Deutsche Bank Malaysia Interim Financials Statements 1Q 2017

Transcription

1. Deutsche Bank Deutsche Bank (Malaysia) Berhad (Company No. 312552-W) (Incorporated in Malaysia) and its subsidiaries Unaudited Condensed Interim Financial Statements for the Financial Period ended 31 March 2017 Domiciled in Malaysia Registered office: Level 18, Menara IMC No. 8 Jalan Sultan Ismail 50250 Kuala Lumpur
2. Deutsche Bank Consolidated Statements of Financial Position As at 31 March 2017 - Unaudited Group Note Assets Cash and short term funds Deposits and placements of banks and other financial institutions Reverse repurchase agreements Financial assets held-for-trading Financial investments available-for-sale Loans , advances and financing Other assets Tax recoverable Statutory deposit with Bank Negara Malaysia Investments in subsidiary companies Property, plant and equipment Deferred tax assets 12 13 14 15 31 March 2017 31 December 2016 RM’000 RM’000 RM’000 RM’000 4,694,222 4,608,452 4,694,222 4,608,452 1,110 352,181 1,254,242 1,591 1,821,243 3,132,092 - 1,126 608,641 635,245 1,591 1,890,528 3,849,865 2,970 1,110 352,181 1,254,242 1,591 1,821,243 3,132,092 - 1,126 608,641 635,245 1,591 1,890,528 3,849,865 2,970 16 4,451,554 4,285,140 4,451,574 4,285,160 17 18 1,214,133 3,923,011 5,464 __________ 9,594,162 ----------------173,599 1,649,861 __________ 1,823,460 ----------------11,417,622 ========== 120,569,768 ========== 1,441,194 4,406,607 __________ 10,132,941 ----------------173,599 1,581,830 __________ 1,755,429 ----------------11,888,370 ========== 112,693,840 ========== 1,214,133 3,923,011 5,464 __________ 9,594,182 ----------------173,599 1,649,861 __________ 1,823,460 ----------------11,417,642 ========== 120,569,768 ========== 1,441,194 4,406,607 __________ 10,132,961 ----------------173,599 1,581,830 __________ 1,755,429 -----------------11,888,390 ========== 112,693,840 ========== Total liabilities Share capital Reserves Shareholders’ funds Total liabilities and shareholders’ funds Commitments and contingencies Bank 31 December 2016 120,000 250,000 120,000 250,000 20 20 4,515 4,191 4,515 4,191 36,426 35,761 36,426 35,761 __________ __________ __________ __________ 11,417,622 11,888,370 11,417,642 11,888,390 ========== ========== ========== ========== Total assets Liabilities and shareholders’ funds Deposits from customers Deposits and placements of banks and other financial institutions Other liabilities Tax payable 31 March 2017 25 The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements for the Group and the Bank for the year ended 31 December 2016. Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 1
3. Deutsche Bank Consolidated Statements Of Profit Or Loss And Other Comprehensive Income For The Financial Period Ended 31 March 2017 - Unaudited Group and Bank 1st Quarter ended Three months ended Note Interest income Interest expense 19 20 Net interest income Net income from Islamic Banking Operations 26 Non-interest income 21 Operating income Other operating expenses 22 Operating profit Allowance written back for impairment on loans , advances and financing 23 Profit before tax Tax expense Net profit / Total comprehensive income for the period Earnings per share (sen) 31 March 2017 31 March 2016 31 March 2017 31 March 2016 RM’000 RM’000 RM’000 RM’000 58,779 (18,735) _______ 40,044 45,776 (20,846) _______ 24,930 58,779 (18,735) _______ 40,044 45,776 (20,846) _______ 24,930 633 301 633 301 79,787 _______ 120,464 (33,242) _______ 87,222 51,559 _______ 76,790 (31,744) _______ 45,046 79,787 _______ 120,464 (33,242) _______ 87,222 51,559 _______ 76,790 (31,744) _______ 45,046 2,644 _______ 89,866 (21,835) _______ 819 _______ 45,865 (11,887) _______ 2,644 _______ 89,866 (21,835) _______ 819 _______ 45,865 (11,887) _______ 68,031 ======= 33,978 ======= 68,031 ======= 33,978 ======= 39.2 sen ======= 19.6 sen ======= 39.2 sen ======= 19.6 sen ======= The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements for the Group and the Bank for the year ended 31 December 2016. Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 2
