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 31 MARCH 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 31 MARCH 2014
Note
Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000
ASSETS Cash and short-term funds Deposits and placements with other institutions 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
360,394 16,348 406 4,792 1,419,465 4,655,620 36,362 197,464 105,000 18,667 32,520 77,845 6,924,883
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
4,598,094 1,564,037 462 13,589 31,226 6,207,408
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 (282,525) 717,475
1,000,000 (284,071) 715,929
Total Liabilities and Shareholder’s Equity
6,924,883
6,754,636
2,160,498
2,021,372
9 10 11 12 13
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
14 15 9
COMMITMENTS AND CONTINGENCIES
22
CAPITAL ADEQUACY Core capital ratio Risk-weighted capital ratio
24 13.29% 14.57%
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 st FOR THE 1 QUARTER ENDED 31 MARCH 2014 st
Note Revenue
1 Quarter Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
Three Months Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
82,317
84,602
82,317
84,602
Income derived from investment of depositors’ funds and others
16
74,753
74,865
74,753
74,865
Income derived from investment of shareholders’ funds
17
7,564
9,737
7,564
9,737
Allowance for impairment on financing
18
(2,375)
(4,381)
(2,375)
(4,381)
(2)
(10)
(2)
(10)
79,940
80,211
79,940
80,211
Total net income
(38,914) 41,026
(37,356) 42,855
(38,914) 41,026
(37,356) 42,855
Personnel expenses
(18,938)
(18,605)
(18,938)
(18,605)
Other overheads and expenditures
(20,529)
(22,188)
(20,529)
(22,188)
1,559
2,062
1,559
2,062
Other expenses directly attributable to the investment of the depositors’ funds Total distributable income Income attributable to depositors
Profit / (loss) before zakat and taxation
19
Zakat
-
-
-
-
Taxation
-
-
-
-
Net profit / (loss) for the period Other comprehensive income: - Transfer to Wakalah reserve Total comprehensive income / (loss) for the period
1,559
2,062
1,559
2,062
(13)
37
(13)
37
1,546
2,099
1,546
2,099
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 st FOR THE 1 QUARTER ENDED 31 MARCH 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 period
1,000,000
1,574
-
(285,645)
715,929
-
-
-
1,546
1,546
At 31 March 2014
1,000,000
1,574
-
(284,879)
717,475
At 1 January 2013 Total comprehensive income for the period
1,000,000
-
26
(287,216)
712,810
-
-
-
2,099
2,099
At 31 March 2013
1,000,000
-
26
(285,117)
714,909
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 st FOR THE 1 QUARTER ENDED 31 MARCH 2014 Group and Bank 31 March 31 March 2014 2013 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before zakat and tax
1,559
2,062
1,863 3,161 3,695 1,843 12,121
2,194 2,947 5,200 (802) 11,601
(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
(16,809) 125,583 4,737 (3,196)
15,572 (180,725) 155,175 (13,096)
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
196,398 (17,563) 1,048 (11,195) 291,124
552,164 68,259 (146,085) 5,701 468,566
(2,077) (477) (383,563) (386,117)
(1,866) (3,086) (300,000) (304,952)
NET DECREASE / INCREASE IN CASH AND CASH EQUIVALENTS
(94,993)
163,614
CASH AND CASH EQUIVALENTS - As at the beginning of the period
455,387
1,458,642
- AS AT END OF THE PERIOD
360,394
1,622,256
Adjustments for: Depreciation of property and equipment Amortisation of intangible assets Allowance for impairment on financing Unrealised loss / (gain) from foreign exchange translations
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Purchase of intangible asset Securities held-to-maturity Net cash used in 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 st in the 1 quarter ended 31 March 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 st and the Bank in the 1 quarter ended 31 March 2014.
6.
CHANGES IN ESTIMATE There were no changes in estimates of amounts reported in prior financial years that have a material st effect in the 1 quarter ended 31 March 2014.
7.
DEBT AND EQUITY SECURITIES There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in st the 1 quarter ended 31 March 2014.
8.
DIVIDENDS PAID st
There were no dividends paid during the 1 quarter and three months ended 31 March 2014. 9.
DEPOSITS AND PLACEMENTS WITH OTHER INSTITUTIONS Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 Licensed Islamic banks
16,348
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 10.
HEDGING FINANCIAL INSTRUMENTS Fair Value Group and Bank
11.
Notional Amount RM’000
Assets RM’000
Liabilities RM’000
Unaudited 31 March 2014 Foreign currency forward contracts
38,266
406
462
Audited 31 December 2013 Foreign currency forward contracts
74,790
1,788
610
SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 At fair value Quoted securities: Unit Trust
12.
