UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 Domiciled in Malaysia Registered office: 19th Floor Menara OCBC 18 Jalan Tun Perak 50050 Kuala Lumpur
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 CONTENTS PAGE STATEMENTS OF FINANCIAL POSITION 3 STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 4-5 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 6-7 STATEMENT OF CHANGES IN EQUITY 8-9 STATEMENTS OF CASH FLOWS 10-11 NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS 12-43 2
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION AS AT 31 MARCH 2018 31 March 31 December 31 March 31 December Note ASSETS Cash and cash equivalents 9 6,934,703 6,158,261 5,980,106 5,571,918 Deposits and placements with banks and other financial institutions 10 333,851 71,835 571,464 182,518 Investment account placement 11 - - 1,533,996 1,793,011 Financial assets at fair value through profit or loss 12 2,356,487 1,690,763 2,346,511 1,690,763 Financial investments at fair value through other comprehensive income 13 13,865,044 13,501,159 9,350,124 8,778,279 Loans, advances and financing 14 65,969,230 67,452,350 56,524,034 57,742,824 Derivative financial assets 16 807,253 835,825 806,457 835,625 Other assets 17 287,470 370,277 537,231 709,911 Statutory deposits with Negara Malaysia 1,944,507 1,752,717 1,629,007 1,427,217 Investments in subsidiaries - - 558,492 558,492 Property and equipment 158,209 162,596 149,392 153,271 Prepaid lease payments 739 748 739 748 Tax recoverable 381 535 - - Deferred tax assets 23,635 26,957 20,563 25,022 Total assets 92,681,509 92,024,023 80,008,116 79,469,599 LIABILITIES Deposits from customers 18 74,756,953 73,652,739 63,287,319 62,490,422 Deposits and placements of banks and other financial institutions 19 3,706,615 4,388,137 3,516,815 3,946,437 Bills and acceptances payable 132,342 166,104 114,315 145,347 Recourse obligation on loans sold to Cagamas Berhad 1,413,452 1,419,252 1,413,452 1,419,252 Derivative financial liabilities 16 914,593 1,080,854 914,165 1,080,427 Other liabilities 21 2,835,844 2,543,806 2,696,589 2,417,222 Tax payable and zakat 59,078 22,793 45,384 15,540 Subordinated bonds 20 1,827,293 1,870,932 1,827,293 1,870,932 Total liabilities 85,646,170 85,144,617 73,815,332 73,385,579 EQUITY Share capital 754,000 754,000 754,000 754,000 Reserves 6,279,837 6,123,912 5,438,784 5,330,020 Non-controlling interest 1,502 1,494 - - Total equity 7,035,339 6,879,406 6,192,784 6,084,020 Total liabilities and equity 92,681,509 92,024,023 80,008,116 79,469,599 Commitments and contingencies 31 95,716,876 91,839,022 91,660,381 88,919,066 The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements of the and for the financial year ended 31 December 2017 and the accompanying explanatory notes to the unaudited condensed interim financial statements. 3
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 Year to date ended Year to date ended 31 March 31 March 31 March 31 March Note Interest income 868,868 853,671 884,961 872,885 Interest expense (509,717) (507,466) (520,571) (521,475) Net interest income 23 359,151 346,205 364,390 351,410 Income from Islamic banking operations 24 105,619 110,679 - - Net fee and commission income 25 83,489 85,710 82,955 85,659 Net trading income 26 68,580 36,289 68,568 36,289 Other operating (expense)/income 27 (966) 5,569 24,704 28,468 Operating income 615,873 584,452 540,617 501,826 Operating expenses 28 (284,290) (255,851) (265,715) (233,954) Operating profit before impairment allowance and provision 331,583 328,601 274,902 267,872 Impairment allowance on loans, advances and financing 29 (7,234) (27,875) (6,687) (12,017) Impairment allowance on Restricted Profit Sharing Investment Accounts - - 1,234 - Impairment allowance on other assets 22 (5) (18) (739) (18) Profit before income tax and zakat 324,344 300,708 268,710 255,837 Income tax expense 30 (80,279) (73,690) (66,762) (63,617) Zakat - (12) - - Profit for the period 244,065 227,006 201,948 192,220 Other comprehensive income, net of income tax Items that will not be reclassified to profit or loss Movement in fair value reserve (equity instruments) - Change in fair value 2,732-2,732 - Items that are or may be reclassified subsequently to profit or loss Movement in fair value reserve (debt instruments) - Change in fair value (30,310) 28,107 (25,174) 18,335 - Amount transferred to profit or loss 6,924 84 6,705 (11) - Related tax 5,762 (6,771) 4,431 (4,400) Change in expected credit loss reserve on debt instruments at fair value through other comprehensive income 48-782 - Other comprehensive (expense)/income for the period, net of income tax (14,844) 21,420 (10,524) 13,924 Total comprehensive income for the period 229,221 248,426 191,424 206,144 4
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 (continued) Year to date ended Year to date ended 31 March 31 March 31 March 31 March Profit attributable to: Owner of the 244,057 227,084 201,948 192,220 Non-controlling interest 8 (78) - - 244,065 227,006 201,948 192,220 Total comprehensive income attributable to: Owner of the 229,213 248,504 191,424 206,144 Non-controlling interest 8 (78) - - 229,221 248,426 191,424 206,144 Basic earnings per ordinary share (sen) 84.9 78.9 70.2 66.9 The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements of the and for the financial year ended 31 December 2017 and the accompanying explanatory notes to the unaudited condensed interim financial statements. 5