4. Deutsche Bank Consolidated Statements Of Changes In Equity For The Financial Period Ended 31 March 2017 <---------------------------Attributable to owner of the Bank------------------------------------------> <----------Non-distributable-------------> Distributable Group and Bank Share capital RM’000 Share premium RM’000 Other reserves RM’000 Retained profits RM’000 Total reserves RM’000 Proposed dividend RM’000 At 1 January 2017 173,599 357,763 188,280 1,035,787 1,581,830 - 1,755,429 - - - 68,031 68,031 - 68,031 Net profit/ Total comprehensive income for the period Total RM’000 --------------------------------------------------------------------------------------------------------------------------------173,599 357,763 188,280 1,103,818 1,649,861 1,823,460 ========================================================================== At 31 March 2017 At 1 January 2016 Net profit/ Total comprehensive income for the period 173,599 357,763 188,280 988,748 1,534,791 - 1,708,390 - - - 33,978 33,978 - 33,978 ----------------------------------------------------------------------------------------------------------------------- ---------173,599 357,763 188,280 1,022,726 1,568,769 1,742,368 ========================================================================== At 31 March 2016 The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements for the Group and the Bank for the year ended 31 December 2016. Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 3
5. Deutsche Bank Condensed Consolidated Statements Of Cash Flows For The Financial Period Ended 31 March 2017 Group and Bank 31 March 31 March 2017 2016 RM ’000 RM’000 Profit before taxation Adjustments for non-operating and non-cash items Operating profit before working capital changes Changes in working capital: Net changes in operating assets Net changes in operating liabilities Income tax paid Net cash generated from/ (used in) operations Cash flows from investing activities: Purchase of plant and equipment Net cash used in investing activities Net increase/ (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period Analysis of cash and cash equivalents: Cash and short-term funds 89,866 253 _________ 90,119 45,865 234 _________ 46,099 554,537 (544,243) (14,066) _________ 86,347 --------------- 891,375 (1,788,702) (13,918) _________ (865,146) --------------- (577) _________ (577) --------------- (146) _________ (146) --------------- 85,770 4,608,452 _________ 4,694,222 _________ (865,292) 5,856,232 _________ 4,990,940 _________ 4,694,222 _________ 4,990,940 _________ The unaudited condensed interim financial statements should be read in conjunction with the audited financial statements for the Group and the Bank for the year ended 31 December 2016. Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 4
6. Deutsche Bank Explanatory Notes To The Interim Financial Statements For The Financial Period Ended 31 March 2017 1 . Basis of preparation The unaudited interim financial statements for the financial period ended 31 March 2017 have been prepared under the historical cost convention except for reverse repurchase agreements, financial assets held-fortrading and derivative financial instruments which are stated at fair values. The unaudited interim financial statements have been prepared in accordance with MFRS 134, Interim Financial Reporting issued by the Malaysian Accounting Standards Board (“MASB”). The unaudited interim financial statements should be read in conjunction with the audited annual financial statements for the Group and the Bank for the financial year ended 31 December 2016. 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 2016. The unaudited interim financial statements incorporated those activities relating to the Islamic banking business. Islamic banking business refers generally to the acceptance of deposits under the principles of Shariah. The significant accounting policies and methods of computation applied in the unaudited interim financial statements are consistent with those adopted in the most recent audited annual financial statements for the year ended 31 December 2016, except for the adoption of the following Malaysian Financial Reporting Standard (“MFRS”), Amendments to MFRSs and IC Interpretation that have been issued by the Malaysian Accounting Standard Board(“MASB”):    Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual Improvements to MFRS Standards 2014-2016 Cycle) Amendments to MFRS 107, Statement of Cash Flows – Disclosure Initiative Amendments to MFRS 112, Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses The following are accounting standards, amendments and interpretations of the MFRS framework that have been issued by MASB but have not been adopted by the Group and the Bank: MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2018          MFRS 9, Financial Instruments (2014) MFRS 15, Revenue from Contracts with Customers Clarifications to MFRS15, Revenue from Contract Customers IC Interpretation 22, Foreign Currency Transactions and Advance Consideration Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to MFRS Standards 2014-2016 Cycle) Amendments to MFRS 2, Share-based Payment – Classification and Measurement of Sharebased Payment Transactions Amendments to MFRS 4, Insurance Contracts – Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts Amendments to MFRS 128, Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards 2014-2016 Cycle) Amendments to MFRS 140, Investment Property – Transfers of Investment Property Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 5
7. Deutsche Bank 1 . Basis of preparation (continued) MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2019  MFRS 16, Leases MFRSs, Interpretations and amendments effective for a date yet to be confirmed  Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture The Group and the Bank plan to apply the abovementioned standards, amendments and interpretations, where applicable:  from the annual period beginning on 1 January 2018 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2018; and,  from the annual period beginning on 1 January 2019 for those accounting standards, amendments or interpretations that are effective for annual periods beginning on or after 1 January 2019. The initial application of the accounting standards, amendments and interpretations are not expected to have any material financial impact to the current period and prior period financial statements of the Group and the Bank except as mentioned in the subsequent paragraphs: (i) MFRS 9, Financial Instruments MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification and measurement of financial assets and financial liabilities, and on hedge accounting. (ii) MFRS 15, Revenue from Contracts with Customers MFRS 15 replaces the guidance in MFRS 111, Construction Contracts, MFRS 118, Revenue, IC Interpretation 13, Customer Loyalty Programmes, IC Interpretation 15, Agreements for Construction of Real Estate, IC Interpretation 18, Transfers of Assets from Customers and IC Interpretation 131, Revenue - Barter Transactions Involving Advertising Services. (iii) MFRS 16, Leases MFRS 16 replaces the guidance in MFRS 117, Leases, IC Interpretation 4, Determining whether an Arrangement contains a Lease, IC Interpretation 115, Operating Leases – Incentives and IC Interpretation 127, Evaluating the Substance of Transactions Involving the Legal Form of a Lease. The Group and the Bank are currently assessing the financial impact that may arise from the adoption of MFRS 9, MFRS 15 and MFRS 16. Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 6
8. Deutsche Bank 2 . Audit report The audit report on the audited annual financial statements of the Group and the Bank for the financial year ended 31 December 2016 was not subject to any qualification. 3. Seasonality or Cyclicality of Operations The business operations of the Group and the Bank are not subject to material seasonal or cyclical fluctuations. 4. Unusual Items Due to Their Nature, Size or Incidence There were no unusual items affecting assets, liabilities, equity, net income or cash flows of the Group and of the Bank for the financial period ended 31 March 2017. 5. Changes in Estimates There were no significant changes in estimates of amounts reported in prior financial years that have a material effect on the financial results and position of the Group and the Bank for the financial period ended 31 March 2017. 6. Issuance and Repayment of Debt and Equity Securities There were no issuance and repayment of debt and equity securities during the financial period ended 31 March 2017. 7. Dividend Paid No dividend was paid during the financial period ended 31 March 2017. The final dividend recommended by the Directors in respect of the financial year ended 31 December 2016 is 84.7 sen per ordinary share totalling RM147,039,000. 