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BNP Paribas Malaysia Berhad: Statement of Financial Position - 31 March 2018

IM Insights
By IM Insights
6 years ago
BNP Paribas Malaysia Berhad: Statement of Financial Position - 31 March 2018

Islamic banking, Murabahah, Zakat, Credit Risk, Receivables, Reserves

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  1. BNP PARIBAS MALAYSIA BERHAD (Company No. 918091 - T) Incorporated in Malaysia UNAUDITED STATEMENT OF FINANCIAL POSITION FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018
  2. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 1. PERFORMANCE REVIEW For the first quarter ended 31 March 2018, the Bank recorded a net profit after taxation of RM31.81 million. This was contributed by net interest income of RM19.23 million and non-interest income of RM35.83 million. Operating expenses was RM13.03 million whilst allowances for losses on loans and advances of RM0.04 million, resulting in pre-tax profit of RM41.99 million. 2. CURRENT YEAR PROSPECT Economic growth in Malaysia is expected to remain strong in 2018 with forecast for GDP between +5.0% and +5.5%. Domestic demand is expected to continue to be the primary driver of growth, external sector should also contribute positively. Private sector consumption is targeted to grow by 7.3% in line with the anticipated increase in sustained spending in private consumption and investment activities. Inflation is expected to be controlled, hovering between 2.5% and 3.5%. Market conditions in 2018 are expected to be volatile on the back of uncertain US economic policies, the anticipated US interest rate hike cycle and the forthcoming general elections in Malaysia. Whilst global economic recovery is underway, downside risk to growth remains. This is due to the threat of increased protectionism, policy uncertainties in major advanced economies and geo political tensions. Nevertheless, expansionary fiscal policy in major economies is expected to provide impetus for global growth. Structural reforms to enhance productivity coupled with greater trade and investment activities are expected to enhance resilience and improve global growth prospects. The Belt and Road initiative is expected to provide ample opportunities for Malaysia to access new markets. The initiative is expected to derive massive benefits to Malaysia in terms of excellent infrastructure, connectivity, social facilities, better living standards and abundant business opportunities. In such an environment MYR could continue to appreciate versus USD and major SEA countries. Najmah will further improve and diversify tailor made products and solutions in Islamic Banking as it gains popularity with a wider range of investors, both Muslim and non-Muslim. Najmah will continue to tap into this increased interest in Islamic Banking. The Bank will continue to maintain stringent selectivity and risk profile, remaining focused on Malaysian champions both from the Corporate and Financial sectors. Global Market will continue to improve its services to customers with suitable products and services with flow banking remaining a strategic component to finance the real economy. Investment Banking will continue improving the Bank’s anchor and franchise.
  3. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2018 Note Bank Bank 31-Mar 31-Dec 2018 2017 RM'000 RM'000 ASSETS Cash and short-term funds 2 1,067,215 1,299,423 Reverse repurchase agreements 3 320,128 9,240 Financial assets held-for-trading 4 890,928 510,763 Financial assets available-for-sale 5 457,391 10,059 Loans, advances and financing 6 1,092,366 1,137,107 398,183 571,049 - - Derivative financial assets Statutory deposits with Bank Negara Malaysia Other assets 7 427,366 320,143 Property, plant and equipment 8 1,245 1,254 Intangible assets 9 2,442 2,674 - 1,644 Deferred tax assets 673 548 TOTAL ASSETS 4,657,937 3,863,904 10 1,183,173 1,221,912 11 1,773,340 785,929 593,177 763,233 345,811 368,224 6,328 - 3,901,829 3,139,298 Tax recoverable LIABILITIES AND SHAREHOLDERS' EQUITY Deposits from customers Deposits and placements from banks and other financial institutions Derivative financial liabilities Other liabilities Tax liabilities TOTAL LIABILITIES 12
  4. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2018 (CONTD.) Note Share capital 13 Retained profit Reserves 14 SHAREHOLDER'S EQUITY Bank Bank 31-Mar 31-Dec 2018 2017 RM'000 RM'000 650,000 650,000 92,665 61,889 13,443 12,717 756,108 724,606 4,657,937 3,863,904 41,006,090 47,200,072 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY COMMITMENTS AND CONTINGENCIES 22 The accompanying notes form an integral part of the financial statements.
