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Bank Rakyat: Consolidated Interim Financial Statements - 30 June 2020

IM Insights
By IM Insights
1 year ago
Bank Rakyat: Consolidated Interim Financial Statements - 30 June 2020

Sukuk, Takaful, Zakat, Credit Risk, Receivables, Reserves

Sukuk

Social Finance

Islamic Wealth Management Zero

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  1. CONSOLIDATED INTERIM FINANCIAL STATEMENTS FOR THE FINANCIAL HALF YEAR ENDED 30 JUNE 2020
  2. UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2020 Group 30 June 31 December 2020 2019 RM '000 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 855,643 1,060,218 855,039 1,059,600 334,152 700,069 334,152 700,069 1 674,533 636,693 674,533 636,693 2 3 4 21,820,110 9,922,540 72,835,854 3,067 555,933 58,246 5,076 687,593 285,062 1,354,226 58,419 138,399 572 22,273,842 10,261,091 70,967,646 324 1,139,698 64,287 6,790 696,761 294,321 1,322,726 59,182 139,957 673 21,820,102 9,922,540 72,931,400 544,024 82,111 100,744 590,986 271,877 1,008,047 58,419 137,455 - 22,273,834 10,261,091 71,042,565 1,121,584 90,230 100,744 598,167 281,136 1,008,047 59,182 137,455 - 109,589,425 109,624,278 109,331,429 109,370,397 Note ASSETS Cash and bank balances Deposits and placements with financial institutions Financial investments at fair value through profit or loss Financial investments at fair value through other comprehensive income Financial investments at amortised cost Financing and advances Trade receivables Other assets Right-of-use assets Inventories Investment in subsidiaries Property and equipment Intangible assets Investment properties Prepaid lease payment Tax recoverable Deferred tax assets TOTAL ASSETS 5 These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 1
  3. UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2020 (CONTINUED) Note Group 30 June 31 December 2020 2019 RM'000 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 LIABILITIES Deposits from customers Deposits and placements from banks and financial institutions Trade payables Recourse obligations on financing sold to Cagamas Debt securities issued Cashline facility Other liabilities Provision for taxation Deferred tax liabilities 6 7 TOTAL LIABILITIES 84,789,009 83,831,405 84,789,009 83,831,405 490,000 1,379 1,300,000 1,652 490,000 - 1,300,000 - 350,371 2,211,252 1,556,183 551 152,017 360,770 2,562,786 200,607 1,732,223 110 80,017 350,371 2,211,252 1,724,463 141,000 360,770 2,562,786 200,607 1,897,370 69,000 89,550,762 90,069,570 89,706,095 90,221,938 2,986,030 287 17,052,346 2,986,030 9,860 16,558,818 2,986,030 287 16,639,015 2,986,030 9,860 16,152,569 20,038,663 19,554,708 19,625,332 19,148,459 109,589,425 109,624,278 109,331,427 109,370,397 2,289,892 2,340,818 2,289,892 2,340,818 SHAREHOLDERS' FUND Share capital Share redemption fund Reserves 8 TOTAL SHAREHOLDERS' FUND TOTAL LIABILITIES AND SHAREHOLDERS' FUND COMMITMENTS AND CONTINGENCIES 14 These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 2
  4. UNAUDITED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2020 Group Note Income 9 Expenditure 10 2nd Quarter Ended 30 June 30 June 2020 2019 RM '000 RM'000 1,513,720 1,630,736 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 3,117,379 3,266,512 (704,296) (849,291) (1,485,886) (1,701,863) 809,424 781,445 1,631,493 1,564,649 Net income Allowance for impairment 11 (273,196) (135,494) (446,526) (357,999) Other operating income 12 173,867 123,369 255,224 302,886 Operating expenses 13 (313,991) (329,418) (650,148) (642,889) Profit before taxation and zakat 396,104 439,902 790,043 866,647 Taxation (69,517) (40,388) (97,479) (144,404) (7,571) (5,361) (8,171) (14,278) Zakat Profit after taxation and zakat 319,016 394,153 684,393 707,965 Items that may be reclassified subsequently to profit or loss: Net gain on revaluation of financial investments at fair value through other comprehensive income 303,792 177,718 214,160 364,472 Other comprehensive income for the period 303,792 177,718 214,160 364,472 Total comprehensive income for the period 622,808 571,871 898,553 1,072,437 Other comprehensive income These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 3
  5. UNAUDITED STATEMENTS OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE SECOND QUARTER AND SIX MONTHS ENDED 30 JUNE 2020 (CONTINUED) Bank Note Income 9 Expenditure 10 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 1,512,679 1,612,523 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 3,107,669 3,227,714 (703,267) (832,168) (1,478,022) (1,666,004) 809,412 780,355 1,629,647 1,561,710 Net income Allowance for impairment 11 (276,002) (135,494) (449,159) (357,999) Other operating income 12 165,780 122,182 247,143 300,408 Operating expenses 13 (312,241) (331,635) (649,003) (643,362) Profit before taxation and zakat 386,949 435,408 778,628 860,757 Taxation (66,530) (39,222) (93,324) (141,888) (7,493) (5,209) (7,993) (13,959) Zakat Profit after taxation and zakat 312,926 390,977 677,311 704,910 Items that may be reclassified subsequently to profit or loss: Net gain on revaluation of financial investments at fair value through other comprehensive income 303,792 177,718 214,160 364,472 Other comprehensive income for the period 303,792 177,718 214,160 364,472 Total comprehensive income for the period 616,718 568,695 891,471 1,069,382 Other comprehensive income These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 4
