bank of america malaysia berhad

BANKOFAMERICAMALAYSIABERHAD(IncorporatedinMalaysia)RegistrationNo.199401025304(310983-V)

UNAUDITEDCONDENSEDINTERIMFINANCIALSTATEMENTS

FORTHEFINANCIALPERIODENDED31MARCH2021

TABLEOFCONTENTS PAGE(S)

STATEMENTOFFINANCIALPOSITION 2

STATEMENTOFCOMPREHENSIVEINCOME 3

STATEMENTOFCHANGESINEQUITY 4

STATEMENTOFCASHFLOWS 5

NOTESTOTHEFINANCIALSTATEMENTS 5-21

STATEMENTOFDECLARATION 22

RegistrationNo.199401025304(310983-V)

BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)

UNAUDITEDSTATEMENTOFFINANCIALPOSITIONASAT31MARCH2021

31March2021

31December2020

Note RM’000 RM’000ASSETS

Cashandshorttermfunds 7 2,719,695 2,973,616

Financialassetsatfairvaluethroughprofitorloss(FVTPL) 8 1,997,346 983,029

Financialassetsatfairvaluethroughothercomprehensive

income(FVOCI) 9 527,896 409,055

Loansandadvances 10 277,351 276,376

Otherassets 11 73,190 122,931

Derivativeassets 124,602 155,003

Taxrecoverable 13,107 8,513

Deferredtaxassets 1,370 2,206

StatutorydepositswithBankNegaraMalaysia 60,001 13,001

Propertyandequipment 13 3,785 3,636

TOTALASSETS 5,798,343 4,947,366

LIABILITIESANDSHAREHOLDERS’FUNDS

Depositsfromcustomers 16 3,768,990 3,703,692

Depositsandplacementsofbanksand

otherfinancialinstitutions 17 939,184 16,983

Billsandacceptancespayable 10,624 6,578

Otherliabilities 18 151,977 133,712

Derivativeliabilities 104,481 269,086

TOTALLIABILITIES 4,975,256 4,130,051

Sharecapital 135,800 135,800

Reserves 687,287 681,515

Shareholders’funds 823,087 817,315

TOTALLIABILITIESANDSHAREHOLDERS’FUNDS 5,798,343 4,947,366

COMMITMENTSANDCONTINGENCIES 31 35,384,839 39,253,543



2

UNAUDITEDSTATEMENTOFCOMPREHENSIVEINCOMEFORTHEFINANCIALPERIOD31MARCH2021

Note31March

202131March

2020RM’000 RM’000

Interestincome 19 11,621 16,217

Interestexpense 20 (2,084) (8,378)

Netinterestincome 9,537 7,839

Nettradingincome 21 13,062 52,043

Otheroperatingincome 22 7,790 4,469

Netnon-interestincome 20,852 56,512

Netincome 30,389 64,351

Otheroperatingexpenses 23 (22,647) (18,349)

Profitbeforeimpairment 7,742 46,002

Impairmentchargeforcreditlosses 24 14 (4,124)

NetProfitbeforetax 7,756 41,878

Taxation (1,978) (10,115)

Profitforthefinancialyear 5,778 31,763

Othercomprehensiveincome:

Itemsthatmaynotbesubsequentlyreclassifiedtoprofitorloss

Changeinvalueofequityinvestmentsatfairvaluethrough

othercomprehensiveincome(FVOCI) (6) 9

Incometaxeffect — —

Othercomprehensiveincome,netoftax (6) 9

Totalcomprehensiveincomeforthefinancialyear 5,772 31,772

Earningspershare(sen)

Basic/diluted 4.25 23.39



3

STATEMENTOFCHANGESINEQUITYFORTHEFINANCIALPERIOD31MARCH2021

Nondistributable Distributable

Share FVOCI Regulatory Retained

capital reserves reserves profits Total

RM’000 RM’000 RM’000 RM’000 RM’0002021Balanceat1January 135,800 1,059 693 679,763 817,315

Profitforthefinancialperiod — — — 5,778 5,778

Othercomprehensiveincome,netofincometaxChangeinvalueofFVOCI — (6) — — (6)Totalothercomprehensiveincome — (6) — — (6)

Totalcomprehensiveincomeforthefinancialperiod 135,800 1,053 693 685,541 823,087

Netchangeinregulatoryreserves — — (326) 326 —

Balanceat31March 135,800 1,053 367 685,867 823,087

2020Balanceat1January 135,800 1,052 1,287 594,743 732,882

Profitforthefinancialperiod — — — 31,763 31,763

Othercomprehensiveincome,netofincometaxChangeinvalueofFVOCI — 9 — — 9Totalothercomprehensiveincome — 9 — — 9

