Bank Islam Malaysia Berhad: Unaudited Interim Financial Statements - 30 September 2017

Transcription

1. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Statements of Financial Position as at 30 September 2017 Note Assets Cash and short-term funds Deposits and placements with banks and other financial institutions Financial assets held-fortrading Derivative financial assets Financial assets availablefor-sale Financial assets held-tomaturity Financing, advances and others Other assets Statutory deposits with Bank Negara Malaysia Current tax assets Deferred tax assets Investments in subsidiaries Property and equipment Total assets Liabilities and equity Deposits from customers Investment accounts of customers Deposits and placements of banks and other financial institutions Derivative financial liabilities Bills and acceptance payable Subordinated Sukuk Murabahah Other liabilities Zakat and taxation Total liabilities Group 30.09.2017 31.12.2016 RM’000 RM’000 Bank 30.09.2017 31.12.2016 RM’000 RM’000 9 920,034 3,963,417 919,157 3,963,268 10 - 100,000 - 100,000 11 12 380,019 30,717 574,835 124,572 374,802 30,717 569,750 124,572 13 9,425,570 9,957,286 9,426,027 9,957,743 14 - 57,703 - 57,703 15 16 40,101,326 50,130 39,189,274 99,015 40,101,326 47,153 39,189,274 95,928 1,287,506 1,791 32,593 171,490 52,401,176 1,374,876 1,779 48,378 185,562 55,676,697 1,287,506 1,737 32,593 15,525 170,667 52,407,210 1,374,876 1,737 48,378 15,525 184,547 55,683,301 17 41,818,555 45,940,414 41,830,910 45,949,715 18 4,305,812 3,812,261 4,305,812 3,812,261 19 - 30,000 - 30,000 12 38,045 111,089 38,045 111,089 73,986 46,278 73,986 46,278 714,179 584,140 44,062 47,578,779 704,393 601,750 45,046 51,291,231 714,179 578,426 44,028 47,585,386 704,393 598,591 45,019 51,297,346 20 21 1
2. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Statements of Financial Position as at 30 September 2017 (continued) Note Equity Share capital Reserves Total equity 22 Total liabilities and equity Restricted investment accounts managed by the Bank 18 Total Islamic banking asset owned and managed by the Bank Commitments and Contingencies 33 Group 30.09.2017 31.12.2016 RM’000 RM’000 Bank 30.09.2017 31.12.2016 RM’000 RM’000 2,869,498 1,952,899 4,822,397 2,404,384 1,981,082 4,385,466 2,869,498 1,952,326 4,821,824 2,404,384 1,981,571 4,385,955 52,401,176 55,676,697 52,407,210 55,683,301 134,814 141,343 134,814 141,343 52,535,990 55,818,040 52,542,024 55,824,644 13,946,811 13,704,559 13,946,811 13,704,559 The Unaudited Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and of the Bank for the financial year ended 31 December 2016. 2
3. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Statements of Profit or Loss and Other Comprehensive Income for the nine months ended 30 September 2017 Group Note Income derived from investment of depositors’ funds Income derived from investment account funds Income derived from investment of shareholders’ funds Net allowance for impairment on financing and advances, net of recoveries Net allowance for impairment on other financial assets Direct expenses 3 months ended 30.09.2017 30.09.2016 RM’000 RM’000 9 months ended 30.09.2017 30.09.2016 RM’000 RM’000 23 579,182 586,634 1,749,548 1,765,507 24 63,809 35,102 183,991 66,061 25 97,835 85,288 306,830 311,564 26 43,791 (22,165) 10,195 (87,987) (4,379) (4,670) (243) (14,233) 609 (15,320) 780,238 680,189 2,236,088 2,040,434 212 1,540 2,213 3,885 27 (274,833) (259,124) (826,628) (801,937) 28 (27,685) (12,749) (79,991) (18,727) 29 30 477,932 (138,793) (105,753) 409,856 (129,386) (88,804) 1,331,682 (409,994) (301,079) 1,223,655 (381,856) (270,791) (9,893) (9,893) (29,357) (29,572) Profit before zakat and tax 223,493 181,773 591,252 541,436 Zakat Tax expense (2,797) (46,833) (2,261) (45,009) (7,562) (144,136) (6,784) (137,960) Profit for the period 173,863 134,503 439,554 396,692 18.19 16.73 Total distributable income Wakalah fees from restricted investment accounts Income attributable to depositors Income attributable to investment account holders Total net income Personnel expenses Other overhead expenses Finance cost on Subordinated Sukuk Murabahah Earnings per share (sen) 3
4. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Statements of Profit or Loss and Other Comprehensive Income for the nine months ended 30 September 2017 (continued) Group Note Profit for the period 3 months ended 30.09.2017 30.09.2016 RM’000 RM’000 9 months ended 30.09.2017 30.09.2016 RM’000 RM’000 173,863 134,503 439,554 396,692 7,624 (11,770) 27,960 16,711 15,724 51,709 51,550 162,667 (2,466) (14,489) (4,747) (47,745) (3,182) (8,933) (11,233) (27,581) Other comprehensive income for the period, net of tax 17,700 16,517 63,530 104,052 Total comprehensive income for the period 191,563 151,020 503,084 500,744 Other comprehensive income/(expense), net of tax: Items that are or may be reclassified subsequently to profit or loss Currency translation differences in respect of foreign operations Fair value reserve Net change in fair value Net amount transferred to profit or loss Income tax expense relating to components of other comprehensive income The Unaudited Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and of the Bank for the financial year ended 31 December 2016. 4
5. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Statements of Profit or Loss and Other Comprehensive Income for the nine months ended 30 September 2017 (continued) Bank Note Income derived from investment of depositors’ funds Income derived from investment account funds Income derived from investment of shareholders’ funds Net allowance for impairment on financing and advances, net of recoveries Net allowance for impairment on other financial assets Direct expenses 3 months ended 30.09.2017 30.09.2016 RM’000 RM’000 9 months ended 30.09.2017 30.09.2016 RM’000 RM’000 23 579,182 586,634 1,749,548 1,765,507 24 63,809 35,102 183,991 66,061 25 94,498 83,324 298,046 304,604 26 43,791 (22,165) 10,195 (87,987) (4,379) (4,670) (243) (14,233) 609 (15,320) 776,901 678,225 2,227,304 2,033,474 212 1,540 2,213 3,885 27 (274,892) (259,181) (826,804) (802,112) 28 (27,685) (12,749) (79,991) (18,727) 29 30 474,536 (136,307) (105,277) 407,835 (127,824) (88,524) 1,322,722 (404,209) (299,096) 1,216,520 (376,813) (268,434) (9,893) (9,893) (29,357) (29,572) Profit before zakat and tax 223,059 181,594 590,060 541,701 Zakat Tax expense (2,792) (46,803) (2,250) (44,985) (7,544) (144,075) (6,750) (137,925) Profit for the period 173,464 134,359 438,441 397,026 Total distributable income Wakalah fees from restricted investment accounts Income attributable to depositors Income attributable to investment account holders Total net income Personnel expenses Other overhead expenses Finance cost on Subordinated Sukuk Murabahah 5
6. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Statements of Profit or Loss and Other Comprehensive Income for the nine months ended 30 September 2017 (continued) Bank Note Profit for the period 3 months ended 30.09.2017 30.09.2016 RM’000 RM’000 9 months ended 30.09.2017 30.09.2016 RM’000 RM’000 173,464 134,359 438,441 397,026 7,636 (11,793) 28,011 16,736 15,724 51,709 51,550 162,667 (2,466) (14,489) (4,747) (47,745) (3,182) (8,933) (11,233) (27,581) Other comprehensive income for the period, net of tax 17,712 16,494 63,581 104,077 Total comprehensive income for the period 191,176 150,853 502,022 501,103 Other comprehensive income/(expense), net of tax: Items that are or may be reclassified subsequently to profit or loss Currency translation differences in respect of foreign operations Fair value reserve Net change in fair value Net amount transferred to profit or loss Income tax expense relating to components of other comprehensive income 6
7. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Consolidated Statement of Changes in Equity for the nine months ended 30 September 2017 Group Note At 1 January 2017 Attributable to equity holders of the Bank Non-distributable Distributable Share Share Other Retained capital premium reserves earnings RM’000 RM’000 RM’000 RM’000 Total equity RM’000 2,404,384 264,790 1,193,045 523,247 4,385,466 - - 27,960 51,550 (4,747) 439,554 - 439,554 27,960 51,550 (4,747) - - (11,233) 63,530 439,554 (11,233) 503,084 264,790 200,324 (264,790) - (1,392,159) - 1,392,159 (266,477) - (266,477) 200,324 At 30 September 2017 2,869,498 - (135,584) 2,088,483 4,822,397 At 1 January 2016 2,363,283 175,452 1,107,920 385,913 4,032,568 - - 16,711 162,667 (47,745) 396,692 - 396,692 16,711 162,667 (47,745) - - (27,581) 104,052 396,692 (27,581) 500,744 41,101 89,338 131,333 - (131,333) (260,876) - (260,876) 130,439 2,404,384 264,790 1,343,305 390,396 4,402,875 