ECM LIBRA INVESTMENT BANK BERHAD (682-X) Financial Statements for the period ended 30 April 2012.

Transcription

1 Financial Statements for the period ended 30 April Unaudited Statements of Financial Position As at 30 April 2012 Group Bank 30-Apr Jan Apr Jan-12 (Restated) (Restated) ASSETS Note Cash and short-term funds 470, , , ,901 Deposits with financial institutions , ,631 Securities held-for-trading 8 476, , , ,985 Securities available-for-sale 9 676, , , ,363 Securities held-to-maturity , , , ,000 Derivative financial assets 11 6,948 6,688 6,948 6,688 Loan, advances and financing , , , ,570 Trade receivables , , , ,809 Statutory deposit with Bank Negara Malaysia 33,124 27,165 33,124 27,165 Other assets 14 22,717 26,697 22,702 26,689 Property, plant and equipment 21,371 21,714 21,371 21,714 Intangible assets 52,500 52,500 52,500 52,500 TOTAL ASSETS 2,894,051 2,710,340 2,893,649 2,710,015 LIABILITIES Deposits from customers 15 1,296,530 1,110,065 1,300,886 1,114,397 Deposits and placements of banks and other financial institutions , , , ,371 Trade payables , , , ,878 Derivative financial liabilities Other liabilities 18 53,917 75,796 53,883 75,762 Amount owing to related companies Deferred tax liabilities 4,166 7,470 4,166 7,470 TOTAL LIABILITIES 2,211,123 2,017,871 2,215,445 2,022,169 EQUITY Share capital 513, , , ,000 Reserves 169, , , , , , , ,846 2,894,057 2,710,340 2,893,649 2,710,015 Net assets per share (RM) The Interim Financial Statements should be read in conjunction with the audited financial statements for the year ended 31 January 2012 of the Group and the Bank. 1

2 Financial Statements for the period ended 30 April Unaudited Condensed Income Statements for the First Quarter ended 30 April 2012 quarter ended Note 30-Apr Apr Apr Apr-11 (Restated) (Restated) Group Revenue 42,748 43,710 42,748 43,710 Interest income Interest expense Net interest income Non-interest income Other non-operating income Net income Operating expenses Operating profit Writeback for losses on loans & financing (Allowance)/writeback bad & doubtful debts Writeback for impairment loss Profit before tax Taxation 19 20,135 21,183 20,135 21, (13,663) (11,762) (13,663) (11,762) 6,472 9,421 6,472 9, ,613 22,527 22,613 22, ,256 32,774 29,256 32, (20,971) (18,338) (20,971) (18,338) 8,285 14,436 8,285 14, (25) 1,785 (25) 1, ,413 17,546 8,413 17, (2,382) (4,369) (2,382) (4,369) Profit after tax 6,031 13,177 6,031 13,177 Other comprehensive income: Net (loss)/gain on avilable-for-sale financial assets (20,755) 10,827 (20,755) 10,827 Income tax relating to components 5,189 (2,707) 5,189 (2,707) of other comprehensive income Other comprehensive income for the (15,566) 8,120 (15,566) 8,120 period, net of tax Total comprehensive income for the (9,535) 21,297 (9,535) 21,297 period Earnings per share ("EPS"): - basic / diluted The Interim Financial Statements should be read in conjunction with the audited financial statements for the year ended 31 January 2012 of the Group 2

3 Financial Statements for the period ended 30 April Unaudited Condensed Income Statements for the First Quarter ended 30 April 2012 quarter ended yearto-date Note 30-Apr Apr Apr Apr-11 (Restated) (Restated) Bank Revenue 42,660 43,666 42,660 43,666 Interest income 19 20,124 21,183 20,124 21,183 Interest expense 20 (13,686) (11,792) (13,686) (11,792) Net interest income 6,438 9,391 6,438 9,391 Non-interest income 21 22,536 22,483 22,536 22,483 Other non-operating income Net income 29,145 32,700 29,145 32,700 Operating expenses 23 (20,967) (18,334) (20,967) (18,334) Operating profit 8,178 14,366 8,178 14,366 Writeback for losses on loans & financing (Allowance)/writeback bad & doubtful debts 25 (25) 1,785 (25) 1,785 Writeback of impairment loss Profit before tax 8,306 17,476 8,306 17,476 Taxation 36 (2,382) (4,369) (2,382) (4,369) Profit after tax 5,924 13,107 5,924 13,107 Other comprehensive income: Net (loss)/gain on avilable-for-sale financial assets (20,755) 10,827 (20,755) 10,827 Income tax relating to components 5,189 (2,707) 5,189 (2,707) of other comprehensive income Other comprehensive income for the (15,566) 8,120 (15,566) 8,120 period, net of tax Total comprehensive income for the (9,642) 21,227 (9,642) 21,227 period Earnings per share ("EPS"): Sen Sen Sen Sen - basic / diluted The Interim Financial Statements should be read in conjunction with the audited financial statements for the year ended 31 January 2012 of the Bank. 3

