interim financial statements for the financial quarter ended 30
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2016
Registered Office Ground Floor, East Block Wisma Selangor Dredging 142-B Jalan Ampang 50450 Kuala Lumpur
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER The Group Unaudited Audited Note 30 September 31 December 2016 2015 RM'000 RM'000 ASSETS Cash and short-term funds Deposits and placements with banks and other financial institutions Hedging financial instruments Securities held-for-trading Securities held-to-maturity Financing and advances Other assets Statutory deposit with Bank Negara Malaysia Investment properties Property and equipment Intangible assets Deferred tax assets Total Assets
141,659
127,806
The Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000
141,659
127,806
9 10 11 12 13
279,437 115 5,382 1,454,185 5,081,682 31,022 213,198 105,000 13,413 26,588 62,051 7,413,732 (1.00)
287,090 1,291 5,510 1,469,290 4,983,507 26,515 208,758 105,000 10,631 27,943 62,051 7,315,392
279,437 115 5,382 1,454,185 5,081,682 30,957 213,198 105,000 13,413 26,587 62,051 7,413,666 (1)
287,090 1,291 5,510 1,469,290 4,983,507 26,515 208,758 105,000 10,631 27,943 62,051 7,315,392
14
5,412,795
5,110,626
5,412,795
15 10
934,318 44 3,227 57,788 275,311 6,683,483
1,108,059 2 18,737 59,550 285,928 6,582,902
934,318 44 3,227 57,780 275,311 6,683,475
5,110,626 1,108,059 2 18,737 59,550 285,928 6,582,902
LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptances payable Other liabilities Subordinated Sukuk Total Liabilities
(1.00)
Shareholder's equity Share capital Reserves Total Shareholder's Equity
1,000,000 (269,751) 730,249
1,000,000 (267,510) 732,490
1,000,000 (269,809) 730,191
1,000,000 (267,510) 732,490
Total Liabilities and Shareholder's Equity
7,413,732
7,315,392
7,413,666
7,315,392
1,970,309
1,314,720
1,970,309
1,314,720
COMMITMENTS AND CONTINGENCIES
22
CAPITAL ADEQUACY CET 1 / Core capital ratio Risk-weighted capital ratio
25 13.809% 20.932%
14.628% 22.392%
13.807% 20.931%
14.628% 22.392%
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
1
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016
Group
Note
3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000
Revenue
Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
91,059
95,620
278,806
281,899
Income derived from investment of depositors' funds and others
16
82,867
86,629
254,258
255,782
Income derived from investment of shareholder's funds
17
8,192
8,991
24,548
26,117
Allowance for impairment on financing
18
(2,002)
2,381
(2,667)
(3,605)
Other expenses directly attributable to the investment of the depositors' funds Total distributable income Income attributable to depositors
19
Total Net Income Personnel expenses Other overheads and expenditures Profit / (loss) before zakat and taxation Zakat Taxation
4
-
-
89,061
98,001
276,139
278,281
(50,442)
(49,924)
(153,614)
(149,024)
38,619
48,077
122,525
129,257
(25,919) (10,027)
(18,349) (20,655)
(71,470) (53,283)
(53,678) (62,844)
2,673
9,073
(2,228)
12,735
-
(14)
-
(14)
Net profit / (loss) for the financial period, representing total comprehensive income / (loss) for the financial period
2,659 9,073 (2,242) (0) (0) The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
2
(13)
12,735
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016
Bank
Note
3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000
Revenue
Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
91,022
95,620
278,612
281,899
Income derived from investment of depositors' funds and others
16
82,867
86,629
254,258
255,782
Income derived from investment of shareholder's funds
17
8,154
8,991
24,354
26,117
Allowance for impairment on financing
18
(2,002)
2,381
(2,667)
(3,605)
Other expenses directly attributable to the investment of the depositors' funds Total distributable income Income attributable to depositors
19
Total Net Income Personnel expenses Other overheads and expenditures Profit / (loss) before zakat and taxation Zakat Taxation Net profit / (loss) for the financial period, representing total comprehensive income / (loss) for the financial period
4
-
-
89,024
98,001
275,945
278,281
(50,442)
(49,924)
(153,614)
(149,024)
38,582
48,077
122,331
129,257
(25,926) (9,990)
(18,349) (20,655)
(71,435) (53,194)
(53,678) (62,844)
2,666
9,073
(2,298)
12,735
-
-
2,666
9,073
-
(2,298)
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
3
(13)
-
12,735
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 Share capital RM'000
Statutory reserve RM'000
Accumulated losses RM'000
1,000,000 1,000,000
9,855 9,855
(277,365) (2,242) (279,607)
732,490 (2,242) 730,249
1,000,000 1,000,000
3,975 5,880 9,855
(283,244) 11,759 (5,880) (277,365)
720,731 11,759 732,490
Total RM'000
Group At 1 January 2016 Total comprehensive loss for the financial period Transfer to statutory reserve At 30 September 2016
Group At 1 January 2015 Total comprehensive income for the financial period Transfer to statutory reserve At 31 December 2015
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
4
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 Non-Distributable Share Statutory capital reserve RM'000 RM'000
Accumulated losses RM'000
Total RM'000
Bank At 1 January 2016 Total comprehensive loss for the financial period Transfer to statutory reserve At 30 September 2016
1,000,000 1,000,000
9,855 9,855
(277,365) (2,298) (279,663)
732,490 (2,298) 730,191
(283,244) 11,759 (5,880) (277,365)
720,731 11,759 732,490
(9,855)
Bank At 1 January 2015 Total comprehensive income for the financial period Transfer to statutory reserve At 31 December 2015
1,000,000 1,000,000
3,975 5,880 9,855
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
5
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 The Group 30 September 30 September 2016 2015 RM'000 RM'000
The Bank 30 September 30 September 2016 2015 RM'000 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES (Loss) / Profit before zakat and taxation
(2,228)
12,735
(2,298)
12,735
3,824 8,564 41 7,141 1,302 (5,777)
4,755 9,331 9,229 144 (5,769) -
3,824 8,564 41 7,141 1,302 (5,777) -
4,755 9,331 9,229 144 (5,769) -
10,759 23,596
1,246 31,671
10,759 23,525
1,246 31,671
(Increase) / decrease in Operating Assets Deposits and placements with banks and other financial institutions Hedging financial instruments Financing and advances Other assets Statutory deposit with Bank Negara Malaysia
(3,106) 1,017 (100,842) 537 (4,440)
(62,599) (1,467) (316,963) (2,806) (13,700)
(3,106) 1,017 (100,842) 604 (4,440)
(62,599) (1,467) (316,963) (2,806) (13,700)
(Decrease) / increase 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 generated from / (used in) operating activities
302,168 (184,316) (15,509) (6,502) 12,603
(386,286)
302,168
(386,286)
528,872 11,604 6,104 (205,570)
(184,316) (15,509) (6,498) 12,603
528,872 11,604 6,104 (205,570)
Adjustments for: Depreciation of property and equipment Amortisation of intangible assets Net gain on disposal of property,plant & equipment Allowance for impairment on financing Bad debts on financing - Written off Bad debts on financing - Recovered Allowance for doubtful debt Unrealised loss on revaluation of securities held-for-trading / investment properties Unrealised (gain)/loss from foreign exchange translations Operating cashflow before workings capital changes
(31)
6
(31)
-
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 The Group 30 September 30 September 2016 2015 RM'000 RM'000
The Bank 30 September 30 September 2016 2015 RM'000 RM'000
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Purchase of intangible asset Proceeds from sale of fixed assets Securities held-to-maturity Net cash generated from / (used in) investing activities
(6,647) (7,208) 15,105 1,250
(4,901) (5,744) (28,354) (38,999)
(6,647) (7,208) 15,105 1,250
(4,901) (5,744) (28,354) (38,999)
CASH FLOWS FROM FINANCING ACTIVITY Issuance of Subordinated Sukuk Net cash generated from financing activities
-
NET INCREASE / (DECREASE) IN CASH AND SHORT-TERM FUNDS
-
-
-
13,853
(244,569)
13,853
(244,569)
Cash and short-term funds as at 1 January
127,806
358,672
127,806
358,672
CASH AND SHORT-TERM FUNDS
141,659
114,103 -
141,659
114,103
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
7
AL RAJHI BANKING AND 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 2015. 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 2015.
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 2015, except for the adoption of the following: Annual improvements to MFRSs 2012 - 2014 Cycle 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 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture MFRS 11: Accounting for acquisitions of interest in Joint Operations Amendments to MFRS 127: Equity Method in Separate Financial Statements Amendments to MFRS 101 : Disclosure initiatives Amendments to MFRS 10, MFRS 12, and MFRS 128 : Investment Entities: Applying the Consolidation Exception MFRS 14: Regulatory Deferral Accounts 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 2018: MFRS 15: Revenue from Contracts with Customers 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)
8
AL RAJHI BANKING AND 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 (CONTINUED) 3.
AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2015 was not qualified.
4.
COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS The operations of the Group and the Bank were not materially affected by any seasonal or cyclical factors in the 3rd Quarter Ended 30 September 2016.
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 2016.
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 2016.
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 2016.
8.
DIVIDENDS PAID There were no dividends paid during the 3rd Quarter Ended 30 September 2016.
9
AL RAJHI BANKING AND 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.
DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Foreign financial institutions
279,437
287,090
10. HEDGING FINANCIAL INSTRUMENTS Group and Bank
Notional Amount RM'000
Assets RM'000
Fair Value Liabilities RM'000
Unaudited 30 September 2016 Foreign currency forward contracts
5,312
115
44
Audited 31 Decemebr 2015 Foreign currency forward contracts
12,449
1,291
2
11. SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 At fair value Quoted securities: Unit Trust
5,382
5,510
12. SECURITIES HELD-TO-MATURITY Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,093 50,092 1,454,185
10
1,418,390 50,900 1,469,290
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (a) Financing and advances analysed by types and Shariah contracts are as follows:
Group and Bank
At amortised cost Term Financing: Corporate financing Personal financing Home financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
Bai’ Bithaman Ajil RM'000
Qard RM'000
3,225,128 633,360 1,155,496 44,277 77,703 38,182 5,174,146
1,704 1,704
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Unaudited 30 September 2016 Total net financing and advances RM'000
3,225,128 633,360 1,155,496 44,277 77,703 38,182 1,704 5,175,850
(86,396) (7,772) 5,081,682
At amortised cost Term Financing: Corporate financing Personal financing Home financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Bai’ Bithaman Ajil RM'000
Qard RM'000
3,045,754 669,611 1,182,512 62,935 76,865 39,121 5,076,798
1,902 1,902
Audited 31 December 2015 Total net financing and advances RM'000
3,045,754 669,611 1,182,512 62,935 76,865 39,121 1,902 5,078,700
(87,732) (7,461) 4,983,507
11
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (b) Financing and advances analysed by type of customers are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
272,072 1,456,826 1,881,869 1,565,083 5,175,850
381,724 1,196,725 1,970,010 1,530,241 5,078,700
(c) Financing and advances analysed by profit rate sensitivity are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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
1,699,971 633,360 44,292 10,907 77,703 1,704 895
1,536,454 669,611 62,935 15,505 76,865 1,902 981
1,144,590 37,287 1,525,141 5,175,850
1,167,007 38,140 1,509,300 5,078,700
(d) Financing and advances analysed by maturity structure are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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
782,399 316,028 2,116,518 1,960,905 5,175,850
539,003 508,445 2,157,988 1,873,264 5,078,700
(e) Financing and advances analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Malaysia Saudi Arabia Other Countries
3,611,341 1,525,141 39,368 5,175,850
12
3,535,114 1,509,301 34,285 5,078,700
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (f)
Financing and advances analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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 Purchase of industrial buildings and factories Charge card
1,525,141 1,405,665 1,225,478 633,820 128,803 77,523 76,533 26,603 45,833 28,747 1,704 5,175,850
1,589,531 1,321,999 1,193,020 669,611 127,080 76,865 32,923 48,809 15,611 1,349 1,902 5,078,700
(g) Financing and advances analysed by sectors are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Household Telecommunication Manufacturing Real estate, renting and business activities Finance intermediation Wholesale & Retail trade Construction Fishing, Operation of Fish Hatcheries, Fish Farms Transportation Agriculture, hunting and related service activities Other business Electricity, gas and water supply Forestry, logging and related services activities
1,903,812 1,525,142 564,462 347,154 282,391 335,833 198,370 12,308 3,505 2,873 5,175,850
1,970,026 1,509,301 308,497 242,975 434,643 291,254 261,389 1,349 19,944 2,733 561 35,941 87 5,078,700
(h) Movements in impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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
31,038 47,000 (5,484) (24,315) (8,635) 39,604
75,098 102,987 (26,353) (74,701) (45,993) 31,038
0.62%
0.46%
Included in amount classified as impaired during the financial year is profit accrued on impaired financing of RM43,737,869 (2015: RM85,280,054).
13
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (i)
Movements in the allowances for impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Collective assessment allowance At 1 January Allowance made during the period / year (Note 18 (b)) Amount written off Closing balance As % of total gross financing and advances less individual impairment allowances
87,732 6,830 (8,166) 86,396
86,569 10,842 (9,679) 87,732
1.67%
1.73%
7,461 862 (551) 7,772
43,142 505 (460) (35,726) 7,461
Individual assessment allowance At 1 January Allowance made during the financial year (Note 18(a)) Amount recovered during the financial year (Note 18(a)) Amount written off Closing balance (j)
Impaired financing analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Malaysia
39,604 39,604
31,038 31,038
(k) Impaired financing analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Working capital Personal use Purchase of properties - residential Purchase of shophouse Purchase of transport vehicles Charge card
(l)
17,778 11,423 7,095 2,171 926 211 39,604
6,990 11,041 12,104 703 200 13,007
Impaired financing analysed by sector are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Household Manufacturing Construction Other business Wholesale & retail trade Real estate, renting and business activities Transportation
21,640 17,936 11 17 39,604
14
24,048 6,909 54 27 31,038
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 14. DEPOSITS FROM CUSTOMERS (a) By type of deposit Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Savings deposits Qard
254,280
353,863
Demand deposits Qard Mudarabah
533,180 123,078
571,855 128,992
4,449,242
3,768,322
14,834 35,310
26,259 260,278
2,871 5,412,795
1,057 5,110,626
Term deposit Commodity Murabahah General investment account Mudarabah Wakalah Other deposits
(b) By type of customer Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Business enterprises Government and statutory bodies Individuals Others
1,673,607 872,058 365,973 2,501,157 5,412,795
1,722,484 595,530 309,174 2,483,438 5,110,626
(c) By maturity structure Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Due within three months More than three months to one year More than one year to five years
3,740,397 1,608,936 63,462 5,412,795
3,480,352 1,628,799 1,475 5,110,626
15. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Non-Mudharabah Funds Licensed Islamic banks Licensed financial institutions
640,792 293,526 934,318
15
318,836 789,223 1,108,059
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 16. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Income derived from investment of: (i) General investment deposits (ii) Other deposits
(i)
225 82,643 82,867
401 86,228 86,629
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
850 253,409 254,258
1,305 254,477 255,782
Income derived from investment of general investment deposits Group 3rd Quarter Ended 30 September 30 September 2016 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
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
219
396
826
1,290
6 225
5 401
24 850
15 1,305
(ii) Income derived from investment of other deposits Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Financing and advances Securities held-to-maturity Money at call and deposit with financial institutions Accretion of discount
16
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
66,372 14,788
70,581 14,789
204,511 44,096
209,015 43,197
1,483 1 82,643
857 1 86,228
4,800 3 253,409
2,208 57 254,477
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 16. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS (Continued) Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Income derived from investment of: (i) General investment deposits (ii) Other deposits
(i)
225 82,642 82,867
401 86,228 86,629
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
850 253,408 254,258
1,305 254,477 255,782
Income derived from investment of general investment deposits Bank 3rd Quarter Ended 30 September 30 September 2016 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
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
219
396
826
1,290
6 225 -
5 401
24 850 -
15 1,305 -
(ii) Income derived from investment of other deposits Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Financing and advances Securities held-to-maturity Money at call and deposit with financial institutions Accretion of discount
17
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
66,372 14,787
70,581 14,789
204,511 44,095
209,015 43,197
1,482 1 82,642
857 1 86,228
4,799 3 253,408
2,208 57 254,477
AL RAJHI BANKING AND 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. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS' FUNDS Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Money at call and deposit with financial institutions Total finance income and hibah
403 403
Other operating income - Net gain from foreign exchange translations - Realised - Unrealised - Rental income - Realised gain on gold - Unrealised loss on revaluation of securities held-for-trading - Others
(8,847) 10,938 1,140 441 25 85
Other income - Service charges - Commission received
1,761 2,246 8,192
168 168
2,960 658 1,000 (746) 101
1,631 3,219 8,991
Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Money at call and deposit with financial institutions Total finance income and hibah
403 403
Other operating income - Net gain from foreign exchange translations - Realised - Unrealised - Rental income - Realised gain on gold - Unrealised loss on revaluation of securities held-for-trading - Others
(8,847) 10,938 1,140 441 183 85
Other income - Service charges - Commission received
1,565 2,246 8,154
18
168 168
2,960 0 658 1,000 (746) 101
1,631 3,219 8,991
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
1,215 1,215
(3,902) 10,759 3,420 1,633 31 266
4,962 6,165 24,548
393 393
6,970 1,601 4,001 (602) 419
5,380 7,955 26,117
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
1,215 1,215
(3,902) 10,759 3,420 1,633 31 266
4,767 6,165 24,354
393 393
6,970 0 1,601 4,001 (602) 419
5,380 7,955 26,117
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 18. ALLOWANCE FOR IMPAIRMENT ON FINANCING Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - written back
36 (26)
(b) Collective assessment allowance - (write-back) / provided during financial quarter (c) Bad debts on financing - recovered - written off
13,800 64
(c) Bad debts on financing - recovered - written off
19
14,085 (449)
(14,397) (533)
6,830 7,141
(4,408) 9,228
(1,901) 819 2,002
(1,947) 99 (2,381)
(5,777) 1,302 2,666
(5,769) 146 3,605
36 (26)
(b) Collective assessment allowance - (write-back) / provided during financial quarter
862 (551)
3,074 3,084
Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - written back
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
13,800 64
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
862 (551)
14,085 (449)
3,074 3,084
(14,397) (533)
6,830 7,141
(4,408) 9,228
(1,901) 819 2,002
(1,947) 99 (2,381)
(5,777) 1,302 2,666 (1.00)
(5,769) 146 3,605 -
AL RAJHI BANKING AND 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. INCOME ATTRIBUTABLE TO DEPOSITORS Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Deposits from customers - Non-Mudharabah - Mudharabah - Wakalah Deposits and placements of banks and other financial institutions - Non-Mudharabah
25,589 463 275 26,327
26,821 840 7,164 34,825
86,818 1,500 3,255 91,573
77,142 4,873 40,710 122,725
24,115 50,442
15,099 49,924
62,041 153,614
26,299 149,024
Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Deposits from customers - Non-Mudharabah - Mudharabah - Wakalah Deposits and placements of banks and other financial institutions - Non-Mudharabah
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
25,589 463 275 26,327
26,821 840 7,164 34,825
86,818 1,500 3,255 91,573
77,142 4,873 40,710 122,725
24,115 50,442
15,099 49,924
62,041 153,614
26,299 149,024
20. SUBSEQUENT EVENTS There were no material events subsequent to the end of the reporting date that require disclosure or adjustments to the unaudited interim financial statements.
