AFFIN Bank Berhad (Incorporated in Malaysia)

Transcription

1 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION as at 31 March 2016 Note ASSETS Cash and short-term funds 5,858,185 4,070,710 3,713,510 2,203,022 Deposits and placements with banks and other financial institutions 286, , , ,772 Investment accounts due from designated financial institutions ,124,552 1,331,318 Financial assets held-for-trading , ,121 Derivative financial assets , , , ,745 Financial investments available-for-sale 16 9,734,127 10,287,350 8,263,245 8,811,977 Financial investments held-to-maturity , , , ,372 Loans, advances and financing 18 42,517,082 42,104,597 31,968,883 32,902,688 Other assets 19 82,231 72,798 41,476 68,546 Amount due from subsidiaries , Amount due from joint ventures 40,378 39, Tax recoverable 61,927 46,206 61,894 46,179 Deferred tax assets - 3, Statutory deposits with Bank Negara Malaysia 1,527,000 1,604,600 1,230,000 1,345,000 Investment in subsidiaries , ,074 Property and equipment 406, , , ,913 Intangible assets 156, , , ,604 TOTAL ASSETS 61,233,220 59,846,744 49,341,859 48,733,392 LIABILITIES AND EQUITY Deposits from customers 20 47,315,261 47,813,213 37,632,912 37,814,118 Deposits and placements of banks and other financial institutions 21 5,339,244 2,735,596 3,665,613 1,778,206 Obligation on securities sold under repurchase agreements 1,137,047 1,740,946 1,137,047 1,740,946 Derivative financial liabilities , , , ,944 Bills and acceptances payable 66,296 77,114 66,296 77,114 Recourse obligation on loans sold to Cagamas Berhad 133, , , ,585 Other liabilities , , , ,008 Amount due to subsidiairies , ,166 Provision for taxation 10,831 10, Deferred tax liabilities 40,549 15,104 39,855 15,104 Subordinated term loan 1,004,309 1,004,446 1,004,309 1,004,446 TOTAL LIABILITIES 55,667,073 54,344,914 44,329,832 43,754,637 Share capital 1,688,770 1,688,770 1,688,770 1,688,770 Reserves 24 3,877,377 3,813,060 3,323,257 3,289,985 TOTAL EQUITY 5,566,147 5,501,830 5,012,027 4,978,755 TOTAL LIABILITIES AND EQUITY 61,233,220 59,846,744 49,341,859 48,733,392 COMMITMENTS AND CONTINGENCIES 31 22,331,567 22,301,945 20,589,028 20,192,355 Capital Adequacy CET1 capital ratio % % % % Tier 1 capital ratio % % % % Total capital ratio % % % % 1

2 INTERIM FINANCIAL STATEMENTS UNAUDITED INCOME STATEMENTS for the financial quarter ended 31 March 2016 Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding Note 31/3/ /3/ /3/ /3/2015 Interest income , , , ,796 Interest expense 26 (389,822) (375,112) (389,822) (375,112) Net interest income 196, , , ,684 Income from Islamic banking business 27 58,930 54,974 58,930 54, , , , ,658 Other operating income 28 37,441 40,931 37,441 40,931 Net income 293, , , ,589 Other operating expense 29 (171,750) (164,505) (171,750) (164,505) Operating profit before allowances 121, , , ,084 Write-back of/(allowances for) impairment losses on loans, advances and financing 30 1,656 (124,578) 1,656 (124,578) Write-back of impairment losses on securities - 21,756-21,756 Profit before zakat and taxation 123,061 23, ,061 23,262 Zakat Profit before taxation 123,061 23, ,061 23,262 Taxation (28,738) (5,144) (28,738) (5,144) Net profit after zakat and taxation 94,323 18,118 94,323 18,118 Attributable to: Equity holders of the Bank 94,323 18,118 94,323 18,118 Earnings per share (sen): - Basic

3 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME for the financial quarter ended 31 March 2016 (continued) Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Profit after zakat and taxation 94,323 18,118 94,323 18,118 Other comprehensive income: Items that may be reclassified subsequently to profit and loss: Net fair value change in financial investments available-for-sale 97,502 53,751 97,502 53,751 Deferred tax on financial investments available-for-sale (23,142) (12,901) (23,142) (12,901) Other comprehensive income for the financial period, net of tax 74,360 40,850 74,360 40,850 Total comprehensive income for the financial period 168,683 58, ,683 58,968 Attributable to equity holders of the Bank: - Total comprehensive income 168,683 58, ,683 58,968 3

4 INTERIM FINANCIAL STATEMENTS UNAUDITED INCOME STATEMENTS for the financial quarter ended 31 March 2016 (continued) Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding Note 31/3/ /3/ /3/ /3/2015 Interest income , , , ,929 Interest expense 26 (389,824) (375,121) (389,824) (375,121) Net interest income 196, , , ,808 Income from Islamic banking business , , , ,808 Other operating income 28 37,365 40,807 37,365 40,807 Net income 233, , , ,615 Other operating expense 29 (140,343) (134,890) (140,343) (134,890) Operating profit before allowances 93, ,725 93, ,725 Write-back of/(allowances for) impairment losses on loans, advances and financing 30 4,190 (122,920) 4,190 (122,920) Write-back of impairment losses on securities - 21,756-21,756 Profit/(loss) before zakat and taxation 97,441 (439) 97,441 (439) Zakat Profit/(loss) before taxation 97,441 (439) 97,441 (439) Taxation (22,193) 663 (22,193) 663 Net profit after zakat and taxation 75, , Attributable to: Equity holders of the Bank 75, , Earnings per share (sen): - Basic

