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35

Directors’ ReportFor The Year Ended 31 December 2009

Items Of An Unusual NatureThe results of the operations of the Group and of the Bank for

the financial year were not, in the opinion of the Directors,

substantially affected by any item, transaction or event of a

material and unusual nature.

There has not arisen in the interval between the end of the

financial year and the date of this report any item, transaction

or event of a material and unusual nature likely, in the opinion

of the Directors, to affect substantially the results of the

operations of the Group and of the Bank for the current

financial year in which this report is made.

Share CapitalThere were no changes in the issued and paid-up capital of the

Bank during the financial year.

Directors Of The BankDirectors who served since the date of the last report are:

Jonathan Christian Larsen

Sanjeev Nanavati

Tan Sri Dato’ Hj. Omar Bin Ibrahim

Dato’ Syed Sidi Idid Bin Syed Abdullah Idid

Dato’ Siow Kim Lun @ Siow Kim Lin

Piyush Gupta (resigned on 3 September 2009)

Directors’ Interests The interests in the shares and options of the Bank and of its related corporations of those who were Directors at year end as

recorded in the Register of Directors’ Shareholdings are as follows:

Number of ordinary shares of USD1 each

At At

1.1.2009 Bought Sold 31.12.2009

Shares in Citigroup Inc.

Sanjeev Nanavati 5,619 43,623 - 49,242

Jonathan Christian Larsen 93,926 180,185 - 274,111

Dato’ Siow Kim Lun @ Siow Kim Lin - 6,000 - 6,000

Number of ordinary shares of USD1 each

At At

1.1.2009 Granted Vested 1.12.2009

Capital Accumulation Program/

Supplementary CAP/SEA in Citigroup Inc.

Sanjeev Nanavati 16,384 15,411 (5,138) 26,657

Number of options over ordinary shares

of USD1 each

At At

1.1.2009 Granted Forfeited 31.12.2009

Stock Option Plan in Citigroup Inc.

Sanjeev Nanavati 10,113 62,977 (1,527) 71,563

Jonathan Christian Larsen 45,979 393,131 (14,000) 425,110

Other than as disclosed above, none of the Directors in office at the end of the financial year had any interest in shares and

options of the Bank and of its related corporations.

36

37

38

39

Cash and short term funds 3 10,713,979 12,384,425 10,713,959 12,384,405

Deposits and placements with

banks and other financial

institutions 4 1,328,452 2,655,452 1,328,452 2,655,452

Securities purchased under

resale agreements - 125,771 - 125,771

Securities held-for-trading 5 2,326,772 3,183,108 2,326,772 3,183,108

Securities available-for-sale 6 5,352,684 5,291,218 5,352,684 5,291,218

Securities held-to-maturity 7 7,499 7,499 7,499 7,499

Loans, advances and financing 8 18,497,072 19,848,830 18,497,072 19,848,830

Other assets 10 1,066,002 2,054,554 1,066,002 2,054,554

Statutory deposits with Bank

Negara Malaysia 11 5,200 508,292 5,200 508,292

Deferred tax assets 12 37,463 22,503 37,463 22,503

Investments in subsidiary

companies 13 - - 20 20

Property, plant and equipment 14 62,664 54,834 62,664 54,834

39,397,787 46,136,486 39,397,787 46,136,486

Deposits from customers 15 29,829,083 29,589,640 29,829,083 29,589,640

Deposits and placements of banks

and other financial institutions 16 3,694,910 9,602,856 3,694,910 9,602,856

Bills and acceptances payable 48,010 42,269 48,010 42,269

Other liabilities 17 2,150,482 3,146,546 2,150,482 3,146,546

Subordinated loan 18 400,000 400,000 400,000 400,000

36,122,485 42,781,311 36,122,485 42,781,311

19 121,697 121,697 121,697 121,697

20 3,153,605 3,233,478 3,153,605 3,233,478

3,275,302 3,355,175 3,275,302 3,355,175

39,397,787 46,136,486 39,397,787 46,136,486

36(e) 84,500,577 102,128,524 84,500,577 102,128,524

40

41

2(b) 2,320,317 2,901,805

22 1,706,197 2,167,803

23 (474,556) (949,778)

1,231,641 1,218,025

38(o) 58,611 45,210

24 555,509 688,792

1,845,761 1,952,027

25 (769,028) (782,121)

1,076,733 1,169,906

26 (181,059) (131,683)

895,674 1,038,223

27 (221,449) (265,823)

674,225 772,400

28 554 635

121,697 380,303 121,697 (2,773) 1,895,500 2,394,727 2,516,424

Net profit for the year - - - - 772,400 772,400 772,400

Unrealised net gain on revaluation

of securities available-for-sale - - - 66,351 - 66,351 66,351

At 31 December 2008/1 January 2009 121,697 380,303 121,697 63,578 2,667,900 3,233,478 3,355,175

Net profit for the year - - - - 674,225 674,225 674,225

Unrealised net loss on revaluation

of securities available-for-sale - - - (54,098) - (54,098) (54,098)

Dividend paid 29 - - - - (700,000) (700,000) (700,000)

At 31 December 2009 121,697 380,303 121,697 9,480 2,642,125 3,153,605 3,275,302

Note 19 Note 20

42

43

Cash flows from operating activities

Profit before taxation 895,674 1,038,223 895,674 1,038,223

Adjustments for:

Amortisation of premium less accretion

of discount of securities available-for-sale 6,871 (8,449) 6,871 (8,449)

Allowance for bad and doubtful debts

(net of write-back) 181,059 131,683 181,059 131,683

Reversal of profit equalisation reserve (1,002) (804) (1,002) (804)

Depreciation 32,468 27,044 32,468 27,044

Dividends from unquoted investment securities (25) (1,719) (25) (1,719)

Unrealised loss/(gain) from revaluation of

securities held-for-trading 17,492 (23,228) 17,492 (23,228)

Gain from disposal of securities available-for-sale (57,240) (19,255) (57,240) (19,255)

Loss on disposal of property, plant and equipment 277 227 277 227

Property, plant and equipment written off - 316 - 316

Operating profit before changes in operating assets 1,075,574 1,144,038 1,075,574 1,144,038

Changes in working capital:

Deposits and placements with banks

and other financial institutions 1,327,000 (1,060,276) 1,327,000 (1,060,276)

Securities purchased under resale agreements 125,771 319,698 125,771 319,698

Securities held-for-trading 838,844 (1,807,139) 838,844 (1,807,139)

Loans, advances and financing 1,170,699 523,700 1,170,699 523,700

Other assets 988,552 (820,232) 988,552 (820,232)

Statutory deposit with Bank Negara Malaysia 503,092 337,116 503,092 337,116

Deposits from customers 239,443 918,244 239,443 918,244

Deposits and placements of banks and

other financial institutions (5,907,946) (1,695,897) (5,907,946) (1,695,897)

44

Cash flows from operating activities (continued)

Changes in working capital: (continued)

Bills and acceptances payable 5,741 (54,785) 5,741 (54,785)

Recourse obligations on loans sold to Cagamas - (423,529) - (423,529)

Other liabilities (919,487) 709,777 (919,487) 709,777

Cash used in operating activities (552,717) (1,909,285) (552,717) (1,909,285)

Income taxes paid (292,774) (165,910) (292,774) (165,910)