21. CHANGES IN THE COMPOSITION OF THE GROUP There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2015.
20
AL RAJHI BANKING AND 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. 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:
Unaudited 30 September 2016 Credit Principal equivalent amount amount RM'000 RM'000
Risk weighted amount RM'000
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 exchange-related contracts Miscellaneous
326,999 8,684
163,500 1,737
127,647 1,599
1,427,484 172,942 28,896 5,304
285,497 83,744 136
285,497 80,887 136
1,970,309
534,614
495,766
Principal amount RM'000
Audited 31 December 2015 Credit equivalent amount RM'000
Risk weighted amount RM'000
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 exchange-related contracts Miscellaneous
21
318,178 39,897
159,089 7,979
125,117 7,173
651,076 288,828 4,292 12,449
130,215 141,282 1,427
130,188 129,656 1,426
1,314,720
439,992
393,559
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT Market Risk - Profit Rate Risk The Group is exposed to various risks associated with the effects of fluctuations in the prevailing levels of yield/profit rate on its financial position. The rate of return risk is the potential impact of market factors affecting rates on returns in comparison with the expected rates of return for investment account holders. Yield/profit rate is monitored and managed by the ALCO to protect the income of its operations. The assets and liabilities at carrying amount are categorised by the earlier of the next contractual repricing dates and maturity dates as follows: Non-trading book The Group Unaudited 30 September 2016 Assets Cash and short term funds Hedging financial instruments Deposit and placement with other FI / Institutions Securities held-for-trading Securities held-to-maturity Financing and advances - performing - Non performing(1) Other assets(2) Total assets
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
48,003 -
-
-
-
110,120 -
1,419,911 1,467,915
523,763 633,883
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
-
-
93,655 -
115
141,659 115
1.04% -
165,191 4,000.00
844,570
600,000
4,126 5,615
5,382 -
279,437 5,382 1,454,185
2.53% 3.99%
1,822,108 1,991,299
563,982 1,408,552
774,153 1,374,153
5,497
5,136,246 (54,564) 451,272 7,413,732
22
32,330 (54,564) 451,272 532,434
5.55%
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (Continued) The Group (Continued) Unaudited (Continued) 30 September 2016 Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,457,915
1,537,547
1,595,211
330,000 1,787,915
385,893 1,923,440
1,787,915
(320,001) (320,001)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
63,462
-
758,660
-
5,412,795
3.60%
215,000 1,810,211
63,462
275,311 275,311
3,425 3,228 57,787 . 823,099
44 44
934,318 44 3,228 57,787 275,311 6,683,483
3.37% -
-
-
-
-
730,249
-
730,249
1,923,440
1,810,211
63,462
275,311
1,553,348
44
7,413,732
181,088
1,345,089
1,098,842
-
-
-
1,970,309
-
181,088
1,345,089
1,098,842
949,394
5,453
(1,289,558) (1,289,558)
(1,020,914)
5,453
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. 23
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued)
Non-trading book The Bank Unaudited 30 September 2016 Assets Cash and short term funds Hedging financial instruments Deposit and placement with other FI / Institutions Securities held-for-trading Securities held-to-maturity Financing and advances - performing (1) - Non performing (2) Other assets Total assets
Average effective Total profit rate RM'000 %
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
48,003 -
-
-
-
-
93,655 -
115
141,659 115
1.04%
-
110,120 -
165,191 4,000
844,570
600,000
4,126 5,615
5,382 -
279,437 5,382 1,454,185
2.53%
1,419,911 1,467,915
523,763 633,883
1,822,108 1,991,299
563,982 1,408,552
774,153 1,374,153
5,497
5,136,246 (54,564) 451,206 7,413,666 0.24
24
32,330 (54,564) 451,206 532,368
0.04% 5.55%
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) The Bank (Continued) Unaudited (Continued) 30 September 2016 Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,457,915
1,537,547
1,595,211
330,000 1,787,915
385,893 1,923,440
1,787,915
(320,001) (320,001)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
63,462
-
758,660
-
5,412,795
3.56
215,000 1,810,211
63,462
275,311 275,311
3,425 3,227 57,780 823,091
44 44
934,318 44 3,227 57,780 275,311 6,683,475
3.28 -
-
-
-
-
730,191
-
730,191
1,923,440
1,810,211
63,462
275,311
1,553,282
44
7,413,666
181,088
1,345,089
1,098,842
-
-
-
1,970,309
-
181,088
1,345,089
1,098,842
949,394
5,453
(1,289,558) (1,289,558)
(1,020,914)
5,453
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. 25
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued)
Non-trading book The Group Audited 31 December 2015 Assets Cash and short term funds Hedging financial instruments Deposit and placement with other FI / Institutions Securities held-for-trading Securities held-to-maturity Financing and advances - performing - Non performing(1) (2) Other assets Total assets
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
69,766 -
-
-
-
102,936 -
1,435,224 1,504,990
278,949 381,885
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
-
-
58,040 -
1,291
127,806 1,291
0.24 -
182,992 -
-
1,448,570
1,162 20,720
5,510 -
1.10 3.99
505,647 688,639
2,143,252 2,143,252
661,009 2,109,579
23,581 (64,155) 440,898 480,246
6,801
287,090 5,510 1,469,290 5,047,662 (64,155) 440,898 7,315,392
26
5.50
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) The Group (Continued) Audited (Continued) 31 December 2015 (Continued) Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,435,328
1,282,419
1,612,412
718,806 2,154,134
371,282 1,653,701
2,154,134
(649,144) (649,144)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
1,474
-
778,993
-
10,000 1,622,412
1,474
285,928 285,928
7,971 18,737 59,550 865,251
2 2
5,110,626 1,108,059 2 18,737 59,550 285,928 6,582,902
-
-
-
-
732,490
-
732,490
1,653,701
1,622,412
1,474
285,928
1,597,741
2
7,315,392
2,141,778
1,823,651
-
-
1,314,720
-
2,141,778
1,823,651
197,225
6,799
(1,271,816)
(933,773)
(1,271,816)
(933,773)
(1,117,495)
6,799
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. 27
3.45 3.75
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued)
Non-trading book The Bank Audited 31 December 2015 Assets Cash and short term funds Hedging financial instruments Depos it and Securities held-for-trading Securities held-to-maturity Financing and advances - performing (1) - Non performing (2) Other assets Total assets
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
> 5 years RM'000
69,766 1,435,224 1,504,990
102,936 278,949 381,885
182,992 505,647 688,639
2,143,252 2,143,252
1,448,570 661,009 2,109,579
28
Non-profit sensitive RM'000
58,040 1,162 20,720 23,581 (64,155) 440,898 480,246
Trading book RM'000
1,291 5,510 6,801
Average effective Total profit rate RM'000 %
127,806 1,291 287,090 5,510 1,469,290 5,047,662 (64,155) 440,898 7,315,392
0.24 1.10 3.99 5.50 -
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) The Bank (Continued) Audited (Continued) 31 December 2015 (Continued) Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,435,328
1,282,419
1,612,412
718,806 2,154,134
371,282 1,653,701
2,154,134
(649,144) (649,144)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
1,474
-
778,993
-
10,000 1,622,412
1,474
285,928 285,928
7,971 18,737 59,550 865,251
2 2
5,110,626 1,108,059 2 18,737 59,550 285,928 6,582,902
-
-
-
-
732,490
-
732,490
1,653,701
1,622,412
1,474
285,928
1,597,741
2
7,315,392
2,141,778
1,823,651
-
-
1,314,720
6,799 -
2,141,778
1,823,651
197,225
6,799
(1,271,816)
(933,773)
(1,271,816)
(933,773)
(1,117,495)
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. 29
3.45 3.75 -
AL RAJHI BANKING AND 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
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):
The Group Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 CET 1/ Tier I capital Paid-up share capital Accumulated losses Less: Deferred tax Total Tier-I capital Tier-II capital Collective impairment for impairment loss on nonimpaired financing Subordinated Sukuk Total Tier-II capital Capital base CET 1 / Core capital ratio Risk-weighted capital ratio
1,000,000 (269,751) 730,249 (62,051) 668,198
69,384 275,311 344,695 1,012,893 13.809% 20.932%
The Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000
1,000,000 (267,510) 732,490 (62,051) 670,439
1,000,000 (269,809) 730,191 (62,051) 668,140
1,000,000 (267,510) 732,490 (62,051) 670,439
69,919 285,928 355,847
69,384 275,311 344,695
69,919 285,928 355,847
1,026,286
1,012,835
1,026,286
14.628% 22.392%
13.807% 20.931%
14.628% 22.392%
(b) The breakdown of risk-weighted assets ("RWA") by each major risk category is as follows: The Group Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Credit risk Market risk Operational risk
4,384,395 125,284 329,332 4,839,011
30
4,130,450 119,661 333,253 4,583,364
The Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 4,384,395 125,284 329,332 4,839,011
4,130,450 119,661 333,253 4,583,364
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,623,512
1,623,512
-
-
419,487 3,269,760 724,568
419,487 3,254,644 739,684
83,897 2,620,225 558,543
6,712 209,618 44,683
1,144,798 84,660 20,330
1,144,798 84,660 20,330
546,973 50,092 28,899
43,758 4,007 2,312
7,287,115
7,287,115
3,888,630
311,090
534,613
534,613
495,765
39,661
534,613
534,613
495,765
39,661
7,821,728
7,821,728
4,384,395
350,751
