INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2016

Transcription

1 FOR THE FINANCIAL QUARTER ENDED INTERIM FINANCIAL STATEMENTS 31 MARCH 2016 Registered Office Ground Floor, East Block Wisma Selangor Dredging 142-B Jalan Ampang Kuala Lumpur

2 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2016 Unaudited Audited Unaudited Audited Note 31 March 31 December 31 March 31 December ASSETS Cash and short-term funds 184, , , ,806 Deposits and placements with banks and other financial institutions 9 261, , , ,090 Hedging financial instruments , ,291 Securities held-for-trading 11 5,118 5,510 5,118 5,510 Securities held-to-maturity 12 1,454,217 1,469,290 1,454,217 1,469,290 Financing and advances 13 4,977,382 4,983,507 4,977,382 4,983,507 Other assets 36,790 26,515 36,756 26,515 Statutory deposit with Bank Negara Malaysia 185, , , ,758 Investment properties 105, , , ,000 Property and equipment 11,102 10,631 11,102 10,631 Intangible assets 28,134 27,943 28,134 27,943 Deferred tax assets 62,051 62,051 62,051 62,051 Total Assets 7,311,437 7,315,392 7,311,403 7,315,392 LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Deposits from customers 14 5,474,420 5,110,626 5,474,420 5,110,626 Deposits and placements of banks and other - financial institutions ,165 1,108, ,165 1,108,059 Hedging financial instruments Bills and acceptances payable 9,680 18,737 9,680 18,737 Other liabilities 65,502 59,550 65,502 59,550 Subordinated Sukuk 260, , , ,928 Total Liabilities 6,577,887 6,582,902 6,577,887 6,582, Shareholder's equity Share capital 1,000,000 1,000,000 1,000,000 1,000,000 Reserves (266,450) (267,510) (266,484) (267,510) Total Shareholder's Equity 733, , , ,490 Total Liabilities and Shareholder's Equity 7,311,437 7,315,392 7,311,403 7,315,392 COMMITMENTS AND CONTINGENCIES 22 1,072,362 1,314,720 1,072,362 1,314,720 CAPITAL ADEQUACY 24 CET 1 / Core capital ratio % % % % Risk-weighted capital ratio % % % % The Interim Financial Statements should be read in conjuction with the audited financial statement s of the Group and the Bank for the year ended 31 December

3 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 1ST QUARTER ENDED 31 MARCH st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Note Revenue 94,120 92,615 94,120 92,615 Income derived from investment of depositors' funds and others 16 85,447 84,875 85,447 84,875 Income derived from investment of shareholder's funds 17 8,673 7,740 8,673 7,740 Allowance for impairment on financing 18 (259) (4,015) (259) (4,015) Other expenses directly attributable to the investment of the depositors' funds (4) (4) (4) (4) Total distributable income 93,857 88,596 93,857 88,596 Income attributable to depositors 19 (51,639) (49,040) (51,639) (49,040) Total Net Income 42,218 39,556 42,218 39,556 Personnel expenses (20,062) (17,128) (20,062) (17,128) Other overheads and expenditures (21,132) (21,766) (21,132) (21,766) Profit before zakat and taxation 1, , Zakat Taxation Net profit for the period 1, , The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December

4 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 1ST QUARTER ENDED 31 MARCH st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Note Revenue 94,076 92,615 94,076 92,615 Income derived from investment of depositors' funds and others 16 85,447 84,875 85,447 84,875 Income derived from investment of shareholder's funds 17 8,629 7,740 8,629 7,740 Allowance for impairment on financing 18 (259) (4,015) (259) (4,015) Other expenses directly attributable to the investment of the depositors' funds (4) (4) (4) (4) Total distributable income 93,813 88,596 93,813 88,596 Income attributable to depositors 19 (51,639) (49,040) (51,639) (49,040) Total Net Income 42,174 39,556 42,174 39,556 Personnel expenses (20,040) (17,128) (20,040) (17,128) Other overheads and expenditures (21,108) (21,766) (21,108) (21,766) Profit before zakat and taxation 1, , Zakat Taxation Net profit for the period 1, , The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December

5 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 1ST QUARTER ENDED 31 MARCH 2016 Share Statutory Accumulated capital reserve losses Total At 1 January ,000,000 9,855 (277,365) 732,490 Total comprehensive income for the financial period - - 1,024 1,024 Transfer to statutory reserve (513) - At 31 March ,000,000 10,368 (276,854) 733,514 (514) 510 At 1 January ,000,000 3,975 (283,244) 720,731 Total comprehensive income for the financial period ,759 11,759 Transfer to statutory reserve - 5,880 (5,880) - At 31 December ,000,000 9,855 (277,365) 732,490 The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December

