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BANK MUAMALAT MALAYSIA BERHAD

Company No. 6175-W

(Incorporated in Malaysia)

UNAUDITED CONDENSED

FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED

30 JUNE 2015 (13 RAMADHAN 1436H)

Company No. 6175-W

Contents Page

Statements of Financial Position 1

Statements of Comprehensive Income 2

Statements of Changes in Equity 4

Statements of Cashflows 6

Notes to the financial statements 9





INTERIM FINANCIAL STATEMENTS

UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2015 (13 Ramadhan 1436H)

As at As at As at As at

30.06.2015 31.03.2015 30.06.2015 31.03.2015

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

ASSETS

Cash and short-term funds 252,105 1,115,809 252,105 1,115,809

Cash and placements with financial institutions 30,177 111,135 30,177 111,135

Financial investments designated at fair value

through profit or loss 4(a) 126,532 118,657 122,432 114,557

Financial investments available-for-sale 4(b) 5,706,704 6,435,479 5,706,704 6,435,479

Financial investments held-to-maturity 4(c) 139,203 139,042 139,203 139,042

Islamic derivative financial assets 5 46,735 44,378 46,735 44,378

Financing of customers 6 13,742,190 13,414,670 13,746,574 13,425,853

Other assets 7 95,880 96,462 92,850 95,713

Statutory deposits with Bank Negara Malaysia 766,991 757,721 766,991 757,721

Investment in subsidiaries - - 6,384 6,384

Investment properties 8,477 8,047 8,477 8,047

Intangible assets 125,611 127,179 124,907 126,426

Property, plant and equipment 67,856 69,218 67,750 69,103

Prepaid land lease payment 237 239 237 239

Deferred tax assets 8 - - - -

Total assets 21,108,698 22,438,036 21,111,526 22,449,886

LIABILITIES

Deposits from customers 9 18,217,368 19,544,549 18,232,320 19,566,609

Deposits and placements of banks and other

financial institutions 10 488,735 408,836 488,735 408,836

Bills and acceptances payable 23,363 67,723 23,363 67,723

Islamic derivative financial liabilities 5 41,413 46,193 41,413 46,193

Other liabilities 11 42,321 86,538 41,867 87,071

Provision for zakat and taxation 12 1,739 4,501 1,215 3,436

Deferred tax liabilities 21,160 18,947 21,160 18,947

Subordinated sukuk 13 400,901 406,055 400,901 406,055

Total liabilities 19,237,000 20,583,342 19,250,974 20,604,870

SHAREHOLDERS' EQUITY

Share capital 1,195,000 1,195,000 1,195,000 1,195,000

Reserves 676,698 659,694 665,552 650,016

Total shareholders' equity 1,871,698 1,854,694 1,860,552 1,845,016

TOTAL LIABILITIES AND

SHAREHOLDERS' EQUITY 21,108,698 22,438,036 21,111,526 22,449,886

COMMITMENTS AND

CONTINGENCIES 24 8,724,925 9,455,311 8,724,925 9,455,311

CAPITAL ADEQUACY *

CET 1 Capital Ratio 25 13.08% 13.33% 13.03% 13.27%

Total capital ratio 25 15.64% 16.12% 15.60% 16.07%

Group Bank

The unaudited condensed financial statements should be read in conjunction with the audited financial statements of the Group

and the Bank for the financial year ended 31 March 2015.

* The capital adequacy ratios are computed after taking into account the credit, market and operational risks.

1



FOR THE FIRST QUARTER ENDED 30 JUNE 2015 (13 Ramadhan 1436H)

30 June 30 June 30 June 30 June

2015 2014 2015 2014

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

Income derived from investment

of depositors' funds and others 14 267,155 259,414 267,155 259,414

Income derived from investment

of shareholders' funds 15 29,262 12,972 26,668 11,252

financing 16 (18,144) (23,104) (18,144) (23,104)

Impairment writeback on

investments 17 - 28,621 - 28,621

Other expenses directly attributable

to the investment of the depositors

and shareholders' funds (3,780) (2,391) (3,780) (2,391)

Total distributable income 274,493 275,512 271,899 273,792

Income attributable to depositors 18 (141,670) (116,002) (141,722) (116,046)

Total net income 132,823 159,510 130,177 157,746

Personnel expenses 19 (49,903) (62,136) (49,293) (61,431)

Other overheads and expenditures 20 (39,776) (38,420) (39,742) (38,515)

Finance cost (5,145) (5,263) (5,145) (5,263)

Profit before zakat and taxation 37,999 53,691 35,997 52,537

Zakat 21 (949) (1,385) (900) (1,313)

Taxation 22 (12,446) (7,042) (11,961) (6,918)

Profit for the period 24,604 45,263 23,136 44,305

Earnings per share (sen):

Basic 2.1 3.8

The unaudited condensed financial statements should be read in conjunction with the audited financial

statements of the Group and the Bank for the financial year ended 31 March 2015.


INCOME STATEMENTS

Group Bank

Allowance for impairment on

2




STATEMENTS OF COMPREHENSIVE INCOME



2015 2014 2015 2014

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

Profit for the period 24,604 45,263 23,136 44,305

Other comprehensive income/(loss):

Items that may be reclassified

subsequently to profit or loss

Net unrealised loss

revaluation of financial investment

available-for-sale (9,375) (123) (9,375) (123)

Income tax relating to components of

other comprehensive income 2,252 123 2,252 123

Exchange fluctuation reserve (477) 382 (477) 382

Other comprehensive income/(loss)

for the year, net of tax (7,600) 382 (7,600) 382

Total comprehensive income

for the year 17,004 45,645 15,536 44,687

Group Bank



3



Share Capital Distributable

Exchange Available-

Ordinary Statutory fluctuation for-sale Retained Total

shares reserve* reserve reserve profits Equity

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

At 1 April 2015 1,195,000 515,612 (584) (10,592) 155,258 1,854,694

Profit for the period - - - - 24,604 24,604

Other comprehensive income for the period - - (477) (7,123) - (7,600)

Total comprehensive income for the period - - (477) (7,123) 24,604 17,004

Transfer to statutory reserve - 11,568 - - (11,568) -

At 30 June 2015 1,195,000 527,180 (1,061) (17,715) 168,294 1,871,698

At 1 April 2014 1,195,000 473,705 (787) (30,227) 107,885 1,745,576


Other comprehensive income for the period - - 382 - - 382

Total comprehensive income for the period - - 382 - 45,263 45,645


At 30 June 2014 1,195,000 495,857 (406) (30,227) 130,996 1,791,221

* The statutory reserve is maintained in compliance with BNM Guideline of Capital Funds for Islamic Banks and is not distributable as dividends.

Non-distributable

The unaudited condensed financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the financial

year ended 31 March 2015.


UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


4



Share Capital Distributable

Exchange Available-

Ordinary Statutory fluctuation for-sale Retained Total

shares reserve* reserve reserve profits Equity

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

At 1 April 2015 1,195,000 514,015 (584) (10,592) 147,177 1,845,016


Other comprehensive income for the period - - (477) (7,123) - (7,600)

Total comprehensive income for the period - - (477) (7,123) 23,136 15,536


Dividend paid during the period - - - - - -

Issued during the period - - - - - -

At 30 June 2015 1,195,000 525,583 (1,061) (17,715) 158,745 1,860,552

At 1 April 2014 1,195,000 472,108 (787) (30,227) 105,269 1,741,363


Other comprehensive income for the period - - 382 - - 382

Total comprehensive income for the period - - 382 - 44,305 44,687


At 30 June 2014 1,195,000 494,260 (406) (30,227) 127,422 1,786,050

* The statutory reserve is maintained in compliance with BNM Guideline of Capital Funds for Islamic Banks and is not distributable as dividends.

The unaudited condensed financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the financial

year ended 31 March 2015.