Profit for the period Currency translation difference in respect of foreign operations Fair value reserve – Net change in fair value – Net amount reclassified to profit or loss Income tax expense relating to components of other comprehensive income Total comprehensive income for the period Transfer of share premium to share capital Transfer of reserve fund to retained earnings Dividends paid on ordinary shares Issue of shares pursuant to Dividend Reinvestment Plan 22 1 8 22 Profit for the period Currency translation difference in respect of foreign operations Fair value reserve – Net change in fair value – Net amount reclassified to profit or loss Income tax expense relating to components of other comprehensive income Total comprehensive income for the period Transfer to reserve fund Dividends paid on ordinary shares Issue of shares pursuant to Dividend Reinvestment Plan At 30 September 2016 The Unaudited Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and of the Bank for the financial year ended 31 December 2016. 7
8. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Statement of Changes in Equity for the nine months ended 30 September 2017 Bank Note At 1 January 2017 Non-distributable Share Share Other capital premium reserves RM’000 RM’000 RM’000 Distributable Retained earnings RM’000 Total equity RM’000 2,404,384 264,790 1,192,822 523,959 4,385,955 - - 28,011 51,550 (4,747) 438,441 - 438,441 28,011 51,550 (4,747) - - (11,233) 63,581 438,441 (11,233) 502,022 264,790 200,324 (264,790) - (1,392,159) - 1,392,159 (266,477) - (266,477) 200,324 At 30 September 2017 2,869,498 - (135,756) At 1 January 2016 2,363,283 175,452 1,107,738 - - 16,736 162,667 (47,745) 397,026 - 397,026 16,736 162,667 (47,745) - - (27,581) 104,077 397,026 (27,581) 501,103 41,101 89,338 131,333 - (131,333) (260,876) - (260,876) 130,439 2,404,384 264,790 1,343,148 391,397 4,403,719 Profit for the period Currency translation difference in respect of foreign operations Fair value reserve – Net change in fair value – Net amount reclassified to profit or loss Income tax expense relating to components of other comprehensive income Total comprehensive income for the period Transfer of share premium to share capital Transfer of reserve fund to retained earnings Dividends paid on ordinary shares Issue of shares pursuant to Dividend Reinvestment Plan 22 1 8 22 Profit for the period Currency translation difference in respect of foreign operations Fair value reserve – Net change in fair value – Net amount reclassified to profit or loss Income tax expense relating to components of other comprehensive income Total comprehensive income for the period Transfer to reserve fund Dividends paid on ordinary shares Issue of shares pursuant to Dividend Reinvestment Plan At 30 September 2016 2,088,082 386,580 4,821,824 4,033,053 The Unaudited Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and of the Bank for the financial year ended 31 December 2016. 8
9. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Condensed Statements of Cash Flow for the nine months ended 30 September 2017 Group 9 months ended 30.09.2017 30.09.2016 RM’000 RM’000 Profit before zakat and tax Adjustment for non-cash items Bank 9 months ended 30.09.2017 30.09.2016 RM’000 RM’000 591,252 112,682 541,436 170,515 590,060 112,616 541,701 170,452 703,934 711,951 702,676 712,153 Operating profit before working capital changes Changes in working capital: Net changes in operating assets Net changes in operating liabilities (793,255) (2,611,759) (793,318) (2,604,692) (3,692,375) (291,507) (3,691,876) (295,055) Net cash used in operations Zakat and tax paid Tax refund (3,781,696) (148,140) 45 (2,191,315) (103,252) 10,808 (3,782,518) (148,058) - (2,187,594) (103,179) 10,808 (3,929,791) (2,283,759) (3,930,576) (2,279,965) 844,170 346,494 844,177 346,536 (85,724) (150,116) (85,724) (150,116) (3,171,345) (2,087,381) (3,172,123) (2,083,545) 4,063,417 2,982,246 4,063,268 2,978,315 27,962 16,713 28,012 16,737 920,034 911,578 919,157 911,507 Net cash used in operating activities Net cash generated from investing activities Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of the period Exchange difference on translation Cash and cash equivalents at end of the period The Unaudited Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and of the Bank for the financial year ended 31 December 2016. 9
10. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements Notes to the unaudited interim financial statements for the nine months ended 30 September 2017 1. Basis of preparation The unaudited interim financial statements of the Group and of the Bank for the nine months ended 30 September 2017 have been prepared in accordance with the applicable requirements of MFRS 134: Interim Financial Reporting in Malaysia issued by Malaysian Accounting Standards Board (“MASB”), Financial Reporting for Islamic Banking Institution policy issued by Bank Negara Malaysia (“BNM”), the provisions of the Companies Act 2016 and Shariah requirements. The unaudited interim financial statements have been prepared under the historical cost convention except for derivative financial instruments, financial assets held-for-trading and financial assets available-for-sale, which have been measured at fair value. The unaudited interim financial statements do not include all of the information required for full annual financial statements, and should be read in conjunction with the audited financial statements of the Group and of the Bank for the financial year ended 31 December 2016. The explanatory notes attached to the unaudited 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 Bank since the financial year ended 31 December 2016. The significant accounting policies and methods of computation applied in the unaudited interim financial statements are consistent with those adopted in the recent audited financial statements for the financial year ended 31 December 2016, except for the adoption of the following Malaysian Financial Reporting Standards (“MFRS”) and amendments to MFRSs:    Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual Improvements to MFRS Standards 2014-2016 Cycle) Amendments to MFRS 107, Statement of Cash Flows – Disclosure Initiative Amendments to MFRS 112, Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses The adoption of the new standards, amendments to published standards and interpretations are not expected to have impact on the financial results of the Group and the Bank. Companies Act 2016 The unaudited condensed interim financial statements of the Group and of the Bank are prepared in accordance with the requirements of the Companies Act 2016 ("CA 2016"), which replaced the Companies Act 1965. Amongst the key changes introduced in the CA 2016 which affected the financial statements of the Group and of the Bank upon the commencement of the CA 2016 on 31 January 2017 are: (a) the removal of the authorised share capital; (b) the ordinary shares of the Bank will cease to have par or nominal value; and (c) the Bank’s share premium will become part of the share capital. During the financial period ended 30 September 2017, the Bank has transferred RM264,790,400 share premium to its share capital pursuant to the transition provisions set out in Section 618(2) of the CA 2016. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the members as a result of this transfer of the amount in the share premium account to the share capital account. 10
11. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 1. Basis of preparation (continued) Revised Policy Document on Capital Funds and Capital Funds for Islamic Banks issued by Bank Negara Malaysia ("BNM") On 3 May 2017, BNM issued a revised Policy Document on Capital Funds for Islamic Banks ("Revised Policy Document"). This Revised Policy Document applies to banking institutions in Malaysia that covers licensed banks, licensed investment banks and licensed Islamic banks. The issuance of this Revised Policy Document has superseded two guidelines issued by BNM previously, namely Capital Funds and Capital Funds for Islamic Banks dated 1 July 2013. The key changes in the Revised Policy Document are: (a) the removal of the requirement on maintenance of a reserve fund; and (b) the revised component of capital funds shall exclude share premium and reserve fund. During the financial period ended 30 September 2017, the Bank has transferred RM1,392,158,939 from reserve fund to its retained earnings pursuant to the Revised Policy Document. 2. Auditors’ reports on preceding financial period financial statements The auditors’ report on the audited financial statements for the financial year ended 31 December 2016 was not qualified. 