4,792
4,792
SECURITIES HELD-TO-MATURITY Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,395 15,070 1,419,465
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 13.
FINANCING AND ADVANCES (a)
Financing and advances analysed by types and Shariah contracts are as follows:
Group and Bank At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
Bai’ Bithaman Ajil
Qard
RM’000
RM’000
Unaudited 31 March 2014 Total net financing and advances RM’000
2,639,975 1,127,386 811,720 99,396 80,753 38,247 4,797,477
2,087 2,087
2,639,975 1,127,386 811,720 99,396 80,753 38,247 2,087 4,799,564
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
(98,484) (45,460) 4,655,620
Group and Bank At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Bai’ Bithaman Ajil
Qard
RM’000
RM’000
Audited 31 Dec 2013 Total net financing and advances RM’000
2,769,288 1,094,437 838,482 107,416 76,662 37,279 4,923,504
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 13.
FINANCING AND ADVANCES (CONTINUED) (b)
Financing and advances analysed by type of customers are as follows: Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
(c)
101,205 1,006,155 2,023,802 1,668,402 4,799,564
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 Audited Unaudited 31 March 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
1,117,101 811,720 99,396 21,675 80,753 2,087 1,139
1,260,468 838,482 107,416 22,382 76,662 2,216 1,167
1,105,710 37,109 1,522,874 4,799,564
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 13.
FINANCING AND ADVANCES (CONTINUED) (d)
Financing and advances analysed by maturity structure are as follows: Group and Bank Unaudited Audited 31 March 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)
521,103 228,443 2,061,334 1,988,683 4,799,564
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 31 March 31 December 2014 2013 RM’000 RM’000 Malaysia Saudi Arabia Other Countries
(f)
3,215,447 1,522,874 61,243 4,799,564
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 31 March 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 Construction Charge card
11
1,522,874 1,067,107 1,140,024 811,720 85,775 80,753 47,038 40,062 2,124 2,087 4,799,564
1,508,760 1,211,892 1,107,268 838,482 86,391 76,662 49,931 39,899 2,250 2,216 1,969 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 13.
FINANCING AND ADVANCES (CONTINUED) (g)
Financing and advances analysed by sectors are as follows: Group and Bank Audited Unaudited 31 March 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
2,060,193 1,522,874 328,401 292,517 180,001 176,962 113,214 64,517 52,751 3,958
2,049,075 1,508,760 304,304 389,611 285,975 148,776 113,147 64,346 52,842 4,153
2,124 1,826 227 4,799,564
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 13.
FINANCING AND ADVANCES (CONTINUED) (g)
Movements in impaired financing and advances Group and Bank Audited Unaudited 31 March 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 30,613 (7,347) (14,066) (573) 110,001
106,236 106,131 (19,641) (61,624) (29,728) 101,374
1.36%
1.17%
Included in amount classified as impaired during the financial year is profit accrued on impaired financing of RM14,244,000 (2013: RM63,737,000). (h)
Movements in the allowances for impaired financing and advances Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Collective assessment allowance At 1 January Allowance made during the period / year (Note 18(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 18(a)) Amount recovered during the financial period / year (Note 18(a)) Amount written off Closing balance
13
96,781 1,703
121,000 2,040
98,484
(26,259) 96,781
2.07%
1.98%
44,041 1,992
29,386 22,638
-
(4,282)
(573) 45,460
(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 13.
FINANCING AND ADVANCES (CONTINUED) (i) Impaired financing analysed by geographical distribution are as follows: Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Malaysia
110,001 110,001
101,374 101,374
(j) Impaired financing analysed by economic purpose are as follows: Group and Bank Audited Unaudited 31 March 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
48,470 34,349 25,824 876 294 188 110,001
48,560 33,357 18,472 484 329 172 101,374
(k) Impaired financing analysed by sector are as follows: Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Household Manufacturing Wholesale & retail trade Other business Real estate, renting and business activities Construction
14
61,531 42,478 5,621 227 89 55 110,001
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 14.
DEPOSITS FROM CUSTOMERS (a)
By type of deposit Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 Savings deposits Qard Mudarabah
44,566 132,363
41,860 127,525
Demand deposits Qard Mudarabah
312,636 416,154
370,500 407,186
Term deposit Commodity Murabahah
2,590,406
1,983,257
General investment account Mudarabah Wakalah
70,835 1,030,383
72,255 1,398,182
751 4,598,094
931 4,401,696
Other deposits
(b) By type of customer Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Business enterprises Government and statutory bodies Individuals Others
1,187,085 719,744 296,947 2,394,318 4,598,094
1,596,838 705,992 283,948 1,888,603 4,475,381
(c) By maturity structure Group and Bank Audited Unaudited 31 March 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
3,475,848 1,122,191 55 4,598,094 15
3,256,607 1,218,644 130 4,475,381
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.
DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Non-Mudharabah Funds Licensed Islamic banks Licensed Financial Institutions
16.
531,235 1,032,802 1,564,037
517,608 1,063,844 1,581,452
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS st
1 Quarter Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000 Income derived from investment of: (i) General investment deposits (ii) Other deposits
876 73,877 74,753
1,085 73,780 74,865
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000 876 73,877 74,753
1,085 73,780 74,865
(i) Income derived from investment of general investment deposits st
1 Quarter Ended Group and Bank 31 March 31 March 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
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
856
1,023
856
1,023
20 876
62 1,085
20 876
62 1,085
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 16.
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS (CONTINUED) (ii) Income derived from investment of other deposits st
1 Quarter Ended Group and Bank 31 March 31 March 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
17.
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
62,520 9,911 -
64,357 2,150 1,760
62,520 9,911 -
64,357 2,150 1,760
1,246 200 73,877
3,323 2,190 73,780
1,246 200 73,877
3,323 2,190 73,780
INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS st
1 Quarter Ended Group and Bank 31 March 31 March 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 - Others Other income - Service charges - Commission received
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
233
623
233
623
2,333 906 1,084 94
1,945 480 1,746 37
2,333 906 1,084 94
1,945 480 1,746 37
1,947 967 7,564
1,810 3,096 9,737
1,947 967 7,564
1,810 3,096 9,737
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 18.
ALLOWANCE FOR IMPAIRMENT ON FINANCING st
1 Quarter Ended Group and Bank 31 March 31 March 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
19.
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
1,992 -
4 (1,616)
1,992 -
4 (1,616)
1,703
6,812
1,703
6,812
(1,320) 2,375
(819) 4,381
(1,320) 2,375
(819) 4,381
INCOME ATTRIBUTABLE TO DEPOSITORS st
1 Quarter Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000 Deposits from customers - Mudharabah - Non-Mudharabah Deposits and placements of banks and other financial institutions - Non-Mudharabah
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
1,869 33,778
1,053 32,824
1,869 33,778
1,053 32,824
3,267 38,914
3,479 37,356
3,267 38,914
3,479 37,356
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 20.
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.
21.
CHANGES IN THE COMPOSITION OF THE GROUP There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2013.
22.
COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group made various commitments and incurred certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. The commitments and contingencies and the related risk-weighted exposures of the Group as are as follows:
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 31 March 2014 Credit Risk equivalent weighted amount amount RM’000 RM’000
Principal amount RM’000
Audited 31 December 2013 Risk Credit equivalent weighted amount amount RM’000 RM’000
-
-
-
-
-
-
180,291
90,146
71,905
177,217
88,609
70,632
18,927
3,785
3,903
12,618
2,524
2,469
948,131
189,626
196,801
842,957
168,591
167,513
966,716
479,677
438,186
906,999
449,893
410,136
8,140 38,293 2,160,498
33 763,267
33 710,828
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 23.
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 31 March 2014
Up to 1 month RM’000
>1-3 >3-12 months months RM’000 RM’000
1 to 5 years RM’000
>5 years RM’000
Nonprofit sensitive RM’000
Trading book RM’000
Effective profit Total rate RM’000 %
Assets Cash and short term funds Hedging financial instruments Deposits and placements with banks and other financial institutions 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
282,983 -
-
-
-
-
77,411 -
406
360,394 406
2.41 -
-
16,328
-
-
-
20
-
16,348
0.9
-
-
15,070
-
5,136
4,792 4,792 - 1,419,465
3.96
43,476 (33,942) 467,858 559,959
- 4,689,562 (33,942) 467,858 5,198 6,924,883
1,477,233 1,760,216
99,423 1,734,147 115,750 1,749,217
1,399,259
516,311 818,972 516,311 2,218,232
1,612,210 1,491,914 1,113,300
56
-
780,488 770,000 2,382,210 2,272,402 1,113,330
56
-
-
-
2,382,210
-
-
2,272,402 1,113,330
56
-
380,584
5.49
-
4,598,094
2.90
13,549 13,589 31,225 438,947
462 462
1,564,037 462 13,589 31,225 6,207,407
3.37 -
717,475
-
717,475
1,156,422
462
6,924,882
(621,995) (2,156,652)
635,886
516,255
2,218,232 (596,463)
4,736
(621,995) (2,156,652)
635,886
516,255
2,160,498 2,218,232 1,564,035
4,736
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 24.