Net cash used in operating activities (845,491) (2,075,195) (845,491) (2,075,195)

Cash flows from investing activities

Dividend from investment securities 25 1,719 25 1,719

Purchase of property, plant and equipment (43,381) (12,522) (43,381) (12,522)

Proceeds from disposal of property, plant

and equipment 2,806 2,328 2,806 2,328

Purchase of securities available-for-sale (6,723,143) (8,894,423) (6,723,143) (8,894,423)

Redemption of securities available-for-sale 260,000 1,422,810 260,000 1,422,810

Proceeds from disposal of securities

available-for-sale 6,378,738 5,195,426 6,378,738 5,195,426

Net cash used in investing activities (124,955) (2,284,662) (124,955) (2,284,662)

Cash flows from financing activity

Dividend paid to shareholders (700,000) - (700,000) -

Net cash used in financing activity (700,000) - (700,000) -

Net decrease in cash and cash equivalents (1,670,446) (4,359,857) (1,670,446) (4,359,857)

Cash and cash equivalents at 1 January 12,384,425 16,744,282 12,384,405 16,744,262

Cash and cash equivalents at 31 December

(Note 3) 10,713,979 12,384,425 10,713,959 12,384,405

45

46

47

48

49

50

51

52

Cash and balances with banks

and other financial institutions 52,423 92,684 52,403 92,664

Money at call and deposit

placements maturing within

one month 10,661,556 12,291,741 10,661,556 12,291,741

10,713,979 12,384,425 10,713,959 12,384,405

Licensed banks 1,328,452 2,655,452

Malaysian Government Treasury Bills 281,595 76,675

Malaysian Government Securities 1,164,350 1,435,639

Malaysian Government Investment Issues 215,473 3,050

Bank Negara Malaysia Bills/Notes 645,303 1,505,284

Cagamas notes/bonds - 1,008

Commercial papers - 2,025

Private debt securities 20,051 155,674

Khazanah bonds - 3,753

2,326,772 3,183,108

53

Malaysian Government Treasury Bills/

Securities** 4,358,871 3,449,613

Bank Negara Malaysia Bills - 793,572


Khazanah bonds 74,940 140,389

Private debt securities - 41,866

Yankee bonds/US bonds 371,157 179,618

Bonds issued by MDB/MFI* 50,802 50,617

5,352,684 5,291,218

7,499 7,499

54

Overdrafts 1,485,375 1,087,949

Term loans/financing

- housing loans/financing 9,779,054 10,821,082

- hire purchase receivables 13,255 17,187

- lease receivables 8,262 12,337

- other term loans/financing 1,485,128 1,436,360

Bills receivable 170,880 387,469

Trust receipts 11,585 26,841

Claims on customers under acceptance credits 624,449 710,154

Staff loans 96,164 101,094

Credit cards receivables 4,696,169 4,582,263

Revolving credit 626,413 1,047,071

Other loans 94,911 231,158

Share margin financing 169,573 140,695

19,261,218 20,601,660

Unearned interest and income (47,458) (65,458)

Gross loans, advances and financing 19,213,760 20,536,202


and financing

- General (283,115) (303,205)

- Specific (433,573) (384,167)

Net loans, advances and financing 18,497,072 19,848,830

Domestic non-financial institutions

- others 212,057 180,725

Domestic business enterprises

- small and medium enterprises 461,750 544,508

- others 1,932,623 2,327,833

Individuals 16,480,592 17,347,185

Foreign entities 126,738 135,951

19,213,760 20,536,202

55

Fixed rate

Housing loans/financing 900,595 464,114

Hire purchase receivables 8,792 17,187

Other fixed rate loans/financing 7,193,540 7,666,696

Variable rate

BLR plus 10,655,441 12,013,438

Cost plus 455,392 374,767

19,213,760 20,536,202

Primary agriculture 56,023 47,289

Mining and quarrying 4,176 12,327

Manufacturing (including agriculture based) 917,639 1,343,788

Electricity, gas and water 40,520 84,996

Construction 38,069 37,008

Wholesale, retail trade, restaurants and hotels 549,779 665,716

Transport, storage and communication 137,208 149,504

Finance, insurance, real estate and business services 632,422 577,807

Education, health and others 35,061 22,499

Household

- consumption credit 5,616,739 5,434,155

- residential 10,378,013 11,412,109

- purchase of securities 170,427 139,872

- others 315,413 361,049

Other sectors 322,271 248,083

19,213,760 20,536,202

Purchase of securities 170,427 140,695

Purchase of landed property 11,035,449 12,085,395

Purchase of fixed assets excluding

land and building 21,517 73,912

Personal use 964,088 895,248

Credit card 4,696,169 4,582,263


Working capital 2,300,056 2,699,553

Other purposes - 13,323

19,213,760 20,536,202

56

At 1 January 634,146 689,920

Classified as non-performing during the year 608,837 501,420

Reclassified as performing during the year (308,748) (232,064)

Amount recovered (80,348) (181,930)

Amount written off (184,068) (143,200)

At 31 December 669,819 634,146

Specific allowance (433,573) (384,167)

Net non-performing loans, advances and financing 236,246 249,979

Ratio of net non-performing loans and financing to

gross loans and financing less specific allowance 1.26% 1.24%

General allowance

At 1 January 303,205 314,312

Written back during the year (20,090) (11,107)

At 31 December 283,115 303,205

As % of gross loans, advances and financing

less specific allowance 1.5% 1.5%

Specific allowance

At 1 January 384,167 341,949

Allowance made during the year 296,150 248,190

Amount recovered (64,136) (66,009)

Amount written off (182,608) (139,963)

At 31 December 433,573 384,167

57

Primary agriculture - 11

Mining and quarrying 149 174

Manufacturing (including agriculture based) 44,236 43,582


Wholesale, retail trade, restaurants and hotels 22,610 21,327

Transport, storage and communication 750 1,111

Finance, insurance, real estate and business services 27,610 28,362

Household

- consumption credit 245,852 210,492

- residential 267,683 265,771

- purchase of securities 21,035 21,545

- others 25,111 26,229

669,819 634,146

Interest/Income receivable 73,128 99,924

Other debtors, deposits and prepayments 217,472 246,312

Derivative assets (Note 32) 775,402 1,708,318

1,066,002 2,054,554

58

Property, plant

and equipment -

capital allowances (7,485) (1,128) - (8,613) 74 - (8,539)

Provisions 54,793 (1,318) - 53,475 (4,324) - 49,151

Reserves - Available

-for-sale securities 1,026 - (23,385) (22,359) - 19,210 (3,149)

48,334 (2,446) (23,385) 22,503 (4,250) 19,210 37,463

Property, plant and equipment

- capital allowances (8,539) (8,613)

Provisions 49,151 53,475

Mark-to-market on available-for-sale securities (3,149) (22,359)

37,463 22,503

Unquoted shares at cost – in Malaysia 20 20

Details of the wholly owned subsidiaries are as follows:-

Citigroup Nominee

(Malaysia) Sdn. Bhd. Nominee company Malaysia 100% 100%

Citigroup Nominees

(Tempatan) Sdn. Bhd.* Nominee company Malaysia 100% 100%

Citigroup Nominees

(Asing) Sdn. Bhd.* Nominee company Malaysia 100% 100%

*

59

At 1 January 2008 2,177 84,262 214,934 301,373

Additions - 2,069 10,453 12,522

Disposals - - (5,081) (5,081)

