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 2015
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 2015
Note
Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
114,103 294,468 2,792 5,397 1,454,438 5,088,168 35,564 230,064 105,000 13,097 28,119 72,645 7,443,855
358,672 233,115 1,630 5,099 1,426,084 4,774,809 32,758 216,364 105,000 13,051 31,706 72,645 7,270,933
5,091,568 1,246,727 24,155 54,937 293,002 6,710,389
5,477,854 777,289 685 12,551 48,940 232,883 6,550,202
Shareholder’s equity Share capital Reserves Total Shareholder’s Equity
1,000,000 (266,534) 733,466
1,000,000 (279,269) 720,731
Total Liabilities and Shareholder’s Equity
7,443,855
7,270,933
1,451,554
1,732,323
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 Subordinated Sukuk Total Liabilities
13 14 9
COMMITMENTS AND CONTINGENCIES
21
CAPITAL ADEQUACY Core capital ratio Risk-weighted capital ratio
23 14.427% 22.063%
13.832% 20.167%
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 2014
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 2015 rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 RM’000 Note RM’000 Revenue
Nine Months Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000
95,620
90,893
281,899
261,585
Income derived from investment of depositors’ funds and others
15
86,629
83,662
255,782
238,988
Income derived from investment of shareholders’ funds
16
8,991
7,231
26,117
22,597
Allowance for impairment on financing
17
2,381
(5,140)
(3,605)
(14,234)
-
(1)
(13)
(4)
98,001
85,752
278,281
247,347
(49,924)
(45,437)
(149,024)
(128,334)
48,077
40,315
129,257
119,013
(18,349) (20,655)
(19,075) (20,025)
(53,678) (62,844)
(56,889) (60,075)
9,073
1,215
12,735
2,049
Other expenses directly attributable to the investment of the depositors’ funds Total distributable income Income attributable to depositors Total net income Personnel expenses Other overheads and expenditures Profit before zakat and taxation
18
Zakat
-
-
-
-
Taxation
-
-
-
-
Net profit for the financial period
9,073
1,215
12,735
2,049
-
-
-
49
9,073
1,215
12,735
2,098
Other comprehensive income: Items that was reclassified to profit or loss in subsequent periods: - Transfer to Wakalah reserve Total comprehensive income for the financial period
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 2014.
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 2015
Non-distributable Group and Bank Share Capital
Statutory Available-for-sale Accumulated reserve Reserve losses
Total
At 1 January 2015 Total comprehensive income for the financial period
1,000,000
3,975
-
(283,244)
720,731
-
-
-
12,735
12,735
At 30 September 2015
1,000,000
3,975
-
(270,509)
733,466
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
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 2014.
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 2015 Group and Bank 30 September 30 September 2015 2014 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before zakat and tax
12,735
2,049
4,755 9,331 9,229 144 (5,769) 1,246
7,074 8,331 18,032 354 (4,152) 1,281
31,671
(104) 32,865
(Increase) / decrease in Operating Assets Deposits and placements with banks and other financial institutions Hedging financial instruments Financing and advances Other assets Statutory deposits with Bank Negara Malaysia
(62,599) (1,467) (316,963) (2,806) (13,700)
332 (120) 4,507 (43,196)
Increase / (decrease) in Operating Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptances payable Other liabilities Net cash (used in) / generated from operating activities
(386,286) 528,872 11,604 6,002 (205,570)
1,097,382 (1,065,819) (953) 14,411 39,409
(4,801) (5,744) (28,354) (38,899)
(4,120) (4,922) (376,003) (385,045)
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 Operating cash flow before workings capital charges
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Purchase of intangible asset Securities available-for-sale 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 2014.
5
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 2015 Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 CASH FLOWS FROM FINANCING ACTIVITIES Issuance of Subordinated Sukuk Net cash generated from financing activities
-
-
(244,569)
(345,636)
Cash and cash Equivalents as at 1 January
358,672
455,387
CASH AND SHORT-TERM FUNDS AS AT 30 SEPTEMBER 2015
114,103
109,751
NET DECREASE IN CASH AND SHORT-TERM FUNDS
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 2014.
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 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 2014. 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 2014.
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 2014, except for the adoption of the following: Amendments to MFRS 119: Defined Benefits Plans: Employee Contributions Annual improvements to MFRSs 2010 - 2012 cycle Amendments to MFRS contained in the documents entitled “Annual Improvements 2011-2013 cycle” Amendments to MFRS 3: Business Combination Amendments to MFRS 8: Operating Segments Amendments to MFRS 13: Fair Value Measurement Amendments to MFRS 116: Property, Plant and Equipment Amendments to MFRS 124: Related party disclosures MFRS 138: Intangible Asset The adoption of MFRSs above do not have any financial impact on the Group and the Bank as they mainly help to clarify the requirements of or provide further explanations to existing MFRSs. The following MFRSs and IC Interpretations have been issued by the MASB and are not yet effective: Effective for the financial period beginning on or after 1 January 2016: MFRS 11: Accounting for acquisitions in Joint Operations Amendments to MFRS 127: Equity Method in Separate Financial Statements Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to MFRSs contained in the document entitled “Annual Improvements to MFRSs 2012–2014 Cycle” MFRS 14: Regulatory Deferral Accounts Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation and Amortisation Amendments to MFRS 116 and MFRS 141: Agriculture: Bearer Plants Effective for the financial period beginning on or after 1 January 2017: MFRS 15: Revenue from Contracts with Customers
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 2.
ACCOUNTING POLICIES (CONTINUED) Effective for the financial period beginning on or after 1 January 2018: MFRS 9: Financial Instruments (IFRS 9 Financial Instruments as issued by IASB in July 2014)
3.
AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2014 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 2015.
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 and the Bank in 3rd Quarter Ended 30 September 2015.
6.
CHANGES IN ESTIMATE There were no changes in estimates of amounts reported in prior financial years that have a material effect in the 3rd Quarter Ended 30 September 2015.
7.
DEBT AND EQUITY SECURITIES There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in the 3rd Quarter Ended 30 September 2015.
8.
DIVIDENDS PAID rd
There were no dividends paid during the 3 quarter and nine months ended 30 September 2015.