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 Non-distributable Distributable Expected Non- Share Regulatory Capital credit loss Fair value Retained controlling Total capital reserve* reserve reserve reserve earnings interest equity At 1 January 2018 754,000 486,000 56,619-107,999 5,473,294 1,494 6,879,406 Effect of adopting MFRS 9 - - - 11,629 (15,811) 80,894-76,712 Restated balance at 1 January 2018 754,000 486,000 56,619 11,629 92,188 5,554,188 1,494 6,956,118 Fair value reserve - Change in fair value - - - - (27,578) - - (27,578) - Transferred to profit or loss - - - - 6,924 - - 6,924 - Income tax effect - - - - 5,762 - - 5,762 Expected credit loss reserve - - Change in expected credit loss - - - 48 - - - 48 Total other comprehensive income/(expense) for the period - - - 48 (14,892) - - (14,844) Profit for the period - - - - - 244,057 8 244,065 Total comprehensive income/(expense) for the period - - - 48 (14,892) 244,057 8 229,221 Transfer to regulatory reserve - 67,000 - - - (67,000) - - Contributions by and distributions to owner of the Dividend payable - Final 2017 ordinary - - - - - (150,000) - (150,000) At 31 March 2018 754,000 553,000 56,619 11,677 77,296 5,581,245 1,502 7,035,339 * The maintains a regulatory reserve to meet local regulatory requirements, which restricts the amount of reserves that can be distributed to the shareholder. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements of the and for the financial year ended 31 December 2017 and the accompanying explanatory notes to the unaudited condensed interim financial statements. 6
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 (continued) Non-distributable Distributable Capital Non- Share Share Statutory Regulatory redemption Capital Fair value Retained controlling Total capital premium reserve reserve* reserve reserve reserve earnings interest equity RM'000 RM'000 At 1 January 2017 287,500 462,500 507,000 375,000 4,000 56,619 79,050 4,651,258 1,396 6,424,323 Fair value reserve - Change in fair value - - - - - - 28,107 - - 28,107 - Transferred to profit or loss - - - - - - 84 - - 84 - Income tax effect - - - - - - (6,771) - - (6,771) Total other comprehensive income for the period - - - - - - 21,420 - - 21,420 Profit for the period - - - - - - - 227,084 (78) 227,006 Total comprehensive income/(expense) for the period - - - - - - 21,420 227,084 (78) 248,426 At 31 March 2017 287,500 462,500 507,000 375,000 4,000 56,619 100,470 4,878,342 1,318 6,672,749 * The maintains a regulatory reserve to meet local regulatory requirements, which restricts the amount of reserves that can be distributed to the shareholder. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements of the and for the financial year ended 31 December 2017 and the accompanying explanatory notes to the unaudited condensed interim financial statements. 7
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 Non-distributable Distributable Expected Share Regulatory credit loss Fair value Retained Total capital reserve* reserve reserve earnings equity RM'000 RM'000 At 1 January 2018 754,000 395,000-104,377 4,830,643 6,084,020 Effect of adopting MFRS 9 - - 8,983 (15,194) 73,551 67,340 Restated balance at 1 January 2018 754,000 395,000 8,983 89,183 4,904,194 6,151,360 Fair value reserve - Change in fair value - - - (22,442) - (22,442) - Transferred to profit or loss - - - 6,705-6,705 - Income tax effect - - - 4,431-4,431 Expected credit loss reserve - Change in expected credit loss - - 782 - - 782 Total other comprehensive income/(expense) for the period - - 782 (11,306) - (10,524) Profit for the period - - - - 201,948 201,948 Total comprehensive income/(expense) for the period - - 782 (11,306) 201,948 191,424 Transfer to regulatory reserve - 67,000 - - (67,000) - Contributions by and distributions to owner of the Dividend payable - Final 2017 ordinary - - - - (150,000) (150,000) At 31 March 2018 754,000 462,000 9,765 77,877 4,889,142 6,192,784 * The maintains a regulatory reserve to meet local regulatory requirements, which restricts the amount of reserves that can be distributed to the shareholder. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements of the and for the financial year ended 31 December 2017 and the accompanying explanatory notes to the unaudited condensed interim financial statements. 8
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 (continued) Non-distributable Distributable Capital Share Share Statutory Regulatory redemption Fair value Retained Total capital premium reserve reserve* reserve reserve earnings equity At 1 January 2017 287,500 462,500 322,000 375,000 4,000 88,558 4,294,510 5,834,068 Fair value reserve - Change in fair value - - - - - 18,335-18,335 - Transferred to profit or loss - - - - - (11) - (11) - Income tax effect - - - - - (4,400) - (4,400) Total other comprehensive income for the period - - - - - 13,924-13,924 Profit for the period - - - - - - 192,220 192,220 Total comprehensive income for the period - - - - - 13,924 192,220 206,144 At 31 March 2017 287,500 462,500 322,000 375,000 4,000 102,482 4,486,730 6,040,212 * The maintains a regulatory reserve to meet local regulatory requirements, which restricts the amount of reserves that can be distributed to the shareholder. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements of the and for the financial year ended 31 December 2017 and the accompanying explanatory notes to the unaudited condensed interim financial statements. 9
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS STATEMENTS OF CASH FLOWS FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 Cash flows from operating activities Year to date ended Year to date ended 31 March 31 March 31 March 31 March Profit before income tax and zakat 324,344 300,708 268,710 255,837 Adjustments for: Amortisation of prepaid lease payments 9 9 9 9 Depreciation of property and equipment 6,903 8,784 5,834 7,623 Impairment allowance/(writeback of provision) on: - Loans, advances and financing 7,234 27,875 6,687 12,017 - Restricted Profit Sharing Investment Accounts - - (1,234) - - Other assets 5 18 739 18 Net loss/(gain) on disposal of: - Financial investments at fair value through other comprehensive income 6,924 84 6,705 (11) - Property and equipment 2 5 1 4 Share-based expenses 1,471 1,245 1,390 1,156 Unrealised (gain)/loss on: - Financial assets at fair value through profit or loss (2,716) (542) (3,185) (542) - Hedging derivatives 12 83 12 83 - Trading derivatives (78,363) 176,604 (77,767) 176,991 - Subordinated bonds (43,639) (14,765) (43,639) (14,765) Operating profit before changes in working capital 222,186 500,108 164,262 438,420 Changes in operating assets