3. Seasonal or cyclical factors The operations of the Bank were not materially affected by any seasonal or cyclical factors in the nine months ended 30 September 2017. 4. Unusual items There were no unusual items in the nine months ended 30 September 2017. 5. Changes in accounting estimates There was no material change in estimates of amounts reported in the prior financial year that has a material effect to the financial statements for the nine months ended 30 September 2017. 6. Sukuk and equity securities On 15 June 2017, the Bank increased its share capital by RM134,166,500 via the issuance of 41,282,000 new ordinary shares and on 20 September 2017, the Bank further increased its share capital by RM66,157,000 via the issuance of 20,356,000 new ordinary shares at a consideration of RM3.25 each arising from the Dividend Reinvestment Plan, as disclosed in Note 22. There was no issuance or repayment of Sukuk or share buy-back during the nine months ended 30 September 2017. 11
12. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 7. Significant events during the nine months ended 30 September 2017 There was no other significant event during the nine months ended 30 September 2017. 8. Dividends On 15 June 2017, the Bank paid a final dividend of approximately 5.58 sen per ordinary share totalling RM134,166,500 for the financial year ended 31 December 2016. The dividend was subsequently reinvested by the shareholder under the Dividend Reinvestment Plan (Note 22). On 20 September 2017, the Bank paid an interim dividend of approximately 5.41 sen per ordinary share totalling RM132,310,500 for the financial year ending 31 December 2017. Fifty percent of the interim dividend was subsequently reinvested by the shareholder under the Dividend Reinvestment Plan (Note 22). 9. Cash and short-term funds Group 30.09.2017 31.12.2016 RM’000 RM’000 Cash and balances with banks and other financial institutions Money at call and interbank placements with remaining maturity not exceeding one month 10. Bank 30.09.2017 31.12.2016 RM’000 RM’000 804,425 932,674 803,548 932,525 115,609 3,030,743 115,609 3,030,743 920,034 3,963,417 919,157 3,963,268 Deposits and placements with banks and other financial institutions Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Licensed Islamic banks 11. - 100,000 Financial assets held-for-trading Group 30.09.2017 31.12.2016 RM’000 RM’000 At fair value Malaysian Government Investment Issues Sukuk Unit trust 324,500 245,250 5,085 574,835 274,060 100,742 5,217 380,019 12 Bank 30.09.2017 31.12.2016 RM’000 RM’000 274,060 100,742 374,802 324,500 245,250 569,750
13. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 12. Derivative financial assets/liabilities The following tables summarise the contractual or underlying principal amounts of derivative financial instruments held at fair value through profit or loss and held for hedging purposes. The principal or contractual amounts of these instruments reflect the volume of transactions outstanding at financial position date, and do not represent amounts at risk. Trading derivative financial instruments are revalued on a gross position and the unrealised gains or losses are reflected as derivative financial assets and liabilities respectively. 30.09.2017 Fair value Assets Liabilities RM’000 RM’000 Group and Bank Principal amount RM’000 Forward contracts Profit rate swaps 3,140,402 615,146 26,380 4,337 (36,018) (2,027) 3,755,548 30,717 (38,045) Principal amount RM’000 Forward contracts Profit rate swaps 13 31.12.2016 Fair value Assets Liabilities RM’000 RM’000 3,117,570 836,027 117,445 7,127 (107,469) (3,620) 3,953,597 124,572 (111,089)
14. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 13. Financial assets available-for-sale Group 30.09.2017 31.12.2016 RM’000 RM’000 At fair value Malaysian Government Investment Issues ^ Negotiable Islamic Debt Certificates Sukuk Bank 30.09.2017 31.12.2016 RM’000 RM’000 1,760,312 2,057,324 1,760,312 2,057,324 7,627,182 9,387,494 496,681 7,367,563 9,921,568 7,627,639 9,387,951 496,681 7,368,020 9,922,025 At fair value Quoted shares - outside Malaysia Quoted unit trust - in Malaysia 18,985 21,124 18,985 21,124 13,791 32,776 9,294 30,418 13,791 32,776 9,294 30,418 At cost Unquoted shares in Malaysia* Less: Accumulated impairment loss * 24,282 25,468 24,282 25,468 (19,001) 5,281 (20,187) 5,281 (19,001) 5,281 (20,187) 5,281 329 (310) 19 329 (310) 19 329 (310) 19 329 (310) 19 9,425,570 9,957,286 9,426,027 9,957,743 At cost Unquoted shares outside Malaysia Less: Impairment loss ^ Included in Malaysian Government Investment Issues as at 30 September 2017 is RM134,002,000 (2016: RM Nil) that form part of the Bank’s total Statutory Reserve Requirement (“SRR”) balances other than statutory deposits with Bank Negara Malaysia. * Movement in unquoted shares and accumulated impairment loss is due to translation difference. 