Write offs - - (1,689) (1,689)

At 31 December 2008/

1 January 2009 2,177 86,331 218,617 307,125

Additions 3,700 1,710 37,971 43,381

Disposals - - (9,515) (9,515)

At 31 December 2009 5,877 88,041 247,073 340,991

At 1 January 2008 1,024 61,506 166,616 229,146

Charge for the year 89 10,078 16,877 27,044

Disposals - - (2,526) (2,526)

Write offs - - (1,373) (1,373)


1 January 2009 1,113 71,584 179,594 252,291

Charge for the year 2,531 8,112 21,825 32,468

Disposals - - (6,432) (6,432)

At 31 December 2009 3,644 79,696 194,987 278,327

At 1 January 2008 1,153 22,756 48,318 72,227


1 January 2009 1,064 14,747 39,023 54,834

At 31 December 2009 2,233 8,345 52,086 62,664

60

Demand deposits 8,336,980 6,503,772

Saving deposits 1,739,611 1,362,883

Fixed deposits 9,753,741 11,815,011

Other deposits 9,889,297 7,458,233

Negotiable instruments of deposit 93,720 2,423,850

Others - cash collateral 15,734 25,891

29,829,083 29,589,640

Due within six months 13,733,774 12,868,351

Six months to one year 4,774,991 4,937,278

One year to three years 989,722 1,122,740

Three years to five years 227,007 141,709

Over five years 11,264 59,962

19,736,758 19,130,040

Government and statutory bodies 49,716 764,542

Business enterprises 14,611,909 10,375,579

Individuals 11,349,112 12,722,835

Others 3,818,346 5,726,684

29,829,083 29,589,640

61

Licensed banks 3,694,896 9,539,550

Licensed finance companies 14 63,306

3,694,910 9,602,856

Interest/Profit payable 66,535 129,234

Other creditors and accruals 1,233,537 1,151,609

Provision for retirement benefits (Note 21) 283 3,077

Profit Equalisation Reserve (Note 38(l)) 23 1,025

Taxation 66,364 142,943

Derivative liabilities (Note 32) 783,740 1,718,658

2,150,482 3,146,546

Subordinated loan 400,000 400,000

62

Ordinary shares of RM1 each:

Authorised 500,000 500,000 500,000 500,000

Issued and fully paid 121,697 121,697 121,697 121,697

Share premium 380,303 380,303

Statutory reserve 121,697 121,697

Fair value reserve 9,480 63,578

Retained profits 2,642,125 2,667,900

3,153,605 3,233,478

63

Present value of the funded obligation 34,093 26,926

Fair value of plan assets (25,972) (18,991)

8,121 7,935

Unrecognised past service cost (31) (56)

Unrecognised actuarial loss (7,807) (4,802)

Liability recognised in balance sheets 283 3,077

Equities 7,739 3,266

Property 7,661 7,653

Securities 7,558 6,533

Others 3,014 1,539

25,972 18,991

64

Defined benefit obligations at 1 January 26,926 25,282

Benefits paid by the plan (1,028) (2,107)

Current service costs and interest 2,778 2,453

Actuarial losses 5,417 1,298

Defined benefit obligations at 31 December 34,093 26,926

Fair value of plan assets at 1 January 18,991 21,295

Contribution paid into the plan 4,589 1,145

Benefits paid by the plan (1,028) (2,107)

Expected return on plan assets 1,293 1,432

Actuarial gains/(losses) 2,127 (2,774)

Fair value of plan assets at 31 December 25,972 18,991

Current service cost 1,297 1,256

Interest cost 1,481 1,197

Expected return on plan assets (1,293) (1,432)

Net actuarial loss recognised in the year 285 25

Prior service cost 25 25

Amount included under “personnel costs” 1,795 1,071

Actual return on plan assets 3,420 (1,342)

65

Opening net liability as at 1 January 3,077 3,151

Recommended expenses as above 1,795 1,071

Contributions paid (4,589) (1,145)

283 3,077

Discount rate 5.50% 5.75%

Rate of increase in salary levels 7.00% 7.00%

Expected long-term rate of return on plan assets 7.00% 7.00%

Price inflation 3.50% 3.50%

66

Present value of the defined

benefit obligation 34,093 26,926 25,282 41,474 41,137

Fair value of plan assets (25,972) (18,991) (21,295) (39,051) (36,095)

Deficit in the plan 8,121 7,935 3,987 2,423 5,042

Experience adjustments

arising on plan assets

- (gains)/losses (2,127) 2,774 (1,132) (1,060) 637

Experience adjustments

arising on plan liabilities

- losses 4,850 36 1,037 492 1,338

Assumption adjustment on

plan liabilities - losses/

(gains) 566 1,262 1,251 (1,270) -

The Group and the Bank expect RM 2,988,377 contribution to be paid to the funded defined benefit plan in year 2010.

The Group and the Bank has a number of stock option programs for its officers and employees as part of a discretionary award

package. Options are granted on Citigroup Inc. stock at the market value denominated in US dollar at the time of grant. Option

granted in October, 2009 has a six year term and will vest 33% each year over a three year period, provided the staff remains

continuously employed in the Bank.

Outstanding at 1 January 179,715 187,617

Granted 681,797 71,861

Vested - (4,804)

Lapsed/cancelled (98,012) (74,959)

Outstanding at 31 December 763,500 179,715

67Feb 2009 RM 111.13 - 21,084

Sep 2009 RM 153.12 - 5,000

Jan 2010 RM 169.66 22,501 25,669

Apr 2010 RM 142.05 21,939 23,869

Apr 2010 RM 189.30 1,912 -

Oct 2010 RM 162.43 6,433 6,433

Jan 2011 RM 169.82 23,247 24,526

Jan 2011 RM 162.81 4,131 -

Aug 2011 RM 151.52 2,681 2,681

Jan 2012 RM 167.67 415 622

Feb 2012 RM 143.60 2,038 29,710

Feb 2012 RM 144.33 32,422 -

Jan 2013 RM 186.39 635 827

Jan 2014 RM 83.80 16,237 39,294

Oct 2015 RM 13.98 628,909 -

763,500 179,715

68

Outstanding at 1 January 176,565 155,234

Granted 224,975 127,446

Vested (48,705) (31,791)

Lapsed/cancelled (20,034) (74,324)

Net transferred in/out 112,862 -

Outstanding at 31 December 445,663 176,565

Expiry dates Jan 20, 2013 Jan 17, 2011-

Jul 18, 2011

Average grant price per ordinary share (RM) 16.01 91.30

Aggregated proceeds if shares are issued (RM’000) 3,602 11,636

Details of CAP vested during the year:

Average exercise price per ordinary share (RM) 12.40 83.82

Aggregated issue proceeds (RM’000) 4,915 5,594

Fair value at date of vesting (RM’000) 604 2,665

69

Jan 2009 RM 166.25 - 222

Jan 2010 RM 167.17 25,244 21,768

Jan 2011 RM 186.66 45,893 35,074

July 2011 RM 178.88 8,624 -

Jan 2012 RM 90.25 144,619 119,501

Jan 2013 RM 16.01 221,283 -

445,663 176,565

Loans and advances

- Interest income other than recoveries from NPLs 1,301,509 1,477,977

- Recoveries from NPLs 10,074 12,684

Money at call and deposit placements with

financial institutions 167,431 494,690

Securities held-for-trading 53,794 64,498

Securities available-for-sale 160,584 110,470

Securities held-to-maturity 1,995 829

Securities purchase under resale agreements 7,068 22,560

1,702,455 2,183,708

Accretion of discount/(Amortisation of premium) 3,742 (15,905)

