INTERIM FINANCIAL STATEMENTS FOR THE · PDF fileStatutory deposit with Bank Negara Malaysia 259,629 263,529 ... Transfer from statutory reserve ... requirement to maintain a reserve

AL RAJHI BANKING AND INVESTMENT CORPORATION (MALAYSIA) BHD.

(Incorporated in Malaysia)

Company No. 719057-X

Registered Office

Ground Floor, East Block

Wisma Selangor Dredging

142-B Jalan Ampang

50450 Kuala Lumpur

FOR THE FINANCIAL QUARTER ENDEDINTERIM FINANCIAL STATEMENTS

30 SEPTEMBER 2017




Unaudited Audited Unaudited Audited

Note 30 September 31 December 30 September 31 December

2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

ASSETS

Cash and short-term funds 333,662 120,213 333,662 120,213 Deposits and placements with banks and other

financial institutions 9 397,143 302,977 397,143 302,977 Securities held-for-trading 10 6,051 5,701 6,051 5,701 Securities held-to-maturity 11 1,450,159 1,468,980 1,450,159 1,468,980 Financing and advances 12 6,818,048 6,002,416 6,818,048 6,002,416 Other assets 25,674 27,902 25,624 27,849 Statutory deposit with Bank Negara Malaysia 259,629 263,529 259,629 263,529 Investment in subsidiary - - - -*Investment properties 105,000 105,000 105,000 105,000 Property and equipment 16,475 14,604 16,475 14,604 Intangible assets 27,761 27,775 27,761 27,775 Deferred tax assets 62,087 62,087 62,087 62,087 Total Assets 9,501,689 8,401,184 9,501,639 8,401,131

(2.00) (3)

LIABILITIES AND SHAREHOLDER'S

EQUITY

Liabilities

Deposits from customers 13 7,146,679 6,158,390 7,146,679 6,158,390

Deposits and placements of banks and other

financial institutions 14 1,148,058 1,120,611 1,148,058 1,120,611

Bills and acceptances payable 3,235 1,067 3,235 1,067

Other liabilities 64,025 82,869 64,027 82,869

Subordinated Sukuk 394,022 299,003 394,022 299,003

Total Liabilities 8,756,019 7,661,940 8,756,021 7,661,9401.00

Shareholder's equity

Share capital 1,000,000 1,000,000 1,000,000 1,000,000

Reserves (254,330) (260,756) (254,382) (260,809)

Total Shareholder's Equity 745,670 739,244 745,618 739,191

Total Liabilities and Shareholder's Equity 9,501,689 8,401,184 9,501,639 8,401,131

COMMITMENTS AND CONTINGENCIES 21 3,666,760 3,196,692 3,666,760 3,196,692

CAPITAL ADEQUACY 23

CET 1 / Core capital ratio 9.716% 11.245% 9.715% 11.245%Risk-weighted capital ratio 16.217% 17.363% 16.216% 17.362%

* The amount is significantly below the rounding threshold.

Bank for the year ended 31 December 2016.

INTERIM FINANCIAL STATEMENTS

UNAUDITED STATEMENTS OF FINANCIAL POSITION

AS AT 30 SEPTEMBER 2017

Group Bank

The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the

1




30 September 30 September 30 September 30 September

2017 2016 2017 2016

Group Note RM'000 RM'000 RM'000 RM'000

Revenue 115,451 91,059 338,019 278,806

Income derived from investment of

depositors' funds and others 15 107,843 82,867 314,764 254,258


shareholder's funds 16 7,608 8,192 23,255 24,548

Allowance for impairment on financing 17 (1,622) (2,002) (1,053) (2,667)

Other expenses directly attributable to the

investment of the depositors' funds - 4 - -

Total distributable income 113,829 89,061 336,966 276,139

Income attributable to depositors 18 (66,651) (50,442) (193,498) (153,614)

Total Net Income 47,178 38,619 143,468 122,525

Personnel expenses (30,345) (25,919) (91,125) (71,470)

Other overheads and expenditures (10,822) (10,027) (45,902) (53,283)

Profit before zakat and taxation 6,011 2,673 6,441 (2,228)

Zakat - - - -

Taxation - (14) (15) (14)

Net profit for the financial period, representing total comprehensive income for the financial period 6,011 2,659 6,426 (2,242)

(1) -


UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE 3RD QUARTER ENDED 30 SEPTEMBER 2017

3rd Quarter Ended Period Ended



2





2017 2016 2017 2016

Bank Note RM'000 RM'000 RM'000 RM'000

Revenue 115,371 91,021 337,818 278,612


depositors' funds and others 15 107,843 82,867 314,764 254,258


shareholder's funds 16 7,528 8,154 23,054 24,354

Allowance for impairment on financing 17 (1,622) (2,002) (1,053) (2,667)

Other expenses directly attributable to the

investment of the depositors' funds - 4 - -

Total distributable income 113,749 89,023 336,765 275,945

Income attributable to depositors 18 (66,651) (50,442) (193,498) (153,614)

Total Net Income 47,098 38,581 143,267 122,331

Personnel expenses (30,322) (25,926) (91,052) (71,435)

Other overheads and expenditures (10,781) (9,990) (45,788) (53,194)

Profit before zakat and taxation 5,995 2,665 6,427 (2,298)

Zakat - - - -

Taxation - - - -

Net profit for the financial period, representing total comprehensive income for the financial period 5,995 2,665 6,427 (2,298)




UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME



3




Share Statutory Accumulated

capital reserve losses Total

RM'000 RM'000 RM'000 RM'000

Group

At 1 January 2016 1,000,000 9,855 (277,365) 732,490

Total comprehensive income for the financial year - - 6,754 6,754

Transfer to statutory reserve - 3,351 (3,351) - At 31 December 2016 1,000,000 13,206 (273,962) 739,244