5 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME for the financial quarter ended 31 March 2016 (continued) Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Profit after zakat and taxation 75, , Other comprehensive income: Items that may be reclassified subsequently to profit and loss: Net fair value change in financial investments available-for-sale 81,752 46,191 81,752 46,191 Deferred tax on financial investments available-for-sale (19,362) (11,085) (19,362) (11,085) Other comprehensive income for the financial period, net of tax 62,390 35,106 62,390 35,106 Total comprehensive income for the financial period 137,638 35, ,638 35,330 Attributable to equity holders of the Bank: - Total comprehensive income 137,638 35, ,638 35,330 5

6 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CHANGES IN EQUITY for the financial quarter ended 31 March 2016 Attributable to Equity Holders of the Bank AFS Share Share Statutory revaluation Regulatory Retained capital premium reserves reserves reserves profits Total RM'000 RM'000 RM'000 At 1 January ,688, ,904 1,577,509 68, ,547 1,029,155 5,501,830 Net profit for the financial period ,323 94,323 Other Comprehensive income (net of tax) - Financial investments available -for-sale , ,360 Total comprehensive income ,360-94, ,683 Dividend paid (104,366) (104,366) Transfer to regulatory reserves (4,915) 4,915 - At 31 March ,688, ,904 1,577, , ,632 1,024,027 5,566,147 At 1 January ,688, ,904 1,469,794 17, , ,500 5,170,938 Net profit for the financial period ,118 18,118 Other Comprehensive income (net of tax) - Financial investments available -for-sale , ,850 Total comprehensive income ,850-18,118 58,968 Dividend paid (66,031) (66,031) Transfer to regulatory reserves (53,763) 53,763 - At 31 March ,688, ,904 1,469,794 58, , ,350 5,163,875 6

7 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CHANGES IN EQUITY for the financial quarter ended 31 March 2016 (continued) Non-distributable Distributable AFS Share Share Statutory revaluation Regulatory Retained capital premium reserves reserves reserves profits Total RM'000 RM'000 RM'000 At 1 January ,688, ,904 1,328,792 76, , ,289 4,978,755 Net profit for the financial period ,248 75,248 Other Comprehensive income (net of tax) - Financial investments available -for-sale , ,390 Total comprehensive income ,390-75, ,638 Dividend paid (104,366) (104,366) Transfer to regulatory reserves (8,807) 8,807 - At 31 March ,688, ,904 1,328, , , ,978 5,012,027 At 1 January ,688, ,904 1,263,470 23, , ,153 4,730,122 Net profit for the financial period Other Comprehensive income (net of tax) - Financial investments available -for-sale , ,106 Total comprehensive income , ,330 Dividend paid (66,031) (66,031) Transfer to regulatory reserves (55,957) 55,957 - At 31 March ,688, ,904 1,263,470 58,584 79, ,303 4,699,421 7

8 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CASH FLOWS for the financial quarter ended 31 March 2016 CASH FLOWS FROM OPERATING ACTIVITIES 31/3/ /3/ /3/ /3/2015 Profit/(loss) before taxation 123,061 23,262 97,441 (439) Adjustments for items not involving the movement of cash and of cash and cash equivalents: Interest income: - financial assets held-for-trading (134) - (134) - - financial investments available-for-sale (80,740) (65,989) (80,740) (65,989) - financial investments held-to-maturity (2,978) (3,354) (2,978) (3,354) Dividend income: - financial investments available-for-sale (48) (21) (48) (21) Accretion of discount less amortisation of premium: - financial investments available-for-sale (2,041) (5,237) (2,041) (5,237) - financial investments held-to-maturity - (250) - (250) Gain on sale: - financial assets held-for-trading (8) (336) (8) (336) - financial investments available-for-sale (2,153) (2,016) (2,153) (2,016) Gain on redemption of financial investments held-to-maturity - (21,756) - (21,756) Unrealised (gains)/loss on revaluation: - financial assets held-for-trading (2) 230 (2) derivatives (1,587) 3,607 (1,587) 3,607 - foreign exchange (112,680) 48,755 (112,680) 48,755 Depreciation of property and equipment 3,829 3,699 3,558 3,432 Property and equipment written off Amortisation of intangible assets 2,019 1,451 1,903 1,335 Gain on sale of foreclosed properties (104) (196) (104) (196) Net individual impairment 1,347 85, ,005 Net collective impairment 11,063 50,607 8,434 51,208 Bad debt and financing written-off Interest expense - subordinated term loans 11,751 6,947 11,751 6,947 Operating (loss)/profit before changes in working capital (49,184) 125,632 (78,313) 99,753 Decrease/(increase) in operating assets: Deposits and placements with banks and other financial institutions 65,000 2,881 35, ,861 Investment accounts due from designated financial institutions - - (793,234) - Financial assets held-for-trading 150, , , ,010 Loans, advances and financing (425,116) 238, , ,009 Other assets 571,071 (491,490) 595,275 (461,315) Derivative financial instruments (162,369) 52,373 (160,994) 52,345 Statutory deposits with Bank Negara Malaysia 77,600 (43,450) 115,000 (14,450) Amount due from subsidiaries - - (458,986) 177,891 Amount due from joint ventures (442) (7,304) - - 8