and operating liabilities: Deposits and placements with banks and other financial institutions (262,080) 836,781 (389,003) 814,663 Investment account placement - - 260,055 (1,101,477) Financial assets at fair value through profit or loss (530,105) (754,628) (652,377) (754,628) Loans, advances and financing 1,593,851 (2,757,235) 1,318,011 (1,988,845) Other assets 81,760 55,162 172,346 28,811 Statutory deposits with Negara Malaysia (191,790) 292,865 (201,790) 269,865 Derivative financial assets and liabilities (57,961) (9,829) (57,962) (9,827) Deposits from customers 1,104,214 858,191 796,897 1,161,547 Deposits and placements of banks and other financial institutions (681,522) 2,878,298 (429,622) 2,799,925 Bills and acceptances payable (33,762) 8,613 (31,032) (21,724) Other liabilities 139,872 52,616 127,280 3,878 Cash generated from operations 1,384,663 1,960,942 1,077,065 1,640,608 Income tax and zakat paid (58,984) (53,805) (49,937) (45,156) Net cash generated from operating activities 1,325,679 1,907,137 1,027,128 1,595,452 10
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS STATEMENTS OF CASH FLOWS FOR THE FINANCIAL PERIOD ENDED 31 MARCH 2018 (continued) Cash flows from investing activities Year to date ended Year to date ended 31 March 31 March 31 March 31 March Acquisition of financial investments at fair value through other comprehensive income (3,731,737) (5,554,533) (2,025,177) (1,679,411) Acquisition of property and equipment (2,519) (688) (1,956) (589) Proceeds from disposal of financial investments at fair value through other comprehensive income 3,190,812 4,131,970 1,414,145 824,290 Proceeds from disposal of property and equipment 1 109 1 92 Net cash used in investing activities (543,443) (1,423,142) (612,987) (855,618) Cash flows from financing activities Recourse obligation on loans sold to Cagamas Berhad (5,800) (6,317) (5,800) (6,317) Net cash used in financing activities (5,800) (6,317) (5,800) (6,317) Net increase in cash and cash equivalents 776,436 477,678 408,341 733,517 Cash and cash equivalents at 1 January 6,158,448 8,293,096 5,571,918 6,720,113 Cash and cash equivalents at 31 March 6,934,884 8,770,774 5,980,259 7,453,630 Details of cash and cash equivalents are diclosed in Note 9 to the unaudited condensed interim financial statements. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements of the and for the financial year ended 31 December 2017 and the accompanying explanatory notes to the unaudited condensed interim financial statements. 11
NOTES TO THE UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS - 31 MARCH 2018 GENERAL INFORMATION The unaudited condensed consolidated interim financial statements of the as at and for the financial period ended 31 March 2018 comprise the and its subsidiaries (together referred to as the and individually referred to as entities ). The is principally engaged in banking and related financial services, whilst the subsidiaries are principally engaged in the businesses of Islamic ing, corporate finance and related advisory services and, the provision of nominee services. There has been no significant change in the nature of these activities during the financial period. FINANCIAL PERFORMANCE The recorded net profit after tax of RM244 million for the financial period ended 31 March 2018; a growth of RM17 million or 7.5% against the corresponding period last year. The higher profit was largely from growth in NII by RM13 million or 3.7%, higher trading income of RM32 million or 89%, coupled with lower impairment allowances of RM21 million or 74% offset by higher operating expenses of RM28 million or 11%. Income from Islamic banking operations reduced by RM5 million or 4.6% against last year mainly due to derisking offset by lower impairment allowances. Total assets stood at RM92.7 billion; RM0.7 billion or 0.7% higher than the previous year mainly as funds garnered from customer deposits growth of RM1.1 billion were deployed in higher cash holdings and placements with banks and other financial institutions of RM1.0 billion and financial assets at fair value through profit or loss of RM0.7 billion, financial investments at fair value through other comprehensive income of RM0.4 billion while loans, advances and financing reduced by RM1.5 billion. The and the remained well capitalised after taking into consideration the proposed dividend for the financial year ended 31 December 2017, with Common Equity Tier 1 capital ratios of 13.476% and 12.739%, Tier 1 capital ratios of 15.112% and 14.684% and total capital ratios of 17.846% and 17.306%, respectively. ECONOMIC PERFORMANCE AND PROSPECTS Global growth is projected to expand into 2018, driven largely by private consumption and boosted by investment activity in the advanced economies. At this point, risks to the global growth outlook remain balanced, pointing towards continuity in global economic expansion. In Asia, growth is expected to be driven by sustained domestic activity and external demand. Downside risks include trade tensions and future global oil prices which remain highly uncertain. For Malaysia, growth prospects will be sustained by the positive global growth outlook and spillovers from the external sector to the domestic economy. Domestic demand will remain the key driver of growth, underpinned by favourable income and labour market conditions, spending on new and ongoing infrastructure projects and sustained capital investment by firms in the manufacturing and services sectors. With additional impetus from the external sector, growth is expected to remain strong in 2018. 1 BASIS OF PREPARATION The accounting policies set out below have been applied consistently to the periods presented in these unaudited condensed interim financial statements and have been applied consistently by entities, except for the adoption of MFRS 9, Financial Instruments ("MFRS 9") which came into effect on 1 January 2018. As allowed under MFRS 9, the and the have not restated its comparative information. The transition impact arising from the adoption of MFRS 9 are recognised in the opening Retained Earnings. The unaudited condensed interim financial statements are presented in Ringgit Malaysia ("RM"), which is the s functional currency. All financial information presented in RM have been rounded to the nearest thousand, unless otherwise stated. 12