  5. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 Note Bank Bank 31-Mar 31-Mar 2018 2017 RM'000 RM'000 Interest income 15 30,233 26,507 Interest expenses 16 (11,134) (9,341) 19,099 17,166 129 168 Net interest income Net income from Islamic banking business 23 19,228 17,334 Other operating income 17 35,827 14,637 Operating expenses 18 (13,026) (19,847) 19 (37) (152) Write back/(Allowance made) for impairment on loans, advances and financing Profit before tax Taxation Profit for the period 41,992 11,972 (10,178) (3,035) 31,814 8,937
  6. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF COMPREHENSIVE INCOME FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 Note Profit for the period Bank Bank 31-Mar 31-Mar 2018 2017 RM'000 RM'000 31,814 8,937 Net changes in fair value 77 324 Other comprehensive income 77 324 31,891 9,261 Other comprehensive (loss)/income, net of income tax: Items that may be reclassified subsequently to profit or loss : Fair value reserve (from Investment AFS) : Total comprehensive income for the quarter ended The accompanying notes form an integral part of the financial statements.
  7. Company No . 918091-T STATEMENT OF CHANGES IN EQUITY BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOW FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 Bank Bank 31-Mar 31-Mar 2018 2017 RM'000 RM'000 Cash Flows from/(Used In) Operating Activities Profit before tax 41,992 11,972 139 213 232 15 37 172 Adjustments for: Depreciation of property, plant and equipment Amortisation of intangible assets (Write back of allowance)/Allowance for impairment on loans, advances and financing Allowance (written back) for impairment on other receivables - (20) 3 43 Amortisation of premium less accretion of discount Gain from sale on financial assets held-for-trading (2,770) (2,819) (18,654) 54,913 (35,957) 152,226 (662) - (15,640) 216,715 Unrealised (gain)/loss on derivative financial instrument Unrealised loss /(gain) on foreign exchange Unrealised (gain)/loss on financial assets held for trading Operating profit before working capital changes
  8. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOW FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018(CONTD.) Bank Bank 31-Mar 31-Mar 2018 2017 RM'000 RM'000 (Increase)/Decrease in: Financial assets held for trading (376,733) (360,119) Financial assets available-for-sale (447,258) (283,405) Loans, advances and financing 44,315 (173,714) Reverse repurchase agreements (310,888) (29,873) Other assets (107,223) 73,778 (38,739) 224,076 987,411 378,295 57,421 24,398 (22,381) (154,703) (229,715) (84,552) (2,363) (1,034) (232,078) (85,586) (130) (32) (130) (32) Increase/(Decrease) in: Deposits from customers Deposits and placements from banks and other financial institutions Derivative financial asstes/liabilities Other liabilities Net cash (used in)/generated from operations Income taxes paid Net cash (used in)/from operating activities Cash Flows from Investing Activities Purchase of property, plant and equipment Net cash (used in)/generated from investing activities
  9. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOW FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018(CONTD.) Bank Bank 31-Mar 31-Mar 2018 2017 RM'000 RM'000 NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS (232,208) (85,618) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,299,423 2,077,547 CASH AND CASH EQUIVALENTS AT END OF YEAR 1,067,215 1,991,929 1,067,215 1,891,903 1,067,215 100,026 1,991,929 Cash and cash equivalents comprise the following: Cash and short-term funds Deposits and placements with banks and other financial institutions The accompanying notes form an integral part of the financial statements.
