Malayan Banking Berhad: Condensed Financial Statements - 30 September 2017

Transcription

1. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED INCOME STATEMENTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Group Interest income Interest expense Net interest income Income from Islamic Banking Scheme operations Net earned insurance premiums Other operating income Total operating income Net insurance benefits and claims incurred, net fee and commission expenses, change in expense liabilities and taxation of life and takaful fund Net operating income Overhead expenses Operating profit before impairment losses Allowances for impairment losses on loans, advances, financing and other debts, net (Allowances for)/writeback of impairment losses on financial investments, net Operating profit Share of profits in associates and joint ventures Profit before taxation and zakat Taxation and zakat Profit for the period Third Quarter Ended 30 September 30 September 2017 2016 Note RM'000 RM'000 A21 A22 5,561,718 (2,507,151) 3,054,567 5,193,244 (2,380,770) 2,812,474 16,497,280 (7,372,425) 9,124,855 15,653,220 (7,206,135) 8,447,085 A39a 1,254,359 1,008,968 3,664,643 3,023,891 A23 A25 1,307,437 1,523,961 7,140,324 1,018,401 1,730,846 6,570,689 3,817,128 4,506,220 21,112,846 3,251,584 4,985,326 19,707,886 A26 (1,215,295) 5,925,029 (2,913,772) 3,011,257 (1,113,124) 5,457,565 (2,699,863) 2,757,702 (3,823,898) 17,288,948 (8,511,256) 8,777,692 (3,512,600) 16,195,286 (7,943,775) 8,251,511 A28 (386,488) (370,254) (1,759,253) (2,217,005) A29 (23,095) 2,601,674 76,713 2,678,387 (601,928) 2,076,459 39,417 2,426,865 29,246 2,456,111 (592,495) 1,863,616 (28,825) 6,989,614 182,334 7,171,948 (1,626,158) 5,545,790 (173,484) 5,861,022 110,423 5,971,445 (1,457,626) 4,513,819 2,027,206 49,253 2,076,459 1,795,702 67,914 1,863,616 5,388,443 157,347 5,545,790 4,382,394 131,425 4,513,819 A27 B5 Attributable to: Equity holders of the Bank Non-controlling interests Earnings per share attributable to equity holders of the Bank Basic Fully diluted Cumulative 9 Months Ended 30 September 30 September 2017 2016 RM'000 RM'000 B13 19.86 sen 19.83 sen 17.97 sen 17.95 sen 52.05 sen 51.97 sen 44.45 sen 44.39 sen (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 1
2. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Group Third Quarter Ended 30 September 30 September 2017 2016 RM'000 RM'000 Profit for the period 2,076,459 1,863,616 Cumulative 9 Months Ended 30 September 30 September 2017 2016 RM'000 RM'000 5,545,790 4,513,819 Other comprehensive (loss)/income: Items that will not be reclassified subsequently to profit or loss: Defined benefit plan actuarial gain/(loss) Income tax effect Share of change in associates' reserve 2,145 (7) 2,138 (525) 128 (114) (511) 2,612 (42) 2,570 (14,260) 2,760 (58) (11,558) (21,179) 3,857 (412,728) (748) 22,127 (179,054) (587,725) 573,285 (139,513) 799,742 85 (28,172) 15 140,118 1,345,560 607,156 (147,100) (1,105,568) (748) 29,946 (226,870) (843,184) 1,874,210 (462,927) 12,222 (1,034) 75,708 43 (146,897) 1,351,325 (585,587) 1,345,049 Items that may be reclassified subsequently to profit or loss: Net (loss)/gain on financial investments available-for-sale Income tax effect Net (loss)/gain on foreign exchange translation Net (loss)/gain on cash flow hedge Net gain/(loss) on net investment hedge Net gain on revaluation reserve Share of change in associates' reserve Other comprehensive (loss)/income for the period, net of tax Total comprehensive income for the period 1,490,872 Other comprehensive (loss)/income for the period attributable to: Equity holders of the Bank Non-controlling interests (581,128) (4,459) (585,587) Total comprehensive income for the period attributable to: Equity holders of the Bank Non-controlling interests 1,446,078 44,794 1,490,872 3,208,665 1,331,005 14,044 1,345,049 3,126,707 81,958 3,208,665 (840,614) 4,705,176 (821,502) (19,112) (840,614) 4,566,941 138,235 4,705,176 1,339,767 5,853,586 1,312,995 26,772 1,339,767 5,695,389 158,197 5,853,586 (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 2
3. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED INCOME STATEMENTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Bank Third Quarter Ended 30 September 30 September 2017 2016 Note RM'000 RM'000 Cumulative 9 Months Ended 30 September 30 September 2017 2016 RM'000 RM'000 Interest income Interest expense Net interest income A21 A22 4,094,603 (1,848,259) 2,246,344 3,714,287 (1,771,483) 1,942,804 11,995,207 (5,402,867) 6,592,340 11,323,389 (5,388,739) 5,934,650 Dividends from subsidiaries and associates Other operating income A24 A25 773,156 1,060,763 1,833,919 4,080,263 (1,546,032) 2,534,231 611,236 968,863 1,580,099 3,522,903 (1,394,171) 2,128,732 1,888,754 2,751,810 4,640,564 11,232,904 (4,309,976) 6,922,928 2,345,067 3,077,076 5,422,143 11,356,793 (4,060,869) 7,295,924 (1,151,182) (1,228,119) 2,215 5,773,961 (861,635) 4,912,326 (139,976) 5,927,829 (851,479) 5,076,350 Net operating income Overhead expenses Operating profit before impairment losses (Allowances for)/writeback of impairment losses on loans, advances, financing and other debts, net Writeback of/(allowances for) impairment losses on financial investments, net Profit before taxation and zakat Taxation and zakat Profit for the period A27 A28 (215,762) A29 1,528 2,319,997 (329,741) 1,990,256 B5 28,114 42,500 2,199,346 (375,650) 1,823,696 (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 3
4. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Bank Third Quarter Ended 30 September 30 September 2017 2016 RM'000 RM'000 Profit for the period 1,990,256 1,823,696 Cumulative 9 Months Ended 30 September 30 September 2017 2016 RM'000 RM'000 4,912,326 5,076,350 Other comprehensive (loss)/income: Items that may be reclassified subsequently to profit or loss: Net gain on financial investments available-for-sale Income tax effect Net (loss)/gain on foreign exchange translation Other comprehensive (loss)/income for the period, net of tax Total comprehensive income for the period 8,983 (1,956) (72,175) 453,171 (108,804) 223,862 610,892 (145,684) (104,185) 1,540,519 (377,270) (60,635) (65,148) 568,229 361,023 1,102,614 2,391,925 5,273,349 6,178,964 1,925,108 (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 4
5. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2017 Group Bank 30 September 31 December 30 September 31 December 2017 2016 2017 2016 RM'000 RM'000 RM'000 RM'000 Note ASSETS Cash and short-term funds Deposits and placements with financial institutions Financial assets purchased under resale agreements Financial assets at fair value through profit or loss Financial investments available-for-sale Financial investments held-to-maturity Loans, advances and financing Derivative assets Reinsurance/retakaful assets and other insurance receivables Other assets Investment properties Statutory deposits with central banks Investment in subsidiaries Interest in associates and joint ventures Property, plant and equipment Intangible assets Deferred tax assets TOTAL ASSETS 54,348,951 58,140,545 35,503,138 38,350,931 14,265,544 13,444,630 18,381,767 19,339,287 7,521,196 2,492,412 6,122,129 