Group

At 1 January 2017 1,000,000 13,206 (273,962) 739,244

Total comprehensive profit for the financial period - - 6,426 6,426

Transfer from statutory reserve - (13,206) 13,206 - At 30 September 2017 1,000,000 - (254,330) 745,670

Bank

At 1 January 2016 1,000,000 9,855 (277,365) 732,490

Total comprehensive income for the financial period - - 6,701 6,701

Transfer to statutory reserve - 3,351 (3,351) -

At 31 December 2016 1,000,000 13,206 (274,015) 739,191

Bank

At 1 January 2017 1,000,000 13,206 (274,015) 739,191

Total comprehensive loss for the financial period - - 6,427 6,427

Transfer from statutory reserve - (13,206) 13,206 -

At 30 September 2017 1,000,000 - (254,382) 745,618


UNAUDITED STATEMENTS OF CHANGES IN EQUITY


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 2016.

4





2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

CASH FLOWS FROM OPERATING ACTIVITIES

Profit / (Loss) before zakat and taxation 6,441 (2,228) 6,427 (2,298)

Adjustments for:

Depreciation of property and equipment 3,668 3,824 3,668 3,824

Amortisation of intangible assets 8,596 8,564 8,596 8,564

Net gain on disposal of property,plant & equipment - 41 - 41

Allowance for impairment on financing 5,745 7,141 5,745 7,141

Bad debts on financing - Written off 1,353 1,302 1,353 1,302

Bad debts on financing - Recovered (6,045) (5,777) (6,045) (5,777)

Allowance for doubtful debt - - - -

Unrealised loss on revaluation of

securities held-for-trading / investment properties (614) (31) (614) (31)

Unrealised (gain)/loss from foreign

exchange translations (3,623) 10,759 (3,623) 10,759

Operating cashflow before workings capital changes 15,521 23,596 15,507 23,525

(Increase) / decrease in Operating Assets

Deposits and placements with banks and

other financial institutions (192,808) (3,106) (192,808) (3,106)

Hedging financial instruments (264) 1,017 (264) 1,017

Financing and advances (816,685) (100,842) (816,685) (100,842)

Other assets 2,230 537 2,227 604

Statutory deposit with Bank Negara Malaysia 3,900 (4,440) 3,900 (4,440)

(Decrease) / increase in Operating Liabilities

Deposits from customers 988,289 302,168 988,289 302,168

Deposits and placements of banks and

other financial institutions 122,466 (184,316) 122,466 (184,316)

Hedging financial instruments - - - -

Bills and acceptances payable 2,168 (15,509) 2,168 (15,509)

Other liabilities (11,087) (6,502) (11,070) (6,498)

Net cash (used in)/generated from operating activities 113,730 12,603 113,730 12,603


UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS


Group Bank

5





2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property and equipment (5,539) (6,647) (5,539) (6,647)

Purchase of intangible asset (8,582) (7,208) (8,582) (7,208)

Proceeds from sale of fixed assets - - - -

Securities held-to-maturity 18,821 15,105 18,821 15,105

Net cash used in investing activities 4,700 1,250 4,700 1,250

CASH FLOWS FROM FINANCING ACTIVITY

Issuance of Subordinated Sukuk 95,019 - 95,019 -

Net cash generated from financing activities 95,019 - 95,019 -

NET DECREASE IN CASH AND

SHORT-TERM FUNDS 213,449 13,853 213,449 13,853

Cash and short-term funds as at 1 January 120,213 127,806 120,213 127,806

CASH AND SHORT-TERM FUNDS 333,662 141,659 333,662 141,659

(1)

for the year ended 31 December 2016.

The Interim Financial Statements should be read in conjuction with the audited financial statements of the Group and the Bank

UNAUDITED CONDENSED STATEMENTS OF CASH FLOWS


Bank


Group

6




1. BASIS OF PREPARATION

2. ACCOUNTING POLICIES

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)

Effective date to be announced:

BNM's Revised Policy Document on Capital Funds for Islamic Banks

EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134")

AND POLICY DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS

ISSUED BY BANK NEGARA MALAYSIA

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) 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 2016. 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 and of the Bank since the year ended 31 December 2016.

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 2016:

Amendments to MFRS 10 and MFRS 128 Sale or Contribution of Assets between an Investor and its Associate or Joint

Venture

On 3 May 2017, BNM issued the revised policy document on Capital Funds for Islamic Banks whereby the previous

requirement to maintain a reserve fund is no longer required given the implementation of the Capital Conservation Buffer

under the Capital Adequacy Framework. Therefore, statutory reserves which were previously maintained by the Bank and

its domestic banking subsidiary companies are no longer required. During the period, the Group and the Bank had

transferred RM13,206,000 from statutory reserves to retained profits.

7




EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134")

ISSUED BY BANK NEGARA MALAYSIA (CONTINUED)

3. AUDITORS’ REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS

4. COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS

5. UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE

6. CHANGES IN ESTIMATE

7. DEBT AND EQUITY SECURITIES

8. DIVIDENDS PAID

There were no dividends paid during the 3rd Quarter ended 30 September 2017.

There were no issuances, cancellation, repurchases, resale or repayments of debt and equity securities in the 3rd Quarter

ended 30 September 2017.

The auditors’ report on the audited annual financial statements for the financial year ended 31 December 2016 was not

qualified.

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 2017.

There were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group and the Bank in

the 3rd Quarter ended 30 September 2017.

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 2017.