UNAUDITED STATEMENT OF CHANGES IN EQUITY


Non-distributable

5

Bank Muamalat Malaysia Berhad



2015 2014 2015 2014

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

Cash flows from operating

activities

Profit before zakat and taxation 37,999 53,690 35,997 52,536

Adjustment for :

Amortisation of prepaid land

and lease payment 1 1 1 1

Amortisation of intangible asset 5,477 1,516 5,429 1,471

Depreciation of property, plant

and equipment 5,357 4,410 5,347 4,402

Loss on disposal of property,

plant and equipment - 1 - 1

Amortisation/ (accretion of discount)

of premium, net 918 (2,293) 918 (2,293)

Net gain from sale of financial

investment available-for-sale (2,759) (1,741) (2,759) (1,741)


investment held-for-trading (260) (134) (260) (134)

Net gain on revaluation of

foreign exchange transaction (4,006) (6,803) (4,006) (6,803)

Net (gain)/loss from foreign

exchange derivatives (958) 6,826 (958) 6,826

Unrealised gain on revaluation of

islamic profit rate swap (6,178) (1,195) (6,178) (1,195)

Unrealised gain on revaluation of

hedged items (4,955) (443) (4,955) (443)

Impairment writeback on

investments securities - (28,621) - (28,621)

Allowance for impairment

on financing 18,864 37,465 18,864 37,465

Financing written off 1,104 1,042 1,104 1,042

Finance cost 5,145 5,263 5,145 5,263

Gross dividend income (1,612) (1,612) (1,612) (1,612)

Operating profit before

working capital changes 54,138 67,372 52,078 66,165

STATEMENTS OF CASH FLOWS


Group Bank

6






2015 2014 2015 2014

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

(Increase)/decrease in operating

assets:

Financial investment portfolio 535 81,808 535 81,808

Islamic derivative financial assets 4,779 (6,122) 4,779 (6,122)

Financing of customers (342,532) (297,487) (335,733) (297,843)

Statutory deposits with Bank

Negara Malaysia (9,270) (27,000) (9,270) (27,000)

Other assets (5,197) 10,891 (2,917) 12,451

Increase/(decrease) in operating

liabilities:

Deposits from customers (1,327,181) (905,557) (1,334,289) (905,036)

Deposits and placements of banks

and other financial institutions 79,899 846,520 79,899 846,520

Islamic derivative financial liabilities (4,780) 6,121 (4,780) 6,121

Bills and acceptances

payable (44,360) (73,425) (44,360) (73,425)

Other liabilities (44,218) 167,797 (45,204) 167,058

Cash generated used in operations (1,638,187) (129,082) (1,639,262) (129,303)

Zakat paid (3,121) (5,137) (3,121) (5,137)

Tax paid (1,513) (8,107) (438) (7,886)

Net cash generated used in

operating activities (1,642,821) (142,326) (1,642,821) (142,326)

Cash flows from investing

activities

Proceeds from disposal of financial

investment securities 3,557,888 1,747,145 3,557,888 1,747,145

Purchase of financial investment

securities (2,842,706) (2,193,793) (2,842,706) (2,193,793)

Purchase of property, plant

and equipment (3,995) (4,738) (3,995) (4,738)

Purchase of intangible asset (3,910) (13,977) (3,910) (13,977)

Purchase of investment properties (430) - (430) -

Dividend income 1,612 1,612 1,612 1,612

Net cash generated from/(used in)

investing activities 708,459 (463,751) 708,459 (463,751)

Group Bank

7






2015 2014 2015 2014

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

Cash flows from financing activities

Dividend paid on subordinated

sukuk (10,300) (10,243) (10,300) (10,243)

Net cash used in financing

activities (10,300) (10,243) (10,300) (10,243)

Net decrease in cash and

cash equivalents (944,662) (616,320) (944,662) (616,320)

Cash and cash equivalents

at beginning of the period 1,226,944 1,087,047 1,226,944 1,087,047


at end of the period 282,282 470,727 282,282 470,727


consist of:

Cash and short term funds 252,105 448,250 252,105 448,250

Cash and placements with

financial institutions 30,177 22,477 30,177 22,477

282,282 470,727 282,282 470,727

Group Bank



8



NOTES TO INTERIM FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED 30 JUNE 2015

1. Basis of Preparation

Effective for annual periods commencing on or after 1 January 2016

- Equity Method in Separate Financial Statements (Amendments to MFRS 127)

- Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

(Amendments to MFRS 10 and MFRS 128)

- Amendments to MFRSs contained in the document entitled "Annual Improvements to

MFRSs 2012–2014 Cycle"

- Disclosure Initiative (Amendments to MFRS 101)

- Investment Entities: Applying the Consolidation Exception (Amendments to MFRS 10, MFRS 12

and MFRS 128)


- MFRS 15 Revenue from Contracts with Customers


- MFRS 9 Financial Instruments (2014)

(13 RAMADHAN 1436H)

The unaudited condensed financial statements for the first financial quarter ended 30 June 2015 of Bank

Muamalat Malaysia Berhad ("BMMB" or "the Bank") and its subsidiaries (the "Group") have been prepared in

accordance with the Malaysian Financial Reporting Standards (“MFRS”), International Financial Reporting

Standards ("IFRS"), and the requirements of the Companies Act, 1965 in Malaysia.

The financial statements are presented in Ringgit Malaysia ("RM") and rounded to the nearest thousand

(RM'000) except when otherwise indicated.

The financial statements of the Group and of the Bank are prepared under the historical cost basis except for

the following assets and liabilities that are stated at fair values: financial investment available-for sale, financial

assets at fair value through profit or loss and islamic derivative financial instruments.

The Group and the Bank present the statements of financial position in order of liquidity.

These condensed consolidated interim financial statements, for the period ended 30 June 2015 have been

prepared in accordance with MRFS 134 Interim Financial Reporting. These condensed consolidated interim

financial statements also comply with IAS 34 Interim Financial Reporting issued by the International

Accounting Standards Board, Bank Negara Malaysia Guidelines (BNM/GP8-i) and the principles of Shariah.


statements of the Bank for the financial year ended 31 March 2015. The explanatory notes attached to these

condensed consolidated 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

the Bank since the year ended 31 March 2015.

The significant accounting policies and methods of computation applied by the Bank are consistent with those

adopted in the most recent audited financial statements for the year ended 31 March 2015 except for adoption

of the following MFRSs and Interpretations of the Issues Committee ("IC Interpretations") with effective dates

as follows:

The amendments to MFRS 127 allow an entity to use the equity method in its separate financial statement to

account for investments in subsidiary companies, joint ventures and associated companies, in addition to the

existing cost method. The adoption of these amendments is not expected to have any impact on the financial

statement of the Bank as the Bank will continue to use its existing cost method to account for its investment in

an associated company.

9



1. Basis of Preparation (cont'd)

The Annual Improvements to MFRSs 2012 – 2014 Cycle consist of the following amendments:

a) MFRS 5 Non-current Assets Held for Sale and Discontinued Operations

b) MFRS 7 Financial Instruments: Disclosures

c) MFRS 119 Employee Benefits

d) MFRS 134 Interim Financial Reporting

The amendments to MFRS 10 and MFRS 128 address the inconsistency between the requirements of MFRS

10 and MFRS 128 and clarify that in a transaction involving an associate or joint venture, the extent of gain or

loss recognition depends on whether the assets sold or contributed constitute a business. The adoption of

these amendments is not expected to have any material impact on the financial statements of the Bank.

The amendment introduces specific guidance in MFRS 5 for cases in which an entity reclassifies an asset

from held for sale to held for distribution or vice versa and cases in which held-for-distribution is

discontinued. The amendment clarifies that changing from one of these disposal methods to the other

should not be considered to be a new plan of disposal and that changing the disposal method does not

change the date of classification.

MFRS 7 requires an entity to provide disclosures for any continuing involvement in a transferred asset that

is derecognised in its entirety. The amendment clarifies that a servicing contract that includes a fee can

constitute continuing involvement in a financial asset and an entity must assess the nature of the fee and

arrangement in order to assess whether the disclosures are required.

The amendments also clarify the applicability of the amendments to MFRS 7 on offsetting disclosures to

condensed interim financial statements.

The amendment clarifies that the high quality corporate bonds used to estimate the discount rate for

postemployment benefit obligations should be denominated in the same currency as the liability. When

there is no deep market for high quality corporate bonds, government bonds denominated in similar

currency must be used.

The amendment clarifies the meaning of 'elsewhere in the interim financial report' as used in MFRS 134

and states that the required interim disclosures must either be in the interim financial statements or

incorporated by cross-reference between the interim financial statements and some other statement that is

available to users of the financial statements on the same terms and at the same time.

The adoption of the Annual Improvements to MFRSs 2012 – 2014 Cycle is not expected to have any material

impact on the financial statements of the Bank.

The amendments to MFRS 101 aim to improve the presentation and disclosure in the financial statements and

are designed to encourage companies to apply professional judgement in determining what information to

disclose and how to structure it in their financial statements. Since the amendments only affect disclosures, the

adoption of these amendments is not expected to have any financial impact on the Bank.