Totalcomprehensiveincomeforthefinancialperiod 135,800 1,061 1,287 626,506 764,654

Netchangeinregulatoryreserves — — 32 (32) —

Balanceat31March 135,800 1,061 1,319 626,474 764,654



4

31March2021

31March2020

RM’000 RM’000

Cashflowsfromoperatingactivities

Profitbeforetaxation 7,756 41,878

Adjustmentsfor:

-Depreciationofpropertyandequipment 310 268

-Amortisationofright-ofuseassets 166 179

-Impairmentchargeforcreditlosses (14) 4,124

-Netunrealisedlossonfairvaluechangesinderivatives (244,218) (19,530)

-Netunrealisedloss/(gain)onrevaluationoffinancialassetsatFVTPL 2,410 (5,872)

(233,590) 21,047

Changesinworkingcapital:

(Increase)/decreaseinoperatingassets:

FinancialassetsFVTPL (1,016,727) 380,970

FinancialassetsFVOCI (118,847) 40,092

Loansandadvances (961) 796

Otherassets 49,741 (129,651)

Derivativeassets 274,619 (74,786)

StatutorydepositwithBankNegaraMalaysia (47,000) (10,000)

Increase/(decrease)inoperatingliabilities:

Depositsfromcustomers 65,298 (363,813)

Depositsandplacementsofbanksandotherfinancial

institutions 922,201 (16,791)

Billsandacceptancespayable 4,046 1,519

Otherliabilities 18,445 168,216

Derivativeliabilities (164,605) 74,737

Cashflowsgeneratedfromoperatingactivities (247,380) 92,336

Taxationpaid (5,736) (4,675)

Netcashgeneratedfrombyoperatingactivities (253,116) 87,661

Cashflowsfrominvestingactivities

Purchaseofpropertyandequipment (625) (12)

Netcashusedininvestingactivities (625) (12)

Cashflowsfromfinancingactivities

Repaymentofleaserentals (180) (18)

Netcashusedinfinancingactivities (180) (18)

Netincreaseincashandcashequivalents (253,921) 87,631

Cashandcashequivalentsasat1January 2,973,616 2,736,001

Cashandcashequivalentsasat31March 2,719,695 2,823,632



STATEMENTOFCASHFLOWS FORTHEFINANCIALPERIOD31MARCH2021

5

1 BASISOFPREPARATION

The unaudited condensed interim financial statements of the Bank have been prepared in accordance with therequirements of Malaysian Financial Reporting Standard (“MFRS”) 134 “Interim Financial Reporting” issued by theMalaysianAccountingStandardsBoard(“MASB”).

Theunauditedcondensed interimfinancialstatementsshouldberead inconjunctionwiththeBank’sauditedfinancialstatementsforthefinancialyearended31December2020.TheexplanatorynotesattachedtotheunauditedcondensedinterimfinancialstatementsprovideanexplanationofeventsandtransactionsthataresignificantforanunderstandingofthechangesinthefinancialpositionandperformanceoftheBanksincethefinancialyearended31December2020.

The unaudited condensed interim financial statements have been prepared under the historical cost convention. Theaccountingpoliciesandmethodsof computationapplied in theunauditedcondensed interim financial statementsareconsistentwiththoseadopted inthemostrecentauditedfinancialstatements fortheyearended31December2020,exceptasfollows:

NEWANDAMENDEDSTANDARDSADOPTEDBYTHEBANK

AmendmentstoMFRS16‘COVID-19-RelatedRentConcessions’(effective1January2021)

Thisamendmentgrantanoptionalexemption for lessees toaccount fora rent concession related toCOVID-19 in thesame way as they would if they were not lease modifications. In many cases, this will result in accounting for theconcession as a variable lease payment in the period(s) in which the event or condition that triggers the reducedpaymentoccurs.Theamendment,however,donotmakeanychangestolessoraccounting.

TheexemptiononlyappliestorentconcessionsoccurringasadirectconsequenceoftheCOVID-19pandemicandonlyifallofthefollowingconditionsaremet:

(a)Thechangeinleasepaymentsresultsinrevisedconsiderationfortheleasethatissubstantiallythesameas,orlessthan,theconsiderationfortheleaseimmediatelyprecedingthechange;

(b)Anyreductioninleasepaymentsaffectsonlypaymentsdueonorbefore30June2021;and

(c)Thereisnosubstantivechangetoothertermsandconditionsofthelease.