Total interest income 1,706,197 2,167,803

70

Deposits and placements of banks and other


Deposits from customers 380,389 611,799

Loans sold to Cagamas - 6,289

Others 40,536 42,115

474,556 949,778

Fee income:

Commission 167,188 168,734

Service charges and fees 607 836

Guarantee fees 8,609 8,066

Bankcard fees 193,467 181,884

Insurance premium and referral 18,085 17,377

Other fee income 15,056 12,451

403,012 389,348

Unrealised (loss)/gain from revaluation of securities

held-for-trading (17,492) 23,228

Net gain from sales of securities

- securities held-for-trading 14,882 84,779

- securities available-for-sale 57,240 19,226

Gross dividends from securities held-to-maturity 25 1,719

54,655 128,952

Other income:

Foreign exchange profit

- unrealised gain 208,180 328,864

- realised gain 21,812 36,092

Loss from derivatives (131,873) (194,237)

Loss on disposal of property, plant and equipment (277) (227)

97,842 170,492

555,509 688,792

71

Personnel costs

- Salaries, allowances and bonuses 186,525 191,280

- Contributions to Employees Provident Fund 29,747 32,483

- Staff benefits and other compensations 80,456 120,355

- Others 1,411 10,721

298,139 354,839

Establishment costs

- Depreciation 32,468 27,044

- Rental of premises 16,605 22,312

- Hire of equipments 9,141 3,716

- Utilities 4,620 5,936

- Others 8,521 2,906

71,355 61,914

Marketing expenses

- Advertisement and promotional expenses 85,012 79,502

- Others 1,453 2,629

86,465 82,131

Administrative and general expenses

- Processing cost 146,716 140,455

- Auditors’ remuneration

- Statutory audit 266 266

- Other services 357 33

- Property, plant and equipment written off - 30

- Stationeries and supplies 11,680 9,399

- Communication expenses 15,870 19,720

- Maintenance of office equipment 29,616 21,130

- Others 108,564 92,204

313,069 283,237

Total other operating expenses 769,028 782,121

72

CEO and Directors’ remuneration

Executive Directors (including CEO)

Salary and other remuneration, including

meeting allowances 2,417 1,833

Bonuses 410 1,283

Benefits-in-kind 311 314

Share-based payment 1,764 438

Non-executive Directors

Fees 225 225

5,127 4,093

Number of Directors of Bank whose total remuneration (excluding benefits-in-kind) for the financial year falls in the following

bands:

Executive Directors

RM4,500,001 to RM5,500,000 1 -

RM3,500,001 to RM4,500,000 - 1

Non-executive Directors

RM50,001 to RM100,000 3 3

Other key management personnel:

- short-term employee benefits 1,855 2,148

73

Allowance for bad and doubtful debts on loans

and financing:

Specific allowance

- made in the financial year 296,150 248,190

- written back (64,136) (66,009)

General allowance

- reversal during the year (20,090) (11,107)

Bad debts on loan and financing

- written back (32,325) (42,628)

- written off 1,460 3,237

181,059 131,683

Malaysian income tax

- current year 223,460 267,776

- prior year over provision (6,261) (4,399)

217,199 263,377

Deferred tax expense

- Origination and reversal of temporary differences 4,250 2,446

221,449 265,823

74

Profit before taxation 895,674 1,038,223

Income tax using Malaysian tax rate of 25%

(2008 - 26%) 223,919 269,938

Non-deductible expenses 313 2,052

Effect of changes in tax rate 1,725 (1,768)

Others 1,753 -

227,710 270,222

Over provision in prior year (6,261) (4,399)

221,449 265,823

Final 2008 ordinary 329 400,000 5 May 2009

Interim 2009 ordinary 247 300,000 22 Dec 2009

Total amount 700,000

75

Final ordinary 205 250,000

76

Interest on interest bearing deposits - 145,434 - 399,096

Other income 4,465 76,869 5,789 240,005

4,465 222,303 5,789 639,101

Interest on interest bearing deposits - 35,156 - 265,881

Other expenses 32,692 250,135 114,600 192,353

32,692 285,291 114,600 458,234

Interest bearing deposits - 2,582,634 - 11,164,302

Current account balances 3,508 102,750 6,514 182,081

Other balances 38,325 42,349 245,595 455,823

41,833 2,727,733 252,109 11,802,206

Interest bearing deposits - 29,341 - 9,181,419

Current account balances 34,911 53,578 83,663 183,852

Other balances 46,233 1,071,156 269,687 367,937

81,144 1,154,075 353,350 9,733,208

77

Outstanding credit exposures with connected parties 1,331,305 1,211,948

of which:

Total credit exposure which is non-performing or in

default 1 5

Total credit exposures 63,521,791 63,409,654

Percentage of outstanding credit exposures to

connected parties

- as a proportion of total credit exposures 2.10% 1.91%

- as a proportion of capital base 34.06% 30.68%

- which is non-performing or in default 0.00% 0.00%

78

2009 2008

Positive Negative Positive Negative

Contract fair fair Contract fair fair

Amount value value amount value value

RM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Foreign exchange

related contracts:

- Forwards 23,665,292 103,489 92,287 49,159,458 604,114 564,053

- Cross currency

interest rate swaps 12,840,992 261,250 176,439 15,578,565 358,947 300,750

- Options 788,872 9,434 3,366 2,587,234 87,651 32,457

Interest rate contracts:

- Futures 14,421,398 - - 16,224,875 - -

- Swaps 54,584,009 375,161 483,352 54,233,405 634,162 775,440

- Options 671,050 17 11 667,350 7 41

Equity related

contracts 1,396,582 18,164 18,404 1,557,939 15,156 20,361

Others 782,511 7,887 9,881 960,559 8,281 25,556

109,150,706 775,402 783,740 140,969,385 1,708,318 1,718,658

Note 10 Note 17 Note 10 Note 17

79

80

Cash and short term funds 10,345,906 - - - - 368,073 - 10,713,979 1.21%



institutions - 236,463 890,816 200,209 964 - - 1,328,452 2.61%


resale agreements - - - - - - - - -

Securities held-for-trading - - - - - - 2,326,772 2,326,772 2.55%

Securities available-for-sale 74,940 200,568 778,321 3,555,716 743,139 - - 5,352,684 3.25%

Securities held-to-maturity - - - - - 7,499 - 7,499

Loans, advances and financing

- performing 12,735,098 890,276 898,897 3,312,926 854,485 (430,856) - 18,260,826 7.12%

- non-performing - - - - - 236,246 - 236,246

Other assets - - - - - 1,066,002 - 1,066,002

Statutory deposits with BNM - - - - - 5,200 - 5,200

Deferred tax assets - - - - - 37,463 - 37,463

Property, plant and equipment - - - - - 62,664 - 62,664

23,155,944 1,327,307 2,568,034 7,068,851 1,598,588 1,352,291 2,326,772 39,397,787

Deposits from customers 20,111,743 4,542,066 4,126,116 1,039,158 10,000 - - 29,829,083 1.40%