10




MFRS 15 Revenue from Contracts with Customers

MFRS 9 Financial Instruments (2014)

Guidance issued by Bank Negara Malaysia ("BNM")

On 4 February 2014, Bank Negara Malaysia ("BNM") issued a letter requiring banking institutions to maintain,

in aggregate, collective impairment allowance and regulatory reserve of no less than 1.20% of total

outstanding financing, net of individual impairment allowance, pursuant to paragraph 13 of the BNM's Policy

Document on Classification and Impairment Provisions for Loans/Financing. The regulatory reserve is

maintained in addition to the collective impairment allowance required under MFRS, and it will be set aside

from the retained profits to a seperate reserve within equity as an additional credit risk absorbent. Banking

institutions are required to comply with this requirement by 31 December 2015. The adoption of this new

regulatory requirement is not expected to have any financial impact to the profit or loss of the Bank.

MFRS 15 establishes principles that an entity shall apply to report useful information about the nature, amount,

timing and uncertainty of revenue and cash flows arising from a contract with customers. The core

principle of MFRS 15 is that an entity recognises revenue in a manner which reflects the consideration an

entity expects to be entitled in exchange for goods or services. The adoption of MFRS 15 is not expected to

have any material impact on the financial statements of the Bank.

MFRS 9 introduces significant changes in the way the Bank accounts for financial instruments. Due to the

complexity of the standard and its requirements, the financial effects of its adoption are still being assessed by

the Bank.

The amendments to MFRS 10, MFRS 12 and MFRS 128 address issues that have arisen in the application of

the consolidation exception for investment entities and provide relief in certain circumstances. The

amendments clarify the exemption from preparing consolidated financial statements for an intermediate parent

entity, a subsidiary providing services that support parent's investment activities, application of the equity

method by a non-investment entity that has an interest in an associate or joint venture that is an investment

entity, and the disclosures required. The adoption of these amendments is not expected to have any impact on

the financial statements of the Bank.

This final version of MFRS 9 replaces all previous versions of MFRS 9. Retrospective application is required,

but comparative information is not compulsory. The standard introduces new requirements for classification

and measurement of financial instruments, impairment of financial assets and hedge accounting. The

approach for classification of financial assets is driven by cash flow characteristics and the business model in

which an asset is held with two measurement categories – amortised cost and fair value. For impairment,

MFRS 9 introduces an expected-loss impairment model which will require more timely recognition of expected

credit losses to reflect changes of credit risk of financial instruments. For hedge accounting, MFRS 9

establishes a more principle-based approach that aligns the accounting treatment with risk management

activities so that entities can reflect these activities in their financial statements. The standard does not

explicitly address macro hedge accounting, which is being considered in a separate project.

11




2. Auditors' Report on Preceding Annual Financial Statements

3. Performance Review and Outlook

OUTLOOK

The auditors' report on the audited annual financial statements for the financial year ended 31 March 2015 was

not qualified.

Global economic recovery is anticipated to continue in 2015 although at moderate pace with the rate of growth

varying across regions and countries. Although improvement is apparent in the US economy, slower paced

growth can be seen across the Euro area and Japan, while China, the emerging Asia’s growth engine,

recorded moderate growth as the country continued to rebalance its economy.

Despite the continuous challenging external environment, Malaysia is expected to maintain its growth at a

steady pace with real gross domestic product (GDP) likely to be within 4.5%-5.5%, lower than last year’s

growth of 6.0%. The slump in global oil prices is expected to slightly affect domestic export growth as well as

investment in the oil and gas industry. The Malaysian economy remains supported by continuous

implementation of the projects under the Economic Transformation Programme as well as major infrastructure

projects together with the revised 2015 Budget measures that aim to further sustain the development and the

resilience of the domestic economy. While private consumption is expected to moderate further with the

implementation of Goods and Services Tax (GST) in April 2015, it will be partially offset by stable labour

market and Government measures to assist low and middle income households.

The Islamic banking sector continues to be healthy and further strengthened supported by several initiatives

that aim to further enhance the vibrancy of the market and is expected to facilitate the Malaysian banking

growth as the Group believes the demand for these financial services will continue to be robust. The Islamic

banking industry is further enhanced with the introduction of the ASEAN Banking Integration Framework that

will pave way for a more integrated banking sector within the ASEAN region, another effort in realising the

vision of a single market for goods and services under the ASEAN Economic Community.

Looking ahead, the Group will further strengthen its efforts to increase its deposits base with current and

savings account remaining the priority. Focus to enhance non-financing income contribution will also continue

in the areas of trade finance, treasury activities, investment banking and Ar-rahnu.

In line with the government’s aspiration to develop Small and Medium Enterprises (SME) sector, the Group will

continue to improvise its product and service delivery to cater to the needs and expectations of the SMEs.

PERFORMANCE REVIEW

The Group posted an unaudited profit before zakat and taxation of RM43.8 million for the three months period

ended 30 June 2015, 18.5% lower from the previous corresponding period in 2014. The Group's recorded a

higher income from investment of depositor's and shareholders funds by RM24.0 million (8.8% growth year-on-

year). In addition, the Bank contained its overhead expenses which recorded lower by RM9.9 million as

compared to the same period last year.

The income attributable to depositors increased by RM25.7 million or 22.1% in line with increase in deposit

base by RM1.2 billion in the previous corresponding quarter.

Total assets of the Group stood at RM21.1 billion, lower from RM20.1 billion registered in March 2015 mainly

contributed by the lower cash and short-term funds, in line with the lower deposit from customers and lower

financial investments available-for-sale.

12



4. Financial Investments

30 June 31 March 30 June 31 March

2015 2015 2015 2015

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

(a) Financial investments designated at fair value

through profit or loss

Unquoted securities in Malaysia:

Private equity funds 126,532 118,654 122,432 114,554

Malaysian government investment certificates 2 2 2 2

Islamic private debt securities in Malaysia - 1 - 1

126,534 118,657 122,434 114,557

(b) Available-for-sale

At fair value, or at cost less impairment losses for certain financial investments:

30 June 31 March

2015 2015

At fair value RM'000 RM'000

Government securities and treasury bills:

Malaysian government investment certificates 2,768,707 2,968,370

Quoted securities in Malaysia:

Quoted shares 95,187 67,581

Unquoted securities:

Islamic private debt securities in Malaysia 2,801,748 3,273,616

Cagamas bonds 68,062 149,626

Foreign Islamic private debt securities and sukuk 32,298 35,438

2,902,108 3,458,680

Accumulated impairment loss (64,429) (64,358)

5,701,573 6,430,273

At cost

Unquoted securities:

Shares in Malaysia 5,131 5,206

Total available-for-sale securities 5,706,704 6,435,479

(c) Held-to-maturity

30 June 31 March

2015 2015

At amortised cost RM'000 RM'000

Unquoted Islamic private debt securities in Malaysia 139,203 139,042

Group and Bank

Group and Bank

Group Bank

13



5. Islamic Derivative Financial Instruments

Contract/ Contract/

notional Notional

amount Assets Liabilities Amount Assets Liabilities

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

Trading derivatives:

Foreign exchange contracts

- Currency forwards

Less than one year 491,895 35,021 (846) 388,499 33,163 (1,166)

- Currency swaps

Less than one year 1,016,105 11,373 (35,541) 1,489,564 10,901 (33,758)

- Currency spot

Less than one year 152,176 339 (396) 303,052 313 (461)

- Dual currency investment option - 2 (2) - 1 (1)

1,660,176 46,735 (36,785) 2,181,115 44,378 (35,386)

Islamic profit rate swap (IPRS)

Unhedged IPRS 2,175,000 - (2,088) 3,675,000 - (10,807)

Islamic Profit Rate Swap (IPRS)

Hedged IPRS 1,500,000 - (2,540) - - -

Total 5,335,176 46,735 (41,413) 5,856,115 44,378 (46,193)

Group and Bank

The table below shows the fair values of derivative financial instruments, recorded as assets or liabilities, together

with their notional amounts. The notional amount, recorded gross, is the amount of a derivative's underlying asset,

reference rate or index and is the basis upon which changes in the value of derivatives are measured. The

notional amounts indicate the volume of transactions outstanding at the period end and are indicative of neither

the market risk nor the credit risk.