8
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 2015 Foreign currency forward contracts
25,021
2,792
-
Audited 31 December 2014 Foreign currency forward contracts
38,398
1,630
685
SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 30 September 31 December 2015 2014 RM’000 RM’000 At fair value Quoted securities: Unit Trust
11.
5,397
5,099
SECURITIES HELD-TO-MATURITY Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,319 50,119 1,454,438
9
1,418,459 7,625 1,426,084
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
3,131,325 1,177,362 688,911 70,673 79,838 40,483 5,190,312
Unaudited 30 September 2015 Total net financing and Qard advances RM’000 RM’000 1,720 1,721
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
3,131,325 1,177,362 688,911 70,673 79,838 40,483 1,720 5,190,312 (76,225) (25,919) 5,088,168
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
2,762,340 749,463 1,179,749 86,297 86,142 38,443 4,902,434
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Audited 31 December 2014 Total net Qard financing and advances RM’000 RM’000 2,086 2,086
2,762,340 749,463 1,179,749 86,297 86,142 38,443 2,086 4,904,520 (86,569) (43,124) 4,774,809
10
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 2015 2014 RM’000 RM’000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
(c)
34,669 1,472,208 1,960,003 1,723,432 5,190,312
163,384 1,148,660 2,022,625 1,569,851 4,904,520
Financing and advances analysed by profit rate sensitivity are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
11
1,606,354 688,911 70,673 16,089 79,838 1,720 983
1,253,219 749,463 86,297 18,402 86,142 2,086 1,074
1,161,273 39,500 1,524,971 5,190,312
1,161,347 37,369 1,509,121 4,904,520
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 2015 2014 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)
926,192 233,140 2,217,805 1,813,175 5,190,312
471,687 351,243 2,082,619 1,998,971 4,904,520
Financing and advances analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2015 2014 RM’000 RM’000 Malaysia Saudi Arabia Other Countries
(f)
3,640,585 1,524,971 24,756 5,190,312
3,367,791 1,509,121 27,608 4,904,520
Financing and advances analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2015 2014 RM’000 RM’000 Purchase of securities Working capital Purchase of property – residential property Personal use Purchase of commercial complex Purchase of vehicles Others Purchase of shop-house Construction Charge card Purchase of industrial buildings and factories
12
1,606,296 1,395,303 1,188,112 688,911 129,010 79,838 35,738 48,504 15,529 1,720 1,351 5,190,312
1,571,317 1,087,655 1,191,375 749,463 131,256 86,142 39,437 38,443 5,962 2,086 1,384 4,905,520
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 Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Household Telecommunication Wholesale & Retail trade Manufacturing 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 Other business Forestry, logging and related services activities
13
1,996,335 1,524,971 342,701 379,631 386,585 279,077 190,251 53,889 31,886 2,925 1,352 602 107 5,190,312
2,055,803 1,508,979 263,184 316,478 203,516 303,623 130,586 54,596 34,893 3,484 1,384 827 167 4,904,520
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) (h)
Movements in impaired financing and advances Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
75,098 95,092 (22,296) (42,815) (36,795) 68,284
101,374 121,621 (39,002) (79,119) (29,776) 75,098
0.82%
0.66%
Included in amount classified as impaired during the financial period is profit accrued on impaired financing of RM48,355,578 (2014: RM101,350,235). (i)
Movements in the allowances for impaired financing and advances Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
14
86,569 (4,408)
96,781 16,135
(5,936) 76,225
(26,347) 86,569
1.48%
1.78%
43,142
44,041
14,085
3,247
(449) (30,859) 25,919
(717) (3,429) 43,142
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) (j) Impaired financing analysed by geographical distribution are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Malaysia
68,284 68,284
75,098 75,098
(k) Impaired financing analysed by economic purpose are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Working capital Purchase of properties - residential Personal use Purchase of transport vehicles Purchase of shophouse Charge card
43,744 12,469 9,830 845 226 1,170 68,284
41,553 17,945 14,086 476 820 218 75,098
(l) Impaired financing analysed by sector are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Household Manufacturing Wholesale & retail trade Construction Real estate, renting and business activities
15
31,448 31,913 4,869 54 68,284
33,545 36,223 5,205 54 71 75,098
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 2015 2014 RM’000 RM’000 Savings deposits Qard Mudarabah
385,079 -
52,150 127,400
Demand deposits Qard Mudarabah
2,070,239 144,733
456,456 473,975
Term deposit Commodity Murabahah
2,057,596
2,449,228
28,463 404,411
53,922 1,864,015
1,047 5,091,568
708 5,477,854
General investment account Mudarabah Wakalah Other deposits
(b) By type of customer Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Business enterprises Government and statutory bodies Individuals Others
2,049,519 732,563 300,003 2,009,483 5,091,568
1,573,634 1,280,875 293,589 2,329,756 5,477,854
(c) By maturity structure Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Due within three months More than three months to one year More than one year to five years
3,362,158 1,727,505 1,905 5,091,568 16
4,100,609 1,377,245 5,477,854
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 Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Non-Mudharabah Funds Licensed Islamic banks Licensed Financial Institutions
15.
442,081 804,646 1,246,727
446,169 331,120 777,289
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 Income derived from investment of: (i) General investment 401 698 deposits (ii) Other deposits 86,228 82,964 86,629 83,662
Nine Months Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 1,305
2,014
254,477 255,782
236,974 238,988
(i) Income derived from investment of general investment deposits rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 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 2014 2015 RM’000 RM’000
396
683
1,290
1,974
5 401
15 698
15 1,305
40 2,014
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 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 2014 2015 RM’000 RM’000
16.
Nine Months Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000
Finance income and hibah Financing and advances Securities held-to-maturity
70,581 14,789
67,540 14,034
209,015 43,197
195,264 37,829
Money at call and deposit with financial institutions Accretion of discount
857 1
1,257 133
2,208 57
3,384 497
86,228
82,964
254,477
236,974
INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 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 2014 2015 RM’000 RM’000
168
223
393
601
2,960 658 1,000
1,979 358 937
6,970 1,601 4,001
6,248 1,735 2,959
(746) 101
(158) 84
(602) 419
3 271
1,631 3,219 8,991
1,468 2,340 7,231
5,380 7,955 26,117
5,051 5,729 22,597
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 17.
