Deutsche Bank Malaysia Interim Financials Statements 2Q 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 30 June 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 30 June 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 30 June 2017 Bank 31 December 2016 30 June 2017 31 December 2016 RM’000 RM’000 RM’000 RM’000 3,579,065 4,608,452 3,579,065 4,608,452 500,000 575,208 1,462,005 1,591 1,701,326 2,720,555 - 1,126 608,641 635,245 1,591 1,890,528 3,849,865 2,970 500,000 575,208 1,462,005 1,591 1,701,326 2,720,555 - 1,126 608,641 635,245 1,591 1,890,528 3,849,865 2,970 120,000 250,000 120,000 250,000 20 20 4,310 4,191 4,310 4,191 37,959 35,761 37,959 35,761 __________ __________ __________ __________ 10,702,019 11,888,370 10,702,039 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 16 4,433,627 4,285,140 17 18 1,057,010 3,478,879 10,989 __________ 8,980,505 ----------------173,599 1,547,915 __________ 1,721,514 ----------------10,702,019 ========== 113,485,819 ========== 1,441,194 4,406,607 __________ 10,132,941 ----------------173,599 1,581,830 __________ 1,755,429 ----------------11,888,370 ========== 112,693,840 ========== Total liabilities Share capital Reserves Shareholders’ funds Total liabilities and shareholders’ funds Commitments and contingencies 26 4,433,647 4,285,160 1,057,010 1,441,194 3,478,879 4,406,607 10,989 __________ __________ 8,980,525 10,132,961 ----------------- ----------------173,599 173,599 1,547,915 1,581,830 __________ __________ 1,721,514 1,755,429 ----------------- -----------------10,702,039 11,888,390 ========== ========== 113,485,819 112,693,840 ========== ========== 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 30 June 2017 (Company No. 312552-W) 1
3. Deutsche Bank Consolidated Statements Of Profit Or Loss And Other Comprehensive Income For The Financial Period Ended 30 June 2017 - Unaudited Group and Bank Half year ended Three months ended Note Interest income Interest expense 19 20 Net interest income Net income from Islamic Banking Operations 27 Non-interest income 21 Operating income Other operating expenses 22 Operating profit Allowance written back / (made) 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) 30 June 2017 30 June 2016 30 June 2017 30 June 2016 RM’000 RM’000 RM’000 RM’000 119,941 (37,146) _______ 82,795 96,314 (38,360) _______ 57,954 61,162 (18,411) _______ 42,751 50,538 (17,514) _______ 33,024 1,289 453 656 152 133,058 _______ 217,142 (69,651) _______ 147,491 143,845 _______ 202,252 (69,778) _______ 132,474 53,271 _______ 96,678 (36,409) _______ 60,269 92,286 _______ 125,462 (38,034) _______ 87,428 2,935 _______ 150,426 (37,302) _______ (2,475) _______ 129,999 (32,457) _______ 291 _______ 60,560 (15,467) _______ (3,294) _______ 84,134 (20,570) _______ 113,124 ======= 97,542 ======= 45,093 ======= 63,564 ======= 65.2 sen ======= 56.2 sen ======= 26.0 sen ======= 36.6 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 30 June 2017 (Company No. 312552-W) 2
4. Deutsche Bank Consolidated Statements Of Changes In Equity For The Financial Period Ended 30 June 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 - 1,755,429 174,722 - - - Transfer pursuant to BNM revised policy * (174,722) Net profit/ Total comprehensive income for the period - - - 113,124 113,124 - 113,124 Dividend paid - - - (147,039) (147,039) - (147,039) --------------------------------------------------------------------------------------------------------------------------------173,599 357,763 13,558 1,176,594 1,547,915 1,721,514 ========================================================================== At 30 June 2017 At 1 January 2016 173,599 357,763 188,280 988,748 1,534,791 - 1,708,390 Net profit/ Total comprehensive income for the period - - - 97,542 97,542 - 97,542 Proposed Dividend - - - (100,000) (100,000) 100,000 - --------------------------------------------------------------------------------------------------------------------------------173,599 357,763 188,280 986,290 1,532,333 100,000 1,805,932 ========================================================================== At 30 June 2016 * Total RM’000 Bank Negara Malaysia (“BNM”) had on 3 May 2017 issued a revised policy document on Capital Funds (“Revised Policy Document”). This supersedes the guideline issued by BNM previously, namely Capital Funds dated 1 July 2013. The key changes in the Revised Policy Document are: (a) the removal of the requirement on maintenance of a reserve fund; and (b) the revised component of capital funds shall exclude share premium and reserve fund During the financial period ended 30 June 2017, the Group and the Bank has transferred RM174,722,000 from other reserves to its retained profits pursuant to the Revised Policy Document. 