9 INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CASH FLOWS for the financial quarter ended 31 March 2016 (continued) 31/3/ /3/ /3/ /3/2015 CASH FLOWS FROM OPERATING ACTIVITIES (continued) (Decrease)/increase in operating liabilities: Deposits from customers (497,952) (2,201,972) (181,206) (1,946,462) Deposits and placements of banks and other financial institutions 2,603,648 (1,309,965) 1,887,407 (1,687,128) Obligation on securities sold under repurchase agreements (603,899) 781,837 (603,899) 781,837 Bills and acceptances payable (10,818) (17,425) (10,818) (17,425) Recourse obligation on loans sold to Cagamas Berhad (1,178) (1,080) (1,178) (1,080) Other liabilities (45,639) 45,836 (24,935) 49,567 Cash generated from/(used in) operations 1,687,792 (2,675,284) 1,411,379 (2,212,587) Zakat paid (383) (559) - - Tax refund Tax paid (54,584) (37,553) (49,324) (32,520) Net cash generated from/(used in) operating activities 1,632,825 (2,713,035) 1,362,055 (2,244,746) CASH FLOWS FROM INVESTING ACTIVITIES Interest received: - financial investments available-for-sale 80,740 65,989 80,740 65,989 - financial investments held-to-maturity 2,978 3,354 2,978 3,354 Dividend income: - financial investments available-for-sale Redemption of financial investmentrs held-to-maturity net of purchase 6,941 98,637 8, ,078 Net sale of financial investments available-for-sale 654,918 1,308, ,678 1,270,948 Proceeds from disposal of: - property and equipment foreclosed properties Purchase of property and equipment (8,296) (4,333) (8,093) (4,259) Purchase of intangible assets (292) - (292) - Net cash generated from investing activities 737,431 1,472, ,750 1,436,838 CASH FLOWS FROM FINANCING ACTIVITES Interest payment on subordinated term loan (11,888) (7,060) (11,888) (7,060) Payment of dividend (104,366) (66,031) (104,366) (66,031) Net cash used in financing activities (116,254) (73,091) (116,254) (73,091) Net increase/(decrease) in cash and cash equivalents 2,254,002 (1,313,309) 1,964,551 (880,999) Net (decrease)/increase in foreign exchange (466,527) 424,299 (454,063) 426,548 Cash and cash equivalents at beginning of the financial period 4,070,710 6,938,912 2,203,022 3,777,042 CASH AND CASH EQUIVALENTS AT END OF THE FINANCIAL PERIOD 5,858,185 6,049,902 3,713,510 3,322,591 9

10 1 BASIS OF PREPARATION This unaudited condensed interim financial information for the 3 months ended 31 March 2016 has been prepared in accordance with MFRS 134 "Interim Financial Reporting" issued by the Malaysian Accounting Standards Board ('MASB'), Bank Negara Malaysia ('BNM') Guidelines and the requirements of the Companies Act, 1965 in Malaysia. The financial statements of the Group and the Bank have been prepared under the historical cost convention, unless otherwise indicated in this summary of significant accounting policies. The unaudited condensed interim financial information should be read in conjunction with the annual financial statements for the year ended 31 December 2015, which have been prepared in accordance with the Malaysian Financial Reporting Standards ('MFRS'). The explanatory notes to this interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the Group and the Bank since the year ended 31 December ACCOUNTING POLICIES The consolidated financial statements include the financial statements of the Bank, subsidiaries and joint ventures, made up to the quarter ended 31 March The presentation of the comparative financial statements of the Group and the Bank have been restated to conform with the current period's pesentation. The new and revised Malaysian Financial Reporting Standards ('MFRS') which became effective for the financial period beginning on or after 1 January 2016 are as follows: Amendment to MFRS 11 'Joint arrangements' (effective from 1 January 2016); Amendment to MFRS 116 'Property, plant and equipment' and MFRS 138 'Intangible assets'(effective from 1 January 2016); MFRS 9 'Financial Instruments' (effective from 1 January 2018) will replace MFRS 139 'Financial instruments: Recognition and Measurement'; MFRS 15 'Revenue from contracts with customers' (effective from 1 January 2018) replaces MFRS 118 'Revenue' and MFRS 111 'Construction contracts' and related interpretations. and the Bank will apply these standards when effective. The adoption of the above standards, amendments to published standards and interpretations to existing standards are not expected to have any significant impact on the financial statements of the Group and the Bank except for MFRS 9. The financial effect of adoption of MFRS 9 is still being assessed by the Group and the Bank. 3 QUALIFICATION OF 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 SEASONAL OR CYCLICAL FACTORS The business operations of the Group and the Bank are not subject to material seasonal or cyclical fluctuation. 5 EXCEPTIONAL ITEMS There was no exceptional items for the quarter ended 31 March

11 6 CHANGES IN ACCOUNTING POLICIES AND ADJUSTMENT Refer to Note 2. 7 CHANGES IN DEBTS AND EQUITY SECURITIES There were no purchases or disposal of quoted securities for the quarter ended 31 March 2016 other than in the ordinary course of business. 8 DIVIDENDS There were no interim dividend declared. 9 SUBSEQUENT MATERIAL EVENT There is no material subsequent event after the quarter ended 31 March 2016 that have material financial impact. 10 CHANGES IN THE COMPOSITION OF THE GROUP There is no change in the composition of the Group between now and 31 December 2015 audited account. 11 PURCHASE AND SALE OF QUOTED SECURITIES There were no purchases or disposals of quoted securities for the quarter ended 31 March 2016 other than in the ordinary course of business. 12 STATUS OF CORPORATE PROPOSAL There were no corporate proposals announced but not completed during the period ended 31 March INVESTMENT ACCOUNTS DUE FROM DESIGNATED FINANCIAL INSTITUTIONS Current Previous Financial Financial Quarter Year-End 31/3/ /12/2015 RM'000 RM'000 Licensed banks 2,124,552 1,331,318 11

12 14 FINANCIAL ASSETS HELD-FOR-TRADING At fair value Negotiable Instruments of Deposit - 150, , DERIVATIVE FINANCIAL ASSETS 31/3/ /12/2015 Contract/ Contract/ notional notional amount Assets amount Assets At fair value Foreign exchange derivatives: Currency forwards 456,925 14, ,652 76,445 Cross currency swaps 2,615, ,164 2,571,803 81,272 Currency options 21,500 (345) 39,130 (12) Interest rate derivatives: Interest rate swap 1,391,000 21,095 1,610,148 16,332 4,485, ,700 5,187, ,037 31/3/ /12/2015 Contract/ Contract/ notional notional amount Assets amount Assets At fair value Foreign exchange derivatives: Currency forwards 463,102 14,123 1,099,793 77,153 Cross currency swaps 2,615, ,164 2,571,803 81,272 Currency options 21,500 (345) 39,130 (12) Interest rate derivatives: Interest rate swap 1,391,000 21,095 1,610,148 16,332 4,491, ,037 5,320, ,745 12