1 BASIS OF PREPARATION (continued) (a) Statement of compliance The unaudited condensed interim financial statements of the and the have been prepared under the historical cost convention (except as disclosed in the notes to the unaudited condensed interim financial statements), in accordance with the Malaysian Financial Reporting Standard ("MFRS") 134, International Financial Reporting Standard 34 and the requirements of the Companies Act 2016 in Malaysia and Shariah requirements (operations of Islamic ing). The unaudited condensed interim financial statements incorporate all activities relating to Islamic ing which have been undertaken by the in compliance with Shariah principles. Islamic ing refers generally to the acceptance of deposits and granting of financing under Shariah principles. The following accounting standards and amendments have been adopted by the and the during the current period: MFRS 9, Financial Instruments (2014) MFRS 15, Revenue from Contracts with Customers Clarifications to MFRS15, Revenue from Contracts with Customers IC Interpretation 22, Foreign Currency Transactions and Advance Consideration Amendments to MFRS 2, Classification and Measurement of Share-based Payment Transactions An explanation of impacts on adoption of MFRS 9 is provided in Note 36. The adoption of the other accounting standards and amendments did not have any significant impact on the and the. The and the have not adopted the following accounting standards, amendments and interpretations issued by the Malaysian Accounting Standards Board ("MASB") as they are not yet effective: Effective for annual periods commencing on or after 1 January 2019 MFRS 16, Leases IC Interpretation 23, Uncertainty over Income Tax Treatments Amendments to MFRS 9, Prepayment Features with Negative Compensation Amendments to MFRS 11, Joint Arrangements (Annual Improvements to MFRS Standards 2015-2017 Cycle) Amendments to MFRS 112, Income Tax (Annual Improvements to MFRS Standards 2015-2017 Cycle) Amendments to MFRS 119, Employee Benefits (Plan Amendment, Curtailment or Settlement) Amendments to MFRS 123, Borrowing Costs (Annual Improvements to MFRS Standards 2015-2017 Cycle) Effective date to be announced by MASB Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures - Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The and the plan to apply the abovementioned accounting standards and amendments when they become effective in the respective financial periods. The initial application of the abovementioned accounting standards and amendments are not expected to have any material impact to the financial statements of the and the except as described below: MFRS 16, Leases MFRS 16 requires recognition of operating lease commitments on balance sheet together with a right of use asset. The and the are currently assessing the financial impact of adopting MFRS 16. 13
1 BASIS OF PREPARATION (continued) (b) Use of estimates and judgements The preparation of the unaudited condensed interim financial statements in conformity with MFRS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. In preparing these unaudited condensed interim financial statements, the significant judgements made by management in applying the 's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited financial statements as at and for the financial year ended 31 December 2017, except as disclosed on adoption of MFRS 9. 2 SIGNIFICANT ACCOUNTING POLICIES The accounting policies applied by the and the in these unaudited condensed interim financial statements are the same as those applied by the and the in its audited financial statements as at and for the financial year ended 31 December 2017, except as disclosed in Note 1(a) and Note 36. 3 SEASONALITY OF OPERATIONS The business operations of the and the are not materially affected by any seasonal factors. 4 SHARE CAPITAL There were no changes in the share capital of the during the financial period. 5 CHANGES IN COMPOSITION OF THE GROUP There were no changes in the composition of the during the financial period ended 31 March 2018. 6 DIVIDENDS No dividend has been proposed for the financial period ended 31 March 2018. 7 SUBSEQUENT EVENTS There were no material events subsequent to the end of the reporting period that require disclosure or adjustments to the unaudited condensed interim financial statements. 8 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 and the for the financial period ended 31 March 2018. 14
9 CASH AND CASH EQUIVALENTS Cash and balances with banks and other financial institutions Money at call and deposit placements with financial institutions maturing within one month Deposit placements with Negara Malaysia Impairment allowance on other placements - Collectively assessed Note 22 31 March 31 December 31 March 31 December Restated 387,867 493,106 330,920 351,502 560,303 1,198,899 859,339 1,570,416 5,986,714 4,466,256 4,790,000 3,650,000 6,934,884 6,158,261 5,980,259 5,571,918 (181) - (153) - 6,934,703 6,158,261 5,980,106 5,571,918 Included in the 's cash and cash equivalents are deposits and placements with OCBC Al-Amin Berhad ("OCBC Al-Amin") of RM299 million (31 December 2017: RM372 million), which are unsecured and profit bearing. 10 DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS Note 31 March 31 December 31 March 31 December Restated Licensed banks 333,915 71,835 571,528 182,518 Impairment allowance on other placements with banks - Collectively assessed 22 (64) - (64) - 333,851 71,835 571,464 182,518 Included in the 's deposits and placements with licensed banks are deposits and placements with OCBC Al-Amin of RM238 million (31 December 2017: RM110 million), which are unsecured and profit bearing. 