interim financial statements for the financial quarter ... - Al Rajhi Bank
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2014
Registered Office
Ground Floor, East Block Wisma Selangor Dredging 142-B Jalan Ampang 50450 Kuala Lumpur
1
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2014
Note
Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000
ASSETS Cash and short-term funds Hedging on financial instruments Securities held-for-trading Securities held-to-maturity Financing and advances Other assets Statutory deposits with Bank Negara Malaysia Investment properties Property and equipment Intangible assets Deferred tax assets Total Assets
109,751 1,455 4,896 1,411,906 4,770,784 36,593 237,464 105,000 15,499 31,794 77,845 6,802,987
455,387 1,788 4,792 1,035,903 4,784,898 41,099 194,268 105,000 18,453 35,203 77,845 6,754,636
5,499,078 516,712 812 11,588 56,770 6,084,960
4,401,696 1,581,452 610 12,541 42,408 6,038,707
Shareholder’s equity Share capital Reserves Total Shareholder’s Equity
1,000,000 (281,973) 718,027
1,000,000 (284,071) 715,929
Total Liabilities and Shareholder’s Equity
6,802,987
6,754,636
2,253,717
2,021,372
9 10 11 12
LIABILITIES AND SHAREHOLDER’S EQUITY Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging on financial instruments Bills and acceptances payable Other liabilities Total Liabilities
13 14 9
COMMITMENTS AND CONTINGENCIES
21
CAPITAL ADEQUACY Core capital ratio Risk-weighted capital ratio
23 13.28% 14.64%
13.04% 14.43%
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013
2
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME rd FOR THE 3 QUARTER ENDED 30 SEPTEMBER 2014 rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 Note RM’000 RM’000 Revenue
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
90,893
83,415
261,585
251,912
Income derived from investment of depositors’ funds and others
15
83,662
74,235
238,988
223,465
Income derived from investment of shareholders’ funds
16
7,231
9,180
22,597
28,447
Allowance for impairment on financing
17
(5,140)
(3,342)
(14,234)
(10,360)
(1)
(22)
(4)
(34)
85,752
80,051
247,347
241,518
(45,511)
(38,655)
(128,334)
(115,143)
40,241
41,396
119,013
126,375
Personnel expenses
(19,075)
(17,140)
(56,889)
(54,573)
Other overheads and expenditures
(20,025)
(22,894)
(60,075)
(68,348)
1,141
1,362
2,049
3,454
Other expenses directly attributable to the investment of the depositors’ funds Total distributable income Income attributable to depositors Total net income
Profit before zakat and taxation
18
Zakat
-
-
-
-
Taxation
-
-
-
-
Net profit for the period Other comprehensive income: - Securities available-for-sale - Transfer to Wakalah reserve Total comprehensive income / (loss) for the period
1,141
1,362
2,049
3,454
74
(26) (12)
49
(26) 14
1,215
1,324
2,098
3,442
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013.
3
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENT OF CHANGES IN EQUITY rd FOR THE 3 QUARTER ENDED 30 SEPTEMBER 2014
Non-distributable Group and Bank Share Capital
Statutory Available-for-sale Accumulated Reserve reserve losses
Total
At 1 January 2014 Total comprehensive income for the financial period
1,000,000
1,574
-
(285,645)
715,929
-
-
-
2,098
2,098
At 30 September 2014
1,000,000
1,574
-
(283,547)
718,027
At 1 January 2013 Total comprehensive income for the financial period
1,000,000
-
26
(287,216)
712,810
-
-
(26)
3,468
3,442
At 30 September 2013
1,000,000
-
-
(283,748)
716,252
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013.
4
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENT OF CASH FLOWS rd FOR THE 3 QUARTER ENDED 30 SEPTEMBER 2014 Group and Bank 30 September 30 September 2014 2013 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before zakat and tax
2,049
3,454
7,074 8,331 18,032 354 (4,152) 1,281
8,772 6,437 13,085 (2,725) 2,244
(104) 32,865
104 31,371
332 (120) 4,507 (43,196)
46,427 (365,049) 402,604 (44,296)
1,097,382 (1,065,819) (953) 14,411 39,409
(224,930) 356,065 (149,063) (12,285) 40,844
Purchase of property and equipment Purchase of intangible asset Securities available-for-sale Securities held-to-maturity Net cash used in investing activities
(4,120) (4,922) (376,003) (385,045)
(2,185) (1,998) 233,822 (998,570) (768,931)
NET DECREASE / INCREASE IN CASH AND CASH EQUIVALENTS
(345,636)
(728,087)
CASH AND CASH EQUIVALENTS - As at the beginning of the period
455,387
1,458,642
- AS AT END OF THE PERIOD
109,751
730,555
Adjustments for: Depreciation of property and equipment Amortisation of intangible assets Allowance for impairment on financing Bad debt on financing – Written-off Bad debt on financing – Recovered Unrealised loss / (gain) from foreign exchange translations Unrealised loss / (gain) on revaluation of securities held-for-trading/ investment properties
(Increase) / decrease in Operating Assets Deposits and placements with banks and other financial institutions Financing and advances Other assets Statutory deposits with Bank Negara Malaysia Increase / (decrease) in Operating Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Bills and acceptances payable Other liabilities Net cash generated in operating activities CASH FLOWS FROM INVESTING ACTIVITIES
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013.
5
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 1.
BASIS OF PREPARATION The unaudited condensed interim financial statements have been prepared in accordance with the applicable requirements of MFRS 134: Interim Financial Reporting in Malaysia issued by Malaysian Accounting Standards Board (MASB), Financial Reporting for Islamic Banking Institution policy issued by Bank Negara Malaysia (BNM), the provisions of the Companies Act, 1965 and Shariah requirements. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 December 2013. The explanatory notes attached to the consolidated condensed interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the year ended 31 December 2013.
2.
ACCOUNTING POLICIES The significant accounting policies and methods of computation applied in the unaudited condensed interim financial statements are consistent with those adopted in the most recent audited financial statements for the year ended 31 December 2013, unless otherwise stated. The following MFRS, IC Interpretation and Amendments to MFRSs have been adopted by the Group during the current period: Effective for annual periods commencing on or after 1 January 2014 Amendments to MFRS 132: Financial Instruments Presentation Amendments to MFRS 10, MFRS 12 and MFS 127: Investment Entities Amendments to MFRS 136: Recoverable Amount Disclosures for Non-Financial Asstes Amendments to MFRS 139: Novation of Derivatives and Continuation of Hedge Accounting IC interpretation 21: Levies The adoption of MFRSs above do not have any financial impact on the Group and the Bank as they mainly help to clarify the requirements of or provide further explanations to existing MFRSs. The following MFRSs and IC Interpretations have been issued by the MASB and are not yet effective: Effective for the financial period beginning on or after 1 July 2014: Amendments to MFRS 119: Defined Benefits Plans: Employee Contributions Annual improvements to MFRSs 2010 - 2012 cycle Annual improvements to MFRSs 2011 - 2013 cycle The effective dates of the following standards have been deferred to a date to be announced by the Malaysian Accounting Standards Board ("MASB"): MFRS 9 Financial Instruments (IFRS 9 issued by IASB in November 2009) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in October 2010) MFRS 9 Financial Instruments: Hedge Accounting and amendments to MFRS 9, MFRS 7 and MFRS 139
6
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 3.
AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2013 was not qualified.
4.
COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS The operations of the Group and the Bank were not materially affected by any seasonal or cyclical factors rd in the 3 quarter ended 30 September 2014.
5.
UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE There were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group rd and the Bank in the 3 quarter ended 30 September 2014.
6.
CHANGES IN ESTIMATE There were no changes in estimates of amounts reported in prior financial years that have a material rd effect in the 3 quarter ended 30 September 2014.
7.
DEBT AND EQUITY SECURITIES There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in rd the 3 quarter ended 30 September 2014.