  10. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 Non-distributable At 1 January 2018 IFRS9 Day 1 Adjustment At 1 January 2018, as restated Profit for the quarter ended Transfer to regulatory reserve Other comprehensive loss At 31 March 2018 Share capital RM'000 Statutory reserves RM'000 650,000 650,000 650,000 - Revaluation Retained reserveprofits/ Regulatory financial assets (Accumulated reserves available--for-sale losses) RM'000 RM'000 RM'000 12,705 12,705 649 13,354 12 12 77 89 61,889 (389) 61,500 31,814 (649) 92,665 Total RM'000 724,606 (389) 724,217 31,814 77 756,108 Non-distributable Share capital RM'000 At 1 January 2017 Profit for the year Transfer from statutory reserve Transfer to regulatory reserve Other comprehensive income At 31 December 2017 650,000 650,000 The accompanying notes form an integral part of the financial statements. Statutory reserves RM'000 32,155 (32,155) - Revaluation Retained reserveprofits/ Regulatory financial assets (Accumulated reserves available--for-sale losses) RM'000 RM'000 RM'000 9,636 3,069 12,705 (323) 335 12 (11,989) 44,792 32,155 (3,069) 61,889 Total RM'000 679,479 44,792 335 724,606
  11. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES Basis of Preparation of the Financial Statements The financial statement of the Bank have been prepared in accordance with Malaysian Financial Reporting Standards ("MFRSs"), International Financial Reporting Standards and the requirements of the Companies Act, 2016 in Malaysia. 2. CASH AND SHORT-TERM FUNDS Bank 31-Mar 2018 RM'000 At Amortised Cost: Cash and balances with banks and other financial institutions Money at call and deposit placements maturing within one month 3. 34,193 48,917 1,033,022 1,067,215 1,250,506 1,299,423 REVERSE REPURCHASE AGREEMENTS Bank 31-Mar 2018 RM'000 At Amortised Cost: Government Securities: Malaysian Government Securities 4. Bank 31-Dec 2017 RM'000 320,128 Bank 31-Dec 2017 RM'000 9,240 FINANCIAL ASSETS HELD-FOR-TRADING Bank 31-Mar 2018 RM'000 At Fair Value: Government Securities: Malaysian Government Securities Malaysian Government Investment Issues Treasury Bills 453,576 428,500 8,852 890,928 Bank 31-Dec 2017 RM'000 334,045 69,872 106,846 510,763
  12. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 5. FINANCIAL ASSETS AVAILABLE-FOR-SALE Bank 31-Mar 2018 RM'000 At Fair Value: Government securities: Malaysian Government Investment Issues Bank Negara Malaysia Debt Securities 6. Bank 31-Dec 2017 RM'000 10,136 447,255 10,059 - 457,391 10,059 LOANS, ADVANCES AND FINANCING Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 At amortised cost: (i) By type Revolving credit Term loans Trust receipts Bills discounting Other trade bills discounted Overdrafts Less: Allowance for impaired loans and financing : - Collective assessment allowance Net loans, advances and financing (ii) 634,736 303,821 40,762 110,221 4,203 1,093,743 654,529 302,257 56,927 117,964 6,381 1,138,058 (1,377) 1,092,366 (951) 1,137,107 1,050,912 42,831 1,093,743 1,094,440 43,618 1,138,058 1,093,743 1,093,743 1,138,058 1,138,058 953,482 124,759 15,502 1,093,743 804,112 321,646 12,300 1,138,058 1,093,743 1,093,743 1,138,058 1,138,058 By type of customer Domestic business enterprises Financial institutions (iii) By interest rate sensitivity Variable rate: BLR-minus BLR-plus Cost plus (iv) By residual contractual maturity Maturing within one year More than one year to five years More than five years (v) By geographical distribution In Malaysia
  13. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 6. LOANS, ADVANCES AND FINANCING (CONTD.) (vi) By Sector Manufacturing Wholesale and retail Construction Financial services Other business services Real estate activities Bank 31-Mar 2018 RM'000 789,481 56,075 6,001 42,831 187,177 12,178 1,093,743 Bank 31-Dec 2017 RM'000 785,994 97,467 8,002 43,618 190,599 12,378 1,138,058 Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 (vii) Movements in allowance for impaired loans and advances are as follows: The Bank has not identified any impaired loans for the current financial year. (viii) Movements in allowance for impaired loans and advances are as follows: Collective impairment allowances Balance as at 1 January Adjustment on IFRS9 Add: Allowances made during the year Less: Write back made during the year Balance as of 31 March/31 Dec 951 389 1,340 37 1,377 570 570 381 951 Loss allowance for non-credit-impaired exposures and regulatory reserves as % of total credit exposures net of loss allowance for credit-impaired exposures 1.00% 1.20% Bank 31-Mar 2018 RM'000 7. Bank 31-Dec 2017 RM'000 OTHER ASSETS Other receivables Less: Allowance for impairment on other receivables 137,991 (1) 137,990 Collateral assets Deposit Prepayments 287,271 958 1,147 427,366 48,254 (1) 48,253 269,686 958 1,246 320,143