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) 472,520 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
370,344 830,000 366,378 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 25.
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 Audited Unaudited 31 March 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
61,607 61,607
68,133 68,133
Capital base
699,691
706,217
Core capital ratio Risk-weighted capital ratio
13.29% 14.57%
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 Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Credit risk Market risk Operational risk
4,320,913 127,841 351,952 4,800,706
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 25.
CAPITAL ADEQUACY (continued) Unaudited 31 March 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
1,601,859 339,815 2,678,936 920,148 1,092,284 54,879 30,085 6,718,006
1,601,859 339,815 2,665,149 917,646 1,092,284 54,879 30,014 6,701,646
67,963 2,260,163 688,235 554,699 15,070 32,636 3,618,765
5,437 180,813 55,059 44,376 1,206 2,611 289,501
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
763,267
763,267
702,148
56,172
710,922
710,922
652,055
52,165
763,267
763,267
702,148
56,172
710,922
710,922
652,055
52,165
7,481,273
7,464,913
4,320,913
345,673
7,253,311
7,233,957
4,396,758
351,742
127,841 351,952 4,800,706
10,227 28,156 384,057
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 25.
CAPITAL ADEQUACY (continued) Unaudited 31 March 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 Sovereigns/Central Financial 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
1,601,859 1,601,859
342,920 342,920
30,334 1,522,874 1,637,563 3,190,771
1,023,986 1,023,986
333,803 569,663 271,330 45,688 1,220,484
39,809 15,070 54,879
1,641,668 373,254 333,803 569,663 2,818,190 1,698,321 7,434,899
74,651 116,831 284,832 2,113,643 1,698,321 4,288,277
-
-
5,800 1,987 7,787
903 903
13,170 8,154 21,342
-
5,800 13,170 11,044 30,014
2,900 13,170 16,566 32,636
1,601,859
342,920
3,198,558
1,024,889
1,241,808
54,879
7,464,913
4,320,913
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 25.
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 Sovereigns/Central Financial 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 25.
CAPITAL ADEQUACY (continued)
Group and Bank
Unaudited 31 March 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
1,641,668 373,254 333,803 575,463 2,818,190 1,711,491 11,044 7,464,913
74,651 116,831 287,732 2,113,643 1,711,491 16,566 4,320,913 127,841 351,952 4,800,706
Audited 31 December 2013
Group and Bank
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 25.
CAPITAL ADEQUACY (continued) Disclosure on Off Balance Sheet and Counterparty Credit Risk Audited Unaudited 31 December 2013 31 March 2014 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
180,291 18,927
90,146 3,785
8,140
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
71,905 3,903
177,217 12,618
88,609 2,524
70,632 2,469
-
-
7,575
-
-
38,293
33
33
74,006
1,305
1,305
954,445
479,677
438,186
894,978
449,893
410,136
948,131 12,271 2,160,498
187,172 2,454 763,267
194,960 1,841 710,828
842,957 12,021 2,021,372
166,187 2,404 710,922
165,710 1,803 652,055
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 26.
SEGMENTAL INFORMATION Unaudited 31 March 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
41,266
34,267
6,784
82,317
24,801
5,269
10,958
41,027 (39,469) 1,559
Zakat and taxation
-
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
Total
1.559 (13) 1,546
2,019,624
534,714
2,675,891
5,230,229 1,694,654 6,924,883
2,007,689
4,154,443
-
6,162,132 45,276 6,207,408
146
42
32
220 2,334 2,554
Depreciation Unallocated depreciation
8,371
211
1,003
9,585 10,630 20,215
Other non-cash (income)/expenses
6,549
-
(4,174)
2,375
Segment liabilities Unallocated corporate liabilities Total liabilities Other segment items Capital expenditure Unallocated capital expenditure
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 26.
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
27.
Review of performance for the financial quarter ended 31 March 2014 against the corresponding financial quarter of the preceding year For the financial period ended 31 March 2014, the Group and the Bank recorded a net profit of RM1.56 million as compared to net profit of RM2.06 million in the preceding year’s corresponding period.
28.
Prospects for 2014 2014 will be a challenging year for the banking sector with greater competition in both retail and corporate sector and tighter regulatory environment. Nevertheless, the Bank is geared to face the challenges, drafting a more precise strategy to grow the business selectively targeting new market segments at the same time continue to strengthen its governance.