31 March 2015

Fair value Fair value

30 June 2015

14

6175-W



DRAFT

30/09/2015

6. Financing of Customers

(i) By type and Shariah concepts

Ijarah

Bai' Thumma Bai' Shirkah Shirkah Total

Group Bithaman Ajil Ijarah Al-Bai Inah Tawarruq Al-Dayn Murabahah Istisna' Qard Mutanaqisah Al Milk Rahnu financing

30 June 2015 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Cash line 888 - - 18,112 791,128 - - - - - - - 810,128

Term financing: - - - - - - - - - - - -

Home financing 7,439,009 - - - 6,239,144 - - 9,572 - - - - 13,687,725

Syndicated financing - - - - 808,554 - 22,933 - - - - - 831,487

Hire purchase receivables - - 1,196,472 - - - - - - - - - 1,196,472

Leasing receivables - 12,345 - - - - - - - - - - 12,345

Other term financing 1,317,713 - - 610,971 6,522,967 - - 243,871 400 97,087 - - 8,793,009

Trust receipts - - - - - 955 50,858 - - - - - 51,813

Claims on customers - - - - - - - - - - - - -

under acceptance credits - - - - - 707,130 407 - - - - - 707,537

Staff financing 105,468 - - - 59,298 - - 1,497 2,197 - - - 168,460

Revolving credit - - - - 1,234,754 - - - - - - - 1,234,754

Sukuk - 51,041 - - - - 99,212 - - - - - 150,253

Ar-Rahnu - - - - - - - - - - - 50,400 50,400

8,863,078 63,386 1,196,472 629,083 15,655,845 708,085 173,410 254,940 2,597 97,087 - 50,400 27,694,383

Less : Unearned income (5,540,422) - (161,452) (95,840) (7,746,308) (6,899) (154) (100,389) (8) - - - (13,651,472)

Gross financing 3,322,656 63,386 1,035,020 533,243 7,909,537 701,186 173,256 154,551 2,589 97,087 - 50,400 14,042,911

Less : Allowance for impaired financing

Collective assessment (96,536) - (50,876) (2,606) (99,623) (1,815) (1,009) (167) (48) - - (2,449) (255,129)

Individual assessment (617) - (3,759) - (1,958) (34,371) (10,472) (15) (400) 6,000 - - (45,592)

Total net financing 3,225,503 63,386 980,385 530,637 7,807,956 665,000 161,775 154,369 2,141 103,087 - 47,951 13,742,190

6175-W



DRAFT

30/09/2015

6. Financing of Customers (cont'd.)

(i) By type and Shariah concepts (cont'd.)

Ijarah

Bai' Thumma Bai' Shirkah Shirkah Total

Group Bithaman Ajil Ijarah Al-Bai Inah Tawarruq Al-Dayn Murabahah Istisna' Qard Mutanaqisah Al Milk Rahnu financing

31 March 2015 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Cash line 922 - - 18,274 809,011 - - - - - - - 828,207

Term financing:

Home financing 7,572,097 - - - 5,666,687 - - 6,983 - - - - 13,245,767

Syndicated financing - - - - 774,016 - 6,894 - - - - - 780,910

Hire purchase receivables - - 1,245,318 - - - - - - - - - 1,245,318

Leasing receivables - 12,596 - - - - - - - - - - 12,596

Other term financing 1,359,910 - - 628,228 6,253,410 - - 254,969 400 89,315 20,000 - 8,606,232

Trust receipts - - - - - - 51,295 - - - - - 51,295

Claims on customers

under acceptance credits - - - - - 761,607 - - - - - - 761,607

Staff financing 110,907 - - - 48,179 - - 1,412 456 - - - 160,954

Revolving credit - - - - 1,067,892 - - - - - - - 1,067,892

Sukuk - 50,270 - - - - 97,791 - - - - - 148,061

Ar-Rahnu - - - - - - - - - - - 46,907 46,907

9,043,836 62,866 1,245,318 646,502 14,619,195 761,607 155,980 263,364 856 89,315 20,000 46,907 26,955,746

Less : Unearned income (5,640,774) - (170,871) (106,949) (7,230,815) (6,458) (610) (102,733) (8) - - - (13,259,218)

Gross financing 3,403,062 62,866 1,074,447 539,553 7,388,380 755,149 155,370 160,631 848 89,315 20,000 46,907 13,696,528


Collective assessment (93,099) - (46,057) (2,536) (91,843) (1,733) (775) (33) (336) - - (2,815) (239,227)

Individual assessment (732) - - - (23,327) (13,412) (4,746) (14) (6,400) 6,000 - - (42,631)

Total net financing 3,309,231 62,866 1,028,390 537,017 7,273,210 740,004 149,849 160,584 (5,888) 95,315 20,000 44,092 13,414,670

6175-W



DRAFT

30/09/2015



Ijarah

Bai' Thumma Bai' Total

Bank Bithaman Ajil Ijarah Al-Bai Inah Tawarruq Al-Dayn Murabahah Istisna' Qard Rahnu financing

30 June 2015 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Cash line 888 - - 18,112 791,128 - - - - - 810,128

Term financing:

Home financing 7,439,009 - - - 6,239,144 - - 9,572 - - 13,687,725

Syndicated financing - - - - 808,554 - 22,933 - - - 831,487

Hire purchase receivables - - 1,196,472 - - - - - - - 1,196,472

Leasing receivables - 12,345 - - - - - - - - 12,345

Other term financing 1,317,713 - - 610,971 6,522,968 - - 243,871 107,870 - 8,803,393

Trust receipts - - - - - 955 50,858 - - - 51,813

Claims on customers - - - - - - - - - - -

under acceptance credits - - - - - 707,130 407 - - - 707,537

Staff financing 105,468 - - - 59,298 - - 1,497 2,197 - 168,460

Revolving credit - - - - 1,234,754 - - - - - 1,234,754

Sukuk - 51,041 - - - - 99,212 - - - 150,253

Ar-Rahnu - - - - - - - - - 50,400 50,400

8,863,078 63,386 1,196,472 629,083 15,655,846 708,085 173,410 254,940 110,067 50,400 27,704,767

Less : Unearned income (5,540,422) - (161,452) (95,840) (7,746,308) (6,899) (154) (100,389) (8) - (13,651,472)

Gross financing 3,322,656 63,386 1,035,020 533,243 7,909,538 701,186 173,256 154,551 110,059 50,400 14,053,295


Collective assessment (96,536) - (50,876) (2,606) (99,623) (1,815) (1,009) (167) (48) (2,449) (255,129)

Individual assessment (617) - (3,759) - (1,958) (34,371) (10,472) (15) (400) - (51,592)

Total net financing 3,225,503 63,386 980,385 530,637 7,807,957 665,000 161,775 154,369 109,611 47,951 13,746,574

6175-W



DRAFT

30/09/2015



Ijarah

Bai' Thumma Bai' Total

Bank Bithaman Ajil Ijarah Al-Bai Inah Tawarruq Al-Dayn Murabahah Istisna' Qard Rahnu financing

31 March 2015 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

Cash line 922 - - 18,274 809,011 - - - - - 828,207

Term financing:

Home financing 7,572,097 - - - 5,666,687 - - 6,983 - - 13,245,767

Syndicated financing - - - - 774,016 - 6,894 - - - 780,910

Hire purchase receivables - - 1,245,318 - - - - - - - 1,245,318

Leasing receivables - 12,596 - - - - - - - - 12,596

Other term financing 1,359,910 - - 628,228 6,253,410 - - 254,969 126,898 - 8,623,415

Trust receipts - - - - - - 51,295 - - - 51,295

Claims on customers

under acceptance credits - - - - - 761,607 - - - - 761,607

Staff financing 110,907 - - - 48,179 - - 1,412 456 - 160,954

Revolving credit - - - - 1,067,892 - - - - - 1,067,892

Sukuk - 50,270 - - - - 97,791 - - - 148,061

Ar-Rahnu - - - - - - - - - 46,907 46,907

9,043,836 62,866 1,245,318 646,502 14,619,195 761,607 155,980 263,364 127,354 46,907 26,972,929

Less : Unearned income (5,640,774) - (170,871) (106,949) (7,230,815) (6,458) (610) (102,733) (8) - (13,259,218)

Gross financing 3,403,062 62,866 1,074,447 539,553 7,388,380 755,149 155,370 160,631 127,346 46,907 13,713,711


Collective assessment (93,099) - (46,057) (2,536) (91,843) (1,733) (775) (33) (336) (2,815) (239,227)