6 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 1ST QUARTER ENDED 31 MARCH 2016 Non-Distributable Share Statutory Accumulated capital reserve losses Total At 1 January ,000,000 9,855 (277,365) 732,490 Total comprehensive income for the financial period - - 1,026 1,026 Transfer to statutory reserve (513) - At 31 March ,000,000 10,368 (276,852) 733,516 (514) 512 At 1 January ,000,000 3,975 (283,244) 720,731 Total comprehensive income for the financial period ,759 11,759 Transfer to statutory reserve - 5,880 (5,880) - At 31 December ,000,000 9,855 (277,365) 732,490 The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December

7 INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE 1ST QUARTER ENDED 31 MARCH 2016 CASH FLOWS FROM OPERATING ACTIVITIES 31 March 31 December 31 March 31 December Profit before zakat and taxation 1, , Adjustments for: Depreciation of property and equipment 8,719 1,586 8,719 1,586 Amortisation of intangible assets 12,213 3,304 12,213 3,304 Net gain on disposal of property,plant & equipment Allowance for impairment on financing 1,688 5,887 1,688 5,887 Bad debts on financing - Written off Bad debts on financing - Recovered (1,914) (1,872) (1,914) (1,872) Allowance for doubtful debt Unrealised loss on revaluation of - securities held-for-trading / investment properties 562 (375) 562 (375) Unrealised (gain)/loss from foreign exchange translations (6,500) 2,293 (6,500) 2,293 Operating cashflow before workings capital changes 16,277 11,485 16,279 11,485 (Increase) / decrease in Operating Assets Deposits and placements with banks and other financial institutions (7,904) (14,277) (7,904) (14,277) Hedging financial instruments (562) - (562) - Financing and advances 74,512 (281,357) 74,512 (281,357) Other assets (1,440) (2,323) (1,474) (2,360) Statutory deposit with Bank Negara Malaysia 35,605 (5,000) 35,605 (5,000) - (Decrease) / increase in Operating Liabilities - Deposits from customers 34,999 (38,433) 34,999 (38,433) Deposits and placements of banks and - other financial institutions (134,957) 138,460 (134,957) 138,460 Hedging financial instruments - (606) - (606) Bills and acceptances payable (5,457) 2,586 (5,457) 2,586 Other liabilities 21,183 17,166 21,215 17,166 Net cash (used in)/generated from operating activities 32,256 (172,299) 32,256 (172,336) 6

8 INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE 1ST QUARTER ENDED 31 MARCH 2016 CASH FLOWS FROM INVESTING ACTIVITIES 31 March 31 December 31 March 31 December Purchase of property and equipment (5,360) (2,996) (5,360) (2,996) Purchase of intangible asset (10,747) (1,198) (10,747) (1,198) Proceeds from sale of fixed assets Securities held-to-maturity (11,895) (2,313) (11,895) (2,313) Net cash used in investing activities (28,002) (6,507) (28,002) (6,507) CASH FLOWS FROM FINANCING ACTIVITY Issuance of Subordinated Sukuk Net cash generated from financing activities NET DECREASE IN CASH AND SHORT-TERM FUNDS 4,254 (178,806) 4,254 (178,843) Cash and short-term funds as at 1 January 179, , , ,672 CASH AND SHORT-TERM FUNDS 184, , , , ,023 The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December

9 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134") AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 1. BASIS OF PREPARATION The unaudited condensed interim financial statements have been prepared in accordance with the applicable requirements of MFRS 134: Interim Financial Reporting in Malaysia issued by Malaysian Accounting Standards Board (MASB), Financial Reporting for Islamic Banking Institution policy issued by Bank Negara Malaysia (BNM), the provisions of the Companies Act, 1965 and Shariah requirements. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 December The explanatory notes attached to the consolidated condensed interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the year ended 31 December ACCOUNTING POLICIES The significant accounting policies and methods of computation applied in the unaudited condensed interim financial statements are consistent with those adopted in the most recent audited financial statements for the year ended 31 December 2015, except for the adoption of the following: Annual improvements to MFRSs Cycle Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation and Amortisation Amendments to MFRS 116 and MFRS 141: Agriculture : Bearer Plants Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture MFRS 11: Accounting for acquisitions of interest in Joint Operations Amendments to MFRS 127: Equity Method in Separate Financial Statements Amendments to MFRS 101 : Disclosure initiatives Amendments to MFRS 10, MFRS 12, and MFRS 128 : Investment Entities: Applying the Consolidation Exception MFRS 14: Regulatory Deferral Accounts The adoption of MFRSs above do not have any financial impact on the Group and the Bank 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 the financial period beginning on or after 1 January 2018: MFRS 15: Revenue from Contracts with Customers Effective for the financial period beginning on or after 1 January 2018: MFRS 9: Financial Instruments (IFRS 9 Financial Instruments as issued by IASB in July 2014) 8