30
INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 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 31 MARCH 2014
Note
Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000
ASSETS Cash and short-term funds Deposits and placements with other institutions 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
360,394 16,348 406 4,792 1,419,465 4,655,620 36,362 197,464 105,000 18,667 32,520 77,845 6,924,883
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
4,598,094 1,564,037 462 13,589 31,226 6,207,408
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 (282,525) 717,475
1,000,000 (284,071) 715,929
Total Liabilities and Shareholder’s Equity
6,924,883
6,754,636
2,160,498
2,021,372
9 10 11 12 13
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
14 15 9
COMMITMENTS AND CONTINGENCIES
22
CAPITAL ADEQUACY Core capital ratio Risk-weighted capital ratio
24 13.29% 14.57%
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 st FOR THE 1 QUARTER ENDED 31 MARCH 2014 st
Note Revenue
1 Quarter Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
Three Months Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
82,317
84,602
82,317
84,602
Income derived from investment of depositors’ funds and others
16
74,753
74,865
74,753
74,865
Income derived from investment of shareholders’ funds
17
7,564
9,737
7,564
9,737
Allowance for impairment on financing
18
(2,375)
(4,381)
(2,375)
(4,381)
(2)
(10)
(2)
(10)
79,940
80,211
79,940
80,211
Total net income
(38,914) 41,026
(37,356) 42,855
(38,914) 41,026
(37,356) 42,855
Personnel expenses
(18,938)
(18,605)
(18,938)
(18,605)
Other overheads and expenditures
(20,529)
(22,188)
(20,529)
(22,188)
1,559
2,062
1,559
2,062
Other expenses directly attributable to the investment of the depositors’ funds Total distributable income Income attributable to depositors
Profit / (loss) before zakat and taxation
19
Zakat
-
-
-
-
Taxation
-
-
-
-
Net profit / (loss) for the period Other comprehensive income: - Transfer to Wakalah reserve Total comprehensive income / (loss) for the period
1,559
2,062
1,559
2,062
(13)
37
(13)
37
1,546
2,099
1,546
2,099
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 st FOR THE 1 QUARTER ENDED 31 MARCH 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 period
1,000,000
1,574
-
(285,645)
715,929
-
-
-
1,546
1,546
At 31 March 2014
1,000,000
1,574
-
(284,879)
717,475
At 1 January 2013 Total comprehensive income for the period
1,000,000
-
26
(287,216)
712,810
-
-
-
2,099
2,099
At 31 March 2013
1,000,000
-
26
(285,117)
714,909
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 st FOR THE 1 QUARTER ENDED 31 MARCH 2014 Group and Bank 31 March 31 March 2014 2013 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before zakat and tax
1,559
2,062
1,863 3,161 3,695 1,843 12,121
2,194 2,947 5,200 (802) 11,601
(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
(16,809) 125,583 4,737 (3,196)
15,572 (180,725) 155,175 (13,096)
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
196,398 (17,563) 1,048 (11,195) 291,124
552,164 68,259 (146,085) 5,701 468,566
(2,077) (477) (383,563) (386,117)
(1,866) (3,086) (300,000) (304,952)
NET DECREASE / INCREASE IN CASH AND CASH EQUIVALENTS
(94,993)
163,614
CASH AND CASH EQUIVALENTS - As at the beginning of the period
455,387
1,458,642
- AS AT END OF THE PERIOD
360,394
1,622,256
Adjustments for: Depreciation of property and equipment Amortisation of intangible assets Allowance for impairment on financing Unrealised loss / (gain) from foreign exchange translations
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Purchase of intangible asset Securities held-to-maturity Net cash used in 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 st in the 1 quarter ended 31 March 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 st and the Bank in the 1 quarter ended 31 March 2014.
6.
CHANGES IN ESTIMATE There were no changes in estimates of amounts reported in prior financial years that have a material st effect in the 1 quarter ended 31 March 2014.
7.
DEBT AND EQUITY SECURITIES There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in st the 1 quarter ended 31 March 2014.
8.
DIVIDENDS PAID st
There were no dividends paid during the 1 quarter and three months ended 31 March 2014. 9.
DEPOSITS AND PLACEMENTS WITH OTHER INSTITUTIONS Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 Licensed Islamic banks
16,348
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 10.
HEDGING FINANCIAL INSTRUMENTS Fair Value Group and Bank
11.
Notional Amount RM’000
Assets RM’000
Liabilities RM’000
Unaudited 31 March 2014 Foreign currency forward contracts
38,266
406
462
Audited 31 December 2013 Foreign currency forward contracts
74,790
1,788
610
SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 At fair value Quoted securities: Unit Trust
12.
4,792
4,792
SECURITIES HELD-TO-MATURITY Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,395 15,070 1,419,465
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 13.