8.
DIVIDENDS PAID rd
There were no dividends paid during the 3 quarter and nine months ended 30 September 2014.
7
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 9.
HEDGING FINANCIAL INSTRUMENTS Fair Value Group and Bank
10.
Notional Amount RM’000
Assets RM’000
Liabilities RM’000
Unaudited 30 September 2014 Foreign currency forward contracts
84,207
1,455
812
Audited 31 December 2013 Foreign currency forward contracts
74,790
1,788
610
SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 At fair value Quoted securities: Unit Trust
11.
4,896
4,792
SECURITIES HELD-TO-MATURITY Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,368 7,538 1,411,906
8
1,014,320 21,583 1,035,903
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (a)
Financing and advances analysed by types and Shariah contracts are as follows:
Group and Bank Bai’ Bithaman Ajil RM’000
At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
2,753,000 1,165,854 777,069 89,975 85,830 39,793 4,911,521
Unaudited 30 September 2014 Total net financing and Qard advances RM’000 RM’000 2,066 2,066
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
2,753,000 1,165,854 777,069 89,975 85,830 39,793 2,066 4,913,587 (98,760) (44,043) 4,770,784
Bai’ Bithaman Ajil
Group and Bank
RM’000 At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
2,769,288 1,094,437 838,482 107,416 76,662 37,279 4,923,504
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Audited 31 December 2013 Total net Qard financing and advances RM’000 RM’000 2,216 2,216
2,769,228 1,094,437 838,482 107,416 76,662 37,279 2,216 4,925,720 (96,781) (44,041) 4,784,898
9
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (b)
Financing and advances analysed by type of customers are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
(c)
71,160 1,151,895 2,036,224 1,654,308 4,913,587
264,049 1,004,978 2,016,064 1,640,629 4,925,720
Financing and advances analysed by profit rate sensitivity are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Fixed rate: Corporate financing Personal financing SME financing Home financing Vehicle financing Charge card Shop-house financing Variable rate: Home financing Shop-house financing Corporate financing
10
1,228,855 777,069 89,975 18,921 85,830 2,066 1,068
1,260,468 838,482 107,416 22,382 76,662 2,216 1,167
1,146,933 38,725 1,524,145 4,913,587
1,072,055 36,112 1,508,760 4,925,720
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (d)
Financing and advances analysed by maturity structure are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Due within three months More than three months to one year More than one year to five years More than five years
(e)
541,028 173,466 2,112,572 2,086,521 4,913,587
531,779 430,626 1,886,315 2,077,000 4,925,720
Financing and advances analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Malaysia Saudi Arabia Other Countries
(f)
3,334,305 1,524,145 55,137 4,913,587
3,365,818 1,508,760 51,142 4,925,720
Financing and advances analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Purchase of securities Working capital Purchase of property – residential property Personal use Purchase of land Purchase of vehicles Others Purchase of shop-house Purchase of industrial buildings and factories Charge card Construction
11
1,524,145 1,124,499 1,178,050 777,069 144,232 85,830 36,507 39,793 1,396 2,066 4,913,587
1,508,760 1,211,892 1,107,268 838,482 86,391 76,662 49,931 39,899 2,250 1,969 2,216 4,925,720
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (g)
Financing and advances analysed by sectors are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Household Telecommunication Manufacturing Wholesale & Retail trade Finance intermediation Construction Real estate, renting and business activities Transportation Electricity, gas and water supply Agriculture, hunting and related service activities Fishing, Operation of Fish Hatcheries, Fish Farms and Services Activities Incidental to Fishing Other business Forestry, logging and related services activities
12
2,070,611 1,524,145 351,158 329,820 140,522 224,357 134,732 57,787 74,036 3,654
2,049,075 1,508,760 304,304 389,611 285,975 148,776 113,147 64,346 52,842 4,153
1,396 1,182 187 4,913,587
2,251 2,233 247 4,925,720
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (g)
Movements in impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 At 1 January Impaired during the financial period / year Reclassified as non impaired Recoveries Write-off
Ratio of net impaired financing and advances to gross financing and advances less individual impairment allowances
101,374 99,954 (33,535) (61,955) (15,717) 90,121
106,236 106,131 (19,641) (61,624) (29,728) 101,374
0.95%
1.17%
Included in amount classified as impaired during the financial period is profit accrued on impaired financing of RM 70,184,000 (2013: RM63,737,000). (h)
Movements in the allowances for impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Collective assessment allowance At 1 January Allowance made during the period / year (Note 17(b)) Amount written off Closing balance As % of total gross financing and advances less individual impairment allowances Individual assessment allowance At 1 January Allowance made during the financial period / year (Note 17(a)) Amount recovered during the financial period / year (Note 17(a)) Amount written off Closing balance
13
96,781
121,000
15,820 (13,841) 98,760
2,040 (26,259) 96,781
2.03%
1.98%
44,041
29,386
3,907
22,638
(1,695) (2,210) 44,043
(4,282) (3,701) 44,041
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (i) Impaired financing analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Malaysia
90,121 90,121
101,374 101,374
(j) Impaired financing analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Working capital Purchase of properties - residential Personal use Purchase of shop-house Charge card Purchase of transport vehicles
41,702 22,633 23,922 845 196 823 90,121
48,560 33,357 18,472 484 329 172 101,374
(k) Impaired financing analysed by sector are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Household Manufacturing Wholesale & retail trade Other business Real estate, renting and business activities Construction
14
48,418 36,223 5,256 89 135 90,121
52,814 42,578 5,611 227 89 55 101,374
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13.
DEPOSITS FROM CUSTOMERS (a)
By type of deposit Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Savings deposits Qard Mudarabah
51,701 129,498
41,860 127,525
Demand deposits Qard Mudarabah
283,727 535,114
370,500 407,186
Term deposit Commodity Murabahah
2,373,312
1,983,257
General investment account Mudarabah Wakalah
56,737 2,068,488
72,255 1,398,182
501 5,499,078
931 4,401,696
Other deposits
(b) By type of customer Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Business enterprises Government and statutory bodies Individuals Others
1,634,250 1,391,403 292,342 2,181,083 5,499,078
1,523,153 705,992 283,948 1,888,603 4,401,696
(c) By maturity structure Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Due within three months More than three months to one year More than one year to five years
3,986,609 1,512,463 6 5,499,078 15
3,182,922 1,218,644 130 4,401,696
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 14.
DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Unaudited 30 Audited September 31 December 2014 2013 RM’000 RM’000 Non-Mudharabah Funds Licensed Islamic banks Licensed Financial Institutions
15.
457,817 58,895 516,712
517,608 1,063,844 1,581,452
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Income derived from investment of: (i) General investment 698 882 deposits (ii) Other deposits 82,964 73,353 83,662 74,235
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 2,014
2,909
236,974 238,988
220,556 223,465
(i) Income derived from investment of general investment deposits rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Finance income and hibah Financing and advances Money at call and deposit with financial institutions Total finance income and hibah
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
683
840
1,974
2,743
15 698
42 882
40 2,014
166 2,909
16
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 15.
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS (CONTINUED) (ii) Income derived from investment of other deposits rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Finance income and hibah Financing and advances Securities held-to-maturity Securities available-for-sale Money at call and deposit with financial institutions Accretion of discount
16.
67,540 14,034 -
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
63,421 6,232
195,264 37,829
191,009 10,569
314
-
3,859
1,257 133
2,697 689
3,384 497
9,699 5,420
82,964
73,353
236,974
220,556
INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Finance income and hibah Money at call and deposit with financial institutions Other operating income - Gain from foreign exchange translations - Realised gain on gold - Rental Income - Unrealised gain / (loss) on revaluation of securities held-fortrading - Others Other income - Service charges - Commission received
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
223
517
601
1,837
1,979 358 937
2,301 696 1,746
6,248 1,735 2,959
6,049 2,910 5,237
(158)
90
3
(104)
84
113
271
188
1,468 2,340 7,231
1,938 1,779 9,180
5,051 5,729 22,597
5,882 6,448 28,447
17
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 17.