AND POLICY DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS

8




EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT

ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA

9. DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS

Unaudited Audited

30 September 31 December

2017 2016

RM'000 RM'000

Foreign financial institutions 397,143 302,977

10. SECURITIES HELD-FOR-TRADING

Unaudited Audited


2017 2016

RM'000 RM'000

At fair value

Quoted securities:

Unit Trust 6,051 5,701

- -

11. SECURITIES HELD-TO-MATURITY

Unaudited Audited


2017 2016

RM'000 RM'000

At amortised cost

Unquoted :

Islamic government securities in Malaysia 1,404,063 1,418,182

Islamic private debt securities in Malaysia 46,096 50,798

1,450,159 1,468,980

- -

Group and Bank

Group and Bank

Group and Bank

9






12. FINANCING AND ADVANCES

(a) Financing and advances analysed by types and Shariah contracts are as follows:

Unaudited

30 September

2017

Group and Bank Bai’ Total net

Bithaman financing and

Ajil Qard advances

RM'000 RM'000 RM'000

At amortised cost

Term Financing:

Corporate financing 5,061,038 - 5,061,038

Personal financing 596,003 - 596,003

Home financing 1,081,931 - 1,081,931

SME financing 37,637 - 37,637

Vehicle financing 80,904 - 80,904

Shop-house financing 33,261 - 33,261

Charge cards - 1,481 1,481

Gross financing and advances 6,890,774 1,481 6,892,255

Less: Impairment allowance

- Collective assessment (73,114)

- Individual assessment (1,093)

Total net financing and advances 6,818,048

-

Audited

31 December

2016

Bai’ Total netBithaman financing and

Ajil Qard advancesRM'000 RM'000 RM'000

At amortised cost

Term Financing:

Corporate financing 4,167,933 - 4,167,933

Personal financing 621,298 - 621,298

Home financing 1,141,875 - 1,141,875

SME financing 42,914 - 42,914

Vehicle financing 79,320 - 79,320

Shop-house financing 36,456 - 36,456

Charge cards - 1,706 1,706

Gross financing and advances 6,089,796 1,706 6,091,502

Less: Impairment allowance

- Collective assessment (81,797)

- Individual assessment (7,289) Total net financing and advances 6,002,416

-

10






12. FINANCING AND ADVANCES (Continued)

(b) Financing and advances analysed by type of customers are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Domestic non-bank financial institutions 152,996 256,876 Domestic business enterprise 3,420,098 2,432,984 Individuals 1,771,129 1,859,987 Foreign entities 1,548,032 1,541,655

6,892,255 6,091,502 - -

(c) Financing and advances analysed by profit rate sensitivity are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Fixed rate:

Corporate financing 3,536,617 2,658,694

Personal financing 596,003 621,298

SME financing 37,653 42,914

Home financing 9,087 10,574

Vehicle financing 80,904 79,320

Charge card 1,481 1,706

Shop-house financing 780 866

Variable rate:

Home financing 1,072,844 1,131,301

Shop-house financing 32,481 35,590

Corporate financing 1,524,405 1,509,239

6,892,255 6,091,502

- - (d) Financing and advances analysed by maturity structure are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Due within three months 2,922,221 977,595

More than three months to one year 803,084 567,742

More than one year to five years 657,873 2,302,831

More than five years 2,509,077 2,243,334

6,892,255 6,091,502 - -

(e) Financing and advances analysed by geographical distribution are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Malaysia 5,321,510 4,533,386

Saudi Arabia 1,524,405 1,509,239

Other Countries 46,340 48,877

6,892,255 6,091,502

- -

Group and Bank

Group and Bank

Group and Bank

Group and Bank

11







(f) Financing and advances analysed by economic purpose are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Working capital 3,041,074 2,299,470

Purchase of securities 1,524,405 1,509,239

Purchase of property - residential property 1,153,021 1,220,023

Personal use 596,220 621,753

Purchase of commercial complex 176,318 160,286

Purchase of industrial buildings and factories 148,943 39,819

Purchase of vehicles 80,746 79,173

Others 108,497 86,567

Construction 39,416 48,427

Purchase of shop-house 22,134 25,039

Charge card 1,481 1,706

6,892,255 6,091,502

- -

(g) Financing and advances analysed by sectors are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Household 1,792,583 1,881,700

Telecommunication 1,524,405 1,509,239

Real estate, renting and business activities 900,068 846,681

Wholesale & Retail trade 989,776 587,642

Manufacturing 874,663 606,898

Construction 538,183 353,687

Finance intermediation 153,000 264,395

Transportation 33,461 15,067

Agriculture, hunting and related service activities 46,157 1,931

Hotel & restaurant 20,019 20,063

Other business 19,940 2,826

- 1,309

Forestry, logging and related services activities - 64

6,892,255 6,091,502

-

(h) Movements in impaired financing and advances

Unaudited Audited


2017 2016

RM'000 RM'000

At 1 January 43,144 31,038 Impaired during the financial period / year 26,185 59,075 Reclassified as non impaired (19,756) (4,332) Recoveries (22,742) (30,811) Write-off (3,301) (11,826)

23,530 43,144

-

0.33% 0.59%

Group and Bank

Group and Bank

Included in amount classified as impaired during the financial period is profit accrued on impaired financing of RM836,599 (2016:

RM1,798,484).