Theamendmentsshallbeappliedretrospectively.

TheadoptionofthisstandardisnotexpectedtohaveanysignificantimpacttotheBank.

STANDARDSANDAMENDMENTSTOEXISTINGSTANDARDSBUTNOTYETEFFECTIVE

AnnualImprovementstoMFRS9‘Feesinthe10%testforderecognitionoffinancialliabilities’(effective1January2022)

Thisstandardclarifiesthatonlyfeespaidorreceivedbetweentheborrowerandthelender, includingthefeespaidorreceivedoneachother’sbehalf,areincludedinthecashflowofthenewloanwhenperformingthe10%test.

Anentityshallapplytheamendmenttofinancialliabilitiesthataremodifiedorexchangedonorafterthebeginningoftheannualreportingperiodinwhichtheentityfirstappliestheamendment.




NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021

6

AmendmentstoMFRS3‘ReferencetoConceptualFramework’(effective1January2022)

ThisstandardreplacesthereferencetoFrameworkforPreparationandPresentationofFinancialStatementswith2018Conceptual Framework. The amendments did not change the current accounting for business combinations onacquisitiondate.

TheamendmentsprovideanexceptionfortherecognitionofliabilitiesandcontingentliabilitiesshouldbeinaccordancewiththeprinciplesofMFRS137‘Provisions,contingentliabilitiesandcontingentassets’andICInterpretation21‘Levies’whenfallswithintheirscope.Italsoclarifiesthatcontingentassetsshouldnotberecognisedattheacquisitiondate.

Theamendmentsshallbeappliedprospectively.


AmendmentstoMFRS116‘Proceedsbeforeintendeduse’(effective1January2022)

Thisstandardprohibitanentityfromdeductingfromthecostofaproperty,plantandequipmenttheproceedsreceivedfrom selling items produced by the property, plant and equipment before it is ready for its intended use. The salesproceedsshouldinsteadberecognisedinprofitorloss.

Theamendmentsalsoclarifythattestingwhetheranassetisfunctioningproperlyreferstoassessingthetechnicalandphysicalperformanceoftheproperty,plantandequipment.



AmendmentstoMFRS137‘onerouscontracts—costoffulfillingacontract’(effective1January2022)

Thisstandardclarifythatdirectcostsoffulfillingacontractincludeboththeincrementalcostoffulfillingthecontractaswell as an allocation of other costs directly related to fulfilling contracts. The amendments also clarify that beforerecognisingaseparateprovisionforanonerouscontract, impairment lossthathasoccurredonassetsusedinfulfillingthecontractshouldberecognised.



AmendmentstoMFRS101‘Classificationofliabilitiesascurrentornoncurrent’(effective1January2023)

This standard clarify that a liability is classified as noncurrent if an entity has a substantive right at the end of thereportingperiodtodefersettlementforatleast12monthsafterthereportingperiod.Aliabilityisclassifiedascurrentifa condition is breached at or before the reporting date and a waiver is obtained after the reporting date. A loan isclassifiedasnon-currentifacovenantisbreachedafterthereportingdate.

In addition, the amendments clarify that when a liability could be settled by the transfer of an entity’s own equityinstruments (e.g. a conversion option in a convertible bond), conversion option that is not an equity instrument asdefinedinMFRS132(‘FinancialInstruments'):Presentation’isconsideredinthecurrentornon-currentclassificationoftheconvertibleinstrument.






7

InterbankOfferedRate("IBOR")reform

TheBankestablishedan IBOR transitionprogram ledby seniormanagement,which is intended toaddress theBank'sindustry and regulatory engagement, client and financial contract changes, internal and external communications,technology and operations modifications, introduction of new products, migration of existing clients, and programstrategyandgovernance. Inaddition, theprogram isdesigned tomonitoravarietyof scenarios, includingoperationalrisksassociatedwithinsufficientpreparationbyindividualmarketparticipantsortheoverallmarketecosystem,volatilityalong the Secured Overnight Financing Rate ("SOFR") curve, development and adoption of credit-sensitive and otherrates, regulatoryand legaluncertaintywith respect tovariousmatters includingcontract continuity,accessbymarketparticipantstoliquidityincertainproducts,andIBORcontinuitybeyondDecember2021.

The Bank is executing product and client roadmaps that it believes alignwith industry recommended and regulatorymilestones,andtheentityhasdevelopedemployeetrainingprogramsaswellasotherinternalandexternalsourcesofinformationon the various challenges andopportunities that the replacementof IBORspresents.As the transitionofARRsevolves,theentitycontinuestomonitorandparticipateinthedevelopmentandusageofcertainARRs, includingKLIBOR.

