcase their products and services. The programme aims at strengthening the ties between the Bank and the local community through a various activities.

Bank Rakyat Annual Report 2010 31

2010 CAlEndAR oF EvEnts

15 JulyDato’ Sri Ismail Sabri Yaakob, Minister of Domestic Trade, Cooperatives and Consumerism launched a multi-purpose cooperative card, known as the CO-OPCard. This card designed for members of cooperatives as an ATM card, MEPS e-debit, discount and loyalty card. Bank Rakyat also signed the CO-OP CardTrade Merchant Agreement at the ceremony.

4 JulyBank Rakyat actively participate in the Ministry of Domestic Trade, Cooperatives and Consumerism Sports Carnival in Bangi.

10 JulyBank Rakyat Family Day 2010 for the Head Office employees held at TamanWetland, Putrajaya. This is an ongoingeffort to strengthen relationships among employees at all levels.

10 July

15 July

5 JuneBank Rakyat’s commitment in the preservation of nature is further affirmed through Underwater Exploration Camp2010 in Pulau Redang, Terengganu organised for members of Kelab Nuri.

8 JuneBank Rakyat honoured its corporate clients at a cocktail at The Royale Chulan Hotel, Kuala Lumpur.

11-12 JuneBank Rakyat 2010 Carnival continued at the Darul Aman Stadium, Alor Setar, Kedah.

23 May 31 May

5 June

31 May

Bank Rakyat shared its experiences and knowledge with delegation fromUzbekistan in the field ofMicro Financing-i.

23 May

Efforts to foster the relationship between Bank Rakyat and medias materialised through Bank Rakyat-BERNAMA Media Bowling 2010.

2010 Bank Rakyat Annual Report32

16-18 JulyBank Rakyat’s role and its contributions to the cooperative sector continues to be reinforced through participation in the National Cooperative Day 2010 in Kuantan, Pahang. The Bank has been awarded with the Outstanding Cooperative (BigClusters) Award during the ceremony.

23 JulyBank Rakyat Head Office Annual Dinner 2010 washeld as an appreciation for employees’ contributions and loyalty towards Bank’s development.

16-18 July 23 July

25 August 27 August

25 AugustBank Rakyat continue its corporate social responsibility program towards the community with a visit to the Pediatric Institute, Hospital Kuala Lumpur, KualaLumpur and distribution of goodies tothe patients.

27 AugustThe Board of Directors and Management of Bank Rakyat host a Majlis Berbuka Puasa for Head Office employees inKuala Lumpur.

23 septemberBank Rakyat opened the Kuala Nerang branch to enable people in the township and its surrounding to use the facilities and services of Bank Rakyat. It is the 126th branch of Bank Rakyat.

25 septemberStaff at the Head Office and the nearbybranches and their family members are treatedtoaHariRayaAidilfitriCelebrationatthe forecourtatJalanTangsi,KualaLumpur.

28 septemberA special ceremony to commemorate the 56th anniversary of Bank Rakyat held at the Head Office, Kuala Lumpur andattended by the Board of Directors, Management and staff of Bank Rakyat.

30 septemberBank Rakyat hosted Hari Raya AidilfitriOpen House for its depositors in KualaLumpur in a festive atmosphere.

1 octoberBank Rakyat received the delegation from Kargozar Public Relations Institute of Tehran and Iranian Association of Public Relations Specialists. They were briefed on the historical development and current achievement of the Bank.

9-10 octoberBank Rakyat Carnival 2010 at Padang Merdeka, Kota Kinabalu, Sabah received an encouraging response from the people.

2 decemberBank Rakyat received delegates from Cooperative College of Malaysia to enhance collaboration in cooperative sector and strengthen existing ties.

31 July – 1 AugustBank Rakyat Managers Conference 2010 held at the Pullman Hotel, Putrajayaaims to re-evaluate the half year performance of the Bank.

6 AugustBank Rakyat expand its branch network by opening the 125th branch in Bera, Pahang.

19 AugustWith the arrival of the holy month ofRamadan, Bank Rakyat organised the Majlis Berbuka Puasa Media 2010 in Kuala Lumpur.

20 AugustThe takaful service is extended to customers and members through the launch of Takaful Amani in collaboration with Takaful Ikhlas Sdn. Bhd.

Bank Rakyat Annual Report 2010 33