  14. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 9. INTANGIBLE ASSETS Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 Computer Software: Cost At 1 January Additions Write Off At 31 March/31 Dec 432 432 432 432 Accumulated Amortisation At 1 January Amortisation for the year Write-off At 31 March/31 Dec 358 15 373 297 61 358 59 74 2,600 2,600 2,600 2,600 217 217 - Net Book Value 2,383 2,600 Total Net Book Value 2,442 2,674 Net Book Value Interbank Giro license fees Cost At 1 January Additions Write Off At 31 March/31 Dec Accumulated Depreciation At 1 January Amortisation for the year At 31 March/31 Dec
  15. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 10. DEPOSITS FROM CUSTOMERS Bank 31-Mar 2018 RM'000 Type At amortised cost: Demand deposits Fixed deposits Commodity Murabahah (i) (ii) Maturity structure of fixed deposits and Commodity Murabahah are as follows: Due within six months Six months to one year Bank 31-Dec 2017 RM'000 536,254 635,899 11,020 1,183,173 474,412 736,890 10,610 1,221,912 643,890 3,029 646,919 742,301 5,199 747,500 1,169,543 13,630 1,183,173 1,209,606 12,306 1,221,912 The deposits are sourced from the following types of customers: Business enterprises Non-bank financial institutions 11. DEPOSITS AND PLACEMENTS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS Bank 31-Mar 2018 RM'000 At amortised cost: Other financial institutions 1,773,340 1,773,340 Bank 31-Dec 2017 RM'000 785,929 785,929 12. OTHER LIABILITIES Bank 31-Mar 2018 RM'000 Other payables Accruals and charges Collateral deposits 137,875 13,400 194,536 345,811 Bank 31-Dec 2017 RM'000 110,606 14,434 243,184 368,224
  16. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 13. SHARE CAPITAL Bank 31-Mar 2018 RM'000 Issued and fully paid: Balance as at 31 March/December Bank 31-Dec 2017 RM'000 650,000 650,000 14. RESERVES Bank 31-Mar 2018 RM'000 Non-distributable: Revaluation reserve-available-for-sale securities Regulatory reserve Bank 31-Dec 2017 RM'000 89 13,354 13,443 12 12,705 12,717 15. INTEREST INCOME Bank 31-Mar 2018 RM'000 Loans, advances and financing Money at call and deposit placements with financial institutions Financial assets - Available-for-sale Financial assets - Held-for-trading Other interest income Amortisation of premium less accretion of discount Total Interest Income Of which: Interest income earned on impaired loans, advances and financing Bank 31-Mar 2017 RM'000 10,695 6,415 1,640 6,168 5,318 30,236 (3) 30,233 - 8,743 8,744 1,103 3,211 4,749 26,550 (43) 26,507 -
  17. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 16. INTEREST EXPENSE Bank 31-Mar 2018 RM'000 Deposits from customers Deposits and placements from banks and other financial institutions Other interest expense Bank 31-Mar 2017 RM'000 5,939 5,136 5,185 10 11,134 4,204 1 9,341 17. OTHER OPERATING INCOME Bank 31-Mar 2018 RM'000 Fee income: Commissions Guarantee fees Other fee income : Net gain/(loss) arising from sale of securities: Financial assets held-for-trading Financial assets available-for-sale Unrealised gain/(loss) on revaluation of securities: Financial assets held-for-trading Bank 31-Mar 2017 RM'000 267 451 2,834 3,552 99 349 1,798 2,246 2,770 2,770 2,819 2,819 662 662 (1,150) (1,150) . Other income: Foreign exchange: - Realised gain/(loss) - Unrealised gain/(loss) Gain/(Loss) on derivatives trading - Realised gain/(loss) - Unrealised gain/(loss) Others Total (37,689) 35,957 159,040 (152,226) 6,705 18,654 5,216 28,843 57,264 (54,913) 1,557 10,722 35,827 14,637