2,213,113 A10(i) A10(ii) A10(iii) A11 A36 28,802,453 113,775,796 17,644,977 477,185,038 6,880,116 23,496,050 92,384,834 15,021,597 477,774,903 8,311,703 12,139,713 91,625,795 14,282,542 290,241,617 7,018,851 7,980,314 74,904,201 12,582,311 295,020,136 8,320,918 A12 A13 3,830,954 13,130,138 803,816 14,590,007 3,064,410 2,429,526 6,964,749 768,582 766,006,253 4,139,596 10,525,560 758,488 15,384,134 3,210,436 2,595,497 7,345,524 930,344 735,956,253 8,273,890 7,085,722 22,057,063 472,016 1,210,044 553,140 223,626 515,191,053 5,603,512 7,530,325 21,586,547 451,518 1,290,761 530,049 358,687 496,062,610 A14 A39g 490,371,971 26,804,988 485,523,920 31,544,587 325,337,364 - 331,878,295 - A15 48,760,264 30,854,693 45,079,685 29,856,710 A36 4,379,186 7,422,103 2,957,951 8,828,060 4,349,792 7,343,973 2,957,951 8,802,221 A16 6,483,748 1,917,017 3,587,230 1,808,066 5,581,860 1,536,674 2,685,139 1,000,777 A18 A19 24,771,360 23,025,001 23,948,719 17,288,306 17,702,414 12,498,698 1,533,928 466,991 779,572 36,737,796 12,191,572 6,229,914 691,875,411 974,588 419,729 777,826 34,867,056 15,900,706 6,199,993 665,481,430 1,533,928 210,548 29,505,906 9,515,869 6,229,914 453,927,927 974,588 47,374 28,927,427 13,202,872 6,225,926 439,057,978 LIABILITIES Customers funding: - Deposits from customers - Investment accounts of customers 1 Deposits and placements from financial institutions Obligations on financial assets sold under repurchase agreements Derivative liabilities Financial liabilities at fair value through profit or loss Bills and acceptances payable Insurance/takaful contract liabilities and other insurance payables Other liabilities Recourse obligation on loans and financing sold to Cagamas Provision for taxation and zakat Deferred tax liabilities Borrowings Subordinated obligations Capital securities TOTAL LIABILITIES 1 A17(i) A17(ii) A17(iii) Investment accounts of customers are used to fund financing and advances as disclosed in Note A39g. 5
6. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2017 Group Bank 30 September 31 December 30 September 31 December 2017 2016 2017 2016 RM'000 RM'000 RM'000 RM'000 Note EQUITY ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK Share capital Share premium Shares held-in-trust Retained profits Reserves 42,519,223 (179,570) 24,625,951 5,102,213 72,067,817 2,063,025 74,130,842 Non-controlling interests TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY COMMITMENTS AND CONTINGENCIES A34 CAPITAL ADEQUACY A35 10,193,200 28,878,703 (125,309) 14,408,695 15,160,442 68,515,731 1,959,092 70,474,823 42,519,223 (179,570) 13,793,496 5,129,977 61,263,126 61,263,126 10,193,200 28,878,703 (125,309) 4,456,832 13,601,206 57,004,632 57,004,632 766,006,253 735,956,253 515,191,053 496,062,610 902,755,112 766,438,609 852,065,111 721,129,524 The capital adequacy ratios of the Group and of the Bank are as follows: CET1 Capital Ratio Tier 1 Capital Ratio Total Capital Ratio Net assets per share attributable to equity holders of the Bank 13.447% 15.080% 17.974% 13.990% 15.664% 19.293% 14.207% 16.538% 17.971% 15.881% 18.232% 19.432% RM6.80 RM6.72 RM5.78 RM5.59 (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 6
7. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 <========================================== Attributable to equity holders of the Bank =======================================> <============================= Non-Distributable =====================================> Group At 1 January 2017 Profit for the period Other comprehensive income/(loss) Defined benefit plan actuarial gain Share of associates' reserve Net loss on foreign exchange translation Net gain/(loss) on financial investments available-for-sale Net gain on net investment hedge Net loss on cash flow hedge Total comprehensive income/(loss) for the period Carried forward Share Capital RM'000 Share Shares Premium Held-in-trust RM'000 RM'000 10,193,200 28,878,703 - - - (125,309) Statutory Regulatory Reserve Reserve RM'000 RM'000 Availablefor-sale Reserve RM'000 Exchange Fluctuation Reserve RM'000 ESS Reserve RM'000 Other Reserves RM'000 (269,131) 3,592,057 320,912 (476,340) - - 10,934,947 1,057,997 - - - - - - - - 458,634 - - - - - - - - - - - - - - - - - - - - - - 470,140 - - - - - - - - - - - - 10,193,200 28,878,703 (125,309) 1 Total Non2 Retained Shareholders' Controlling Profits Equity Interests RM'000 RM'000 RM'000 Total Equity RM'000 14,408,695 68,515,731 1,959,092 70,474,823 - 5,388,443 5,388,443 157,347 5,545,790 - 31,583 - - 2,385 - (215,364) - - - (226,870) (1,096,355) - - - (1,096,355) - - - - 470,140 - - - 29,946 - 29,946 - - - - - - 458,634 (1,311,719) 10,934,947 1,057,997 189,503 2,280,338 (11,506) 7 (1,311,719) - 320,912 (748) - (821,502) 2,385 (748) (19,112) 185 (9,213) (10,084) - (840,614) 2,570 (226,870) (1,105,568) 460,056 29,946 (748) 31,583 5,388,443 4,566,941 138,235 4,705,176 (444,757) 19,797,138 73,082,672 2,097,327 75,179,999
8. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 <========================================== Attributable to equity holders of the Bank =======================================> <============================= Non-Distributable =====================================> Group (cont'd.) Brought forward Share-based payment under Employees' Share Scheme ("ESS") Effect of changes in corporate structure within the Group Effect of net acquisition from/disposal to non-controlling interests Transfer to share capital (Note A8(i)(a)(A)) Transfer from statutory reserves Transfer to regulatory reserve Issue of shares pursuant to ESS (Note A8(i)(a)(B)) Issue of shares pursuant to Restricted Share Unit ("RSU") (Note A8(i)(a)(C)) Issue of shares pursuant to Supplemental Restricted Share Unit ("SRSU") (Note A8(i)(a)(D)) Issue of shares pursuant to ESOS Trust Fund ("ETF") Pool (Note A8(i)(a)(E)) Issue of shares pursuant to Dividend Reinvestment Plan ("DRP") (Note A8(i)(a)(F)) Dividends (Note A9(a) & (c)) Dividends payable (Note A9(b) & (c)) Disposal of investment properties Total transactions with shareholders/ other equity movements At 30 September 2017 Share Capital RM'000 Share Shares Premium Held-in-trust RM'000 RM'000 10,193,200 28,878,703 - - - - 28,878,703 - (28,878,703) - (125,309) Statutory Regulatory Reserve Reserve RM'000 RM'000 Availablefor-sale Reserve RM'000 Exchange Fluctuation Reserve RM'000 ESS Reserve RM'000 Other Reserves RM'000 (444,757) 1 10,934,947 1,057,997 189,503 2,280,338 320,912 - - - - - 14,053 - - - - - 1,595,587 - - - - - - (80,074) - - - - - (32,848) - - - - - (920) - - 73,082,672 2,097,327 75,179,999 - - 14,053 - 14,053 - - - - (1,353) (1,353) - - - 67,692 - 67,692 - 1,268,785 - 1,268,785 (5,091) - - - (15) - - - - - - - 38,118 - 935 - 49,999 - (49,999) - - - - - 2,009,409 - - (4,083) - - - - - - 1,595,587 - - 2,653,584 189,503 2,280,338 42,519,223 (28,878,703) - (179) - (54,261) (179,570) (10,732,291) 202,656 Total Equity RM'000 19,797,138 1,348,859 32,326,023 - (10,732,291) - Total Non2 Retained Shareholders' Controlling Profits Equity Interests RM'000 RM'000 RM'000 (99,789) 221,123 - 10,732,291 (1,595,587) - - (234) (3,276,785) (1,026,234) 234 2,005,326 (3,276,785) (1,026,234) - (69,753) (30,888) - 2,005,326 (3,346,538) (1,057,122) - (234) 4,828,813 (1,014,855) (34,302) (1,049,157) (444,991) 24,625,951 72,067,817 2,063,025 74,130,842 1 The further breakdown and movement of other reserves are disclosed in Note A20. 