13 16 FINANCIAL INVESTMENTS AVAILABLE-FOR-SALE At fair value Malaysian Government securities - 39,997-39,997 Malaysian Government investment issues 1,660,681 1,863,822 1,102,874 1,249,964 Sukuk Perumahan Kerajaan 666, , , ,472 Negotiable Instruments of Deposit and Islamic Debt Certificates 1,637,104 2,134,612 1,637,104 2,134,612 Bankers' acceptances and Islamic Khazanah Bonds/Sukuk 446, , , ,538 4,411,512 5,131,940 3,495,484 4,165,583 Quoted securities: Shares in Malaysia Unquoted securities: Shares in Malaysia 206, , , ,935 Private debt securities - in Malaysia 4,645,750 4,446,167 4,091,671 3,937,676 - outside Malaysia 471, , , ,820 9,735,428 10,288,651 8,263,514 8,812,246 Allowance for impairment losses (1,301) (1,301) (269) (269) 9,734,127 10,287,350 8,263,245 8,811,977 Movement in allowance for impairment losses At beginning of the financial period 1,301 45, ,290 Amount written-off - (44,021) - (44,021) At end of the financial period 1,301 1,

14 17 FINANCIAL INVESTMENTS HELD-TO-MATURITY At amortised cost Quoted securities: Private debt securities in Malaysia 23,439 23,439 23,439 23,439 Unquoted securities: Private debt securities in Malaysia 350, , , , , , , ,550 Allowance for impairment losses (133) (178) (133) (178) 373, , , ,372 Movement in allowance for impairment losses At beginning of the financial period , ,278 Amount write-back - (22,037) - (22,037) Amount written-off (45) (22,063) (45) (22,063) At end of the financial period

15 18 LOANS, ADVANCES AND FINANCING (i) By type Overdrafts 1,929,927 1,960,022 1,624,419 1,645,595 Term loans/financing - Housing loans/financing 6,296,274 6,172,180 4,058,210 4,075,922 - Hire purchase receivables 12,038,987 12,000,990 9,210,732 9,290,597 - Syndicated financing 2,267,018 1,810,209 1,289,167 1,319,486 - Business term loans/financing 13,732,687 13,416,080 10,387,875 10,555,927 Bills receivables 251, , , ,455 Trust receipts 309, , , ,817 Claims on customers under acceptances credits 862,722 1,016, , ,716 Staff loans/financing (of which RM Nil to Directors) 148, , , ,958 Credit/charge cards 80,972 83,769 80,972 83,769 Revolving credits 5,103,739 5,373,961 4,316,987 4,751,488 Factoring 1,821 4,369 1,821 4,369 Gross loans, advances and financing 43,023,668 42,604,195 32,400,392 33,327,099 Less: Allowance for impairment losses - Individual (267,140) (270,137) (231,363) (231,621) - Collective (239,446) (229,461) (200,146) (192,790) Total net loans, advances and financing 42,517,082 42,104,597 31,968,883 32,902, Included in the Group and the Bank's term loans are housing loans sold to Cagamas with recourse amounting to RM133,407,000 (31 December 2015: RM134,585,000). Included in Group's business term loans/financing as at reporting date is RM53.7 million (31 December 2015: RM53.7 million) and RM74.8 million (31 December 2015: RM63.9 million) of term financing disbursed by AFFIN Islamic Bank Bhd to joint ventures AFFIN-i Nadayu Sdn Bhd and KL South Development Sdn Bhd respectively. 15

16 18 LOANS, ADVANCES AND FINANCING (continued) (ii) By maturity structure Maturing within one year 9,779,008 9,755,365 7,730,787 8,329,031 One year to three years 4,672,643 4,455,462 3,775,956 3,913,159 Three years to five years 6,980,136 6,700,288 5,847,414 5,772,922 Over five years 21,591,881 21,693,080 15,046,235 15,311,987 43,023,668 42,604,195 32,400,392 33,327,099 (iii) By type of customer Domestic banking institutions Domestic non-banking institutions - Stockbroking companies Others 1,222,589 1,575,279 1,105,142 1,447,078 Domestic business enterprises - Small medium enterprises 8,191,215 9,069,401 7,193,277 8,060,187 - Others 13,917,458 13,078,516 10,909,947 10,448,275 Government and statutory bodies 1,877,289 1,137, , ,604 Individuals 16,948,951 16,799,087 11,971,483 12,067,560 Other domestic entities 129, ,263 82,857 83,478 Foreign entities 735, , , ,696 43,023,668 42,604,195 32,400,392 33,327,099 (iv) By interest/profit rate sensitivity Fixed rate - Housing loans/financing 401, , , ,831 - Hire purchase receivables 12,038,965 12,000,990 9,210,710 9,290,597 - Other fixed rate loans/financing 3,727,979 3,986,107 2,426,733 2,670,561 Variable rate - BLR 16,438,746 16,014,700 11,938,396 12,228,698 - Cost - plus 10,416,833 10,202,012 8,474,235 8,789,412 43,023,668 42,604,195 32,400,392 33,327,099 16