FINANCING AND ADVANCES (a)
Financing and advances analysed by types and Shariah contracts are as follows:
Group and Bank At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
Bai’ Bithaman Ajil
Qard
RM’000
RM’000
Unaudited 31 March 2014 Total net financing and advances RM’000
2,639,975 1,127,386 811,720 99,396 80,753 38,247 4,797,477
2,087 2,087
2,639,975 1,127,386 811,720 99,396 80,753 38,247 2,087 4,799,564
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
(98,484) (45,460) 4,655,620
Group and Bank At amortised cost Term Financing: Corporate financing Home financing Personal financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Bai’ Bithaman Ajil
Qard
RM’000
RM’000
Audited 31 Dec 2013 Total net financing and advances RM’000
2,769,288 1,094,437 838,482 107,416 76,662 37,279 4,923,504
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 13.
FINANCING AND ADVANCES (CONTINUED) (b)
Financing and advances analysed by type of customers are as follows: Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
(c)
101,205 1,006,155 2,023,802 1,668,402 4,799,564
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 Audited Unaudited 31 March 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
1,117,101 811,720 99,396 21,675 80,753 2,087 1,139
1,260,468 838,482 107,416 22,382 76,662 2,216 1,167
1,105,710 37,109 1,522,874 4,799,564
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 13.
FINANCING AND ADVANCES (CONTINUED) (d)
Financing and advances analysed by maturity structure are as follows: Group and Bank Unaudited Audited 31 March 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)
521,103 228,443 2,061,334 1,988,683 4,799,564
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 31 March 31 December 2014 2013 RM’000 RM’000 Malaysia Saudi Arabia Other Countries
(f)
3,215,447 1,522,874 61,243 4,799,564
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 31 March 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 Construction Charge card
11
1,522,874 1,067,107 1,140,024 811,720 85,775 80,753 47,038 40,062 2,124 2,087 4,799,564
1,508,760 1,211,892 1,107,268 838,482 86,391 76,662 49,931 39,899 2,250 2,216 1,969 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 13.
FINANCING AND ADVANCES (CONTINUED) (g)
Financing and advances analysed by sectors are as follows: Group and Bank Audited Unaudited 31 March 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
2,060,193 1,522,874 328,401 292,517 180,001 176,962 113,214 64,517 52,751 3,958
2,049,075 1,508,760 304,304 389,611 285,975 148,776 113,147 64,346 52,842 4,153
2,124 1,826 227 4,799,564
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 13.
FINANCING AND ADVANCES (CONTINUED) (g)
Movements in impaired financing and advances Group and Bank Audited Unaudited 31 March 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 30,613 (7,347) (14,066) (573) 110,001
106,236 106,131 (19,641) (61,624) (29,728) 101,374
1.36%
1.17%
Included in amount classified as impaired during the financial year is profit accrued on impaired financing of RM14,244,000 (2013: RM63,737,000). (h)
Movements in the allowances for impaired financing and advances Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Collective assessment allowance At 1 January Allowance made during the period / year (Note 18(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 18(a)) Amount recovered during the financial period / year (Note 18(a)) Amount written off Closing balance
13
96,781 1,703
121,000 2,040
98,484
(26,259) 96,781
2.07%
1.98%
44,041 1,992
29,386 22,638
-
(4,282)
(573) 45,460
(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 13.
FINANCING AND ADVANCES (CONTINUED) (i) Impaired financing analysed by geographical distribution are as follows: Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Malaysia
110,001 110,001
101,374 101,374
(j) Impaired financing analysed by economic purpose are as follows: Group and Bank Audited Unaudited 31 March 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
48,470 34,349 25,824 876 294 188 110,001
48,560 33,357 18,472 484 329 172 101,374
(k) Impaired financing analysed by sector are as follows: Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Household Manufacturing Wholesale & retail trade Other business Real estate, renting and business activities Construction
14
61,531 42,478 5,621 227 89 55 110,001
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 14.
DEPOSITS FROM CUSTOMERS (a)
By type of deposit Group and Bank Unaudited Audited 31 March 31 December 2014 2013 RM’000 RM’000 Savings deposits Qard Mudarabah
44,566 132,363
41,860 127,525
Demand deposits Qard Mudarabah
312,636 416,154
370,500 407,186
Term deposit Commodity Murabahah
2,590,406
1,983,257
General investment account Mudarabah Wakalah
70,835 1,030,383
72,255 1,398,182
751 4,598,094
931 4,401,696
Other deposits
(b) By type of customer Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Business enterprises Government and statutory bodies Individuals Others
1,187,085 719,744 296,947 2,394,318 4,598,094
1,596,838 705,992 283,948 1,888,603 4,475,381
(c) By maturity structure Group and Bank Audited Unaudited 31 March 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
3,475,848 1,122,191 55 4,598,094 15
3,256,607 1,218,644 130 4,475,381
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.
DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Non-Mudharabah Funds Licensed Islamic banks Licensed Financial Institutions
16.
531,235 1,032,802 1,564,037
517,608 1,063,844 1,581,452
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS st
1 Quarter Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000 Income derived from investment of: (i) General investment deposits (ii) Other deposits
876 73,877 74,753
1,085 73,780 74,865
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000 876 73,877 74,753
1,085 73,780 74,865
(i) Income derived from investment of general investment deposits st
1 Quarter Ended Group and Bank 31 March 31 March 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
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
856
1,023
856
1,023
20 876
62 1,085
20 876
62 1,085
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 16.
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS (CONTINUED) (ii) Income derived from investment of other deposits st
1 Quarter Ended Group and Bank 31 March 31 March 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
17.
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
62,520 9,911 -
64,357 2,150 1,760
62,520 9,911 -
64,357 2,150 1,760
1,246 200 73,877
3,323 2,190 73,780
1,246 200 73,877
3,323 2,190 73,780
INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS st
1 Quarter Ended Group and Bank 31 March 31 March 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 - Others Other income - Service charges - Commission received
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
233
623
233
623
2,333 906 1,084 94
1,945 480 1,746 37
2,333 906 1,084 94
1,945 480 1,746 37
1,947 967 7,564
1,810 3,096 9,737
1,947 967 7,564
1,810 3,096 9,737
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 18.
ALLOWANCE FOR IMPAIRMENT ON FINANCING st
1 Quarter Ended Group and Bank 31 March 31 March 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
19.
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
1,992 -
4 (1,616)
1,992 -
4 (1,616)
1,703
6,812
1,703
6,812
(1,320) 2,375
(819) 4,381
(1,320) 2,375
(819) 4,381
INCOME ATTRIBUTABLE TO DEPOSITORS st
1 Quarter Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000 Deposits from customers - Mudharabah - Non-Mudharabah Deposits and placements of banks and other financial institutions - Non-Mudharabah
Period Ended Group and Bank 31 March 31 March 2013 2014 RM’000 RM’000
1,869 33,778
1,053 32,824
1,869 33,778
1,053 32,824
3,267 38,914
3,479 37,356
3,267 38,914
3,479 37,356
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 20.
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.
21.
CHANGES IN THE COMPOSITION OF THE GROUP There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2013.
22.
COMMITMENTS AND CONTINGENCIES In the normal course of business, the Group made various commitments and incurred certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. The commitments and contingencies and the related risk-weighted exposures of the Group as are as follows:
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 31 March 2014 Credit Risk equivalent weighted amount amount RM’000 RM’000
Principal amount RM’000
Audited 31 December 2013 Risk Credit equivalent weighted amount amount RM’000 RM’000
-
-
-
-
-
-
180,291
90,146
71,905
177,217
88,609
70,632
18,927
3,785
3,903
12,618
2,524
2,469
948,131
189,626
196,801
842,957
168,591
167,513
966,716
479,677
438,186
906,999
449,893
410,136
8,140 38,293 2,160,498
33 763,267
33 710,828
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 23.
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 31 March 2014
Up to 1 month RM’000
>1-3 >3-12 months months RM’000 RM’000
1 to 5 years RM’000
>5 years RM’000
Nonprofit sensitive RM’000
Trading book RM’000
Effective profit Total rate RM’000 %
Assets Cash and short term funds Hedging financial instruments Deposits and placements with banks and other financial institutions 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
282,983 -
-
-
-
-
77,411 -
406
360,394 406
2.41 -
-
16,328
-
-
-
20
-
16,348
0.9
-
-
15,070
-
5,136
4,792 4,792 - 1,419,465
3.96
43,476 (33,942) 467,858 559,959
- 4,689,562 (33,942) 467,858 5,198 6,924,883
1,477,233 1,760,216
99,423 1,734,147 115,750 1,749,217
1,399,259
516,311 818,972 516,311 2,218,232
1,612,210 1,491,914 1,113,300
56
-
780,488 770,000 2,382,210 2,272,402 1,113,330
56
-
-
-
2,382,210
-
-
2,272,402 1,113,330
56
-
380,584
5.49
-
4,598,094
2.90
13,549 13,589 31,225 438,947
462 462
1,564,037 462 13,589 31,225 6,207,407
3.37 -
717,475
-
717,475
1,156,422
462
6,924,882
(621,995) (2,156,652)
635,886
516,255
2,218,232 (596,463)
4,736
(621,995) (2,156,652)
635,886
516,255
2,160,498 2,218,232 1,564,035
4,736
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 24.
