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BNP Paribas Malaysia: Statement of Financial Position - 30 September 2021

IM Insights
By IM Insights
1 year ago
BNP Paribas Malaysia: Statement of Financial Position - 30 September 2021

Islamic banking, Murabahah, Credit Risk, Receivables, Reserves

Banking

Standards

Sustainability

Organisation Tags (2)


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  1. BNP PARIBAS MALAYSIA BERHAD (Company No.201001034168 (918091 - T) ) Incorporated in Malaysia UNAUDITED STATEMENT OF FINANCIAL POSITION FOR THE FINANCIAL PERIOD ENDED 30 SEPTEMBER 2021 Classification : Confidential #
  2. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 1. PERFORMANCE REVIEW The Bank reported loss before tax of RM4.97 million for the financial period ended 30 September 2021 compared to RM112.80 million profit before tax in the corresponding period last year. The losses were attributable to Global Markets business and higher impairment allowances on loans and advances. The increase in impairment allowances was due to the adoption of a more stringent approach on sectors that were impacted by Covid-19 pandemic. Global Market's portfolio was adversely affected by the volatile market environment. Operating expenses (excluding transfer pricing charges) was RM0.4 million (or 0.8%) lower compared to same period last year mainly due to effective cost management. 2. CURRENT YEAR PROSPECTS Bank Negara recently announced the downward revision of Malaysia’s GDP growth for year 2021 to approximately 3% - 4%, taking into account the economic effect of the mid-year nationwide Full Movement Control Order (FMCO). The country’s GDP grew 16.1% yearon-year in Q2 2021 but shrank 2% quarter-on-quarter. Malaysia’s economy is expected to remain on a recovery path in 2021, with the gradual reopening of the economic and social sectors, backed by improving vaccination rates and subsequent movement out of Phase 1 and Phase 2 for more states due to containment measures. Bank Negara’s Governor highlighted that the speed of country-wide transition into Phase 4 depends on the efficacy of the vaccines and the percentage of vaccinated population. This is expected to have a positive impact on the economic growth subject to the improvements in the labour market and consumption. With the recent lifting of interstate travel and reopening of state borders, there may be improvement in the economy towards end of Q4 FY2021 in tandem with the increase movement in goods and services. The bank is committed to provide continuing support towards the business recovery of its clients during this period whilst ensuring this services level are maintained. 1 Classification : Confidential #
  3. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2021 Bank Bank 30-Sep 31-Dec 2021 2020 RM'000 RM'000 1,761,066 1,072,884 373,582 974,678 3 885,324 413,967 4 1,232,447 1,335,231 5 1,103,715 1,338,407 Note ASSETS Cash and short-term funds 2 Reverse repurchase agreements Financial assets at fair value through Profit or Loss ('FVTPL') Financial investments at fair value through other comprehensive income ('FVOCI') Loans, advances and financing Derivative financial assets 615,538 1,296,293 Other assets 6 24,811 195,077 Property, plant and equipment 7 5,167 7,532 Intangible assets 8 2 24 Tax recoverable 7,717 7,717 Deferred tax assets 3,315 3,416 TOTAL ASSETS 6,012,684 6,645,226 9 1,882,439 2,300,820 10 1,514,781 840,883 - 285,353 444,393 1,111,173 900,643 1,226,532 399,028 - 5,141,284 5,764,761 LIABILITIES AND SHAREHOLDERS' EQUITY Deposits from customers Deposits and placements from banks and other financial institutions Repurchase agreements Derivative financial liabilities Other liabilities 11 Subordinated term loan TOTAL LIABILITIES The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 2 Classification : Confidential #