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 30 June 2017 (Company No. 312552-W) 3
5. Deutsche Bank Condensed Consolidated Statements Of Cash Flows For The Financial Period Ended 30 June 2017 Group and Bank 30 June 30 June 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 used in operations Cash flows from investing activities: Purchase of plant and equipment Proceeds from disposal of plant and equipment Net cash used in investing activities Cash flows from financing activities: Dividend paid Net cash used in financing activities Net 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 150,426 394 _________ 150,820 129,999 479 _________ 130,478 156,311 (1,163,425) (25,541) _________ (881,835) --------------- 1,193,568 (1,912,394) (24,542) _________ (612,890) --------------- (613) 100 _________ (513) --------------- (707) _________ (707) --------------- (147,039) _________ (147,039) --------------- _________ --------------- (1,029,387) 4,608,452 _________ 3,579,065 _________ (613,597) 5,856,232 _________ 5,242,635 _________ 3,579,065 _________ 5,242,635 _________ 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 30 June 2017 (Company No. 312552-W) 4
6. Deutsche Bank Explanatory Notes To The Interim Financial Statements For The Financial Period Ended 30 June 2017 1 . Basis of preparation The unaudited interim financial statements for the financial period ended 30 June 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 30 June 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 30 June 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 30 June 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 30 June 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 30 June 2017. 7. Dividend Paid Since the end of the previous financial year, the Bank paid the final dividend of 84.7 sen per ordinary share totalling RM147,039,000 in respect of the financial year ended 31 December 2016. The dividend was paid on 22 June 2017. 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 30 June 2017. 10. Review of Performance The Bank recorded profit before taxation for the financial period ended 30 June 2017 of RM150.4 million compared to RM130.0 million profit for the previous corresponding period. Operating income increased by RM14.9 million (+7.4%) from RM202.3 million to RM217.2 million, mainly attributed to net interest income increased by RM24.8 million (+42.8%) from RM58.0 million to RM82.8 million, primarily driven by higher interest income earned from loan and advances and financial assets held for trading. Non-interest income decreased by RM10.7 million (-7.5%) from RM143.8 million to RM133.1 million, mainly driven by lower net gain on financial assets held for trading. Total assets registered a decrease of RM1.2 billion or 10.1% from RM11.9 billion as at 31 December 2016 to RM10.7 billion as at 30 June 2017. The Bank’s total common equity tier 1 ratio and total capital ratio remained strong at 21.1% and 21.4%, respectively. Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 7