17 18 LOANS, ADVANCES AND FINANCING (continued) (v) By economic sectors Primary agriculture 760, , , ,218 Mining and quarrying 656, , , ,130 Manufacturing 1,979,262 2,254,941 1,759,568 2,029,121 Electricity, gas and water supply 126, ,888 69, ,517 Construction 3,511,221 3,521,131 2,898,182 2,966,971 Real estate 7,253,542 6,885,709 5,820,871 5,715,112 Wholesale & retail trade and restaurants & hotels 2,526,096 2,437,432 2,261,072 2,218,930 Transport, storage and communication 1,962,816 2,072,151 1,754,537 1,866,149 Finance, insurance and business services 3,822,413 4,285,232 3,255,439 3,718,355 Education, health and others 3,288,503 2,590,004 1,442,745 1,388,887 Household 17,075,925 16,925,393 12,068,791 12,164,391 Others 60,189 43,021 23,806 19,318 43,023,668 42,604,195 32,400,392 33,327,099 (vi) By economic purpose Purchase of securities 309, , , ,578 Purchase of transport vehicles 12,378,677 12,438,031 9,525,167 9,702,193 Purchase of landed property of which: - Residential 6,556,481 6,404,657 4,233,073 4,229,105 - Non-residential 5,932,147 5,891,022 4,880,828 4,911,687 Fixed assets other than land and building 247, , , ,273 Personal use 720, , , ,015 Credit card 80,972 83,769 80,972 83,769 Consumer durable Construction 3,367,532 3,127,244 2,306,315 2,325,499 Merger and acquisition 198, , , ,706 Working capital 12,893,026 12,777,233 9,806,816 10,440,927 Others 338, , , ,495 43,023,668 42,604,195 32,400,392 33,327,099 17

18 (vii) By geographical distribution Perlis 161, ,914 56,376 34,185 Kedah 1,409,461 1,362, , ,114 Pulau Pinang 2,284,521 2,142,594 1,992,840 1,911,468 Perak 1,262,748 1,302, , ,655 Selangor 13,028,387 12,878,079 9,992,398 9,800,065 Wilayah Persekutuan 13,060,044 13,155,004 9,040,019 10,272,358 Negeri Sembilan 1,178, , , ,569 Melaka 1,041,353 1,003, , ,858 Johor 3,625,785 3,449,496 3,100,528 3,004,105 Pahang 819, , , ,457 Terengganu 791, , , ,226 Kelantan 243, ,607 82,865 67,998 Sarawak 1,598,592 1,577,489 1,486,132 1,508,223 Sabah 1,584,026 1,621,746 1,538,714 1,593,194 Labuan 596, , , ,164 Outside Malaysia 338, , , ,460 43,023,668 42,604,195 32,400,392 33,327,099 (viii) Movements of impaired loans At beginning of the financial period 767, , , ,491 Classified as impaired 167, , , ,856 Reclassified as non-impaired (76,337) (394,738) (61,117) (326,841) Amount recovered (48,200) (149,944) (34,431) (131,082) Amount written-off (1,104) (273,350) (1,104) (264,285) At end of the financial period 809, , , ,139 Ratio of gross impaired loans, advances and financing to gross loans, advances and financing 1.88% 1.80% 2.07% 1.88% 18

19 18 LOANS, ADVANCES AND FINANCING (continued) (ix) Movements allowance for impairment on loans, advances and financing Individual impairment At beginning of the financial period 270, , , ,740 Allowance made during the financial period 5, ,645 4, ,086 Amount recovered (3,850) (7,293) (3,761) (7,246) Amount written-off - (192,965) - (190,583) Unwinding of income (1,137) (33,004) (1,112) (32,376) Exchange differences (3,207) 6, At end of the financial period 267, , , ,621 Collective impairment At beginning of the financial period 229, , , ,226 Net allowance made during the financial period 11,063 17,224 8,434 11,265 Amount written-off (1,078) (80,382) (1,078) (73,701) At end of the financial period 239, , , ,790 19

20 18 LOANS, ADVANCES AND FINANCING (continued) (x) Impaired loans by economic sectors Primary agriculture 14,241 14,388 14,232 14,388 Mining and quarrying Manufacturing 30,873 35,535 30,405 35,187 Electricity, gas and water supply Construction 80,313 81,302 79,696 80,914 Real estate 95,681 89,268 17,674 3,401 Wholesale & retail trade and restaurants & hotels 37,628 37,463 35,449 35,563 Transport, storage and communication 3,427 3,314 3,142 3,013 Finance, insurance and business services 217, , , ,333 Education, health and others 709 2, ,460 Household 328, , , , , , , ,139 (xi) Impaired loans by economic purpose Purchase of securities Purchase of transport vehicles 87,955 82,026 73,435 69,400 Purchase of landed property of which: - Residential 202, , , ,674 - Non-residential 31,271 24,010 28,741 22,634 Fixed assets other than land and building Personal use 35,507 20,539 35,006 20,044 Credit card Consumer durable Construction 100,359 98,031 22,352 12,164 Working capital 326, , , ,206 Others 23,705 23,644 23,705 23, , , , ,139 20

21 (xii) Impaired loans by geographical distribution Perlis Kedah 49,985 19,972 49,209 18,964 Pulau Pinang 37,687 42,525 35,566 41,000 Perak 18,224 18,793 13,800 14,871 Selangor 310, , , ,349 Wilayah Persekutuan 104,832 89,094 99,129 83,164 Negeri Sembilan 120,661 13, ,190 11,230 Melaka 17,141 7,231 16,515 6,749 Johor 23,772 25,596 21,765 23,518 Pahang 8,061 8,262 6,705 6,917 Terengganu 5,535 5,307 1,382 1,389 Kelantan 5,310 5,068 1,579 1,435 Sarawak 7,335 6,918 7,099 6,666 Sabah 22,153 20,614 21,883 20,248 Outside Malaysia 78,007 85, , , , , OTHER ASSETS Other debtors, deposits and prepayments 34,369 60,927 31,594 57,568 Cheque clearing accounts 43,084 6,803 5,695 6,501 Foreclosed properties (a) 4,616 4,906 4,025 4,315 Land held for sale ,231 72,798 41,476 68,546 (a) Foreclosed properties At beginning of the financial period 4,906 9,099 4,315 8,508 Disposal during the financial period (290) (4,193) (290) (4,193) At end of the financial period 4,616 4,906 4,025 4,315 21