Group and Bank

Fishing, Operation of Fish Hatcheries, Fish Farms

Ratio of net impaired financing and advances to gross

financing and advances less individual impairment

12







(i) Movements in the allowances for impaired financing and advances

Unaudited Audited


2017 2016

RM'000 RM'000

Collective assessment allowance

At 1 January 81,797 87,732

Allowance made during the period / year (Note 18 (b)) 5,032 5,456

Amount recovered during the financial year (4) -

Amount written off (13,711) (11,391)

Closing balance 73,114 81,797

- -

1.06% 1.34%

Individual assessment allowance

At 1 January 7,289 7,461

Allowance made during the financial year (Note 18(a)) 1,077 379

Amount recovered during the financial year (Note 18(a)) (364) (540)

Amount written off (6,909) (11)

Closing balance 1,093 7,289

- -

(j) Impaired financing analysed by geographical distribution are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Malaysia 23,530 43,144

23,530 43,144

- -

(k) Impaired financing analysed by economic purpose are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Working capital 10,500 17,281

Personal use 6,160 10,986

Purchase of properties - residential 6,078 9,662

Purchase of shophouse - 3,444

Purchase of transport vehicles 611 1,561

Charge card 181 210

23,530 14,877

- -

(l) Impaired financing analysed by sector are as follows:

Unaudited Audited


2017 2016

RM'000 RM'000

Household 13,031 25,663

Manufacturing 10,483 17,449

Other business - 16

Financial Intermediation 16 16

23,530 43,144

-

Group and Bank

Group and Bank

Group and Bank

Group and Bank

As % of total gross financing and advances less

individual impairment allowances

13






13. DEPOSITS FROM CUSTOMERS

(a) By type of deposit

Unaudited Audited


2017 2016

RM'000 RM'000Savings deposits

Qard 202,138 237,798

Demand deposits

Qard 772,376 559,282

Mudarabah 119,035 123,344

Term deposit

Commodity Murabahah 6,009,807 5,176,519

General investment account

Mudarabah 10,460 14,682

Wakalah 31,442 33,531

Other deposits 1,421 13,234

7,146,679 6,158,390

- -

(b) By type of customer

Unaudited Audited


2017 2016

RM'000 RM'000

Business enterprises 1,601,181 1,750,109Government and statutory bodies 1,174,524 609,898Individuals 376,132 377,402Others 3,994,842 3,420,981

7,146,679 6,158,390- -

(c) By maturity structure

Unaudited Audited


2017 2016

RM'000 RM'000

Due within three months 4,123,796 3,957,463More than three months to one year 2,743,707 2,132,316More than one year to five years 279,176 68,611

7,146,679 6,158,390

- -

14. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS

Unaudited Audited


2017 2016

RM'000 RM'000

Non-Mudharabah Funds

Licensed Islamic banks 808,145 662,425Licensed financial institutions 339,913 458,186

1,148,058 1,120,611- -

Group and Bank

Group and Bank

Group and Bank

Group and Bank

14






15. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

Income derived from investment of:

(i) General investment deposits 124 225 541 850

(ii) Other deposits 107,719 82,643 314,223 253,409

107,843 82,867 314,764 254,258

- - -

(i) Income derived from investment of general investment deposits


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

Finance income and hibah

Financing and advances 121 219 525 826

Money at call and deposit with

financial institutions 3 6 16 24 Total finance income and hibah 124 225 541 850

- - -

(ii) Income derived from investment of other deposits


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000


Financing and advances 90,779 66,372 263,377 204,511



financial institutions 2,237 1,483 7,145 4,800

Accretion of discount 1 1 3 3

107,719 82,643 314,223 253,409

- - - -

Period Ended

Group


Group

Group

Group

Group


Group

3rd Quarter Ended

15






15. INCOME DERIVED FROM INVESTMENT OF DEPOSITORS' FUNDS AND OTHERS (Continued)


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

Income derived from investment of:

(i) General investment deposits 124 225 541 850

(ii) Other deposits 107,719 82,642 314,223 253,408

107,843 82,867 314,764 254,258

0.00 -

(i) Income derived from investment of general investment deposits


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000


Financing and advances 121 219 524 826


financial institutions 3 6 17 24 Total finance income and hibah 124 225 541 850

- - -

(ii) Income derived from investment of other deposits


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000


Financing and advances 90,779 66,372 263,377 204,511



financial institutions 2,237 1,482 7,145 4,799

Accretion of discount 1 1 3 3

107,719 82,642 314,223 253,408

- - - -

Bank

Bank Bank

Bank



Bank Bank


16






- - 16. INCOME DERIVED FROM INVESTMENT OF SHAREHOLDERS' FUNDS


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000


Money at call and deposit

with financial institutions 404 403 1,352 1,215

Total finance income and hibah 404 403 1,352 1,215

Other operating income

- Net gain from foreign exchange translations

- Realised 155 (8,847) 2,729 (3,902)

- Unrealised 2,197 10,938 3,623 10,759

- Rental income 433 1,140 1,591 3,420

- Realised gain on gold 217 441 1,042 1,633

- Unrealised loss on revaluation

of securities held-for-trading - 25 614 31

- Others 92 85 279 266

Other income

- Service charges 1,169 1,761 3,702 4,962

- Commission received 2,941 2,246 8,323 6,165

7,608 8,192 23,255 24,548- - -


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000


Money at call and deposit

with financial institutions 404 403 1,352 1,215

Total finance income and hibah 404 403 1,352 1,215

Other operating income

- Net gain from foreign exchange translations

- Realised 155 (8,847) 2,729 (3,902)

- Unrealised 2,197 10,938 3,623 10,759

- Rental income 433 1,140 1,591 3,420

- Realised gain on gold 217 441 1,042 1,633

- Unrealised loss on revaluation

of securities held-for-trading - 183 614 31

- Others 94 85 280 266

Other income

- Service charges 1,087 1,565 3,500 4,767

- Commission received 2,941 2,246 8,323 6,165

7,528 8,154 23,054 24,354- - -

Group

3rd Quarter Ended

Bank

Period Ended

Group

Bank


17






17. ALLOWANCE FOR IMPAIRMENT ON FINANCING


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

Impaired financing and advances:

(a) Individual assessment allowance

- provided during the financial period (23) 36 1,077 862

- written back - (26) (364) (551)

(b) Collective assessment allowance

- (write-back) / provided during financial period 3,079 3,074 5,032 6,830

3,056 3,084 5,745 7,141

(c) Bad debts on financing

- recovered (1,917) (1,901) (6,045) (5,777)

- written off 483 819 1,353 1,303

1,622 2,002 1,053 2,667

- -

18. INCOME ATTRIBUTABLE TO DEPOSITORS


2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

Deposits from customers

- Non-Mudharabah 38,144 25,589 117,872 86,818

- Mudharabah 420 463 1,284 1,500

- Wakalah 249 275 751 3,255

38,813 26,327 119,907 91,573

Deposits and placements of banks

and other financial institutions

- Non-Mudharabah 27,838 24,115 73,591 62,041

66,651 50,442 193,498 153,614

- - -

19. SUBSEQUENT EVENTS

20. CHANGES IN THE COMPOSITION OF THE GROUP

There were no changes in the composition of the Group since the last audited financial statements as at 31 December 2016.