Theadoptionof this standard isnotexpected tohaveany significant impact to theBank. Treasury isusing InterUnitFunding("IUF")andtherateforIUFhasalreadytransitiontoSOFR.

2 AUDITOR’SREPORTONPRECEDINGANNUALFINANCIALSTATEMENTS

Theauditor’sreportonthefinancialstatementsfortheprecedingfinancialyearended31December2020wasnotsubjecttoanyqualification.

3 SEASONALORCYCLICALITYFACTORS

ThebusinessoperationsoftheBankhavenotbeenaffectedbyanymaterialseasonalorcyclicalfactors.

4 UNUSUALITEMSDUETOTHEIRNATURE,SIZEORINCIDENCE

Therewerenounusualitemsaffectingtheassets,liabilities,equity,netincomeorcashflowsoftheBankduringthefinancialperiodended31March2021.

5 CHANGESINESTIMATES

Therewerenosignificantchangesinestimatesarisingfrompriorfinancialperiod/yearthathaveamaterialeffectonthefinancialresultsandpositionforthefinancialperiodended31March2021.

6 ISSUANCEANDREPAYMENTSOFDEBTSANDEQUITYSECURITIES

Therewerenocancellations,repurchase,resaleorrepaymentsofdebtandequitysecuritiesduringthecurrentfinancialperiodunderreview.




8

7 CASHANDSHORTTERMFUNDS

31March2021

31December2020

RM’000 RM’000

Cashandbalanceswithbanksandotherfinancialinstitutions 86,995 96,985Moneyatcallanddepositplacementsmaturingwithinonemonth 2,632,700 2,876,631

2,719,695 2,973,616

MoneyatcallandinterbankplacementsarewithinStage1allocation(12-monthsECL)withRMNilimpairmentallowanceasat31March2021(31December2020:RMNil).

8 FINANCIALASSETSATFAIRVALUETHROUGHPROFITORLOSS(FVTPL)

31March2021

31December2020

RM’000 RM’000

MalaysianGovernmentSecurities 1,340,538 446,159MalaysianGovernmentInvestmentIssues 357,921 27,409MalaysianGovernmentTreasuryBills 298,887 509,461

1,997,346 983,029

9 FINANCIALASSETSATFAIRVALUETHROUGHOTHERCOMPREHENSIVEINCOME(FVOCI)

31March2021

31December2020

RM’000 RM’000QuotedsecuritiesinMalaysia:BankNegaraBills 524,916 406,075

UnquotedsecuritiesinMalaysia:Shares 2,980 2,980

527,896 409,055

FVOCIiswithinStage1allocation(12-monthsECL)withRMNilimpairmentallowancesasat31March2021(31December2020:RMNil).




9

10 LOANSANDADVANCES

31March2021

31December2020

RM’000 RM’000

(a) Loansandadvancesanalysedbytype:

Atamortisedcost:

Overdrafts 4,230 4,179

Factoringreceivables 12,537 15,815

Staffloans 495 503

Revolvingadvances 248,946 243,624

Termloans 34,161 35,489

Mortgageloans 98 109

Grossloansandadvances 300,467 299,719

ExpectedCreditLosses("ECL")

Stage1:12Months-OnBalanceSheet (2,607) (2,291)

Stage2:LifetimeECLnotcreditimpaired — —

Stage3:LifetimeECLcredit-impaired (20,509) (21,052)

Totalnetloansandadvances 277,351 276,376

(b) Bygeographicaldistribution:

Malaysia 300,467 299,719

(c) Bytypeofcustomer

Domesticbusinessenterprises 147,989 219,737Domesticnon-bankingfinancialinstitutions 151,885 79,370Individuals 593 612

300,467 299,719

(d) Byinterestratesensitivity

Fixedrate:Housingloans 455 467Otherfixedrateloans 12,577 15,851

Variablerate:Baserate 98 109Costplus 95,153 87,761Otherfloatingrateloans 192,184 195,531

300,467 299,719




10

10 LOANSANDADVANCES(CONTINUED)

31March2021

31December2020

(e) Bysector RM’000 RM’000

Mining&quarrying 34,161 35,489Manufacturing 89,171 162,178Wholesale&Retailtrade,Restaurant&Hotels 10,070 7,170Transport,storage,communication 1,001 1,001Finance,insuranceandbusinessservices 165,471 93,269Household 593 612

300,467 299,719

(f) Byeconomicpurpose

Purchaseoftransportvehicles 34 37Purchaseoflandedproperty(residential) 553 575Personaluse 6 —Workingcapital 299,874 299,107