2 The retained profits of the Group include the non-distributable non-par surplus from an insurance subsidiary amounted to RM1,298.6 million (net of tax). This non-distributable non-par surplus is only available for distribution to shareholder on the amount recommended by the Appointed Actuary in accordance with the Financial Services Act 2013. (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 8
9. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 <========================================== Attributable to equity holders of the Bank =======================================> <============================= Non-Distributable ======================================> Group At 1 January 2016 Profit for the period Other comprehensive income/(loss) Defined benefit plan actuarial loss Share of associates' reserve Net gain/(loss) on foreign exchange translation Net gain on financial investments available-for-sale Net gain on net investment hedge Net loss on cash flow hedge Net gain on revaluation reserve Total comprehensive income/(loss) for the period Carried forward Share Capital RM'000 Share Shares Premium Held-in-trust RM'000 RM'000 9,761,751 25,900,476 - - - (119,745) Statutory Regulatory Reserve Reserve RM'000 RM'000 Availablefor-sale Reserve RM'000 Exchange Fluctuation Reserve RM'000 ESS Reserve RM'000 Other Reserves RM'000 (503,048) 2,245,044 329,523 (455,986) - - 10,456,462 1,247,509 - - - - - - - - 1,401,773 - - - - - - - - - - - 18,563 - - - - - - - - - - - - - - - 1 Total Non2 Retained Shareholders' Controlling Profits Equity Interests RM'000 RM'000 RM'000 Total Equity RM'000 12,833,004 61,694,990 1,818,467 63,513,457 - 4,382,394 4,382,394 131,425 4,513,819 - 63,913 - 1,312,995 26,772 1,339,767 - (10,746) - (10,746) (165,460) - (58) - (146,955) - 12,769 - - - 12,769 - 1,383,210 - - - - 1,383,210 28,073 1,411,283 - - - - - 75,708 - 75,708 - 75,708 - - - - - - (1,034) - (1,034) - (1,034) - - - - - - - 43 - 43 - 43 - - - - - 1,401,773 - 63,913 4,382,394 5,695,389 158,197 5,853,586 9,761,751 25,900,476 10,456,462 1,247,509 898,725 (392,073) 17,215,398 67,390,379 1,976,664 69,367,043 (119,745) 9 (152,691) - (152,691) 2,092,353 329,523 (754) (547) (11,500) (146,955) 12,222
10. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 <========================================== Attributable to equity holders of the Bank =======================================> <============================= Non-Distributable =====================================> Group (cont'd.) Brought forward Share-based payment under Employees' Share Scheme ("ESS") Effect of changes in corporate structure within the Group Transfer to statutory reserves Transfer from regulatory reserve Issue of shares pursuant to ESS Issue of shares pursuant to Restricted Share Unit ("RSU") Issue of shares pursuant to Supplemental Restricted Share Unit ("SRSU") Issue of shares pursuant to Dividend Reinvestment Plan ("DRP") Dividends paid Dividends payable Total transactions with shareholders/ other equity movements At 30 September 2016 Share Capital RM'000 Share Shares Premium Held-in-trust RM'000 RM'000 9,761,751 25,900,476 - - - (119,745) Statutory Regulatory Reserve Reserve RM'000 RM'000 Availablefor-sale Reserve RM'000 Exchange Fluctuation Reserve RM'000 ESS Reserve RM'000 Other Reserves RM'000 (392,073) 1 Total Non2 Retained Shareholders' Controlling Profits Equity Interests RM'000 