11 INVESTMENT ACCOUNT PLACEMENT Note 31 March 31 December 31 March 31 December Restricted Profit Sharing Investment Accounts Impairment allowance on RPSIA - Individually assessed - Collectively assessed 22 22 - - 1,601,141 1,861,390 - - (59,818) (59,818) - - (7,327) (8,561) - - 1,533,996 1,793,011 The exposures to Restricted Profit Sharing Investment Accounts ("RPSIA") is an arrangement with OCBC Al-Amin which the contract is based on Mudharabah principle to fund a specific business venture where the solely provides capital and the business venture is managed solely by OCBC Al-Amin. The profit of the business venture arrangement is shared with the as mudarib based on a pre-agreed ratio, and losses borne by the. The comparative figures have been restated to conform with current year presentation which presents RPSIA as a separate line item in the statement of financial position pursuant to BNM's policy on Financial Reporting issued on 2 February 2018. Previously, RPSIA was included in cash and cash equivalents and deposits and placements with banks and other financial institutions based on the maturity. 15
12 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS At fair value Malaysian Government Investment Issues Malaysian Government Securities Malaysian Government Treasury Bills Negara Malaysia Monetary Notes Corporate Bonds and Sukuk Debentures 31 March 31 December 2018 2017 RM'000 RM'000 573,904 359,601 170,116 686,209 566,471 186 2,356,487 269,493 252,505 - - 1,168,765-1,690,763 31 March 31 December 2018 2017 RM'000 RM'000 573,904 269,493 359,601 252,505 170,116-686,209-556,495 1,168,765 186-2,346,511 1,690,763 13 FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME At fair value Malaysian Government Investment Issues Malaysian Government Securities and Sukuk Malaysian Treasury Bills and Islamic Treasury Bills Malaysian Government Debt Securities and Sukuk Negara Bills Negara Malaysia Monetary Notes Foreign Government Debt Securities and Sukuk Negotiable Instruments of Deposit and Islamic Negotiable Instruments of Deposit Corporate and Islamic Corporate Bonds, Sukuk and Sanadat Mudharabah Cagamas Unquoted shares in Malaysia Debentures At cost Unquoted shares in Malaysia* Impairment allowance - Debentures 31 March 31 December 31 March 31 December 4,669,609 4,824,454 2,459,229 2,670,438 1,814,937 2,272,777 1,814,937 2,272,777 249,256 248,701 249,256 198,820 169,786 172,070 76,085 76,882 6,544 - - - 99,946-99,946-716,638 596,729 525,438 394,732 2,235,417 1,653,492 922,602 162,268 3,806,823 3,624,212 3,106,543 2,893,638 96,088-96,088 - - 190-190 13,865,044 13,392,625 9,350,124 8,669,745-108,546-108,546 13,865,044 13,501,171 9,350,124 8,778,291 - (12) - (12) 13,865,044 13,501,159 9,350,124 8,778,279 * Stated at cost due to the lack of quoted prices in an active market and/or the fair value of the investments cannot be reliably measured. 16
14 LOANS, ADVANCES AND FINANCING At amortised cost Overdrafts Term loans/financing: - Housing loans/financing - Syndicated term loans/financing - Hire purchase receivables - Other term loans/financing Credit cards Bills receivable Trust receipts Claims on customers under acceptance credits Revolving credit Staff loans/financing Other loans/financing At fair value Other term loans/financing Gross loans, advances and financing Impairment allowance - Individually assessed - Collectively assessed Net loans, advances and financing a) By type of customer Domestic banking institutions Domestic non-bank financial institutions Domestic business enterprises - Small and medium enterprises - Others Individuals Foreign entities Note 22 22 31 March 31 December 31 March 31 December 2,892,157 2,938,259 2,892,157 2,938,259 26,699,446 27,115,889 24,709,078 25,109,866 3,034,531 2,667,458 2,689,921 2,307,642 440,257 447,683 10 10 20,800,430 22,383,800 17,415,714 18,823,707 540,311 561,471 540,311 561,471 358,496 506,083 336,069 485,680 38,901 36,343 38,739 36,225 3,203,399 3,108,578 2,745,788 2,646,951 7,063,040 7,098,771 4,118,387 4,083,691 62,200 62,702 62,200 62,702 1,641,837 1,515,508 1,519,805 1,397,019 66,775,005 68,442,545 57,068,179 58,453,223 56,958-56,958-66,831,963 68,442,545 57,125,137 58,453,223 (391,169) (389,432) (268,127) (263,555) (471,564) (600,763) (332,976) (446,844) 65,969,230 67,452,350 56,524,034 57,742,824 9,547 435 9,547 435 1,228,725 1,439,704 1,178,214 1,386,702 12,924,254 12,936,680 10,841,017 10,955,266 19,079,733 19,708,247 15,205,342 15,574,236 30,014,341 30,615,975 27,566,486 28,104,304 3,575,363 3,741,504 2,324,531 2,432,280 66,831,963 68,442,545 57,125,137 58,453,223 17
14 LOANS, ADVANCES AND FINANCING (continued) 31 March 31 December 31 March 31 December b) By interest/profit rate sensitivity Fixed rate - Housing loans/financing - Hire purchase receivables - Other fixed rate loans/financing Variable rate - Base rate/base lending rate/base financing rate plus - Cost plus - Other variable rates 84,704 90,160 65,841 69,577 234,831 256,962 10 10 6,691,173 6,642,975 4,999,794 4,816,469 43,054,867 43,698,917 39,440,189 40,147,213 16,348,017 17,352,150 12,200,932 13,018,573 418,371 401,381 418,371 401,381 66,831,963 68,442,545 57,125,137 58,453,223 c) By sector Agriculture, hunting, forestry and fishing Mining and quarrying Manufacturing Electricity, gas and water Construction Real estate Wholesale & retail trade and restaurants & hotels Transport, storage and communication Finance, insurance and business services Community, social and personal services Household - Purchase of residential properties - Purchase of non-residential properties - Others Others 3,004,829 2,955,717 1,594,988 1,563,034 566,731 602,558 326,062 342,350 7,464,932 7,518,600 6,221,485 6,107,704 296,049 304,729 245,699 250,764 2,251,416 2,260,653 1,782,550 1,811,551 7,268,546 6,892,385 6,636,116 6,336,790 7,018,326 7,032,064 6,079,328 6,026,701 1,161,976 2,160,818 1,006,378 1,986,541 2,097,001 2,485,452 1,861,215 2,238,318 2,153,321 2,047,320 1,521,796 1,438,775 27,787,194 28,226,634 25,763,110 26,186,804 1,088,857 1,119,879 1,046,436 1,077,250 2,961,797 3,039,009 2,456,744 2,489,700 1,710,988 1,796,727 583,230 596,941 66,831,963 68,442,545 57,125,137 58,453,223 d) By geographical distribution Malaysia Singapore Other ASEAN countries Rest of the world 63,465,713 64,934,877 54,816,993 56,062,788 1,719,716 1,698,228 1,103,693 1,047,593 569,150 597,615 359,654 370,525 1,077,384 1,211,825 844,797 972,317 66,831,963 68,442,545 57,125,137 58,453,223 The analysis by geography is determined based on where the credit risk resides. e) By residual contractual maturity Within one year One year to less than three years Three years to less than five years Over five years 17,849,167 18,572,772 13,822,117 14,440,795 4,078,708 4,260,464 3,420,053 3,514,010 3,929,928 4,265,238 3,066,318 3,326,238 40,974,160 41,344,071 36,816,649 37,172,180 66,831,963 68,442,545 57,125,137 58,453,223 18