  18. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 18. OTHER OPERATING EXPENSES Bank 31-Mar 2018 RM'000 Personnel costs (Note a) Establishment costs (Note b) Marketing expenses (Note c) Administration and general expenses (Note d) (a) 8,382 3,565 222 7,678 19,847 5,358 551 1,539 7,448 6,371 815 1,196 8,382 1,867 139 232 398 870 3,506 1,883 213 15 511 943 3,565 15 138 153 25 197 222 308 53 1,558 1,919 359 60 7,259 7,678 Establishment costs Share of information technology costs Depreciation of property, plant and equipment Amortization of intangible asset Rental of premises Others (c) 7,448 3,506 153 1,919 13,026 Personnel costs Salaries, bonuses and allowances EPF - defined contribution plan Other staff related expenses (b) Marketing Expenses Advertising Others (d) Bank 31-Mar 2017 RM'000 Administration and general expenses Legal and professional fees Communication & transportation Others general expenses 19. ALLOWANCE FOR IMPAIRMENT ON LOANS, ADVANCES AND FINANCING Bank 31-Mar 2018 RM'000 Allowance for impaired loans, advances and financing: Collective Assessment allowance: - Made in the financial year - Written back in the financial year Bank 31-Mar 2017 RM'000 37 - 172 (20) 37 152
  19. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 20. CAPITAL ADEQUACY The components of Tier I and Tier II capital are as follows: Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 Tier-I capital Paid-up share capital Retained profits IFRS9 Day 1 Adjustment Other disclosed reserves Less : Regulatory adjustments Intangible assets Deferred tax assets 55% of cumulative gains of AFS financial instruments Total Tier-I capital 650,000 61,240 (389) 89 710,940 650,000 61,889 12 711,901 (2,442) (673) (49) 707,776 (2,674) (548) (7) 708,672 Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 Tier-II Capital Collective assessment allowance Regulatory reserve Total Tier-II capital Total capital funds Less: Investment in subsidiary companies Capital base 1,377 13,354 14,731 951 12,705 13,656 722,507 722,507 722,328 722,328 22.733% 22.733% 23.206% 21.306% 21.306% 21.716% Capital Ratios Common Equity Tier 1 Ratio Tier 1 Capital Ratio Total Capital Ratio The breakdown of risk-weighted assets by each major risk category is as follows: Credit Risk Market Risk Operational Risk Total risk-weighted assets Bank 31-Mar 2018 RM'000 1,919,104 838,283 356,034 3,113,421 Bank 31-Dec 2017 RM'000 1,983,647 1,008,574 334,017 3,326,238
  20. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 8. PROPERTY, PLANT AND EQUIPMENT Office Equipment and Machinery RM'000 Renovation and Installation RM'000 Furniture, Fixtures and Fittings RM'000 Cost At 1 January 2018 Additions Disposals Write-off Reclassification At 31 March 2018 213 6 219 4,256 4,256 1,825 1,825 Accumulated Depreciation At 1 January 2018 Charge for the year Disposals Write-off At 31 March 2018 168 6 174 3,842 43 3,885 45 371 Bank Computer equipment and hardware RM'000 Motor Vehicles RM'000 Renovation work-in progress RM'000 Total RM'000 4,443 124 4,567 15 15 - 10,752 130 10,882 1,423 28 1,451 4,054 61 4,115 11 1 12 - 9,498 139 374 452 3 - 1,245 At 31 March 2018 Net Book Value 31 March 2018 9,637
  21. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 8. PROPERTY, PLANT AND EQUIPMENT (CONTD.) Office equipment and machinery RM'000 Renovation and installation RM'000 Furniture, fixtures and fittings RM'000 Computer Equipment RM'000 Motor vehicle RM'000 Renovation work-in progress RM'000 Total RM'000 At 31 December 2017 Cost At 1 January 2017 Additions Write-off Reclassification At 31 December 2017 212 1 213 4,126 130 4,256 1,456 369 1,825 4,306 100 37 4,443 15 15 Accumulated Depreciation At 1 January 2017 Charge for the year At 31 December 2017 145 23 168 3,588 254 3,842 1,344 79 1,423 3,781 273 4,054 8 3 11 - 8,866 632 9,498 45 414 402 389 4 - 1,254 Net Book Value 31 December 2017 269 270 (3) (536) - 10,384 371 (3) 10,752