Deposits and placements of


institutions 3,384,451 13,250 57,171 111,570 - 128,468 - 3,694,910 0.77%

Bills and acceptances payable - - - - - 48,010 - 48,010

Other liabilities - - - - - 2,150,482 - 2,150,482

Subordinated loan - - - - 400,000 - - 400,000 3.44%

23,496,194 4,555,316 4,183,287 1,150,728 410,000 2,326,960 - 36,122,485

Shareholders’ equity - - - - - 3,275,302 - 3,275,302

23,496,194 4,555,316 4,183,287 1,150,728 410,000 5,602,262 - 39,397,787

On-balance sheets interest

sensitivity gap (340,250) (3,228,009) (1,615,253) 5,918,123 1,188,588 (4,249,971) 2,326,772

Off-balance sheets interest

sensitivity gap 6,707 2,286,108 (2,414,996) 807,836 47,000 - -

(333,543) (941,901) (4,030,249) 6,725,959 1,235,588 (4,249,971) 2,326,772

81

Cash and short term funds 12,193,820 - - - - 190,605 - 12,384,425 3.03%



institutions - 431,828 1,484,628 736,030 2,966 - - 2,655,452 3.80%


resale agreements 116,675 9,096 - - - - - 125,771 3.61%

Securities held-for-trading - - - - - - 3,183,108 3,183,108 3.01%

Securities available-for-sale 40,000 20,147 858,489 3,880,246 492,336 - - 5,291,218 3.62%

Securities held-to-maturity - - - - - 7,499 - 7,499

Loans, advances and financing

- performing 13,866,550 800,907 1,099,671 3,206,768 972,914 (347,959) - 19,598,851 7.40%

- non-performing - - - - - 249,979 - 249,979

Other assets - - - - - 2,054,554 - 2,054,554

Statutory deposits with BNM - - - - - 508,292 - 508,292


Property, plant and equipment - - - - - 54,834 - 54,834

26,217,045 1,261,978 3,442,788 7,823,044 1,468,216 2,740,307 3,183,108 46,136,486

Deposits from customers 19,999,271 3,149,852 5,190,617 1,209,900 40,000 - - 29,589,640 2.29%



institutions 8,557,080 337,288 533,279 34,026 - 141,183 - 9,602,856 2.77%

Bills and acceptances payable - - - - - 42,269 - 42,269

Other liabilities - - - - - 3,146,546 - 3,146,546

Subordinated loan - - - - 400,000 - - 400,000 4.63%

28,556,351 3,487,140 5,723,896 1,243,926 440,000 3,329,998 - 42,781,311

Shareholders’ equity - - - - - 3,355,175 - 3,355,175

28,556,351 3,487,140 5,723,896 1,243,926 440,000 6,685,173 - 46,136,486

On-balance sheets interest

sensitivity gap (2,339,306) (2,225,162) (2,281,108) 6,579,118 1,028,216 (3,944,866) 3,183,108

Off-balance sheets interest

sensitivity gap 705,984 2,445,069 (4,319,761) 1,223,223 7,509 - -

(1,633,322) 219,907 (6,600,869) 7,802,341 1,035,725 (3,944,866) 3,183,108

82

83

Within 1 year 9,971 21,723

Between 1 and 5 years 4,990 7,127

Capital expenditures:

Authorised and contracted for 15,989 38,848

Total credit RWA (Note 36(d)) 19,769,887 22,366,355

Total market RWA (Note 36(f)) 1,948,704 3,249,462

Total operational RWA 3,361,169 3,170,405

25,079,760 28,786,222

Tier 1 Capital 3,225,210 3,246,735

Capital Base* 3,908,305 3,949,920

Core capital ratio 12.86% 11.28%

Risk weighted capital ratio 15.58% 13.72%

Core capital ratio 11.86% 9.89%

Risk weighted capital ratio 14.59% 12.33%

84

Paid up ordinary share capital 121,697 121,697

Share premium 380,303 380,303

Retained profits 2,642,125 2,667,900

Other reserves 121,697 121,697

Less: Deferred tax assets (40,612) (44,862)

3,225,210 3,246,735

General allowance for bad and doubtful debts

and financing 283,115 303,205

Maximum allowable subordinated debt capital 400,000 400,000

683,115 703,205

Total Eligible Tier II 683,115 703,205

Less: Investments in subsidiary companies (20) (20)

3,908,305 3,949,920

85

7,484,071 7,484,071 - -

9,595,935 9,595,935 2,191,274 175,302

2,716 2,716 2,714 218

2,361,043 2,350,257 2,288,500 183,080

6,096,462 5,862,517 4,397,623 351,810

9,942,990 9,942,990 3,761,253 300,900

66,201 66,201 99,301 7,944

453,507 453,507 401,318 32,105

7,499 7,499 2,299 184

617,520 617,520 638,504 51,080

36,627,944 36,383,213 13,782,786 1,102,623

2,118,453 2,118,453 1,211,748 96,940

5,918,410 5,918,410 4,757,148 380,572

14,823 14,823 18,205 1,456

8,051,686 8,051,686 5,987,101 478,968

44,679,630 44,434,899 19,769,887 1,581,591

86

2,434,051 241,600 4,405 352

441,879 316,178 1,787,557 143,005

120,334 148,008 148,008 11,841

8,734 699

1,948,704 155,897

3,361,169 268,894

25,079,760 2,006,382

87

8,999,997 8,999,997 - -

11,283,320 11,283,320 2,874,528 229,962

7,042 7,042 7,040 563

3,001,252 2,939,626 2,778,395 222,272

5,950,099 5,728,803 4,296,602 343,728

10,991,187 10,991,187 4,331,034 346,483

100,316 100,316 150,473 12,038

746,118 746,118 648,681 51,894

- - - -

523,084 522,492 548,712 43,897

41,602,415 41,318,901 15,635,465 1,250,837

3,543,712 3,543,700 1,895,309 151,625

5,869,143 5,865,119 4,826,051 386,084

8,769 8,769 9,530 762

9,421,624 9,417,588 6,730,890 538,471

51,024,039 50,736,489 22,366,355 1,789,308

88

3,233,034 19,388 18,636 1,491

538,836 458,396 2,043,666 163,493

1,169,859 578,288 1,169,859 93,589

17,301 1,384

3,249,462 259,957

3,170,405 253,632

28,786,222 2,302,897

89

0% 7,484,071 507,572 - - - - - 51,515 - 8,043,158 -

20% - 8,648,717 - 75,319 - - - 843 6,500 8,731,379 1,746,276

35% - - - - - 8,392,575 - - - 8,392,575 2,937,401

50% - 2,104,381 5,767 92,059 1,776 1,545,184 - - - 3,749,167 1,874,584

75% - - - - 9,362,748 166,290 - - - 9,529,038 7,146,779

100% - 99,648 82,774 4,675,483 42,355 535,554 - 402,237 999 5,839,050 5,839,050

150% - - - 2,247 31,674 8,704 107,907 - - 150,532 225,797

7,484,071 11,360,318 88,541 4,845,108 9,438,553 10,648,307 107,907 454,595 7,499 44,434,899 19,769,887

- 2,881,582 85,657 4,739,946 7,112,816 4,383,322 161,860 402,405 2,299 - 19,769,887