Group and Bank

3rd Quarter Ended

Group and Bank


Group and Bank

Group and Bank

Period Ended

There were no material events subsequent to the end of the reporting date that require disclosure or adjustments to the unaudited interim

financial statements.

18






21. COMMITMENTS AND CONTINGENCIES

Credit Risk Credit Risk

Principal equivalent weighted Principal equivalent weighted

amount amount amount amount amount amount

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Group and Bank

Transaction-related contingent items 235,965 117,983 93,362 321,721 160,861 124,576

Trade-related contingencies 2,369 474 474 16,291 3,258 3,032

Irrevocable commitments to extend credit:

- Maturity not exceeding one year 3,155,655 631,131 597,476 2,541,065 508,213 508,213

- Maturity exceeding one year 272,771 133,819 131,747 299,675 147,164 144,852

Foreign exchange-related contracts - - - 17,940 - -

3,666,760 883,407 823,059 3,196,692 819,496 780,673

The commitments and contingencies and the related risk-weighted exposures of the Group as are as follows:

The Credit Equivalent and Risk Weighted for the Bank are computed in accordance with BNM's Capital Adequacy Framework for Islamic

Banks (CAFIB): Standardised Approach for Credit and Market Risk, and Basic Indicator Approach for Operational Risk (Basel II) respectively.

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.

Unaudited Audited30 September 2017 31 December 2016

19






22. FINANCIAL RISK MANAGEMENT

Market Risk - Profit Rate Risk

Group Average

Up to 1 > 1 -3 > 3 - 12 1 - 5 Non-profit Trading effective

Unaudited month months months years > 5 years sensitive book Total profit rate

30 September 2017 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %

Assets

Cash and short term funds 245,864 - - - - 87,798 - 333,662 0.31

Hedging financial instruments - - - - - - - - -

- - 394,022 - - 3,121 - 397,143 2.18

Securities held-for-trading - - - - - - 6,051 6,051 -

Securities held-to-maturity - - 4,000 840,570 600,000 5,589 - 1,450,159 3.98

Financing and advances

- performing 1,651,683 2,344,227 797,788 635,029 1,395,917 44,080 - 6,868,724

- Non performing(1)

- - - - - (50,676) - (50,676)

Other assets(2)

- - - - - 496,626 - 496,626Total assets 1,897,547 2,344,227 1,195,810 1,475,599 1,995,917 586,538 6,051 9,501,689

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

Deposit and placement with other

FI / Institutions

5.37

20






22. FINANCIAL RISK MANAGEMENT (Continued)

Market Risk - Profit Rate Risk (continued)

Group (Continued) Average


Unaudited (Continued) month months months years > 5 years sensitive book Total profit rate

30 September 2017 (Continued) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %

Liabilities

Deposits from customers 1,282,043 1,764,406 2,725,162 279,176 - 1,095,892 - 7,146,679 2.50


and other financial institutions 463,520 625,000 50,000 - - 9,538 - 1,148,058 3.53


Bills and acceptance payable - - - - - 3,235 - 3,235 -

Other liabilities - - - - - 64,025 - 64,025 -

Subrodinated Sukuk - - 394,022 - - - - 394,022

Total liabilities 1,745,563 2,389,406 3,169,184 279,176 - 1,172,690 - 8,756,019

Shareholders' fund - - - - - 745,670 - 745,670

Total liabilities and

shareholders' fund 1,745,563 2,389,406 3,169,184 279,176 - 1,918,356 - 9,501,689

-

On-balance sheet profit

sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 (1,331,818) 6,051

Off-balance sheet profit

sensitivity gap - - - - - 3,666,760 -

Total profit

sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 2,334,942 6,051

Note:(1)

(2)Other assets include property and equipment, deferred tax assets and statutory deposits with Bank Negara Malaysia.

This is arrived at after deducting the collective and individual impairment allowance from the outstanding gross non performing financing.

21










Audited month months months years > 5 years sensitive book Total profit rate

31 December 2016 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %

Assets



- 59,801 239,202 - - 3,974 - 302,977 3.11



Financing and advances -

- performing 1,571,052 540,884 2,072,909 768,612 1,066,460 28,441 - 6,048,358

- Non performing(1)

- - - - - (45,942) - (45,942)

Other assets(2)

- - - - - 500,897 - 500,897 Total assets 1,596,768 600,685 2,316,111 1,613,182 1,666,460 602,277 5,701 8,401,184


FI / Institutions

Non-trading book

5.53

22










Audited (Continued) month months months years > 5 years sensitive book Total profit rate

31 December 2016 (Continued) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %

Liabilities

Deposits from customers 1,263,051 1,915,648 2,118,953 68,611 - 792,127 - 6,158,390 3.28