10 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134") AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA (CONTINUED) 3. AUDITORS REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS The auditors report on the audited annual financial statements for the financial year ended 31 December 2015 was not qualified. 4. COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS The operations of the Group and the Bank were not materially affected by any seasonal or cyclical factors in the 1st Quarter Ended 31 March UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE There were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group and the Bank in 1st Quarter Ended 31 March CHANGES IN ESTIMATE There were no changes in estimates of amounts reported in prior financial years that have a material effect in the 1st Quarter Ended 31 March DEBT AND EQUITY SECURITIES There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in the 1st Quarter Ended 31 March DIVIDENDS PAID There were no dividends paid during the 1st quarter ended 31 March

11 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 9. DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Foreign financial institutions 261, , , , HEDGING FINANCIAL INSTRUMENTS Notional Fair Value Amount Assets Liabilities RM'000 RM'000 RM'000 Unaudited 31 March 2016 Foreign currency forward contracts Audited 31 Decemebr 2015 Foreign currency forward contracts 12,449 1,291 2 Notional Fair Value Amount Assets Liabilities RM'000 RM'000 RM'000 Unaudited 31 March 2016 Foreign currency forward contracts Audited 31 Decemebr 2015 Foreign currency forward contracts SECURITIES HELD-FOR-TRADING Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December At fair value Quoted securities: Unit Trust 5,118 5,510 5,118 5, SECURITIES HELD-TO-MATURITY Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December At amortised cost Unquoted : Islamic government securities in Malaysia 1,404,085 1,418,390 1,404,085 1,418,390 Islamic private debt securities in Malaysia 50,132 50,900 50,132 50,900 1,454,217 1,469,290 1,454,217 1,469,

12 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (a) Financing and advances analysed by types and Shariah contracts are as follows: Unaudited 31 March 2016 Bai Total net Bithaman financing and Ajil Qard advances RM'000 RM'000 RM'000 At amortised cost Term Financing: Corporate financing 3,064,521-3,064,521 Personal financing 651, ,323 Home financing 1,176,190-1,176,190 SME financing 60,114-60,114 Vehicle financing 77,101-77,101 Shop-house financing 38,765-38,765 Charge cards - 1,591 1,591 Gross financing and advances 5,068,014 1,591 5,069,605 Less: Impairment allowance - Collective assessment (83,870) - Individual assessment (8,353) Total net financing and advances 4,977,382 - Audited 31 December 2015 Total net Bai Bithaman financing and Ajil Qard advances RM'000 RM'000 RM'000 At amortised cost Term Financing: Corporate financing 3,045,754-3,045,754 Personal financing 669, ,611 Home financing 1,182,512-1,182,512 SME financing 62,935-62,935 Vehicle financing 76,865-76,865 Shop-house financing 39,121-39,121 Charge cards - 1,902 1,902 Gross financing and advances 5,076,798 1,902 5,078,700 Less: Impairment allowance - Collective assessment (87,732) - Individual assessment (7,461) Total net financing and advances 4,983,507-11

13 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (a) Financing and advances analysed by types and Shariah contracts are as follows: Unaudited 31 March 2016 Bai Total net Bithaman financing and Ajil Qard advances RM'000 RM'000 RM'000 At amortised cost Term Financing: Corporate financing 3,064,521-3,064,521 Personal financing 651, ,323 Home financing 1,176,190-1,176,190 SME financing 60,114-60,114 Vehicle financing 77,101-77,101 Shop-house financing 38,765-38,765 Charge cards - 1,591 1,591 Gross financing and advances 5,068,014 1,591 5,069,605 Less: Impairment allowance - Collective assessment (83,870) - Individual assessment (8,353) Total net financing and advances 4,977,382 - Audited 31 December 2015 Total net Bai Bithaman financing and Ajil Qard advances RM'000 RM'000 RM'000 At amortised cost Term Financing: Corporate financing 3,045,754-3,045,754 Personal financing 669, ,611 Home financing 1,182,512-1,182,512 SME financing 62,935-62,935 Vehicle financing 76,865-76,865 Shop-house financing 39,121-39,121 Charge cards - 1,902 1,902 Gross financing and advances 5,076,798 1,902 5,078,700 Less: Impairment allowance - Collective assessment (87,732) - Individual assessment (7,461) Total net financing and advances 4,983,507 4,983,507 12