Average Risk Weight 0% 25% 97% 98% 75% 41% 150% 89% 31% 45%

Deduction from Capital Base - - - - - - - - - - -

90

0% 8,999,997 51,022 - - - - - 90,732 9,141,751 -

20% - 10,390,210 - 196,708 - - - 8,379 10,595,297 2,119,059

35% - - - - - 8,796,225 - - 8,796,225 3,078,678

50% - 3,423,364 1,324 227,608 742 1,832,527 - - 5,485,565 2,742,782

75% - - - - 8,949,460 625,513 - - 9,574,973 7,181,229

100% - 5,776 63,431 5,750,716 45,323 422,653 - 650,921 6,938,820 6,938,820

150% - 44 - 6,489 29,779 20,407 147,139 - 203,858 305,787

8.999,997 13,870,416 64,755 6,181,521 9,025,304 11,697,325 147,139 750,032 50,736,489 22,366,355

- 3,795,566 64,093 5,913,594 6,802,456 4,917,341 220,709 652,596 - 22,366,355

Average Risk Weight 0% 27% 99% 96% 75% 42% 150% 87% 44%

Deduction from Capital Base - - - - - - - - - -

91

Direct credit substitutes 1,821,604 - 1,821,604 1,690,919

Transaction related

contingent items 527,371 - 263,686 231,439

Short term self liquidating

trade related contingencies 212,094 - 42,419 39,597

Forward asset purchases 107,311 - 107,311 56,458

Foreign exchange related

contracts:

One year or less 14,039,888 140,774 358,506 267,549

Over one year to five years 4,700,921 233,399 660,627 490,040

Over five years - - - -

Interest/Profit rate related

contracts:

One year or less 6,923,694 37,429 46,530 15,320


Over five years 2,474,306 89,586 255,336 83,166

Equity related contracts:

One year or less 463,128 - 29,550 13,559

Over one year to five years 582,463 18,164 63,443 37,776


Debt security contracts and

other commodity contracts:

One year or less 373,940 - - -



Other commitments, such as

formal standby facilities and

credit lines, with an original

maturity of over one year 449,442 - 224,721 149,793

92

Any commitments that are

unconditionally cancelled

at any time by the bank

without prior notice or that

effectively provide for

automatic cancellation due to

deterioration in a borrower’s

creditworthiness 5,697,541 - - -

Unutilised credit card lines 17,367,458 - 3,473,492 2,607,145

Total 84,500,577 775,402 8,051,686 5,987,101

Direct credit substitutes 1,445,815 - 1,445,815 1,360,653

Transaction related

contingent items 573,391 - 286,695 246,990

Short term self liquidating

trade related contingencies 263,063 - 52,613 43,754



contracts:

One year or less 27,705,688 752,805 1,167,916 728,540


Over five years 651,912 41,155 138,942 138,942


contracts:

One year or less 6,500,278 38,960 45,962 17,287


Over five years 3,589,342 224,610 453,853 165,861

93

Equity related contracts:

One year or less - - - -



Debt security contracts and

other commodity contracts:







maturity of over one year 1,077,602 - 538,801 426,885




maturity of up to one year 1,626,260 - 325,252 321,451








creditworthiness 3,701,052 - - -

Unutilised credit card lines 15,894,041 - 3,178,808 2,385,970

Total 102,128,524 1,708,318 9,421,624 6,730,890

94

Interest rate risk

- General interest rate risk 1,787,557 143,005 2,043,666 163,493

- Specific interest rate risk 4,405 352 18,636 1,491

1,791,962 143,357 2,062,302 164,984

Foreign currency risk

- General risk 148,008 11,841 1,169,859 93,589

- Execution risk - - - -

148,008 11,841 1,169,859 93,589

Option risk 8,734 699 17,301 1,384

Total 1,948,704 155,897 3,249,462 259,957

95

Cash and short term funds 10,713,979 10,713,979 12,384,425 12,384,425


financial institutions 1,328,452 1,337,374 2,655,452 2,662,134

Securities purchased under resale

agreements - - 125,771 125,771

Securities held-for-trading 2,326,772 2,326,772 3,183,108 3,183,108

Securities available-for-sale 5,352,684 5,352,684 5,291,218 5,291,218

Securities held-to-maturity 7,499 7,499 7,499 7,499

Loans, advances and financing 18,497,072 18,404,525 19,848,830 19,020,473

Other assets 1,066,002 1,066,002 2,054,554 2,054,554

Deposits from customers 29,829,083 29,936,737 29,589,640 29,593,533



institutions 3,694,910 3,594,353 9,602,856 9,603,923

Bills and acceptances payable 48,010 48,010 42,269 42,269

Other liabilities 2,150,482 2,150,482 3,146,546 3,146,546

Subordinated loan 400,000 400,000 400,000 400,000

96

97

Cash and short term funds (a) 878,460 22,191

Securities held-for-trading (b) 65,397 75,004

Securities available-for-sale (c) 401,371 775,932

Financing, advances and other loans (d) 527,007 418,416

Deferred tax assets 1,718 -

Other assets (f) 91,716 127,110

1,965,669 1,418,653

Deposits from customers (g) 1,632,416 845,246

Deferred tax liabilities - 4,599

Other liabilities (h) 151,041 405,600

1,783,457 1,255,445

Islamic banking funds (i) 182,212 163,208

1,965,669 1,418,653

Off-balance sheet exposures (r) 2,920,577 2,735,568

98

Income derived from investment of depositors’

funds and others (j) 42,990 52,546

Allowance for losses on financing (k) (2,267) (3,986)

Transfer from Profit Equalisation Reserve (l) 1,002 804

Total attributable income 41,725 49,364

Income attributable to depositors (m) (15,603) (24,053)

Total attributable to the Bank 26,122 25,311

Income derived from investment of Islamic

Banking Capital Funds (n) 30,222 15,913

Total net income 56,344 41,224

Other operating expenses (p) (7,440) (4,969)

Profit before taxation 48,904 36,255

Taxation (q) (12,300) (7,069)

Profit after taxation 36,604 29,186

99

20,000 (1,391) 95,537 114,146

Profit after taxation - - 29,186 29,186

Unrealised net gain on

revaluation of securities

available-for-sale - 19,876 - 19,876

20,000 18,485 124,723 163,208

Profit after taxation - - 36,604 36,604

Unrealised net loss on

revaluation of securities

available-for-sale - (17,600) - (17,600)

20,000 885 161,327 182,212

100

Profit before taxation 48,904 36,255

Adjustments for:

Amortisation of premium less accretion of

discount of investment securities (1,488) (5,737)


(net of write-backs) 2,267 3,986

Profit Equalisation Reserve (1,002) (804)

Gain from disposal of securities available-for-sale (27,997) (29)

Mark-to-market gain on securities held-for-trading (528) (362)

Operating profit before changes in working capital 20,156 33,309

Changes in working capital:

Securities held-for-trading 10,135 (74,626)

Financing, advances and other loans (110,858) (246,905)

Other assets 35,394 (15,062)

Deposits from customers 787,170 (250,847)

Other liabilities (253,557) 218,890

Cash generated from/(used in) operating activities 488,440 (335,241)

Income taxes paid (12,464) (7,583)

475,976 (342,824)

Purchase of securities available-for-sale (425,124) (522,846)

Proceeds from disposal of securities available-for-sale 805,417 80,907

380,293 (441,939)