ALLOWANCE FOR IMPAIRMENT ON FINANCING rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Allowance for impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - written back (b) Collective assessment allowance - (write-back) / provided during the financial quarter (c) Bad debts on financing - recovered - written off
18.
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
734
17,917
3,907
20,471
(965)
(541)
(1,695)
(2,439)
6,748
(12,969)
15,820
(4,947)
(1,711) 334 5,140
(1,065) 3,342
(4,152) 354 14,234
(2,725) 10,360
INCOME ATTRIBUTABLE TO DEPOSITORS rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Deposits from customers - Mudharabah - Non-Mudharabah - Wakalah Deposits and placements of banks and other financial institutions - Non-Mudharabah
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
2,161 24,245 14,412
1,232 34,596 -
5,931 78,504 31,451
3,529 103,775 -
4,693 45,511
2,827 38,655
12,448 128,334
7,839 115,143
18
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 19.
SUBSEQUENT EVENTS There were no material events subsequent to the end of the reporting date that require disclosure or adjustments to the unaudited interim financial statements.
20.
CHANGES IN THE COMPOSITION OF THE GROUP There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2013.
21.
COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group made various commitments and incurred certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. The commitments and contingencies and the related risk-weighted exposures of the Group as are as follows:
Group and Bank Direct credit substitute Transaction-related contingent items Trade-related contingencies Irrevocable commitments to extend credit: - Maturity not exceeding one year - Maturity exceeding one year Foreign exchangerelated contracts Miscellaneous
Principal amount RM’000
Unaudited 30 September 2014 Credit Risk equivalent weighted amount amount RM’000 RM’000
Principal amount RM’000
Audited 31 December 2013 Credit Risk equivalent weighted amount amount RM’000 RM’000
-
-
-
-
-
-
273,837
136,919
107,557
177,217
88,609
70,632
31,857
6,371
6,221
12,618
2,524
2,469
927,216
185,443
184,038
842,957
168,591
167,513
906,228
449,606
419,212
906,999
449,893
410,136
30,910 83,669 2,253,717
1,672 780,011
1,672 718,700
7,575 74,006 2,021,372
1,305 710,922
1,305 652,055
19
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 22. FINANCIAL RISK MANAGEMENT Market Risk - Profit Rate Risk The Group is exposed to various risks associated with the effects of fluctuations in the prevailing levels of yield/profit rate on its financial position. The rate of return risk is the potential impact of market factors affecting rates on returns in comparison with the expected rates of return for investment account holders. Yield/profit rate is monitored and managed by the ALCO to protect the income of its operations. The assets and liabilities at carrying amount are categorised by the earlier of the next contractual repricing dates and maturity dates as follows: Non-trading book
Group and Bank Unaudited 30 September 2014
Up to 1 month RM’000
>1-3 months RM’000
>3-12 months RM’000
1 to 5 years RM’000
54,668 -
-
-
7,537
Non>5 profit years sensitive RM’000 RM’000
Trading book RM’000
Effective profit Total rate RM’000 %
Assets Cash and short term funds Hedging financial instruments Securities held-for-trading Securities available-for-sale Securities held-to-maturity Financing and advances - Unimpaired (1) - Impaired (2) Other assets Total assets Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Total liabilities Shareholders’ fund Total liabilities and shareholders’ fund On-balance sheet profit sensitivity gap Off-balance sheet profit sensitivity gap Total profit sensitivity gap
1,498,963 1,553,631
152,426 1,682,471 152,426 1,682,471
1,399,549
569,619 880,759 577,156 2,280,308
55,083 4,819
109,751 1,455 1,455 4,896 4,896 - 1,411,906
39,229 (52,682) 504,195 550,645
- 4,823,466 (52,682) 504,195 6,350 6,802,987
0.53 3.98 5.47
1,712,077 1,868,339 1,549,651
6
-
369,005
-
5,499,078
3.00
396,402 118,509 2,108,479 1,986,848 1,549,651
6
-
1,801 11,588 56,769 439,164
812 812
516,712 812 11,588 56,769 6,084,960
3.40 -
-
718,027
-
718,027
1,157,190
812
6,802,987
2,108,479
-
-
-
1,986,848 1,549,651
6
(554,848) (1,834,422)
132,820
577,150
(554,848) (1,834,422)
132,820
577,150
-
-
2,280,308 (606,545)
5,538
2,253,717 2,280,308 1,647,172
5,538
Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
20
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 22. FINANCIAL RISK MANAGEMENT (continued) Market Risk - Profit Rate Risk (continued) Non-trading book Bank Audited 31 December 2013
Up to 1 month
>1-3 months
RM’000
RM’000
349,133 -
-
>3-12 months RM’000
1 to 5 > 5 years years
Nonprofit sensitive
Trading book RM’000
Effective profit rate RM’000 % Total
RM’000
RM’000
RM’000
21,583
-
999,284
106,254 15,036
455,387 1,788 1,788 4,792 4,792 - 1,035,903
2.50 3.67
1,287,477
267,096 1,936,035
359,982
944,289
267,096 1,957,618
359,982 1,943,573
- 4,824,346 (39,448) 471,868 6,580 6,754,636
5.49 -
1,636,610
29,467 (39,448) 471,868 584,034
Assets Cash and short term funds Hedging financial instruments Securities held-for-trading Securities Available-for-sale Securities held-to-maturity Financing and advances - performing (1) - non performing (2) Other assets Total assets Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Total liabilities Shareholders’ fund Total liabilities and shareholders’ fund On-balance sheet profit sensitivity gap Off-balance sheet profit sensitivity gap Total profit sensitivity gap
1,666,302 1,160,761 1,211,609
130
-
362,894
-
4,401,696
2.45
366,378 830,000 370,344 2,032,680 1,990,761 1,581,130
130
-
14,730 12,541 42,408 432,573
610 610
1,581,452 610 12,541 42,408 6,038,707
3.36 -
715,929
-
715,929
1,148,502
610
6,754,636
-
-
-
-
2,032,680
1,990,761 1,581,130
130
(396,070)
(1,723,665) 375,665
359,852 1,943,573
(396,070)
(1,723,665) 375,665
- 2,021,372 359,852 1,943,573 1,456,047
-
(565,325)
5,970 5,970
Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
21
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY a) The capital adequacy ratios of the Group and the Bank below are disclosed pursuant to the requirements of Bank Negara Malaysia's Risk Weighted Capital Adequacy Framework (Basel II) Disclosure Requirements (Pillar 3): Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 CET 1/Tier-1 capital Paid-up share capital Accumulated losses
1,000,000 (284,071) 715,929 (77,845) 638,084
1,000,000 (284,071) 715,929 (77,845) 638,084
65,244 65,244
68,133 68,133
Capital base
703,328
706,217
CET 1 / Core capital ratio Risk-weighted capital ratio
13.28% 14.64%
13.04% 14.43%
Less: Deferred tax Total Tier-1 capital Tier-2 capital Collective assessment allowance Total Tier-2 capital
b) The breakdown of risk-weighted assets by each major risk category is as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Credit risk Market risk Operational risk
4,342,344 118,543 342,209 4,803,096
22
4,396,758 138,684 359,027 4,894,469
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Unaudited 30 September 2014 Gross Exposures RM’000
Net Exposures RM’000
Risk Weighted Assets RM’000
Capital Requirements RM’000
Gross Exposures RM’000
Net Exposures RM’000
Risk Weighted Assets RM’000
Capital Requirements RM’000
1,641,832 71,273 2,792,437 890,374 1,142,676 47,306 14,932 6,600,830
1,641,832 71,273 2,779,361 888,143 1,142,676 47,306 14,797 6,585,388