15 IMPAIRED LOANS, ADVANCES AND FINANCING (i) Movements in impaired loans, advances and financing At 1 January Impaired during the period/year Reclassified as unimpaired Amount recovered Amount written off Effect of foreign exchange difference At 31 March/31 December Impairment allowance - Individually assessed - Collectively assessed Net impaired loans, advances and financing a) By sector Note 22 31 March 31 December 31 March 31 December 1,430,623 1,485,727 1,047,051 1,188,175 261,466 1,142,847 207,756 736,614 (111,832) (555,977) (91,805) (454,117) (68,241) (370,909) (41,713) (241,217) (27,368) (251,858) (14,239) (172,275) (7,136) (19,207) (3,715) (10,129) 1,477,512 1,430,623 1,103,335 1,047,051 (391,169) (389,432) (268,127) (263,555) (4,896) (9,653) (4,896) (6,017) 1,081,447 1,031,538 830,312 777,479 Agriculture, hunting, forestry and fishing Mining and quarrying Manufacturing Construction Real estate Wholesale & retail trade and restaurants & hotels Transport, storage and communication Finance, insurance and business services Community, social and personal services Household - Purchase of residential properties - Purchase of non-residential properties - Others Others 6,562 6,742 6,317 6,307 83,908 89,569 83,908 89,569 225,869 233,978 201,886 207,659 18,143 15,933 13,355 11,774 67,909 21,394 62,964 16,099 182,698 181,977 143,859 137,044 63,707 70,470 59,741 65,931 21,417 18,827 10,746 7,928 6,763 7,031 5,312 5,661 489,051 465,784 424,677 405,180 26,441 30,066 26,194 29,804 95,421 96,365 63,819 63,538 189,623 192,487 557 557 1,477,512 1,430,623 1,103,335 1,047,051 b) By geographical distribution Malaysia Singapore Rest of the world 1,453,934 1,411,431 1,079,757 1,027,859 10,530 15,371 10,530 15,371 13,048 3,821 13,048 3,821 1,477,512 1,430,623 1,103,335 1,047,051 The analysis by geography is determined based on where the credit risk resides. 19
16 DERIVATIVE FINANCIAL ASSETS AND LIABILITIES 31 March 2018 31 December 2017 Contract or Contract or underlying underlying principal Fair value principal Fair value amount Assets Liabilities amount Assets Liabilities RM'000 RM'000 Trading Foreign exchange derivatives - Forwards - Swaps - Options Interest rate derivatives - Swaps - Options - Futures Equity and other derivatives - Swaps - Options - Commodity futures - Credit linked notes Hedging Interest rate derivatives - Swaps Trading Foreign exchange derivatives - Forwards - Swaps - Options Interest rate derivatives - Swaps - Options - Futures Equity and other derivatives - Swaps - Options - Commodity futures - Credit linked notes Hedging Interest rate derivatives - Swaps 4,243,485 30,224 150,099 3,292,964 23,417 103,020 14,729,683 594,917 569,597 14,598,777 646,655 784,967 726,785 3,494 1,075 353,697 2,119 988 43,934,221 156,121 168,210 44,389,512 138,134 162,926 180,000 338 809 180,000 442 1,074 1,301,260 53 80 80,911-16 146,220 8,092 8,092 132,500 7,271 7,271 - - - 3,780 - - 124,347 2,199 4,588 161,498 2,567 3,758 654,443 11,546 11,546 474,416 15,220 15,220 66,040,444 806,984 914,096 63,668,055 835,825 1,079,240 111,820 269 497 114,729-1,614 66,152,264 807,253 914,593 63,782,784 835,825 1,080,854 4,198,947 29,208 149,671 3,290,208 23,217 102,593 14,745,138 595,137 569,597 14,598,777 646,655 784,967 726,785 3,494 1,075 353,697 2,119 988 43,934,221 156,121 168,210 44,389,512 138,134 162,926 180,000 338 809 180,000 442 1,074 1,301,260 53 80 80,911-16 146,220 8,092 8,092 132,500 7,271 7,271 - - - 3,780 - - 124,347 2,199 4,588 161,498 2,567 3,758 654,443 11,546 11,546 474,416 15,220 15,220 66,011,361 806,188 913,668 63,665,299 835,625 1,078,813 111,820 269 497 114,729-1,614 66,123,181 806,457 914,165 63,780,028 835,625 1,080,427 20
17 OTHER ASSETS Note 31 March 31 December 31 March 31 December Amount due from subsidiaries Interest/Profit receivable Unquoted Islamic subordinated bonds of subsidiary - Redeemable subordinated bond Other receivables, deposits and prepayments Impairment allowance on other receivables - Individually assessed - Collectively assessed (a) - - 126,130 134,749 77,798 177,436 106,001 113,005 (b) - - 200,000 200,000 162,387 237,900 153,946 221,842 22 22 (514) (2,372) (514) (2,372) (533) - - - 287,470 370,277 537,231 709,911 (a) The amount due from subsidiaries is unsecured, interest/profit free and repayable on demand. (b) The subscribed for RM200 million redeemable 10 years non-callable 5 years subordinated bond issued by OCBC Al-Amin under the principle of Murabahah at a profit rate of 4.80% per annum payable semi-annually in arrears from the issue date with the last Periodic Profit Payment to be made up to (but excluding) the maturity date or early redemption of the Murabahah subordinated bond, whichever is earlier. 18 DEPOSITS FROM CUSTOMERS a) By type of deposit Demand deposits Fixed/General investment deposits Saving deposits Negotiable instruments of deposits Short-term money market deposits 31 March 31 December 31 March 31 December 14,425,380 14,959,903 10,828,848 11,246,027 45,344,273 43,103,460 38,353,929 36,491,363 7,395,308 7,441,043 6,924,431 6,956,711 3,863,721 5,104,660 3,863,720 5,104,660 3,728,271 3,043,673 3,316,391 2,691,661 74,756,953 73,652,739 63,287,319 62,490,422 b) By type of customer Government and statutory bodies Non-bank financial institutions Business enterprises Individuals Foreign entities Others 1,963,496 1,427,339 147,439 81,052 3,648,015 3,021,481 2,913,145 2,318,319 28,705,496 27,959,118 23,189,961 22,233,620 33,317,226 32,642,260 30,080,504 29,427,322 6,470,722 7,571,149 6,366,503 7,468,190 651,998 1,031,392 589,767 961,919 74,756,953 73,652,739 63,287,319 62,490,422 21