Hedging financial instruments - - - - - - - -

Bills and acceptance payable - - - - - 1,067 - 1,067

Other liabilities - - - - - 82,869 - 82,869

Subrodinated Sukuk - 59,801 239,202 - - - - 299,003

Total liabilities 1,693,051 2,525,449 2,493,155 68,611 - 881,674 - 7,661,940





sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 (1,018,641) 5,701


sensitivity gap - - - - - 3,196,692 -

Total profit

sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 2,178,051 5,701

Note:(1)



23






22. FINANCIAL RISK MANAGEMENT (Continued)FINANCIAL RISK MANAGEMENT (Continued)


Bank Average


Unaudited month months months years > 5 years sensitive book Total profit rate


Assets



- - 394,022 - - 3,121 - 397,143 2.18

Securities held-for-trading - - - - - - 6,051 6,051


Financing and advances

- performing 1,651,683 2,344,227 797,788 635,029 1,395,917 44,080 - 6,868,724

- Non performing(1)

- - - - - (50,676) - (50,676)

Other assets(2)

- - - - - 496,576 - 496,576 Total assets 1,897,547 2,344,227 1,195,810 1,475,599 1,995,917 586,488 6,051 9,501,639

-

Non-trading book


FI / Institutions

5.37

24








Bank (Continued) Average


Unaudited (Continued) month months months years > 5 years sensitive book Total profit rate


Liabilities

Deposits from customers 1,282,043 1,764,406 2,725,162 279,176 - 1,095,892 - 7,146,679 2.50




Bills and acceptance payable - - - - - 3,235 - 3,235 -

Other liabilities - - - - - 64,027 - 64,027 -

Subrodinated Sukuk - - 394,022 - - - - 394,022

Total liabilities 1,745,563 2,389,406 3,169,184 279,176 - 1,172,692 - 8,756,021





sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 (1,331,822) 6,051


sensitivity gap - - - - - 3,666,760 -

Total profit

sensitivity gap 151,984 (45,179) (1,973,374) 1,196,423 1,995,917 2,334,938 6,051

Note:(1)



25








Bank Average


Audited month months months years > 5 years sensitive book Total profit rate

31 December 2016 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %

Assets



- 59,801 239,202 - - 3,974 - 302,977 3.11



Financing and advances - - - - - - - -

- performing 1,571,052 540,884 2,072,909 768,612 1,066,460 28,441 - 6,048,358

- Non performing(1)

- - - - - (45,942) - (45,942)

Other assets(2)

- - - - - 500,844 - 500,844 Total assets 1,596,768 600,685 2,316,111 1,613,182 1,666,460 602,224 5,701 8,401,131

Non-trading book


FI / Institutions

5.53

26








Bank (Continued) Average


Audited (Continued) month months months years > 5 years sensitive book Total profit rate

31 December 2016 (Continued) RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 %

Liabilities

Deposits from customers 1,263,051 1,915,648 2,118,953 68,611 - 792,127 - 6,158,390 3.28




Bills and acceptance payable - - - - - 1,067 - 1,067

Other liabilities - - - - - 82,869 - 82,869

Subrodinated Sukuk - 59,801 239,202 - - - - 299,003

Total liabilities 1,693,051 2,525,449 2,493,155 68,611 - 881,674 - 7,661,940





sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 (1,018,641) 5,701

Off-balance sheet profit -

sensitivity gap - - - - - 3,196,692 -

Total profit

sensitivity gap (96,283) (1,924,764) (177,044) 1,544,571 1,666,460 2,178,051 5,701

Note:(1)



27




23. CAPITAL ADEQUACY

a)


30 September 31 December 30 September 31 December

2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

CET 1/ Tier I capital

Paid-up share capital 1,000,000 1,000,000 1,000,000 1,000,000

Accumulated losses (254,330) (260,721) (254,382) (260,774)

745,670 739,279 745,618 739,226

Less: Deferred tax (62,087) (62,087) (62,087) (62,087)

Total Tier-I capital 683,583 677,192 683,531 677,139

Tier-II capital

63,345 69,384 63,345 69,384

394,022 299,003 394,022 299,003

Total Tier-II capital 457,367 368,387 457,367 368,387

Capital base 1,140,950 1,045,579 1,140,898 1,045,526

CET 1 / Core capital ratio 9.716% 11.246% 9.715% 11.245%

Risk-weighted capital ratio 16.217% 17.364% 16.216% 17.363%

(b) The breakdown of risk-weighted assets ("RWA") by each major risk category is as follows:


30 September 31 December 30 September 31 December

2017 2016 2017 2016

RM'000 RM'000 RM'000 RM'000

Credit risk 6,576,560 5,569,081 6,576,560 5,569,081

Market risk 123,548 122,785 123,548 122,785

Operational risk 335,492 329,719 335,492 329,719

7,035,600 6,021,585 7,035,600 6,021,585

EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY

DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA

Subordinated Sukuk

Group

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):

Bank

Bank

Group

Collective impairment for impairment loss on non-impaired

financing

28






23. CAPITAL ADEQUACY (Continued)

(b) The breakdown of risk-weighted assets ("RWA") by each major risk category is as follows (Continued):

Risk

Gross Net weighted Capital

exposures exposures assets requirements

Exposure Class RM'000 RM'000 RM'000 RM'000

Credit Risk

On-Balance Sheet Exposures

Sovereigns/Central

Banks 1,692,994 1,692,994 - -

Banks, Development

Financial Institutions

("DFIs") & MDBs 745,142 745,147 155,216 12,417

Corporate 5,148,681 5,051,138 4,510,353 360,828

Regulatory Retail 691,182 690,681 518,011 41,441

Residential Real Estate

(RRE) Financing 1,075,853 1,075,853 501,615 40,129

Other assets 97,950 97,951 67,428 5,394

Defaulted Exposures 12,673 12,358 16,790 1,343

Total for On-Balance

Sheet Exposures 9,464,475 9,366,122 5,769,413 461,552

Off-Balance Sheet Exposures

Off-balance sheet

exposures other than

OTC derivatives or

credit derivatives 833,857 833,852 807,147 64,572

Total for Off-Balance

Sheet Exposures 833,857 833,852 807,147 64,572

Total On and Off-Balance

Sheet Exposures 10,298,332 10,199,974 6,576,560 526,124

Large Exposures Risk

Requirement - - - -

Long Short

Market Risk position position

Foreign Currency

Risk 123,548 - 123,548 9,884

Operational Risk - - 335,492 26,839

Total RWA and Capital Requirements 7,035,600 562,847

Group and Bank

30 September 2017

29







(b)