  6. UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2020 Non-distributable Group At 1 January 2019 Total comprehensive income for the period Issuance to new members Share withdrawal Transfer to share capital Distributable Share capital RM '000 Share redemption fund RM'000 Other reserves RM'000 Retained profits RM'000 Total RM'000 2,986,030 19,104 6,535,696 8,332,894 17,873,724 - - 364,472 707,965 1,072,437 5,064 - - - 5,064 (10,509) - - - (10,509) - - 5,445 (5,445) Dividends - - - Overprovision in contribution to Bank Rakyat Foundation - - - 368 368 At 30 June 2019 2,986,030 13,659 6,900,168 8,662,254 18,562,111 At 1 January 2020 2,986,030 9,860 7,450,144 9,108,674 19,554,708 - - 214,160 684,393 898,553 5,401 - - - 5,401 (14,974) - - - (14,974) - - Total comprehensive income for the period Issuance to new members Share withdrawal Transfer to share capital 9,573 (9,573) (378,973) - - Dividends - - - Overprovision in contribution to Bank Rakyat Foundation - - - 459 459 2,986,030 287 7,664,304 9,388,042 20,038,663 At 30 June 2020 (405,484) (378,973) These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 5 (405,484)
  7. UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2020 (CONTINUED) Non-distributable Bank At 1 January 2019 Total comprehensive income for the period Issuance to new members Share withdrawal Transfer to share capital Distributable Share capital RM'000 Share redemption fund RM'000 Other reserves RM'000 Retained profits RM'000 Total RM'000 2,986,030 19,104 6,536,437 7,954,575 17,496,146 - - 364,472 704,910 1,069,382 5,064 - - - 5,064 (10,509) - - - (10,509) - - 5,445 (5,445) Dividends - - - Overprovision in contribution to Bank Rakyat Foundation - - - 368 368 At 30 June 2019 2,986,030 13,659 6,900,909 8,280,880 18,181,478 At 1 January 2020 2,986,030 9,860 7,450,885 8,701,684 19,148,459 - - 214,160 677,311 891,471 5,401 - - - 5,401 (14,974) - - - (14,974) - - Total comprehensive income for the period Issuance to new members Share withdrawal Transfer to share capital 9,573 (9,573) (378,973) - - Dividends - - - Overprovision in contribution to Bank Rakyat Foundation - - - 459 459 2,986,030 287 7,665,045 8,973,970 19,625,332 At 30 June 2020 (405,484) (378,973) These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 6 (405,484)
  8. UNAUDITED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2020 Group Six Months Ended 30 June 30 June 2020 2019 RM '000 RM'000 Bank Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 684,393 707,965 677,311 704,910 97,479 8,171 57,268 144,404 14,278 66,572 93,324 7,993 57,268 141,888 13,959 66,572 447,517 359,265 450,150 359,265 CASH FLOWS GENERATED FROM/ (USED IN) OPERATING ACTIVITIES Profit for the period Adjustments for: Taxation Zakat Profit expense on debt securities issued Allowance for impairment on financing and advances (Writeback)/allowance for impairment on financial investment at fair value through other comprehensive income Writeback for impairment on financial investment at amortised cost Depreciation of property and equipment Depreciation of right-of-use assets Amortisation of prepaid lease payment Amortisation of intangible assets Property and equipment written off Gain on disposal of property and equipment Loss on financing written off Gain on revaluation of investment properties Impairment for trade and other receivables Allowance for doubtful debts Writeback for impairment on trade receivables Net gain on disposal of financial investment at fair value through profit or loss Net loss/(gain) on revaluation of financial investments at fair value through profit or loss Net gain on disposal of financial investments at fair value through other comprehensive income Profit expense on financing sold with recourse to Cagamas Profit expense on cashline facility Dividend from financial investments at fair value through profit or loss Operating profit before working capital changes (95) (896) 24,058 5,965 763 11,790 50 5,403 (8,055) 1,035 - 220 (1,486) 28,161 763 12,032 24 (76) 6,874 (2,438) (78) (95) (896) 22,078 6,705 763 11,790 50 5,403 990 220 (1,486) 27,493 763 12,032 24 (74) 6,874 - - - (10,961) (7,659) (10,961) (7,659) 57,862 (90,706) 57,862 (90,706) (120,305) (129) (120,305) (129) 8,947 1,988 16,487 - 8,947 1,988 16,487 - (17,267) (4,052) (17,267) (4,052) 1,255,110 1,250,421 1,253,098 1,246,381 These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 7
  9. UNAUDITED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2020 (CONTINUED) Group Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Bank Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 (Increase)/Decrease in assets: Deposits and placements with financial institutions Financing and advances Trade receivables Other assets Inventories 365,917 (2,296,090) (2,788) 582,851 1,714 330,028 (1,017,433) 938 33,117 (3,894) 365,917 (2,319,350) 577,986 - 330,028 (1,017,433) 27,112 - Increase/(Decrease) in liabilities: Deposits from customers Deposits and placements from banks and financial institutions Trade payables Recourse obligations on financing sold to Cagamas Other liabilities Cash generated from operations 957,604 658,568 957,604 658,568 (810,000) (273) 458,850 (141) (810,000) - 458,850 - (19,346) (209,924) (36,023) (82,159) (19,346) (207,211) (36,023) (88,150) (175,225) Income tax paid Zakat paid Net cash generated from operating activities (23,379) (25,108) (223,712) 1,592,272 (97,316) (14,863) 1,480,093 (201,302) (21,324) (24,510) (247,136) 1,579,333 (99,347) (14,507) 1,465,479 CASH FLOWS GENERATED FROM/ (USED IN) INVESTING ACTIVITIES Purchases of financial investments at fair value through profit or loss Net proceed from disposal of financial investments at fair value through profit or loss Purchases of financial investments at fair value through other comprehensive income Net proceed from disposal of financial investment at fair value through other comprehensive income (1,340,000) (1,920,000) (1,340,000) (1,920,000) 1,255,259 2,036,270 1,255,259 2,036,270 (2,425,000) (1,840,000) (2,425,000) (1,840,000) 3,213,292 1,075,372 3,213,292 1,075,372 These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 8
  10. UNAUDITED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2020 (CONTINUED) Group Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Bank Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 CASH FLOWS GENERATED FROM/ (USED IN) INVESTING ACTIVITIES (CONTINUED) Purchases of financial investments at amortised cost Proceed from disposal of financial investments at amortised cost Purchases of investment property Purchases of property and equipment Purchases of intangible assets Proceeds from disposal of property and equipment Dividend from financial investments at fair value through profit or loss Net cash used in investing activities (1,860,000) (505,000) (1,860,000) (990,000) 2,199,447 (23,445) (15,017) (2,531) 786,308 (14,269) (352,124) (9,254) 2,199,447 (14,954) (2,531) 1,271,308 (13,963) (9,254) 77 337,898 7 74 17,267 4,052 17,267 4,052 1,019,349 (400,747) 1,042,787 (386,141) CASH FLOWS GENERATED FROM/ (USED IN) FINANCING ACTIVITIES Proceeds from issue of shares to members Dividend paid Fund received from government Payment of profit expenses on debt securities issued Repayment of lease liabilities Repayment of cashline facility Receipt of cashline facility Net cash used in financing activities 5,401 (405,484) 23,885 5,064 (378,973) - 5,401 (405,484) 23,885 5,064 (378,973) - (408,802) (12,617) (602,595) 400,000 (496,120) - (408,802) (12,617) (602,595) 400,000 (496,120) - (1,000,212) (870,029) (1,000,212) (870,029) Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period (204,575) 209,317 (204,561) 209,309 1,060,218 833,602 1,059,600 831,426 Cash and cash equivalents at end of period 855,643 1,042,919 855,039 1,040,735 These interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 December 2019 9
  11. EXPLANATORY NOTES PURSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARD 134 (“MFRS 134”) Basis of Preparation The unaudited interim financial statements for the second quarter and six months ended 30 June 2020 have been prepared under historical cost convention except for the following assets and liabilities which are stated at fair values, i.e. financial investments at fair value through profit or loss, financial investments at fair value through other comprehensive income, and investment properties. The unaudited interim financial statements have been prepared in accordance with MFRS 134, Interim Financial Reporting issued by Malaysian Accounting Standards Board (”MASB”). The unaudited interim financial statements should be read in conjunction with the audited financial statements of the Group and the Bank for the financial year ended 31 December 2019. The explanatory notes attached to the 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 December 2019. Auditors’ Report on Preceding Annual Financial Statements The auditors’ report on the audited financial statements for the financial year ended 31 December 2019 was not qualified. Comments on Seasonal or Cyclical Factors The operations of the Group and the Bank were not materially affected by any seasonal or cyclical factors in the second quarter and six months ended 30 June 2020. Unusual Items Due to Their Nature, Size or Incidence There were no unusual items affecting the assets, liabilities, shareholders’ fund, net income or cash flows of the Group and the Bank in the second quarter and six months ended 30 June 2020. Changes in Estimates There were no material changes in estimates of amounts reported in prior financial years that have a material effect in the second quarter and six months ended 30 June 2020. Debt and Equity Securities There was no new issuance of debt securities by the Bank during the period. Dividends Paid and Distributed During the six months ended 30 June 2020, final dividend for the year ended 31 December 2019 was paid amounting to RM 405,484,000 comprising of 14% cash dividend. 10