8. Material Events There were no material events subsequent to the reporting date that require disclosure or adjustments to the unaudited condensed interim financial statements. 9. Changes in the composition of the Group There were no changes in the composition of the Group for the financial period ended 31 March 2017. 10. Review of Performance The Bank recorded profit before taxation for the financial period ended 31 March 2017 of RM89.9 million compared to RM45.9 million profit for the previous corresponding period. Operating income increased by RM43.7 million (+56.9%) from RM76.8 million to RM120.5 million mainly attributed to higher non-interest income, mainly due to increase in total net loss/ gain arising from trading derivatives and foreign exchange gain/ loss by RM30.6 million (+>100%) from RM26.2 million to RM56.8 million. Net interest income increased by RM15.1 million (+60.6%) from RM24.9 million to RM40.0 million, primarily driven by higher interest income earned from loan and advances and money at call and deposit placements with financial institutions, offset by lower interest expense paid on deposits and placements of banks and other financial institutions. Total assets registered a decrease of RM0.5 billion or 4.0% from RM11.9 billion as at 31 December 2016 to RM11.4 billion as at 31 March 2017. The Bank’s total common equity tier 1 ratio and total capital ratio remained strong at 23.5% and 23.8%, respectively. Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 7
9. Deutsche Bank 11 . Prospects Global economy is expected to experience improved growth prospects in 2017, albeit at a modest rate, with US economy seeing modest upside in business confidence whilst economy in Europe and Japan are also showing stronger internal growth dynamics. However, uncertainties still remain to weight down on emerging market’s growth prospects. On the local front, as commodity prices recover coupled with weak ringgit, this is expected to support the country’s export growth. Local economy is anticipated to continue on steady growth but at a slower pace with GDP forecasted at 4.5% for 2017. The Bank remains competitive with the solid frameworks around capital and liquidity management, risk controls and enhanced internal processes to withstand these challenging times. We continue to be relentless in our commitment towards client centricity and in driving product innovation to deliver sustainable performance. The Bank looks forward to contribute to the economic growth and wellbeing of the communicates which we operate and to create positive impact for our clients, investors, employees and society at large. 12. Financial assets held-for-trading At fair value Malaysian Government Securities Malaysian Investment Issue Bank Negara Malaysia Bills Treasury Bills Cagamas bonds 13. Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 838,071 326,547 87,511 40 2,073 _________ 1,254,242 ========= 490,502 142,658 2,085 _________ 635,245 ========= Financial investments available-for-sale Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 At cost Unquoted shares 1,591 ======== 1,591 ======== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 8
10. Deutsche Bank 14 . Loans, advances and financing At amortised cost Overdrafts Term loans - housing loans - other term loans Bills receivable Claims on customers under acceptance credits Staff loans Unearned interest Gross loans, advances and financing Allowance for impaired loans and financing - Collective assessment - Individual assessment Net loans, advances and financing Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 114,382 14,358 206,360 534,306 982,813 3,367 _________ 1,855,586 (19,987) _________ 1,835,599 130,457 15,059 228,226 677,220 871,013 3,356 _________ 1,925,331 (17,803) _________ 1,907,528 (14,184) (172) _________ 1,821,243 ========= (16,822) (178) _________ 1,890,528 ========= The maturity structure of gross loans, advances and financing are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Maturing within one year More than one to three years More than three to five years More than five years 1,795,769 23,147 1,459 15,224 _________ 1,835,599 ========= 1,870,033 23,161 1,527 12,807 _________ 1,907,528 ========= Gross loans, advances and financing analysed by type of customer are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Domestic banking institutions Domestic non-bank financial institutions Domestic business enterprises Government and statutory bodies Individuals Foreign entities 354,903 931,998 17,726 530,972 _________ 1,835,599 ========= 2,546 229,504 874,918 109,782 18,415 672,363 _________ 1,907,528 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 9