Risk

Gross Net weighted Capital

exposures exposures assets requirements

Exposure Class RM'000 RM'000 RM'000 RM'000

Credit Risk

On-Balance Sheet Exposures

Sovereigns/Central

Banks 1,689,777 1,689,777 - -

Banks, Development

Financial Institutions

("DFIs") & MDBs 377,471 377,471 75,494 6,040

Corporate 4,208,664 4,182,474 3,560,104 284,808

Regulatory Retail 710,996 710,191 532,643 42,611

Residential Real Estate - - - -

(RRE) Financing 1,132,214 1,132,214 538,693 43,095

Other assets 84,473 84,474 50,798 4,064

Defaulted Exposures 21,873 21,873 30,676 2,454

Total for On-Balance

Sheet Exposures 8,225,468 8,198,474 4,788,408 383,072

Off-Balance Sheet Exposures

Off-balance sheet

exposures other than

OTC derivatives or

credit derivatives 819,633 819,496 780,673 62,454

Total for Off-Balance

Sheet Exposures 819,633 819,496 780,673 62,454

Total On and Off-Balance

Sheet Exposures 9,045,101 9,017,970 5,569,081 445,526

Large Exposures Risk

Requirement - - - -

Long Short

Market Risk position position

Foreign Currency

Risk 122,785 - 122,785 9,823

- - - -

Operational Risk - - 329,719 26,378

Total RWA and Capital Requirements 6,021,585 481,726

31 December 2016

The breakdown of risk-weighted assets ("RWA") by exposures in each major risk category for the current financial year are as

follows: (continued)

Group and Bank

30







(c) The breakdown of credit risk disclosed by risk-weights (including deducted exposures) are as follows:

Group and Bank

Unaudited

30 September 2017 Total

exposure Total

Sovereigns/ Banks, DFIs Regulatory Residential Equity Other after netting weighted

Risk weights Central Bank & MDBs Corporate Retail Real Estate exposures assets and CRM assets

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Performing

Exposures

0% 1,692,994 - - - - - 30,522 1,723,516 -

20% - 724,523 199,605 - - - - 924,128 184,826

35% - - - - 390,169 - - 390,169 136,559

50% - 20,624 - - 638,086 - - 658,710 329,355

75% - - 1,524,405 790,924 12,920 - - 2,328,249 1,746,187

100% - - 4,058,160 - 37,209 - 67,428 4,162,797 4,162,797

150% - - - - - - - - -

Total 1,692,994 745,147 5,782,170 790,924 1,078,384 - 97,950 10,187,569 6,559,724

Defaulted

Exposures

35% - - - - - - - - -

50% - - - 227 - - - 227 114

100% - - - - 3,086 - - 3,086 3,086

150% - - 9,092 - - - - 9,092 13,638

Total - - 9,092 227 3,086 - - 12,405 16,838

Total Performing

and Defaulted 1,692,994 745,147 5,791,262 791,151 1,081,470 - 97,950 10,199,974 6,576,561

Exposures after netting and credit risk mitigation ("CRM")

31







(c) The breakdown of credit risk disclosed by risk-weights (including deducted exposures) are as follows (Continued):

Group and Bank

Audited

31 December 2016 Total

exposure Total risk

Sovereigns/ Banks, DFIs Regulatory Residential Equity Other after netting weighted

Risk weights Central Bank & MDBs Corporate Retail Real Estate exposures assets and CRM assets

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Performing

Exposures

0% 1,689,777 - - - - - 33,676 1,723,453 -

20% - 378,420 230,419 - - - - 608,839 121,768

35% - - - - 375,980 - - 375,980 131,593

50% - - 121,451 - 690,113 - - 811,564 405,782

75% - - 1,509,239 855,228 23,529 - - 2,387,996 1,790,997

100% - - 2,987,656 - 49,812 - 50,798 3,088,266 3,088,265

150% - - - - - - - - -

Total 1,689,777 378,420 4,848,765 855,228 1,139,434 - 84,474 8,996,098 5,538,405

Defaulted

Exposures

35% - - - - - - - - -

50% - - - - - - - - -

100% - - - - 4,268 - - 4,268 4,268

150% - - 14,964 2,096 545 - - 17,605 26,408

Total - - 14,964 2,096 4,813 - - 21,873 30,676

Total Performing

and Defaulted 1,689,777 378,420 4,863,729 857,324 1,144,247 - 84,474 9,017,971 5,569,081

Exposures after netting and credit risk mitigation ("CRM")

32




EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134

(“MFRS 134”) AND POLICY DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC

BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA


(d) The breakdown of risk-weighted assets by risk-weights are as follows:

