Kuwait Finance House (Malaysia) Berhad: Interim Report - 30 September 2017

Transcription

1. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Interim Report for the Period Ended 30 September 2017 Interim Condensed Statements of Financial Position Interim Condensed Consolidated Income Statements Interim Condensed Consolidated Statements of Comprehensive Income Interim Condensed Income Statements Interim Condensed Statements of Comprehensive Income Interim Condensed Statements of Changes in Equity Interim Condensed Statements of Cash Flows Selected Explanatory Notes to the Condensed Financial Statements Certification of Financial Statements 1 2 3 4 5 6 7 8 - 39 40
2. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED STATEMENTS OF FINANCIAL POSITION Note ASSETS Cash and short-term funds Deposits and placements with banks and other financial institutions Investment accounts due from designated financial institutions Hedging financial instruments Securities available-for-sale Securities held-to-maturity Financing, advances and other receivables Other assets Statutory deposits with Bank Negara Malaysia Musyarakah capital investment Investment in subsidiaries Property and equipment Intangible assets Deferred tax assets LIABILITIES Deposits from customers Investment accounts of customers Deposits and placements of banks and other financial institutions Hedging financial instruments Subordinated Murabahah Tawarruq Other liabilities SHAREHOLDER'S EQUITY Share capital Reserves Bank 30 Sep 2017 RM’000 31 Dec 2016 RM’000 900,548 2,341,840 900,548 2,341,840 A3 244,169 171,073 273,814 199,165 A11 A7 A4 A4 A5 A6 10,509 2,435 2,038,929 5,017 6,281,030 173,758 221,000 5,898 19,803 8,944 186,011 10,098,051 8,563 5,956 1,092,402 61,251 6,494,270 190,369 201,000 5,898 13,633 10,719 198,329 10,795,303 10,509 2,435 2,004,591 5,017 6,281,030 173,633 221,000 5,898 13,788 19,416 8,784 186,011 10,106,474 8,563 5,956 1,059,538 61,251 6,494,270 189,975 201,000 5,898 15,069 13,276 10,363 198,329 10,804,492 A9 A11 4,721,640 10,509 4,329,342 8,563 4,640,292 10,509 4,295,095 8,563 A10 A7 A13 A12 3,106,644 8,349 427,379 129,409 8,403,930 4,261,411 1,163 451,070 96,976 9,148,525 3,228,764 8,349 427,379 128,993 8,444,286 4,336,014 1,163 451,070 96,141 9,188,046 A14 1,425,272 268,849 1,694,121 1,425,272 221,506 1,646,778 1,425,272 236,916 1,662,188 1,425,272 191,175 1,616,447 10,098,051 10,795,303 10,106,474 10,804,493 1,040,517 895,885 1,040,517 895,885 A8 TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY COMMITMENTS AND CONTINGENCIES A20 CAPITAL ADEQUACY Common Equity Tier I/ Tier I Capital Ratio Total Capital Ratio A21 A21 NET ASSETS PER SHARE (RM) Group 30 Sep 2017 31 Dec 2016 RM’000 RM’000 21.102% 28.402% 1.19 20.275% 27.722% 1.16 20.362% 27.690% 1.17 19.505% 26.979% 1.13 These condensed consolidated statements of financial position should be read in conjunction with the accompanying explanatory notes attached to these interim financial statements. 1
3. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED CONSOLIDATED INCOME STATEMENTS Group Note 3rd Quarter ended 30-Sep 2017 2016 RM'000 RM'000 Continuing operations Operating revenue Nine-months ended 30-Sep 2017 2016 RM'000 RM'000 117,817 121,052 363,045 373,073 98,497 95,726 293,560 303,844 Income derived from investment of depositors' funds and others Income derived from investment of investment account funds Income derived from investment of shareholder's equity A15 A19 77 70 229 191 A16 19,243 25,256 69,256 69,037 Total gross income 117,817 121,052 363,045 373,072 Impairment write-back on others - - - 45 Impairment write-back/(loss) on securities - - Impairment (charge)/write-back on financing A17 15,087 Total distributable income Income attributable to the depositors A18 Profit distributed to investment account holders A19 Total net income (61,143) (9,365) 44,087 (37,092) 132,904 59,909 397,767 336,025 (65,370) (59,870) (191,348) (202,159) (46) (42) 67,489 (3) (136) (114) 206,282 133,752 Personnel expenses (22,870) (19,810) (65,332) (60,845) Other overheads and expenditures (20,212) (20,757) (62,858) (62,781) Finance cost (8,980) (2,602) (24,945) (8,803) Profit before zakat and taxation 15,426 (43,172) 53,147 1,323 Taxation Net profit for the period (1,610) 13,817 14,768 (28,404) (12,034) 41,113 (15) 1,308 Attributable to: Equity holders of the Bank 13,817 (28,404) 41,113 1,308 0.97 (1.99) 2.88 0.09 Earnings per share attributable to equity holders of the Bank - Basic/Diluted (sen) These condensed consolidated statements of comprehensive income should be read in conjunction with the accompanying explanatory notes attached to these interim financial statements. 2
4. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Group Net profit for the period 3rd Quarter ended 30-Sep 2017 2016 RM'000 RM'000 13,817 Nine-months ended 30-Sep 2017 2016 RM'000 RM'000 (28,404) 41,113 1,308 5,673 6,968 31,185 Other comprehensive income/(loss): Items that may be reclassified subsequenty to profit or loss: Securities available-for-sale: - Net unrealised gain/(loss) on securities available-for-sale 869 - Net realised (loss)/gain on securities available-for-sale reclassified to the income statement 2,343 (195) 2,339 (197) Exchange differences on translation of foreign operations: Net income/(loss) taken to equity (1,967) 1,112 (2,543) (1,325) Income tax relating to components of other comprehensive (loss)/income (216) Other comprehensive income/(loss) for the period, net of tax Total comprehensive income for the period (1,370) (533) (7,747) 1,030 5,220 6,231 21,916 14,847 (23,184) 47,344 23,224 14,847 (23,184) 47,344 23,224 Total comprehensive income for the period attributable to equity holders of the Bank These condensed consolidated statements of comprehensive income should be read in conjunction with the accompanying explanatory notes attached to these interim financial statements. 3
5. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED INCOME STATEMENTS Bank Note Continuing operations Operating revenue 3rd Quarter ended 30-Sep 2017 2016 RM'000 RM'000 Nine-months ended 30-Sep 2017 2016 RM'000 RM'000 117,675 118,340 358,218 365,567 98,583 95,849 293,815 303,618 Income derived from investment of depositors' funds and others Income derived from investment of investment account funds Income derived from investment of shareholder's equity A15 A19 77 70 229 191 A16 19,016 22,421 64,174 61,758 117,676 118,340 358,218 365,567 Total gross income Impairment write-back on others (119) Impairment write-back/(loss) on securities Impairment write-back on financing A17 Total distributable income - (1,281) - (9,365) - 15,087 (61,143) 44,087 (37,092) 132,644 57,197 391,659 328,520 (202,738) Income attributable to the depositors A18 (65,688) (60,086) (192,092) Profit distributed to investment account holders A19 (46) (42) (136) Total net income 45 (114) 66,909 (2,931) 199,431 125,668 Personnel expenses (22,675) (19,037) (63,742) (58,510) Other overheads and expenditures (19,932) (20,208) (61,589) (60,929) Finance cost (8,980) (2,602) (24,945) (8,803) Profit before zakat and taxation 15,322 (44,778) 49,155 (2,574) Taxation Net profit for the period (1,605) 13,718 14,771 (30,007) (12,019) 37,136 (2,574) These condensed consolidated statements of comprehensive income should be read in conjunction with the accompanying explanatory notes attached to these interim financial statements. 4
6. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED INCOME STATEMENTS KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED STATEMENTS OF COMPREHENSIVE INCOME 3rd Quarter ended 30-Sep 2017 2016 RM'000 RM'000 Bank Net profit for the period Nine-months ended 30-Sep 2017 2016 RM'000 RM'000 13,718 (30,007) 37,136 (2,574) 552 6,094 6,582 30,630 2,343 (520) 2,339 - (1,394) 2,895 4,180 8,604 22,582 16,613 (25,827) 45,740 20,009 Other comprehensive income/(loss): Securities available-for-sale: - Net unrealised gain/(loss) on securities available-for-sale - Net realised (loss)/gain on securities available-for-sale reclassified to the income statement (520) Income tax relating to components of other comprehensive (loss)/income Other comprehensive income/(loss) for the period, net of tax Total comprehensive income for the period (317) (7,527) These condensed consolidated statements of comprehensive income should be read in conjunction with the accompanying explanatory notes attached to these interim financial statements. 5
7. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED STATEMENTS OF CHANGES IN EQUITY Non-distributable Share Capital RM’000 Statutory Reserve RM’000 Translation Reserve RM’000 Group At 1 Jan 2017 Total comprehensive (loss)/income At 30 Sep 2017 1,425,272 1,425,272 158,385 158,385 7,090 (2,544) 4,546 At 1 Jan 2016 Total comprehensive (loss)/income At 30 Sep 2016 1,425,272 1,425,272 158,385 158,385 4,702 (1,325) 3,377 Bank At 1 Jan 2017 Total comprehensive income At 30 Sep 2017 1,425,272 1,425,272 158,385 158,385 At 1 Jan 2016 Total comprehensive (loss)/income At 30 Sep 2016 1,425,272 1,425,272 158,385 158,385 Distributable Availablefor-sale Reserve RM’000 Retained Earnings RM’000 Total Equity RM’000 (9,254) 8,774 (480) 65,285 41,113 106,398 1,646,778 47,343 1,694,121 (14,450) 23,241 8,791 93,562 1,308 94,870 1,667,471 46,408 1,713,879 - (9,000) 8,604 (396) 41,790 37,136 78,926 1,616,447 45,740 1,662,187 - (13,918) 22,583 8,665 71,500 (2,574) 68,926 1,641,239 45,835 1,687,074 These condensed consolidated statements of changes in equity should be read in conjunction with the accompanying explanatory notes attached to these interim financial statements. 6
8. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) INTERIM CONDENSED STATEMENTS OF CASH FLOWS Group 30-Sep 2017 RM'000 53,147 231 53,378 Profit before zakat and taxation Adjustments for non-cash items Operating profit before changes in working capital 30-Sep 2016 RM'000 44,493 (6,317) 38,176 Bank 30-Sep 2017 RM'000 49,155 1,396 50,550 30-Sep 2016 RM'000 42,204 (6,475) 35,728 Changes in the working capital Net changes in operating assets Net changes in operating liabilities Zakat and taxation refund/(paid) Net cash generated from operating activities 187,208 (782,368) (20) (595,180) 138,315 (221,134) (20) (82,839) 185,382 (774,474) (589,092) 139,300 (192,721) (53,421) Net purchases of assets Net cash used in investing activities (904,036) (904,036) (106,791) (106,791) (902,750) (902,750) (131,496) (131,496) (1,445,838) 2,341,840 (151,454) 1,558,023 (1,441,292) 2,341,840 (149,189) 1,558,023 Net change in cash and cash equivalents Cash and cash equivalents at beginning of the period Exchange differences on translation of opening balances Cash and cash equivalents at end of the period 4,546 900,548 2,266 1,408,834 900,548 1,408,834 These condensed consolidated statements of cash flows should be read in conjunction with the accompanying explanatory notes attached to these interim financial statements. 7
9. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A1 Performance Review The Group recorded profit before zakat and taxation of RM53.1 million and the Bank recorded profit before zakat and taxation of RM49.2 million for the period ended 30 September 2017. A2 OUTLOOK FOR 2017 The Malaysian economy is expected to expand above 4.8% in 2017 (2016: 4.2%), underpinned by domestic demand. Gross domestic product (GDP) grew 5.8% in the Q2, faster than the 5.6% expansion seen in the Q1 2017 which indicated a strong growth momentum as it grows at the fastest pace in more than two years. Malaysia's accommodative monetary and fiscal policies in 2017 will help to support private consumption, which will remain the key driver of GDP growth throughout the year. The headline inflation is expected to range between 3.0% to 4.0% in 2017. A3 Deposits and Placements with Banks and Other Financial Institutions Other financial institutions Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 244,169 171,073 244,169 171,073 8 Bank 30 Sep 2017 RM'000 273,814 273,814 31 Dec 2016 RM'000 199,165 199,165
10. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A4 Securities i) Securities Available-For-Sale Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Bank 30 Sep 2017 RM'000 31 Dec 2016 RM'000 At fair value Unquoted securities - Islamic private debt securities/sukuks - Government guaranteed sukuk At cost Unquoted shares in Malaysia Property funds Collective Investment Scheme ii) 387,359 1,583,796 444,691 573,686 374,698 1,583,796 431,467 573,686 1,971,155 1,018,377 1,958,494 1,005,153 36,100 21,676 9,998 67,774 36,100 19,640 18,285 74,025 36,100 9,997 46,097 36,100 18,285 54,385 2,038,929 1,092,402 2,004,591 1,059,538 Securities Held-To-Maturity Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 At amortised cost Unquoted Islamic private debt securities/sukuk 5,017 61,251 9 Bank 30 Sep 2017 RM'000 5,017 31 Dec 2016 RM'000 61,251
11. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A5 Financing, Advances and Other Receivables i) At amortised cost Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Term financing House financing Personal financing Leasing financing Syndicated financing Cashline financing Hire purchase receivables Other term financing Staff financing Less: Impairment allowances on financing Collective assessment Individual assessment Net financing, advances and other receivables ii) By contract 876,003 1,171,285 28,557 294,248 11,049 640,960 3,575,017 13,466 762,988 1,212,692 50,117 331,139 6,053 541,130 3,947,680 11,578 6,610,585 6,863,378 (143,621) (185,934) 6,281,030 (139,421) (229,687) 6,494,270 Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Ijarah Muntahia Bittamlik (lease ended with ownership) Murabahah (cost-plus) Mudharabah (profit sharing) Qard (benevolent financing) Musyarakah (profit and loss sharing) Istisna' 2,232,450 4,088,595 63,812 1,249 223,193 1,286 6,610,585 2,053,752 4,499,057 71,378 1,043 236,813 1,335 6,863,378 Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 iii) By type of customer Domestic business enterprises Individuals Other domestic entities Foreign entities Government Domestic non-bank financial institutions 3,879,738 2,720,130 6,673 4,044 6,610,585 10 4,210,604 2,533,727 14,299 104,748 104,748 6,863,378
12. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A5 Financing, Advances and Other Receivables (cont'd.) Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 (iv) By residual contractual maturity 2,947,467 274,654 318,193 3,070,271 6,610,585 Maturity within one year More than one year to three years More than three years to five years More than five years 3,879,579 225,908 139,689 2,618,202 6,863,378 Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 (v) By geographical distribution 6,593,092 4,877 12,616 6,610,585 Malaysia Middle East Other countries vi) By profit rate sensitivity 6,846,625 5,170 11,583 6,863,378 Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Fixed rate - House financing - Hire purchase receivables - Syndicated financing - Term financing Variable rate - House financing - Term financing 7,825 640,960 294,248 1,605,473 7,550 541,130 331,139 1,593,095 873,408 3,188,671 6,610,585 760,197 3,630,267 6,863,378 Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 vii) By economic purpose Purchase of securities Purchase of transport vehicles Purchase of landed properties residential non-residential Purchase of fixed assets Working capital Construction Personal use Other purposes 11 185,731 644,713 219,242 544,890 903,167 911,739 59,177 1,647,819 430,947 1,194,476 632,816 6,610,585 798,690 949,149 86,632 1,852,617 467,263 1,230,718 714,177 6,863,378
13. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A5 Financing, Advances and Other Receivables (cont'd.) viii) By sector Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 664,090 136,802 208,923 2,720,130 695,487 313,436 1,225,156 198,950 391,196 56,416 6,610,585 Construction Electricity, gas and water Finance, insurance and business services Household Manufacturing Agriculture, hunting, forestry & fishing Real Estate Transports, storage and communication Wholesale & retail trade and restaurants & hotels Others 616,724 157,686 321,489 2,533,727 794,955 336,615 1,317,458 238,021 477,180 69,523 6,863,378 (ix) Financing by types and Shariah contract Group and Bank 30 Sep 2017 Ijarah Muntahia Bittamlik/ Al-Ijarah Thumma Al-Bai'/ (lease ended with ownership) Murabahah (cost- Mudharabah (profit Musyarakah (profit plus) sharing) and loss sharing) Qard (benevolent financing) Istisna' Total RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 848,587 89 - 26,041 - 1,286 876,003 Personal financing - 1,170,761 - - 524 - 1,171,285 Leasing financing - 8,450 20,107 - - - 28,557 59,952 234,296 - - - - 294,248 House financing Syndicated financing Cashline financing - 11,049 - - - - 11,049 Hire purchase receivables 640,960 - - 0 - - 640,960 Other term financing 672,388 2,661,973 43,705 196,951 - - 3,575,017 10,563 1,976 - 201 725 - 13,465 2,232,450 4,088,595 63,812 223,193 1,249 1,286 6,610,585 Murabahah (cost- Mudharabah (profit Musyarakah (profit plus) sharing) and loss sharing) Qard (benevolent financing) Istisna' Total Staff financing Total 31 Dec 2016 Ijarah Muntahia Bittamlik/ Al-Ijarah Thumma Al-Bai'/ (lease ended with ownership) RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 RM’000 735,129 93 - 26,432 - 1,335 762,988 Personal financing - 1,212,205 - - 487 - 1,212,692 Leasing financing - 22,443 27,673 - - - 50,116 62,901 268,239 - - - - 331,140 House financing Syndicated financing Cashline financing - 6,053 - - - - 6,053 Hire purchase receivables 533,921 - - 7,209 - - 541,130 Other term financing 711,504 2,989,509 43,705 202,962 0 - 3,947,680 10,297 515 - 210 556 - 11,578 2,053,752 4,499,057 71,378 236,813 1,043 1,335 6,863,378 Staff financing Total 12
14. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A5 Financing, Advances and Other Receivables (cont'd.) Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 x) Purpose and Source of Qard financing As at 1 January Source of Qard fund: - Depositors' Fund - Shareholders' Fund Uses of Qard fund: - Financing for asset purchase - Staff Benevolent Closing balance xi) Movements in impaired financing, advances and other receivables 1,043 1,301 1,084 217 1,147 1,104 915 189 (1,095) (913) (183) (1,208) (1,001) (207) 1,249 1,043 Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 At 1 Jan Impaired during the period/year - Impaired during the period/year - Reclassified to performing during the year - Amount recovered - Amount written off Closing balance Ratio of net impaired financing, advances and other receivables to gross financing, advances and other receivables less individual impairment 478,060 28,969 122,813 (3,289) (85,820) (4,735) 507,029 550,898 (72,838) 223,973 (7,316) (149,115) (140,380) 478,060 5.00% 3.74% xii) Movements in impairment allowance on financing, advances and other receivables Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Collective impairment At 1 Jan Allowance charged during the year Closing balance As % of total gross financing, advances and other receivables less individual impairment 139,421 92,212 4,200 47,208 143,621 139,421 2.24% 13 2.10%
15. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A5 Financing, Advances and Other Receivables (cont'd.) xii) Movements in impairment allowance on financing, advances and other receivables (cont'd.) Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Individual impairment At 1 Jan 229,687 320,664 Allowance reversed during the year - Allowance made - Allowance written-back (39,018) 26,173 (65,191) 49,403 151,157 (101,754) (4,735) (140,380) Amount written off Closing balance 185,934 229,687 xiii) Impaired financing by sector Group and Bank 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Electricity, gas and water Finance, insurance and business services Household Manufacturing Real Estate Transport, storage and communication Wholesale & retail trade and restaurants & hotels 79 167 61,043 159,621 281,444 4,676 507,029 14 79 9,337 46,392 191,926 217,688 7,209 5,429 478,060
16. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A6 Other Assets Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Deposits and prepayments Amount due from subsidiaries Amount due from other related parties Fee receivable Sundry debtors Commodity assets Tax recoverable Gold depository 9,489 (0) Bank 30 Sep 2017 RM'000 31 Dec 2016 RM'000 8,222 - 9,373 4 7,991 4 53,936 371 2,563 107,399 51,561 742 2,895 126,949 53,936 371 2,550 107,399 51,561 742 2,728 126,949 173,758 190,369 173,633 189,975 The amount due from holding company, subsidiaries and related parties are unsecured, profit-free and repayable on demand. A7 Hedging Financial Instruments Notional Amount RM’000 Fair Value Assets RM’000 Liabilities RM’000 Group and Bank At 30 Sep 2017 Forward foreign exchange related contracts Ijarah rental swap related contracts Total 454,852 144,688 599,540 124 2,311 2,435 8,310 39 8,349 At 31 Dec 2016 Forward foreign exchange related contracts Ijarah rental swap related contracts Total 85,225 199,152 284,377 994 4,962 5,956 1,113 50 1,163 A8 Musyarakah Capital Investment The Bank grants Musyarakah financing as part of the Bank's activities in accordance with the principles of Shariah. The equity participation that forms part of the financing structure is called Musyarakah capital investment which is caried at cost less any impairment loss. The Bank's participation in these entities involved is limited to safeguarding its interest under the Musyarakah financing. 15
17. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A9 Deposits from Customers (i) By type of deposit Non Mudharabah Demand deposits Gold deposits Wakalah deposits Savings deposits Murabahah (ii) By type of customer Business enterprises Individuals Subsidiaries Government and statutory bodies Other enterprises (iii) By contractual maturity Due within six months More than six months to one year More than one year to three years Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Bank 30 Sep 2017 RM'000 31 Dec 2016 RM'000 490,867 106,805 471 81,590 686,580 127,209 498 52,844 409,991 106,805 81,590 652,831 127,210 52,844 4,041,907 3,462,211 4,041,907 3,462,210 4,721,640 4,329,342 4,640,292 4,295,095 Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 1,597,574 316,014 2,249,627 558,424 4,721,640 1,760,948 385,418 1,249,020 933,956 4,329,342 Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 3,555,292 1,051,619 114,729 4,721,640 4,014,438 312,324 2,580 4,329,342 16 Bank 30 Sep 2017 RM'000 1,455,314 316,014 60,913 2,249,627 558,424 4,640,292 Bank 30 Sep 2017 RM'000 3,473,944 1,051,619 114,729 4,640,292 31 Dec 2016 RM'000 1,602,031 385,418 124,670 1,249,020 933,956 4,295,095 31 Dec 2016 RM'000 3,980,191 312,324 2,580 4,295,095
18. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A10 Deposits and Placements of Banks and Other Financial Institutions Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Murabahah Licensed Islamic banks Licensed investment banks Other financial institutions Bank 30 Sep 2017 RM'000 31 Dec 2016 RM'000 300,000 50,000 2,756,644 452,014 3,809,397 300,000 50,000 2,878,764 452,014 3,884,000 3,106,644 4,261,411 3,228,764 4,336,014 A11 INVESTMENT ACCOUNTS Group and Bank 30 Sep 2017 31 Dec 2016 RM’000 RM’000 As at 1 January 8,563 7,490 Net placement during the year 1,809 919 Income from investment 229 258 Profit distributed to mudarib (92) (104) As at 30 June / 31 December 10,509 8,563 Investment asset: Wadiah placement with BNM 10,509 8,563 Profit Sharing Ratio, Rate of Return and Performance Incentive Fee Investment account holder Average profit Average rate of sharing ratio return (%) (%) Unrestricted investment accounts: Less than 3 months 60 1.79 Group and Bank 30 Sep 2017 31 Dec 2016 RM’000 RM’000 1,420 2,789 4,529 8,459 1,245 630 8,563 10,509 Business enterprises Individuals Other enterprises 17
19. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A12 Other Liabilities Group 30 Sep 2017 31 Dec 2016 RM'000 RM'000 Sundry creditors Accrued restoration cost Undistributed charity funds (ii) Other provisions and accruals 95,868 5,820 3,731 23,990 129,409 53,041 5,857 7,377 30,701 96,976 Bank 30 Sep 2017 RM'000 95,765 5,713 3,731 23,784 128,993 31 Dec 2016 RM'000 53,006 5,750 7,377 30,008 96,141 (i) The amount due from holding company, subsidiaries and related parties are unsecured, profit-free and repayable on demand. Group and Bank 30 Sep 2017 31 Dec 2016 RM’000 RM’000 (ii) Sources and uses of charity funds: Sources of charity funds: Undistributed charity funds as at 1 January Penalty charges / (Reversal) on late payment Total sources of funds during the year 7,377 3,069 10,446 Uses of charity funds: Compensation of late payment charges Contribution to non profit organisations Aid to needy family Total uses of funds during the year (6,500) (190) (25) (6,715) Closing balance 3,731 5,587 1,946 7,533 (108) (48) (156) 7,377 A13 Subordinated Murabahah Tawarruq The principal of subordinated Murabahah Tawarruq is a facility agreement with the holding company of the Bank, Kuwait Finance House K.S.C. The facility with principal and profit amount of USD101,214,583 or equivalent RM427,378,578 (2016: USD100,550,495 or equivalent RM451,069,519) is unsecured effective from 31 May 2007 which extended until 23 September 2018 and forms part of the Bank's Tier-2 capital. A14 Share Capital Number of ordinary shares at RM1.00 each 30 Sep 2017 31 Dec 2016 Units'000 Units'000 Amount 30 Sep 2017 31 Dec 2016 RM’000 RM’000 Authorised: At 1 January/At closing balance 3,000,000 3,000,000 3,000,000 3,000,000 Issued and fully paid: At 1 January At 1 January/At closing balance 1,425,272 1,425,272 1,425,272 1,425,272 1,425,272 1,425,272 1,425,272 1,425,272 18
20. KUWAIT FINANCE HOUSE (MALAYSIA) BERHAD (672174-T) (Incorporated in Malaysia) Part A - Explanatory Notes Pursuant to Guidelines on Financial Reporting for Licensed Islamic Bank (BNM/GP8-i) Issued by Bank Negara Malaysia A15 Income derived from Investment of Depositors' Funds and Others 3rd Quarter ended 30-Sep 2017 2016 RM'000 RM'000 Nine-months ended 30-Sep 2017 2016 RM'000 RM'000 Group Finance income from financing, advances and other receivables 74,348 76,537 220,382 240,417 261 345 604 458 16,179 285 7,570 645 21 37,721 1,581 3 22,996 1,951 Money at call and deposits with financial institutions 6,043 6,111 25,198 28,448 Amortisation of premium less accretion of discounts Total finance income and hibah 97,117 (1,237) 95,880 91,208 (1,009) 90,200 285,506 (3,514) 281,992 294,273 (3,295) 290,979 79 1,396 93 2,553 232 1,697 1,107 2,553 Foreign exchange gain - Realised 530 2,100 7,621 6,695 Gain/(loss) on Ijarah rental swap obligation 612 780 2,018 2,510 98,497 95,726 293,560 303,844 74,468 76,643 220,766 240,584 262 346 605 459 16,155 286 0 7,496 646 21 37,631 1,583 3 22,517 1,952 6,085 97,256 (1,239) 96,018 6,155 91,285 (1,010) 90,275 25,348 285,955 (3,521) 282,434 28,580 294,096 (3,296) 290,800 Finance income from impaired financing Securities - Held-for-trading - Available-for-sale - Held-to-maturity Gain arising from sale of securities - Held-for-trading - Available-for-sale Bank Finance income from financing, advances and other receivables Finance income from impaired financing Securities - Held-for-trading - Available-for-sale - Held-to-maturity Money at call and deposits with financial institutions Amortisation of premium less accretion of discounts Total finance income and hibah Gain arising from sale of securities - Held-for-trading 79 94 233 1,108 Foreign exchange gain - Realised 474 2,090 7,427 6,590 Gain/(loss) on Ijarah rental swap obligation 613 781 2,021 2,511 98,583 95,849 293,815 303,618 19