9. Deutsche Bank 11 . Prospects Global growth is projected to rise modestly throughout 2017 with signs of improvement seen in industrial production as well as pick up in investment and trade levels. US economy is expected to continues its steady expansion as headwinds from past appreciation of exchange rates subside whilst labour market tightens with stronger wage growth. Europe economy also echoes similar sentiment where it outperforms expectations in its economic indicators and showing signs of receding political uncertainty. On the local front, the Central Bank of Malaysia in its recent monetary policy meeting announced overnight policy rate to remain at 3.00%. The favourable global growth prospects is expected to lift the Malaysia export performance as well as domestic economy. Local economy is anticipated to continue on steady growth in 2017. The Bank remains competitive with the solid frameworks around capital and liquidity management, risk controls and enhanced internal processes. 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 communities which we operate and to create positive impact for our clients, investors, employees and society at large. 12. Financial assets held-for-trading Group and Bank 30 June 31 December 2017 2016 RM’000 RM’000 At fair value Malaysian Government Securities Malaysian Investment Issue Bank Negara Malaysia Bills Treasury Bills Cagamas bonds 13. 1,241,698 208,083 209 12,015 _________ 1,462,005 ========= 490,502 142,658 2,085 _________ 635,245 ========= Financial investments available-for-sale Group and Bank 30 June 31 December 2017 2016 RM’000 RM’000 At cost Unquoted shares 1,591 ======== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 8 1,591 ========
10. Deutsche Bank 14 . Loans, advances and financing Group and Bank 30 June 31 December 2017 2016 RM’000 RM’000 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 110,883 13,841 253,287 286,489 1,074,237 3,100 _________ 1,741,837 (26,446) _________ 1,715,391 130,457 15,059 228,226 677,220 871,013 3,356 _________ 1,925,331 (17,803) _________ 1,907,528 (13,892) (173) _________ 1,701,326 ========= (16,822) (178) _________ 1,890,528 ========= The maturity structure of gross loans, advances and financing are as follows: Group and Bank 30 June 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 1,679,136 23,036 1,521 11,698 _________ 1,715,391 ========= 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 30 June 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 356,428 1,018,910 36,864 16,941 286,248 _________ 1,715,391 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 9 2,546 229,504 874,918 109,782 18,415 672,363 _________ 1,907,528 =========
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 30 June 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 3,100 3,231 37,892 1,672,636 1,763 _________ 1,715,391 ========= 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 30 June 31 December 2017 2016 RM’000 RM’000 Malaysia China Singapore India Vietnam Turkey Others 1,429,143 15,632 85,459 22,290 154,909 7,958 _________ 1,715,391 ========= 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 30 June 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 2,226 324,596 79,852 199,028 410,150 645,734 36,864 16,941 _________ 1,715,391 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 10 2,748 339,073 72,004 205,397 242,332 917,777 109,782 18,415 _________ 1,907,528 =========
12. Deutsche Bank 14 . Loans, advances and financing (continued) Movements in impaired loans, advances and financing are as follows: Group and Bank 30 June 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 30 June 2017/ 31 December 2016 Gross impaired loans as a percentage of gross loans, advances and financing 2,634 263 (414) (249) ______ 2,234 ====== 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 30 June 31 December 2017 2016 RM’000 RM’000 Collective Assessment Allowance At 1 January Allowance (recovered)/ made during the period/ year At 30 June 2017/ 31 December 2016 16,822 (2,930) ______ 13,892 ====== 9,268 7,554 ______ 16,822 ====== Group and Bank 30 June 31 December 2017 2016 RM’000 RM’000 Individual Assessment Allowance At 1 January Allowance made during the period/ year Amount recovered At 30 June 2017/ 31 December 2016 178 7 (12) _____ 173 ===== 315 126 (263) _____ 178 ===== Impaired loans, advances and financing analysed by economic sector and geographical distribution are as follows: Group and Bank 30 June 31 December 2017 2016 RM’000 RM’000 Household (Malaysia) 2,234 ______ 2,234 ====== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 11 2,634 ______ 2,634 ======