22 20 DEPOSITS FROM CUSTOMERS (i) By type of deposit Demand deposits 6,862,569 7,740,305 4,662,140 5,306,347 Savings deposits 1,980,385 1,951,353 1,551,596 1,538,959 Fixed deposits 27,888,093 28,952,441 21,493,777 22,429,816 Commodity Murabahah 658, , Money market deposits 847,028 1,637, ,028 1,637,103 Negotiable instruments of deposit ('NID') 9,078,371 6,901,893 9,078,371 6,901,893 47,315,261 47,813,213 37,632,912 37,814,118 (ii) Maturity structure of fixed deposits and NID Due within six months 30,038,034 29,025,361 25,197,291 24,244,323 Six months to one year 6,611,808 5,640,983 5,079,354 4,010,758 One year to three years 300,934 1,172, ,942 1,061,114 Three years to five years 15,688 15,660 15,561 15,514 36,966,464 35,854,334 30,572,148 29,331,709 (iii) By type of customer Government and statutory bodies 7,901,796 8,103,704 5,012,612 5,158,224 Business enterprise 12,536,987 14,538,898 9,016,029 10,534,733 Individuals 12,011,969 12,209,520 10,688,991 10,931,299 Domestic banking institutions 9,152,122 6,944,295 9,149,267 6,943,481 Domestic non-banking financial institutions 4,434,746 4,609,745 2,741,334 3,296,595 Foreign entities 433, , , ,141 Other entities 843, , , ,645 47,315,261 47,813,213 37,632,912 37,814,118 22

23 21 DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Licensed banks 4,418,160 1,583,912 3,148,201 1,031,696 Licensed investment banks 64, ,689 64, ,689 Bank Negara Malaysia 107, ,486 - Other financial institutions 749,226 1,047, , ,821 5,339,244 2,735,596 3,665,613 1,778,206 Maturity structure of deposits Due within six months 5,339,244 2,735,596 3,665,613 1,778,206 5,339,244 2,735,596 3,665,613 1,778, DERIVATIVE FINANCIAL LIABILITIES 31/3/ /12/2015 Contract/ Contract/ notional notional amount Liabilities amount Liabilities At fair value Foreign exchange derivatives: Currency forwards 1,575, , ,091 13,821 Cross currency swaps 1,953, ,360 2,630, ,614 Currency options 40, Interest rate derivatives: Interest rate swap 1,421,210 20,850 1,250,991 17,705 4,990, ,434 4,592, ,140 23

24 22 DERIVATIVE FINANCIAL LIABILITIES (continued) 31/3/ /12/2015 Contract/ Contract/ notional notional amount Liabilities amount Liabilities At fair value Foreign exchange derivatives: Currency forwards 1,572, , ,337 13,625 Cross currency swaps 1,953, ,360 2,630, ,614 Currency options 40, Interest rate derivatives: Interest rate swap 1,421,210 20,850 1,250,991 17,705 4,987, ,242 4,626, , OTHER LIABILITIES Bank Negara Malaysia and Credit Guarantee Corporation Funding programmes 40,693 38,536 40,693 38,536 Margin and collateral deposits 144, , , ,678 Other creditors and accruals 46,397 62,438 42,656 56,678 Sundry creditors 89,410 97,639 84,182 87,783 Cheque clearing accounts 15,112 50,363 15,112 36,742 Provision for zakat 1,925 2, Defined contribution plan (a) 15,254 16,528 14,100 15,385 Accrued employee benefits (b) , , , ,008 (a) and the Bank contributes to the Employee Provident Fund ('EPF'), the national defined contribution plan. Once the contributions have been paid, the Group and the Bank has no further payment obligations. (b) This refers to the accruals for short-term employee benefits for leave entitlement. Under employment contract, employees earn their leave entitlement which they are entitled to carry forward and will lapse if not utilised in the following accounting period. Accruals are made for the estimated liability for unutilised annual leave. 24

25 24 RESERVES Retained profits 1,024,027 1,029, , ,289 Share premium 858, , , ,904 AFS revaluation reserves 143,305 68, ,242 76,852 Statutory reserves 1,577,509 1,577,509 1,328,792 1,328,792 Regulatory reserves 273, , , ,148 3,877,377 3,813,060 3,323,257 3,289,985 Statutory reserves At beginning of the financial period 1,577,509 1,469,794 1,328,792 1,263,470 Transfer from retained profits - 107,715-65,322 At end of the financial period 1,577,509 1,577,509 1,328,792 1,328,792 (a) As at reporting date, the Bank has a tax exempt account balance of RM10,931,988 (31 December 2015: RM10,931,988) under Section 12 of the Income Tax (Amendment) Act 1999, subject to agreement by the Inland Revenue Board. (b) The statutory reserves of the Group and the Bank are maintained in compliance with Section 47(2)(f) of the Financial Services Act 2013 and Section 57(2)(f) of the Islamic Financial Services Act 2013 and is not distributable as cash dividends. (c) AFS revaluation reserves represent the unrealised gains or losses arising from the change in fair value of investments classified as financial investment available-for-sale. The gains or losses are transferred in the income statement upon disposal or when the securities become impaired. (d) and the Bank are required to maintain in aggregate collective impairment allowances and regulatory reserves of no less than 1.2% of total outstanding loans, advances and financing, net of individual impairment allowances. 25