ALLOWANCE FOR IMPAIRMENT ON FINANCING rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 Allowance for impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - provided / 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 2014 2015 RM’000 RM’000
13,800
734
14,085
3,907
64
(965)
(449)
(1,695)
(14,397)
6,748
(4,408)
15,820
(1,947) 99 (2,381)
(1,711) 334 5,140
(5,769) 144 3,605
(4,152) 354 14,234
INCOME ATTRIBUTABLE TO DEPOSITORS rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 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 2014 2015 RM’000 RM’000
840 26,821 7,164
2,161 24,245 14,412
4,873 77,142 40,710
5,931 78,504 31,451
15,099 49,924
4,619 45,437
26,299 149,024
12,399 128,285
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 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 2014.
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 2015 Credit Risk equivalent weighted amount amount RM’000 RM’000
Principal amount RM’000
Audited 31 December 2014 Credit Risk equivalent weighted amount amount RM’000 RM’000
-
-
-
-
-
-
374,527
187,264
146,512
271,985
135,993
111,340
40,176
8,035
7,621
28,481
5,696
5,112
683,346
136,669
136,632
891,517
178,303
178,025
325,682
159,591
141,016
906,999
449,893
410,136
2,839 24,984 1,451,554
2,888 494,447
2,888 434,669
20,974 37,605 1,732,323
495 557,930
495 507,271
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 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 2015
1 to 5 > 5 years years RM’000 RM’000
Non- profit sensitive Trading book RM’000 RM’000
Effective profit rate Total
Up to 1 month RM’000
>1-3 months RM’000
>3-12 months RM’000
59,191 -
-
-
-
-
117,200 -
175,802 -
-
1,448,570
253,692 370,892
230,763 406,565
2,186,498 2,186,498
641,139 2,089,709
1,190,830 1,262,971
1,708,164
1,904
-
927,699
-
5,091,568
3.49
580,000 176,892 1,770,830 1,439,863
483,805 2,191,969
1,904
293,002 293,002
6,029 24,155 54,937 1,012,820
-
1,246,727 24,155 54,937 293,002 6,710,389
3.79 -
733,466
-
733,466
293,002
1,746,286
-
7,443,855
RM’000
%
114,103 2,792
0.63 -
1,466 5,868
294,468 5,397 5,397 - 1,454,438
0.85 3.98
40,257 (33,860) 484,489 553,132
- 5,122,028 (33,860) 484,489 8,189 7,443,855
5.50
Assets Cash and short term funds Hedging financial instruments Deposits and placements with banks and other FI Securities held-for-trading 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 FI Hedging financial instruments Bills and acceptance payable Other liabilities Subordinated Sukuk 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
1,769,679 1,828,870
1,770,830
1,439,863
2,191,969
1,904
-
-
54,912 -
2,792
58,040 (1,068,971) (1,785,404)
2,184,594
1,796,707
(1,193,152)
8,189
58,040 (1,068,972) (1,785,405)
2,184,594
1,796,707
1,451,554 258,402
8,189
-
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 22. FINANCIAL RISK MANAGEMENT (continued) Market Risk - Profit Rate Risk (continued) Non-trading book Bank Audited 31 December 2014
Up to 1 month
>1-3 months
RM’000
RM’000
305,305 -
-
-
130,410 7,626
>3-12 months RM’000
1 to 5 > 5 years years
Nonprofit sensitive
Trading book
Effective profit rate RM’000 % Total
RM’000
RM’000
RM’000
RM’000
-
-
-
53,367 -
1,630
358,672 1,630
1.09 -
102,466 -
-
1,399,198
239 19,260
233,115 5,099 5,099 - 1,426,084
1.10 3.98
559,291 785,067 559,291 2,184,265
23,210 (54,613) 471,524 512,987
- 4,829,422 (54,613) 471,524 6,729 7,270,933
5.50 -
Assets Cash and short term funds Hedging financial instruments Deposits and placements with banks and other FI Securities held-for-trading 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 FI Hedging financial instruments Bills and acceptance payable Other liabilities Subordinated Sukuk 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
1,405,403 1,710,708
199,766 1,856,685 337,802 1,959,151
1,995,249 1,576,157
1,364,25
-
-
542,194
-
5,477,854
2.90
380,000 365,000 30,000 2,375,249 1,941,157 1,394,254
-
232,883 232,883
2,289 12,551 48,940 605,974
685 685
777,289 685 12,551 48,940 232,83 6,550,202
3.89 -
720,731
-
720,731
1,326,705
685
7,270,933
-
-
-
-
2,375,249
1,941,157 1,394,254
-
(664,541)
(1,603,355) 564,897
559,291 1,951,382
(813,718)
6,044
(664,541)
(1,603,355) 564,897
1,732,323 559,291 1,951,382 918,605
6,044
232,883
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.