18 DEPOSITS FROM CUSTOMERS (continued) c) By maturity structure for fixed/term/general investment deposits, negotiable instruments of deposit and short-term money market deposits 31 March 31 December 31 March 31 December Within six months Six months to one year One year to three years Three years to five years 37,875,036 38,077,174 32,919,076 33,260,943 14,712,128 12,418,069 12,296,335 10,436,494 340,514 747,784 310,564 581,992 8,587 8,766 8,065 8,255 52,936,265 51,251,793 45,534,040 44,287,684 19 DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS 31 March 31 December 31 March 31 December Licensed banks and other financial institutions 20 SUBORDINATED BONDS RM400 million Innovative Tier 1 Capital Securities USD110 million Additional Tier 1 Capital Securities USD130 million Redeemable Subordinated Bonds 2015/2025 RM390 million Redeemable Subordinated Bonds 2017/2027 RM110 million Redeemable Subordinated Bonds 2017/2027 21 OTHER LIABILITIES 3,706,615 4,388,137 3,516,815 3,946,437 and 31 March 31 December 2018 2017 RM'000 RM'000 400,000 400,000 425,009 445,010 502,284 525,922 390,000 390,000 110,000 110,000 1,827,293 1,870,932 31 March 31 December 31 March 31 December Amount due to subsidiaries Equity compensation benefits Interest/Profit payable Structured investments Dividend payable Other payables and accruals - - 2,464 21,654 13,734 12,476 12,975 11,780 519,887 528,833 452,567 459,912 1,782,657 150,000 1,610,026-1,782,657 150,000 1,610,026-369,566 392,471 295,926 313,850 2,835,844 2,543,806 2,696,589 2,417,222 The amount due to subsidiaries is unsecured, interest/profit free and repayable on demand. 22
22 IMPAIRMENT ALLOWANCES The following tables show reconciliations from the opening to the closing balance of the impairment allowances by class of financial assets. Explanation of the terms: 12-months ECL, lifetime ECL and credit-impaired are included in Note 35. Comparative amounts of 2017 represent impairment allowance measured under MFRS 139. a) Collective impairment Cash and cash equivalents Deposits and placements with banks and other financial institutions Financial assets at fair value through other comprehensive income (FVOCI) Loans, advances and financing Other assets RM'000 2018 At 31 December 2017 - under MFRS 139 - - - 600,763 - Remeasurement 215 32 11,629 (117,085) 1,092 At 1 January 2018 - under MFRS 9 215 32 11,629 483,678 1,092 At 1 January 2018-12 months expected credit loss (ECL) 215 32 8,380 182,120 469 - Lifetime ECL not credit impaired - - 3,249 301,558 623 215 32 11,629 483,678 1,092 (Written back)/charge - 12 months expected credit loss (ECL) (34) 32 59 (4,345) (24) - Lifetime ECL not credit impaired - - (11) (7,769) (21) (34) 32 48 (12,114) (45) At 31 March 2018-12 months expected credit loss (ECL) 181 64 8,439 177,775 445 - Lifetime ECL not credit impaired - - 3,238 293,789 602 181 64 11,677 471,564 1,047 2017 At 1 January 2017 - - - 747,243 - Written back - - - (146,480) - At 31 December 2017 - - - 600,763-23
21 IMPAIRMENT ALLOWANCES (continued) a) Collective impairment (continued) Cash and cash equivalents Deposits and placements with banks and other financial institutions Investment account placement Financial assets at fair value through other comprehensive income (FVOCI) Loans, advances and financing Other assets RM'000 RM'000 2018 At 31 December 2017 - under MFRS 139 - - 8,561-446,844 - Remeasurement 187 32-8,983 (105,028) 559 At 1 January 2018 - under MFRS 9 187 32 8,561 8,983 341,816 559 At 1 January 2018-12 months expected credit loss (ECL) 187 32 8,561 6,464 137,705 301 - Lifetime ECL not credit impaired - - - 2,519 204,111 258 187 32 8,561 8,983 341,816 559 (Written back)/charge - 12 months expected credit loss (ECL) (34) 32 (1,234) 586 (3,293) (24) - Lifetime ECL not credit impaired - - - 196 (5,547) (21) (34) 32 (1,234) 782 (8,840) (45) At 31 March 2018-12 months expected credit loss (ECL) 153 64 7,327 7,050 134,412 277 - Lifetime ECL not credit impaired - - - 2,715 198,564 237 153 64 7,327 9,765 332,976 514 2017 At 1 January 2017 - - - - 560,264 - Charge/(Written back) - - 8,561 - (113,420) - At 31 December 2017 - - 8,561-446,844-24
21 IMPAIRMENT ALLOWANCES (continued) b) Individual impairment Investment account placement Loans, advances and financing Other assets Investment account placement Loans, advances and financing Other assets RM'000 RM'000 2018 As 1 January 2018-389,432 2,372 59,818 263,555 2,372 Charge - 67,827 5-42,867 5 Written back - (35,981) - - (21,936) - Written off - (27,368) (2,377) - (14,239) (2,377) Discount unwind and financing income earned on impaired financing - (2,741) - - (2,120) - At 31 March 2018-391,169-59,818 268,127-2017 As 1 January 2017-352,074 2,609-272,031 2,609 Charge - 477,552 50 59,818 280,820 50 Written back - (182,077) - - (111,766) - Written off - (251,858) (50) - (172,275) (50) Discount unwind and financing income earned on impaired financing - (6,259) (237) - (5,255) (237) At 31 December 2017-389,432 2,372 59,818 263,555 2,372 25