11. Deutsche Bank 14 . Loans, advances and financing (continued) Gross loans, advances and financing analysed by interest / profit rate sensitivity are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Fixed rate - Other fixed rate loan / financing Variable rate - Base lending rate plus - Cost-plus - Other variable rates 3,242 3,231 39,879 1,790,634 1,844 _________ 1,835,599 ========= 42,347 1,859,986 1,964 _________ 1,907,528 ========= Gross loans, advances and financing analysed by their geographical distribution are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Malaysia China Singapore India Vietnam Turkey Others 1,304,627 89,828 38,106 195,636 42,779 134,488 30,135 _________ 1,835,599 ========= 1,235,165 102,124 175,237 326,747 10,667 30,746 26,842 _________ 1,907,528 ========= Gross loans, advances and financing analysed by their economic sector are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Mining and Quarrying Manufacturing Construction Wholesale & retail trade and restaurants & hotels Transport, storage and communication Finance, insurance and business services Education, health and others Household 2,727 282,832 74,395 231,895 333,272 892,752 17,726 _________ 1,835,599 ========= 2,748 339,073 72,004 205,397 242,332 917,777 109,782 18,415 _________ 1,907,528 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 10
12. Deutsche Bank 14 . Loans, advances and financing (continued) Movements in impaired loans, advances and financing are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Balance at 1 January Classified as impaired during the period/ year Reclassified as non-impaired during the period/ year Amount recovered At 31 March 2017/ 31 December 2016 Gross impaired loans as a percentage of gross loans, advances and financing 2,634 164 (298) (81) ______ 2,419 ====== 2,982 638 (540) (446) ______ 2,634 ====== 0.13% ====== 0.14% ====== Movement in the allowance for impaired loans, advances and financing are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Collective Assessment Allowance At 1 January Allowance (recovered)/ made during the period/ year At 31 March 2017/ 31 December 2016 16,822 (2,638) ______ 14,184 ====== 9,268 7,554 ______ 16,822 ====== Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Individual Assessment Allowance At 1 January Allowance made during the period/ year Amount recovered 178 4 (10) _____ 172 ===== At 31 March 2017/ 31 December 2016 315 126 (263) _____ 178 ===== Impaired loans, advances and financing analysed by economic sector and geographical distribution are as follows: Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Household (Malaysia) 2,419 ______ 2,419 ====== 2,634 ______ 2,634 ====== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 11
13. Deutsche Bank 15 . Other assets Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Interest / Income receivable Margin placed with exchange Derivatives Other debtors, deposits and prepayments 16. 9,221 154 1,971,191 1,151,526 ________ 3,132,092 ======== 7,928 21,761 2,778,605 1,041,571 ________ 3,849,865 ======== Deposits from customers Group 31 March Demand deposits Savings deposits Fixed deposits Other deposits Bank 31 December 31 March 31 December 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 4,090,193 2,961 124,240 234,160 _________ 4,451,554 ========= 3,907,414 3,136 115,040 259,550 _________ 4,285,140 ========= 4,090,213 2,961 124,240 234,160 _________ 4,451,574 ========= 3,907,434 3,136 115,040 259,550 _________ 4,285,160 ========= The maturity structure of fixed deposits and other deposits are as follows:Group and Bank Due within six months More than six months to one year More than one year to three years More than five years 31 March 31 December 2017 RM’000 2016 RM’000 247,128 11,274 206 99,792 ________ 358,400 ======== 276,094 6,813 207 91,476 ________ 374,590 ======== The deposits are sourced from the following types of customers: Group Business enterprises Individuals Foreign customers Others Bank 31 March 31 December 31 March 31 December 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 3,596,775 3,564,977 25,441 25,728 127,979 109,666 701,359 584,769 _________ _________ 4,451,554 4,285,140 ========= ========= 3,596,795 25,441 127,979 701,359 _________ 4,451,574 ========= 3,564,997 25,728 109,666 584,769 _________ 4,285,160 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 12