14 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (b) Financing and advances analysed by type of customers are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Domestic non-bank financial institutions 339, , , ,724 Domestic business enterprise 1,245,063 1,196,725 1,245,063 1,196,725 Individuals 1,943,379 1,970,010 1,943,379 1,970,010 Foreign entities 1,541,700 1,530,241 1,541,700 1,530,241 5,069,605 5,078,700 5,069,605 5,078, (c) Financing and advances analysed by profit rate sensitivity are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Fixed rate: Corporate financing 1,538,777 1,536,454 1,538,777 1,536,454 Personal financing 651, , , ,611 SME financing 60,129 62,935 60,129 62,935 Home financing 14,930 15,505 14,930 15,505 Vehicle financing 77,101 76,865 77,101 76,865 Charge card 1,591 1,902 1,591 1,902 Shop-house financing (d) Variable rate: Home financing 1,161,260 1,167,007 1,161,260 1,167,007 Shop-house financing 37,799 38,140 37,799 38,140 Corporate financing 1,525,728 1,509,300 1,525,728 1,509,300 5,069,605 5,078,700 5,069,605 5,078, Financing and advances analysed by maturity structure are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Due within three months 598, , , ,003 More than three months to one year 509, , , ,445 More than one year to five years 2,177,792 2,157,988 2,177,792 2,157,988 More than five years 1,783,981 1,873,264 1,783,981 1,873,264 5,069,605 5,078,700 5,069,605 5,078, (e) Financing and advances analysed by geographical distribution are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Malaysia 3,506,580 3,535,114 3,506,580 3,535,114 Saudi Arabia 1,525,728 1,509,301 1,525,728 1,509,301 Other Countries 37,297 34,285 37,297 34,285 5,069,605 5,078,700 5,069,605 5,078,

15 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (f) Financing and advances analysed by economic purpose are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December (g) Purchase of securities 1,575,886 1,589,531 1,575,886 1,589,531 Working capital 1,372,835 1,321,999 1,372,835 1,321,999 Purchase of property - residential property 1,186,135 1,193,020 1,186,135 1,193,020 Personal use 651, , , ,611 Purchase of commercial complex 95, ,080 95, ,080 Purchase of vehicles 77,101 76,865 77,101 76,865 Purchase of shop-house 51,468 48,809 51,468 48,809 Others 39,132 32,923 39,132 32,923 Construction 16,900 15,611 16,900 15,611 Charge card 1,591 1,902 1,591 1,902 Purchase of industrial buildings and factories 1,338 1,349 1,338 1,349 5,069,605 5,078,700 5,069,605 5,078, Financing and advances analysed by sectors are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Household 1,944,971 1,970,026 1,944,971 1,970,026 Telecommunication 1,525,727 1,509,301 1,525,727 1,509,301 Finance intermediation 384, , , ,643 Manufacturing 332, , , ,497 Wholesale & Retail trade 348, , , ,254 Construction 237, , , ,389 Real estate, renting and business activities 246, , , ,975 Electricity, gas and water supply 27,140 35,941 27,140 35,941 Transportation 18,194 19,944 18,194 19,944 Agriculture, hunting and related service activities 2,538 2,733 2,538 2,733 Fishing, Operation of Fish Hatcheries, Fish Farms 1,339 1,349 1,339 1,349 Other business Forestry, logging and related services activities ,069,605 5,078,700 5,069,605 5,078,700 - (h) Movements in impaired financing and advances Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December At 1 January 31,038 75,098 31,038 75,098 Impaired during the financial period / year 35, ,987 35, ,987 Reclassified as non impaired (12,937) (26,353) (12,937) (26,353) Recoveries (10,869) (74,701) (10,869) (74,701) Write-off (5,141) (45,993) (5,141) (45,993) 37,427 31,038 37,427 31,038 6,389 Ratio of net impaired financing and advances to gross financing and advances less individual impairment 0.57% 0.46% 0.57% 0.46% Included in amount classified as impaired during the financial year is profit accrued on impaired financing of RM16,285,055 (2015: RM85,280,054). 14

16 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (i) Movements in the allowances for impaired financing and advances Collective assessment allowance Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December At 1 January 87,732 86,569 87,732 86,569 Allowance made during the period / year (Note 18 (b)) , ,842 Amount written off (4,658) (9,679) (4,658) (9,679) Closing balance 83,870 87,732 83,870 87, As % of total gross financing and advances less individual impairment allowances 1.66% 1.73% 1.66% 1.73% Individual assessment allowance (j) (k) At 1 January 7,461 43,142 7,461 43,142 Allowance made during the financial year (Note 18(a)) 1, , Amount recovered during the financial year (Note 18(a)) (302) (460) (302) (460) Amount written off - (35,726) - (35,726) Closing balance 8,353 7,461 8,353 7, Impaired financing analysed by geographical distribution are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Malaysia 37,427 31,038 37,427 31,038 37,427 31,038 37,427 31, Impaired financing analysed by economic purpose are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December (l) Purchase of properties - residential 7,360 12,104 7,360 12,104 Personal use 9,383 11,041 9,383 11,041 Working capital 18,829 6,990 18,829 6,990 Purchase of transport vehicles 1, , Charge card Purchase of shophouse ,427 31,038 37,427 31, Impaired financing analysed by sector are as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Household 18,598 24,048 18,598 24,048 Manufacturing 18,777 6,909 18,777 6,909 Construction Other business Wholesale & retail trade Real estate, renting and business activities Transportation ,427 31,038 37,427 31,038-15