300,467 299,719

(g) Byresidualcontractualmaturity

Withinoneyear 298,001 285,318Oneyeartothreeyears 2,011 13,897Threeyearstofiveyears — 37Overfiveyears 455 467

300,467 299,719

(h) Grossloansandadvancesbystaging

Stage1:12MonthECL 265,279 263,203Stage2:LifetimeECLNotCreditImpaired — —Stage3:CreditImpaired 35,188 36,516

300,467 299,719

(i) Movementsinimpairedloansandadvancesareasfollows:

At1January 36,516 44,829Impairedduringtheyear — 1,001Reclassifiedasnon-impaired — —Amountrecovered (2,117) (7,708)ExchangeRatedifference 789 (1,606)At31March/31December 35,188 36,516Stage3:LifetimeECLcreditimpaired (20,509) (21,052)Netimpairedloansandadvances 14,679 15,464

Grossimpairedloansasa%ofgrossloansandadvances 11.71% 12.18%




11

10 LOANSANDADVANCES(CONTINUED)

(j) MovementsinExpectedCreditLosses("ECL")on

loansandadvancesareasfollows:

12-MonthECL(Stage1)

LifetimeECLNotCredit-Impaired(Stage2)

CreditImpaired(Stage3) Total

RM’000 RM’000 RM’000 RM’000At1January2021 2,291 — 21,052 23,343Changesduetoloansandadvances

recognised-TransfertoStage1:12-MonthECL — — — —-TransfertoStage2:LifetimeECLnotcredit-impaired — — — —

-TransfertoStage3:LifetimeECLcredit-impaired — — — —

Loansandadvancesderecognised(otherthanwriteoff) (95) — — (95)

Newloansandadvancesoriginated — — — —

Netremeasurementduetochangesincreditrisk 411 — (543) (132)

At31March2021 2,607 — 20,509 23,116

12-MonthECL(Stage1)

LifetimeECLNotCredit-Impaired(Stage2)

CreditImpaired(Stage3) Total

RM’000 RM’000 RM’000 RM’000At1January2020 1,430 — 19,905 21,335Changesduetoloansandadvances

recognised-TransfertoStage1:12-MonthECL — — — —-TransfertoStage2:LifetimeECLnotcredit-impaired (8) 8 — —

-TransfertoStage3:LifetimeECLcredit-impaired — (5) 5 —

Loansandadvancesderecognised(otherthanwriteoff) (40) — — (40)

Newloansandadvancesoriginated 1,368 — — 1,368

Netremeasurementduetochangesincreditrisk (459) (3) 1,142 680

At31December2020 2,291 — 21,052 23,343




12

10 LOANSANDADVANCES(CONTINUED)31March

202131December

2020(k) Impairedloansandadvancesanalysedbygeographicaldistribution: RM’000 RM’000

Malaysia 35,188 36,516

(l) Impairedloansandadvancesanalysedbyeconomicpurpose:

Purchaseoflandedproperty(residential) 26 26Workingcapital 35,162 36,490

35,188 36,516

(m) ExposurestoCOVID-19impactedsectors(Netofimpairment)

Baseline:Aviation 4,637 4,564

11 OTHERASSETS31March

202131December

2020RM’000 RM’000

Collateralreceivables 40,533 103,157Intercompanyreceivables 1,001 1,985Deposits 36 36Prepayments 6,669 7,503Otherreceivables 24,951 10,250

73,190 122,931

Otherassets iswithin Stage1allocation (12-monthsECL)withRMNil impairmentallowanceasat31March2021 (31December2020:RMNil).

12 PRE-ACQUISITIONPROFITS

Therewerenopre-acquisitionprofitsreportedforthefinancialperiodunderreview.

13 PROPERTY,PLANTANDEQUIPMENT

The valuationsof property, plant andequipmenthavebeenbrought forward,without amendment from thepreviousannualfinancialstatements.

14 PROFITSONSALEOFINVESTMENTS/PROPERTIES

Therewerenomaterialgainsorlossondisposalof investments(otherthanintheordinarycourseofbusiness)and/orpropertiesforthefinancialperiodunderreview.

15 PURCHASEANDDISPOSALOFQUOTEDSECURITIES

There were no purchases or disposal of quoted securities for the financial period under review other than thosepurchasedordisposedintheordinarycourseofbusiness.