  12. EXPLANATORY NOTES PURSUANT TO MALAYSIAN FINANCIAL REPORTING STANDARD 134 (“MFRS 134”) (CONTINUED) Significant Changes in Regulatory Requirements Based on the BNM’s revised guideline on Financial Reporting for Development Financial Institutions, the prescribed development financial institutions (“DFIs”) shall make one-time election in 2020 to apply revision to the original effective profit rate in respect of any modifications made to the contractual cash flows of the financing. In the event of election, the requirements shall apply for two financial years beginning on or after 1 January 2020 and in respect of financing for which the contractual cash flows are modified, including payments deferred under moratoriums provided by DFIs during these two financial years. The Group and the Bank elected to adopt the modified accounting treatment and in the midst of assessing the financial implication of the modified accounting treatment. The impact will be reflected accordingly beginning third quarter financial reporting ended 30 September 2020. NOTE 1: FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS Group and Bank 30 June 31 December 2020 2019 RM'000 RM'000 Debt instruments at fair value through profit or loss: Government investment issues Islamic redeemable convertible preference shares Equity securities at fair value through profit or loss: Quoted shares Unit trust shares Total financial investments at fair value through profit or loss 11 302,723 157,486 203,465 211,282 506,188 368,768 166,806 1,539 266,325 1,600 168,345 267,925 674,533 636,693
  13. NOTE 2 : FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME Debt instruments at fair value through other comprehensive income: Islamic debt securities Government investment issues Government sukuk Khazanah sukuk Cagamas sukuk Equity securities at fair value through other comprehensive income: Unquoted shares Total financial investments at fair value through other comprehensive income 30 June 2020 RM'000 Group 31 December 2019 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 5,098,173 6,347,569 7,927,793 231,093 2,168,636 4,608,879 9,100,909 6,134,061 229,607 2,153,540 5,098,173 6,347,569 7,927,793 231,093 2,168,636 4,608,879 9,100,909 6,134,061 229,607 2,153,540 21,773,264 22,226,996 21,773,264 22,226,996 46,846 46,846 46,838 46,838 46,846 46,846 46,838 46,838 21,820,110 22,273,842 21,820,102 22,273,834 Movement of allowance for Expected Credit Loss (“ECL”) by stage for debt instruments at fair value through other comprehensive income is as follows: 12-month ECL Stage 1 RM'000 Group and Bank At 1 January 2019 Changes in credit risk At 31 December 2019 / 1 January 2020 Changes in credit risk At 30 June 2020 475 (201) 274 (95) 179 12
  14. NOTE 3 : FINANCIAL INVESTMENTS AT AMORTISED COST Group and Bank 30 June 31 December 2020 2019 RM'000 RM'000 At amortised cost Islamic debt securities Government investment issues Government sukuk Khazanah sukuk Cagamas sukuk Negotiable Islamic debt certificates Islamic commercial papers Less: Allowance for ECL Negotiable Islamic debt certificates Islamic debt securities Total financial investments at amortised cost 701,890 4,953,696 2,962,520 235,022 708,869 299,945 79,625 735,102 5,480,591 2,900,312 304,401 711,149 99,599 49,860 9,941,567 10,281,014 (19,027) (17) (19,906) (19,027) (19,923) 9,922,540 10,261,091 Lifetime ECL Credit Impaired Stage 3 RM'000 Total RM'000 Movement of allowance for ECL by stage is as follows: 12-month ECL Stage 1 RM'000 Group and Bank At 1 January 2019 Changes in credit risk At 31 December 2019 / 1 January 2020 Changes in credit risk At 30 June 2020 55 39 94 (40) 54 13 22,169 (2,340) 19,829 (856) 18,973 22,224 (2,301) 19,923 (896) 19,027
  15. NOTE 4 : FINANCING AND ADVANCES (i) By type of financing 30 June 2020 RM'000 Group 31 December 2019 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 Term financing - Personal financing - House financing - Hire-purchase receivables - Syndicated financing - Bridging financing - Other term financing Pawn broking Cashline Revolving credit Credit card Staff financing 56,911,966 6,986,785 1,861,634 307,633 337,558 4,958,027 1,943,574 95,793 361,179 348,423 466,445 55,525,588 6,653,654 1,854,630 237,085 283,521 4,637,701 1,944,649 66,503 347,700 406,699 458,250 56,911,966 7,094,691 1,861,634 307,633 337,558 4,958,027 1,943,574 95,793 361,179 348,423 466,445 55,525,588 6,738,300 1,854,630 237,085 283,521 4,637,701 1,944,649 66,503 347,700 406,699 458,250 Gross financing and advances, net of unearned income 74,579,017 72,415,980 74,686,923 72,500,626 At amortised cost Allowance for ECL on financing and advances: Stage 1 - 12 months ECL Stage 2 - lifetime ECL not credit impaired Stage 3 - lifetime ECL credit impaired Net financing and advances (446,455) (438,200) (858,508) 72,835,854 14 (240,167) (397,011) (811,156) 70,967,646 (458,815) (438,200) (858,508) 72,931,400 (249,894) (397,011) (811,156) 71,042,565
  16. NOTE 4 : FINANCING AND ADVANCES (CONTINUED) (ii) By type of customer Individuals Business enterprises Non-bank financial institutions - Co-operatives Non-bank financial institutions - Others Foreign entities Other entities (iii) 30 June 2020 RM'000 Group 31 December 2019 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 69,541,852 2,450,486 67,910,842 1,931,899 69,541,852 2,558,392 67,910,842 2,016,545 2,408,620 2,426,352 2,408,620 2,426,352 5,439 172,620 319 2,097 144,471 5,439 172,620 319 2,097 144,471 74,579,017 72,415,980 74,686,923 72,500,626 30 June 2020 RM'000 Group 31 December 2019 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 1,361 880,579 69,106,484 90,662 106,040 1,799 1,101,568 319,520 250,886 2,668,516 51,602 1,815 820,354 67,508,049 62,930 141,538 990 749,747 232,079 85,094 2,614,715 198,669 1,361 880,579 69,106,484 90,662 106,040 1,799 1,101,568 319,520 250,886 2,776,422 51,602 1,815 820,354 67,508,049 62,930 141,538 990 749,747 232,079 85,094 2,699,361 198,669 74,579,017 72,415,980 74,686,923 72,500,626 By economic sector Purchase of securities Purchase of non-residential property Consumption credit Agriculture Manufacturing Electricity, gas and water Construction Wholesale and retail trade Transportation and communication Financial, takaful and business services Community, social and personal services 15