-
-
-
-
Long position
Short position
125,284
-
125,284
10,023
-
-
329,332 4,839,011
26,347 387,120
Large Exposures Risk Requirement Market Risk Foreign Currency Risk
The Group 30 September 2016 Risk weighted Capital assets requirements RM'000 RM'000
Operational Risk Total RWA and Capital Requirements
31
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) (b) The breakdown of risk-weighted assets ("RWA") by exposures in each major risk category for the current financial year are as follows: (continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,636,901
1,636,901
-
-
370,464 3,098,532 781,209
369,516 3,085,569 780,841
108,354 2,393,371 585,631
8,668 191,470 46,850
1,170,408 85,316 6,073
1,170,408 81,421 6,073
592,577 50,382 6,576
47,406 4,031 526
7,148,903
7,130,729
3,736,891
298,951
439,993
439,993
393,559
31,485
439,993
439,993
393,559
31,485
7,588,896
7,570,722
4,130,450
330,436
-
-
-
-
Long position
Short position
119,661
-
119,661
9,573
333,253 4,583,364
26,660 366,669
Large Exposures Risk Requirement Market Risk Foreign Currency Risk
The Group 31 December 2015 Risk weighted Capital assets requirements RM'000 RM'000
Operational Risk Total RWA and Capital Requirements
32
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,623,512
1,623,512
-
-
419,487 3,269,760 724,568
419,487 3,254,644 739,684
83,897 2,620,225 558,543
6,712 209,618 44,683
1,144,798 84,660 20,330
1,144,798 84,660 20,330
546,973 50,092 28,899
43,758 4,007 2,312
7,287,115
7,287,115
3,888,630
311,090
534,613
534,613
495,765
39,661
534,613
534,613
495,765
39,661
7,821,728
7,821,728
4,384,395
350,751
-
-
-
-
Long position
Short position
125,284
-
125,284
10,023
-
-
329,332 4,839,011
26,347 387,120
Large Exposures Risk Requirement Market Risk Foreign Currency Risk
The Bank 30 September 2016 Risk weighted Capital assets requirements RM'000 RM'000
Operational Risk Total RWA and Capital Requirements
33
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) (b) The breakdown of risk-weighted assets ("RWA") by exposures in each major risk category for the current financial year are as follows: (continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,636,901
1,636,901
-
-
370,464 3,098,532 781,209 1,170,408 85,316 6,073
369,516 3,085,569 780,841 1,170,408 81,421 6,073
108,354 2,393,371 585,631 592,577 50,382 6,576
119,661 333,253
7,148,903
7,130,729
3,736,891
452,914
439,993
439,993
393,559
31,485
439,993
439,993
393,559
31,485
7,588,896
7,570,722
4,130,450
484,399
-
-
-
-
Long position
Short position
119,661 -
-
119,661 333,253 4,583,364
9,573 26,660 520,632
Large Exposures Risk Requirement Market Risk Foreign Currency Risk Operational Risk Total RWA and Capital Requirements
The Bank 31 December 2015 Risk weighted Capital assets requirements RM'000 RM'000
34
-
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) Group and Bank Unaudited 30 September 2016
Risk weights Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Exposures after netting and credit risk mitigation ("CRM")
Residential Real Estate RM'000
Equity exposures RM'000
Other assets RM'000
Total exposure after netting and CRM RM'000
867,559 867,559
373,168 701,418 27,587 51,989 1,154,162
-
34,568 50,092 84,660
1,658,080 661,269 373,168 822,353 2,420,287 1,866,241 7,801,398
132,254 130,610 411,176 1,815,214 1,866,241 4,355,495
14,986 14,986
1,391 1,391
3,191 762 3,953
-
-
3,191 17,139 20,330
3,191 25,709 28,900
3,666,055
868,950
1,158,115
-
84,660
7,821,728
4,384,395
Sovereigns/ Central Bank RM'000
Banks, DFIs & MDBs RM'000
Corporate RM'000
1,623,512 1,623,512
420,436 420,436
240,833 120,935 1,525,141 1,764,160 3,651,069
-
-
1,623,512
420,436
Regulatory Retail RM'000
35
Total weighted assets RM'000
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) Group and Bank Audited 31 December 2015
Risk weights Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Exposures after netting and credit risk mitigation ("CRM")
Residential Real Estate RM'000
Equity exposures RM'000
Other assets RM'000
Total exposure after netting and CRM RM'000
920,389 920,389
334,865 671,099 141,632 65,968 1,213,564
-
31,039 50,382 81,421
1,667,940 649,219 334,865 785,935 2,571,322 1,555,368 7,564,649
129,844 117,203 392,968 1,928,491 1,555,368 4,123,874
-
131 131
5,067 875 5,942
-
-
5,067 1,006 6,073
5,067 1,509 6,576
3,341,910
920,520
1,219,506
-
81,421
7,570,722
4,130,450
Sovereigns/ Central Bank RM'000
Banks, DFIs & MDBs RM'000
Regulatory Corporate Retail RM'000 RM'000
1,636,901 1,636,901
255,628 114,836 370,464
393,591 1,509,301 1,439,018 3,341,910
-
-
1,636,901
370,464
36
Total risk weighted assets RM'000
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) Group and Bank Unaudited 30 September 2016 Principal Risk-weighted RM'000 RM'000 1,658,080 661,269 373,168 822,353 2,420,287 1,869,432 17,139 7,821,728
0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Large exposure risk-weighted assets for equity holdings Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
132,254 130,610 411,176 1,815,214 1,869,432 25,709 4,384,395 125,284 329,332 4,839,011
The Bank Audited 31 December 2015 Principal Risk-weighted RM'000 RM'000 0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Large exposure risk-weighted assets for equity holdings Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
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
1,667,940 649,219 334,865 785,935 2,571,322 1,560,435 1,006 7,570,722
129,844 117,203 392,968 1,928,491 1,560,435 1,509 4,130,450 119,661 333,253 4,583,364
Disclosure on Off Balance and Counterparty Credit Risk Unaudited Unaudited 30 September 2016 31 December 2015 Credit Risk Credit Principal equivalent weighted Principal equivalent amount amount amount amount amount RM'000 RM'000 RM'000 RM'000 RM'000
Risk weighted amount RM'000
326,999 8,684
163,500 1,737
127,647 1,599
318,178 39,897
159,089 7,979
125,117 7,173
28,896
-
-
4,292
-
-
5,304
136
136
12,449
1,427
1,427
163,853
83,744
80,888
278,389
141,282
129,655
1,427,484 9,089 1,970,309
283,679 1,818 534,614
284,133 1,363 495,766
651,076 10,439 1,314,720
128,127 2,088 439,992
128,622 1,565 393,559
37
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION
The Group Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial period Other comprehensive income Total comprehensive income for the financial period
Unaudited 30 September 2016 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
127,801
124,358
26,647
278,806
71,619
28,466
22,440
122,526 (124,754) (2,228) (14) (2,242) (2,242)
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 and amortisation Unallocated depreciation and amortisation
1,886,040
320,405
3,509,648
5,716,093 1,697,639 7,413,732
5,412,794
934,319
-
6,347,113 336,370 6,683,483
761
28
141
930 10,052 10,982
3,559
260
525
4,344 8,044 12,388
Other non-cash (income)/expenses
(1,223)
38
-
3,889
2,667
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION (Continued) The Bank Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial period Other comprehensive income Total comprehensive income for the financial period
Unaudited 30 September 2016 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
127,606
124,358
26,648
278,612
71,423
28,466
22,441
122,331 (124,629) (2,298) (2,298) (2,298)
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 and amortisation Unallocated depreciation and amortisation
1,886,041
320,405
3,509,644
5,716,090 1,697,576 7,413,666
5,412,795
934,318
-
6,347,113 336,362 6,683,475
761
28
141
930 10,052 10,982
3,559
260
525
4,344 8,044 12,388
Other non-cash (income)/expenses
(1,223)
39
-
3,889
2,667
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION (Continued) The Bank Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial year Other comprehensive income Total comprehensive income for the financial year
Audited 31 December 2015 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
175,988
166,693
42,593
385,275
102,062
41,719
37,808
181,590 (159,237) 22,353 (10,594) 11,759 11,759
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 and amortisation Unallocated depreciation and amortisation
1,914,314
303,175
3,390,963
5,608,452 1,706,940 7,315,392
2,031,532
4,187,153
-
6,218,685 364,217 6,582,902
3,416
(31)
622
4,008 10,761 14,768
8,085
275
963
9,323 11,560 20,883
Other non-cash (income)/expenses
(1,113)
40
-
4,786
3,673
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION (Continued) The Bank Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial year Other comprehensive income Total comprehensive income for the financial year
Audited 31 December 2015 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
175,988
166,693
42,593
385,275
102,062
41,719
37,808
181,590 (159,237) 22,353 (10,594) 11,759 11,759
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 and amortisation Unallocated depreciation and amortisation
1,914,314
303,175
3,390,963
5,608,452 1,706,940 7,315,392
2,031,532
4,187,153
-
6,218,685 364,217 6,582,902
3,416
(31)
622
4,008 10,761 14,768
8,085
275
963
9,323 11,560 20,883
Other non-cash (income)/expenses
(1,113)
41
-
4,786
3,673
AL RAJHI BANKING AND 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 2016 AGAINST THE CORRESPONDING FINANCIAL QUARTER OF THE PRECEDING YEAR
For the financial period ended 30 September 2016, the Group and Bank recorded a net loss of RM2.24 million and RM2.30 million respectively as compared to a net profit of RM12.7 million in the preceding year’s corresponding period.