14,255 2,337,848 666,107 580,436 7,537 17,461 3,623,644
1,140 187,028 53,289 46,435 603 1,397 289,892
1,242,904 378,611 2,816,768 948,869 1,060,302 63,895 31,040 6,542,389
1,242,904 378,611 2,800,371 945,983 1,060,302 63,895 30,969 6,523,035
75,722 2,341,549 709,487 562,755 21,583 33,607 3,744,703
6,058 187,324 56,759 45,020 1,727 2,689 299,577
780,011
780,011
718,702
57,496
710,922
710,922
652,055
52,165
780,011
780,011
718,702
57,496
710,922
710,922
652,055
52,165
7,380,841
7,365,399
4,342,343
347,388
7,253,311
7,233,957
4,396,758
351,742
118,543 342,209 4,803,095
9,483 27,377 384,248
138,684 359,027 4,894,469
11,095 28,722 391,599
Group and Bank Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions & MDBs Corporate Regulatory Retail Residential Real Estate (RRE) Financing Other assets Defaulted Exposures Total for On-Balance Sheet Exposures Off-Balance Sheet Exposures Off-balance sheet exposures other than OTC derivatives or credit derivatives Total for Off-Balance Sheet Exposures Total On and Off-Balance Sheet Exposures
Audited 31 December 2013
Large Exposures Risk Requirement Market Risk Foreign Currency Risk Operational Risk Total RWA and Capital Requirements
23
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Unaudited 30 September 2104 Exposures after netting and Credit Risk Mitigation
Group and Bank Risk weights
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Banks, Development Financial Sovereigns/Central Banks Institutions & MDBs RM’000 RM’000
Corporate RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
Other Assets RM’000
Total Exposure RM’000
Total Risk Weighted Assets RM’000
1,641,832 1,641,832
87,846 87,846
90,715 2,667,254 3,437,284 6,195,253
1,794,947 1,794,947
436,932 949,067 426,220 88,544 1,900,763
39,769 15,074 54,843
1,681,601 148,801 323,653 632,711 2,793,383 1,770,451 7,350,600
29,760 113,279 316,356 2,095,037 1,770,451 4,324,883
-
-
(75) 2,685 2,610
2,095 2,095
19,136 8,415 27,551
-
(50) 9,568 5,278 14,796
(25) 9,568 7,917 17,460
1,641,832
87,846
6,197,863
1,797,042
1,928,314
54,843
7,365,396
4,342,343
24
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Audited 31 December 2013 Exposures after netting and Credit Risk Mitigation
Group and Bank Risk weights
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Banks, Development Financial Sovereigns/Central Banks Institutions & MDBs RM’000 RM’000
Corporates RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
Other Assets RM’000
Total Exposure RM’000
Total Risk Weighted Assets RM’000
1,242,904 1.242,904
381,675 381,675
114,750 1,508,760 1.628,738 3,282,572
1.031,846 1,031,846
293,350 529,050 309,173 68,523 1,200,096
43,312 21,583 63,895
1,285,216 411,999 293,350 643,800 2,849,779 1,718,844 7,202,988
82,400 102,678 321,900 2,137,334 1,718,844 4,363,151
-
-
5,900 1,992 7,892
731 731
13,894 8,452 22,346
-
5,900 13,894 11,175 30,969
2,950 13,894 16,763 33,607
1.242,904
381,675
3,290,464
1,032,577
1,222,442
63,895
7,233,957
4,396,758
25
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued)
Group and Bank
Unaudited 30 September 2014 Principal Risk-weighted RM’000 RM’000
0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
1,681,601 148,801 323,653 632,661 2,793,383 1,780,019 5,278 7,365,396
Group and Bank
29,760 113,279 316,331 2,095,037 1,780,019 7,917 4,342,343 118,543 342,209 4,803,095
Audited 31 December 2013 Principal RM’000
0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
1,285,216 411,999 293,350 649,700 2,849,779 1,732,738 11,175 7,233,957
26
Riskweighted RM’000 82,400 105,623 321,900 2,137,334 1,732,738 16,763 4,396,748 138,684 359,027 4,894,469
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Disclosure on Off Balance Sheet and Counterparty Credit Risk Unaudited Audited 30 September 2014 31 December 2013 Group and Bank
Direct credit substitutes Transaction-related contingent items Short term self liquidating trade related contingencies Foreign exchange related contracts - One year or less Credit derivative contracts - One year or less Other commitments, such as formal standby facilities and credit lines, with an original maturity of over one year Other commitments, such as formal standby facilities and credit lines, with an original maturity up to one year Unutilised credit card lines
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
107,557 6,221
177,217 12,618
88,609 2,524
70,632 2,469
-
-
7,575
-
-
83,669
1,672
1,672
74,006
1,305
1,305
894,535
449,606
419,212
894,978
449,893
410,136
927,216 11,693 2,253,717
183,105 2,339 780,011
182,284 1,754 718,700
842,957 12,021 2,021,372
166,187 2,404 710,922
165,710 1,803 652,055
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
273,837 31,857
136,919 6,371
30,910
27
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 24.
SEGMENTAL INFORMATION Unaudited 30 September 2014
Group and Bank
Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation
Retail Banking RM’000
Treasury & Money Market RM’000
Corporate Investment Banking RM’000
RM’000
135,728
102,811
23,046
261,585
81,936
11,855
25,222
119,013 (116,964) 2,049
Zakat and taxation
2,049
Net profit for the financial period Other comprehensive income - Wakalah transfer to reserve Total comprehensive income for the financial period
Other information Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Other segment items Capital expenditure Unallocated capital expenditure
Depreciation Unallocated depreciation
Other non-cash (income)/expenses
Total
49 2,098
2,031,598
308,788
2,779,068
5,119,454 1,683,533 6,802,987
3,125,767
2,890,024
-
6,015,791 69,169 6,084,960
1,680
62
190
1,932 7,109 9,041
5,570
174
729
6,473 8,931 15,405
16,409
-
(2,175)
14,234
28
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 24.
SEGMENTAL INFORMATION (Continued) Audited 31 December 2013
Group and Bank
Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation
Retail Banking RM’000
Treasury & Money Market RM’000
Corporate Investment Banking RM’000
RM’000
149,781
47,826
139,822
337,429
120,448
31,024
15,142
166,614 (160,861) 5,753
Zakat and taxation
(2,606)
Net loss for the financial year Other comprehensive income: - Securities available-for-sale - Wakalah transfer to reserve Total comprehensive income for the financial year
Other information Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Other segment items Capital expenditure Unallocated capital expenditure
Depreciation Unallocated depreciation
Other non-cash (income)/expenses
Total
3,147 (26) (2) 3,119
2,118,934
681,467
2,708,362
5,508,763 1,318,948 6,827,711
2,418,439
3,638,394
-
6,056,833 54,949 6,111,782
3,858
43
-
3,901 5,019 8,920
8,371
211
1,003
9,585 10,630 20,215
(8,465)
-
24,262
15,797
29
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
25.
Review of performance for the financial quarter ended 30 September 2014 against the corresponding financial quarter of the preceding year For the financial period ended 30 September 2014, the Group and the Bank recorded a net profit of RM2.10 million as compared to net profit of RM3.45 million in the preceding year’s corresponding period.
26.
Prospects for 2014 2014 has been a challenging year for the banking sector with the Bank undergoing business transformation and currently in midst of planning the strategic realignment for the next three years. Nevertheless, the Bank is geared to face all challenges and is drawing up a road-map to strengthen its presence.