  4. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2021 (CONTD.) Bank Bank 30-Sep 31-Dec 2021 2020 RM'000 RM'000 650,000 650,000 210,380 223,911 11,020 6,554 871,400 880,465 6,012,684 6,645,226 111,033,215 98,187,436 Note Share capital 12 Retained profits Reserves 13 SHAREHOLDER'S EQUITY TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY COMMITMENTS AND CONTINGENCIES 21 The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 3 Classification : Confidential #
  5. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 Bank Bank 30-Sep 30-Sep 2021 2020 RM'000 RM'000 Note Interest income 14 77,092 97,372 Interest income for financial asset at FVTPL 14 30,298 20,871 Interest expenses 15 (12,541) (26,903) 94,849 91,340 343 281 95,192 91,621 Net interest income Net income from Islamic banking business 22 Other operating income 16 (43,104) 100,999 Operating expenses 17 (54,381) (84,605) Expected credit losses 18 (2,674) 4,783 Profit before tax (4,967) 112,798 Taxation (1,060) (27,416) Profit for the financial period (6,027) 85,382 (3,038) 3,472 Other comprehensive (loss)/ income (3,038) 3,472 Total comprehensive income for the financial period (9,065) 88,854 Other comprehensive income, net of income tax: Items that may be reclassified subsequently to profit or loss : Revaluation reserve - financial investments at FVOCI : Net changes in fair value The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 4 Classification : Confidential #
  6. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOW FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 Bank Bank 30-Sep 30-Sep 2021 2020 RM'000 RM'000 Cash Flows from/(Used In) Operating Activities (Loss)/Profit before tax (4,967) 112,798 Adjustments for: Depreciation of property, plant and equipment Amortisation of intangible assets 1,971 1,718 22 664 Expected credit losses on loans, advances and financing 2,674 (4,783) 12,141 6,118 Amortisation of premium less accretion of discount Realised gain on financial investments at FVOCI - Interest income on financial investments at FVOCI (8,151) (35,988) (32,407) 28,555 (177,829) 81,158 50,210 Unrealised loss/(gain) on derivative financial instrument Unrealised loss on foreign exchange Unrealised loss/(gain) on financial assets at FVTPL 2,883 (275) 307 (1,218) Unrealised loss/(gain) on reverse repurchase agreements Unrealised (gain)/loss on repurchase agreements (313) Operating profit before working capital changes 88,443 5 434 (52,721) Classification : Confidential #
  7. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOW FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) Bank Bank 30-Sep 30-Sep 2021 2020 RM'000 RM'000 (474,240) (592,149) 232,018 (232,754) (Increase)/Decrease in: Financial assets at FVTPL Loans, advances and financing Right of use asset 821 1,121 Reverse repurchase agreements 600,789 (736,064) Other assets 170,266 (114,323) (418,381) 469,401 673,898 631,872 (285,040) 294,280 (95,737) (64,003) Increase/(Decrease) in: Deposits from customers Deposits and placements from banks and other financial institutions Repurchase agreements Derivative financial assets/liabilities Subordinated term loan 494 Other liabilities Net cash generated from operations 986,428 168,861 591,088 Income taxes paid - Net cash generated from operating activities - (324,470) 168,861 (12,869) 578,219 Cash Flows used in Investing Activities Purchase of property, plant and equipment (427) (1,046) Net sales/(purchase) of financial investments at FVOCI 85,084 (484,379) Interest income on financial investments at FVOCI 37,550 29,507 122,207 (455,918) Net cash used in investing activities 6 Classification : Confidential #