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) 472,520 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
370,344 830,000 366,378 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 25.
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 Audited Unaudited 31 March 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
61,607 61,607
68,133 68,133
Capital base
699,691
706,217
Core capital ratio Risk-weighted capital ratio
13.29% 14.57%
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 Audited Unaudited 31 March 31 December 2014 2013 RM’000 RM’000 Credit risk Market risk Operational risk
4,320,913 127,841 351,952 4,800,706
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 25.
CAPITAL ADEQUACY (continued) Unaudited 31 March 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
1,601,859 339,815 2,678,936 920,148 1,092,284 54,879 30,085 6,718,006
1,601,859 339,815 2,665,149 917,646 1,092,284 54,879 30,014 6,701,646
67,963 2,260,163 688,235 554,699 15,070 32,636 3,618,765
5,437 180,813 55,059 44,376 1,206 2,611 289,501
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
763,267
763,267
702,148
56,172
710,922
710,922
652,055
52,165
763,267
763,267
702,148
56,172
710,922
710,922
652,055
52,165
7,481,273
7,464,913
4,320,913
345,673
7,253,311
7,233,957
4,396,758
351,742
127,841 351,952 4,800,706
10,227 28,156 384,057
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 25.
CAPITAL ADEQUACY (continued) Unaudited 31 March 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 Sovereigns/Central Financial 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
1,601,859 1,601,859
342,920 342,920
30,334 1,522,874 1,637,563 3,190,771
1,023,986 1,023,986
333,803 569,663 271,330 45,688 1,220,484
39,809 15,070 54,879
1,641,668 373,254 333,803 569,663 2,818,190 1,698,321 7,434,899
74,651 116,831 284,832 2,113,643 1,698,321 4,288,277
-
-
5,800 1,987 7,787
903 903
13,170 8,154 21,342
-
5,800 13,170 11,044 30,014
2,900 13,170 16,566 32,636
1,601,859
342,920
3,198,558
1,024,889
1,241,808
54,879
7,464,913
4,320,913
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 25.
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 Sovereigns/Central Financial 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 25.
CAPITAL ADEQUACY (continued)
Group and Bank
Unaudited 31 March 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
1,641,668 373,254 333,803 575,463 2,818,190 1,711,491 11,044 7,464,913
74,651 116,831 287,732 2,113,643 1,711,491 16,566 4,320,913 127,841 351,952 4,800,706
Audited 31 December 2013
Group and Bank
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 25.
CAPITAL ADEQUACY (continued) Disclosure on Off Balance Sheet and Counterparty Credit Risk Audited Unaudited 31 December 2013 31 March 2014 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
180,291 18,927
90,146 3,785
8,140
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
71,905 3,903
177,217 12,618
88,609 2,524
70,632 2,469
-
-
7,575
-
-
38,293
33
33
74,006
1,305
1,305
954,445
479,677
438,186
894,978
449,893
410,136
948,131 12,271 2,160,498
187,172 2,454 763,267
194,960 1,841 710,828
842,957 12,021 2,021,372
166,187 2,404 710,922
165,710 1,803 652,055
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 26.
SEGMENTAL INFORMATION Unaudited 31 March 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
41,266
34,267
6,784
82,317
24,801
5,269
10,958
41,027 (39,469) 1,559
Zakat and taxation
-
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
Total
1.559 (13) 1,546
2,019,624
534,714
2,675,891
5,230,229 1,694,654 6,924,883
2,007,689
4,154,443
-
6,162,132 45,276 6,207,408
146
42
32
220 2,334 2,554
Depreciation Unallocated depreciation
8,371
211
1,003
9,585 10,630 20,215
Other non-cash (income)/expenses
6,549
-
(4,174)
2,375
Segment liabilities Unallocated corporate liabilities Total liabilities Other segment items Capital expenditure Unallocated capital expenditure
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 26.
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
27.
Review of performance for the financial quarter ended 31 March 2014 against the corresponding financial quarter of the preceding year For the financial period ended 31 March 2014, the Group and the Bank recorded a net profit of RM1.56 million as compared to net profit of RM2.06 million in the preceding year’s corresponding period.
28.
Prospects for 2014 2014 will be a challenging year for the banking sector with greater competition in both retail and corporate sector and tighter regulatory environment. Nevertheless, the Bank is geared to face the challenges, drafting a more precise strategy to grow the business selectively targeting new market segments at the same time continue to strengthen its governance.
30