30
INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2014
Registered Office
Ground Floor, East Block Wisma Selangor Dredging 142-B Jalan Ampang 50450 Kuala Lumpur
1
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2014
Note
Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000
ASSETS Cash and short-term funds Hedging on financial instruments Securities held-for-trading Securities held-to-maturity Financing and advances Other assets Statutory deposits with Bank Negara Malaysia Investment properties Property and equipment Intangible assets Deferred tax assets Total Assets
109,751 1,455 4,896 1,411,906 4,770,784 36,593 237,464 105,000 15,499 31,794 77,845 6,802,987
455,387 1,788 4,792 1,035,903 4,784,898 41,099 194,268 105,000 18,453 35,203 77,845 6,754,636
5,499,078 516,712 812 11,588 56,770 6,084,960
4,401,696 1,581,452 610 12,541 42,408 6,038,707
Shareholder’s equity Share capital Reserves Total Shareholder’s Equity
1,000,000 (281,973) 718,027
1,000,000 (284,071) 715,929
Total Liabilities and Shareholder’s Equity
6,802,987
6,754,636
2,253,717
2,021,372
9 10 11 12
LIABILITIES AND SHAREHOLDER’S EQUITY Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging on financial instruments Bills and acceptances payable Other liabilities Total Liabilities
13 14 9
COMMITMENTS AND CONTINGENCIES
21
CAPITAL ADEQUACY Core capital ratio Risk-weighted capital ratio
23 13.28% 14.64%
13.04% 14.43%
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013
2
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME rd FOR THE 3 QUARTER ENDED 30 SEPTEMBER 2014 rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 Note RM’000 RM’000 Revenue
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
90,893
83,415
261,585
251,912
Income derived from investment of depositors’ funds and others
15
83,662
74,235
238,988
223,465
Income derived from investment of shareholders’ funds
16
7,231
9,180
22,597
28,447
Allowance for impairment on financing
17
(5,140)
(3,342)
(14,234)
(10,360)
(1)
(22)
(4)
(34)
85,752
80,051
247,347
241,518
(45,511)
(38,655)
(128,334)
(115,143)
40,241
41,396
119,013
126,375
Personnel expenses
(19,075)
(17,140)
(56,889)
(54,573)
Other overheads and expenditures
(20,025)
(22,894)
(60,075)
(68,348)
1,141
1,362
2,049
3,454
Other expenses directly attributable to the investment of the depositors’ funds Total distributable income Income attributable to depositors Total net income
Profit before zakat and taxation
18
Zakat
-
-
-
-
Taxation
-
-
-
-
Net profit for the period Other comprehensive income: - Securities available-for-sale - Transfer to Wakalah reserve Total comprehensive income / (loss) for the period
1,141
1,362
2,049
3,454
74
(26) (12)
49
(26) 14
1,215
1,324
2,098
3,442
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013.
3
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENT OF CHANGES IN EQUITY rd FOR THE 3 QUARTER ENDED 30 SEPTEMBER 2014
Non-distributable Group and Bank Share Capital
Statutory Available-for-sale Accumulated Reserve reserve losses
Total
At 1 January 2014 Total comprehensive income for the financial period
1,000,000
1,574
-
(285,645)
715,929
-
-
-
2,098
2,098
At 30 September 2014
1,000,000
1,574
-
(283,547)
718,027
At 1 January 2013 Total comprehensive income for the financial period
1,000,000
-
26
(287,216)
712,810
-
-
(26)
3,468
3,442
At 30 September 2013
1,000,000
-
-
(283,748)
716,252
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013.
4
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENT OF CASH FLOWS rd FOR THE 3 QUARTER ENDED 30 SEPTEMBER 2014 Group and Bank 30 September 30 September 2014 2013 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before zakat and tax
2,049
3,454
7,074 8,331 18,032 354 (4,152) 1,281
8,772 6,437 13,085 (2,725) 2,244
(104) 32,865
104 31,371
332 (120) 4,507 (43,196)
46,427 (365,049) 402,604 (44,296)
1,097,382 (1,065,819) (953) 14,411 39,409
(224,930) 356,065 (149,063) (12,285) 40,844
Purchase of property and equipment Purchase of intangible asset Securities available-for-sale Securities held-to-maturity Net cash used in investing activities
(4,120) (4,922) (376,003) (385,045)
(2,185) (1,998) 233,822 (998,570) (768,931)
NET DECREASE / INCREASE IN CASH AND CASH EQUIVALENTS
(345,636)
(728,087)
CASH AND CASH EQUIVALENTS - As at the beginning of the period
455,387
1,458,642
- AS AT END OF THE PERIOD
109,751
730,555
Adjustments for: Depreciation of property and equipment Amortisation of intangible assets Allowance for impairment on financing Bad debt on financing – Written-off Bad debt on financing – Recovered Unrealised loss / (gain) from foreign exchange translations Unrealised loss / (gain) on revaluation of securities held-for-trading/ investment properties
(Increase) / decrease in Operating Assets Deposits and placements with banks and other financial institutions Financing and advances Other assets Statutory deposits with Bank Negara Malaysia Increase / (decrease) in Operating Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Bills and acceptances payable Other liabilities Net cash generated in operating activities CASH FLOWS FROM INVESTING ACTIVITIES
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2013.
5
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 1.
BASIS OF PREPARATION The unaudited condensed interim financial statements have been prepared in accordance with the applicable requirements of MFRS 134: Interim Financial Reporting in Malaysia issued by Malaysian Accounting Standards Board (MASB), Financial Reporting for Islamic Banking Institution policy issued by Bank Negara Malaysia (BNM), the provisions of the Companies Act, 1965 and Shariah requirements. The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements for the year ended 31 December 2013. The explanatory notes attached to the consolidated condensed interim financial statements provide an explanation of events and transactions that are significant to an understanding of the changes in the financial position and performance of the Group since the year ended 31 December 2013.
2.
ACCOUNTING POLICIES The significant accounting policies and methods of computation applied in the unaudited condensed interim financial statements are consistent with those adopted in the most recent audited financial statements for the year ended 31 December 2013, unless otherwise stated. The following MFRS, IC Interpretation and Amendments to MFRSs have been adopted by the Group during the current period: Effective for annual periods commencing on or after 1 January 2014 Amendments to MFRS 132: Financial Instruments Presentation Amendments to MFRS 10, MFRS 12 and MFS 127: Investment Entities Amendments to MFRS 136: Recoverable Amount Disclosures for Non-Financial Asstes Amendments to MFRS 139: Novation of Derivatives and Continuation of Hedge Accounting IC interpretation 21: Levies The adoption of MFRSs above do not have any financial impact on the Group and the Bank as they mainly help to clarify the requirements of or provide further explanations to existing MFRSs. The following MFRSs and IC Interpretations have been issued by the MASB and are not yet effective: Effective for the financial period beginning on or after 1 July 2014: Amendments to MFRS 119: Defined Benefits Plans: Employee Contributions Annual improvements to MFRSs 2010 - 2012 cycle Annual improvements to MFRSs 2011 - 2013 cycle The effective dates of the following standards have been deferred to a date to be announced by the Malaysian Accounting Standards Board ("MASB"): MFRS 9 Financial Instruments (IFRS 9 issued by IASB in November 2009) MFRS 9 Financial Instruments (IFRS 9 issued by IASB in October 2010) MFRS 9 Financial Instruments: Hedge Accounting and amendments to MFRS 9, MFRS 7 and MFRS 139
6
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 3.
AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2013 was not qualified.
4.
COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS The operations of the Group and the Bank were not materially affected by any seasonal or cyclical factors rd in the 3 quarter ended 30 September 2014.
5.
UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE There were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group rd and the Bank in the 3 quarter ended 30 September 2014.
6.
CHANGES IN ESTIMATE There were no changes in estimates of amounts reported in prior financial years that have a material rd effect in the 3 quarter ended 30 September 2014.
7.
DEBT AND EQUITY SECURITIES There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in rd the 3 quarter ended 30 September 2014.
8.
DIVIDENDS PAID rd
There were no dividends paid during the 3 quarter and nine months ended 30 September 2014.
7
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 9.
HEDGING FINANCIAL INSTRUMENTS Fair Value Group and Bank
10.