  22. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 21. INTEREST RATE RISK The following table represents the Bank's assets and liabilities at carrying amounts as at 31 March 2018 Non-Trading Book Up to 1 month RM'000 Assets Cash and short-term funds Reverse repurchase agreements Financial assets held-for-trading Financial assets available-for-sale Loans, advances and financing Derivatives Financial assets Other assets Total Assets Liabilities Deposits from customers Deposits and placements from banks and other financial institutions Derivatives Financial Liabilities Other liabilities Total Liabilities Net interest rate gap 1,066,302 9,785 397,833 1-3 months RM'000 3 - 12 months RM'000 1-5 years RM'000 309,857 457,258 594,166 35,237 63,535 Over 5 years RM'000 - Trading book RM'000 Non-interest sensitive RM'000 890,928 - 913 486 133 1,595 Total RM'000 1,473,920 1,361,281 35,237 63,535 - 1,289,111 425,261 428,388 1,067,215 320,128 890,928 457,391 1,092,366 398,183 425,261 4,651,472 977,780 175,295 29,038 - - - 1,060 1,183,173 1,764,409 - 7,500 - - - - 593,177 2,742,189 182,795 29,038 - - 593,177 1,431 345,811 348,302 1,773,340 593,177 345,811 3,895,501 1,178,486 6,199 63,535 - 695,934 80,086 755,971 398,183 (1,268,269)
  23. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 21. INTEREST RATE RISK (CONTD) The following table represents the Bank's assets and liabilities at carrying amounts as of 31 December 2017 Non-Trading Book Up to 1 month RM'000 Assets Cash and short-term funds Reverse repurchase agreements Financial assets held-for-trading Financial assets available-for-sale Loans, advances and financing Derivative financial assets Other assets Total Assets Liabilities Deposits from customers Deposits and placements from banks and other financial institutions Derivatives financial liabilities Other liabilities Total Liabilities Net interest rate gap 1-3 months RM'000 3 - 12 months RM'000 1,298,917 9,232 - - 506,327 1,814,476 1-5 years RM'000 Over 5 years RM'000 Trading book RM'000 Non-interest sensitive RM'000 Total RM'000 211,017 211,017 10,014 84,432 94,446 321,647 321,647 12,300 12,300 510,763 571,049 1,081,812 506 8 45 1,384 317,939 319,882 1,299,423 9,240 510,763 10,059 1,137,107 571,049 317,939 3,855,580 1,036,340 153,959 30,679 - - - 934 689,019 1,725,359 95,281 249,240 30,679 - - 763,233 763,233 1,629 368,224 370,787 1,221,912 785,929 763,233 368,224 3,139,298 (38,223) 63,767 321,647 12,300 318,579 (50,905) 89,117 716,282
  24. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 22. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Bank makes various commitments and incurs certain contingent liabilities with legal recourse to its customers. No material losses are anticipated as a result of these transactions. The commitments and contingencies are not secured against the Bank's assets. The commitments and contingencies and their related counterparty credit risk of the Bank are as follows: Bank 31-Mar 2018 RM'000 Commitments and Contingent Liabilities Direct credit substitutes Transaction-related contingent items Short-term self-liquidating trade-related contingencies Other assets sold with recourse and commitments with certain drawdown Irrevocable commitments to extend credit: - maturity less than one year - maturity more than one year Foreign exchange derivatives: - one year or less - over one year to five years Interest rate derivatives: - one year or less - over one year to five years - over five years Credit Derivatives: - one year or less - over one year to five years Bank 31-Dec 2017 RM'000 298,553 324,257 10,474 8,290 157,505 39,531 25,412,425 1,335,482 27,670,712 1,888,059 7,472,004 5,719,482 15,000 11,017,129 5,687,434 15,000 585,165 41,006,090 485 549,175 47,200,072
  25. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 23. Islamic Banking Window UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2018 Note Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 ASSETS Cash and short-term funds Loans, advances and financing Other assets Property, plant and equipment Intangible assets (a) (b) (c) (d) (e) 23,891 4,056 8,833 3 4 22,591 4,017 8,829 3 4 36,787 35,444 15,057 13,605 425 131 447 131 Total liabilities 15,613 14,183 Capital fund Accumulated losses Reserves 24,350 (3,216) 40 24,350 (3,137) 48 Islamic Banking Funds 21,174 21,261 TOTAL LIABILITIES AND ISLAMIC BANKING FUNDS 36,787 35,444 TOTAL ASSETS LIABILITIES AND ISLAMIC BANKING FUNDS Deposits from customers Deposits and placements from banks and other financial institutions Other liabilities Tax Liabilities (f) The accompanying notes form an integral part of the financial statements.