17 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 14. DEPOSITS FROM CUSTOMERS (a) By type of deposit Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Savings deposits Qard 356, , , ,863 Mudarabah Demand deposits Qard 658, , , ,855 Mudarabah 128, , , ,992 Term deposit Commodity Murabahah 4,101,749 3,768,322 4,101,749 3,768,322 General investment account Mudarabah 23,043 26,259 23,043 26,259 Wakalah 204, , , ,278 (b) Other deposits 821 1, ,057 5,474,420 5,110,626 5,474,420 5,110, By type of customer Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Business enterprises 1,790,717 1,722,484 1,790,717 1,722,484 Government and statutory bodies 788, , , ,530 Individuals 335, , , ,174 Others 2,559,879 2,483,438 2,559,879 2,483,438 5,474,420 5,110,626 5,474,420 5,110, (c) By maturity structure Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Due within three months 3,955,284 3,480,352 3,955,284 3,480,352 More than three months to one year 1,463,492 1,628,799 1,463,492 1,628,799 More than one year to five years 55,644 1,475 55,644 1,475 5,474,420 5,110,626 5,474,420 5,110, DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Non-Mudharabah Funds Licensed Islamic banks 330, , , ,836 Licensed financial institutions 437, , , , ,165 1,108, ,165 1,108,

18 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 16. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Income derived from investment of: (i) General investment deposits (ii) Other deposits 85,030 84,371 85,030 84,371 85,447 84,875 85,447 84, (i) Income derived from investment of general investment deposits 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Finance income and hibah Financing and advances Money at call and deposit with financial institutions Total finance income and hibah (ii) Income derived from investment of other deposits 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Finance income and hibah Financing and advances 68,850 69,758 68,850 69,758 Securities held-to-maturity 14,681 13,877 14,681 13,877 Money at call and deposit with financial institutions 1, , Accretion of discount ,030 84,371 85,030 84,

19 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 16. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS (Continued) 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Income derived from investment of: (i) General investment deposits (ii) Other deposits 85,030 84,371 85,030 84,371 85,447 84,875 85,447 84,875 - (i) Income derived from investment of general investment deposits 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March (ii) Finance income and hibah Financing and advances Money at call and deposit with financial institutions Total finance income and hibah Income derived from investment of other deposits 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Finance income and hibah Financing and advances 68,850 69,758 68,850 69,758 Securities held-to-maturity 14,681 13,877 14,681 13,877 Money at call and deposit with financial institutions 1, , Accretion of discount ,030 84,371 85,030 84,

20 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 17. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS' FUNDS - - 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Finance income and hibah Money at call and deposit with financial institutions Total finance income and hibah Other operating income - Net gain from foreign exchange translations 2,488 2,144 2,488 2,144 - Rental income 1,140 1,500 1,140 1,500 - Realised gain on gold Unrealised loss on revaluation of securities held-for-trading Others Other income - Service charges 1,699 1,943 1,699 1,943 - Commission received 2, , ,673 7,740 8,673 7, st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Finance income and hibah Money at call and deposit with financial institutions Total finance income and hibah Other operating income - Net gain from foreign exchange translations 2,488 2,144 2,488 2,144 - Rental income 1,140 1,500 1,140 1,500 - Realised gain on gold Unrealised loss on revaluation of securities held-for-trading Others Other income - Service charges 1,655 1,943 1,655 1,943 - Commission received 2, , ,629 7,740 8,629 7,

21 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 18. ALLOWANCE FOR IMPAIRMENT ON FINANCING 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter 1, , written back (302) (200) (302) (200) (b) Collective assessment allowance - (write-back) / provided during financial quarter 796 5, ,783 1,688 5,887 1,688 5,887 (c) Bad debts on financing - recovered (1,914) (1,872) (1,914) (1,872) - written off , , st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter 1, , written back (302) (200) (302) (200) (b) Collective assessment allowance - (write-back) / provided during financial quarter 796 5, ,783 1,688 5,887 1,688 5,887 (c) Bad debts on financing - recovered (1,914) (1,872) (1,914) (1,872) - written off , ,