4 Unaudited Condensed Statement of Changes in Equity for the Financial Period ended 30 April 2012 Share capital Available-forsale revaluation reserve < Non-distributable > Equity compensation reserve Regulatory reserve Statutory reserve Distributable Retained profit Total Group RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Balance as at 1 February ,000 20, ,787 73, ,723 - effect of change in accounting policy ,746 4,746 As restated 513,000 20, ,787 78, ,469 Total comprehensive income for the period - (15,566) ,031 (9,535) Transfer to regulatory reserve ,746 (4,746) - Balance as at 30 April ,000 4, ,746 80,787 79, ,934 Balance as at 1 February , ,720 73, ,012 - effect of change in accounting policy ,353 6, , ,720 79, ,365 Total comprehensive income for the period - 19,812 (400) - 15,067 (1,375) 33,104 Balance as at 31 January ,000 20, ,787 78, ,469 The Interim Financial Statements should be read in conjunction with the audited financial statements for the year ended 31 January 2012 of the Group. 4

5 Financial Statements for the period ended 30 April Unaudited Condensed Statement of Changes in Equity for the Financial Period ended 30 April 2012 < Non-distributable > Distributable Available-forsale revaluation reserve Equity compensation reserve Share capital Regulatory reserve Statutory reserve Retained profit Total Bank RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 Balance as at 1 February as previously reported 513,000 20, ,787 69, ,100 - effect of change in accounting policy ,746 4,746 As restated 513,000 20, ,787 73, ,846 Total comprehensive income for the period - (15,566) ,924 (9,642) Transfer to regulatory reserve ,746 - (4,746) - Balance as at 30 April ,000 4, ,746 80,787 74, ,204 Balance as at 1 February , ,720 69, ,621 - effect of change in accounting policy ,353 6,353 As restated 513, ,720 75, ,974 Total comprehensive income for the period - 19,812 (400) - 15,067 (1,607) 32,872 Balance as at 31 January ,000 20, ,787 73, ,846 The Interim Financial Statements should be read in conjunction with the audited financial statements for the year ended 31 January 2012 of the Bank. 5

6 Unaudited Condensed Statement of Cash Flow for the Financial Period ended 30 April 2012 Group Bank 3 months ended 3 months ended 30-Apr Apr Apr Apr-11 Cash flows from operating activities Profit before tax 8,413 5,578 8,306 18,073 Adjustment for non-cash items 8,778 (10,801) 8,801 2,497 Operating profit before working capital changes 17,191 (5,223) 17,107 20,570 Net changes in operating assets (91,165) (162,820) (90,463) 157,240 Net changes in operating liabilities 197,680 (173,432) 197, ,321 Net cash used in operations 123,706 (341,475) 124, ,131 Cash flows from investing activities Dividend received Net addition to property, plant and equipment (1,017) (5) (1,017) 1,784 Net (additions)/sale of securities (92,534) 85,523 (92,564) (229,512) Net cash (used in)/generated from investing activities (93,544) 85,518 (93,574) (227,273) Cash flows from financing activities Interest paid (13,663) 101,883 (13,686) (12,482) Net cash used in financing activities (13,663) (10) (13,686) (12,482) Net increase/(decrease) in cash and cash equivalents 16,499 (255,967) 17,092 91,376 Effects of exchange rate changes Cash and cash equivalents at beginning of period 241, , , ,411 Cash and cash equivalents at end of period 257, , , ,661 Cash and cash equivalents comprise: Cash and short-term funds 470, , , ,409 Less: Monies held in trust (212,528) (155,088) (212,528) (177,748) 257, , , ,661 The Interim Financial Statements should be read in conjuntion with the audited financial statements for the year ended 31 January 2012 of the Group and the Bank. 6