  26. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 23. Islamic Banking Window Bank 31-Mar 2018 RM'000 UNAUDITED STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 Income derived from investment of Islamic banking funds and depositors' funds Profit expense to depositors (g) Net income derived from investment of Islamic Banking funds and depositors' funds Other operating income Other operating expenses Write back for impairment on loans, advances and financing Profit/(Loss) for the financial quarter before zakat and taxation (h) (i) 201 (72) 240 (72) 129 168 92 (308) 773 (520) - - (87) 421 Zakat Income tax expense - Profit/(Loss) for the financial quarter after zakat and taxation (87) Other comprehensive income: Items that may be reclassified subsequently to profit or loss : Fair value reserve (from Investment AFS) : Net changes in fair value - - 421 - Total comprehensive profit/(loss) for the quarter Bank 31-Mar 2017 RM'000 (87) 421
  27. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) Islamic Banking Operations UNAUDITED STATEMENT OF CHANGES IN EQUITY IN ISLAMIC BANKING FUNDS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 At 1 January 2018 Loss for the quarter Transfer from regulatory reserve At 31 March 2018 At 1 January 2017 Loss for the year Transfer to regulatory reserve Other comprehensive income At 31 December 2017 Share capital RM'000 Regulatory reserve RM'000 24,350 24,350 48 48 Capital fund RM'000 Regulatory reserve RM'000 24,350 24,350 48 48 Revaluation reservefinancial assets available--for-sale RM'000 - Revaluation reservefinancial assets available--for-sale RM'000 - Accumulated losses RM'000 (3,137) (87) (3,224) Accumulated losses RM'000 (2,532) (557) (48) (3,137) Total RM'000 21,261 (87) 21,174 Total RM'000 21,818 (557) 21,261
  28. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 23. Islamic Banking Window NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) (a) CASH AND SHORT-TERM FUNDS Bank 31-Mar 2018 RM'000 At Amortised Cost Cash and balances with banks and other financial institutions Money at call and deposit placements maturing within one month (b) Bank 31-Dec 2017 RM'000 5,088 1,586 18,803 23,891 21,005 22,591 LOANS, ADVANCES AND FINANCING Bank 31-Mar 2018 RM'000 At amortised cost: By type Revolving credit Less: Collective impairment allowances Net loans, advances and financing (c) Bank 31-Dec 2017 RM'000 4,057 (1) 4,056 4,018 (1) 4,017 OTHER ASSETS Bank 31-Mar 2018 RM'000 Other receivables, deposit and prepayments Less: Allowance for doubtful debt on other receivables Bank 31-Dec 2017 RM'000 8,833 8,833 8,829 8,829 Movements of allowance for impairment on other receivables are as follows: Bank 31-Mar 2018 RM'000 Individual impairment allowance Balance as at 1 January Add: Allowance made during the year Less: Write back made during the year Balance as at 31 March/December Bank 31-Dec 2017 RM'000 - 500 (500) -
  29. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 23. Islamic Banking Window (e) INTANGIBLE ASSETS Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 Computer Software: Cost At 1 January Additions Write Off At 31 March/December 41 41 41 - Accumulated Amortisation At 1 January Amortisation for the year At 31 March/December 37 37 36 1 37 4 4 Net Book Value (f) 41 DEPOSITS FROM CUSTOMERS Bank 31-Mar 2018 RM'000 Type At Amortised Cost: Non-Mudharabah Fund Demand deposits Commodity Murabahah (i) 4,037 11,020 15,057 2,996 10,609 13,605 Maturity structure of Commodity Murabahah is as follows: Bank 31-Mar 2018 RM'000 Due within six months (ii) Bank 31-Dec 2017 RM'000 11,020 Bank 31-Dec 2017 RM'000 10,609 The deposits are sourced from the following types of customers: Bank 31-Mar 2018 RM'000 Business enterprise Domestic non-bank financial institution 7,463 7,594 15,057 Bank 31-Dec 2017 RM'000 7,151 6,454 13,605