Individual assessment (732) - - - (23,327) (13,412) (4,746) (14) (6,400) - (48,631)

Total net financing 3,309,231 62,866 1,028,390 537,017 7,273,210 740,004 149,849 160,584 120,610 44,092 13,425,853




(a) By type


2015 2015 2015 2015

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

Cash line 810,128 828,207 810,128 828,207

Term financing:

Home financing 13,687,725 13,245,767 13,687,725 13,245,767

Syndicated financing 831,487 780,910 831,487 780,910

Hire purchase receivables 1,196,471 1,245,318 1,196,471 1,245,318

Leasing receivables 12,345 12,596 12,345 12,596

Other term financing 8,793,009 8,606,232 8,803,393 8,623,415

Trust receipts 51,813 51,295 51,813 51,295

Claims on customers under

acceptance credits 707,537 761,607 707,537 761,607

Staff financing 168,460 160,954 168,460 160,954

Revolving credit 1,234,754 1,067,892 1,234,754 1,067,892

Sukuk 150,254 148,061 150,254 148,061

Ar-Rahnu 50,400 46,907 50,400 46,907

27,694,383 26,955,746 27,704,767 26,972,929

Less : Unearned income (13,651,472) (13,259,218) (13,651,472) (13,259,218)

Gross financing 14,042,911 13,696,528 14,053,295 13,713,711


Collective assessment (255,129) (239,227) (255,129) (239,227)

Individual assessment (45,592) (42,631) (51,592) (48,631)

Total net financing 13,742,190 13,414,670 13,746,574 13,425,853

(b) By contract


2015 2015 2015 2015

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

Bai' Bithaman Ajil (deferred payment sale) 3,322,651 3,403,062 3,322,651 3,403,062

Ijarah (lease) 63,387 62,866 63,387 62,866

Ijarah Thumma Al-Bai 1,035,020 1,074,447 1,035,020 1,074,447

(lease ended with purchase)

Inah (sale and buyback) 533,243 539,553 533,243 539,553

Tawarruq (commodity murabahah) 7,909,541 7,388,380 7,909,541 7,388,380

Bai' Al-Dayn (purchase of debt) 701,187 755,149 701,187 755,149

Murabahah (cost-plus) 173,256 155,370 173,256 155,370

Istisna' (sale order) 154,550 160,631 154,550 160,631

Qard (benevolent loan) 2,589 848 110,060 127,346

Shirkah Mutanaqisah (diminishing

partnership)/ Musharakah (profit sharing) 97,085 89,315 - -

Shirkah Al Milk (ownership) - 20,000 - -

Rahnu (Trustee) 50,400 46,907 50,400 46,907

Gross financing 14,042,911 13,696,528 14,053,295 13,713,711

Group Bank

Group Bank

19




(c) By type of customer


2015 2015 2015 2015

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

Domestic non-banking institutions 501,187 356,455 501,187 356,455

Domestic business enterprises:

-Small business enterprises 171,180 212,759 171,180 212,759

-Others 3,650,634 3,581,803 3,661,018 3,598,986

Government and statutory bodies 548,867 557,079 548,867 557,079

Individuals 9,128,126 8,960,937 9,128,126 8,960,937

Other domestic entities 3,930 3,954 3,930 3,954

Foreign entities 38,987 23,541 38,987 23,541

Gross financing 14,042,911 13,696,528 14,053,295 13,713,711

(d) By profit rate sensitivity


2015 2015 2015 2015

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

Fixed rate:

Home financing 775,700 774,398 775,700 774,398

Hire purchase receivables 1,035,020 1,074,447 1,035,020 1,074,447

Others 3,960,909 3,836,881 3,971,293 3,854,064

Variable rate:

Home financing 3,512,539 3,384,224 3,512,539 3,384,224

Others 4,758,743 4,626,578 4,758,743 4,626,578

Gross financing 14,042,911 13,696,528 14,053,295 13,713,711

(e) By residual contractual maturity


2015 2015 2015 2015

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

Maturity

- within one year 3,344,972 3,206,734 3,344,972 3,206,734

- more than one to five years 4,567,189 4,534,936 4,567,189 4,534,936

- more than five years 6,130,750 5,954,858 6,141,134 5,972,041

Gross financing 14,042,911 13,696,528 14,053,295 13,713,711

Group Bank

Group

Group Bank

Bank

20




(f) By sector


2015 2015 2015 2015

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

Agriculture 124,665 125,784 124,665 125,784

Mining & Quarrying 28,711 29,948 28,711 29,948

Manufacturing 615,240 664,091 615,240 664,091

Electricity, gas and water 101,482 113,226 101,482 113,226

Construction 451,878 408,301 451,878 408,301

Household 9,172,736 8,975,089 9,172,736 8,975,089

Real estate 777,759 746,721 777,759 746,721

Wholesale' retail and restaurant 703,182 634,050 713,982 644,850

Transport, storage and communication 391,234 424,975 391,234 424,975

Finance, takaful and business services 857,969 743,588 857,969 748,588

Purchase of transport vehicles 13,567 22,817 13,567 22,817

Consumption credit 2,151 408 2,151 408

Community,social and personal services 257,179 255,884 256,763 257,267

Government and statutory bodies 545,158 551,646 545,158 551,646

Gross financing 14,042,911 13,696,528 14,053,295 13,713,711

Group Bank

21



6. Financing Of Customers (cont'd.)

(g) By geographical area


2015 2015 2015 2015

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

Domestic 14,020,132 13,689,634 14,030,516 13,706,817

Labuan Offshore 22,779 6,894 22,779 6,894

Gross financing 14,042,911 13,696,528 14,053,295 13,713,711

Impaired Financing

(a) Movements in the impaired financing


2015 2015 2015 2015

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

At beginning of period 339,714 325,706 345,714 331,706

Classified as impaired during the period 133,933 434,643 133,933 434,643

Reclassified as performing during the period (61,958) (281,202) (61,958) (281,202)

Recovered during the period (20,436) (75,987) (20,436) (75,987)

Written off during the period - (63,446) - (63,446)

At end of period 391,253 339,714 397,253 check 345,714

Ratio of gross impaired financing

to total financing 2.79% 2.48% 2.83% 2.52%

(b) Movements in the allowance for impaired financing


2015 2015 2015 2015

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

Collective assessment

allowance

At beginning of period, as previously stated 239,227 195,951 239,227 195,951

Allowance made during the period 121,157 492,392 121,157 492,392

Amount written-back (105,255) (447,742) (105,255) (447,742)

Amount written-off - (1,374) - (1,374)

At end of period 255,129 239,227 255,129 239,227

As % of gross financing, less individual

assessment allowance 1.82% 1.75% 1.82% 1.75%

Group Bank

Group Bank

Group Bank

22



6. Financing Of Customers (cont'd.)

Impaired Financing (cont'd.)

(b) Movements in the allowance for impaired financing (cont'd.)


2015 2015 2015 2015

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

Individual assessment

allowance

At beginning of period 42,631 74,492 48,631 80,492

Allowance made during the period 3,833 36,636 3,833 36,636

Amount written-back (872) (6,929) (872) (6,929)

Amount written-off - (61,568) - (61,568)

At end of period 45,592 42,631 51,592 48,631

(c) Impaired financing by sector


2015 2015 2015 2015

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

Agriculture 44 25 44 25

Manufacturing 81,636 81,479 81,636 81,479

Construction 17,334 17,263 17,334 17,263

Household 254,905 201,332 254,905 201,332

Wholesale and retail and restaurant 11,138 11,881 17,138 17,881

Transport, storage and communication 18,626 22,945 18,626 22,945

Finance, takaful and business services 5,065 2,530 5,065 2,530

Purchase of transport vehicles 895 1,041 895 1,041

Community, social and personal service 1,610 1,218 1,610 1,218

391,253 339,714 397,253 345,714

(d) Impaired financing by geographical area


2015 2015 2015 2015

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

Domestic 391,252 339,714 397,252 345,714

Labuan Offshore - - - -

391,252 339,714 397,252 345,714

Bank

Group Bank

Group Bank

Group

23



7. Other Assets


2015 2015 2015 2015

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

Deposits 11,871 10,620 11,840 10,587

Prepayments 1,412 1,805 1,307 1,702

Tax prepayment 13,103 20,162 13,103 20,162

Amount due from subsidiaries - - 112 75

Foreclosed properties - - - -

Golf club membership 600 600 600 600

GST input tax 521 - 517 -

Other debtors 68,373 63,275 65,371 62,587

95,880 96,462 92,850 95,713

8. Deferred Tax (Liabilities)/Assets

30 June 31 March

2015 2015

RM'000 RM'000

At beginning of the period (18,947) 12,786

Recognised in the income statement (4,465) (25,076)