14. Deutsche Bank 17 . Deposits and placements of banks and other financial institutions Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Licensed banks Other financial institutions 18. 223,900 990,233 _________ 1,214,133 ========= 1,441,194 _________ 1,441,194 ========= Other liabilities Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Interest payable Bills payable Derivatives Employee benefits Other liabilities 1,549 59,193 2,185,110 9,290 1,667,869 _________ 3,923,011 ========= 2,378 57,070 2,819,612 13,464 1,514,083 _________ 4,406,607 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 13
15. Deutsche Bank 19 . Interest income Group and Bank 1st Quarter ended Three months ended 31 March 31 March 31 March 31 March 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Loans, advances and financing Money at call and deposit placements with financial institutions Reverse repurchase agreements Financial assets held for trading Of which: Interest income earned on impaired loans, advances and financing 17,920 12,978 17,920 12,978 28,644 2,356 9,859 _______ 58,779 ======= 24,045 1,266 7,487 _______ 45,776 ======= 28,644 2,356 9,859 _______ 58,779 ======= 24,045 1,266 7,487 _______ 45,776 ======= 34 ======= 43 ======= 34 ======= 43 ======= 20. Interest expense Group and Bank 1st Quarter ended Three months ended 31 March 31 March 31 March 31 March 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Deposits and placements of banks and other financial institutions Repurchase agreements Deposits from customers 2,841 4,057 2,841 4,057 15,894 ______ 18,735 ====== 11 16,778 ______ 20,846 ====== 15,894 ______ 18,735 ====== 11 16,778 ______ 20,846 ====== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 14
16. Deutsche Bank 21 . Non-interest income Group and Bank 1st Quarter ended Three months ended 31 March 31 March 31 March 31 March 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Fee income: Commissions Service charges and fees Guarantee fees Fee expense: Commissions Service charges and fees Net fee income 4,810 7,391 799 _______ 13,000 ------------ 4,268 9,605 1,529 _______ 15,402 ------------ 4,810 7,391 799 _______ 13,000 ------------ 4,268 9,605 1,529 _______ 15,402 ------------ (1,037) (2,530) _______ (3,567) _______ 9,433 ------------ (707) (1,847) _______ (2,554) _______ 12,848 ------------ (1,037) (2,530) _______ (3,567) _______ 9,433 ------------ (707) (1,847) _______ (2,554) _______ 12,848 ------------ Net gains from financial instruments: Net gain arising on financial assets held for trading: Realised gain 9,005 Unrealised gain 564 7,695 1,015 9,005 564 7,695 1,015 Net (loss)/ gain arising on trading derivatives: Realised gain/ (loss) 85,994 Unrealised revaluation (loss)/ gain (174,792) (148,809) 284,383 85,994 (174,792) (148,809) 284,383 Foreign exchange gain/ (loss) 145,649 (109,340) 145,649 (109,340) 3,934 _______ 70,354 -----------79,787 ======= 3,767 _______ 38,711 -----------51,559 ======= 3,934 _______ 70,354 -----------79,787 ======= 3,767 _______ 38,711 -----------51,559 ======= Other income: Other operating income, net Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 15
17. Deutsche Bank 22 . Other operating expenses Group and Bank 1st Quarter ended Three months ended 31 March 31 March 31 March 31 March 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Personnel costs - Salaries, allowances and bonuses - Others Establishment costs - Rental - Depreciation - Others Marketing expenses Administration and general expenses - Intercompany expenses - Communication - Others 12,531 3,274 12,035 3,234 12,531 3,274 12,035 3,234 727 253 908 583 727 234 575 525 727 253 908 583 727 234 575 525 11,469 457 3,040 ______ 33,242 ====== 11,996 458 1,960 ______ 31,744 ====== 11,469 457 3,040 ______ 33,242 ====== 11,996 458 1,960 ______ 31,744 ====== The number of employees of the Group and the Bank at the end of the period was 220 (March 2016 - 223). 23. Allowance for impairment on loans, advances and financing Group and Bank 1st Quarter ended Three months ended 31 March 31 March 31 March 31 March 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Individual assessment allowance - made during the period - written back Collective assessment allowance - recovered during the period (4) 10 2,638 ______ 2,644 ====== (8) 11 816 ______ 819 ====== (4) 10 (8) 11 2,638 ______ 2,644 ====== 816 ______ 819 ====== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 16