  8. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENTS OF CASH FLOW FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) Bank Bank 30-Sep 30-Sep 2021 2020 RM'000 RM'000 398,534 - Cash Flows Used In Financing Activities Proceed from issuance of subordinated term loan Payment for lease liabilities (1,420) Net cash used in financing activities (1,467) 397,114 (1,467) NET INCREASE IN CASH AND CASH EQUIVALENTS 688,182 120,834 AT BEGINNING OF YEAR 1,072,884 1,431,636 CASH AND CASH EQUIVALENTS AT END OF YEAR 1,761,066 1,552,470 1,761,066 1,552,470 CASH AND CASH EQUIVALENTS Cash and cash equivalents comprise the following: Cash and short-term funds The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 7 Classification : Confidential #
  9. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF CHANGES IN EQUITY FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 Share capital RM'000 At 1 January 2021 Loss for the period Transfer to regulatory reserve Other comprehensive income At 30 September 2021 650,000 650,000 Share capital RM'000 At 1 January 2020 Profit for the year Transfer to retained profits Other comprehensive income At 31 December 2020 650,000 650,000 Non-distributable Revaluation reservefinancial Regulatory investments reserves at FVOCI RM'000 RM'000 7,504 7,504 6,554 (3,038) 3,516 Non-distributable Revaluation reservefinancial Regulatory investments reserves at FVOCI RM'000 RM'000 9,584 (9,584) - 1,618 4,936 6,554 Retained profits RM'000 223,911 (6,027) (7,504) 210,380 Total RM'000 880,465 (6,027) (3,038) 871,400 Retained profits RM'000 Total RM'000 125,086 89,241 9,584 223,911 786,288 89,241 4,936 880,465 The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 8 Classification : Confidential #
  10. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 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 At Amortised Cost: Cash and balances with banks and other financial institutions Money at call and deposit placements maturing within one month 3. 31-Dec 2020 RM'000 83,096 29,608 1,677,970 1,761,066 1,043,276 1,072,884 FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS ('FVTPL') At Fair Value: Government Securities: Malaysian Government Securities Malaysian Government Investment Issues 4. 30-Sep 2021 RM'000 30-Sep 2021 RM'000 31-Dec 2020 RM'000 586,717 298,607 885,324 381,477 32,490 413,967 FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME ('FVOCI') 30-Sep 31-Dec 2021 2020 RM'000 RM'000 At Fair Value: Government securities: Malaysian Government Securities 134,781 311,624 Malaysian Government Investment Issues 436,955 422,248 Bank Negara Malaysia Debt Securities 660,711 601,359 1,232,447 9 1,335,231 Classification : Confidential #
  11. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 5. LOANS, ADVANCES AND FINANCING 30-Sep 2021 RM'000 31-Dec 2020 RM'000 486,295 456,695 146,599 22,391 1,111,980 (8,265) 1,103,715 827,750 376,129 131,880 7,544 1,343,303 (4,896) 1,338,407 1,111,980 1,111,980 1,323,534 19,769 1,343,303 1,111,980 1,111,980 1,343,303 1,343,303 655,285 267,881 188,814 1,111,980 1,015,886 211,467 115,950 1,343,303 1,111,980 1,111,980 1,343,303 1,343,303 661,338 13,318 3,000 168,203 256,373 9,748 1,111,980 940,551 36,157 3,000 65,575 19,769 197,740 80,511 1,343,303 At amortised cost: (i) By type Revolving credit Term loans Trust receipts Overdrafts Less:Expected Credit Losses ('ECL') Net loans, advances and financing (ii) By type of customer Domestic business enterprises Financial institutions (iii) By interest rate sensitivity Variable rate: 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 (vi) By Sector Manufacturing Mining & Quarrying Construction Wholesale and retail Financial services Other business services Real estate and business activities 10 Classification : Confidential #