Notional Amount RM’000
Assets RM’000
Liabilities RM’000
Unaudited 30 September 2014 Foreign currency forward contracts
84,207
1,455
812
Audited 31 December 2013 Foreign currency forward contracts
74,790
1,788
610
SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 At fair value Quoted securities: Unit Trust
11.
4,896
4,792
SECURITIES HELD-TO-MATURITY Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,368 7,538 1,411,906
8
1,014,320 21,583 1,035,903
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (a)
Financing and advances analysed by types and Shariah contracts are as follows:
Group and Bank Bai’ Bithaman Ajil RM’000
At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
2,753,000 1,165,854 777,069 89,975 85,830 39,793 4,911,521
Unaudited 30 September 2014 Total net financing and Qard advances RM’000 RM’000 2,066 2,066
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
2,753,000 1,165,854 777,069 89,975 85,830 39,793 2,066 4,913,587 (98,760) (44,043) 4,770,784
Bai’ Bithaman Ajil
Group and Bank
RM’000 At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
2,769,288 1,094,437 838,482 107,416 76,662 37,279 4,923,504
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Audited 31 December 2013 Total net Qard financing and advances RM’000 RM’000 2,216 2,216
2,769,228 1,094,437 838,482 107,416 76,662 37,279 2,216 4,925,720 (96,781) (44,041) 4,784,898
9
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (b)
Financing and advances analysed by type of customers are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
(c)
71,160 1,151,895 2,036,224 1,654,308 4,913,587
264,049 1,004,978 2,016,064 1,640,629 4,925,720
Financing and advances analysed by profit rate sensitivity are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Fixed rate: Corporate financing Personal financing SME financing Home financing Vehicle financing Charge card Shop-house financing Variable rate: Home financing Shop-house financing Corporate financing
10
1,228,855 777,069 89,975 18,921 85,830 2,066 1,068
1,260,468 838,482 107,416 22,382 76,662 2,216 1,167
1,146,933 38,725 1,524,145 4,913,587
1,072,055 36,112 1,508,760 4,925,720
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (d)
Financing and advances analysed by maturity structure are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Due within three months More than three months to one year More than one year to five years More than five years
(e)
541,028 173,466 2,112,572 2,086,521 4,913,587
531,779 430,626 1,886,315 2,077,000 4,925,720
Financing and advances analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Malaysia Saudi Arabia Other Countries
(f)
3,334,305 1,524,145 55,137 4,913,587
3,365,818 1,508,760 51,142 4,925,720
Financing and advances analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Purchase of securities Working capital Purchase of property – residential property Personal use Purchase of land Purchase of vehicles Others Purchase of shop-house Purchase of industrial buildings and factories Charge card Construction
11
1,524,145 1,124,499 1,178,050 777,069 144,232 85,830 36,507 39,793 1,396 2,066 4,913,587
1,508,760 1,211,892 1,107,268 838,482 86,391 76,662 49,931 39,899 2,250 1,969 2,216 4,925,720
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (g)
Financing and advances analysed by sectors are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Household Telecommunication Manufacturing Wholesale & Retail trade Finance intermediation Construction Real estate, renting and business activities Transportation Electricity, gas and water supply Agriculture, hunting and related service activities Fishing, Operation of Fish Hatcheries, Fish Farms and Services Activities Incidental to Fishing Other business Forestry, logging and related services activities
12
2,070,611 1,524,145 351,158 329,820 140,522 224,357 134,732 57,787 74,036 3,654
2,049,075 1,508,760 304,304 389,611 285,975 148,776 113,147 64,346 52,842 4,153
1,396 1,182 187 4,913,587
2,251 2,233 247 4,925,720
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (g)
Movements in impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 At 1 January Impaired during the financial period / year Reclassified as non impaired Recoveries Write-off
Ratio of net impaired financing and advances to gross financing and advances less individual impairment allowances
101,374 99,954 (33,535) (61,955) (15,717) 90,121
106,236 106,131 (19,641) (61,624) (29,728) 101,374
0.95%
1.17%
Included in amount classified as impaired during the financial period is profit accrued on impaired financing of RM 70,184,000 (2013: RM63,737,000). (h)
Movements in the allowances for impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Collective assessment allowance At 1 January Allowance made during the period / year (Note 17(b)) Amount written off Closing balance As % of total gross financing and advances less individual impairment allowances Individual assessment allowance At 1 January Allowance made during the financial period / year (Note 17(a)) Amount recovered during the financial period / year (Note 17(a)) Amount written off Closing balance
13
96,781
121,000
15,820 (13,841) 98,760
2,040 (26,259) 96,781
2.03%
1.98%
44,041
29,386
3,907
22,638
(1,695) (2,210) 44,043
(4,282) (3,701) 44,041
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 12.
FINANCING AND ADVANCES (CONTINUED) (i) Impaired financing analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Malaysia
90,121 90,121
101,374 101,374
(j) Impaired financing analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Working capital Purchase of properties - residential Personal use Purchase of shop-house Charge card Purchase of transport vehicles
41,702 22,633 23,922 845 196 823 90,121
48,560 33,357 18,472 484 329 172 101,374
(k) Impaired financing analysed by sector are as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Household Manufacturing Wholesale & retail trade Other business Real estate, renting and business activities Construction
14
48,418 36,223 5,256 89 135 90,121
52,814 42,578 5,611 227 89 55 101,374
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13.
DEPOSITS FROM CUSTOMERS (a)
By type of deposit Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Savings deposits Qard Mudarabah
51,701 129,498
41,860 127,525
Demand deposits Qard Mudarabah
283,727 535,114
370,500 407,186
Term deposit Commodity Murabahah
2,373,312
1,983,257
General investment account Mudarabah Wakalah
56,737 2,068,488
72,255 1,398,182
501 5,499,078
931 4,401,696
Other deposits
(b) By type of customer Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Business enterprises Government and statutory bodies Individuals Others
1,634,250 1,391,403 292,342 2,181,083 5,499,078
1,523,153 705,992 283,948 1,888,603 4,401,696
(c) By maturity structure Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Due within three months More than three months to one year More than one year to five years
3,986,609 1,512,463 6 5,499,078 15
3,182,922 1,218,644 130 4,401,696
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 14.
DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Unaudited 30 Audited September 31 December 2014 2013 RM’000 RM’000 Non-Mudharabah Funds Licensed Islamic banks Licensed Financial Institutions
15.
457,817 58,895 516,712
517,608 1,063,844 1,581,452
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Income derived from investment of: (i) General investment 698 882 deposits (ii) Other deposits 82,964 73,353 83,662 74,235
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 2,014
2,909
236,974 238,988
220,556 223,465
(i) Income derived from investment of general investment deposits rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Finance income and hibah Financing and advances Money at call and deposit with financial institutions Total finance income and hibah
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
683
840
1,974
2,743
15 698
42 882
40 2,014
166 2,909
16
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 15.
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS (CONTINUED) (ii) Income derived from investment of other deposits rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Finance income and hibah Financing and advances Securities held-to-maturity Securities available-for-sale Money at call and deposit with financial institutions Accretion of discount
16.
67,540 14,034 -
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
63,421 6,232
195,264 37,829
191,009 10,569
314
-
3,859
1,257 133
2,697 689
3,384 497
9,699 5,420
82,964
73,353
236,974
220,556
INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Finance income and hibah Money at call and deposit with financial institutions Other operating income - Gain from foreign exchange translations - Realised gain on gold - Rental Income - Unrealised gain / (loss) on revaluation of securities held-fortrading - Others Other income - Service charges - Commission received
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
223
517
601
1,837
1,979 358 937
2,301 696 1,746
6,248 1,735 2,959
6,049 2,910 5,237
(158)
90
3
(104)
84
113
271
188
1,468 2,340 7,231
1,938 1,779 9,180
5,051 5,729 22,597
5,882 6,448 28,447
17
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 17.