Recognised in the equity 2,252 (6,657)

At end of the period (21,160) (18,947)

30 June 31 March

2015 2015

RM'000 RM'000

Deferred tax liabilities (21,160) (18,947)

Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets

against current tax liabilities and when the deferred income taxes relate to the same fiscal authority. The

following amounts, determined after appropriate offsetting, are shown in the statement of financial position:

Group and Bank

Group and Bank

BankGroup

24



8. Deferred Tax (Liabilities)/Assets (cont'd.)

Deferred tax assets of the Group and the Bank:

Allowance Provision Other

for impaired for temporary

financing liabilities differences Total

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

At 1 April 2014 9,945 6,263 256 16,464

Recognised in income statement - 4,490 42 4,532

Recognised in equity (6,657) - - (6,657)

At 30 June 2014 3,288 10,753 298 14,339

At 1 April 2015 3,288 10,753 298 14,339

Recognised in income statement - (3,152) (57) (3,209)

Recognised in equity 2,252 - - 2,252

At 30 June 2015 5,540 7,601 241 13,382

Deferred tax liabilities of the Group and the Bank:

Property,

plant and

equipment Total

RM'000 RM'000

At 1 April 2014 (3,678) (3,678)

Recognised in income statement (29,608) (29,608)

At 30 June 2014 (33,286) (33,286)

At 1 April 2015 (33,286) (33,286)

Recognised in income statement (1,257) (1,257)

At 30 June 2015 (34,543) (34,543)

The components and movements of deferred tax assets and liabilities during the financial period prior to

offsetting are as follows:

25



9. Deposits from Customers

(a)By type of deposits


2015 2015 2015 2015

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

Saving Deposit

Wadiah 1,127,572 460,847 1,127,572 460,847

Mudharabah - 679,344 - 679,344

Demand Deposit

Wadiah 3,077,670 2,676,732 3,078,923 2,693,492

Mudharabah - 939,517 - 939,517

Term Deposit

Negotiable Islamic

debt certificate 1,640,858 2,278,335 1,640,858 2,278,335

General investment

deposits 222,492 691,209 236,192 696,509

Special general investment

deposits 1,690,796 2,241,733 1,690,796 2,241,733

Fixed term accounts

tawarruq 10,414,769 9,528,069 10,414,769 9,528,069

Others Deposit 43,211 48,763 43,210 48,763

18,217,368 19,544,549 18,232,320 19,566,609

(b) By type of customer


2015 2015 2015 2015

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

Government and statutory bodies 6,389,277 6,497,806 6,389,277 6,497,806

Business enterprises 6,455,306 6,371,361 6,470,258 6,393,421

Individuals 1,445,994 1,431,256 1,445,994 1,431,256

Others 3,926,791 5,244,126 3,926,791 check 5,244,126

18,217,368 19,544,549 18,232,320 19,566,609


2015 2015 2015 2015

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

Due within six months 13,180,013 13,637,775 13,193,713 13,643,075

More than six months to one year 786,400 1,085,279 786,400 1,085,279

More than one year to three years 2,163 15,937 2,163 15,937

More than three year to five years 339 355 339 355

13,968,915 14,739,346 13,982,615 14,744,646

Group Bank

Bank

Bank

The maturity structure of negotiable instruments of deposit, mudharabah general, special investment deposit

and fixed term account are as follows :

Group

Group

26



10. Deposit and Placements of Banks and Other Financial Institutions

30 June 31 March

2015 2015

RM'000 RM'000

Non Mudharabah

Bank Negara Malaysia 338,516 8,164

338,516 8,164

Mudharabah

Licensed banks 150,219 400,672

488,735 408,836

11. Other Liabilities


2015 2015 2015 2015

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

Sundry creditors 3,952 1,665 3,951 1,665

Provision for commitments and contingencies 8,162 8,162 8,162 8,162

Accrual for bonus 6,284 - 6,284 -

Accrual for Voluntary Separation Scheme 1,110 20,000 1,110 20,000

Accrued expenses 15,358 14,717 14,947 15,264

Accrual for directors' fees 756 609 756 609

Accrual for audit fees 436 788 416 772

GST output tax 297 - 274 -

Others 5,966 40,598 5,967 40,599

42,321 86,538 41,867 87,071

12. Provision for Zakat and Taxation


2015 2015 2015 2015

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

Zakat 1,486 3,658 1,215 3,436

Taxation 253 843 - -

1,739 4,501 1,215 3,436

13. Subordinated Sukuk

Bank

Group

Group

Subordinated sukuk as at 31 March 2015 relates to a RM400 million Tier-2 Capital Islamic Subordinated Sukuk

issued on 15 June 2011.The sukuk carries a tenure of 10 years from the issue date on a 10 non-callable 5 basis

feature with a profit rate of 5.15% per annum.

Should the Bank decide not to exercise its option to redeem the sukuk, the sukuk holders will be entitled to a

replacement of other capital instrument of the same or better quality and such replacement of capital shall be

done prior to or concurrent with the redemption of the sukuk. The RM400 million sukuk qualifies as Tier-2 capital

for the purpose of Bank Negara Malaysia capital adequacy requirement.

Group and Bank

Bank

27



14. Income Derived from Investment of Depositors' Funds and Others


2015 2014 2015 2014

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

Income derived from investment of:

(a) General investment deposits 180,655 150,604 180,655 150,604

(b) Other deposits 86,500 108,810 86,500 108,810

267,155 259,414 267,155 259,414

(a) Income derived from investment of general investment deposits


2015 2014 2015 2014

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

Finance income and hibah

Income from financing 135,099 109,381 135,099 109,381

Financial investment held-for-trading 11 5 11 5

Financial investments held-for-maturity 197 746 197 746

Financial investments available-for-sale 35,393 31,208 35,393 31,208

Money at call and deposit with


174,849 144,830 174,849 144,830

(Amortisation of premium)/

accretion of discounts (1,162) 235 (1,162) 235

Total finance income and hibah 173,687 145,065 173,687 145,065

Other operating income

Net gain from sale of:

- financial investments held-for-trading 176 78 176 78

- financial investments available-for-sale 1,648 511 1,648 511

1,824 589 1,824 589

Fees and commission

Guarantee fees 504 464 504 464

Safekeeping fees 1,047 - 1,047 -

Processing fees 599 1,054 599 1,054

Service charges and fees 2,181 1,459 2,181 1,459

Commission 813 1,973 813 1,973

5,144 4,950 5,144 4,950

Total 180,655 150,604 180,655 150,604

Of which :

Financing loss earned on

impaired financing - (1,485) - (1,485)

Group Bank

BankGroup

28



14. Income Derived from Investment of Depositors' Funds and Others (cont'd.)

(b) Income derived from investment of other deposits


2015 2014 2015 2014

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


Income from financing 64,688 79,027 64,688 79,027

Financial investment held-for-trading 5 3 5 3

Financial investments held-for-maturity 94 539 94 539




83,721 104,638 83,721 104,638

(Amortisation of premium)/

accretion of discounts (556) 170 (556) 170



Net gain from sale of:

- financial investments held-for-trading 84 56 84 56

- financial investments available-for-sale 789 370 789 370

873 426 873 426

Fees and commission

Guarantee fees 241 335 241 335

Safekeeping fees 501 - 501 -

Processing fees 287 762 287 762

Service charges and fees 1,044 1,054 1,044 1,054

Commission 389 1,426 389 1,426

2,462 3,577 2,462 3,577

Total 86,500 108,810 86,500 108,810

Of which :

Financing loss earned on

impaired financing - (1,073) - (1,073)

Group Bank

29



15. Income Derived from Investment of Shareholders' Funds


2015 2014 2015 2014

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




financial institutions 285 341 285 341

5,772 6,151 5,772 6,151

Accretion of discounts 800 1,888 800 1,888



Net gain from foreign exchange

transaction 4,006 6,803 4,006 6,803

Net gain/(loss) on revaluation from

foreign exchange derivatives 958 (6,826) 958 (6,826)


investment available-for-sale 322 860 322 860

Gross dividend income from investment:

-unquoted in Malaysia 1,612 1,612 1,612 1,612

Net dividend paid for Islamic profit

rate swap (188) (2,050) (188) (2,050)