  12. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 5. LOANS, ADVANCES AND FINANCING (CONTD.) (vii) Movements in ECL on loans, advances and financing are as follows: 12 mth 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 30 September 2021 Balance at beginning of financial year Changes in credit risk Allowances made during the financial period Derecognised during the financial period At end of financial period 2,310 (26) 246 (832) 1,698 2,586 26 3,955 6,567 - 4,896 4,201 (832) 8,265 31 December 2020 Balance at beginning of financial year Changes in credit risk Allowances made during the financial period Derecognised during the financial period At end of financial period 1,168 49 1,301 (208) 2,310 4,603 (49) 2,430 (4,398) 2,586 - 5,771 3,731 (4,606) 4,896 (viii) Movements on loans, advances and financing are as follows: 6. 12 mth ECL (Stage 1) RM'000 Lifetime ECL not credit impaired (Stage 2) RM'000 Lifetime ECL credit impaired (Stage 3) RM'000 30 September 2021 Balance at beginning of financial year Changes in credit risk Purchases and origination Derecognised during the financial period At end of financial period 1,240,718 (14,508) 248,189 (461,348) 1,013,051 102,585 14,508 3,001 (21,165) 98,929 - 1,343,303 251,190 (482,513) 1,111,980 31 December 2020 Balance at beginning of financial year Changes in credit risk Purchases and origination Derecognised during the financial period At end of financial period 1,061,318 (27,007) 517,175 (310,768) 1,240,718 134,340 27,007 51,565 (110,327) 102,585 - 1,195,658 568,740 (421,095) 1,343,303 Total RM'000 OTHER ASSETS 30-Sep 31-Dec 2021 2020 RM'000 RM'000 During The Changes changes the in comparative current in accounting financial figures policies year, arising described thefrom Bank reclassifications inadopted Note 2(b) the were and revised the applied adoption Guidelines retrospectively of the onrevised Financial and guidelines have Reporting theonfollowing Financial for Licensed impact Reporting on the for Collateral assets 15,573 184,563 Other receivables 7,303 8,631 Deposit 812 812 Prepayments 1,123 1,071 24,811 195,077 11 Classification : Confidential #
  13. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 7. PROPERTY, PLANT AND EQUIPMENT Office equipment and machinery RM'000 Renovation and installation RM'000 Furniture, fixtures and fittings RM'000 Computer equipment and hardware RM'000 Cost At beginning of the financial year Additions Disposals Write-off Lease modification At end of the financial period 378 24 402 4,256 4,256 1,855 1,855 7,914 397 8,311 15 6 (15) 6 - 12,397 (821) 11,576 26,815 427 (15) (821) 26,406 Accumulated Depreciation At beginning of the financial year Depreciation charged for financial period Write-off Lease modification At end of the financial period 258 28 286 4,200 23 4,223 1,725 60 1,785 5,513 761 6,274 15 (15) - - 7,572 1,099 8,671 19,283 1,971 (15) 21,239 Net Book Value At end of the financial period 116 33 70 2,037 6 - 2,905 5,167 Motor vehicles RM'000 Work-in progress RM'000 Right of use asset RM'000 Total RM'000 30 September 2021 12 # Classification : Confidential
  14. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 7. PROPERTY, PLANT AND EQUIPMENT (CONTD.) Office equipment and machinery RM'000 Renovation and installation RM'000 Furniture, fixtures and fittings RM'000 Computer equipment and hardware RM'000 Cost At beginning of the financial year Additions Reclassification Lease modification At end of the financial year 310 68 378 4,256 4,256 1,851 4 1,855 6,236 1,373 305 7,914 15 15 Accumulated Depreciation At beginning of the financial year Depreciation charged for financial year Lease modification At end of the financial year 227 31 258 4,109 91 4,200 1,642 83 1,725 4,789 724 5,513 15 15 Net Book Value At end of the financial year 120 56 130 2,401 - Motor vehicles RM'000 Work-in progress RM'000 Right of use asset RM'000 Total RM'000 31 December 2020 13 228 77 (305) - 13,231 (834) 12,397 26,127 1,522 (834) 26,815 - 5,640 1,646 286 7,572 16,422 2,575 286 19,283 - 4,825 7,532 # Classification : Confidential