  17. NOTE 4 : FINANCING AND ADVANCES (CONTINUED) (iv) Impaired financing and advances by economic sector Group and Bank 30 June 31 December 2020 2019 RM'000 RM'000 Purchase of securities Purchase of non-residential property Consumption credit Agriculture Manufacturing Construction Wholesale and retail trade Transportation and communication Financial, takaful and business services (v) 92 24,662 581,832 23,343 71,186 222,783 31,956 11,478 519,292 68 25,784 518,303 22,893 70,185 241,195 5,743 11,040 501,063 1,486,624 1,396,274 Movement in impaired financing and advances Group and Bank 30 June 31 December 2020 2019 RM'000 RM'000 As of 1 January 1,396,274 Classified as impaired during the period Amount written back in respect of recoveries Amount written off during the period 593,596 (375,596) (127,650) 90,350 Closing balance Gross impaired financing and advances as a percentage of gross financing and advances 16 1,490,750 1,287,592 (894,879) (487,189) (94,476) 1,486,624 1,396,274 1.99% 1.93%
  18. NOTE 4 : FINANCING AND ADVANCES (CONTINUED) (vi) Movements in allowance for ECL on financing and advances are as follows: Group 12-month ECL Stage 1 RM'000 Lifetime ECL Not Credit Impaired Stage 2 RM'000 Lifetime ECL Credit Impaired Stage 3 RM'000 Total RM'000 428,090 118,761 850,158 1,397,009 ECL Allowance As of 1 January 2019 Changes due to financing and advances movements: - Transfer to 12-month ECL (Stage 1) - Transfer to lifetime ECL not credit impaired (Stage 2) - Transfer to lifetime ECL credit impaired (Stage 3) New financial assets originated Changes in credit risk Financial assets derecognised Changes to models used for ECL calculations Amount written off 2,191 (2,099) (5,168) (5,076) (50,784) 112,093 (96,693) (35,384) (4,745) 123,344 (65,936) (77,757) (12,735) 12,566 (39,143) (17,440) 555,456 34,175 29,071 (44,026) 537,976 170,085 (76,008) (139,223) (114,236) - 225,008 - (24,628) (487,189) 86,144 (487,189) At 31 December 2019 240,167 397,011 811,156 1,448,334 As of 1 January 2020 Changes due to financing and advances movements: - Transfer to 12-month ECL (Stage 1) - Transfer to lifetime ECL not credit impaired (Stage 2) - Transfer to lifetime ECL credit impaired (Stage 3) New financial assets originated Changes in credit risk Financial assets derecognised Amount written off 240,167 397,011 811,156 1,448,334 At 30 June 2020 4,089 (17,813) (214) (13,938) (8,264) 76,526 (71,868) (3,606) (678) 45,078 179,026 (12,963) - (31,629) 1,220 25,356 (12,471) - 181,463 21,775 59,384 (15,538) (127,650) 149,156 68,073 263,766 (40,972) (127,650) 446,455 438,200 858,508 17 1,743,163
  19. NOTE 4 : FINANCING AND ADVANCES (CONTINUED) (vi) Movements in allowance for ECL on financing and advances are as follows: Bank 12-month ECL Stage 1 RM'000 Lifetime ECL Not Credit Impaired Stage 2 RM'000 Lifetime ECL Credit Impaired Stage 3 RM'000 Total RM'000 428,090 118,761 850,158 1,397,009 ECL Allowance As of 1 January 2019 Changes due to financing and advances movements: - Transfer to 12-month ECL (Stage 1) - Transfer to lifetime ECL not credit impaired (Stage 2) - Transfer to lifetime ECL credit impaired (Stage 3) New financial assets originated Changes in credit risk Financial assets derecognised Changes to models used for ECL calculations Amount written off 2,191 (2,099) (5,168) (5,076) (50,784) 112,093 (96,693) (35,384) (4,745) 133,071 (65,936) (77,757) (12,735) 12,566 (39,143) (17,440) 555,456 34,175 29,071 (44,026) 537,976 179,812 (76,008) (139,223) (114,236) - 225,008 - (24,628) (487,189) 86,144 (487,189) At 31 December 2019 249,894 397,011 811,156 1,458,061 As of 1 January 2020 Changes due to financing and advances movements: - Transfer to 12-month ECL (Stage 1) - Transfer to lifetime ECL not credit impaired (Stage 2) - Transfer to lifetime ECL credit impaired (Stage 3) New financial assets originated Changes in credit risk Financial assets derecognised Amount written off 249,894 397,011 811,156 1,458,061 At 30 June 2020 4,089 (17,813) (214) (13,938) (8,264) 76,526 (71,868) (3,606) (678) 45,078 181,659 (12,963) - (31,629) 1,220 25,356 (12,471) - 181,463 21,775 59,384 (15,538) (127,650) 149,156 68,073 266,399 (40,972) (127,650) 458,815 438,200 858,508 18 1,755,523
  20. NOTE 5 : OTHER ASSETS 30 June 2020 RM'000 Amount due from subsidiaries Other receivables Allowance for ECL Refundable deposits Prepayments Contribution to Central Liquidity Monetary Fund Group 31 December 2019 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 160,541 (30,533) 46,973 178,952 737,812 (20,563) 45,440 177,009 26,667 158,304 (29,783) 10,214 178,622 13,148 741,208 (19,813) 10,185 176,856 200,000 200,000 200,000 200,000 555,933 1,139,698 544,024 1,121,584 NOTE 6: DEPOSITS FROM CUSTOMERS (i) By type of deposit Group and Bank 30 June 31 December 2020 2019 RM'000 RM'000 Savings deposits Qard Term deposits Tawarruq Negotiable Islamic debt certificate (ii) 7,333,643 6,600,630 73,625,366 71,217,750 3,830,000 6,013,025 84,789,009 83,831,405 By type of customer Group and Bank 30 June 31 December 2020 2019 RM'000 RM'000 Government Business enterprises Co-operatives Individuals Others 19 37,921,637 24,867,449 2,404,495 18,412,613 1,182,815 36,682,261 26,572,859 2,286,547 16,531,690 1,758,048 84,789,009 83,831,405