18. Deutsche Bank 24 . Capital adequacy Group and Bank 31 March 31 December 2017 2016 RM’000 RM’000 Components of Tier 1 and Tier 2 capital are as follows:Tier 1 capital Paid-up share capital Share premium Statutory reserve Retained profits Less: Deferred tax assets Total common equity tier 1(CET 1) / Total tier 1 capital 173,599 357,763 174,722 1,035,787 (35,761) ________ 1,706,110 173,599 357,763 174,722 1,035,787 (35,761) ________ 1,706,110 8,860 13,558 ________ 1,728,528 ======== 11,351 13,558 ________ 1,731,019 ======== 23.499% 23.808% ======== 21.868% 22.187% ======== Tier 2 capital Collective assessment allowance# Regulatory reserve Total Capital / Capital base Common equity tier 1(CET 1) / Tier 1 capital ratio Total capital ratio # Excludes collective assessment allowance on impaired loan restricted from Tier 2 capital of the Bank of RM5,324,000 (31 December 2016:RM5,471,000) Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 17
19. Deutsche Bank 24 . Capital adequacy (continued) The capital adequacy ratios of the Group and of the Bank are computed in accordance with Bank Negara Malaysia’s Capital Adequacy Framework (Capital Components and Basel II – Risk-weighted Assets) reissued on 13 October 2015 and became effective from 1 January 2016. The Group and the Bank have adopted the Standardised Approach for Credit Risk and Market Risk, and the Basic Indicator Approach for Operational Risk. The minimum regulatory capital adequacy ratios before including capital conservation buffer and countercyclical capital buffer (CCyB) are 4.5% for CET1 Capital Ratio, 6.0% for Tier 1 Capital Ratio and 8.0% for Total Capital Ratio. The capital conservation buffer required to be maintained in the form of CET1 Capital above the minimum regulatory capital adequacy ratios requirement will be phased-in as follow: Calendar Year 2016 2017 2018 2019 onwards Capital Conservation Buffer 0.625% 1.250% 1.875% 2.500% The CCyB which is in a range of between 0% and 2.5% is not a requirement for exposure in Malaysia yet but may be applied by regulators in the future. The breakdown of risk-weighted assets (“RWA”) by each major risk category is as follows: Risk Type Risk Weighted Assets 31 March 2017 1 2 3 Total Credit risk Market risk Operational risk RM’000 4,523,174 2,086,767 650,454 7,260,395 31 December 2016 RM’000 4,617,845 2,570,452 613,663 7,801,960 Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 18
20. Deutsche Bank 24 . Capital adequacy (continued) The breakdown of risk-weighted assets (“RWA”) by exposures in each major risk category as at 31 March 2017 are as follows: RISK TYPE 1 Credit Risk On-Balance Sheet Exposures Sovereigns/Central Banks Gross Exposures Net Exposures Risk-Weighted Assets RM’000 RM’000 RM’000 4,247,040 3,990,967 - Banks, Development Financial Institutions (“DFIs”) and Multilateral Development Banks (“MDBs”) Insurance Companies, Securities Firms and Fund Managers Corporates Regulatory Retail Residential Mortgages Higher Risk Assets Other Assets Equity Exposure Defaulted Exposures Total On-Balance Sheet Exposures 2,585,570 1,145,890 1 14,991 265,210 1,631 2,247 8,262,580 2,489,150 1,145,890 1 14,991 265,210 1,631 2,247 7,910,087 1,019,191 1,145,307 1 5,247 262,674 1,861 2,247 Off-Balance Sheet Exposures OTC Derivatives Credit Derivatives Transaction related contingent Items Short Term Self Liquidating trade related contingencies Other commitments, such as formal standby facilities and credit lines 2,868,350 15,472 353,090 25,996 724,355 1,959,513 15,472 351,924 25,996 724,355 1,014,513 4,735 331,767 22,636 712,995 Total for Off-Balance Sheet Exposures 3,987,263 3,077,260 2,086,646 12,249,843 10,987,347 4,523,174 Total On and Off- Balance Sheet Exposures Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 31 March 2017 (Company No. 312552-W) 2,436,528 19