14. Financial assets held-to-maturity Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 At amortised cost Unquoted Sukuk in Malaysia Less: Accumulated impairment loss 14 6,887 (6,887) 64,590 (6,887) - 57,703
15. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 15. Financing, advances and others (a) By type and Shariah contract Group and Bank 30 September 2017 At amortised cost Cash line Term financing House financing ^ Syndicated financing Leasing financing Bridging financing Personal financing ^ Other term financing Staff financing Credit cards Trade bills discounted Trust receipts Pawn broking Investment Account Platform * Bai’ Bithaman Ajil Murabahah RM’000 RM’000 Bai’ Al-Dayn RM’000 Bai’ Al-Inah RM’000 AtTawarruq RM’000 Ijarah Muntahiah Bit-Tamleek RM’000 Ijarah Thumma Al-Bai’ RM’000 Istisna’ RM’000 Ar-Rahnu RM’000 Total RM’000 - - - 33,127 1,092,144 - - - - 1,125,271 4,200,015 1,708,664 74,435 - 1,098,463 7,468 624,082 4,538 - 149,711 - 45,802 24,168 3,511 7,610 - 11,337,956 496,126 11,980,194 6,851,704 125,611 439,002 - 80,177 - 117,653 382 - 56,545 74,816 1,346 12,376 - 84,863 15,594,516 659,581 80,559 74,816 12,004,362 9,663,688 219,890 446,612 773,793 4,538 84,863 - - - - 16,599 - - - - 16,599 5,983,114 1,734,551 149,711 114,218 32,339,336 80,177 118,035 145,083 84,863 40,749,088 Allowance for impairment on financing, advances and others - collective assessment allowance - individual assessment allowance (509,684) (138,078) Net financing, advances and others 40,101,326 15
16. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 15. Financing, advances and others (continued) (a) By type and Shariah contract (continued) Group and Bank 31 December 2016 At amortised cost Cash line Term financing House financing ^ Syndicated financing Leasing financing Bridging financing Personal financing ^ Other term financing Staff financing Credit cards Trade bills discounted Trust receipts Pawn broking Investment Account Platform * Bai’ Bithaman Ajil Murabahah RM’000 RM’000 Bai’ Al-Dayn RM’000 Bai’ Al-Inah RM’000 AtTawarruq RM’000 Ijarah Muntahiah Bit-Tamleek RM’000 Ijarah Thumma Al-Bai’ RM’000 Istisna’ RM’000 Ar-Rahnu RM’000 Total RM’000 - - - 37,899 1,199,021 - - - - 1,236,920 4,484,247 2,086,188 83,743 - 933,316 5,087 741,037 5,169 - 180,010 - 196,129 42,177 4,063 9,004 - 9,503,014 1,045,889 11,197,744 7,106,669 98,821 450,388 - 90,610 - 123,189 902 - 59,088 82,313 1,503 14,218 - 85,315 14,046,349 1,365,207 91,512 82,313 11,239,921 10,131,739 201,869 459,392 921,047 5,169 85,315 - - - - 5,690 - - - - 5,690 6,654,178 1,684,609 180,010 289,272 30,607,236 90,610 124,091 157,122 85,315 39,872,443 Allowance for impairment on financing, advances and others - collective assessment allowance - individual assessment allowance (554,971) (128,198) Net financing, advances and others 39,189,274 16
17. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 15. Financing, advances and others (continued) (a) By type of and Shariah contract (continued) ^ Included in house financing and personal financing as at 30 September 2017 are underlying assets under the Unrestricted Investment Accounts (“URIA”) amounting to RM3,101,368,000 (2016: RM2,687,318,000) and RM1,204,444,000 (2016: RM1,124,943,000) respectively as disclosed in Note 18 of these interim financial statements. * This represents a term financing of the Group’s and the Bank’s participation through Investment Account Platform (“IAP”) to finance viable ventures. (b) By type of customer Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Domestic non-bank financial institutions Domestic business enterprise Small and medium industries Government and statutory bodies Individuals Other domestic entities Foreign entities 1,229,116 6,258,442 889,953 574,848 31,104,541 8,356 683,832 1,376,559 6,908,806 896,530 938,069 28,957,975 7,239 787,265 40,749,088 39,872,443 (c) By profit rate sensitivity Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Fixed rate House financing Others Floating rate House financing Others 1,173,339 3,773,379 1,268,632 4,059,422 15,040,541 20,761,829 13,382,969 21,161,420 40,749,088 39,872,443 (d) By remaining contractual maturity Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Maturity within one year More than one year to three years More than three years to five years More than five years 17 3,704,396 1,328,376 2,724,729 32,991,587 4,312,581 1,400,480 2,197,573 31,961,809 40,749,088 39,872,443
18. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 15. Financing, advances and others (continued) (e) By geographical distribution Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Central Region Eastern Region Northern Region Southern Region East Malaysia Region 18,303,611 7,011,508 6,077,028 6,099,851 3,257,090 18,853,925 6,534,376 5,864,200 5,499,121 3,120,821 40,749,088 39,872,443 (f) By sector Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Primary agriculture Mining and quarrying Manufacturing (including agro-based) Electricity, gas and water Wholesale & retail trade, and hotels & restaurants Construction Real estate Transport, storage and communications Finance, insurance and business activities Education, health and others Household sectors 18 410,512 9,807 735,648 332,800 1,161,057 1,977,034 1,429,926 610,619 2,005,902 960,727 31,115,056 377,285 12,931 747,410 868,319 1,274,954 2,161,215 1,205,740 870,559 2,134,947 1,256,209 28,962,874 40,749,088 39,872,443
19. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 15. Financing, advances and others (continued) (g) Movement in impaired financing and advances (“impaired financing”) are as follows: Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 At 1 January 2017/ 2016 Classified as impaired during the period/year Reclassified as not impaired during the period/year Amount recovered Amount written off Exchange differences At 30 September 2017/ 31 December 2016 Gross impaired financing as a percentage of gross financing, advances and others 389,445 381,270 458,740 (224,256) (71,973) (111,429) (4,077) 580,341 (284,602) (112,502) (178,052) 2,990 436,450 389,445 1.07% 0.98% (h) Impaired financing by geographical distribution Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Central Region Eastern Region Northern Region Southern Region East Malaysia Region 160,516 127,406 36,880 27,810 83,838 142,841 92,848 36,299 31,329 86,128 436,450 389,445 (i) Impaired financing by sector Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Primary agriculture Manufacturing (including agro-based) Wholesale & retail trade, and hotels & restaurants Construction Transport, storage and communications Finance, insurance and business activities Education, health and others Household sectors 19 1,331 35,669 39,567 30,641 12,889 69,842 20,418 226,093 1,311 36,739 25,651 13,714 15,579 70,948 3,076 222,427 436,450 389,445
20. Bank Islam Malaysia Berhad (98127-X) (Incorporated in Malaysia) Unaudited Interim Financial Statements 15. Financing, advances and others (continued) (j) Movement of allowance for impairment on financing, advances and others Group and Bank 30.09.2017 31.12.2016 RM’000 RM’000 Collective assessment allowance At 1 January 2017/ 2016 554,971 Allowance made during the period/year Amount written off Exchange differences 64,001 (108,320) (968) At 30 September 2017/ 31 December 2016 541,065 161,667 (146,725) (1,036) 509,684 554,971 At 1 January 2017/ 2016 128,198 124,471 Allowance made during the period/year Amount recovered Amount written off Exchange differences 33,377 (16,355) (3,065) (4,077) 54,566 (23,904) (29,928) 2,993 At 30 September 2017/ 31 December 2016 138,078 128,198 Individual assessment allowance 16. Other assets Group 30.09.2017 31.12.2016 RM’000 RM’000 Other receivables Less: Impairment loss Deposit and prepayments Related companies* Bank 30.09.2017 31.12.2016 RM’000 RM’000 10,557 (256) 10,301 39,168 661 65,825 (256) 65,569 32,741 705 8,452 (256) 8,196 37,733 1,224 63,968 (256) 63,712 31,441 775 50,130 99,015 47,153 95,928 * This relates to amounts due from holding and related companies that are non-trade in nature, not subject to financing charges and has no fixed term of repayments. 20