13

16 DEPOSITSFROMCUSTOMERS

31March2021

31December2020

RM’000 RM’000

Demanddeposits 3,636,542 3,376,776Savingsdeposits 7 7Fixeddeposits 132,441 326,909

3,768,990 3,703,692

(a) Maturitystructureoffixeddepositsisasfollows:

Duewithinsixmonths 130,280 324,799Sixmonthstooneyear 1,111 1,060Oneyeartofiveyears 1,050 1,050

132,441 326,909

(b) Thedepositsaresourcedfromthefollowingtypesofcustomers:

Businessenterprise 3,768,944 3,703,646Individuals 46 46

3,768,990 3,703,692

17 DEPOSITSANDPLACEMENTSOFBANKSANDOTHERFINANCIALINSTITUTIONS

31March2021

31December2020

RM’000 RM’000

Licensedbanks 938,160 15,960Otherfinancialinstitutions 1,024 1,023

939,184 16,983

18 OTHERLIABILITIES

31March2021

31December2020

RM’000 RM’000

Collateralpayables 56,393 52,034Intercompanypayables 61,298 55,288Accruals 8,407 6,742Share-basedrechargepayables 645 135ECLforguaranteesandcommitments 1,374 1,160LeaseLiabilities 944 1,113Otherpayables 22,916 17,240

151,977 133,712




14

19 INTERESTINCOME

31March2021

31March2020

RM’000 RM’000

Loansandadvances 1,664 2,219Moneyatcallanddepositplacementswithbanksandotherfinancialinstitutions 7,927 13,369FinancialassetsatFVOCI 2,030 629

11,621 16,217

20 INTERESTEXPENSE

31March2021

31March2020

RM’000 RM’000

Depositsandplacementsofbanksandotherfinancialinstitutions 160 1,268Depositsfromcustomers 1,924 7,110

2,084 8,378

21 NETTRADINGINCOME31March

202131March

2020RM’000 RM’000

Fairvaluegain/(loss)oninstrumentsheldfortradingDebtinstrumentsatFVTPLNet(loss)/gainfromsaleoffinancialassetsatFVTPL (24,333) 10,725Unrealisedrevaluation(loss)/gainonfinancialassetsatFVTPL (2,410) 5,872

DerivativesfinancialinstrumentsRealisedgainonderivatives 7,092 3,087Unrealisedgainonforeignexchangeforwards 238,762 22,474Unrealisedgain/(loss)oninterestrateandcrosscurrencyswaps 5,456 (2,944)

InterestincomefromfinancialassetsatFVTPL 13,468 13,282

Realisedforeignexchangeloss (224,973) (420)Others — (33)

13,062 52,043




15

22 OTHEROPERATINGINCOME

31March2021

31March2020

RM’000 RM’000FeeincomeCommission 99 83Servicechargesandfees 1,906 1,725Guaranteefees 493 423Managementfeeincome 1,002 988Otherfeeincome 4,290 1,250Totalfeeincome 7,790 4,469

23 OTHEROPERATINGEXPENSES

31March2021

31March2020

RM’000 RM’000PersonnelcostsSalaries,allowancesandbonuses 7,375 7,283Share-basedpayment 1,174 (1,038)Definedcontributionplans 3,151 2,741Otherpersonnelcosts (77) 320

11,623 9,306EstablishmentcostsDepreciationofpropertyandequipment 310 268Amortisationofright-of-use-assets 166 179Rentalofpremises 117 118Rentalofequipment 56 49Repairandmaintenance 377 317Others 333 421

1,359 1,352MarketingexpensesBusinesspromotionandadvertisement — —Others — 131

— 131

Communicationexpenses 386 186Legalandprofessionalfees 137 122Stationeryandpostages 110 112Sharedadministrativesupportexpenses 7,576 5,745Others 1,456 1,395

9,665 7,560

22,647 18,349




16

24 IMPAIRMENTCHARGEFORCREDITLOSSES

31March2021

31March2020

RM’000 RM’000Allowanceforimpairment-Loansandadvances 227 (4,100)-Guaranteesandcommitments (214) (24)Impairedloansandadvancesrecovered 1 —

14 (4,124)

25 SIGNIFICANTEVENTSDURINGTHEFINANCIALPERIOD

TheBankcontinuestotakeactionstomitigatetheimpactduetothecoronavirusoutbreakontheBank.InarrivingattheECLforthecurrentfinancialperiod,theBankhasappropriatelyconsideredreasonableandsupportableinformationthatwasrelevantandavailablewithoutunduecostoreffort.RefertoNote10andNote24fortheresultsoftheECL.