22
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 Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Tier-1 capital Paid-up share capital Statutory reserve Accumulated losses Less: Deferred tax Total Tier-1 capital Tier-2 capital Collective assessment allowance Subordinated Sukuk Total Tier-2 capital Capital base
CET 1 / Core capital ratio Risk-weighted capital ratio
1,000,000 3,975 (270,509) 733,466 (72,645) 660,821
1,000,000 (279,269) 720,731 (72,645) 648,086
57,101 293,002 350,103
63,909 232,883 296,792
1,010,924
944,878
14.427% 22.063%
13.832% 20.167%
b) The breakdown of risk-weighted assets by each major risk category is as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Credit risk Market risk Operational risk
4,131,669 120,624 332,155 4,584,448
23
4,226,788 119,562 338,971 4,685,321
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 2015 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
1,634,383 375,183 3,154,579 804,049 1,167,159 85,937 23,477 7,244,767
1,634,383 374,235 3,140,342 803,587 1,167,159 85,937 23,477 7,229,120
110,183 2,345,928 602,691 563,436 50,119 24,645 3,697,001
8,815 187,674 48,215 45,075 4,010 1,972 295,761
1,634,858 555,711 2,798,795 871,638 1,161,337 43,233 10,733 7,076,305
1,634,858 555,711 2,785,280 870,303 1,161,337 43,233 10,733 7,061,455
111,142 2,347,538 652,727 587,818 7,626 12,666 3,719,517
8,891 187,803 52,218 47,025 610 1,013 297,560
494,447
494,445
434,668
34,773
557,930
557,930
507,271
40,582
494,447 7,739,214
494,445 7,723,565
434,668 4,131,669
34,773 330,534
557,930 7,634,235
557,930 7,619,385
507,271 4,226,788
40,582 338,142
Long Position
Short Position
-
-
Long Position
Short Position
-
-
120,624 -
-
120,624 332,155 4,584,448
9,650 26,572 366,756
119,562 -
-
119,562 338,971 4,685,321
9,565 27,118 374,825
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 Large Exposures Risk Requirement Market Risk Foreign Currency Risk Operational Risk Total RWA and Capital Requirements
Audited 31 December 2014
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) Unaudited 30 September 2015 Exposures after netting and Credit Risk Mitigation
Group and Bank
Sovereigns/ Central Banks RM’000
Banks, Development Financial Institutions & MDBs RM’000
1,634,383 1,634,383
Risk weights
Other Assets RM’000
Total exposure after netting and CRM RM’000
Total Risk Weighted Assets RM’000
513,537 995,010 297,640 48,492 1,854,679
35,818 100,238 136,056
1,670,201 773,861 380,398 781,127 2,663,811 1,430,690 7,700,088
154,772 133,139 390,564 1,997,858 1,430,690 4,107,023
1,393 1,393
6,638 4,453 11,091
-
21,139 2,338 23,477
21,139 3,507 24,646
1,696,723
1,865,770
136,056
7,723,565
4,131,669
Corporate RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
308,875 176,681 485,556
619,758 2,668,699 2,712,650 6,001,107
1,695,330 1,695,330
-
-
35,640 35,640
1,634,383
485,556
6,036,747
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
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) Audited 31 December 2014 Exposures after netting and Credit Risk Mitigation
Group and Bank Risk weights
Banks, Development Sovereigns/ Financial Central Banks Institutions & MDBs RM’000 RM’000
Corporates RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
Total exposure after netting Other Assets and CRM RM’000 RM’000
Total Risk Weighted Assets RM’000
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total
1,634,858 1,634,858
557,629 557,629
75,578 1,509,121 1,560,096 3,144,795
970,590 970,590
338,719 634,617 240,381 43,831 1,257,548
35,607 7,626 43,233
1,670,465 633,207 338,719 634,617 2,720,092 1,611,553 7,608,653
126,641 118,552 317,309 2,040,068 1,611,552 4,214,122
-
-
-
57 753 810
6,808 3,114 9,922
-
6,865 3,867 10,732
6,865 5,801 12,666
1,634,858
557,629
3,144,795
971,400
1,267,470
43,233
7,619,385
4,226,788
Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
26
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 2015 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
1,670,201 773,861 380,398 781,127 2,663,811 1,451,829 2,338 7,723,565
154,772 133,139 390,564 1,997,858 1,451,829 3,507 4,131,669 120,624 332,155 4,584,448
Audited 31 December 2014 Risk-weighted Principal RM’000 RM’000
Group and Bank
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
1,670,465 633,207 338,719 634,617 2,720,092 1,618,418 3,867 7,619,385
27
126,641 118,552 317,309 2,040,068 1,618,417 5,801 4,226,788 119,562 338,971 4,685,321
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 Audited Unaudited 31 December 2014 30 September 2015 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
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
374,527 40,176
187,264 8,035
146,512 7,621
271,985 28,481
135,993 5,696
111,340 5,112
2,839
-
-
20,974
-
-
24,984
2,888
2,888
37,605
495
495
314,849
159,591
141,016
470,301
235,151
210,580
683,346 10,833 1,451,554
134,503 2,168 494,448
135,007 1,624 434,668
891,517 11,460 1,732,323
178,303 2,292 557,930
178,025 1,719 507,271
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 Unaudited 30 September 2015
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
153,086
100,191
28,622
281,899
65,967
43,496
19,808
129,271 (116,536) 12,735
Zakat and taxation
-
Net profit for the financial period Other comprehensive income - Securities available-for-sale 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
12,735 12,735
1,878,102
310,849
3,540,644
5,729,595 1,714,260 7,443,855
2,308,682
4,029,613
-
6,338,295 372,094 6,710,389
2,425
(31)
384
2,778 6,644 9,422
4,720
200
718
5,638 8,449 14,087
(5,210)
-
8,815
3,605
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 24.
SEGMENTAL INFORMATION (Continued) Audited 31 December 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
192,416
133,787
30,024
356,226
59,438
76,013
28,529
163,980 (153,978) 10,002
Zakat and taxation
(5,200)
Net loss for the financial year Other comprehensive income: - Securities available-for-sale 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
4,802 4,820
1,961,972
540,864
3,081,754
5,584,590 1,686,343 7,270,933
2,916,142
3,339,001
-
6,255,143 295,059 6,550,202
2,758
61
190
3,009 8,530 11,539
7,209
238
971
8,418 12,020 20,438
15,086
-
1,494
16,580
30
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.
REVIEW OF PERFORMANCE FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2015 AGAINST THE CORRESPONDING FINANCIAL QUARTER OF THE PRECEDING YEAR For the financial period ended 30 September 2015, the Group and Bank recorded a higher net profit of RM12.74 million as compared to a net profit of RM2.10 million in the preceding year’s corresponding period.
27.
PROSPECTS FOR 2015 Malaysia is currently facing challenging economic environment where growing economy remained vulnerable to external risk and stocks, hence the need for corporate entities to implement sustainable policies in investments and operations. The Bank is also not spared from the economic challenges where greater competition is seen in both retail and corporate sector and tighter regulatory environment. Nevertheless, the Bank is geared to face the challenges and to grow the business selectively targeting new market segments at the same time continue to strengthen its governance.