  15. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 8. INTANGIBLE ASSETS 30-Sep 2021 RM'000 31-Dec 2020 RM'000 Computer Software: Cost At beginning of the financial year At end of the financial period/year 3,090 3,090 3,090 3,090 Accumulated Amortisation At beginning of the financial year Amortisation for the year At end of the financial period/year 3,066 22 3,088 2,180 886 3,066 2 24 Total Net Book Value 9. DEPOSITS FROM CUSTOMERS 30-Sep 2021 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 More than one year 31-Dec 2020 RM'000 1,240,961 633,477 8,001 1,882,439 1,409,123 886,190 5,507 2,300,820 641,425 53 641,478 887,209 4,488 1,855,779 26,660 1,882,439 2,278,943 21,877 2,300,820 891,697 The deposits are sourced from the following types of customers: Business enterprises Non-bank financial institutions 10. DEPOSITS AND PLACEMENTS FROM BANKS AND OTHER FINANCIAL INSTITUTIONS 30-Sep 2021 RM'000 At amortised cost: Other financial institutions 1,514,781 1,514,781 14 31-Dec 2020 RM'000 840,883 840,883 Classification : Confidential #
  16. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 11. OTHER LIABILITIES 30-Sep 2021 RM'000 Collateral deposits Other payables Accruals and charges Lease Liabilities Expected credit losses (i) 826,377 58,950 12,352 2,757 207 900,643 Movements in ECL on loans commitments and financial guarantee are as follows: Lifetime ECL 12 mth not credit ECL impaired (Stage 1) (Stage 2) RM'000 RM'000 30 September 2021 Balance at beginning of financial year Changes in credit risk Allowances made/(written back) during the financial period At end of financial period Lifetime ECL credit impaired (Stage 3) RM'000 31-Dec 2020 RM'000 1,151,905 50,330 18,692 4,913 692 1,226,532 Total RM'000 194 (2) 498 2 - 692 - (39) 153 (446) 54 - (485) 207 31 December 2020 Balance at beginning of financial year Allowances made/(written back) during the financial period At end of financial period 244 1,900 - 2,144 (50) 194 (1,402) 498 - (1,452) 692 12. SHARE CAPITAL Ordinary shares issued and fully paid: Balance as at 30 September/December 15 30-Sep 2021 RM'000 31-Dec 2020 RM'000 650,000 650,000 Classification : Confidential #
  17. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 13. RESERVES 30-Sep 2021 RM'000 Non-distributable: Revaluation reserve financial investments at FVOCI Regulatory reserve 3,516 7,504 11,020 31-Dec 2020 RM'000 6,554 6,554 14. INTEREST INCOME Loans, advances and financing Money at call and deposit placements with financial institutions Financial investment at FVOCI Financial assets at FVTPL Reverse repurchase agreements Other interest income Amortisation of premium less accretion of discount Total Interest Income 30-Sep 2021 RM'000 30-Sep 2020 RM'000 21,961 16,125 35,988 30,298 14,130 1,029 119,531 (12,141) 107,390 32,323 25,279 32,407 20,871 12,488 993 124,361 (6,118) 118,243 30-Sep 2021 RM'000 30-Sep 2020 RM'000 15. INTEREST EXPENSE Deposits and placements from banks and other financial institutions Deposits from customers Repurchase agreements Lease Liabilities Subordinated term loan Other interest expense (3,653) 12,597 1,143 85 502 1,867 12,541 16 2,696 19,205 467 128 4,407 26,903 Classification : Confidential #
  18. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 16. OTHER OPERATING INCOME 30-Sep 2021 RM'000 Fee income: Commissions Guarantee fees Other fee income (Loss)/Gain arising from sale of: Financial assets at FVTPL Financial investments at FVOCI (Loss)/Gain on derivatives trading: Realised (loss)/gain Unrealised (loss)/gain Unrealised (loss)/gain on revaluation of: FVTPL 30-Sep 2020 RM'000 160 1,059 2,932 4,151 92 1,434 2,444 3,970 (21,898) (21,898) 20,986 8,151 29,137 14,162 (28,555) (14,393) (106,500) 177,829 71,329 (2,883) 275 . Unrealised (loss)/gain on reverse repurchase agreements (307) Unrealised gain/(loss) on repurchase agreements 313 Other income: Foreign exchange: - Realised (loss)/gain - Unrealised gain/(loss) Others Total 17 1,218 (434) 71,203 (81,158) 1,868 (8,087) 35,845 (50,210) 9,869 (4,496) (43,104) 100,999 Classification : Confidential #