  21. NOTE 7 : OTHER LIABILITIES Amount due to subsidiaries Sundry creditors Income payable Other liabilities and accruals Lease liabilities Allowance for ECL on financial guarantee Government fund Zakat payable 30 June 2020 RM'000 Group 31 December 2019 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 198,731 640,007 406,195 54,687 36,151 189,709 30,703 207,017 675,759 561,203 65,875 11,113 163,616 47,640 155,305 217,505 640,007 377,565 79,786 36,151 189,709 28,435 196,557 217,285 675,759 495,972 92,116 11,113 163,616 44,952 1,556,183 1,732,223 1,724,463 1,897,370 30 June 2020 RM'000 Group 31 December 2019 RM'000 30 June 2020 RM'000 Bank 31 December 2019 RM'000 9,388,042 6,492,462 14,617 9,108,674 6,492,462 14,617 8,973,970 6,492,462 15,358 8,701,684 6,492,462 15,358 827,553 329,672 613,393 329,672 827,553 329,672 613,393 329,672 17,052,346 16,558,818 16,639,015 16,152,569 NOTE 8: RESERVES Retained profits Statutory reserve Capital reserve Fair value reserve of financial investments at FVOCI Regulatory reserve NOTE 9: INCOME Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income derived from investment of depositors' fund (i) 1,187,334 1,270,220 2,433,030 2,539,217 Income derived from investment of shareholders' fund (ii) 322,214 342,303 669,659 688,497 4,172 18,213 14,690 38,798 1,513,720 1,630,736 3,117,379 3,266,512 Income generated by subsidiaries (iii) 20
  22. NOTE 9 : INCOME (CONTINUED) Bank (i) 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income derived from investment of depositors' fund (i) 1,189,793 1,270,220 2,436,935 2,539,217 Income derived from investment of shareholders' fund (ii) 322,886 342,303 670,734 688,497 1,512,679 1,612,523 3,107,669 3,227,714 Income derived from investment of depositors' fund Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income from financing and advances 933,764 1,004,153 1,913,952 2,009,506 6,525 1,123 10,179 2,088 247,045 264,944 508,899 527,623 1,187,334 1,270,220 2,433,030 2,539,217 Income from deposits and placements with bank and financial institutions Income from financial investments Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income from financing and advances 936,223 1,004,153 1,917,857 2,009,506 6,525 1,123 10,179 2,088 247,045 264,944 508,899 527,623 1,189,793 1,270,220 2,436,935 2,539,217 Income from deposits and placements with bank and financial institutions Income from financial investments 21 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000
  23. NOTE 9 : INCOME (CONTINUED) (ii) Income derived from investment of shareholders' fund Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income from financing and advances 253,399 270,599 526,790 544,869 1,782 303 2,801 566 67,033 71,401 140,068 143,062 322,214 342,303 669,659 688,497 Income from deposits and placements with bank and financial institutions Income from financial investments Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income from financing and advances 254,070 270,599 527,864 544,869 1,783 303 2,802 566 67,033 71,401 140,068 143,062 322,886 342,303 670,734 688,497 Income from deposits and placements with bank and financial institutions Income from financial investments (iii) Income generated by subsidiaries Group Agency income Pawning income Rental income Management fee Sale of goods Other charges 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 2,286 196 1,674 16 - 519 14,779 749 2,091 75 - 10,828 481 3,297 84 - 2,787 29,579 1,596 4,677 158 1 4,172 18,213 14,690 38,798 22
  24. NOTE 10 : EXPENDITURE Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income attributable to depositors (i) 668,497 791,905 1,407,337 1,580,637 4,441 8,186 8,947 16,487 27,965 31,088 57,268 66,572 Profit expense on cashline facility 1,110 - 1,988 - Cost of sales 2,282 18,112 10,345 38,167 704,295 849,291 1,485,885 1,701,863 Profit expense on financing sold with recourse to Cagamas Profit expense on debt securities issued Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Income attributable to depositors (i) 669,751 792,894 1,409,819 1,582,945 4,441 8,186 8,947 16,487 27,965 31,088 57,268 66,572 1,110 - 1,988 - 703,267 832,168 1,478,022 1,666,004 Profit expense on financing sold with recourse to Cagamas Profit expense on debt securities issued Profit expense on cashline facility 23 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000
  25. NOTE 10 : EXPENDITURE (CONTINUED) (i) Income attributable to depositors Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Deposits from customers Non-Mudarabah 666,360 784,854 1,396,325 1,566,184 2,137 7,051 11,012 14,453 668,497 791,905 1,407,337 1,580,637 Deposits and placements from banks and other financial institutions Non-Mudarabah Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Deposits from customers Non-Mudarabah 667,614 785,843 1,398,807 1,568,492 2,137 7,051 11,012 14,453 669,751 792,894 1,409,819 1,582,945 Deposits and placements from banks and other financial institutions Non-Mudarabah NOTE 11: ALLOWANCE FOR IMPAIRMENT Group Allowance for impairment on financing and advances (i) Allowance for impairment on financial investments (ii) 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 273,515 447,517 (319) 273,196 24 135,611 (117) 135,494 (991) 446,526 359,265 (1,266) 357,999