31
INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2015
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 2015
Note
Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
114,103 294,468 2,792 5,397 1,454,438 5,088,168 35,564 230,064 105,000 13,097 28,119 72,645 7,443,855
358,672 233,115 1,630 5,099 1,426,084 4,774,809 32,758 216,364 105,000 13,051 31,706 72,645 7,270,933
5,091,568 1,246,727 24,155 54,937 293,002 6,710,389
5,477,854 777,289 685 12,551 48,940 232,883 6,550,202
Shareholder’s equity Share capital Reserves Total Shareholder’s Equity
1,000,000 (266,534) 733,466
1,000,000 (279,269) 720,731
Total Liabilities and Shareholder’s Equity
7,443,855
7,270,933
1,451,554
1,732,323
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 Subordinated Sukuk Total Liabilities
13 14 9
COMMITMENTS AND CONTINGENCIES
21
CAPITAL ADEQUACY Core capital ratio Risk-weighted capital ratio
23 14.427% 22.063%
13.832% 20.167%
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 2014
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 2015 rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 RM’000 Note RM’000 Revenue
Nine Months Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000
95,620
90,893
281,899
261,585
Income derived from investment of depositors’ funds and others
15
86,629
83,662
255,782
238,988
Income derived from investment of shareholders’ funds
16
8,991
7,231
26,117
22,597
Allowance for impairment on financing
17
2,381
(5,140)
(3,605)
(14,234)
-
(1)
(13)
(4)
98,001
85,752
278,281
247,347
(49,924)
(45,437)
(149,024)
(128,334)
48,077
40,315
129,257
119,013
(18,349) (20,655)
(19,075) (20,025)
(53,678) (62,844)
(56,889) (60,075)
9,073
1,215
12,735
2,049
Other expenses directly attributable to the investment of the depositors’ funds Total distributable income Income attributable to depositors Total net income Personnel expenses Other overheads and expenditures Profit before zakat and taxation
18
Zakat
-
-
-
-
Taxation
-
-
-
-
Net profit for the financial period
9,073
1,215
12,735
2,049
-
-
-
49
9,073
1,215
12,735
2,098
Other comprehensive income: Items that was reclassified to profit or loss in subsequent periods: - Transfer to Wakalah reserve Total comprehensive income for the financial period
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 2014.
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 2015
Non-distributable Group and Bank Share Capital
Statutory Available-for-sale Accumulated reserve Reserve losses
Total
At 1 January 2015 Total comprehensive income for the financial period
1,000,000
3,975
-
(283,244)
720,731
-
-
-
12,735
12,735
At 30 September 2015
1,000,000
3,975
-
(270,509)
733,466
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
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 2014.
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 2015 Group and Bank 30 September 30 September 2015 2014 RM’000 RM’000 CASH FLOWS FROM OPERATING ACTIVITIES Profit before zakat and tax
12,735
2,049
4,755 9,331 9,229 144 (5,769) 1,246
7,074 8,331 18,032 354 (4,152) 1,281
31,671
(104) 32,865
(Increase) / decrease in Operating Assets Deposits and placements with banks and other financial institutions Hedging financial instruments Financing and advances Other assets Statutory deposits with Bank Negara Malaysia
(62,599) (1,467) (316,963) (2,806) (13,700)
332 (120) 4,507 (43,196)
Increase / (decrease) in Operating Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptances payable Other liabilities Net cash (used in) / generated from operating activities
(386,286) 528,872 11,604 6,002 (205,570)
1,097,382 (1,065,819) (953) 14,411 39,409
(4,801) (5,744) (28,354) (38,899)
(4,120) (4,922) (376,003) (385,045)
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 Operating cash flow before workings capital charges
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Purchase of intangible asset Securities available-for-sale 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 2014.
5
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 2015 Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 CASH FLOWS FROM FINANCING ACTIVITIES Issuance of Subordinated Sukuk Net cash generated from financing activities
-
-
(244,569)
(345,636)
Cash and cash Equivalents as at 1 January
358,672
455,387
CASH AND SHORT-TERM FUNDS AS AT 30 SEPTEMBER 2015
114,103
109,751
NET DECREASE IN CASH AND SHORT-TERM FUNDS
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 2014.
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 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 2014. 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 2014.
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 2014, except for the adoption of the following: Amendments to MFRS 119: Defined Benefits Plans: Employee Contributions Annual improvements to MFRSs 2010 - 2012 cycle Amendments to MFRS contained in the documents entitled “Annual Improvements 2011-2013 cycle” Amendments to MFRS 3: Business Combination Amendments to MFRS 8: Operating Segments Amendments to MFRS 13: Fair Value Measurement Amendments to MFRS 116: Property, Plant and Equipment Amendments to MFRS 124: Related party disclosures MFRS 138: Intangible Asset The adoption of MFRSs above do not have any financial impact on the Group and the Bank as they mainly help to clarify the requirements of or provide further explanations to existing MFRSs. The following MFRSs and IC Interpretations have been issued by the MASB and are not yet effective: Effective for the financial period beginning on or after 1 January 2016: MFRS 11: Accounting for acquisitions in Joint Operations Amendments to MFRS 127: Equity Method in Separate Financial Statements Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture Amendments to MFRSs contained in the document entitled “Annual Improvements to MFRSs 2012–2014 Cycle” MFRS 14: Regulatory Deferral Accounts Amendments to MFRS 116 and MFRS 138: Clarification of Acceptable Methods of Depreciation and Amortisation Amendments to MFRS 116 and MFRS 141: Agriculture: Bearer Plants Effective for the financial period beginning on or after 1 January 2017: MFRS 15: Revenue from Contracts with Customers
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 2.
ACCOUNTING POLICIES (CONTINUED) Effective for the financial period beginning on or after 1 January 2018: MFRS 9: Financial Instruments (IFRS 9 Financial Instruments as issued by IASB in July 2014)
3.
AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2014 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 2015.
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 and the Bank in 3rd Quarter Ended 30 September 2015.
6.
CHANGES IN ESTIMATE There were no changes in estimates of amounts reported in prior financial years that have a material effect in the 3rd Quarter Ended 30 September 2015.
7.
DEBT AND EQUITY SECURITIES There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in the 3rd Quarter Ended 30 September 2015.
8.
DIVIDENDS PAID rd
There were no dividends paid during the 3 quarter and nine months ended 30 September 2015.
8
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 2015 Foreign currency forward contracts
25,021
2,792
-
Audited 31 December 2014 Foreign currency forward contracts
38,398
1,630
685
SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 30 September 31 December 2015 2014 RM’000 RM’000 At fair value Quoted securities: Unit Trust
11.