  19. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 17. OTHER OPERATING EXPENSES Personnel costs (Note a) Establishment costs (Note b) Marketing expenses (Note c) Administration and general expenses (Note d) (a) 30,448 13,968 231 9,734 54,381 33,402 10,858 324 40,021 84,605 22,782 3,666 93 3,907 30,448 24,944 3,900 259 4,299 33,402 5,700 1,971 22 6,275 13,968 6,315 1,718 664 2,161 10,858 42 189 231 56 268 324 1,294 710 7,730 9,734 1,581 711 37,729 40,021 Establishment costs Information technology costs Depreciation of property, plant and equipment Amortization of intangible asset Others (c) 30-Sep 2020 RM'000 Personnel costs Salaries, bonuses and allowances Defined contribution plan Social security cost Other staff related expenses (b) 30-Sep 2021 RM'000 Marketing Expenses Advertising Others (d) Administration and general expenses Legal and professional fees Communication & transportation Others general expenses 18. EXPECTED CREDIT LOSSES FOR IMPAIRMENT ON FINANCIAL ASSETS 30-Sep 2021 RM'000 Expected credit losses: Allowance made/(write-back) during the financial period 2,674 18 30-Sep 2020 RM'000 (4,783) Classification : Confidential #
  20. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 19. CAPITAL ADEQUACY The components of Tier I and Tier II capital are as follows: 30-Sep 2021 RM'000 31-Dec 2020 RM'000 650,000 210,380 11,020 871,400 650,000 223,911 6,554 880,465 (2) (3,315) (1,934) (7,504) 858,645 (24) (3,416) (3,605) 873,420 Tier-I capital Paid-up share capital Retained profits Other disclosed reserves Less : Regulatory adjustments Intangible assets Deferred tax assets 55% of cumulative gains of financial instruments at FVOCI Regulatory reserve Total Tier-I capital Tier-II Capital Expected Credit Losses Subordinated term loan Total Tier-II capital Total capital base 8,472 399,028 407,500 5,588 5,588 1,266,145 879,008 Capital Ratios Common Equity Tier 1 Ratio Tier 1 Capital Ratio Total Capital Ratio 25.639% 25.639% 37.807% 18.905% 18.905% 19.026% The breakdown of risk-weighted assets by each major risk category is as follows: 30-Sep 2021 RM'000 31-Dec 2020 RM'000 Credit Risk Market Risk Operational Risk Total risk-weighted assets 2,049,038 937,533 362,422 3,348,993 19 2,347,059 1,868,985 403,981 4,620,025 Classification : Confidential #
  21. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 20. INTEREST RATE RISK The following table represents the Bank's assets and liabilities at carrying amounts as at 30 September 2021 Non-Trading Book Up to 1 month RM'000 Assets Cash and short-term funds Reverse repurchase agreements Financial assets at fair value through profit or loss Financial investments at fair value through other comprehensive income 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 Subordinated term loan Other liabilities Total Liabilities Net interest rate gap 1-3 months RM'000 3 - 12 months RM'000 1-5 years RM'000 Over 5 years RM'000 Trading Non-interest book sensitive RM'000 RM'000 Total RM'000 1,760,496 - - - - - 372,084 885,324 419,686 615,542 2,795,724 241,920 282,724 524,644 173,546 210,658 384,204 392,412 392,412 - 615,538 1,872,946 1,762,006 115,411 4,270 53 - - 1,397,740 3,159,746 112,984 228,395 4,200 8,470 53 398,534 398,534 444,393 444,393 (143) 494 900,643 901,693 1,514,781 444,393 399,028 900,643 5,141,284 296,249 375,734 392,359 1,428,553 (877,075) 853,264 (364,022) 20 (398,534) 570 1,498 - 1,761,066 373,582 885,324 4,883 (5,209) 22,876 24,618 1,232,447 1,103,715 615,538 22,876 5,994,548 699 # 1,882,439 Classification : Confidential