26 SIGNIFICANTEVENTSSUBSEQUENTTOTHEBALANCESHEETDATE

There were no significant events subsequent to the balance sheet date which have not been disclosed in thesecondensedinterimfinancialstatements.

27 CHANGESINCOMPOSITIONOFTHEBANK

TherewerenosignificantchangesinthecompositionoftheBankforthefinancialperiodended31March2021.

28 SEGMENTALREPORTINGONREVENUE,PROFITANDASSETS

Segmentalreportinghasnotbeenpreparedastherearenoothersegmentsotherthanthecommercialbankingsegment.

29 TAXATION

There are no material changes in the profit before taxation for the financial period reported as compared with theprecedingfinancialperiod,whichhavenotbeendisclosedinthesecondensedinterimfinancialstatement.

30 DIVIDENDS

Therewerenodividendspaidordeclaredforthefinancialperiodended31March2021.




17

31 COMMITMENTSANDCONTINGENCIES

Thecommitmentsandcontingenciesconstitutethefollowings:31March2021 31December2020

Principalamount

Creditequivalent

amount

Riskweightedamount

Principalamount

Creditequivalent

amountRiskweighted

amountRM’000 RM’000 RM’000 RM’000 RM’000 RM’000

Description

Directcreditsubstitutes 131,225 130,192 125,671 139,911 138,870 131,867Transactionrelatedcontingentitems 75,826 37,612 36,872 21,972 10,905 10,144Shorttermselfliquidatingtraderelatedcontingencies 24,114 4,783 4,783 23,307 4,625 4,625Foreignexchangerelatedcontracts:-Oneyearorless 9,333,181 148,370 98,813 16,476,855 165,687 108,568-Overoneyeartofiveyears 51,067 1,572 1,572 84,663 4,312 4,237Interest/Profitraterelatedcontracts:-Oneyearorless 16,201,300 56,393 22,999 10,612,000 28,242 12,972-Overoneyeartofiveyears 8,991,500 238,234 95,367 11,296,100 145,711 77,333-Overfiveyears — — — — — —Othercommitments,suchasformalstandbyfacilitiesandcreditlines,withanoriginalmaturityofuptooneyear — — — — — —

Othercommitments,suchasformalstandbyfacilitiesandcreditlines,withanoriginalmaturityofoveroneyear — — — — — —

Any commitments that are unconditionally cancelled at any timeby theBank without prior notice or that effectively provide for automaticcancellationduetodeteriorationinaborrower'screditworthiness 576,626 — — 598,735 — —Total 35,384,839 617,156 386,077 39,253,543 498,352 349,746




18

32 CAPITALADEQUACY

ThetablebelowsummariesthecompositionofregulatorycapitalandratiooftheBank:

31March2021

31December2020

RM’000 RM’000CommonEquity("CET1")CapitalandTier1Capital

Sharecapital 135,800 135,800Retainedprofits 680,457 680,457

OtherdisclosedreservesUnrealisedgainsandlossesonFVOCIfinancialinstruments 1,053 1,059

817,310 817,316Less:regulatoryadjustments-Deferredtaxassets (1,370) (2,206)-55%ofcumulativegainsofFVOCIfinancialinstruments (580) (582)-Regulatoryreserve (367) (693)TotalCETIandTierIcapital 814,993 813,835

Tier-IICapitalLossallowancefornon-creditimpairedexposures/collectiveassessmentallowance* 3,981 3,451

Regulatoryreserve 367 693TotalTierIIcapital 4,348 4,144

Totalcapital 819,341 817,979

*ExcludesLifetimeECLCreditImpaired(Stage3)loans/collectiveassessmentallowanceonimpairedloansrestrictedfromTier-IICapitalofBAMBofRM20,508,975(31December2020:RM21,052,093).

Totalrisk-weightedassets:-Creditrisk 724,975 694,816Marketrisk 1,286,371 1,378,006Operationalrisk 310,569 317,760TotalRWA 2,321,915 2,390,582

Capitalratios

CETIcapitalratio 35.100% 34.043%TierIcapitalratio 35.100% 34.043%Totalcapitalratio 35.287% 34.217%

Total capital and capital adequacy ratios of the Bank are computed in accordance with BNM’s Capital AdequacyFramework (Capital Components) guidelines issued on 9 December 2020. The Bank has adopted the StandardisedApproach(“SA”)forCreditRiskandMarketRiskandBasicIndicatorApproach(“BIA”)forOperationalRisk.