23 NET INTEREST INCOME Interest income Loans, advances and financing - Interest income other than recoveries - Recoveries from impaired loans, advances and financing - Discount unwind from impaired loans, advances and financing Money at call and deposit placements with banks and other financial institutions Financial assets at fair value though profit or loss Financial investments at fair value through other comprehensive income Unquoted Islamic subordinated bond of subsidiary Others Interest expense Deposits from customers Deposits and placements of banks and other financial institutions Recourse obligation on loans sold to Cagamas Berhad Subordinated bonds Others Net interest income Year to date ended Year to date ended 31 March 31 March 31 March 31 March 701,866 681,458 701,866 681,458 12,866 15,348 12,866 15,348 2,120 1,533 2,120 1,533 37,197 43,521 50,164 59,642 18,716 18,582 18,716 18,582 80,824 70,487 81,582 71,213 - - 2,367 2,367 15,279 22,742 15,280 22,742 868,868 853,671 884,961 872,885 (432,327) (404,871) (432,327) (404,871) (3,878) (17,287) (14,732) (31,296) (13,805) (12,665) (13,805) (12,665) (22,399) (23,790) (22,399) (23,790) (37,308) (48,853) (37,308) (48,853) (509,717) (507,466) (520,571) (521,475) 359,151 346,205 364,390 351,410 24 INCOME FROM ISLAMIC BANKING OPERATIONS Year to date ended 31 March 31 March 2018 2017 RM'000 RM'000 Income derived from investment of depositors' funds and others Income derived from investment of specific investment account funds Income derived from investment of shareholder's funds Income attributable to depositors Income attributable to investment account holder 151,812 158,739 15,505 20,006 34,408 27,123 (85,253) (81,179) (10,853) (14,010) 105,619 110,679 26
25 NET FEE AND COMMISSION INCOME Year to date ended Year to date ended 31 March 31 March 31 March 31 March Commission Service charges and fees Guarantee fees Other fee income 26 NET TRADING INCOME Foreign exchange gain Realised gain on financial assets at fair value through profit or loss Realised (loss)/gain on trading derivatives Unrealised gain on financial assets at fair value through profit or loss Unrealised gain/(loss) on trading derivatives 43,524 38,537 42,990 38,486 30,454 36,561 30,454 36,561 7,217 8,447 7,217 8,447 2,294 2,165 2,294 2,165 83,489 85,710 82,955 85,659 Year to date ended Year to date ended 31 March 31 March 31 March 31 March 181,863 85,495 181,863 85,495 7,585 4,356 7,585 4,356 (201,820) 122,887 (201,832) 122,887 3,185 542 3,185 542 77,767 (176,991) 77,767 (176,991) 68,580 36,289 68,568 36,289 27 OTHER OPERATING INCOME (Loss)/gain on disposal: - Financial investments at fair value through other comprehensive income - Property and equipment Rental of premises Rental of safe deposit boxes Shared services income received from subsidiaries Shared services income received from related company Unrealised loss on hedging derivatives Others Year to date ended Year to date ended 31 March 31 March 31 March 31 March (6,705) 11 (6,705) 11 (1) (4) (1) (4) 1,083 1,102 1,100 1,114 1,711 1,707 1,711 1,707 - - 25,654 23,045 2,845 2,703 2,845 2,545 (12) (83) (12) (83) 113 133 112 133 (966) 5,569 24,704 28,468 27
28 OPERATING EXPENSES Year to date ended Year to date ended 31 March 31 March 31 March 31 March Personnel expenses Wages, salaries and bonus Employees Provident Fund contributions Share-based expenses Others Establishment expenses Depreciation of property and equipment Rental of premises Repair and maintenance Information technology costs Hire of equipment Amortisation of prepaid lease payments Others Marketing expenses Advertisement and business promotion Transport and travelling Others General administrative expenses Transaction processing fees Others Total operating expenses 112,922 93,292 108,062 87,192 17,833 14,323 16,994 13,404 1,471 1,245 1,390 1,156 13,778 8,166 12,723 7,398 146,004 117,026 139,169 109,150 6,903 8,784 5,834 7,623 4,673 4,700 3,953 4,003 2,760 2,702 2,535 2,524 7,506 2,349 7,084 2,299 224 269 188 235 9 9 9 9 4,254 4,410 3,684 3,822 26,329 23,223 23,287 20,515 3,091 4,108 3,083 4,024 879 791 821 703 467 671 460 666 4,437 5,570 4,364 5,393 79,380 81,282 73,598 74,690 28,140 28,750 25,297 24,206 107,520 110,032 98,895 98,896 284,290 255,851 265,715 233,954 29 IMPAIRMENT ALLOWANCE ON LOANS, ADVANCES AND FINANCING Individual impairment allowance - Made during the period - Written back Collective impairment allowance - (Written back)/made during the period Impaired loans, advances and financing - Recovered during the period Year to date ended Year to date ended 31 March 31 March 31 March 31 March 67,827 76,221 42,867 40,385 (35,981) (39,300) (21,936) (22,699) (12,114) 3,500 (8,840) - (12,498) (12,546) (5,404) (5,669) 7,234 27,875 6,687 12,017 28
30 INCOME TAX EXPENSE Malaysian income tax - Current period Expenses not deductible for tax purposes - Origination and reversal of temporary differences Year to date ended Year to date ended 31 March 31 March 31 March 31 March 70,193 62,350 56,870 52,594 10,086 11,340 9,892 11,023 80,279 73,690 66,762 63,617 31 COMMITMENTS AND CONTINGENCIES In the normal course of business, the and the make various commitments and incur certain contingent liabilities with legal recourse to their customers. There are no material losses anticipated as a result of these transactions. The credit equivalent and risk weighted amounts were computed using the credit conversion factors and risk weights as defined in BNM's Capital Adequacy Framework (Basel ll) - Internal Ratings Approach. 31 March 2018 Direct credit substitutes Transaction-related contingent items Short-term self-liquidating trade-related contingencies Forward asset purchases, forward deposits, partly paid shares and securities Foreign exchange related contracts - Less than one year - One year to less than five years - Five years and above Interest rate contracts - Less than one year - One year to less than five years - Five years and above Equity and commodity related contracts Credit derivative contracts Formal standby facilities and credit lines - Maturity exceeding one year Other unconditionally cancellable commitments Total Positive Negative fair value of fair value of Credit Risk Principal derivative derivative equivalent weighted amount contracts contracts amount amount RM'000 718,448 718,448 601,101 2,866,147 1,459,076 951,689 337,668 75,036 35,438 23,452 23,452 5,573 13,200,083 236,390 357,370 431,995 95,654 3,520,832 142,217 166,552 531,747 138,251 2,979,038 250,028 196,849 580,942 387,042 11,129,031 5,373 13,181 27,826 3,717 24,788,256 52,103 71,284 677,118 191,305 9,610,014 99,305 85,131 238,794 114,921 270,567 10,291 12,680 21,947 6,098 654,443 11,546 11,546 22,166 5,819 4,124,217 3,595,246 1,479,431 21,494,680 2,073,139 327,577 95,716,876 807,253 914,593 10,476,932 4,343,616 29