ALLOWANCE FOR IMPAIRMENT ON FINANCING rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Allowance for impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - written back (b) Collective assessment allowance - (write-back) / provided during the financial quarter (c) Bad debts on financing - recovered - written off
18.
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
734
17,917
3,907
20,471
(965)
(541)
(1,695)
(2,439)
6,748
(12,969)
15,820
(4,947)
(1,711) 334 5,140
(1,065) 3,342
(4,152) 354 14,234
(2,725) 10,360
INCOME ATTRIBUTABLE TO DEPOSITORS rd
3 Quarter Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000 Deposits from customers - Mudharabah - Non-Mudharabah - Wakalah Deposits and placements of banks and other financial institutions - Non-Mudharabah
Nine Months Ended Group and Bank 30 September 30 September 2013 2014 RM’000 RM’000
2,161 24,245 14,412
1,232 34,596 -
5,931 78,504 31,451
3,529 103,775 -
4,693 45,511
2,827 38,655
12,448 128,334
7,839 115,143
18
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 19.
SUBSEQUENT EVENTS There were no material events subsequent to the end of the reporting date that require disclosure or adjustments to the unaudited interim financial statements.
20.
CHANGES IN THE COMPOSITION OF THE GROUP There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2013.
21.
COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group made various commitments and incurred certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. The commitments and contingencies and the related risk-weighted exposures of the Group as are as follows:
Group and Bank Direct credit substitute Transaction-related contingent items Trade-related contingencies Irrevocable commitments to extend credit: - Maturity not exceeding one year - Maturity exceeding one year Foreign exchangerelated contracts Miscellaneous
Principal amount RM’000
Unaudited 30 September 2014 Credit Risk equivalent weighted amount amount RM’000 RM’000
Principal amount RM’000
Audited 31 December 2013 Credit Risk equivalent weighted amount amount RM’000 RM’000
-
-
-
-
-
-
273,837
136,919
107,557
177,217
88,609
70,632
31,857
6,371
6,221
12,618
2,524
2,469
927,216
185,443
184,038
842,957
168,591
167,513
906,228
449,606
419,212
906,999
449,893
410,136
30,910 83,669 2,253,717
1,672 780,011
1,672 718,700
7,575 74,006 2,021,372
1,305 710,922
1,305 652,055
19
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X
EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 22. FINANCIAL RISK MANAGEMENT Market Risk - Profit Rate Risk The Group is exposed to various risks associated with the effects of fluctuations in the prevailing levels of yield/profit rate on its financial position. The rate of return risk is the potential impact of market factors affecting rates on returns in comparison with the expected rates of return for investment account holders. Yield/profit rate is monitored and managed by the ALCO to protect the income of its operations. The assets and liabilities at carrying amount are categorised by the earlier of the next contractual repricing dates and maturity dates as follows: Non-trading book
Group and Bank Unaudited 30 September 2014
Up to 1 month RM’000
>1-3 months RM’000
>3-12 months RM’000
1 to 5 years RM’000
54,668 -
-
-
7,537
Non>5 profit years sensitive RM’000 RM’000
Trading book RM’000
Effective profit Total rate RM’000 %
Assets Cash and short term funds Hedging financial instruments Securities held-for-trading Securities available-for-sale Securities held-to-maturity Financing and advances - Unimpaired (1) - Impaired (2) Other assets Total assets Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Total liabilities Shareholders’ fund Total liabilities and shareholders’ fund On-balance sheet profit sensitivity gap Off-balance sheet profit sensitivity gap Total profit sensitivity gap
1,498,963 1,553,631
152,426 1,682,471 152,426 1,682,471
1,399,549
569,619 880,759 577,156 2,280,308
55,083 4,819
109,751 1,455 1,455 4,896 4,896 - 1,411,906
39,229 (52,682) 504,195 550,645
- 4,823,466 (52,682) 504,195 6,350 6,802,987
0.53 3.98 5.47
1,712,077 1,868,339 1,549,651
6
-
369,005
-
5,499,078
3.00
396,402 118,509 2,108,479 1,986,848 1,549,651
6
-
1,801 11,588 56,769 439,164
812 812
516,712 812 11,588 56,769 6,084,960
3.40 -
-
718,027
-
718,027
1,157,190
812
6,802,987
2,108,479
-
-
-
1,986,848 1,549,651
6
(554,848) (1,834,422)
132,820
577,150
(554,848) (1,834,422)
132,820
577,150
-
-
2,280,308 (606,545)
5,538
2,253,717 2,280,308 1,647,172
5,538
Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
20
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 22. FINANCIAL RISK MANAGEMENT (continued) Market Risk - Profit Rate Risk (continued) Non-trading book Bank Audited 31 December 2013
Up to 1 month
>1-3 months
RM’000
RM’000
349,133 -
-
>3-12 months RM’000
1 to 5 > 5 years years
Nonprofit sensitive
Trading book RM’000
Effective profit rate RM’000 % Total
RM’000
RM’000
RM’000
21,583
-
999,284
106,254 15,036
455,387 1,788 1,788 4,792 4,792 - 1,035,903
2.50 3.67
1,287,477
267,096 1,936,035
359,982
944,289
267,096 1,957,618
359,982 1,943,573
- 4,824,346 (39,448) 471,868 6,580 6,754,636
5.49 -
1,636,610
29,467 (39,448) 471,868 584,034
Assets Cash and short term funds Hedging financial instruments Securities held-for-trading Securities Available-for-sale Securities held-to-maturity Financing and advances - performing (1) - non performing (2) Other assets Total assets Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Total liabilities Shareholders’ fund Total liabilities and shareholders’ fund On-balance sheet profit sensitivity gap Off-balance sheet profit sensitivity gap Total profit sensitivity gap
1,666,302 1,160,761 1,211,609
130
-
362,894
-
4,401,696
2.45
366,378 830,000 370,344 2,032,680 1,990,761 1,581,130
130
-
14,730 12,541 42,408 432,573
610 610
1,581,452 610 12,541 42,408 6,038,707
3.36 -
715,929
-
715,929
1,148,502
610
6,754,636
-
-
-
-
2,032,680
1,990,761 1,581,130
130
(396,070)
(1,723,665) 375,665
359,852 1,943,573
(396,070)
(1,723,665) 375,665
- 2,021,372 359,852 1,943,573 1,456,047
-
(565,325)
5,970 5,970
Note: (1) This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing. (2) Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.