  22. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 20. INTEREST RATE RISK (CONTD) The following table represents the Bank's assets and liabilities at carrying amounts as of 31 December 2020 Non-Trading Book Up to 1 month RM'000 Assets Cash and short-term funds Reverse repurchase agreements Financial assets at fair value through profit or loss Financial investments at fair value through other comprehensive income Loans, advances and financing Derivative financial assets Other assets Total Assets Liabilities Deposits from customers Deposits and placements from banks and other financial institutions Repurchase agreements Derivatives financial liabilities Other liabilities Total Liabilities Net interest rate gap 1-3 months RM'000 3 - 12 months RM'000 1-5 years RM'000 Over 5 years RM'000 Trading Non-interest book sensitive RM'000 RM'000 1,072,608 - - - - - 971,952 413,967 782,901 1,855,509 631,483 323,907 955,390 192,598 234,151 426,749 502,654 502,654 - 1,296,293 2,682,212 2,228,015 67,500 4,511 - - - 839,406 3,067,421 500 68,000 1,000 5,511 - - 284,878 1,111,173 1,396,051 (23) 475 1,226,532 1,227,778 2,300,820 840,883 285,353 1,111,173 1,226,532 5,764,761 (1,211,912) 887,390 421,238 502,654 - 1,286,161 (1,025,638) 859,893 21 276 2,726 - Total RM'000 8,496 (2,552) 193,194 202,140 794 # 1,072,884 974,678 413,967 1,335,231 1,338,407 1,296,293 193,194 6,624,654 Classification : Confidential
  23. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 21. 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: Commitments and Contingent Liabilities Direct credit substitutes Short-term self-liquidating trade-related contingencies Irrevocable commitments to extend credit: Maturity more than one year Total credit related commitment and contingencies 30-Sep 2021 RM'000 31-Dec 2020 RM'000 335,890 375,527 3,603 6,904 63,067 402,559 353,470 735,901 62,352,077 2,126,750 529,365 48,467,361 2,161,244 17,000 Foreign exchange derivatives: One year or less Over one year to five years Over 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 Total treasury related commitment and contingencies 13,670,771 29,370,700 1,898,204 13,308,092 31,127,563 1,459,071 262,771 420,018 110,630,656 290,264 620,940 97,451,535 Total commitment and contingencies 111,033,215 98,187,436 22 Classification : Confidential #
  24. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 22. Islamic Banking Window UNAUDITED STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2021 Note 30-Sep 2021 RM'000 31-Dec 2020 RM'000 (a) (b) (c) (d) 37,892 - 22,202 9,766 - 37,892 31,968 11,184 4,746 10,079 82 Total liabilities 15,930 10,161 Capital fund Accumulated losses Reserves 26,850 (4,888) - 26,850 (5,043) - Islamic banking funds 21,962 21,807 TOTAL LIABILITIES AND ISLAMIC BANKING FUNDS 37,892 31,968 ASSETS Cash and short-term funds Other assets Property, plant and equipment Intangible assets TOTAL ASSETS LIABILITIES AND ISLAMIC BANKING FUNDS Deposits from customers Other liabilities (e) (f) The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 23 Classification : Confidential #
  25. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 22. Islamic Banking Window UNAUDITED STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 Income derived from investment of Islamic banking funds and depositors' funds Profit expense to depositors Net income derived from investment of Islamic banking funds and depositors' funds Other operating income Other operating expenses (g) (h) (i) Profit/(Loss) for the financial period before taxation 30-Sep 2021 RM'000 30-Sep 2020 RM'000 397 (54) 321 (40) 343 281 1,062 (1,250) 155 Taxation 855 (1,362) (226) - - Profit/(Loss) for the financial period after taxation 155 (226) Total comprehensive profit/(loss) for the period 155 (226) The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 24 Classification : Confidential #
  26. Company No .201001034168 (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 30 SEPTEMBER 2021 At 1 January 2021 Profit for the financial period At 30 September 2021 At 1 January 2020 Loss for the financial year At 31 December 2020 Capital fund RM'000 Regulatory reserve RM'000 26,850 26,850 - Capital fund RM'000 Regulatory reserve RM'000 26,850 26,850 - Accumulated losses RM'000 (5,043) 155 (4,888) Accumulated losses RM'000 (4,567) (476) (5,043) Total RM'000 21,807 155 21,962 Total RM'000 22,283 (476) 21,807 The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31 December 2020. 25 Classification : Confidential #