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33 FAIRVALUEOFFINANCIALINSTRUMENTS

Financialinstrumentscomprisefinancialassets,financialliabilitiesandoff-balancesheetfinancialinstruments.Fairvalueistheamountatwhichafinancialassetcouldbeexchangedorafinancialliabilitysettled,betweenknowledgeableandwillingpartiesinanarm’slengthtransaction.Theinformationpresentedhereinrepresentstheestimatesoffairvaluesasatthebalancesheetdate.

Whereavailable,quotedandobservablemarketpricesareusedasthemeasureoffairvalues.Wheresuchquotedandobservable market prices are not available, fair values are estimated based on a range of methodologies andassumptionsregardingriskcharacteristicsofvariousfinancialinstruments,discountrates,estimatesoffuturecashflowsandotherfactors.Changesintheuncertaintiesandassumptionscouldmateriallyaffecttheseestimatesandtheresultingfairvalueestimates.

ArangeofmethodologiesandassumptionshadbeenusedinderivingthefairvaluesoftheBank’sfinancialinstrumentsatbalancesheetdate.

Thetablebelowanalysesfinancialinstrumentscarriedatfairvalue,byvaluationmethod.Thedifferentlevelshavebeendefinedasfollows:

Level1: Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities

Level 2: Inputsother thanquotedprices includedwithin level 1 that areobservable for the assetor liability, eitherdirectly(thatis,asprices)orindirectly(thatis,asderivedfromprices).

Level3: Inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(thatis,unobservableinputs).

ThefollowingtablepresentstheBank’sfinancialassetsandliabilitiesthataremeasuredatfairvalue.




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33 FAIRVALUEOFFINANCIALINSTRUMENTS(CONTINUED)Level1 Level2 Level3 Total

31March2021 RM’000 RM’000 RM’000 RM’000FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorloss(FVTPL)-MalaysianGovernmentSecurities 1,340,538 — — 1,340,538-MalaysianGovernmentInvestmentIssues 357,921 — — 357,921-MalaysianGovernmentTreasuryBills 298,887 — — 298,887Derivativeassets-Foreignexchangeforwardsandswaps — 51,941 — 51,941-Interestrateandcrosscurrencyswaps — 72,661 — 72,661FinancialassetsatfairvaluethroughothercomprehensiveincomeUnquotedshares — — 2,980 2,980BankNegaraBills 524,916 — — 524,916Totalassets 2,522,262 124,602 2,980 2,649,844

FinancialliabilitiesatfairvaluethroughprofitorlossDerivativeliabilities-Foreignexchangeforwardsandswaps — 44,178 — 44,178-Interestrateandcrosscurrencyswaps — 60,303 — 60,303Totalliabilities — 104,481 — 104,481

Level1 Level2 Level3 Total31December2020 RM’000 RM’000 RM’000 RM’000FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorloss(FVTPL)-MalaysianGovernmentSecurities 446,159 — — 446,159-MalaysianGovernmentInvestmentIssues 27,409 — — 27,409-MalaysianGovernmentTreasuryBills 509,461 — — 509,461Derivativeassets-Foreignexchangeforwardsandswaps — 83,017 — 83,017-Interestrateandcrosscurrencyswaps — 71,986 — 71,986FinancialassetsatfairvaluethroughothercomprehensiveincomeUnquotedshares — — 2,980 2,980BankNegaraBills 406,075 — — 406,075Totalassets 1,389,104 155,003 2,980 1,547,087

FinancialliabilitiesatfairvaluethroughprofitorlossDerivativeliabilities-Foreignexchangeforwardsandswaps — 200,196 — 200,196-Interestrateandcrosscurrencyswaps — 68,890 — 68,890Totalliabilities — 269,086 — 269,086

Therewerenotransfersbetweenlevels1and2duringtheperiod(31December2020:TherewerenotransfersbetweenLevels1and2)




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STATEMENTOFDECLARATION

Tothebestofourknowledge,theaccompanyingStatementofFinancialPositionofBankofAmericaMalaysiaBerhadasat31March2021,andtherelatedStatementofComprehensiveIncome,StatementofChangesinEquity,StatementofCashFlowsandexplanatorynotesfortheperiodendedonthatdatehadbeenpreparedfromtheBank’saccountingandother records and nothing has come to our attention that causes us to believe that the condensed interim financialstatementsarenotpresentedfairlyinallmaterialaspectsinaccordancewiththeMalaysianAccountingStandardsBoard(“MASB”)approvedaccountingstandardsinMalaysiaforentitiesotherthanprivateentitiesandBankNegaraMalaysiaGuidelines.

Forandonbehalfof,BankofAmericaMalaysiaBerhad

ChiefFinancialOfficerWongPohLeng27April2021



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