7 Part A: Explanatory notes pursuant to Financial Reporting Standards ("FRS") Basis of preparation This unaudited quarterly financial report of the Group has been prepared on a historical cost basis, unless otherwise disclosed in the notes to the financial statements and are in accordance with the Companies Act, 1965 and FRS 134 Interim Financial Reporting in Malaysia as modified by Bank Negara Malaysia ("BNM")'s Guidelines. The interim financial report should be read in conjunction with the audited financial statements of the Group for the year ended 31 January Since the previous annual audited financial statements as at 31 January 2012 were issued, the Group has adopted the Malaysian Financial Reporting Standards ("MFRS") framework issued by the Malaysian Accounting Standards Board ("MASB") with effect from 1 January This MFRS framework was introduced by the MASB in order to fully converge Malaysia's existing Financial Reporting Standards ("FRS") framework with the International Financial Reporting Standards ("IFRS") framework issued by the International Accounting Standards Board. Whilst all FRSs issued under the previous FRS framework were equivalent to the MFRSs issued under the MFRS framework, there are some differences in relation to the transitional provisions and effective dates contained in certain of the FRSs. The financial effects of convergence to the MFRS framework and any consequential changes in accounting policies as a result of the convergence are discussed in Note 33 Changes in accounting policies. The following MFRS, IC Interpretation and Amendments to MFRSs have been adopted by the Group during the current period: IC Interpretation 19 Extinguishing Financial Liabilities with Equity Instruments Severe Hyperinflation and Removal of Fixed Dates for First-time Adopters (Amendments to MFRS 1) Disclosures Transfers of Financial Assets (Amendments to MFRS 7) Deferred Tax: Recovery of Underlying Assets (Amendments to MFRS 112) The adoption of the IC Interpretation and Amendments to MFRSs above generally did not have any material impact on the financial results of the Group, as they mainly help to clarify the requirements of or provide further explanations to existing MFRSs. The following MFRSs and IC Interpretations have been issued by the MASB and are not yet effective: Effective for annual periods commencing on or after 1 July 2012 Presentation of Items of Other Comprehensive Income (Amendments to MFRS 101) Effective for annual periods commencing on or after 1 January 2013 MFRS 10 Consolidated Financial Statements MFRS 11 Joint Arrangements MFRS 12 Disclosure of Interests in Other Entities MFRS 13 Fair Value Measurement MFRS 119 Employee Benefits (as amended in June 2011) MFRS 127 Separate Financial Statements (as amended by IASB in May 2011) MFRS 128 Investments in Associates and Joint Ventures (as amended by IASB in May 2011) IC Interpretation 20 Stripping Costs in the Production Phase of a Surface Mine Disclosures - Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 7) 7

8 1 Basis of preparation (cont'd.) Effective for annual periods commencing on or after 1 January 2014 Offsetting Financial Assets and Financial Liabilities (Amendments to MFRS 132) Effective for annual periods commencing on or after 1 January 2015 MFRS 9 Financial Instruments (IFRS 9 issued by IASB in November 2009) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in October 2010) IC Interpretation 20 will not have any financial impact to the Group as it is not relevant to the Group's operations. The financial effects of the above MFRSs and Amendments to MFRSs are still being assessed due to the complexity of these new MFRSs and Amendments to MFRSs, and their proposed changes. 2 Audit report of preceding annual financial statements The auditors report on the Financial Statements for the year ended 31 January 2012 of the was not subjected to any qualification. 3 Seasonality and cyclicality factors The operations of the were not materially affected either by seasonal or cyclical factors. 4 Exceptional items/unusual events There was no unusual item affecting assets, liabilities, equity, net income, or cash flows during the first 30 April Variation from financial estimates reported in preceding financial year There were no changes in estimates of amounts reported in the preceding financial period that would have a material effect in the current quarter results. 6 Dividend paid During the financial 30 April 2012, a single tier dividend of 2.94 sen per ordinary share in respect of the financial ended 31 January 2012, amounting to RM15,067,000 was paid on 20 April

9 7 Deposits with financial institutions 30-Apr Jan-12 RM 000 RM 000 Licensed banks , ,631 8 Securities held-for-trading 30-Apr Jan-12 RM 000 RM 000 At fair value Malaysian Government Securities 30,006 60,708 Bankers' acceptance 313, ,977 Bank Negara Malaysia Notes 105,884 93,225 Quoted Securities - Private Debt Securities 24,958 10,074 - Shares 1,613 2, , ,985 9 Securities available-for-sale 30-Apr Jan-12 RM 000 RM 000 At fair value Malaysian Government Securities 212, ,019 Malaysian Government Investment Issues 167,402 89,122 Cagamas bonds 40,230 40,278 Quoted securities - Shares 124, ,728 - Shares outside Malaysia 15,395 - Unquoted securities - Private debt securities 102, ,027 - Preference shares 2,200 2,200 Unit trust fund 14,040 15,042 less: Impairment loss on securities available-for-sale (2,945) (3,053) 676, ,363 Securities that were reclassified out from held-for-trading to available-for-sale: Carrying value as at beginning of financial year 3,045 3,926 (Loss)/gain on revaluation - recognised in available-for-sale revaluation reserves (200) (881) Carrying value as at end of financial year/period 2,845 3, Securities held-to-maturity 30-Apr Jan-12 RM 000 RM 000 At cost Negotiable instruments of deposit 270, , , ,000 9