Net increase/(decrease) in cash and cash equivalents 856,269 (784,763)

Cash and cash equivalents at 1 January 22,191 806,954

878,460 22,191

101

Cash and balances with banks and other


Money at call and deposit placements

maturing within one month 874,000 19,000

878,460 22,191

Bank Negara Malaysia Islamic Bills 65,397 75,004


Islamic Khazanah bonds 74,940 140,389

401,371 775,932

102

Term financing

- Housing loans/financing 564,069 451,518

- Hire purchase receivables 8,868 17,187

- Lease receivables 6,722 12,336

- Claims on customers under acceptance

credits - 3,213

579,659 484,254

Unearned income (39,880) (53,869)

Gross financing, advances and other loans 539,779 430,385

Allowance for bad and doubtful financing

- general (8,029) (6,374)

- specific (4,743) (5,595)

Total net financing, advances and other loans 527,007 418,416

Bai’Bithamin Ajil 50,710 64,804

Ijarah Muntahia Bittamilik 15,590 32,736

Diminishing Musharakah 473,479 332,845

539,779 430,385

103

Domestic business enterprises

- Small and medium enterprises 13,945 23,354

- Others 4,673 12,113

Individuals 521,161 394,918

539,779 430,385

Fixed rate

- Housing loans/financing 524,189 397,649

- Hire purchase receivables 8,791 17,187

- Other fixed rate/financing 6,799 15,549

539,779 430,385


Wholesale, retail trade, restaurants and hotels 223 4,221

Transport, storage and communication 4,238 8,734

Finance, insurance, real estate and business

services 589 2,851

Household - Residential 521,161 394,918

Other sectors 3,028 2,731

539,779 430,385

104

Purchase of landed property 524,189 397,649

Purchase of fixed assets excluding land and

building 15,590 29,523

Working capital - 3,213

539,779 430,385

At 1 January 9,951 9,983

Classified as non-performing during the year 2,635 2,567

Amount recovered (758) (2,599)

Amount written off (1,613) -

At 31 December 10,215 9,951

Specific allowance (4,743) (5,595)

Net non-performing financing, advances and

other loans 5,472 4,356

Ratio of net non-performing financing,

advances and other loans to total gross

financing, advances and other loans less

specific allowance 1.02% 1.03%

105

At 1 January 6,374 2,683

Allowance made during the year 1,655 3,691

At 31 December 8,029 6,374

As % of gross financing, advances and other

loans less specific allowance 1.5% 1.5%

At 1 January 5,595 5,367

Allowance made during the year 877 469

Amount written back (116) (241)

Amount written off (1,613) -

At 31 December 4,743 5,595


Wholesale, retail trade, restaurants and hotels - 461

Transport, storage and communication 28 501

Finance, insurance, real estate and business

services - 1,035

Household - Residential 5,912 3,180

10,215 9,951

106

Profit receivable 2,343 5,981

Other debtors, deposits and prepayments 8,492 24,814

Revaluation gain on profit rate undertaking contracts

(Note 38(s)) 80,881 96,315

91,716 127,110

Demand deposits 858,562 296,288

Saving deposits 288,248 224,246

Negotiable instruments of deposit - 800

Other deposits 227,798 190,748

General investment deposits 257,808 133,164

1,632,416 845,246

Government and statutory bodies 374 -

Business enterprises 1,057,132 602,481

Individuals 307,163 242,765

Others 267,747 -

1,632,416 845,246

107

Profit payable 217 276

Other creditors and accruals 69,920 307,984

Profit Equalisation Reserve (see Note 38(l)) 23 1,025

Revaluation loss on profit rate undertaking contracts

(Note 38(s)) 80,881 96,315

151,041 405,600

Fund allocated 20,000 20,000

Fair value reserve 885 18,485

Retained earnings 161,327 124,723

182,212 163,208

Income derived from investment of:

General investment deposits 36,388 46,882

Other deposits 6,602 5,664

42,990 52,546

108

Financing, advances and other loans 15,922 12,645

Money at call and placements with financial

institutions 4,264 15,010

Income from securities available-for-sale 11,058 10,150

Income from securities held-for-trading 2 -

31,246 37,805

Accretion of discount less amortisation of premium 4,336 8,881

Total finance income and hibah 35,582 46,686

Fee income 806 196

Income from general investment deposits 36,388 46,882

Financing, advances and other loans 2,889 1,528


institutions 774 1,813

Income from securities available-for-sale 2,006 1,226

5,669 4,567

Accretion of discount less amortisation of

premium 787 1,073


Fee income 146 24

Income from investment of other deposits 6,602 5,664

109

Allowance for bad and doubtful debts on financing:

Specific allowance

- made in the financial year 877 469

- written back in the financial year (116) (241)

General allowance

- allowance made in the financial year 1,655 3,691

Bad debts on loan and financing (written back)/

written off (149) 67

2,267 3,986

The movement in Profit Equalisation Reserve is as follows:

At 1 January 1,025 1,829

Movement in the financial year (1,002) (804)

At 31 December 23 1,025

Deposits from customers

- Mudharabah Fund 11,810 20,175

- Non-Mudharabah Fund 3,681 3,694

Deposits and placements of banks and other

financial institutions

- Non-Mudharabah Fund 74 79

Others 38 105

15,603 24,053

110

Financing, advances and other loans 1,449 843


institutions 388 1,001

Income from securities available-for-sale 1,006 677

2,843 2,521

Accretion of discount less amortisation of premium 395 592


Gain from securities held-for-trading 528 362

Gain from securities available-for-sale 27,997 29

Fee income 630 8,086

(Loss)/Income from trading activities (2,714) 4,323

Insurance premium and referral 543 -

26,984 12,800

Income from Islamic Banking Capital Funds 30,222 15,913

For consolidation with the conventional operations, income from Islamic banking operations comprises the following:

Income derived from investment of depositors’

funds and others (j) 42,990 52,546

Profit Equalisation Reserve (l) 1,002 804

Income attributable to depositors (m) (15,603) (24,053)

Income derived from investment of Islamic

Banking Capital Funds (n) 30,222 15,913

58,611 45,210

111

Personnel costs

- Salaries, allowances and bonuses 1,113 514

- Contributions to Employees Provident Fund 21 18

- Staff benefits and other compensations 14 15

- Others - 12

Establishment costs

- Depreciation 5 6

- Rental 7 20

- Utilities 8 59

Administrative and general expenses

- Maintenance of office equipment 3 -

- Others 6,269 4,325

7,440 4,969

Included in other operating expenses is the Syariah Committee’s remuneration of RM 108,000 (2008 – RM108,000).

Current tax expense 12,464 965

Deferred tax (income)/expense (164) 6,104

12,300 7,069

112

Total credit RWA (Note (r)(iv)) 486,990 548,164

Total market RWA (Note (r)(vi)) 87,623 34,154

Total operational RWA 82,549 67,401

657,162 649,719

Tier 1 Capital 179,315 144,723

Capital Base 187,344 151,097

27.29% 22.27%

28.51% 23.26%

With effect from 1 January 2008, the capital adequacy ratios of the Group and the Bank are computed in accordance with

Bank Negara Malaysia’s revised Risk-Weighted Capital Adequacy Framework (RWCAF-Basel II). The Group and the Bank have

adopted the Standardised Approach for Credit Risk and Market Risk, and the Basic Indicator Approach for Operational Risk.