  26. NOTE 11 : ALLOWANCE FOR IMPAIRMENT (CONTINUED) Bank Allowance for impairment on financing and advances (i) Allowance for impairment on financial investments (ii) 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 276,321 450,150 (319) 276,002 (i) 135,611 (117) 135,494 (991) 449,159 359,265 (1,266) 357,999 Allowance for impairment on financing and advances Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Stage 1 - 12 months ECL Stage 2 - lifetime ECL not credit impaired Stage 3 - lifetime ECL credit impaired 222,426 16,152 34,937 (63,415) 1,442 197,584 228,662 41,189 177,666 (36,430) 88,044 307,651 273,515 135,611 447,517 359,265 Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Stage 1 - 12 months ECL Stage 2 - lifetime ECL not credit impaired Stage 3 - lifetime ECL credit impaired 225,232 16,152 34,937 (63,415) 1,442 197,584 231,295 41,189 177,666 (36,430) 88,044 307,651 276,321 135,611 450,150 359,265 (ii) Allowance for impairment on financial investments Group and Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Financial investments at fair value through other comprehensive income Financial investments at amortised cost 25 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 12 (331) 220 (337) (95) (896) 220 (1,486) (319) (117) (991) (1,266)
  27. NOTE 12 : OTHER OPERATING INCOME Group Fees and commission (i) Other income (ii) Bank Fees and commission (i) Other income (ii) (i) 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 14,447 28,654 39,889 55,174 159,420 94,715 215,335 247,712 173,867 123,369 255,224 302,886 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 14,447 28,654 39,889 55,174 151,333 93,528 207,254 245,234 165,780 122,182 247,143 300,408 Fees and commission Group and Bank Takaful commission Wasiat commission Other commission Processing fees ATM service fees MEPS fees Other fees 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 4,030 837 6,638 3 2,307 236 396 10,367 1,943 10,643 2 2,916 2,252 531 13,626 2,840 14,791 4 5,068 2,654 906 20,605 3,422 19,715 2 5,825 4,535 1,070 14,447 28,654 39,889 55,174 26
  28. NOTE 12 : OTHER OPERATING INCOME (CONTINUED) (ii) Other income Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Other income from financial instruments Dividend from financial investments at fair value through profit or loss Net gain on disposal of financial investments at fair value through profit or loss Net (loss)/gain on revaluation of financial investments at fair value through profit or loss Net gain on disposal of financial investments at fair value through other comprehensive income 16,425 1,916 17,267 4,052 487 6,131 10,961 7,659 18,163 20,956 (57,862) 90,706 66,187 - 120,305 129 5,344 1,107 2,538 1,708 32,485 - 4,040 1,290 2,932 3,046 41,599 78 10,631 2,274 5,190 4,520 79,200 - 9,402 2,265 5,862 6,160 99,060 78 8,055 1,219 8,055 2,438 6,921 31 11,477 14,794 76 19,825 159,420 94,715 215,335 247,712 Others Rental income Compensation for late payment Charges from credit card services Other service charges Recoveries from financing written off Writeback of ECL on trade receivables Gain on revaluation of investment properties Gain on disposal of property and equipment Other income 27
  29. NOTE 12 : OTHER OPERATING INCOME (CONTINUED) (ii) Other income (continued) Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Other income from financial instruments Dividend from financial investments at fair value through profit or loss Net gain on disposal of financial investments at fair value through profit or loss Net (loss)/gain on revaluation of financial investments at fair value through profit or loss Net gain on disposal of financial investments at fair value through other comprehensive income 16,425 1,916 17,267 4,052 487 6,131 10,961 7,659 18,163 20,956 (57,862) 90,706 66,187 - 120,305 129 5,360 1,107 2,538 1,708 32,485 4,234 1,290 2,932 3,046 41,599 10,658 2,274 5,190 4,520 79,200 9,599 2,265 5,862 6,160 99,060 6,873 29 11,395 14,741 74 19,668 151,333 93,528 207,254 245,234 Others Rental income Compensation for late payment Charges from credit card services Other service charges Recoveries from financing written off Gain on disposal of property and equipment Other income 28
  30. NOTE 13 : OPERATING EXPENSES (i) Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Personnel expenses (i) 189,925 195,585 401,562 381,980 Other overheads and expenditure (ii) 124,066 133,833 248,586 260,909 313,991 329,418 650,148 642,889 Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Personnel expenses (i) 189,449 190,855 400,124 372,954 Other overheads and expenditure (ii) 122,792 140,780 248,879 270,408 312,241 331,635 649,003 643,362 Personnel expenses Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Salaries and wages Allowances and bonuses Defined contribution plan - EPF Social security contributions - SOCSO Other staff related costs 101,264 49,493 26,974 1,230 10,964 97,350 55,000 27,210 1,202 14,823 205,207 111,325 56,888 2,513 25,629 189,088 111,116 53,998 2,405 25,373 189,925 195,585 401,562 381,980 Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Salaries and wages Allowances and bonuses Defined contribution plan - EPF Social security contributions - SOCSO Other staff related costs 101,282 49,104 26,847 1,225 10,991 94,171 54,078 26,787 1,142 14,677 204,688 110,609 56,712 2,502 25,613 183,130 109,256 53,180 2,284 25,104 189,449 190,855 400,124 372,954 29