10 11 Derivative financial assets/liabilities 30 Apr 2012 Contract / Notional amount Fair value Assets Fair value Liabilities RM 000 RM 000 RM 000 Equity related contracts 75, Embedded derivatives 117,175 6,261 - Foreign exchange related contracts 3, Jan ,306 6, Equity related contracts 78, Embedded derivatives 124,075 6,630 - Foreign exchange related contracts 2, ,947 6, Loans, advances and financing 30-Apr Jan-12 (Restated) RM 000 RM 000 Share margin financing 298, ,591 Term loans 184, ,649 Revolving credit 3,481 8,706 Gross loans, advances and financing 486, ,946 Less: Collective assessment allowance (2,331) (2,376) Total net loans, advances and financing 484, ,570 By residual contractual maturity Maturity within 1 year 439, ,936 More than one year to three years 46,999 47,010 Gross loans, advances and financing 486, ,946 By economic purpose Purchase of securities 337, ,530 Working capital 74,313 79,367 Others 75,033 75,049 Gross loans, advances and financing 486, ,946 By interest rate sensitivity Fixed rate - Share margin financing, term loans and revolving credit 486, ,946 Gross loans, advances and financing 486, ,946 By type of customer Domestic business enterprises 361, ,999 Domestic non-bank financial institution 18,018 18,672 Individuals 106, ,275 Gross loans, advances and financing 486, ,946 10

11 12 Loans, advances and financing (continued) Movements in allowance for bad and doubtful debts 30-Apr Jan-12 (Restated) RM 000 RM 000 Collective assessment allowance Balance at beginning of financial year - as previously reported 8,704 10,176 - effect of change in accounting policy (6,328) (8,471) Restated opening balance 2,376 1,705 Allowance made during the year (45) 671 Balance at end of financial year 2,331 2,376 As % of gross loans, advances and financing less specific allowance 0.5% 0.4% 13 Trade receivables 30-Apr Jan-12 RM 000 RM 000 Amount owing by clients 202, ,279 Amount owing by brokers 178, , , ,853 Less: Individual assessment allowance (1,063) (1,044) 379, , Other assets Group Bank 30-Apr Jan Apr Jan-12 Interest receivables 5,131 7,652 5,131 7,652 Deposits 6,376 6,215 6,377 6,215 Tax recoverable Other receivables, deposits and prepayments 13,273 15,108 13,273 15,108 24,993 28,983 24,978 28,975 Less: Individual assessment allowance (2,276) (2,286) (2,276) (2,286) 22,717 26,697 22,702 26,689 11

12 15 Deposits from customers Group Bank 30-Apr Jan Apr Jan-12 By type of deposits Short-term deposits 1,253,222 1,093,352 1,257,428 1,097,684 Negotiable instruments of deposit 43,307 16,713 43,458 16,713 1,296,530 1,110,065 1,300,886 1,114,397 By type of customers Government and statutory bodies 175, , , ,300 Business enterprises 285, , , ,568 Individuals 55,158 27,066 55,158 27,066 Non-bank financial institutions 779, , , ,863 Domestic other entities ,296,530 1,110,065 1,300,886 1,114,397 Maturity structure of short term deposits and negotiable instruments of deposit are as follows: Due within 6 months 1,222,898 1,090,302 1,227,254 1,094,634 More than 6 months to 1 year 73,632 19,763 73,632 19,763 1,296,530 1,110,065 1,300,886 1,114, Deposits and placements of banks and other financial institutions 30-Apr Jan-12 RM 000 RM 000 Licensed banks 267, ,409 Licensed investment banks 70,042 74, , , Trade payables 30-Apr Jan-12 RM 000 RM 000 Amount owing to clients 123, ,743 Amount owing to brokers 208, ,589 Client's trust monies 187, , , , Other liabilities Group Bank 30-Apr Jan Apr Jan-12 Accruals and deposits received 9,339 6,268 5,859 6,238 Remisiers and dealers trust accounts 27,377 20,710 27,377 20,710 Other payables 17,199 44,406 20,647 44,406 Provision for taxation - 2,830-2,826 53,915 74,214 53,883 74,180 12