26 25 INTEREST INCOME Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Loans, advances and financing 458, , , ,662 Money at call and deposit placements with financial institutions 12,185 18,594 12,185 18,594 Financial assets - Held-for-trading Available-for-sale 80,740 65,989 80,740 65,989 - Held-to-maturity 2,978 3,354 2,978 3,354 Interest rate derivatives 29,804 35,710 29,804 35, , , , ,309 Accretion of discount less amortisation of premium 2,041 5,487 2,041 5, , , , ,796 of which: Interest income earned on impaired loans, advances and financing Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Loans, advances and financing 440, , , ,263 Money at call and deposit placements with financial institutions 30,315 26,126 30,315 26,126 Financial assets - Held-for-trading Available-for-sale 80,740 65,989 80,740 65,989 - Held-to-maturity 2,978 3,354 2,978 3,354 Interest rate derivatives 29,804 35,710 29,804 35, , , , ,442 Accretion of discount less amortisation of premium 2,041 5,487 2,041 5, , , , ,929 of which: Interest income earned on impaired loans, advances and financing

27 26 INTEREST EXPENSE Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Deposits from customers 311, , , ,024 Deposits and placements of banks and other financial institutions 26,381 28,401 26,381 28,401 Securities sold under repurchase agreements 11, , Interest rate derivatives 27,474 32,596 27,474 32,596 Loan sold to Cagamas Berhad 1,442 1,492 1,442 1,492 Subordinated term loan 11,751 6,947 11,751 6,947 Others , , , ,112 Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Deposits from customers 311, , , ,033 Deposits and placements of banks and other financial institutions 26,381 28,401 26,381 28,401 Securities sold under repurchase agreements 11, , Interest rate derivatives 27,474 32,596 27,474 32,596 Loan sold to Cagamas Berhad 1,442 1,492 1,442 1,492 Subordinated term loan 11,751 6,947 11,751 6,947 Others , , , ,121 27

28 27 INCOME FROM ISLAMIC BANKING BUSINESS Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Income derived from investment of depositors' funds and others 114, , , ,777 Income derived from investment of investment account funds 17,261-17,261 - Income derived from investment of shareholders' funds 9,868 8,452 9,868 8,452 Total distributable income 141, , , ,229 Income attributable to depositors (82,763) (75,255) (82,763) (75,255) 58,930 54,974 58,930 54,974 of which: Financing income earned on impaired financing, advances and other financing

29 28 OTHER OPERATING INCOME Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Fee income Commission 3,709 3,762 3,709 3,762 Service charges and fees 12,563 14,053 12,563 14,053 Guarantee fees 7,588 6,153 7,588 6,153 23,860 23,968 23,860 23,968 Income from financial instruments Gains/(losses) arising on financial assets held-for-trading: - net gain on disposal unrealised gains/(losses) 2 (230) 2 (230) Gains/(losses) on derivatives: - realised 1,063 1,466 1,063 1,466 - unrealised 1,587 (3,607) 1,587 (3,607) 2,650 (2,141) 2,650 (2,141) Gains arising on financial investments available-for-sale: - net gain on disposal 2,153 2,016 2,153 2,016 - gross dividend income ,201 2,037 2,201 2,037 Other income Foreign exchange (losses)/gains - realised (106,715) 62,076 (106,715) 62,076 - unrealised 112,680 (48,755) 112,680 (48,755) Rental income Gain on disposal of foreclosed properties Other non-operating income 2,190 3,035 2,190 3,035 8,720 16,961 8,720 16,961 37,441 40,931 37,441 40,931 29

30 28 OTHER OPERATING INCOME (continued) Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Fee income Commission 3,709 3,762 3,709 3,762 Service charges and fees 12,563 14,053 12,563 14,053 Guarantee fees 7,588 6,153 7,588 6,153 23,860 23,968 23,860 23,968 Income from financial instruments Gains/(losses) arising on financial assets held-for-trading: - net gain on disposal unrealised gains/(losses) 2 (230) 2 (230) Gains/(losses) on derivatives: - realised 1,063 1,466 1,063 1,466 - unrealised 1,587 (3,607) 1,587 (3,607) 2,650 (2,141) 2,650 (2,141) Gains arising on financial investments available-for-sale: - net gain on disposal 2,153 2,016 2,153 2,016 - gross dividend income ,201 2,037 2,201 2,037 Other income Foreign exchange (losses)/gains - realised (106,715) 62,076 (106,715) 62,076 - unrealised 112,680 (48,755) 112,680 (48,755) Rental income Gain on disposal of foreclosed properties Other non-operating income 2,114 2,911 2,114 2,911 8,644 16,837 8,644 16,837 37,365 40,807 37,365 40,807 30

31 29 OTHER OPERATING EXPENSES Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Personnel costs (a) 97,249 97,478 97,249 97,478 Establishment costs (b) 53,539 49,664 53,539 49,664 Marketing expenses (c) 5,092 4,213 5,092 4,213 Administrative and general expenses (d) 15,870 13,150 15,870 13, , , , ,505 (a) Personnel costs Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Wages, salaries and bonuses 74,064 76,420 74,064 76,420 Defined contribution plan ('EPF') 12,323 12,516 12,323 12,516 Other personnel costs 10,862 8,542 10,862 8,542 97,249 97,478 97,249 97,478 (b) Establishment costs Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Rental of premises 6,175 5,962 6,175 5,962 Equipment rental Repair and maintenance 9,968 9,046 9,968 9,046 Depreciation of property and equipment 3,829 3,699 3,829 3,699 Amortisation of intangible assets 2,019 1,451 2,019 1,451 IT consultancy fees 16,076 16,577 16,076 16,577 Dataline rental 1,702 1,536 1,702 1,536 Security services 4,493 4,289 4,493 4,289 Electricity, water and sewerage 2,960 2,666 2,960 2,666 Insurance and indemnities 4,536 2,548 4,536 2,548 Other establishment costs 1,441 1,524 1,441 1,524 53,539 49,664 53,539 49,664 31