27. PROSPECTS FOR 2016 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.
42
INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2016
Registered Office Ground Floor, East Block Wisma Selangor Dredging 142-B Jalan Ampang 50450 Kuala Lumpur
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER The Group Unaudited Audited Note 30 September 31 December 2016 2015 RM'000 RM'000 ASSETS Cash and short-term funds Deposits and placements with banks and other financial institutions Hedging financial instruments Securities held-for-trading Securities held-to-maturity Financing and advances Other assets Statutory deposit with Bank Negara Malaysia Investment properties Property and equipment Intangible assets Deferred tax assets Total Assets
141,659
127,806
The Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000
141,659
127,806
9 10 11 12 13
279,437 115 5,382 1,454,185 5,081,682 31,022 213,198 105,000 13,413 26,588 62,051 7,413,732 (1.00)
287,090 1,291 5,510 1,469,290 4,983,507 26,515 208,758 105,000 10,631 27,943 62,051 7,315,392
279,437 115 5,382 1,454,185 5,081,682 30,957 213,198 105,000 13,413 26,587 62,051 7,413,666 (1)
287,090 1,291 5,510 1,469,290 4,983,507 26,515 208,758 105,000 10,631 27,943 62,051 7,315,392
14
5,412,795
5,110,626
5,412,795
15 10
934,318 44 3,227 57,788 275,311 6,683,483
1,108,059 2 18,737 59,550 285,928 6,582,902
934,318 44 3,227 57,780 275,311 6,683,475
5,110,626 1,108,059 2 18,737 59,550 285,928 6,582,902
LIABILITIES AND SHAREHOLDER'S EQUITY Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptances payable Other liabilities Subordinated Sukuk Total Liabilities
(1.00)
Shareholder's equity Share capital Reserves Total Shareholder's Equity
1,000,000 (269,751) 730,249
1,000,000 (267,510) 732,490
1,000,000 (269,809) 730,191
1,000,000 (267,510) 732,490
Total Liabilities and Shareholder's Equity
7,413,732
7,315,392
7,413,666
7,315,392
1,970,309
1,314,720
1,970,309
1,314,720
COMMITMENTS AND CONTINGENCIES
22
CAPITAL ADEQUACY CET 1 / Core capital ratio Risk-weighted capital ratio
25 13.809% 20.932%
14.628% 22.392%
13.807% 20.931%
14.628% 22.392%
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
1
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016
Group
Note
3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000
Revenue
Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
91,059
95,620
278,806
281,899
Income derived from investment of depositors' funds and others
16
82,867
86,629
254,258
255,782
Income derived from investment of shareholder's funds
17
8,192
8,991
24,548
26,117
Allowance for impairment on financing
18
(2,002)
2,381
(2,667)
(3,605)
Other expenses directly attributable to the investment of the depositors' funds Total distributable income Income attributable to depositors
19
Total Net Income Personnel expenses Other overheads and expenditures Profit / (loss) before zakat and taxation Zakat Taxation
4
-
-
89,061
98,001
276,139
278,281
(50,442)
(49,924)
(153,614)
(149,024)
38,619
48,077
122,525
129,257
(25,919) (10,027)
(18,349) (20,655)
(71,470) (53,283)
(53,678) (62,844)
2,673
9,073
(2,228)
12,735
-
(14)
-
(14)
Net profit / (loss) for the financial period, representing total comprehensive income / (loss) for the financial period
2,659 9,073 (2,242) (0) (0) The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
2
(13)
12,735
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016
Bank
Note
3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000
Revenue
Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
91,022
95,620
278,612
281,899
Income derived from investment of depositors' funds and others
16
82,867
86,629
254,258
255,782
Income derived from investment of shareholder's funds
17
8,154
8,991
24,354
26,117
Allowance for impairment on financing
18
(2,002)
2,381
(2,667)
(3,605)
Other expenses directly attributable to the investment of the depositors' funds Total distributable income Income attributable to depositors
19
Total Net Income Personnel expenses Other overheads and expenditures Profit / (loss) before zakat and taxation Zakat Taxation Net profit / (loss) for the financial period, representing total comprehensive income / (loss) for the financial period
4
-
-
89,024
98,001
275,945
278,281
(50,442)
(49,924)
(153,614)
(149,024)
38,582
48,077
122,331
129,257
(25,926) (9,990)
(18,349) (20,655)
(71,435) (53,194)
(53,678) (62,844)
2,666
9,073
(2,298)
12,735
-
-
2,666
9,073
-
(2,298)
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
3
(13)
-
12,735
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 Share capital RM'000
Statutory reserve RM'000
Accumulated losses RM'000
1,000,000 1,000,000
9,855 9,855
(277,365) (2,242) (279,607)
732,490 (2,242) 730,249
1,000,000 1,000,000
3,975 5,880 9,855
(283,244) 11,759 (5,880) (277,365)
720,731 11,759 732,490
Total RM'000
Group At 1 January 2016 Total comprehensive loss for the financial period Transfer to statutory reserve At 30 September 2016
Group At 1 January 2015 Total comprehensive income for the financial period Transfer to statutory reserve At 31 December 2015
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
4
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 Non-Distributable Share Statutory capital reserve RM'000 RM'000
Accumulated losses RM'000
Total RM'000
Bank At 1 January 2016 Total comprehensive loss for the financial period Transfer to statutory reserve At 30 September 2016
1,000,000 1,000,000
9,855 9,855
(277,365) (2,298) (279,663)
732,490 (2,298) 730,191
(283,244) 11,759 (5,880) (277,365)
720,731 11,759 732,490
(9,855)
Bank At 1 January 2015 Total comprehensive income for the financial period Transfer to statutory reserve At 31 December 2015
1,000,000 1,000,000
3,975 5,880 9,855
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
5
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 The Group 30 September 30 September 2016 2015 RM'000 RM'000
The Bank 30 September 30 September 2016 2015 RM'000 RM'000
CASH FLOWS FROM OPERATING ACTIVITIES (Loss) / Profit before zakat and taxation
(2,228)
12,735
(2,298)
12,735
3,824 8,564 41 7,141 1,302 (5,777)
4,755 9,331 9,229 144 (5,769) -
3,824 8,564 41 7,141 1,302 (5,777) -
4,755 9,331 9,229 144 (5,769) -
10,759 23,596
1,246 31,671
10,759 23,525
1,246 31,671
(Increase) / decrease in Operating Assets Deposits and placements with banks and other financial institutions Hedging financial instruments Financing and advances Other assets Statutory deposit with Bank Negara Malaysia
(3,106) 1,017 (100,842) 537 (4,440)
(62,599) (1,467) (316,963) (2,806) (13,700)
(3,106) 1,017 (100,842) 604 (4,440)
(62,599) (1,467) (316,963) (2,806) (13,700)
(Decrease) / increase 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 generated from / (used in) operating activities
302,168 (184,316) (15,509) (6,502) 12,603
(386,286)
302,168
(386,286)
528,872 11,604 6,104 (205,570)
(184,316) (15,509) (6,498) 12,603
528,872 11,604 6,104 (205,570)
Adjustments for: Depreciation of property and equipment Amortisation of intangible assets Net gain on disposal of property,plant & equipment Allowance for impairment on financing Bad debts on financing - Written off Bad debts on financing - Recovered Allowance for doubtful debt Unrealised loss on revaluation of securities held-for-trading / investment properties Unrealised (gain)/loss from foreign exchange translations Operating cashflow before workings capital changes
(31)
6
(31)
-
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X
INTERIM FINANCIAL STATEMENTS UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2016 The Group 30 September 30 September 2016 2015 RM'000 RM'000
The Bank 30 September 30 September 2016 2015 RM'000 RM'000
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment Purchase of intangible asset Proceeds from sale of fixed assets Securities held-to-maturity Net cash generated from / (used in) investing activities
(6,647) (7,208) 15,105 1,250
(4,901) (5,744) (28,354) (38,999)
(6,647) (7,208) 15,105 1,250
(4,901) (5,744) (28,354) (38,999)
CASH FLOWS FROM FINANCING ACTIVITY Issuance of Subordinated Sukuk Net cash generated from financing activities
-
NET INCREASE / (DECREASE) IN CASH AND SHORT-TERM FUNDS
-
-
-
13,853
(244,569)
13,853
(244,569)
Cash and short-term funds as at 1 January
127,806
358,672
127,806
358,672
CASH AND SHORT-TERM FUNDS
141,659
114,103 -
141,659
114,103
The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank for the year ended 31 December 2015.
7
AL RAJHI BANKING AND 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 2015. 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 2015.
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 2015, except for the adoption of the following: Annual improvements to MFRSs 2012 - 2014 Cycle 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 Amendments to MFRS 10 and MFRS 128: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture MFRS 11: Accounting for acquisitions of interest in Joint Operations Amendments to MFRS 127: Equity Method in Separate Financial Statements Amendments to MFRS 101 : Disclosure initiatives Amendments to MFRS 10, MFRS 12, and MFRS 128 : Investment Entities: Applying the Consolidation Exception MFRS 14: Regulatory Deferral Accounts 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 2018: MFRS 15: Revenue from Contracts with Customers 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)
8
AL RAJHI BANKING AND 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 (CONTINUED) 3.
AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2015 was not qualified.
4.
COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS The operations of the Group and the Bank were not materially affected by any seasonal or cyclical factors in the 3rd Quarter Ended 30 September 2016.
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 2016.
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 2016.
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 2016.
8.
DIVIDENDS PAID There were no dividends paid during the 3rd Quarter Ended 30 September 2016.
9
AL RAJHI BANKING AND 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.
DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Foreign financial institutions
279,437
287,090
10. HEDGING FINANCIAL INSTRUMENTS Group and Bank
Notional Amount RM'000
Assets RM'000
Fair Value Liabilities RM'000
Unaudited 30 September 2016 Foreign currency forward contracts
5,312
115
44
Audited 31 Decemebr 2015 Foreign currency forward contracts
12,449
1,291
2
11. SECURITIES HELD-FOR-TRADING Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 At fair value Quoted securities: Unit Trust
5,382
5,510
12. SECURITIES HELD-TO-MATURITY Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 At amortised cost Unquoted : Islamic government securities in Malaysia Islamic private debt securities in Malaysia
1,404,093 50,092 1,454,185
10
1,418,390 50,900 1,469,290
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (a) Financing and advances analysed by types and Shariah contracts are as follows:
Group and Bank
At amortised cost Term Financing: Corporate financing Personal financing Home financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances
Bai’ Bithaman Ajil RM'000
Qard RM'000
3,225,128 633,360 1,155,496 44,277 77,703 38,182 5,174,146
1,704 1,704
Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Unaudited 30 September 2016 Total net financing and advances RM'000
3,225,128 633,360 1,155,496 44,277 77,703 38,182 1,704 5,175,850
(86,396) (7,772) 5,081,682
At amortised cost Term Financing: Corporate financing Personal financing Home financing SME financing Vehicle financing Shop-house financing Charge cards Gross financing and advances Less: Impairment allowance - Collective assessment - Individual assessment Total net financing and advances
Bai’ Bithaman Ajil RM'000
Qard RM'000
3,045,754 669,611 1,182,512 62,935 76,865 39,121 5,076,798
1,902 1,902
Audited 31 December 2015 Total net financing and advances RM'000
3,045,754 669,611 1,182,512 62,935 76,865 39,121 1,902 5,078,700
(87,732) (7,461) 4,983,507
11
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (b) Financing and advances analysed by type of customers are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Domestic non-bank financial institutions Domestic business enterprise Individuals Foreign entities
272,072 1,456,826 1,881,869 1,565,083 5,175,850
381,724 1,196,725 1,970,010 1,530,241 5,078,700
(c) Financing and advances analysed by profit rate sensitivity are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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
1,699,971 633,360 44,292 10,907 77,703 1,704 895
1,536,454 669,611 62,935 15,505 76,865 1,902 981
1,144,590 37,287 1,525,141 5,175,850
1,167,007 38,140 1,509,300 5,078,700
(d) Financing and advances analysed by maturity structure are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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
782,399 316,028 2,116,518 1,960,905 5,175,850
539,003 508,445 2,157,988 1,873,264 5,078,700
(e) Financing and advances analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Malaysia Saudi Arabia Other Countries
3,611,341 1,525,141 39,368 5,175,850
12
3,535,114 1,509,301 34,285 5,078,700
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (f)
Financing and advances analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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 Purchase of industrial buildings and factories Charge card
1,525,141 1,405,665 1,225,478 633,820 128,803 77,523 76,533 26,603 45,833 28,747 1,704 5,175,850
1,589,531 1,321,999 1,193,020 669,611 127,080 76,865 32,923 48,809 15,611 1,349 1,902 5,078,700
(g) Financing and advances analysed by sectors are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Household Telecommunication Manufacturing Real estate, renting and business activities Finance intermediation Wholesale & Retail trade Construction Fishing, Operation of Fish Hatcheries, Fish Farms Transportation Agriculture, hunting and related service activities Other business Electricity, gas and water supply Forestry, logging and related services activities
1,903,812 1,525,142 564,462 347,154 282,391 335,833 198,370 12,308 3,505 2,873 5,175,850
1,970,026 1,509,301 308,497 242,975 434,643 291,254 261,389 1,349 19,944 2,733 561 35,941 87 5,078,700
(h) Movements in impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2016 2015 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
31,038 47,000 (5,484) (24,315) (8,635) 39,604
75,098 102,987 (26,353) (74,701) (45,993) 31,038
0.62%
0.46%
Included in amount classified as impaired during the financial year is profit accrued on impaired financing of RM43,737,869 (2015: RM85,280,054).
13
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 13. FINANCING AND ADVANCES (Continued) (i)
Movements in the allowances for impaired financing and advances Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Collective assessment allowance At 1 January Allowance made during the period / year (Note 18 (b)) Amount written off Closing balance As % of total gross financing and advances less individual impairment allowances
87,732 6,830 (8,166) 86,396
86,569 10,842 (9,679) 87,732
1.67%
1.73%
7,461 862 (551) 7,772
43,142 505 (460) (35,726) 7,461
Individual assessment allowance At 1 January Allowance made during the financial year (Note 18(a)) Amount recovered during the financial year (Note 18(a)) Amount written off Closing balance (j)
Impaired financing analysed by geographical distribution are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Malaysia
39,604 39,604
31,038 31,038
(k) Impaired financing analysed by economic purpose are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Working capital Personal use Purchase of properties - residential Purchase of shophouse Purchase of transport vehicles Charge card
(l)
17,778 11,423 7,095 2,171 926 211 39,604
6,990 11,041 12,104 703 200 13,007
Impaired financing analysed by sector are as follows: Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Household Manufacturing Construction Other business Wholesale & retail trade Real estate, renting and business activities Transportation
21,640 17,936 11 17 39,604
14
24,048 6,909 54 27 31,038
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 14. DEPOSITS FROM CUSTOMERS (a) By type of deposit Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Savings deposits Qard
254,280
353,863
Demand deposits Qard Mudarabah
533,180 123,078
571,855 128,992
4,449,242
3,768,322
14,834 35,310
26,259 260,278
2,871 5,412,795
1,057 5,110,626
Term deposit Commodity Murabahah General investment account Mudarabah Wakalah Other deposits
(b) By type of customer Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Business enterprises Government and statutory bodies Individuals Others
1,673,607 872,058 365,973 2,501,157 5,412,795
1,722,484 595,530 309,174 2,483,438 5,110,626
(c) By maturity structure Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Due within three months More than three months to one year More than one year to five years
3,740,397 1,608,936 63,462 5,412,795
3,480,352 1,628,799 1,475 5,110,626
15. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS Group and Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Non-Mudharabah Funds Licensed Islamic banks Licensed financial institutions
640,792 293,526 934,318
15
318,836 789,223 1,108,059
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 16. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Income derived from investment of: (i) General investment deposits (ii) Other deposits
(i)
225 82,643 82,867
401 86,228 86,629
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
850 253,409 254,258
1,305 254,477 255,782
Income derived from investment of general investment deposits Group 3rd Quarter Ended 30 September 30 September 2016 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
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
219
396
826
1,290
6 225
5 401
24 850
15 1,305
(ii) Income derived from investment of other deposits Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Financing and advances Securities held-to-maturity Money at call and deposit with financial institutions Accretion of discount
16
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
66,372 14,788
70,581 14,789
204,511 44,096
209,015 43,197
1,483 1 82,643
857 1 86,228
4,800 3 253,409
2,208 57 254,477
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 16. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS (Continued) Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Income derived from investment of: (i) General investment deposits (ii) Other deposits
(i)
225 82,642 82,867
401 86,228 86,629
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
850 253,408 254,258
1,305 254,477 255,782
Income derived from investment of general investment deposits Bank 3rd Quarter Ended 30 September 30 September 2016 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
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
219
396
826
1,290
6 225 -
5 401
24 850 -
15 1,305 -
(ii) Income derived from investment of other deposits Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Financing and advances Securities held-to-maturity Money at call and deposit with financial institutions Accretion of discount
17
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
66,372 14,787
70,581 14,789
204,511 44,095
209,015 43,197
1,482 1 82,642
857 1 86,228
4,799 3 253,408
2,208 57 254,477
AL RAJHI BANKING AND 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. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS' FUNDS Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Money at call and deposit with financial institutions Total finance income and hibah
403 403
Other operating income - Net gain from foreign exchange translations - Realised - Unrealised - Rental income - Realised gain on gold - Unrealised loss on revaluation of securities held-for-trading - Others
(8,847) 10,938 1,140 441 25 85
Other income - Service charges - Commission received
1,761 2,246 8,192
168 168
2,960 658 1,000 (746) 101
1,631 3,219 8,991
Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Finance income and hibah Money at call and deposit with financial institutions Total finance income and hibah
403 403
Other operating income - Net gain from foreign exchange translations - Realised - Unrealised - Rental income - Realised gain on gold - Unrealised loss on revaluation of securities held-for-trading - Others
(8,847) 10,938 1,140 441 183 85
Other income - Service charges - Commission received
1,565 2,246 8,154
18
168 168
2,960 0 658 1,000 (746) 101
1,631 3,219 8,991
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
1,215 1,215
(3,902) 10,759 3,420 1,633 31 266
4,962 6,165 24,548
393 393
6,970 1,601 4,001 (602) 419
5,380 7,955 26,117
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
1,215 1,215
(3,902) 10,759 3,420 1,633 31 266
4,767 6,165 24,354
393 393
6,970 0 1,601 4,001 (602) 419
5,380 7,955 26,117
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 18. ALLOWANCE FOR IMPAIRMENT ON FINANCING Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - written back
36 (26)
(b) Collective assessment allowance - (write-back) / provided during financial quarter (c) Bad debts on financing - recovered - written off
13,800 64
(c) Bad debts on financing - recovered - written off
19
14,085 (449)
(14,397) (533)
6,830 7,141
(4,408) 9,228
(1,901) 819 2,002
(1,947) 99 (2,381)
(5,777) 1,302 2,666
(5,769) 146 3,605
36 (26)
(b) Collective assessment allowance - (write-back) / provided during financial quarter
862 (551)
3,074 3,084
Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Impaired financing and advances: (a) Individual assessment allowance - provided during the financial quarter - written back
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
13,800 64
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
862 (551)
14,085 (449)
3,074 3,084
(14,397) (533)
6,830 7,141
(4,408) 9,228
(1,901) 819 2,002
(1,947) 99 (2,381)
(5,777) 1,302 2,666 (1.00)
(5,769) 146 3,605 -
AL RAJHI BANKING AND 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. INCOME ATTRIBUTABLE TO DEPOSITORS Group 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Deposits from customers - Non-Mudharabah - Mudharabah - Wakalah Deposits and placements of banks and other financial institutions - Non-Mudharabah
25,589 463 275 26,327
26,821 840 7,164 34,825
86,818 1,500 3,255 91,573
77,142 4,873 40,710 122,725
24,115 50,442
15,099 49,924
62,041 153,614
26,299 149,024
Bank 3rd Quarter Ended 30 September 30 September 2016 2015 RM'000 RM'000 Deposits from customers - Non-Mudharabah - Mudharabah - Wakalah Deposits and placements of banks and other financial institutions - Non-Mudharabah
Group Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
Bank Period Ended 30 September 30 September 2016 2015 RM'000 RM'000
25,589 463 275 26,327
26,821 840 7,164 34,825
86,818 1,500 3,255 91,573
77,142 4,873 40,710 122,725
24,115 50,442
15,099 49,924
62,041 153,614
26,299 149,024
20. SUBSEQUENT EVENTS There were no material events subsequent to the end of the reporting date that require disclosure or adjustments to the unaudited interim financial statements.