13. Deutsche Bank 15 . Other assets Group and Bank 30 June 31 December 2017 2016 RM’000 RM’000 Interest / Income receivable Margin placed with exchange Derivatives Other debtors, deposits and prepayments 16. 22,504 4,047 1,589,490 1,104,514 ________ 2,720,555 ======== 7,928 21,761 2,778,605 1,041,571 ________ 3,849,865 ======== Deposits from customers Group 30 June Demand deposits Savings deposits Fixed deposits Other deposits Bank 31 December 30 June 31 December 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 3,916,405 2,439 314,150 200,633 _________ 4,433,627 ========= 3,907,414 3,136 115,040 259,550 _________ 4,285,140 ========= 3,916,425 2,439 314,150 200,633 _________ 4,433,647 ========= 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 30 June 31 December 2017 RM’000 2016 RM’000 300,961 113,780 250 99,792 ________ 514,783 ======== 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 30 June 31 December 30 June 31 December 2017 RM’000 2016 RM’000 2017 RM’000 2016 RM’000 3,546,986 3,564,977 22,016 25,728 96,107 109,666 768,518 584,769 _________ _________ 4,433,627 4,285,140 ========= ========= 3,547,006 22,016 96,107 768,518 _________ 4,433,647 ========= 3,564,997 25,728 109,666 584,769 _________ 4,285,160 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 12
14. Deutsche Bank 17 . Deposits and placements of banks and other financial institutions Group and Bank 31 December 2017 2016 RM’000 RM’000 30 June Other financial institutions 18. 1,057,010 _________ 1,057,010 ========= 1,441,194 _________ 1,441,194 ========= Other liabilities Group and Bank 31 December 2017 2016 RM’000 RM’000 30 June Interest payable Bills payable Derivatives Employee benefits Other liabilities 1,929 79,534 1,772,323 11,727 1,613,366 _________ 3,478,879 ========= Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 13 2,378 57,070 2,819,612 13,464 1,514,083 _________ 4,406,607 =========
15. Deutsche Bank 19 . Interest income Group and Bank Half year ended Three months ended 30 June 30 June 30 June 30 June 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 Others Of which: Interest income earned on impaired loans, advances and financing 34,894 25,843 16,974 12,865 57,737 6,470 20,830 10 _______ 119,941 ======= 53,536 3,608 13,327 _______ 96,314 ======= 29,093 4,114 10,971 10 _______ 61,162 ======= 29,491 2,342 5,840 _______ 50,538 ======= 66 ======= 83 ======= 32 ======= 40 ======= 20. Interest expense Group and Bank Half year ended Three months ended 30 June 30 June 30 June 30 June 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 5,237 5,959 2,396 1,902 31,909 ______ 37,146 ====== 56 32,345 ______ 38,360 ====== 16,015 ______ 18,411 ====== 45 15,567 ______ 17,514 ====== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 14
16. Deutsche Bank 21 . Non-interest income Group and Bank Half year ended Three months ended 30 June 30 June 30 June 30 June 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 7,710 14,769 1,964 _______ 24,443 ------------ 9,157 19,155 2,794 _______ 31,106 ------------ 2,900 7,378 1,165 _______ 11,443 ------------ 4,889 9,550 1,265 _______ 15,704 ------------ (1,430) (4,977) _______ (6,407) _______ 18,036 ------------ (3,318) (5,168) _______ (8,486) _______ 22,620 ------------ (393) (2,447) _______ (2,840) _______ 8,603 ------------ (2,611) (3,321) _______ (5,932) _______ 9,772 ------------ Net gains from financial instruments: Net gain arising on financial assets held for trading: Realised gain 10,400 Unrealised gain/ (loss) 521 16,917 1,582 Net (loss)/ gain arising on trading derivatives: Realised (loss)/ gain (72,095) Unrealised revaluation (loss)/ gain (145,095) (51,257) 78,611 (158,089) 29,697 97,552 (205,772) 1,395 (43) 9,222 567 Foreign exchange gain 314,744 66,077 169,095 175,417 Gross dividend income 45 45 45 45 100 - 100 - 6,402 _______ 115,022 -----------133,058 ======= 9,250 _______ 121,225 -----------143,845 ======= 2,468 _______ 44,668 -----------53,271 ======= 5,483 _______ 82,514 -----------92,286 ======= Gain from disposal of plant and equipment Other income: Other operating income, net Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 15