Disclosures are in line with the requirements of the Basel II Pillar 3 Concept Paper issued by Bank Negara Malaysia on 3 December 2008.

The minimum regulatory capital adequacy requirement is 8% for the risk-weighted capital ratio.

113

Fund allocated 20,000 20,000

Retained earnings 161,327 124,723

Less: Deferred tax assets (2,012) -

Total Tier I Capital (Core Capital) 179,315 144,723

General allowance for bad and doubtful debts

and financing 8,029 6,374

187,344 151,097

On-Balance Sheet Exposures:

Sovereigns/Central banks 1,202,775 1,202,775 - -

Corporates 85,425 83,342 22,491 1,799

Regulatory retail 761 761 411 33

Residential mortgages 519,721 519,721 207,310 16,585

Higher risk assets 169 169 254 20

Other assets 12,649 12,649 8,189 655

Defaulted exposures 3,893 3,893 3,935 315

Total On-Balance Sheet

Exposures 1,825,393 1,823,310 242,590 19,407

114

Off-Balance Sheet Exposures:

OTC derivatives 206,315 206,315 203,052 16,244

Off-balance sheet exposures

other than OTC derivatives

or credit derivatives 59,158 59,158 41,348 3,308

Total Off-Balance Sheet

Exposures 265,473 265,473 244,400 19,552

2,090,866 2,088,783 486,990 38,959

Profit rate risk

- Specific profit

rate risk 675,754 - - -

- General profit

rate risk 7,010 - 87,623 7,010

Foreign currency risk - -

Options risk - -

87,623 7,010

82,549 6,604

657,162 52,573

115

On-Balance Sheet Exposures:

Sovereigns/Central banks 660,524 660,524 - -

Banks, Development Financial

Institutions & MDBs 2,296 2,296 459 37

Corporates 161,460 156,277 43,965 3,517

Regulatory retail 5,331 2,356 1,767 141

Residential mortgages 394,980 394,980 161,466 12,917

Higher risk assets 142 142 213 17

Other assets 8,821 8,821 5,630 450

Defaulted exposures 2,938 2,441 2,811 225

Total On-Balance Sheet

Exposures 1,236,492 1,227,837 216,311 17,304

Off-Balance Sheet Exposures:

OTC derivatives 259,721 259,721 256,613 20,529

Off-balance sheet exposures

other than OTC derivatives

or credit derivatives 121,537 121,537 75,240 6,019

Total Off-Balance Sheet

Exposures 381,258 381,258 331,853 26,548

1,617,750 1,609,095 548,164 43,852

116

Profit rate risk

- Specific profit

rate risk 405,917 - 1,749 140

- General profit

rate risk 2,592 - 32,405 2,592

Foreign currency risk - -

Options risk - -

34,154 2,732

67,401 5,392

649,719 51,976

117

0% 1,202,775 - - - - - - 4,460 1,207,235 -

20% - - - 74,940 - - - - 74,940 14,988

35% - - - - - 381,839 - - 381,839 133,644

50% - 6,527 - 1,758 684 162,816 - - 171,785 85,893

75% - - - - 122 2,571 - - 2,693 2,020

100% - 80,727 1,506 155,763 - 3,798 - 8,189 249,983 249,983

150% - - - - 90 - 218 - 308 462

1,202,775 87,254 1,506 232,461 896 551,024 218 12,649 2,088,783 486,990

- 83,991 1,506 171,630 568 220,778 328 8,189 - 486,990



118

0% 660,524 - - - - - - 3,191 663,715 -

20% - 2,296 - 140,389 - - - - 142,685 28,537

35% - - - - - 316,949 - - 316,949 110,932

50% - 6,217 - (325) - 145,925 - - 151,817 75,909

75% - - - - 2,356 3,538 - - 5,894 4,421

100% - 100,146 800 218,444 - 2,354 - 5,630 327,374 327,374

150% - - - 146 267 - 248 - 661 991

660,524 108,659 800 358,654 2,623 468,766 248 8,821 1,609,095 548,164

- 103,714 800 246,578 2,167 188,903 372 5,630 - 548,164



119


Foreign exchange related contracts:





contracts:


Over one year to five years 1,106,075 539 8,152 4,888


Other commitments, such

as formal standby facilities

and credit lines, with an original









creditworthiness 3,494 - - -

Total 2,920,577 68,364 265,473 244,400

120


Foreign exchange related contracts:





contracts:







maturity of up to one year 718 - 144 144





Total 2,735,568 96,315 381,258 331,853

121

Profit rate risk

- General profit

rate risk 87,623 7,010 32,405 2,592

- Specific profit

rate risk - - 1,749 140

Total Market Risk 87,623 7,010 34,154 2,732


contracts:

- Cross currency

Islamic profit rate

undertaking 3,198,236 67,825 67,825 3,216,229 75,696 75,696

Others

- Islamic profit

rate undertaking 2,212,150 13,056 13,056 1,867,550 20,619 20,619

5,410,386 80,881 80,881 5,083,779 96,315 96,315

Note 38(f) Note 38(h) Note 38(f) Note 38(h)

122

Cash and short term funds 874,000 - - - - 4,460 - 878,460 1.42%

Securities held-for-trading - - - - - - 65,397 65,397 1.92%

Securities available-for-sale 74,940 30,085 24,870 271,476 - - - 401,371 3.77%

Financing, advances and other loans

- performing 5,324 1,479 24,905 204,844 370,455 (85,472) - 521,535 4.02%

- non-performing - - - - - 5,472 - 5,472


Others assets - - - - - 91,716 - 91,716

954,264 31,564 49,775 476,320 370,455 17,894 65,397 1,965,669

Deposits from customers 851,412 - 118,122 22,262 241,778 398,842 - 1,632,416 1.33%

Deferred tax liabilities - - - - - - - -

Other liabilities - - - - - 151,041 - 151,041

851,412 - 118,122 22,262 241,778 549,883 - 1,783,457

Islamic Banking Funds - - - - - 182,212 - 182,212

851,412 - 118,122 22,262 241,778 732,095 - 1,965,669

On-balance sheets profit

sensitivity gap 102,852 31,564 (68,347) 454,058 128,677 (714,201) 65,397

123

Cash and short term funds 19,000 - - - - 3,191 - 22,191 3.78%

Securities held-for-trading - - - - - - 75,004 75,004 5.93%

Securities available-for-sale - - - 448,386 327,546 - - 775,932 3.70%

Financing, advances and other loans

- performing 332,658 5,722 8,915 1,656 125,345 (60,236) - 414,060 6.09%

- non-performing - - - - - 4,356 - 4,356

Deferred tax assets - - - - - - - -

Others assets - - - - - 127,110 - 127,110

351,658 5,722 8,915 450,042 452,891 74,421 75,004 1,418,653

Deposits from customers 529,837 60,006 20,919 470 212,366 21,648 - 845,246 2.34%

Deferred tax liabilities - - - - - 4,599 - 4,599

Other liabilities - - - - - 405,600 - 405,600

529,837 60,006 20,919 470 212,366 431,847 - 1,255,445

Islamic Banking Funds - - - - - 163,208 - 163,208

529,837 60,006 20,919 470 212,366 595,055 - 1,418,653

On-balance sheets profit

sensitivity gap (178,179) (54,284) (12,004) 449,572 240,525 (520,634) 75,004

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