22 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 19. INCOME ATTRIBUTABLE TO DEPOSITORS 1st Quarter Ended 31 March 31 March 31 March 31 March Deposits from customers - Non-Mudharabah 31,074 41,539 31,074 41,539 - Mudharabah 556 2, ,134 - Wakalah 2,286-2,286-33,916 43,673 33,916 43,673 Deposits and placements of banks and other financial institutions - Non-Mudharabah 17,723 5,367 17,723 5,367 51,639 49,040 51,639 49,040 1st Quarter Ended Period Ended 31 March 31 March 31 March 31 March Deposits from customers - Non-Mudharabah 31,074 41,539 31,074 41,539 - Mudharabah 556 2, ,134 - Wakalah 2,286-2,286-33,916 43,673 33,916 43,673 Deposits and placements of banks and other financial institutions - Non-Mudharabah 17,723 5,367 17,723 5,367 51,639 49,040 51,639 49, SUBSEQUENT EVENTS Period Ended There were no material events subsequent to the end of the reporting date that require disclosure or adjustments to the unaudited interim financial statements. 21. CHANGES IN THE COMPOSITION OF THE GROUP There were no changes in the composition of the Group since the last audited financial statements as at 31 December

23 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 22. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group made various commitments and incurred certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. The commitments and contingencies and the related risk-weighted exposures of the Group as are as follows: Unaudited Audited 31 March December 2015 Credit Risk Credit Risk Principal equivalent weighted Principal equivalent weighted amount amount amount amount amount amount RM'000 RM'000 Direct credit substitute Transaction-related contingent items 331, , , , , ,117 Trade-related contingencies 22,370 4,474 4,030 39,897 7,979 7,173 Irrevocable commitments to extend credit: - Maturity not exceeding one year 448,499 89,700 89, , , ,188 - Maturity exceeding one year 268, , , , , ,656 Foreign exchange-related contracts 1, , Miscellaneous ,449 1,427 1,426 1,072, , ,733 1,314, , ,559 - Unaudited Audited 31 March December 2015 Credit Risk Credit Risk Principal equivalent weighted Principal equivalent weighted amount amount amount amount amount amount RM'000 RM'000 Direct credit substitute Transaction-related contingent items 331, , , , , ,117 Trade-related contingencies 22,370 4,474 4,030 39,897 7,979 7,173 Irrevocable commitments to extend credit: Maturity not exceeding one year 448,499 89,700 89, , , ,188 - Maturity exceeding one year 268, , , , , ,656 Foreign exchange-related contracts 1, , Miscellaneous ,449 1,427 1,426 1,072, , ,733 1,314, , ,559 49,216 48,826 1,314,720 The Credit Equivalent and Risk Weighted for the Bank are computed in accordance with BNM's Capital Adequacy Framework for Islamic Banks (CAFIB): Standardised Approach for Credit and Market Risk, and Basic Indicator Approach for Operational Risk (Basel II) respectively. 22

24 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT Market Risk - Profit Rate Risk is exposed to various risks associated with the effects of fluctuations in the prevailing levels of yield/profit rate on its financial position. The rate of return risk is the potential impact of market factors affecting rates on returns in comparison with the expected rates of return for investment account holders. Yield/profit rate is monitored and managed by the ALCO to protect the income of its operations. The assets and liabilities at carrying amount are categorised by the earlier of the next contractual repricing dates and maturity dates as follows: Non-trading book Average Up to 1 > 1-3 > Non-profit Trading effective Unaudited month months months years > 5 years sensitive book Total profit rate 31 March 2016 % Assets Cash and short term funds 105, , , Hedging financial instruments Deposit and placement with other FI / Institutions - 62, , , , Securities held-for-trading ,118 5,118 - Securities held-to-maturity ,570 1,000,000 5,647-1,454, Financing and advances - performing 1,451, , ,179 2,133, ,769 41,588-5,032,177 - Non performing (1) (54,795) - (54,795) Other assets (2) , ,835 Total assets 1,557, , ,874 2,582,372 1,584, ,242 5,123 7,311,

25 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (Continued) (Continued) Average Up to 1 > 1-3 > Non-profit Trading effective Unaudited (Continued) month months months years > 5 years sensitive book Total profit rate 31 March 2016 (Continued) % Liabilities Deposits from customers 1,290,942 1,805,625 1,450,968 55, ,239-5,474, Deposits and placements of banks and other financial institutions 356, ,354 59, , , Hedging financial instruments Bills and acceptance payable ,681-9,681 - Other liabilities ,502-65,502 - Subrodinated Sukuk , ,121 Total liabilities 1,647,158 2,155,979 1,510,196 55, , ,789-6,577,887 Shareholders' fund , ,550 Total liabilities and shareholders' fund 1,647,158 2,155,979 1,510,196 55, ,121 1,682,339-7,311,437-24