  30. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 23. Islamic Banking Window (g) INCOME DERIVED FROM INVESTMENT OF ISLAMIC BANKING FUNDS AND DEPOSITORS' FUNDS Bank 31-Mar 2018 RM'000 Loans, advances and financing Money at call and deposit placement with financial institutions Financial assets available-for-sale 39 162 201 201 229 12 241 (1) 240 Fee income: Commissions Other fee income 63 782 Foreign exchange: - Unrealised loss (12) - Amortisation of premium less accretion of discount (h) Bank 31-Mar 2017 RM'000 OTHER OPERATING INCOME Others 41 Total 92 (9) 773
  31. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 23. Islamic Banking Window (i) OTHER OPERATING EXPENSES Bank 31-Mar 2018 RM'000 Personnel costs (Note i) Establishment costs (Note ii) Marketing expenses (Note iii) Administration and general expenses (Note iv) (i) 259 20 29 308 373 22 125 520 194 36 29 259 279 52 42 373 16 - 20 - - 2 22 Personnel Costs Salaries, bonuses and allowances EPF - defined contribution plan Other staff related expenses (ii) Bank 31-Mar 2017 RM'000 Establishment costs Rental of premises Amortisation of intangible assets Depreciation of property, plant and equipment Others 4 20 (iii) Marketing Expenses Others - - (iv) Administration and general expenses Legal and professional fees Others 15 14 29 113 12 125
  32. Company No . 918091-T BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 23. Islamic Banking Window (j) CAPITAL ADEQUACY The components of Tier I and Tier II capital are as follows: Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 Tier-I capital Capital fund Accumulated losses Less : - Intangible assets - 55% of cumulative gains of AFS financial instruments - Other disclosed reserves Total Tier-I capital 24,350 (3,137) 21,213 24,350 (3,137) 21,213 (4) 21,209 (4) 21,209 Bank 31-Mar 2018 RM'000 Bank 31-Dec 2017 RM'000 Tier-II Capital Collective assessment allowance Regulatory reserve Total Tier-II capital Capital base 1 48 49 1 48 49 21,258 21,258 Capital Ratios Tier 1 Capital Ratio Tier 1 Capital Ratio Total Capital Ratio 127.030% 127.030% 127.324% 131.374% 131.374% 131.677% The breakdown of risk-weighted assets by each major risk category is as follows: Bank 31-Mar 2018 RM'000 Credit Risk Market Risk Operational Risk Total risk-weighted assets 13,030 271 3,395 16,696 Bank 31-Dec 2017 RM'000 12,851 246 3,047 16,144
  33. BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 23. Islamic Banking Window (d) PROPERTY, PLANT AND EQUIPMENT Bank Office Equipment and Machinery RM'000 Renovation and Installation RM'000 Furniture, Fixtures and Fittings RM'000 Computer Equipment RM'000 Total RM'000 Cost At 1 January 2018 Additions Disposals At 31 March 2018 6 6 - - 23 23 29 29 Accumulated Depreciation At 1 January 2018 Charge for the year At 31 March 2018 3 3 - - 23 23 26 26 Net Book Value 31 March 2018 3 - - - 3 At 31 March 2018
  34. BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 31 MARCH 2018 (CONTD.) 23. Islamic Banking Window (d) PROPERTY, PLANT AND EQUIPMENT (CONTD.) Bank Office Equipment and Machinery RM'000 Renovation and Installation RM'000 Furniture, Fixtures and Fittings RM'000 Computer Equipment RM'000 Total RM'000 At 31 December 2017 Cost At 1 January 2017 Additions Disposals Write-off At 31 December 2017 6 6 - - 23 23 29 29 Accumulated Depreciation At 1 January 2017 Charge for the year At 31 December 2017 2 1 3 - - 23 23 25 1 26 Net Book Value 31 Dec 2017 3 - - - 3