21
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY a) The capital adequacy ratios of the Group and the Bank below are disclosed pursuant to the requirements of Bank Negara Malaysia's Risk Weighted Capital Adequacy Framework (Basel II) Disclosure Requirements (Pillar 3): Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 CET 1/Tier-1 capital Paid-up share capital Accumulated losses
1,000,000 (284,071) 715,929 (77,845) 638,084
1,000,000 (284,071) 715,929 (77,845) 638,084
65,244 65,244
68,133 68,133
Capital base
703,328
706,217
CET 1 / Core capital ratio Risk-weighted capital ratio
13.28% 14.64%
13.04% 14.43%
Less: Deferred tax Total Tier-1 capital Tier-2 capital Collective assessment allowance Total Tier-2 capital
b) The breakdown of risk-weighted assets by each major risk category is as follows: Group and Bank Unaudited Audited 30 September 31 December 2014 2013 RM’000 RM’000 Credit risk Market risk Operational risk
4,342,344 118,543 342,209 4,803,096
22
4,396,758 138,684 359,027 4,894,469
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Unaudited 30 September 2014 Gross Exposures RM’000
Net Exposures RM’000
Risk Weighted Assets RM’000
Capital Requirements RM’000
Gross Exposures RM’000
Net Exposures RM’000
Risk Weighted Assets RM’000
Capital Requirements RM’000
1,641,832 71,273 2,792,437 890,374 1,142,676 47,306 14,932 6,600,830
1,641,832 71,273 2,779,361 888,143 1,142,676 47,306 14,797 6,585,388
14,255 2,337,848 666,107 580,436 7,537 17,461 3,623,644
1,140 187,028 53,289 46,435 603 1,397 289,892
1,242,904 378,611 2,816,768 948,869 1,060,302 63,895 31,040 6,542,389
1,242,904 378,611 2,800,371 945,983 1,060,302 63,895 30,969 6,523,035
75,722 2,341,549 709,487 562,755 21,583 33,607 3,744,703
6,058 187,324 56,759 45,020 1,727 2,689 299,577
780,011
780,011
718,702
57,496
710,922
710,922
652,055
52,165
780,011
780,011
718,702
57,496
710,922
710,922
652,055
52,165
7,380,841
7,365,399
4,342,343
347,388
7,253,311
7,233,957
4,396,758
351,742
118,543 342,209 4,803,095
9,483 27,377 384,248
138,684 359,027 4,894,469
11,095 28,722 391,599
Group and Bank Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions & MDBs Corporate Regulatory Retail Residential Real Estate (RRE) Financing Other assets Defaulted Exposures Total for On-Balance Sheet Exposures Off-Balance Sheet Exposures Off-balance sheet exposures other than OTC derivatives or credit derivatives Total for Off-Balance Sheet Exposures Total On and Off-Balance Sheet Exposures
Audited 31 December 2013
Large Exposures Risk Requirement Market Risk Foreign Currency Risk Operational Risk Total RWA and Capital Requirements
23
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Unaudited 30 September 2104 Exposures after netting and Credit Risk Mitigation
Group and Bank Risk weights
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Banks, Development Financial Sovereigns/Central Banks Institutions & MDBs RM’000 RM’000
Corporate RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
Other Assets RM’000
Total Exposure RM’000
Total Risk Weighted Assets RM’000
1,641,832 1,641,832
87,846 87,846
90,715 2,667,254 3,437,284 6,195,253
1,794,947 1,794,947
436,932 949,067 426,220 88,544 1,900,763
39,769 15,074 54,843
1,681,601 148,801 323,653 632,711 2,793,383 1,770,451 7,350,600
29,760 113,279 316,356 2,095,037 1,770,451 4,324,883
-
-
(75) 2,685 2,610
2,095 2,095
19,136 8,415 27,551
-
(50) 9,568 5,278 14,796
(25) 9,568 7,917 17,460
1,641,832
87,846
6,197,863
1,797,042
1,928,314
54,843
7,365,396
4,342,343
24
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Audited 31 December 2013 Exposures after netting and Credit Risk Mitigation
Group and Bank Risk weights
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Banks, Development Financial Sovereigns/Central Banks Institutions & MDBs RM’000 RM’000
Corporates RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
Other Assets RM’000
Total Exposure RM’000
Total Risk Weighted Assets RM’000
1,242,904 1.242,904
381,675 381,675
114,750 1,508,760 1.628,738 3,282,572
1.031,846 1,031,846
293,350 529,050 309,173 68,523 1,200,096
43,312 21,583 63,895
1,285,216 411,999 293,350 643,800 2,849,779 1,718,844 7,202,988
82,400 102,678 321,900 2,137,334 1,718,844 4,363,151
-
-
5,900 1,992 7,892
731 731
13,894 8,452 22,346
-
5,900 13,894 11,175 30,969
2,950 13,894 16,763 33,607
1.242,904
381,675
3,290,464
1,032,577
1,222,442
63,895
7,233,957
4,396,758
25
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued)
Group and Bank
Unaudited 30 September 2014 Principal Risk-weighted RM’000 RM’000
0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
1,681,601 148,801 323,653 632,661 2,793,383 1,780,019 5,278 7,365,396
Group and Bank
29,760 113,279 316,331 2,095,037 1,780,019 7,917 4,342,343 118,543 342,209 4,803,095
Audited 31 December 2013 Principal RM’000
0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
1,285,216 411,999 293,350 649,700 2,849,779 1,732,738 11,175 7,233,957
26
Riskweighted RM’000 82,400 105,623 321,900 2,137,334 1,732,738 16,763 4,396,748 138,684 359,027 4,894,469
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23.
CAPITAL ADEQUACY (continued) Disclosure on Off Balance Sheet and Counterparty Credit Risk Unaudited Audited 30 September 2014 31 December 2013 Group and Bank
Direct credit substitutes Transaction-related contingent items Short term self liquidating trade related contingencies Foreign exchange related contracts - One year or less Credit derivative contracts - One year or less Other commitments, such as formal standby facilities and credit lines, with an original maturity of over one year Other commitments, such as formal standby facilities and credit lines, with an original maturity up to one year Unutilised credit card lines
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
107,557 6,221
177,217 12,618
88,609 2,524
70,632 2,469
-
-
7,575
-
-
83,669
1,672
1,672
74,006
1,305
1,305
894,535
449,606
419,212
894,978
449,893
410,136
927,216 11,693 2,253,717
183,105 2,339 780,011
182,284 1,754 718,700
842,957 12,021 2,021,372
166,187 2,404 710,922
165,710 1,803 652,055
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
273,837 31,857
136,919 6,371
30,910
27
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 24.
SEGMENTAL INFORMATION Unaudited 30 September 2014
Group and Bank
Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation
Retail Banking RM’000
Treasury & Money Market RM’000
Corporate Investment Banking RM’000
RM’000
135,728
102,811
23,046
261,585
81,936
11,855
25,222
119,013 (116,964) 2,049
Zakat and taxation
2,049
Net profit for the financial period Other comprehensive income - Wakalah transfer to reserve Total comprehensive income for the financial period
Other information Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Other segment items Capital expenditure Unallocated capital expenditure
Depreciation Unallocated depreciation
Other non-cash (income)/expenses
Total
49 2,098
2,031,598
308,788
2,779,068
5,119,454 1,683,533 6,802,987
3,125,767
2,890,024
-
6,015,791 69,169 6,084,960
1,680
62
190
1,932 7,109 9,041
5,570
174
729
6,473 8,931 15,405
16,409
-
(2,175)
14,234
28
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 24.
SEGMENTAL INFORMATION (Continued) Audited 31 December 2013
Group and Bank
Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation
Retail Banking RM’000
Treasury & Money Market RM’000
Corporate Investment Banking RM’000
RM’000
149,781
47,826
139,822
337,429
120,448
31,024
15,142
166,614 (160,861) 5,753
Zakat and taxation
(2,606)
Net loss for the financial year Other comprehensive income: - Securities available-for-sale - Wakalah transfer to reserve Total comprehensive income for the financial year
Other information Segment assets Unallocated corporate assets Total assets Segment liabilities Unallocated corporate liabilities Total liabilities Other segment items Capital expenditure Unallocated capital expenditure
Depreciation Unallocated depreciation
Other non-cash (income)/expenses
Total
3,147 (26) (2) 3,119
2,118,934
681,467
2,708,362
5,508,763 1,318,948 6,827,711
2,418,439
3,638,394
-
6,056,833 54,949 6,111,782
3,858
43
-
3,901 5,019 8,920
8,371
211
1,003
9,585 10,630 20,215
(8,465)
-
24,262
15,797
29
AL RAJHI BANKING & INVESTMENT CORPORATION (MALAYSIA) BHD (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
25.
Review of performance for the financial quarter ended 30 September 2014 against the corresponding financial quarter of the preceding year For the financial period ended 30 September 2014, the Group and the Bank recorded a net profit of RM2.10 million as compared to net profit of RM3.45 million in the preceding year’s corresponding period.
26.
Prospects for 2014 2014 has been a challenging year for the banking sector with the Bank undergoing business transformation and currently in midst of planning the strategic realignment for the next three years. Nevertheless, the Bank is geared to face all challenges and is drawing up a road-map to strengthen its presence.
30