17. Deutsche Bank 22 . Other operating expenses Group and Bank Half year ended Three months ended 30 June 30 June 30 June 30 June 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 24,199 8,828 24,012 7,574 11,668 5,554 11,977 4,340 1,454 494 2,491 929 1,456 479 1,936 980 727 241 1,583 346 729 245 1,361 455 23,445 786 7,025 ______ 69,651 ====== 24,348 1,002 7,991 ______ 69,778 ====== 11,976 329 3,985 ______ 36,409 ====== 12,352 544 6,031 ______ 38,034 ====== The number of employees of the Group and the Bank at the end of the period was 228 (June 2016 - 227). 23. Allowance for impairment on loans, advances and financing Group and Bank Half year ended Three months ended 30 June 30 June 30 June 30 June 2017 2016 2017 2016 RM’000 RM’000 RM’000 RM’000 Individual assessment allowance - made during the period - written back (7) 12 Collective assessment allowance - recovered/ (made) during the period 2,930 ______ 2,935 ====== (16) 46 (2,505) ______ (2,475) ====== Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 16 (3) 2 292 ______ 291 ====== (8) 35 (3,321) ______ (3,294) ======
18. Deutsche Bank 24 . Credit transactions and exposures with connected parties Group and Bank 30 June 31 December 2017 2016 RM’000 RM’000 Outstanding credit exposures with connected parties 527,845 _________ 648,324 _________ - - 10,755,642 ========= Percentage of outstanding credit exposures to connected parties 10,928,832 ========= Of which: Total credit exposures which is non-performing Total credit exposures - as a proportion of total credit exposures - as a proportion of capital base which is non performing 4.91% 33.38% 0% 5.93% 37.45% 0% 25. Capital adequacy Group and Bank 30 June 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 173,599 357,763 1,063,470 (35,761) ________ 1,559,071 173,599 357,763 174,722 1,035,787 (35,761) ________ 1,706,110 8,723 13,558 ________ 1,581,352 ======== 11,351 13,558 ________ 1,731,019 ======== 21.105% 21.406% ======== 21.868% 22.187% ======== Total common equity tier 1(CET 1) / Total tier 1 capital 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 RM5,169,000 (31 December 2016 : RM5,471,000) Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 17
19. Deutsche Bank 25 . 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 1 2 3 Total Risk Weighted Assets 30 June 2017 RM’000 4,273,010 2,457,692 656,582 7,387,284 Credit risk Market risk Operational risk Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 18 31 December 2016 RM’000 4,617,845 2,570,452 613,663 7,801,960
20. Deutsche Bank 26 . Commitments and contingencies The Off-Balance Sheet exposures and their related counterparty credit risk of the Group and of the Bank are as follows: 30 June 2017 Group and Bank Credit Equivalent Amount RM’000 Risk Weighted Assets RM’000 714,843 357,422 336,477 167,289 33,458 29,869 11,029,400 200,839 174,310 1,020,778 63,328 63,328 310,475 34,152 17,076 Principal Amount RM’000 Direct Credit Substitutes Transaction Related Contingent Items Short Term Self Liquidating Trade Related Contingencies Foreign exchange related contracts One year or less Over one year to five years Over five years Interest/Profit rate related contracts One year or less Over one year to five years Over five years Equity related contracts One year or less Over one year to five years Over five years Credit Derivative Contracts One year or less Over one year to five years Over five years 292,830 1,365 1,092 1,298,763 158,015 148,415 602,709 50,628 47,934 - - - - - - OTC Derivative transactions and credit derivative contracts subject to valid bilateral netting agreements 95,178,357 2,053,482 369,078 Other commitments, such as formal standby facilities and credit lines, with an original maturity of over one year 515,739 257,869 257,869 Other commitments, such as formal standby facilities and credit lines, with an original maturity of up to one year 2,354,636 470,927 459,567 - - - 113,485,819 3,681,485 1,905,015 Any commitments that are unconditionally cancelled at any time by the bank without prior notice or that effectively provide for automatic cancellation due to deterioration in a borrower's creditworthiness Total Deutsche Bank (Malaysia) Berhad Unaudited Condensed Interim Financial Statements ended 30 June 2017 (Company No. 312552-W) 19