5,397
5,099
SECURITIES HELD-TO-MATURITY Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,319 50,119 1,454,438
9
1,418,459 7,625 1,426,084
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
3,131,325 1,177,362 688,911 70,673 79,838 40,483 5,190,312
Unaudited 30 September 2015 Total net financing and Qard advances RM’000 RM’000 1,720 1,721
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
3,131,325 1,177,362 688,911 70,673 79,838 40,483 1,720 5,190,312 (76,225) (25,919) 5,088,168
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
2,762,340 749,463 1,179,749 86,297 86,142 38,443 4,902,434
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Audited 31 December 2014 Total net Qard financing and advances RM’000 RM’000 2,086 2,086
2,762,340 749,463 1,179,749 86,297 86,142 38,443 2,086 4,904,520 (86,569) (43,124) 4,774,809
10
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 2015 2014 RM’000 RM’000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
(c)
34,669 1,472,208 1,960,003 1,723,432 5,190,312
163,384 1,148,660 2,022,625 1,569,851 4,904,520
Financing and advances analysed by profit rate sensitivity are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
11
1,606,354 688,911 70,673 16,089 79,838 1,720 983
1,253,219 749,463 86,297 18,402 86,142 2,086 1,074
1,161,273 39,500 1,524,971 5,190,312
1,161,347 37,369 1,509,121 4,904,520
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 2015 2014 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)
926,192 233,140 2,217,805 1,813,175 5,190,312
471,687 351,243 2,082,619 1,998,971 4,904,520
Financing and advances analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2015 2014 RM’000 RM’000 Malaysia Saudi Arabia Other Countries
(f)
3,640,585 1,524,971 24,756 5,190,312
3,367,791 1,509,121 27,608 4,904,520
Financing and advances analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2015 2014 RM’000 RM’000 Purchase of securities Working capital Purchase of property – residential property Personal use Purchase of commercial complex Purchase of vehicles Others Purchase of shop-house Construction Charge card Purchase of industrial buildings and factories
12
1,606,296 1,395,303 1,188,112 688,911 129,010 79,838 35,738 48,504 15,529 1,720 1,351 5,190,312
1,571,317 1,087,655 1,191,375 749,463 131,256 86,142 39,437 38,443 5,962 2,086 1,384 4,905,520
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 Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Household Telecommunication Wholesale & Retail trade Manufacturing 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 Other business Forestry, logging and related services activities
13
1,996,335 1,524,971 342,701 379,631 386,585 279,077 190,251 53,889 31,886 2,925 1,352 602 107 5,190,312
2,055,803 1,508,979 263,184 316,478 203,516 303,623 130,586 54,596 34,893 3,484 1,384 827 167 4,904,520
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) (h)
Movements in impaired financing and advances Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
75,098 95,092 (22,296) (42,815) (36,795) 68,284
101,374 121,621 (39,002) (79,119) (29,776) 75,098
0.82%
0.66%
Included in amount classified as impaired during the financial period is profit accrued on impaired financing of RM48,355,578 (2014: RM101,350,235). (i)
Movements in the allowances for impaired financing and advances Group and Bank Audited Unaudited 30 September 31 December 2015 2014 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
14
86,569 (4,408)
96,781 16,135
(5,936) 76,225
(26,347) 86,569
1.48%
1.78%
43,142
44,041
14,085
3,247
(449) (30,859) 25,919
(717) (3,429) 43,142
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) (j) Impaired financing analysed by geographical distribution are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Malaysia
68,284 68,284
75,098 75,098
(k) Impaired financing analysed by economic purpose are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Working capital Purchase of properties - residential Personal use Purchase of transport vehicles Purchase of shophouse Charge card
43,744 12,469 9,830 845 226 1,170 68,284
41,553 17,945 14,086 476 820 218 75,098
(l) Impaired financing analysed by sector are as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Household Manufacturing Wholesale & retail trade Construction Real estate, renting and business activities
15
31,448 31,913 4,869 54 68,284
33,545 36,223 5,205 54 71 75,098
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 2015 2014 RM’000 RM’000 Savings deposits Qard Mudarabah
385,079 -
52,150 127,400
Demand deposits Qard Mudarabah
2,070,239 144,733
456,456 473,975
Term deposit Commodity Murabahah
2,057,596
2,449,228
28,463 404,411
53,922 1,864,015
1,047 5,091,568
708 5,477,854
General investment account Mudarabah Wakalah Other deposits
(b) By type of customer Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Business enterprises Government and statutory bodies Individuals Others
2,049,519 732,563 300,003 2,009,483 5,091,568
1,573,634 1,280,875 293,589 2,329,756 5,477,854
(c) By maturity structure Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Due within three months More than three months to one year More than one year to five years
3,362,158 1,727,505 1,905 5,091,568 16
4,100,609 1,377,245 5,477,854
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 Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Non-Mudharabah Funds Licensed Islamic banks Licensed Financial Institutions
15.
442,081 804,646 1,246,727
446,169 331,120 777,289
INCOME DERIVED FROM INVESTMENT OF DEPOSITORS’ FUNDS AND OTHERS rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 Income derived from investment of: (i) General investment 401 698 deposits (ii) Other deposits 86,228 82,964 86,629 83,662
Nine Months Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 1,305
2,014
254,477 255,782
236,974 238,988
(i) Income derived from investment of general investment deposits rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 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 2014 2015 RM’000 RM’000
396
683
1,290
1,974
5 401
15 698
15 1,305
40 2,014
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 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 2014 2015 RM’000 RM’000
16.
Nine Months Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000
Finance income and hibah Financing and advances Securities held-to-maturity
70,581 14,789
67,540 14,034
209,015 43,197
195,264 37,829
Money at call and deposit with financial institutions Accretion of discount
857 1
1,257 133
2,208 57
3,384 497
86,228
82,964
254,477
236,974
INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS’ FUNDS rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 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 2014 2015 RM’000 RM’000
168
223
393
601
2,960 658 1,000
1,979 358 937
6,970 1,601 4,001
6,248 1,735 2,959
(746) 101
(158) 84
(602) 419
3 271
1,631 3,219 8,991
1,468 2,340 7,231
5,380 7,955 26,117
5,051 5,729 22,597
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 17.