21. CHANGES IN THE COMPOSITION OF THE GROUP There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2015.
20
AL RAJHI BANKING AND 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. 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:
Unaudited 30 September 2016 Credit Principal equivalent amount amount RM'000 RM'000
Risk weighted amount RM'000
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 exchange-related contracts Miscellaneous
326,999 8,684
163,500 1,737
127,647 1,599
1,427,484 172,942 28,896 5,304
285,497 83,744 136
285,497 80,887 136
1,970,309
534,614
495,766
Principal amount RM'000
Audited 31 December 2015 Credit equivalent amount RM'000
Risk weighted amount RM'000
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 exchange-related contracts Miscellaneous
21
318,178 39,897
159,089 7,979
125,117 7,173
651,076 288,828 4,292 12,449
130,215 141,282 1,427
130,188 129,656 1,426
1,314,720
439,992
393,559
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 23. FINANCIAL RISK MANAGEMENT Market Risk - Profit Rate Risk The Group is exposed to various risks associated with the effects of fluctuations in the prevailing levels of yield/profit rate on its financial position. The rate of return risk is the potential impact of market factors affecting rates on returns in comparison with the expected rates of return for investment account holders. Yield/profit rate is monitored and managed by the ALCO to protect the income of its operations. The assets and liabilities at carrying amount are categorised by the earlier of the next contractual repricing dates and maturity dates as follows: Non-trading book The Group Unaudited 30 September 2016 Assets Cash and short term funds Hedging financial instruments Deposit and placement with other FI / Institutions Securities held-for-trading Securities held-to-maturity Financing and advances - performing - Non performing(1) Other assets(2) Total assets
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
48,003 -
-
-
-
110,120 -
1,419,911 1,467,915
523,763 633,883
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
-
-
93,655 -
115
141,659 115
1.04% -
165,191 4,000.00
844,570
600,000
4,126 5,615
5,382 -
279,437 5,382 1,454,185
2.53% 3.99%
1,822,108 1,991,299
563,982 1,408,552
774,153 1,374,153
5,497
5,136,246 (54,564) 451,272 7,413,732
22
32,330 (54,564) 451,272 532,434
5.55%
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (Continued) The Group (Continued) Unaudited (Continued) 30 September 2016 Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,457,915
1,537,547
1,595,211
330,000 1,787,915
385,893 1,923,440
1,787,915
(320,001) (320,001)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
63,462
-
758,660
-
5,412,795
3.60%
215,000 1,810,211
63,462
275,311 275,311
3,425 3,228 57,787 . 823,099
44 44
934,318 44 3,228 57,787 275,311 6,683,483
3.37% -
-
-
-
-
730,249
-
730,249
1,923,440
1,810,211
63,462
275,311
1,553,348
44
7,413,732
181,088
1,345,089
1,098,842
-
-
-
1,970,309
-
181,088
1,345,089
1,098,842
949,394
5,453
(1,289,558) (1,289,558)
(1,020,914)
5,453
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. 23
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued)
Non-trading book The Bank Unaudited 30 September 2016 Assets Cash and short term funds Hedging financial instruments Deposit and placement with other FI / Institutions Securities held-for-trading Securities held-to-maturity Financing and advances - performing (1) - Non performing (2) Other assets Total assets
Average effective Total profit rate RM'000 %
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
48,003 -
-
-
-
-
93,655 -
115
141,659 115
1.04%
-
110,120 -
165,191 4,000
844,570
600,000
4,126 5,615
5,382 -
279,437 5,382 1,454,185
2.53%
1,419,911 1,467,915
523,763 633,883
1,822,108 1,991,299
563,982 1,408,552
774,153 1,374,153
5,497
5,136,246 (54,564) 451,206 7,413,666 0.24
24
32,330 (54,564) 451,206 532,368
0.04% 5.55%
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) The Bank (Continued) Unaudited (Continued) 30 September 2016 Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,457,915
1,537,547
1,595,211
330,000 1,787,915
385,893 1,923,440
1,787,915
(320,001) (320,001)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
63,462
-
758,660
-
5,412,795
3.56
215,000 1,810,211
63,462
275,311 275,311
3,425 3,227 57,780 823,091
44 44
934,318 44 3,227 57,780 275,311 6,683,475
3.28 -
-
-
-
-
730,191
-
730,191
1,923,440
1,810,211
63,462
275,311
1,553,282
44
7,413,666
181,088
1,345,089
1,098,842
-
-
-
1,970,309
-
181,088
1,345,089
1,098,842
949,394
5,453
(1,289,558) (1,289,558)
(1,020,914)
5,453
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. 25
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued)
Non-trading book The Group Audited 31 December 2015 Assets Cash and short term funds Hedging financial instruments Deposit and placement with other FI / Institutions Securities held-for-trading Securities held-to-maturity Financing and advances - performing - Non performing(1) (2) Other assets Total assets
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
69,766 -
-
-
-
102,936 -
1,435,224 1,504,990
278,949 381,885
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
-
-
58,040 -
1,291
127,806 1,291
0.24 -
182,992 -
-
1,448,570
1,162 20,720
5,510 -
1.10 3.99
505,647 688,639
2,143,252 2,143,252
661,009 2,109,579
23,581 (64,155) 440,898 480,246
6,801
287,090 5,510 1,469,290 5,047,662 (64,155) 440,898 7,315,392
26
5.50
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) The Group (Continued) Audited (Continued) 31 December 2015 (Continued) Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,435,328
1,282,419
1,612,412
718,806 2,154,134
371,282 1,653,701
2,154,134
(649,144) (649,144)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
1,474
-
778,993
-
10,000 1,622,412
1,474
285,928 285,928
7,971 18,737 59,550 865,251
2 2
5,110,626 1,108,059 2 18,737 59,550 285,928 6,582,902
-
-
-
-
732,490
-
732,490
1,653,701
1,622,412
1,474
285,928
1,597,741
2
7,315,392
2,141,778
1,823,651
-
-
1,314,720
-
2,141,778
1,823,651
197,225
6,799
(1,271,816)
(933,773)
(1,271,816)
(933,773)
(1,117,495)
6,799
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. 27
3.45 3.75
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued)
Non-trading book The Bank Audited 31 December 2015 Assets Cash and short term funds Hedging financial instruments Depos it and Securities held-for-trading Securities held-to-maturity Financing and advances - performing (1) - Non performing (2) Other assets Total assets
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
> 5 years RM'000
69,766 1,435,224 1,504,990
102,936 278,949 381,885
182,992 505,647 688,639
2,143,252 2,143,252
1,448,570 661,009 2,109,579
28
Non-profit sensitive RM'000
58,040 1,162 20,720 23,581 (64,155) 440,898 480,246
Trading book RM'000
1,291 5,510 6,801
Average effective Total profit rate RM'000 %
127,806 1,291 287,090 5,510 1,469,290 5,047,662 (64,155) 440,898 7,315,392
0.24 1.10 3.99 5.50 -
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA
23. FINANCIAL RISK MANAGEMENT (Continued) Market Risk - Profit Rate Risk (continued) The Bank (Continued) Audited (Continued) 31 December 2015 (Continued) Liabilities Deposits from customers Deposits and placements of banks and other financial institutions Hedging financial instruments Bills and acceptance payable Other liabilities Subrodinated 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
Up to 1 month RM'000
> 1 -3 months RM'000
> 3 - 12 months RM'000
1-5 years RM'000
1,435,328
1,282,419
1,612,412
718,806 2,154,134
371,282 1,653,701
2,154,134
(649,144) (649,144)
Average effective Total profit rate RM'000 %
> 5 years RM'000
Non-profit sensitive RM'000
Trading book RM'000
1,474
-
778,993
-
10,000 1,622,412
1,474
285,928 285,928
7,971 18,737 59,550 865,251
2 2
5,110,626 1,108,059 2 18,737 59,550 285,928 6,582,902
-
-
-
-
732,490
-
732,490
1,653,701
1,622,412
1,474
285,928
1,597,741
2
7,315,392
2,141,778
1,823,651
-
-
1,314,720
6,799 -
2,141,778
1,823,651
197,225
6,799
(1,271,816)
(933,773)
(1,271,816)
(933,773)
(1,117,495)
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. 29
3.45 3.75 -
AL RAJHI BANKING AND 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
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):
The Group Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 CET 1/ Tier I capital Paid-up share capital Accumulated losses Less: Deferred tax Total Tier-I capital Tier-II capital Collective impairment for impairment loss on nonimpaired financing Subordinated Sukuk Total Tier-II capital Capital base CET 1 / Core capital ratio Risk-weighted capital ratio
1,000,000 (269,751) 730,249 (62,051) 668,198
69,384 275,311 344,695 1,012,893 13.809% 20.932%
The Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000
1,000,000 (267,510) 732,490 (62,051) 670,439
1,000,000 (269,809) 730,191 (62,051) 668,140
1,000,000 (267,510) 732,490 (62,051) 670,439
69,919 285,928 355,847
69,384 275,311 344,695
69,919 285,928 355,847
1,026,286
1,012,835
1,026,286
14.628% 22.392%
13.807% 20.931%
14.628% 22.392%
(b) The breakdown of risk-weighted assets ("RWA") by each major risk category is as follows: The Group Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 Credit risk Market risk Operational risk
4,384,395 125,284 329,332 4,839,011
30
4,130,450 119,661 333,253 4,583,364
The Bank Unaudited Audited 30 September 31 December 2016 2015 RM'000 RM'000 4,384,395 125,284 329,332 4,839,011
4,130,450 119,661 333,253 4,583,364
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,623,512
1,623,512
-
-
419,487 3,269,760 724,568
419,487 3,254,644 739,684
83,897 2,620,225 558,543
6,712 209,618 44,683
1,144,798 84,660 20,330
1,144,798 84,660 20,330
546,973 50,092 28,899
43,758 4,007 2,312
7,287,115
7,287,115
3,888,630
311,090
534,613
534,613
495,765
39,661
534,613
534,613
495,765
39,661
7,821,728
7,821,728
4,384,395
350,751
-
-
-
-
Long position
Short position
125,284
-
125,284
10,023
-
-
329,332 4,839,011
26,347 387,120
Large Exposures Risk Requirement Market Risk Foreign Currency Risk