26 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) (Continued) Up to 1 > 1-3 > Non-profit Trading Unaudited (Continued) month months months years > 5 years sensitive book 31 March 2016 (Continued) RM'000 RM'000 RM'000 On-balance sheet profit sensitivity gap (90,071) (1,777,009) (808,322) 2,526,728 1,324,648 (1,181,097) 5,123 Off-balance sheet profit sensitivity gap ,072,362 - Total profit sensitivity gap (90,071) (1,777,009) (808,322) 2,526,728 1,324,648 (108,735) 5,123 Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia. 25

27 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) Non-trading book Average Up to 1 > 1-3 > Non-profit Trading effective Unaudited month months months years > 5 years sensitive book Total profit rate 31 March 2016 % Assets Cash and short term funds 105, , , Hedging financial instruments Deposit and placement with other FI / Institutions - 62, , , , Securities held-for-trading ,118 5,118 Securities held-to-maturity ,570 1,000,000 5,647-1,454, Financing and advances - performing (54,795) - (54,795) - Non performing (1) 1,451, , ,179 2,133, ,769 41,588-5,032,178 Other assets (2) , ,800 Total assets 1,557, , ,874 2,582,372 1,584, ,208 5,123 7,311,403 (0.17)

28 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) (Continued) Average Up to 1 > 1-3 > Non-profit Trading effective Unaudited (Continued) month months months years > 5 years sensitive book Total profit rate 31 March 2016 (Continued) % Liabilities Deposits from customers 1,290,942 1,805,625 1,450,968 55, ,239-5,474, Deposits and placements of banks and other financial institutions 356, ,354 59, , , Hedging financial instruments Bills and acceptance payable ,681-9,681 - Other liabilities ,502-65,502 - Subrodinated Sukuk , ,120 Total liabilities 1,647,158 2,155,979 1,510,196 55, , ,789-6,577,887 Shareholders' fund , ,516 Total liabilities and shareholders' fund 1,647,158 2,155,979 1,510,196 55, ,120 1,682,305-7,311,403 27

29 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) (Continued) Up to 1 > 1-3 > Non-profit Trading Unaudited (Continued) month months months years > 5 years sensitive book 31 March 2016 (Continued) RM'000 RM'000 RM'000 On-balance sheet profit sensitivity gap (90,071) (1,777,010) (808,322) 2,526,728 1,324,649 (1,181,097) 5,123 Off-balance sheet profit sensitivity gap ,072,362 - Total profit sensitivity gap (90,071) (1,777,010) (808,322) 2,526,728 1,324,649 (108,735) 5,123 Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia. 28

30 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) Non-trading book Average Up to 1 > 1-3 > Non-profit Trading effective Audited month months months years > 5 years sensitive book Total profit rate 31 December 2015 % Assets Cash and short term funds 69, , , Hedging financial instruments ,291 1,291 - Deposit and placement with other FI / Institutions - 102, , , ,090 - Securities held-for-trading ,510 5, Securities held-to-maturity ,448,570 20,720-1,469, Financing and advances - - performing 1,435, , ,647 2,143, ,009 23,581-5,047,662 - Non performing (1) (64,155) - (64,155) Other assets (2) , ,898 Total assets 1,504, , ,639 2,143,252 2,109, ,246 6,801 7,315,

31 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) (Continued) Average Up to 1 > 1-3 > Non-profit Trading effective Audited (Continued) month months months years > 5 years sensitive book Total profit rate 31 December 2015 (Continued) % Liabilities Deposits from customers 1,435,328 1,282,419 1,612,412 1, ,993-5,110, Deposits and placements - of banks and other financial - institutions 718, ,282 10, ,971-1,108, Hedging financial instruments Bills and acceptance - payable ,737-18,737 Other liabilities ,550-59,550 Subrodinated Sukuk , ,928 Total liabilities 2,154,134 1,653,701 1,622,412 1, , , ,582,902 Shareholders' fund , ,490 Total liabilities and shareholders' fund 2,154,134 1,653,701 1,622,412 1, ,928 1,597, ,315,392 30

32 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) (Continued) Up to 1 > 1-3 > Non-profit Trading Audited (Continued) month months months years > 5 years sensitive book 31 December 2015 (Continued) RM'000 RM'000 RM'000 On-balance sheet profit sensitivity gap (649,144) (1,271,816) (933,773) 2,141,778 1,823,651 (1,117,495) 6,799 Off-balance sheet profit sensitivity gap ,314,720 - Total profit sensitivity gap (649,144) (1,271,816) (933,773) 2,141,778 1,823, ,225 6,799 Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia. 31