  27. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) 22. Islamic Banking Window NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (a) CASH AND SHORT-TERM FUNDS 30-Sep 2021 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) 3,891 3,205 34,001 37,892 18,997 22,202 30-Sep 2021 RM'000 31-Dec 2020 RM'000 OTHER ASSETS Other receivables (c) 31-Dec 2020 RM'000 - 9,766 9,766 Office Equipment and Machinery RM'000 Computer Equipment RM'000 Total RM'000 30 Sep 2021/31 Dec 2020 Cost At beginning of the financial period At end of the financial period 6 6 23 23 29 29 Accumulated Depreciation At beginning of the financial period At end of the financial period 6 6 23 23 29 29 Net Book Value At end of the financial period - - - PROPERTY, PLANT AND EQUIPMENT 26 Classification : Confidential #
  28. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 22. Islamic Banking Window (d) INTANGIBLE ASSETS 30-Sep 2021 RM'000 31-Dec 2020 RM'000 Computer Software: Cost At 1 January At end of the financial period 41 41 41 41 Accumulated Amortisation At 1 January Amortisation for the year At end of the financial period 41 41 37 4 41 - - Net Book Value (e) DEPOSITS FROM CUSTOMERS Type At Amortised Cost: Non-Mudharabah Fund Demand deposits Commodity Murabahah (i) 3,183 8,001 11,184 4,572 5,507 10,079 30-Sep 2021 RM'000 31-Dec 2020 RM'000 8,001 5,507 The deposits are sourced from the following types of customers: Business enterprise Domestic non-bank financial institution (f) 31-Dec 2020 RM'000 Maturity structure of Commodity Murabahah is as follows: Due within six months (ii) 30-Sep 2021 RM'000 30-Sep 2021 RM'000 31-Dec 2020 RM'000 11,184 11,184 2 10,077 10,079 30-Sep 2021 RM'000 31-Dec 2020 RM'000 OTHER LIABILITIES Other payables 4,746 27 82 # Classification : Confidential
  29. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 22. Islamic Banking Window (g) INCOME DERIVED FROM INVESTMENT OF ISLAMIC BANKING FUNDS AND DEPOSITORS' FUNDS 30-Sep 2021 RM'000 Money at call and deposit placement with financial institutions 30-Sep 2020 RM'000 397 321 (h) OTHER OPERATING INCOME 30-Sep 2021 RM'000 Fee income: Commissions Other fee income - Foreign exchange: - Unrealised gain Others Total (i) 30-Sep 2020 RM'000 83 1 29 84 57 895 768 1,062 855 OTHER OPERATING EXPENSES 30-Sep 2021 RM'000 Personnel costs (Note i) Establishment costs (Note ii) Marketing expenses (Note iii) Administration and general expenses (Note iv) (i) (ii) (iii) (iv) Personnel Costs Salaries, bonuses and allowances Defined contribution plan Other staff related expenses Establishment costs Rental of premises Information technology costs Others Marketing Expenses Others Administration and general expenses Legal and professional fees Communication & transportation Others 28 30-Sep 2020 RM'000 991 81 1 177 1,250 1,094 81 4 183 1,362 775 132 84 991 875 151 68 1,094 58 4 19 81 55 8 18 81 1 4 105 14 58 177 112 12 59 183 # Classification : Confidential
  30. Company No .201001034168 (918091-T) BNP PARIBAS MALAYSIA BERHAD (Incorporated in Malaysia) NOTES TO THE FINANCIAL STATEMENTS FOR THE FINANCIAL QUARTER ENDED 30 SEPTEMBER 2021 (CONTD.) 22. Islamic Banking Window (j) CAPITAL ADEQUACY The components of Tier I and Tier II capital are as follows: 30-Sep 2021 RM'000 31-Dec 2020 RM'000 26,850 (5,043) 21,807 26,850 (5,043) 21,807 Less : Regulatory adjustments Intangible assets Total Tier-I capital 21,807 21,807 Total capital base 21,807 21,807 Tier-I capital Capital fund Accumulated losses Capital Ratios Tier 1 Capital Ratio Tier 1 Capital Ratio Total Capital Ratio 558.402% 558.402% 558.402% 165.606% 165.606% 165.606% 30-Sep 2021 RM'000 31-Dec 2020 RM'000 The breakdown of risk-weighted assets by each major risk category is as follows: Credit Risk Market Risk Operational Risk Total risk-weighted assets 592 1,937 1,377 3,905 29 9,891 1,941 1,336 13,168 # Classification : Confidential