13 19 Interest income 30-Apr Apr Apr Apr-11 Group RM 000 RM 000 RM 000 Loans and advances 10,159 12,531 10,159 12,531 Stockbroking clients Short-term funds and deposits with financial institutions 2,545 2,918 2,545 2,918 Securities: - Held-for-trading Available-for-sale 4,491 3,333 4,491 3,333 - Held-to-maturity 1, , Others ,280 19,689 19,280 19,689 Accretion of discounts less amortisation of premiums 855 1, ,494 20,135 21,183 20,135 21,183 Bank Loans and advances 10,159 12,531 10,159 12,531 Stockbroking clients Short-term funds and deposits with financial institutions 2,534 2,918 2,534 2,918 Securities: - Held-for-trading Available-for-sale 4,491 3,333 4,491 3,333 - Held-to-maturity 1, , Others ,269 19,689 19,269 19,689 Accretion of discounts less amortisation of premiums 855 1, ,494 20,124 21,183 20,124 21, Interest expense 30-Apr Apr Apr Apr-11 Group Deposits from customers 11,185 10,724 11,185 10,724 Deposits from banks and other financial institutions 2,445 1,030 2,445 1,030 Others ,663 11,762 13,663 11,762 Bank Deposits from customers 11,185 10,724 11,185 10,724 Deposits from banks and other financial institutions 2,468 1,060 2,468 1,060 Others ,686 11,792 13,686 11,792 13

14 21 Non-interest income Group 30-Apr Apr Apr Apr-11 Fee income - Fees on loans and advances 3,314 2,171 3,314 2,171 - Corporate advisory fees Net brokerage fee 12,700 14,359 12,700 14,359 - Other fee income ,496 17,125 16,496 17,125 Net gain arising from securities held -for-trading - net gain on disposal 3,525 3,100 3,525 3,100 - unrealised revaluation gain gross dividend income ,563 3,362 3,563 3,362 Net gain arising from securities available-for-sale - net gain on disposal gross dividend income Net gain arising from derivatives - net gain on disposal - 1,142-1,142 - unrealised revaluation gain/(loss) 672 (669) 672 (669) Gain on foreign exchange transactions Total non-interest income 22,613 22,527 22,613 22,527 Bank Fee income - Fees on loans and advances 3,314 2,171 3,314 2,171 - Corporate advisory fees Net brokerage fee 12,700 14,359 12,700 14,359 - Other fee income ,419 17,081 16,419 17,081 Net gain arising from securities held -for-trading - net gain on disposal - securities 3,525 3,100 3,525 3,100 - unrealised revaluation gain gross dividend income ,563 3,362 3,563 3,362 Net gain arising from securities available-for-sale - net gain on disposal gross dividend income Net gain arising from derivatives - net gain on disposal - 1,142-1,142 - unrealised revaluation gain/(loss) 672 (669) 672 (669) Gain on foreign exchange transactions Total non-interest income 22,536 22,483 22,536 22,483 14

15 22 Other non-operating income 30-Apr Apr Apr Apr-11 Rental income Gain on disposal of assets Others Operating expenses Group 30-Apr Apr Apr Apr-11 Personnel expenses Salaries, allowance and bonus 8,978 7,159 8,978 7,159 Contributions to defined contribution plan 1,257 1,077 1,257 1,077 Other personnel costs ,617 8,665 10,617 8,665 Establishment costs Depreciation of property, plant and equipment 1, , Amortisation of computer software Rental of premises 1,570 1,298 1,570 1,298 Rental of network and equipment 1,138 1,075 1,138 1,075 Other establishment costs Property plant and equipment written off ,019 4,220 5,019 4,220 Marketing and communication expenses Advertising expenses Entertainment Other marketing expenses Administrative and general expenses Audit fees Legal and professional fees 255 1, ,755 Printing and stationery Insurance, postages and courier Electricity and water charges Telecommunication expenses Travelling and accomodation Others 3,539 2,397 3,539 2,397 4,807 5,241 4,807 5,241 Total operating expenses 20,971 18,338 20,971 18,338 15