ALLOWANCE FOR IMPAIRMENT ON FINANCING rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 RM’000 RM’000 Allowance for impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - provided / 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 2014 2015 RM’000 RM’000
13,800
734
14,085
3,907
64
(965)
(449)
(1,695)
(14,397)
6,748
(4,408)
15,820
(1,947) 99 (2,381)
(1,711) 334 5,140
(5,769) 144 3,605
(4,152) 354 14,234
INCOME ATTRIBUTABLE TO DEPOSITORS rd
3 Quarter Ended Group and Bank 30 September 30 September 2014 2015 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 2014 2015 RM’000 RM’000
840 26,821 7,164
2,161 24,245 14,412
4,873 77,142 40,710
5,931 78,504 31,451
15,099 49,924
4,619 45,437
26,299 149,024
12,399 128,285
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 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 2014.
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 2015 Credit Risk equivalent weighted amount amount RM’000 RM’000
Principal amount RM’000
Audited 31 December 2014 Credit Risk equivalent weighted amount amount RM’000 RM’000
-
-
-
-
-
-
374,527
187,264
146,512
271,985
135,993
111,340
40,176
8,035
7,621
28,481
5,696
5,112
683,346
136,669
136,632
891,517
178,303
178,025
325,682
159,591
141,016
906,999
449,893
410,136
2,839 24,984 1,451,554
2,888 494,447
2,888 434,669
20,974 37,605 1,732,323
495 557,930
495 507,271
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 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 2015
1 to 5 > 5 years years RM’000 RM’000
Non- profit sensitive Trading book RM’000 RM’000
Effective profit rate Total
Up to 1 month RM’000
>1-3 months RM’000
>3-12 months RM’000
59,191 -
-
-
-
-
117,200 -
175,802 -
-
1,448,570
253,692 370,892
230,763 406,565
2,186,498 2,186,498
641,139 2,089,709
1,190,830 1,262,971
1,708,164
1,904
-
927,699
-
5,091,568
3.49
580,000 176,892 1,770,830 1,439,863
483,805 2,191,969
1,904
293,002 293,002
6,029 24,155 54,937 1,012,820
-
1,246,727 24,155 54,937 293,002 6,710,389
3.79 -
733,466
-
733,466
293,002
1,746,286
-
7,443,855
RM’000
%
114,103 2,792
0.63 -
1,466 5,868
294,468 5,397 5,397 - 1,454,438
0.85 3.98
40,257 (33,860) 484,489 553,132
- 5,122,028 (33,860) 484,489 8,189 7,443,855
5.50
Assets Cash and short term funds Hedging financial instruments Deposits and placements with banks and other FI Securities held-for-trading 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 FI Hedging financial instruments Bills and acceptance payable Other liabilities Subordinated Sukuk 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
1,769,679 1,828,870
1,770,830
1,439,863
2,191,969
1,904
-
-
54,912 -
2,792
58,040 (1,068,971) (1,785,404)
2,184,594
1,796,707
(1,193,152)
8,189
58,040 (1,068,972) (1,785,405)
2,184,594
1,796,707
1,451,554 258,402
8,189
-
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 22. FINANCIAL RISK MANAGEMENT (continued) Market Risk - Profit Rate Risk (continued) Non-trading book Bank Audited 31 December 2014
Up to 1 month
>1-3 months
RM’000
RM’000
305,305 -
-
-
130,410 7,626
>3-12 months RM’000
1 to 5 > 5 years years
Nonprofit sensitive
Trading book
Effective profit rate RM’000 % Total
RM’000
RM’000
RM’000
RM’000
-
-
-
53,367 -
1,630
358,672 1,630
1.09 -
102,466 -
-
1,399,198
239 19,260
233,115 5,099 5,099 - 1,426,084
1.10 3.98
559,291 785,067 559,291 2,184,265
23,210 (54,613) 471,524 512,987
- 4,829,422 (54,613) 471,524 6,729 7,270,933
5.50 -
Assets Cash and short term funds Hedging financial instruments Deposits and placements with banks and other FI Securities held-for-trading 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 FI Hedging financial instruments Bills and acceptance payable Other liabilities Subordinated Sukuk 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
1,405,403 1,710,708
199,766 1,856,685 337,802 1,959,151
1,995,249 1,576,157
1,364,25
-
-
542,194
-
5,477,854
2.90
380,000 365,000 30,000 2,375,249 1,941,157 1,394,254
-
232,883 232,883
2,289 12,551 48,940 605,974
685 685
777,289 685 12,551 48,940 232,83 6,550,202
3.89 -
720,731
-
720,731
1,326,705
685
7,270,933
-
-
-
-
2,375,249
1,941,157 1,394,254
-
(664,541)
(1,603,355) 564,897
559,291 1,951,382
(813,718)
6,044
(664,541)
(1,603,355) 564,897
1,732,323 559,291 1,951,382 918,605
6,044
232,883
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.