Principal Risk-weighted

RM'000 RM'000

0% 1,723,516 -

20% 924,128 184,826

35% 390,169 136,559

50% 658,937 329,469

75% 2,328,249 1,746,187

100% 4,165,883 4,165,883

150% 9,092 13,638

Risk-weighted assets for credit risk 10,199,974 6,576,561

Large exposure risk-weighted assets for equity holdings -

Risk-weighted assets for market risk 123,547

Risk-weighted assets for operational risk 335,492

Total risk-weighted assets 7,035,600

Principal Risk-weighted

RM'000 RM'000

0% 1,723,453 -

20% 608,839 121,768

35% 375,980 131,593

50% 811,564 405,782

75% 2,387,996 1,790,997

100% 3,092,534 3,092,534

150% 17,605 26,407

Risk-weighted assets for credit risk 9,017,971 5,569,081

Large exposure risk-weighted assets for equity holdings -

Risk-weighted assets for market risk 122,785

Risk-weighted assets for operational risk 329,719

Total risk-weighted assets 6,021,585

Group and Bank

Unaudited

30 September 2017

Audited

31 December 2016

Group and Bank

33




EXPLANATORY NOTES PERSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARDS 134 (“MFRS 134”) AND POLICY DOCUMENT ON

FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA MALAYSIA


(e) Disclosure on off balance sheet and counterparty credit risk are as follows:

Credit Risk Credit Risk

Principal equivalent weighted Principal equivalent weighted

amount amount amount amount amount amount

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Direct credit substitutes

Transaction-related contingent items 2,369 474 474 321,721 160,861 124,576

Short term self liquidating trade related contingencies - - - 16,291 3,258 3,032

Foreign exchange related contracts

- One year or less - - 17,940 - -

Other commitments, such as formal standby facilities and

credit lines, with an original maturity of over one year 3,155,655 629,420 596,193 290,763 147,164 144,852

Other commitments, such as formal standby facilities and

credit lines, with an original maturity up to one year 8,555 1,711 1,283 2,541,065 506,431 506,876

Unutilised credit card lines - - - 8,912 1,782 1,337

3,430,795 765,424 729,697 3,196,692 819,496 780,673

30 September 2017 31 December 2016

Group and Bank

Disclosure on Off Balance and Counterparty Credit Risk

Unaudited Audited

34




24. SEGMENTAL INFORMATION

Group

Retail Treasury & Corporate

banking money investment

market banking Total

RM'000 RM'000 RM'000 RM'000

Total revenue 93,037 160,895 84,087 338,019

Result

Segment result 57,153 26,288 61,530 144,971

Unallocated corporate

expenses (138,530)

Profit before zakat and taxation 6,441

Zakat and taxation (15)

Net profit for the financial period 6,426

Other information

Segment assets 1,774,310 562,769 5,471,405 7,808,484

Unallocated corporate assets 1,693,205

Total assets 9,501,689

Segment liabilities 7,146,678 1,148,059 - 8,294,737

Unallocated corporate liabilities 461,282

8,756,019

Other segment items

Capital expenditure 4,509 94 (2) 4,601

Unallocated capital expenditure 9,520

14,121

Depreciation and amortisation 2,805 233 277 3,315

Unallocated depreciation

and amortisation 8,949

12,264

Other non-cash

(income)/expenses (3,773) - 4,826 1,053



Unaudited

30 September 2017

35





DOCUMENT ON FINANCIAL REPORTING FOR LICENSED ISLAMIC BANKING INSTITUTIONS ISSUED BY BANK NEGARA 24. SEGMENTAL INFORMATION (Continued)

Group (Continued)




RM'000 RM'000 RM'000 RM'000

Total revenue 171,366 167,051 51,517 389,934

Result

Segment result 90,013 39,089 54,597 183,699


expenses (176,967)


Zakat and taxation 22

Net profit for the financial year 6,754

Other information

Segment assets 1,856,950 350,066 4,482,119 6,689,135





Total liabilities 7,661,940

Other segment items

Capital expenditure 1,855 28 141 2,024


20,538




16,691

Other non-cash

(income)/expenses 2,994 - (3,592) (598)

Audited

31 December 2016

36






24. SEGMENTAL INFORMATION (Continued)

Bank




RM'000 RM'000 RM'000 RM'000

Total revenue 92,836 160,895 84,087 337,818

Result

Segment result 56,952 26,288 61,530 144,770


expenses (138,343)


Zakat and taxation -

Net profit for the financial period 6,427

Other information

Segment assets 1,774,309 562,769 5,471,404 7,808,482






Other segment items

Capital expenditure 4,509 94 (2) 4,601


14,121




12,264

Other non-cash

(income)/expenses (3,773) - 4,826 1,053

Unaudited

30 September 2017

37






24. SEGMENTAL INFORMATION (Continued)

Bank (Continued)




RM'000 RM'000 RM'000 RM'000

Total revenue 171,118 167,051 51,518 389,687

Result

Segment result 89,765 39,087 54,598 183,450


expenses (176,785)


Zakat and taxation 36

Net profit for the financial year 6,701

Other information

Segment assets 1,856,950 350,066 4,482,120 6,689,136






Other segment items

Capital expenditure 1,855 28 141 2,024


20,538




16,691

Other non-cash

(income)/expenses 2,994 - (3,592) (598)

Audited

31 December 2016

38






25.

26. PROSPECTS FOR 2017

The Banking sector outlook is expected to remain challenging, reflected by the tougher operating environment and higher risk.

Credit growth is expected to slowdown with household debt risen strongly which would lead to an asset quality problem and a

rise in unemployment and interest rate.

Nevertheless the Bank is geared to face the challengers and to grow the business selectively and continue to strengthen its

governence.

For the financial period ended 30 September 2017, the Group and Bank recorded a pre tax profit of RM6.4 million as compared

to a pre tax loss of RM2.2 million in the preceding year’s corresponding period.

REVIEW OF PERFORMANCE FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2017 AGAINST THE

CORRESPONDING FINANCIAL QUARTER OF THE PRECEDING YEAR

39

Documents

INTERIM FINANCIAL STATEMENTS FOR THE · PDF fileStatutory deposit with Bank Negara Malaysia 259,629 263,529 ... Transfer from statutory reserve ... requirement to maintain a reserve