16 23 Operating expenses (continued) Bank 30-Apr Apr Apr Apr-11 Personnel expenses Salaries, allowance and bonus 8,978 7,159 8,978 7,159 Contributions to defined contribution plan 1,257 1,077 1,257 1,077 Other personnel costs ,617 8,665 10,617 8,665 Establishment costs Depreciation of property, plant and equipment 1, , Amortisation of computer software Rental of premises 1,570 1,298 1,570 1,298 Rental of network and equipment 1,138 1,075 1,138 1,075 Other establishment costs Property plant and equipment written off ,019 4,220 5,019 4,220 Marketing and communication expenses Advertising expenses Entertainment Other marketing expenses Administrative and general expenses Audit fees Legal and professional fees 253 1, ,753 Printing and stationery Insurance, postages and courier Electricity and water charges Telecommunication expenses Travelling and accomodation Others 3,530 2,397 3,530 2,397 4,803 5,237 4,803 5,237 Total operating expenses 20,967 18,334 20,967 18, Writeback for losses on loans and financing 30-Apr Apr Apr Apr-11 (Restated) (Restated) Collective assessment allowance - Writeback during the financial period (45) 228 (45) (369) 16

17 25 Provision/(writeback) of bad and doubtful debts on trade receivables 30-Apr Apr Apr Apr-11 Individual assessment allowance - Provided during the financial period Written back during the financial period - (21) - (21) Bad debts: - Recovered (13) (1,801) (13) (1,801) 25 (1,785) 25 (1,785) 26 Writeback for impairment loss 30-Apr Apr Apr Apr-11 Writeback for impairment loss on securities: - Available-for-sale (108) (956) (108) (956) 17

18 Interim Financial Statements for the period ended 31 January Capital adequacy The following is the computation of the capital adequacy ratio of the Bank: (a) Risk weighted capital ratios and Tier I and Tier II capital 30-Apr Jan-12 (Restated) RM 000 RM 000 Tier 1 Capital Paid-up share capital 513, ,000 Retained profit 69,055 69,055 Statutory reserve 80,787 80,787 Other reserves Total Tier 1 capital (a) 663, ,054 Tier 2 Capital Collective assessment 2,331 2,376 Total Tier 2 capital (b) 2,331 2,376 Total capital base (a) + (b) 665, ,430 Total risk-weighted assets 1,272,697 1,314,270 % Core capital ratio 52.1% 50.5% Risk weighted capital ratio 52.3% 50.6% The capital adequacy ratios of the Bank are computed in accordance with BNM's revised Risk-Weighted Capital Aqeduacy Framework (RWCAF-Basel II). The Bank have adopted the Standardised Approach for Credit Risk and Market Risk and the Basic Indicator Approach for Operational Risk. The minimum regulatory capital adequacy requirement is 8.0% (Jan 2012: 8%) for the risk-weighted capital ratio. The breakdown of risk-weighted assets (RWA) by each major risk category is as follows: 30-Apr-12 RM' Jan-12 RM'000 Credit risk 547, ,769 Market risk 463, ,595 Operational risk 261, ,906 1,272,697 1,314,270 18

19 28 Debt & equity securities There was no issuance, cancellation, repurchase, resale and repayment of either debt or equity securities during the quarter under review. 29 Valuation of Property, Plant and Equipment There was no valuation of property, plant and equipment of the Group and the Bank in the quarter under review. 30 Material Subsequent Event There were no material events subsequent to 30 April Changes in the Composition of the Bank There are no changes in the composition of the Group and the Bank during the quarter under review. 32 Commitments and Contingencies (a) Capital Commitments As at 30 April 2012, the has commitments in respect of capital expenditure as follows: - RM'000 Authorised and contracted for 1,296 (b) Other Commitments and Contingencies In the normal course of business, the Bank makes various commitments and incurs certain contingent liabilities with legal recourse to its customers. No material losses are anticipated as a result of these transactions. The risk-weighted exposures of the Bank are as follows: Credit Risk Nominal Equivalent Weighted Amount Amount * Amount RM'000 RM'000 RM'000 As at 30 April 2012 Commitments to extend credits with maturity of less than 1 year: - margin facilities 613, ,670 69,448 - term loan facilities 21,295 5,309 43,898 Foreign exchange related contracts 161, , , ,399 As at 31 January 2012 Commitments to extend credits with maturity of less than 1 year: - margin facilities 492,574 98,515 68,415 - term loan facilities 60,667 13,183 32,462 Foreign exchange related contracts 5, , , ,912 * The credit equivalent amount is arrived at using the credit conversion factors as specified by Bank Negara Malaysia. 19