Unrealised gain on revaluation

of Islamic profit rate swap 6,178 1,195 6,178 1,195

Unrealised gain on revaluation

from hedged items 4,955 443 4,955 443

17,843 2,037 17,843 2,037

Fees and commission

Guarantee fees - - - -

Processing fees - - - -

Corporate advisory fees 1,595 1,288 988 675

Service charges and fees 2,035 1,188 48 82

Commission 1,042 290 1,042 290

Others - 15 - 15

4,672 2,781 2,078 1,062

Other income

Rental income 175 116 175 116

Loss on sale of property, plant

and equipment - (1) - (1)

175 115 175 115

Total 29,262 12,972 26,668 11,252

Group Bank

30



16. Allowance for Impairment on Financing


2015 2014 2015 2014

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

on financing

(a) Individual assessment allowance

Made during the period 3,833 22,132 3,833 22,132

Written back during the period (872) (1,409) (872) (1,409)

2,961 20,723 2,961 20,723

(b) Collective assessment allowance

Made during the period 121,158 95,935 121,158 95,935

Written back during the period (105,255) (79,192) (105,255) (79,192)

15,903 16,743 15,903 16,743

Bad debts on financing:

Written off 1,104 1,042 1,104 1,042

Recovered (1,824) (15,404) (1,824) (15,404)

18,144 23,104 18,144 23,104

17. Impairment Writeback on Investments


2015 2014 2015 2014

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

Impairment writeback on corporate

bonds included under available-for-sale

financial investments - (28,621) - (28,621)

- (28,621) - (28,621)

Allowance for/(writeback of) impairment

Group Bank

Group Bank

31



18. Income Attributable to Depositors


2015 2014 2015 2014

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

Deposits from customers:

Mudharabah funds 15,958 90,326 16,001 90,368

Non-Mudharabah funds 121,095 21,389 121,104 21,391

Deposits and placements of banks

and other financial institutions:

Mudharabah funds 4,617 4,225 4,617 4,225

Non-Mudharabah funds - 62 - 62

141,670 116,002 141,722 116,046

19. Personnel expenses


2015 2014 2015 2014

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

Salary and wages 32,309 38,686 31,825 38,242

Contribution to defined

contribution plan 6,411 7,512 6,337 7,443

Social security contributions 283 304 283 304

Allowances and bonuses 6,229 9,093 6,187 8,922

Mutual Separation Scheme - 33 - 33

Others 4,671 6,508 4,661 6,487

49,903 62,136 49,293 61,431

BankGroup

BankGroup

32



20. Other overheads and expenditures


2015 2014 2015 2014

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

Promotion

Advertisement and publicity 2,452 3,390 2,452 3,378

Others 1,463 1,319 1,460 1,318

Establishment

Rental 2,812 2,575 2,782 2,545

Depreciation 5,282 4,110 5,272 4,056

Amortisation of intangible assets 5,477 1,818 5,429 1,818

Amortisation of prepaid land

lease payment 1 1 1 1

Information technology expenses 7,923 10,297 7,923 10,297

Repair and maintenance 579 479 579 479

Hire of equipment 1,022 1,623 946 1,516

Takaful 2,537 780 2,537 780

Utilities expenses 1,281 1,796 1,272 1,785

Security expenses 2,220 2,023 2,220 2,023

Others 756 672 756 672

General expenses

Auditors' fees 86 88 86 88

Professional fees 364 849 351 832

Legal expenses 338 413 338 413

Telephone 397 557 396 556

Stationery and printing 502 511 499 508

Postage and courier 301 411 301 411

Travelling 745 1,514 741 1,477

Directors remuneration

and Shariah Committee

allowance 986 1,072 976 1,062

Others 2,252 2,122 2,425 2,501

39,776 38,420 39,742 38,515

Group Bank

33



21. Zakat


2015 2014 2015 2014

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

Provision for zakat for the year 949 1,385 900 1,313

Over provision in prior year - - - -

949 1,385 900 1,313

22. Taxation


2015 2014 2015 2014

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

Current income tax 7,981 13,191 7,496 13,067

Under provision in prior year - - - -

7,981 13,191 7,496 13,067

Deferred tax:

Relating to origination and reversal

of temporary differences 4,465 (182) 4,465 (182)

Under provision in prior years - (5,967) - (5,967)

4,465 (6,149) 4,465 (6,149)

12,446 7,042 11,961 6,918

Group

Group

Domestic current income tax is calculated at the statutory tax rate of 24% (2014: 25%) of the estimated

assessable profit for the period.

Bank

Bank

Income tax expense is recognised in each interim period based on the best estimate of the annual income tax rate

expected for the full financial year. The effective tax rate for the current interim period was higher than the

statutory tax rate principally due to certain expenses which are not deductible for tax purposes.

34



23. Credit Exposures Arising from Credit Transactions with Connected Parties

30 June 31 March

2015 2015

RM'000 RM'000

Outstanding credit exposures with connected parties (RM'000) 1,610,380 1,331,310

Percentage of outstanding credit exposures to connected parties

as proportion of total credit exposures 5.9% 5.5%

Group and Bank

The credit exposures above are derived on Bank Negara Malaysia's revised Guidelines on Credit Transactions

and Exposures with Connected Parties for Islamic Banks, which are effective on 16 July 2014.

The credit transactions with connected parties above are all transacted on an arm’s length basis and on terms and

conditions no more favourable than those entered into with other counterparties with similar circumstances and

credit worthiness. Due care has been taken to ensure that the credit worthiness of the connected party is not less

than that normally required of other persons.

Credit transactions and exposures to connected parties as disclosed above includes the extension of credit

facilities and/or off-balance sheet credit exposures such as guarantees, trade-related facilities and financing

commitments. It also includes holdings of equities and private debt securities issued by the connected parties.

35



24. Commitments and Contingencies

Risk weighted exposures of the Group and the Bank are as follows:

Credit Risk

Principal Equivalent Weighted

Amount Amount Assets

RM'000 RM'000 RM'000

The commitments and contingencies

constitute the following:

Contingent liabilities

Direct credit substitutes 63,518 63,518 63,028

Trade-related contingencies 8,320 1,664 1,021

Transaction related contingencies 260,296 130,148 129,847

Commitments

Credit extension commitment:

Maturity within one year 1,005,635 201,127 187,646

Maturity exceeding one year 2,051,980 1,025,990 260,219

Islamic derivative financial instruments

Foreign exchange related contracts 1,660,175 71,031 50,862

Profit rate related contracts 3,675,000 82,818 16,564

8,724,925 1,576,296 709,187

30 June 2015

Group and Bank

In the normal course of business, the Bank makes various commitments and incurs certain contingent liabilities

with legal recourse to its customers. No material losses are anticipated as a result of these transactions.

36



24. Commitments and Contingencies (cont'd.)

Credit Total Risk

Principal Equivalent Weighted

Amount Amount Amount

RM'000 RM'000 RM'000

The commitments and contingencies

constitute the following:

Contingent liabilities

Direct credit substitutes 62,225 62,225 62,072

Trade-related contingencies 18,829 3,766 2,810

Transaction related contingencies 246,641 123,320 122,737

Commitments

Credit extension commitment:

Maturity within one year 1,261,070 252,214 229,846

Maturity exceeding one year 2,010,431 1,005,215 240,756

Islamic derivative financial instruments

Foreign exchange related contracts 2,181,115 67,921 44,486

Profit rate related contracts 3,675,000 89,596 17,920

9,455,311 1,604,257 720,627

31 March 2015

Group and Bank

37



25. Capital Adequacy

(a) The capital adequacy ratio of the Group/Bank is as follows:


2015 2015 2015 2015

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

Computation of Total Risk

Weighted Assets ("RWA")

Total credit RWA 12,970,035 12,774,186 12,917,936 12,724,994

Total market RWA 93,614 85,435 93,614 85,435

Total operational RWA 1,052,572 1,052,745 1,040,226 1,041,853

Total RWA 14,116,220 13,912,366 14,051,775 13,852,282

Computation of Capital Ratio

Tier-I capital

Paid-up ordinary share capital 1,195,000 1,195,000 1,195,000 1,195,000

Retained profits 155,258 155,258 147,177 147,177

Other Reserves

Statutory reserve 515,612 515,612 514,015 514,015

Unrealised losses on available

for-sale financial instruments (17,715) (10,592) (17,715) (10,592)