22
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 Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Tier-1 capital Paid-up share capital Statutory reserve Accumulated losses Less: Deferred tax Total Tier-1 capital Tier-2 capital Collective assessment allowance Subordinated Sukuk Total Tier-2 capital Capital base
CET 1 / Core capital ratio Risk-weighted capital ratio
1,000,000 3,975 (270,509) 733,466 (72,645) 660,821
1,000,000 (279,269) 720,731 (72,645) 648,086
57,101 293,002 350,103
63,909 232,883 296,792
1,010,924
944,878
14.427% 22.063%
13.832% 20.167%
b) The breakdown of risk-weighted assets by each major risk category is as follows: Group and Bank Audited Unaudited 30 September 31 December 2015 2014 RM’000 RM’000 Credit risk Market risk Operational risk
4,131,669 120,624 332,155 4,584,448
23
4,226,788 119,562 338,971 4,685,321
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 2015 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
1,634,383 375,183 3,154,579 804,049 1,167,159 85,937 23,477 7,244,767
1,634,383 374,235 3,140,342 803,587 1,167,159 85,937 23,477 7,229,120
110,183 2,345,928 602,691 563,436 50,119 24,645 3,697,001
8,815 187,674 48,215 45,075 4,010 1,972 295,761
1,634,858 555,711 2,798,795 871,638 1,161,337 43,233 10,733 7,076,305
1,634,858 555,711 2,785,280 870,303 1,161,337 43,233 10,733 7,061,455
111,142 2,347,538 652,727 587,818 7,626 12,666 3,719,517
8,891 187,803 52,218 47,025 610 1,013 297,560
494,447
494,445
434,668
34,773
557,930
557,930
507,271
40,582
494,447 7,739,214
494,445 7,723,565
434,668 4,131,669
34,773 330,534
557,930 7,634,235
557,930 7,619,385
507,271 4,226,788
40,582 338,142
Long Position
Short Position
-
-
Long Position
Short Position
-
-
120,624 -
-
120,624 332,155 4,584,448
9,650 26,572 366,756
119,562 -
-
119,562 338,971 4,685,321
9,565 27,118 374,825
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 Large Exposures Risk Requirement Market Risk Foreign Currency Risk Operational Risk Total RWA and Capital Requirements
Audited 31 December 2014
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) Unaudited 30 September 2015 Exposures after netting and Credit Risk Mitigation
Group and Bank
Sovereigns/ Central Banks RM’000
Banks, Development Financial Institutions & MDBs RM’000
1,634,383 1,634,383
Risk weights
Other Assets RM’000
Total exposure after netting and CRM RM’000
Total Risk Weighted Assets RM’000
513,537 995,010 297,640 48,492 1,854,679
35,818 100,238 136,056
1,670,201 773,861 380,398 781,127 2,663,811 1,430,690 7,700,088
154,772 133,139 390,564 1,997,858 1,430,690 4,107,023
1,393 1,393
6,638 4,453 11,091
-
21,139 2,338 23,477
21,139 3,507 24,646
1,696,723
1,865,770
136,056
7,723,565
4,131,669
Corporate RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
308,875 176,681 485,556
619,758 2,668,699 2,712,650 6,001,107
1,695,330 1,695,330
-
-
35,640 35,640
1,634,383
485,556
6,036,747
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
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) Audited 31 December 2014 Exposures after netting and Credit Risk Mitigation
Group and Bank Risk weights
Banks, Development Sovereigns/ Financial Central Banks Institutions & MDBs RM’000 RM’000
Corporates RM’000
Regulatory Retail RM’000
Residential Real Estate RM’000
Total exposure after netting Other Assets and CRM RM’000 RM’000
Total Risk Weighted Assets RM’000
Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total
1,634,858 1,634,858
557,629 557,629
75,578 1,509,121 1,560,096 3,144,795
970,590 970,590
338,719 634,617 240,381 43,831 1,257,548
35,607 7,626 43,233
1,670,465 633,207 338,719 634,617 2,720,092 1,611,553 7,608,653
126,641 118,552 317,309 2,040,068 1,611,552 4,214,122
-
-
-
57 753 810
6,808 3,114 9,922
-
6,865 3,867 10,732
6,865 5,801 12,666
1,634,858
557,629
3,144,795
971,400
1,267,470
43,233
7,619,385
4,226,788
Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
26
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 2015 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
1,670,201 773,861 380,398 781,127 2,663,811 1,451,829 2,338 7,723,565
154,772 133,139 390,564 1,997,858 1,451,829 3,507 4,131,669 120,624 332,155 4,584,448
Audited 31 December 2014 Risk-weighted Principal RM’000 RM’000
Group and Bank
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
1,670,465 633,207 338,719 634,617 2,720,092 1,618,418 3,867 7,619,385
27
126,641 118,552 317,309 2,040,068 1,618,417 5,801 4,226,788 119,562 338,971 4,685,321
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 Audited Unaudited 31 December 2014 30 September 2015 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
Principal amount
Credit equivalent amount
RM’000
RM’000
Risk weighted amount RM’000
374,527 40,176
187,264 8,035
146,512 7,621
271,985 28,481
135,993 5,696
111,340 5,112
2,839
-
-
20,974
-
-
24,984
2,888
2,888
37,605
495
495
314,849
159,591
141,016
470,301
235,151
210,580
683,346 10,833 1,451,554
134,503 2,168 494,448
135,007 1,624 434,668
891,517 11,460 1,732,323
178,303 2,292 557,930
178,025 1,719 507,271
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 Unaudited 30 September 2015
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
153,086
100,191
28,622
281,899
65,967
43,496
19,808
129,271 (116,536) 12,735
Zakat and taxation
-
Net profit for the financial period Other comprehensive income - Securities available-for-sale 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
12,735 12,735
1,878,102
310,849
3,540,644
5,729,595 1,714,260 7,443,855
2,308,682
4,029,613
-
6,338,295 372,094 6,710,389
2,425
(31)
384
2,778 6,644 9,422
4,720
200
718
5,638 8,449 14,087
(5,210)
-
8,815
3,605
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 24.
SEGMENTAL INFORMATION (Continued) Audited 31 December 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
192,416
133,787
30,024
356,226
59,438
76,013
28,529
163,980 (153,978) 10,002
Zakat and taxation
(5,200)
Net loss for the financial year Other comprehensive income: - Securities available-for-sale 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
4,802 4,820
1,961,972
540,864
3,081,754
5,584,590 1,686,343 7,270,933
2,916,142
3,339,001
-
6,255,143 295,059 6,550,202
2,758
61
190
3,009 8,530 11,539
7,209
238
971
8,418 12,020 20,438
15,086
-
1,494
16,580
30
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.
REVIEW OF PERFORMANCE FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2015 AGAINST THE CORRESPONDING FINANCIAL QUARTER OF THE PRECEDING YEAR For the financial period ended 30 September 2015, the Group and Bank recorded a higher net profit of RM12.74 million as compared to a net profit of RM2.10 million in the preceding year’s corresponding period.
27.
PROSPECTS FOR 2015 Malaysia is currently facing challenging economic environment where growing economy remained vulnerable to external risk and stocks, hence the need for corporate entities to implement sustainable policies in investments and operations. The Bank is also not spared from the economic challenges where greater competition is seen in both retail and corporate sector and tighter regulatory environment. Nevertheless, the Bank is geared to face the challenges and to grow the business selectively targeting new market segments at the same time continue to strengthen its governance.
31