20 33 Performance Review on the Results of the Bank Group For the current quarter under review, the Bank Group recorded a profit before tax of RM8.4 million. This is largely contributed by net brokerage income of RM12.7 million, fee income of RM3.7 million, net gain from trading and investment securities of RM4.4 million and net interest income of RM6.5 million; partially offset by operating expenses of RM21.0 million. 34 Review of Performance of Financial Quarter against Preceding Financial Quarter For the financial quarter under review, the Bank Group achieved a profit before tax of RM8.4 million as compared to the RM3.5 million registered for the immediate preceding quarter. For the current quarter, the Bank Group incurred RM21.0 million operating expenses as compared to RM25.5 million in the immediate previous quarter. 35 Bank s Prospects With the Bank's strong fundamentals and balance sheet position, the Bank is expected to record a satisfactory performance in the current financial year. 36 Income tax expense Group 30-Apr Apr Apr Apr-11 Income tax: period provision Deferred taxation: period transfer from deferred tax 1,885 4,518 1,885 4,518 2,382 4,518 2,382 4,518 Bank 30-Apr Jan Apr Jan-12 Income tax: period provision Deferred taxation: period transfer from deferred tax 1,885 4,518 1,885 4,518 2,382 4,518 2,382 4,518 20

21 37 Changes in accounting policies (a) Transition to the MFRS Framework These unaudited interim financial statements are for part of the period covered by the Bank Group's first annual financial statements prepared under the MFRS framework. Accordingly, the Bank Group has applied MFRS 1 Firsttime Adoption of Malaysian Financial Reporting Standards in their transition to the MFRS framework on 1 February The policy elections made on transition date are listed in the audited financial statements of the Bank Group for the financial year ended 31 January The MFRS did not result in any financial impact to the Group other than the financial impact arising from the change in accounting policy on collective assessment allowance, as the accounting policies adopted under the previous FRS framework were already in line with the requirements of the MFRS framework. The transition to the MFRS framework has resulted in the following changes: MFRS 139 Financial Instruments: Recognition and Measurement ("MFRS 139") - Accounting policy on collective assessment allowance for loans, advances and financing ("loans") Prior to the transition to MFRS 139, the Bank Group had maintained its collective assessment allowance at 1.5% of total outstanding loans, net of individual assessment allowance, in line with Bank Negara Malaysia's transitional provisions under its Guidelines on Classification and Impairment Provisions for Loans/Financing. Upon the transition to MFRS 139 on 1 February 2012, these transitional provisions, which were allowed under the previous FRS framework, were removed and the Bank Group has applied the requirements of MFRS 139 in the determination of collective assessment allowance. Under MFRS 139, collective assessment is performed on loans which are not individually significant based on the incurred loss approach. Loans which are individually assessed and where there is no objective evidence of impairment are also included in the group of loans for collective assessment. These loans are pooled into groups with similar credit risk characteristics and the future cash flows for each group is estimated on the basis of the historical loss experience for such assets and discounted to present value. Collective assessment allowance is made on any shortfall in these discounted cash flows against the carrying value of the group of loans. This change in accounting policy has been accounted for retrospectively and has resulted in a decrease in the collective assessment allowance charged in the income statement and a writeback of collective assessment allowance to the opening retained profits and opening collective assessment allowance in the statement of financial position. BNM requires ELIBB to classify the write back of collective assessment allowance into regulatory reserve until the validation is completed. A summary of the financial impact of the change in accounting policy on the financial statements of the Bank Group are as follows: 31-Jan-12 1-Feb-11 Statement of Financial Position RM'000 RM'000 Loans, advances and financing - collective assessment allowance As previously stated 8,704 10,176 Effect of change in accounting policy (6,328) (8,471) As restated 2,376 1,705 Retained profits As previously stated 73,678 73,446 Effect of change in accounting policy 4,746 6,353 As restated 78,424 79,799 Statement of Comprehensive Income 1st 30-Apr-11 RM'000 Allowance for inpairment on loans, advances and financing - collective assessment allowance As previously stated 966 Effect of change in accounting policy (597) As restated

22 37 Changes in accounting policies (cont'd.) (b) Financial impact of changes in accounting policies In the preparation of the Group's and the Bank's opening MFRS statements of financial position, the amounts previously reported in accordance with the previous FRS framework have been adjusted for the financial effects of the adoption of the MFRS framework. A reconciliation of these changes is summarised in the following tables: (i) Statement of Financial Position Under the Effect of Under the FRS transition to MFRS Group Framework MFRS 139 Framework As at 31 January 2012 RM'000 RM'000 RM'000 ASSETS Cash and short-term funds 403, ,218 Deposits with financial institutions 20,631 20,631 Securities held-for-trading 360, ,985 Securities available-for-sale 673, ,363 Securities held-to-maturity 200, ,000 Derivative financial assets 6,688 6,688 Loans, advances and financing 550,242 6, ,570 Trade receivables 360, ,809 Other assets 26,697 26,697 Statutory deposit with Bank Negara Malaysia 27,165 27,165 Property, plant and equipment 21,714 21,714 Intangible assets 52,500 52,500 TOTAL ASSETS 2,704,012 2,710,340 LIABILITIES AND EQUITY LIABILITIES Deposits from customers 1,110,065 1,110,065 Deposits and placements of banks and other financial institutions 341, ,371 Derivative financial liabilities Trade payables 482, ,878 Other liabilities 74,214 1,582 75,796 Amount owing to related companies Deferred tax liabilities 7,470 7,470 TOTAL LIABILITIES 2,016,289 2,017,871 EQUITY Share capital 513, ,000 Reserves 174,723 4, ,469 TOTAL EQUITY 687, ,469 TOTAL LIABILITIES AND EQUITY 2,704,012 2,710,340 Net assets per share (RM)