32 29 OTHER OPERATING EXPENSES (continued) (c) Marketing expenses Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Business promotion and advertisement 3,132 2,399 3,132 2,399 Entertainment Traveling and accommodation Other marketing expenses ,092 4,213 5,092 4,213 (d) Administration and general expenses Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Telecommunication expenses 1,300 1,162 1,300 1,162 Auditors' remuneration Professional fees 1,654 2,272 1,654 2,272 Property and equipment written-off Mail and courier charges 1,147 1,007 1,147 1,007 Stationery and consumables 2,939 2,574 2,939 2,574 Commissions expenses 1, , Brokerage expenses Directors' fees and allowances 1, , Donations Settlement, clearing and bank charges 2,659 2,073 2,659 2,073 Stamp duties Operational and litigation write-off expenses GST input tax-non recoverable 1,568-1,568 - Other administration and general expenses ,870 13,150 15,870 13,150 32

33 29 OTHER OPERATING EXPENSES (continued) Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Personnel costs (a) 77,919 78,466 77,919 78,466 Establishment costs (b) 45,105 42,198 45,105 42,198 Marketing expenses (c) 4,552 3,525 4,552 3,525 Administrative and general expenses (d) 12,767 10,701 12,767 10, , , , ,890 (a) Personnel costs Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Wages, salaries and bonus 59,262 61,595 59,262 61,595 Defined contribution plan ('EPF') 9,857 10,089 9,857 10,089 Other personnel costs 8,800 6,782 8,800 6,782 77,919 78,466 77,919 78,466 (b) Establishment costs Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Rental of premises 5,063 4,931 5,063 4,931 Equipment rental Repair and maintenance 8,289 7,808 8,289 7,808 Depreciation of property and equipment 3,558 3,432 3,558 3,432 Amortisation of intangible assets 1,903 1,335 1,903 1,335 IT consultancy fees 13,750 14,277 13,750 14,277 Dataline rental 1,545 1,360 1,545 1,360 Security services 3,533 3,458 3,533 3,458 Electricity, water and sewerage 2,591 2,238 2,591 2,238 Insurance and indemnities 4,119 2,368 4,119 2,368 Other establishment costs ,105 42,198 45,105 42,198 33

34 29 OTHER OPERATING EXPENSES (continued) (c) Marketing expenses Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Business promotion and advertisement 3,040 2,125 3,040 2,125 Entertainment Traveling and accommodation Other marketing expenses ,552 3,525 4,552 3,525 (d) Administration and general expenses Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Telecommunication expenses 1, , Auditors' remuneration Professional fees 1,401 1,949 1,401 1,949 Property and equipment written-off Mail and courier charges Stationery and consumables 2,375 2,022 2,375 2,022 Commissions expenses 1, , Brokerage expenses Directors' fees and allowances Donations Settlement, clearing and bank charges 2,381 1,865 2,381 1,865 Stamp duties Operational and litigation write-off expenses GST input tax-non recoverable 1,137-1,137 - Other administration and general expenses ,767 10,701 12,767 10,701 34

35 30 (WRITE-BACK)/ALLOWANCES FOR IMPAIRMENT LOSSES ON LOANS, ADVANCES AND FINANCING Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Individual impairment - made during the financial period 5,197 86,220 5,197 86,220 - written-back (3,850) (819) (3,850) (819) Collective impairment - net allowance made during the financial period 11,063 50,607 11,063 50,607 Bad debts and financing - recovered (14,287) (12,226) (14,287) (12,226) - written-off (1,656) 124,578 (1,656) 124,578 Individual Quarter Cumulative Quarter Current Preceding Year Current Preceding Year Financial Corresponding Financial Corresponding 31/3/ /3/ /3/ /3/2015 Individual impairment - made during the financial period 4,615 83,783 4,615 83,783 - written-back (3,761) (778) (3,761) (778) Collective impairment - net allowance made during the financial period 8,434 51,208 8,434 51,208 Bad debts and financing - recovered (13,699) (12,089) (13,699) (12,089) - written-off (4,190) 122,920 (4,190) 122,920 35

36 31 COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group and the Bank make various commitments and incurs certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. These commitment and contingencies are not secured over the assets of the Group and the Bank. The commitments and contingencies consist of: Principal Principal Principal Principal amount amount amount amount Direct credit substitutes (*) 638, , , ,935 Transaction-related contingent items 2,038,018 2,027,954 1,854,516 1,879,994 Short-term self-liquidating trade-related contingencies 376, , , ,909 Irrevocable commitments to extend credit: 9,267,401 9,211,778 8,019,753 7,476,032 - maturity less than one year 7,405,172 7,494,453 6,569,827 6,107,115 - maturity more than one year 1,862,229 1,717,325 1,449,926 1,368,917 Foreign exchange related contracts (#): 6,663,259 6,918,839 6,666,512 7,086,226 - less than one year 6,242,199 6,497,779 6,245,452 6,665,166 - one year to less than five years 421, , , ,060 Interest rate related contracts (#): 2,812,210 2,861,139 2,812,210 2,861,139 - less than one year 913, , , ,116 - one year to less than five years 1,301,710 1,612,023 1,301,710 1,612,023 - more than five years 597, , , ,000 Any commitments that are unconditionally cancelled at any time by the bank without prior notice or that effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness 344, , , ,792 Unutilised credit card lines 191, , , ,328 22,331,567 22,301,945 20,589,028 20,192,355 * Included in direct credit substitutes as above are financial guarantee contracts of RM443.1 million and RM432.3 million at the Group and the Bank, respectively (31 December 2015: RM408.2 million and RM398.8 million at the Group and the Bank, respectively), of which fair value at the time of issuance is zero. # The fair value of these derivatives have been recognised as "derivative financial assets" and "derivative financial liabilities" in the statement of financial position and disclosed in Note 15 and 22 to the financial statements. 36