The Group 30 September 2016 Risk weighted Capital assets requirements RM'000 RM'000
Operational Risk Total RWA and Capital Requirements
31
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) (b) The breakdown of risk-weighted assets ("RWA") by exposures in each major risk category for the current financial year are as follows: (continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,636,901
1,636,901
-
-
370,464 3,098,532 781,209
369,516 3,085,569 780,841
108,354 2,393,371 585,631
8,668 191,470 46,850
1,170,408 85,316 6,073
1,170,408 81,421 6,073
592,577 50,382 6,576
47,406 4,031 526
7,148,903
7,130,729
3,736,891
298,951
439,993
439,993
393,559
31,485
439,993
439,993
393,559
31,485
7,588,896
7,570,722
4,130,450
330,436
-
-
-
-
Long position
Short position
119,661
-
119,661
9,573
333,253 4,583,364
26,660 366,669
Large Exposures Risk Requirement Market Risk Foreign Currency Risk
The Group 31 December 2015 Risk weighted Capital assets requirements RM'000 RM'000
Operational Risk Total RWA and Capital Requirements
32
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,623,512
1,623,512
-
-
419,487 3,269,760 724,568
419,487 3,254,644 739,684
83,897 2,620,225 558,543
6,712 209,618 44,683
1,144,798 84,660 20,330
1,144,798 84,660 20,330
546,973 50,092 28,899
43,758 4,007 2,312
7,287,115
7,287,115
3,888,630
311,090
534,613
534,613
495,765
39,661
534,613
534,613
495,765
39,661
7,821,728
7,821,728
4,384,395
350,751
-
-
-
-
Long position
Short position
125,284
-
125,284
10,023
-
-
329,332 4,839,011
26,347 387,120
Large Exposures Risk Requirement Market Risk Foreign Currency Risk
The Bank 30 September 2016 Risk weighted Capital assets requirements RM'000 RM'000
Operational Risk Total RWA and Capital Requirements
33
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) (b) The breakdown of risk-weighted assets ("RWA") by exposures in each major risk category for the current financial year are as follows: (continued)
Exposure Class Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Banks, Development Financial Institutions ("DFIs") & 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
Gross exposures RM'000
Net exposures RM'000
1,636,901
1,636,901
-
-
370,464 3,098,532 781,209 1,170,408 85,316 6,073
369,516 3,085,569 780,841 1,170,408 81,421 6,073
108,354 2,393,371 585,631 592,577 50,382 6,576
119,661 333,253
7,148,903
7,130,729
3,736,891
452,914
439,993
439,993
393,559
31,485
439,993
439,993
393,559
31,485
7,588,896
7,570,722
4,130,450
484,399
-
-
-
-
Long position
Short position
119,661 -
-
119,661 333,253 4,583,364
9,573 26,660 520,632
Large Exposures Risk Requirement Market Risk Foreign Currency Risk Operational Risk Total RWA and Capital Requirements
The Bank 31 December 2015 Risk weighted Capital assets requirements RM'000 RM'000
34
-
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) Group and Bank Unaudited 30 September 2016
Risk weights Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Exposures after netting and credit risk mitigation ("CRM")
Residential Real Estate RM'000
Equity exposures RM'000
Other assets RM'000
Total exposure after netting and CRM RM'000
867,559 867,559
373,168 701,418 27,587 51,989 1,154,162
-
34,568 50,092 84,660
1,658,080 661,269 373,168 822,353 2,420,287 1,866,241 7,801,398
132,254 130,610 411,176 1,815,214 1,866,241 4,355,495
14,986 14,986
1,391 1,391
3,191 762 3,953
-
-
3,191 17,139 20,330
3,191 25,709 28,900
3,666,055
868,950
1,158,115
-
84,660
7,821,728
4,384,395
Sovereigns/ Central Bank RM'000
Banks, DFIs & MDBs RM'000
Corporate RM'000
1,623,512 1,623,512
420,436 420,436
240,833 120,935 1,525,141 1,764,160 3,651,069
-
-
1,623,512
420,436
Regulatory Retail RM'000
35
Total weighted assets RM'000
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) Group and Bank Audited 31 December 2015
Risk weights Performing Exposures 0% 20% 35% 50% 75% 100% 150% Total Defaulted Exposures 35% 50% 100% 150% Total Total Performing and Defaulted
Exposures after netting and credit risk mitigation ("CRM")
Residential Real Estate RM'000
Equity exposures RM'000
Other assets RM'000
Total exposure after netting and CRM RM'000
920,389 920,389
334,865 671,099 141,632 65,968 1,213,564
-
31,039 50,382 81,421
1,667,940 649,219 334,865 785,935 2,571,322 1,555,368 7,564,649
129,844 117,203 392,968 1,928,491 1,555,368 4,123,874
-
131 131
5,067 875 5,942
-
-
5,067 1,006 6,073
5,067 1,509 6,576
3,341,910
920,520
1,219,506
-
81,421
7,570,722
4,130,450
Sovereigns/ Central Bank RM'000
Banks, DFIs & MDBs RM'000
Regulatory Corporate Retail RM'000 RM'000
1,636,901 1,636,901
255,628 114,836 370,464
393,591 1,509,301 1,439,018 3,341,910
-
-
1,636,901
370,464
36
Total risk weighted assets RM'000
AL RAJHI BANKING AND 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. CAPITAL ADEQUACY (Continued) Group and Bank Unaudited 30 September 2016 Principal Risk-weighted RM'000 RM'000 1,658,080 661,269 373,168 822,353 2,420,287 1,869,432 17,139 7,821,728
0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Large exposure risk-weighted assets for equity holdings Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
132,254 130,610 411,176 1,815,214 1,869,432 25,709 4,384,395 125,284 329,332 4,839,011
The Bank Audited 31 December 2015 Principal Risk-weighted RM'000 RM'000 0% 20% 35% 50% 75% 100% 150% Risk-weighted assets for credit risk Large exposure risk-weighted assets for equity holdings Risk-weighted assets for market risk Risk-weighted assets for operational risk Total risk-weighted assets
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
1,667,940 649,219 334,865 785,935 2,571,322 1,560,435 1,006 7,570,722
129,844 117,203 392,968 1,928,491 1,560,435 1,509 4,130,450 119,661 333,253 4,583,364
Disclosure on Off Balance and Counterparty Credit Risk Unaudited Unaudited 30 September 2016 31 December 2015 Credit Risk Credit Principal equivalent weighted Principal equivalent amount amount amount amount amount RM'000 RM'000 RM'000 RM'000 RM'000
Risk weighted amount RM'000
326,999 8,684
163,500 1,737
127,647 1,599
318,178 39,897
159,089 7,979
125,117 7,173
28,896
-
-
4,292
-
-
5,304
136
136
12,449
1,427
1,427
163,853
83,744
80,888
278,389
141,282
129,655
1,427,484 9,089 1,970,309
283,679 1,818 534,614
284,133 1,363 495,766
651,076 10,439 1,314,720
128,127 2,088 439,992
128,622 1,565 393,559
37
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION
The Group Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial period Other comprehensive income Total comprehensive income for the financial period
Unaudited 30 September 2016 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
127,801
124,358
26,647
278,806
71,619
28,466
22,440
122,526 (124,754) (2,228) (14) (2,242) (2,242)
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 and amortisation Unallocated depreciation and amortisation
1,886,040
320,405
3,509,648
5,716,093 1,697,639 7,413,732
5,412,794
934,319
-
6,347,113 336,370 6,683,483
761
28
141
930 10,052 10,982
3,559
260
525
4,344 8,044 12,388
Other non-cash (income)/expenses
(1,223)
38
-
3,889
2,667
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION (Continued) The Bank Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial period Other comprehensive income Total comprehensive income for the financial period
Unaudited 30 September 2016 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
127,606
124,358
26,648
278,612
71,423
28,466
22,441
122,331 (124,629) (2,298) (2,298) (2,298)
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 and amortisation Unallocated depreciation and amortisation
1,886,041
320,405
3,509,644
5,716,090 1,697,576 7,413,666
5,412,795
934,318
-
6,347,113 336,362 6,683,475
761
28
141
930 10,052 10,982
3,559
260
525
4,344 8,044 12,388
Other non-cash (income)/expenses
(1,223)
39
-
3,889
2,667
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION (Continued) The Bank Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial year Other comprehensive income Total comprehensive income for the financial year
Audited 31 December 2015 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
175,988
166,693
42,593
385,275
102,062
41,719
37,808
181,590 (159,237) 22,353 (10,594) 11,759 11,759
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 and amortisation Unallocated depreciation and amortisation
1,914,314
303,175
3,390,963
5,608,452 1,706,940 7,315,392
2,031,532
4,187,153
-
6,218,685 364,217 6,582,902
3,416
(31)
622
4,008 10,761 14,768
8,085
275
963
9,323 11,560 20,883
Other non-cash (income)/expenses
(1,113)
40
-
4,786
3,673
AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD. (Incorporated in Malaysia) Company No. 719057-X EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND GUIDELINES ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA 25. SEGMENTAL INFORMATION (Continued) The Bank Retail banking RM'000 Total revenue Result Segment result Unallocated corporate expenses Profit before zakat and taxation Zakat and taxation Net profit for the financial year Other comprehensive income Total comprehensive income for the financial year
Audited 31 December 2015 Treasury & Corporate money investment market banking RM'000 RM'000
Total RM'000
175,988
166,693
42,593
385,275
102,062
41,719
37,808
181,590 (159,237) 22,353 (10,594) 11,759 11,759
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 and amortisation Unallocated depreciation and amortisation
1,914,314
303,175
3,390,963
5,608,452 1,706,940 7,315,392
2,031,532
4,187,153
-
6,218,685 364,217 6,582,902
3,416
(31)
622
4,008 10,761 14,768
8,085
275
963
9,323 11,560 20,883
Other non-cash (income)/expenses
(1,113)
41
-
4,786
3,673
AL RAJHI BANKING AND 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 2016 AGAINST THE CORRESPONDING FINANCIAL QUARTER OF THE PRECEDING YEAR
For the financial period ended 30 September 2016, the Group and Bank recorded a net loss of RM2.24 million and RM2.30 million respectively as compared to a net profit of RM12.7 million in the preceding year’s corresponding period.
27. PROSPECTS FOR 2016 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.
42