Foreign exchange translation

reserve (1,061) (584) (1,061) (584)

Regulatory Adjustment

Less: Deferred tax assets (net) - - - -

Less: Investment in subsidiaries - - (6,384) (6,384)

Total Common Equity Tier-I Capital 1,847,094 1,854,694 1,831,032 1,838,632

Total Tier-I Capital 1,847,094 1,854,694 1,831,032 1,838,632

Tier-II capital

Subordinated sukuk 280,630 284,239 280,630 284,239

Collective assessment

allowance* 80,716 103,704 80,716 103,704

Total Tier-II Capital 361,346 387,943 361,346 387,943

Total Capital Base 2,208,440 2,242,637 2,192,379 2,226,575

CET1 Capital 1,847,094 1,854,694 1,831,032 1,838,632

Tier 1 Capital 1,847,094 1,854,694 1,831,032 1,838,632

Total Capital 2,208,440 2,242,637 2,192,379 2,226,575

Ratio (%)

CET 1 Capital 13.1% 13.3% 13.0% 13.3%

Tier 1 Capital 13.1% 13.3% 13.0% 13.3%

Total Capital 15.6% 16.1% 15.6% 16.1%

BankGroup

38



25. Capital Adequacy (cont'd.)

(b) Credit risk disclosure by risk weights of the Group are as follows :

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

0% 5,318,744 - 6,128,593 -

20% 2,753,059 550,612 3,878,573 775,715

35% 1,297,337 454,068 1,340,013 469,005

50% 1,004,388 502,194 782,980 391,490

75% 3,676,350 2,757,263 3,524,308 2,643,231

100% 8,434,633 8,434,633 8,200,532 8,200,532

150% 180,844 271,266 196,142 294,213

Risk weighted assets for

credit risk 22,665,355 12,970,036 24,051,141 12,774,186


market risk 93,614 85,435


operational risk 1,052,572 1,052,745

Total risk weighted assets 14,116,222 13,912,366

With effect from 1 January 2013, the total capital and capital adequacy ratios of the Bank are

computed in accordance with Bank Negara Malaysia's Capital Adequacy Framework for Islamic

Banks (Capital Components and Basel II - Risk-weighted Assets) dated 28 November 2012. The

Group and Bank have adopted the Standardised Approach for Credit Risk and Market Risk, and the

Basic Indicator Approach for Operational Risk. In line with the transitional arrangements under the

Bank Negara Malaysia's Capital Adequacy Framework (Capital Components), the minimum capital

adequacy requirement for Common Equity Tier I capital ratio and Tier I capital ratio are 4.5% and

6.0% respectively for the current period. The minimum regulatory capital adequacy requirement

remains at 8.0% (31 March 2015: 8.0%) for total capital ratio.

The current year's core capital ratios and risk-weighted capital ratios were computed using reported

amounts which form part of the current year financial statements which have been prepared in

accordance with MFRS.

31 March30 June

Group

RM'000 RM'000

2015 2015

Total

exposures

after netting

and credit risk

mitigation

Total risk

weighted

assets

Total

exposures

after netting

and credit risk

mitigation

Total risk

weighted

assets

39



25. Capital Adequacy (cont'd.)

(b) Credit risk disclosure by risk weights of the Group are as follows :

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

0% 5,318,744 - 6,128,593 -

20% 2,753,059 550,612 3,878,573 775,715

35% 1,297,337 454,068 1,340,013 469,005

50% 1,004,388 502,194 782,980 391,490

75% 3,676,350 2,757,262 3,524,308 2,643,231

100% 8,528,164 8,528,164 8,315,312 8,315,312

150% 83,758 125,636 86,827 130,241


credit risk 22,661,800 12,917,937 24,056,606 12,724,994


market risk 93,614 85,435


operational risk 1,040,226 1,041,853

Total risk weighted assets 14,051,777 13,852,282

RM'000

31 March

RM'000

20152015

Bank

Total

exposures

after netting

and credit risk

mitigation

Total risk

weighted

assets

Total

exposures

after netting

and credit risk

mitigation

Total risk

weighted

assets

30 June

40



26. Fair values of financial instruments

(a) Financial instruments measured at fair value

Determination of fair value and the fair value hierarchy

MFRS 7 Financial Instruments: Disclosures requires the classification of financial

instruments held at fair value according to a hierarchy that reflects the significance of inputs

used in making the measurements, in particular, whether the inputs used are observable or

unobservable. The following levels of hierarchy are used for determining and disclosing the

fair value of financial instruments:

Level 1 - quoted market prices: quoted prices (unadjusted) in active markets for identical

instruments;

Level 2 - valuation techniques based on observable inputs: inputs other than quoted prices

included within Level 1 that are observable for the instrument, whether directly (ie. prices) or

indirectly (ie. derived from prices), are used; and

Level 3 - valuation techniques using significant unobservable inputs: inputs used are not

based on observable market data and the unobservable inputs have a significant impact on

the instrument's valuation.

Where such quoted and observable market prices are not available, fair values are

determined using appropriate valuation techniques, which include the use of mathematical

models, such as discounted cash flow models and option pricing models, comparison to

similar instruments for which market observable prices exist and other valuation techniques.

The objective of valuation techniques is to arrive at a fair value determination that reflects

the price of the financial instrument at the reporting date, that would have been determined

by market participants acting at arm's length. Valuation techniques used incorporate

assumptions regarding discount rates, profit rate yield curves, estimates of future cash flows

and other factors. Changes in these assumptions could materially affect the fair values

derived. The Bank generally uses widely recognised valuation techniques with market

observable inputs for the determination of fair value, which require minimal management

judgement and estimation, due to the low complexity of the financial instruments held.

41



26. Fair values of financial instruments (cont'd.)

(a) Financial instruments measured at fair value (cont'd.)

Determination of fair value and the fair value hierarchy (cont'd.)

Quoted Observable Unobservable

Group Market Price Inputs Inputs

Level 1 Level 2 Level 3 Total

30 June 2015 RM'000 RM'000 RM'000 RM'000

Financial assets

Financial investments

designated at fair value

through profit and loss - 2 126,530 126,532


available-for-sale 95,187 5,587,018 24,499 5,706,704

Derivative financial assets - 46,735 - 46,735

Total financial assets

measured at fair value 95,187 5,633,755 151,029 5,879,971

Financial liabilities

Derivative financial liabilities - 41,413 - 41,413

Total financial liabilities

measured at fair value - 41,413 - 41,413

The following table shows the financial instruments which are measured at fair value at the

reporting date analysed by the various level within the fair value hierarchy:

Valuation technique using

42







Group (cont'd.) Market Price Inputs Inputs


31 March 2015 RM'000 RM'000 RM'000 RM'000

Financial assets














Bank Market Price Inputs Inputs


30 June 2015 RM'000 RM'000 RM'000 RM'000

Financial assets















43







Bank (cont'd.) Market Price Inputs Inputs


31 March 2015 RM'000 RM'000 RM'000 RM'000

Financial assets














2015 2015 2015 2015

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

At beginning of the year 140,659 235,970 136,559 231,870

Gains/(losses) recognised

in income statement 2,955 24,357 2,955 24,357

Gains recognised in other

comprehensive income - - - -

Purchases 9,751 21,409 9,751 21,409

Sales (980) (16,010) (980) (16,010)

Reclassification - (136,230) - (136,230)

Foreign exchange

translation difference 2,125 12,134 2,125 12,134

Coupon received (3,481) (971) (3,481) (971)

Transfer from Level 3 - - - -

At end of the year 151,029 140,659 146,929 136,559

Bank


Reconciliation of financing assets at fair value measurements in Level 3 of the fair value

hierarchy:

Group

44






30 June 31 March

2015 2015

RM'000 RM'000

Total gains/(losses) recognised in

income statement for financial

instruments measured at fair value

at the end of the financial year 2,955 24,357

Total gains recognised in

other comprehensive income for financial

instruments measured at fair value at the

end of the financial year - -

30 June 31 March

2015 2015

RM'000 RM'000

Total gains/(losses) recognised in

income statement for financial

instruments measured at fair value

at the end of the financial year 2,955 24,357

Total gains recognised in

other comprehensive income for financial

instruments measured at fair value at the

end of the financial year - -

Reconciliation of financing assets at fair value measurements in Level 3 of the fair value

hierarchy (cont'd.):

The reason for the transfer was due impairment of the securities which resulted in the

inability to obtain market prices for the securities as at reporting date.

Group

Bank

45

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