  31. NOTE 13 : OPERATING EXPENSES (CONTINUED) (ii) Other overheads and expenditure Group 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Establishment Rental Depreciation of property and equipment Depreciation of right-of-use assets Amortisation of prepaid lease payment Amortisation of intangible assets Finance cost on lease liabilities Repair and maintenance Takaful 370 12,593 1,181 381 5,812 444 22,240 2,371 5,108 13,974 382 5,951 20,111 1,768 836 24,058 5,965 763 11,790 1,287 36,801 7,079 9,684 28,161 763 12,032 38,145 5,669 45,392 47,294 88,579 94,454 1,823 4,388 3,258 5,994 1,823 4,388 3,258 5,994 2,761 580 7,648 7,781 3,778 2,927 5,437 3,150 1,839 31 12,003 984 27,932 2,138 574 8,607 8,244 3,414 1,548 4,975 6,094 3,830 21 20,550 3,092 19,064 5,560 1,161 15,410 15,955 6,700 4,039 11,732 13,596 5,403 50 28,336 5,278 43,529 3,897 1,134 16,488 16,336 7,387 2,562 13,573 13,834 6,874 24 38,234 5,965 34,153 76,851 82,151 156,749 160,461 124,066 133,833 248,586 260,909 Promotion Advertisement and publicity General expenses Legal and professional fees Auditors' remuneration Communication expenses Utilities expenses Printing and stationery Postage and courier Security expenses Service charges Loss on financing written off Property and equipment written off Commission expenses Travelling and transportation Others 30
  32. NOTE 13 : OPERATING EXPENSES (CONTINUED) (ii) Other overheads and expenditure (continued) Bank 2nd Quarter Ended 30 June 30 June 2020 2019 RM'000 RM'000 Six Months Ended 30 June 30 June 2020 2019 RM'000 RM'000 Establishment Rental Depreciation of property and equipment Depreciation of right-of-use assets Amortisation of prepaid lease payment Amortisation of intangible assets Finance cost on lease liabilities Repair and maintenance Takaful 259 10,715 868 381 5,812 830 22,267 2,301 6,703 13,635 382 5,951 20,043 1,753 708 22,078 6,705 763 11,790 1,702 36,799 6,997 12,584 27,493 763 12,032 38,036 5,627 43,433 48,467 87,542 96,535 1,823 4,376 3,255 5,879 1,823 4,376 3,255 5,879 2,752 516 7,617 7,788 3,772 2,923 5,414 3,314 1,839 31 12,003 980 28,587 1,875 491 8,560 8,219 3,331 1,533 4,963 12,258 3,830 21 20,550 3,811 18,495 5,521 1,032 15,358 15,941 6,670 4,029 11,709 14,875 5,403 50 28,336 5,265 43,893 3,346 981 16,383 16,289 7,261 2,524 13,547 25,646 6,874 24 38,234 7,537 29,348 77,536 87,937 158,082 167,994 122,792 140,780 248,879 270,408 Promotion Advertisement and publicity General expenses Legal and professional fees Auditors' remuneration Communication expenses Utilities expenses Printing and stationery Postage and courier Security expenses Service charges Loss on financing written off Property and equipment written off Commission expenses Travelling and transportation Others 31
  33. NOTE 14 : COMMITMENT AND CONTINGENCIES In the normal course of business, the Group and the Bank make various commitments and incur certain contingent liabilities with legal recourse to their customers. No material losses are anticipated as a result of these transactions. Group and Bank 30 June 31 December 2020 2019 RM'000 RM'000 Contingent liabilities Bank guarantee given in respect of banking facilities granted to customers Claims for damages from litigation taken against the Bank 80,710 80,666 105,578 106,053 2,103,604 2,154,099 2,289,892 2,340,818 Commitments Undrawn financing NOTE 15: CAPITAL ADEQUACY The Bank is required to comply with the core capital ratio and risk-weighted capital adequacy ratio prescribed by Bank Negara Malaysia. The Bank was in compliance with all prescribed capital ratios throughout the period. 30 June 2020 Bank 31 December 2019 Before proposed dividend Core capital ratio Risk-weighted capital ratio 21.70% 23.44% 22.64% 24.12% After proposed dividend Core capital ratio Risk-weighted capital ratio 21.70% 23.44% 22.12% 23.60% 32
  34. NOTE 15 : CAPITAL ADEQUACY (CONTINUED) The capital ratios are derived by taking into account the core capital and capital base against the risk weighted assets of the Bank. Components of the capital are as follows: Tier I capital Paid-up share capital Retained profits Other reserves Total Tier I capital (core) Tier II capital Subordinated sukuk Collective impairment * Regulatory reserve Total Tier II capital Total capital Less: Investment in subsidiaries Bank 31 December 2019 RM'000 2,986,030 8,296,659 6,507,820 2,986,030 8,701,684 6,507,820 17,790,509 18,195,534 300,000 897,015 329,672 300,000 658,018 329,672 1,526,687 1,287,690 19,317,196 19,483,224 (100,744) (100,744) Total capital base * 30 June 2020 RM'000 19,216,452 (100,744) (100,744) 19,382,480 This is surplus amount allowable after taking into account collective impairment allowance on impaired financing of the Bank. Assets in various categories are risk-weighted as follows: Total assets assigned 20% risk-weighted Total assets assigned 50% risk-weighted Total assets assigned 100% risk-weighted Off-Balance Sheet claims assigned 100% risk-weighted 33 30 June 2020 RM'000 Bank 31 December 2019 RM'000 702,320 2,712,512 77,272,076 1,292,285 732,872 2,613,334 75,696,226 1,320,418 81,979,193 80,362,850