23 37 Changes in accounting policies (cont'd.) (b) Financial impact of changes in accounting policies (cont'd.) (i) Statement of Financial Position (cont'd.) Under the Effect of Under the FRS transition to MFRS Group Framework MFRS 139 Framework As at 1 February 2011 RM'000 RM'000 RM'000 ASSETS Cash and short-term funds 389, ,669 Deposits with financial institutions 21,489 21,489 Securities held-for-trading 353, ,818 Securities available-for-sale 519, ,479 Securities held-to-maturity 70,000 70,000 Derivative financial assets 9,552 9,552 Loans, advances and financing 649,880 8, ,351 Trade receivables 482, ,122 Other assets 15,602 15,602 Statutory deposit with Bank Negara Malaysia 8,834 8,834 Investment in associated company - - Deferred tax assets 10,687 10,687 Property, plant and equipment 25,534 25,534 Intangible assets 52,500 52,500 TOTAL ASSETS 2,609,166 2,617,637 LIABILITIES AND EQUITY LIABILITIES Deposits from customers 1,075,123 1,075,123 Deposits and placements of banks and other financial institutions 201, ,008 Derivative financial liabilities - - Trade payables 576, ,600 Other liabilities 103,189 2, ,307 Amount owing to related companies TOTAL LIABILITIES 1,956,154 1,958,272 EQUITY Share capital 513, ,000 Reserves 140,012 6, ,365 TOTAL EQUITY 653, ,365 TOTAL LIABILITIES AND EQUITY 2,609,166 2,617,637 Net assets per share (RM)

24 37 Changes in accounting policies (cont'd.) (b) Financial impact of changes in accounting policies (cont'd.) (ii) Reconciliation of Statement of Comprehensive Income Under the Effect of Under the FRS transition to MFRS Group Framework MFRS 139 Framework 1st Quarter ended 30 April 2011 RM'000 RM'000 RM'000 Revenue 43,710 43,710 Interest income 21,183 21,183 Interest expense (11,762) (11,762) Net interest income 9,421 9,421 Non-interest income 22,527 22,527 Other non-operating income Net income 32,774 32,774 Operating expenses (18,338) (18,338) Operating profit 14,436 14,436 Share of loss of an associated company - - Writeback of losses on loans, advances and financing 966 (597) 369 Writeback of impairment allowance for bad and doubtful debts 1,785 1,785 Writeback of impairment loss Writeback of impairment loss Profit before tax 18,143 17,546 Income tax expense (4,518) 149 (4,369) Profit after tax 13,625 13,177 Other comprehensive income: Net gain on available-for-sale financial assets 10,827 10,827 of other comprehensive income (2,707) (2,707) Other comprehensive income for the period, net of tax 8,120 8,120 Total comprehensive income for the period 21,745 21,297 Earnings per share ("EPS"): Sen Sen - basic / diluted * (iii) Statement of Cash Flow There are no material differences between the statement of cash flow presented under the MFRSs and the statement of cash flow presented under FRSs. 24

25 37 Changes in accounting policies (cont'd.) (b) Financial impact of changes in accounting policies (cont'd.) (iv) Capital adequacy The adjustments to the financial statements of the Group as a result of the transition to the MFRS framework and the changes in accounting policies, as discussed above, also had consequential effects on the comparative capital adequacy ratios of the Bank. These are summarised below: As at 31 January 2012 As at 1 February 2011 As previously As restated: As previously As restated: stated: Under Under the stated: Under Under the the FRS MFRS the FRS MFRS Bank Framework Framework Framework Framework Tier 1 capital (RM'000) 663, , , ,622 Capital base (RM'000) 671, , , ,327 Tier 1 capital ratio 50.5% 50.5% 81.8% 81.8% Risk-weighted capital ratio 51.1% 50.6% 83.1% 82.0% 25