33 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) Non-trading book Average Up to 1 > 1-3 > Non-profit Trading effective Audited month months months years > 5 years sensitive book Total profit rate 31 December 2015 % Assets Cash and short term funds 69, , ,806 effective Hedging financial instruments ,291 1,291 profit rate Deposit and placement with other FI / Institutions - 102, , , ,090 % Securities held-for-trading ,510 5,510 - Securities held-to-maturity ,448,570 20,720-1,469,290 - Financing and advances performing 1,435, , ,647 2,143, ,009 23,581-5,047,662 - Non performing (1) (64,155) - (64,155) Other assets (2) , ,898 Total assets 1,504, , ,639 2,143,252 2,109, ,246 6,801 7,315,392-32

34 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) (Continued) Average Up to 1 > 1-3 > Non-profit Trading effective Audited (Continued) month months months years > 5 years sensitive book Total profit rate 31 December 2015 (Continued) % Liabilities Deposits from customers 1,435,328 1,282,419 1,612,412 1, ,993-5,110,626 Average Deposits and placements - of banks and other financial - institutions 718, ,282 10, ,971-1,108,059 % Hedging financial instruments Bills and acceptance - payable ,737-18,737 Other liabilities ,550-59,550 Subrodinated Sukuk , ,928 Total liabilities 2,154,134 1,653,701 1,622,412 1, , , ,582,902 Shareholders' fund , ,490 Total liabilities and shareholders' fund 2,154,134 1,653,701 1,622,412 1, ,928 1,597, ,315,392 33

35 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) (Continued) Up to 1 > 1-3 > Non-profit Trading Audited (Continued) month months months years > 5 years sensitive book 31 December 2015 (Continued) RM'000 RM'000 RM'000 On-balance sheet profit sensitivity gap (649,144) (1,271,816) (933,773) 2,141,778 1,823,651 (1,117,495) 6,799 Off-balance sheet profit - sensitivity gap ,314,720 - Total profit sensitivity gap (649,144) (1,271,816) (933,773) 2,141,778 1,823, ,225 6,799 Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia. 34

36 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA a) The capital adequacy ratios of the Group and the Bank below are disclosed pursuant to the requirements of Bank Negara Malaysia's Risk Weighted Capital Adequacy Framework (Basel II) - Disclosure Requirements (Pillar 3): Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December CET 1/ Tier I capital Paid-up share capital 1,000,000 1,000,000 1,000,000 1,000,000 Accumulated losses (266,450) (267,510) (266,484) (267,510) 733, , , ,490 Less: Deferred tax (62,051) (62,051) (62,051) (62,051) Total Tier-I capital 671, , , ,439 Tier-II capital Collective impairment for impairment loss on non-impaired financing 69,374 69,919 69,374 69,919 Subordinated Sukuk 260, , , ,928 Total Tier-II capital 329, , , ,847 Capital base 1,000,993 1,026,286 1,000,959 1,026,286 CET 1 / Core capital ratio % % % % Risk-weighted capital ratio % % % % (b) The breakdown of risk-weighted assets ("RWA") by each major risk category is as follows: Unaudited Audited Unaudited Audited 31 March 31 December 31 March 31 December Credit risk 3,964,840 4,130,450 3,964,840 4,130,450 Market risk 117, , , ,399 Operational risk 332, , , ,253 4,415,028 4,581,102 4,415,028 4,581,102 35

37 EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 ( MFRS 134 ) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 24. CAPITAL ADEQUACY (Continued) 31 March 2016 Risk Gross Net weighted Capital exposures exposures assets requirements Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks 1,630,177 1,630, Banks, Development Financial Institutions ("DFIs") & MDBs 382, , ,026 8,802 Corporate 3,118,721 3,105,800 2,278, ,291 Regulatory Retail 768, , ,970 46,078 Residential Real Estate (RRE) Financing 1,173,117 1,173, ,439 46,755 Other assets 88,856 88,856 51,410 4,113 Defaulted Exposures 13,690 13,690 19,621 1,570 Total for On-Balance Sheet Exposures 7,174,864 7,160,758 3,620, ,609 Off-Balance Sheet Exposures Off-balance sheet exposures other than OTC derivatives or credit derivatives 390, , ,734 27,579 Total for Off-Balance Sheet Exposures 390, , ,734 27,579 Total On and Off-Balance Sheet Exposures 7,565,641 7,551,536 3,964, ,188 Large Exposures Risk Requirement Long Short Market Risk position position Foreign Currency Risk 117, ,399 9,392 Operational Risk ,789 26,623 Total RWA and Capital Requirements 4,415, ,203 36