RM'000 RM'000 Total Equity RM'000 10,456,462 1,247,509 898,725 2,092,353 329,523 - - - - - 16,149 - - 476,973 - - - - 8,598 70,937 - - - - - (4,707) - 3,156 25,687 - - - - (29,662) - 184 1,444 - - - - (1,613) - (15) 235,139 - 1,728,273 - (3,303) - - - - - - (2,927,948) (814,484) 1,960,109 (2,927,948) (814,484) (94,582) - 1,960,109 (3,022,530) (814,484) 247,077 1,826,341 (3,557) 476,973 - - - (3,707,423) (1,678,286) (81,701) (1,759,987) 10,008,828 27,726,817 (123,302) 10,933,435 898,725 2,092,353 13,507,975 65,712,093 (254) - (497,864) (497,864) 749,645 (19,833) 309,690 17,215,398 67,390,379 1,976,664 69,367,043 - 13,060 29,209 - 29,209 - (476,973) 497,864 - 12,881 - 12,881 - - 74,828 - 74,828 1,073 - - - - - - (392,073) 1,894,963 67,607,056 1 The further breakdown and movement of other reserves are disclosed in Note A20. 2 The retained profits of the Group include the non-distributable non-par surplus from an insurance subsidiary amounted to RM1,128.5 million (net of tax). This non-distributable non-par surplus is only available for distribution to shareholder on the amount recommended by the Appointed Actuary in accordance with the Financial Services Act 2013. (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 10
11. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Bank At 1 January 2017 <================================ Attributable to equity holders of the Bank =================================> <=========================== Non-Distributable ================================> AvailableExchange Distributable Share Share Shares Statutory Regulatory for-sale Fluctuation ESS Retained Capital Premium Held-in-trust Reserve Reserve Reserve Reserve Reserve Profits RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 10,193,200 28,878,703 Profit for the period Other comprehensive income/(loss) - - Net loss on foreign exchange translation Net gain on financial investments available-for-sale - Total comprehensive income/(loss) for the period Share-based payment under Employees' Share Scheme ("ESS") Transfer from statutory reserve Transfer to regulatory reserve Transfer to share capital (Note A8(i)(a)(A)) Issue of shares pursuant to ESS (Note A8(i)(a)(B)) Issue of shares pursuant to Restricted Share Unit ("RSU") (Note A8(i)(a)(C)) Issue of shares pursuant to Supplemental Restricted Share Unit ("SRSU") (Note A8(i)(a)(D)) Issue of shares pursuant to ESOS Trust Fund ("ETF") Pool (Note A8(i)(a)(E)) Issue of shares pursuant to Dividend Reinvestment Plan ("DRP") (Note A8(i)(a)(F)) Dividends (Note A9(a)) Dividends payable (Note A9(b)) Total transactions with shareholders/ other equity movements At 30 September 2017 10,325,216 660,800 - - - 465,208 - - - - - - - - - - 465,208 - - - - - 465,208 1,546,616 - - - 14,053 - - - - - (80,074) - - - - (32,848) (5,091) - - - - - (920) (15) - 28,878,703 (28,878,703) (125,309) - 2,747,423 320,912 4,456,832 57,004,632 (104,185) - 4,912,326 - 4,912,326 361,023 (104,185) - - (104,185) - - 465,208 - 4,912,326 5,273,349 (104,185) 1,348,859 - 38,118 - 935 - 49,999 - (49,999) - - - - - 2,009,409 - - (4,083) - - - - - - 1,546,616 - - 2,207,416 12,063 2,643,238 32,326,023 42,519,223 (28,878,703) - - (10,279,079) - (453,145) Total Equity RM'000 (179) - (54,261) (179,570) (10,279,079) 46,137 10,279,079 (1,546,616) - - 14,053 1,268,785 - (3,276,785) (1,026,234) 2,005,326 (3,276,785) (1,026,234) (99,789) 4,424,338 (1,014,855) 221,123 13,793,496 61,263,126 (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 11
12. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Bank <============================= Attributable to equity holders of the Bank =================================> <=========================== Non-Distributable =================================> AvailableExchange Distributable Share Share Shares Statutory Regulatory for-sale Fluctuation ESS Retained Capital Premium Held-in-trust Reserve Reserve Reserve Reserve Reserve Profits RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 At 1 January 2016 9,761,751 25,900,476 Profit for the period Other comprehensive income/(loss) - - Net loss on foreign exchange translation Net gain on financial investments available-for-sale - Total comprehensive income/(loss) for the period Share-based payment under Employees' Share Scheme ("ESS") Transfer to statutory reserve Transfer from regulatory reserve Issue of shares pursuant to ESS Issue of shares pursuant to Restricted Share Unit ("RSU") Issue of shares pursuant to Supplemental Restricted Share Unit ("SRSU") Issue of shares pursuant to Dividend Reinvestment Plan ("DRP") Dividends Dividends payable Total transactions with shareholders/ other equity movements At 30 September 2016 (119,745) 9,866,550 813,800 - - - 1,163,249 - - - - - - - - - - 1,163,249 - - - - - 1,163,249 8,598 70,937 - 458,590 - 3,156 25,687 184 1,444 235,139 - 1,728,273 - 247,077 10,008,828 (254) (292,000) - (600,664) 2,414,054 329,523 3,252,638 51,618,383 (60,635) - 5,076,350 - 5,076,350 1,102,614 (60,635) - - - - 1,163,249 - 5,076,350 6,178,964 (60,635) - - 16,149 (4,707) - - - - (29,662) - - - - (1,613) (3,303) - - - - - 1,826,341 (3,557) 458,590 - - 27,726,817 (123,302) 10,325,140 562,585 2,353,419 - (292,000) 521,800 Total Equity RM'000 - 13,060 (458,590) 292,000 1,073 (15) (60,635) 29,209 74,828 - (2,927,948) (814,484) 1,960,109 (2,927,948) (814,484) (19,833) (3,894,904) (1,678,286) 309,690 4,434,084 56,119,061 (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 12
13. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CASH FLOW STATEMENTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Group 30 September 30 September 2017 2016 RM'000 RM'000 Cash flows from operating activities Profit before taxation and zakat Adjustments for: Depreciation of property, plant and equipment Share of profits in associates and joint ventures Amortisation of intangible assets Net loss on liquidation of subsidiary Net gain on disposal of financial assets at fair value through profit or loss Net gain on disposal of financial investments available-for-sale Net gain on redemption of financial investments held-to-maturity Unrealised gain on revaluation of financial assets at fair value through profit or loss and derivatives Unrealised (gain)/loss on revaluation of financial liabilities at fair value through profit or loss Allowances for impairment losses on loans, advances and financing, net (Writeback of)/allowances for impairment losses on other debts Dividend income ESS expenses Allowances for/(writeback of) impairment losses on financial investments, net Other adjustments for non-operating and non-cash items Operating profit before working capital changes 7,171,948 5,927,829 281,667 (110,423) 216,324 378 141,907 76,643 - 139,977 98,112 - (297,051) (230,233) (100,349) (126,494) (507,101) (457,381) (171,855) (329,215) (170) (11,397) (170) (11,397) (212,740) (926,510) (125,810) (489,942) (13,498) 82,459 (29,507) 77,384 28,825 2,562,152 5,612 (67,722) 28,776 173,484 1,328,556 859 (1,892,480) 8,556 (2,215) 1,451,349 688 (2,354,942) 20,156 139,976 (75,391) 8,396,387 (150,308) 7,368,323 (64,726) 4,943,370 4,999,156 6,829,128 3,624,526 11,159,640 1,642,007 (27,737,149) (8,162,098) 794,126 3,990,129 (4,739,599) (1,003,952) (12,829,365) (4,319,741) 1,281,977 1,822,936 12,713,463 2,605,980 (21,600,168) 1,027,299 444,603 (9,312,319) - (1,180,631) (6,846,337) 4,442,225 184,649 551,955 - 17,905,571 2,910,015 (8,953,072) 2,420,064 15,222,975 2,926,228 (8,641,451) 1,929,782 308,642 822,641 3,048,820 4,178,648 (1,551,890) 2,626,758 13 5,773,961 284,412 (182,334) 208,769 1,997 2,056,679 (4,805) (75,617) 12,464 Change in deposits and placements with financial institutions with original maturity of more than three months Change in cash and short-term funds with original maturity of more than three months Change in financial investments portfolio Change in loans, advances and financing Change in statutory deposits with central banks Change in deposits from customers Change in investment accounts of customers Change in deposits and placements from financial institutions Change in financial liabilities at fair value through profit or loss Change in reinsurance/retakaful assets and other insurance receivables Change in insurance/takaful contract liabilities and other insurance payables Change in other operating activities Cash generated from operations Taxes and zakat paid Net cash generated from operating activities 5,971,445 Bank 30 September 30 September 2017 2016 RM'000 RM'000 86,848 811,164 2,140,149 8,367,922 (1,058,745) 7,309,177 4,487,108 4,369,602 (710,025) 3,659,577 (59,026) 4,484,455 2,181,840 8,266,127 (503,988) 7,762,139
14. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) CONDENSED FINANCIAL STATEMENTS UNAUDITED CASH FLOW STATEMENTS FOR THE THIRD QUARTER ENDED 30 SEPTEMBER 2017 Group 30 September 30 September 2017 2016 RM'000 RM'000 Cash flows from investing activities Dividends received from: - financial investments portfolio - associates - subsidiaries Purchase of property, plant and equipment Purchase of investment properties Proceeds from disposal of property, plant and equipment Purchase of intangible assets Purchase of additional shares in existing subsidiary Purchase of shares in deemed controlled entities from a subsidiary Purchase of shares in associates from a subsidiary Net effect arising from transaction with non-controlling interests Net effect arising from capital reduction of subsidiaries Net effect arising from disposal of subsidiaries Liquidation of subsidiaries Net cash (used in)/generated from investing activities Bank 30 September 30 September 2017 2016 RM'000 RM'000 75,617 (151,083) (45,763) 20,000 (148,721) 64,342 (185,608) 67,722 (197,747) (26,373) 51,649 (140,025) 12,881 10,861 (221,032) 3,726 9,865 1,114,688 (64,008) 16,606 (101,082) (156,420) (480,341) (20,497) 242,837 149 565,523 9,875 8,179 2,336,888 (116,521) 17,188 (80,493) (559,593) 1,615,523 Cash flows from financing activities Proceeds from issuance of shares Drawdown/(repayment) of borrowings, net Redemption of subordinated obligations Issuance of subordinated obligations Recourse obligation on loans and financing sold to Cagamas, net Dividends paid Dividends paid to non-controlling interests Net cash generated from/(used in) financing activities 3,274,111 5,169,382 (3,378,800) 35,001 559,338 (3,276,785) (69,753) 2,312,494 2,034,937 (498,255) (6,033,975) 2,071,750 (70,173) (2,927,948) (94,582) (5,518,246) 3,274,111 1,897,741 (3,378,800) 559,338 (3,276,785) (924,395) 2,034,937 (844,282) (5,033,975) 2,071,750 (70,173) (2,927,948) (4,769,691) Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Effects of foreign exchange rate changes Cash and cash equivalents at end of period 4,753,644 50,875,740 (1,083,155) 54,546,229 1,569,899 53,049,192 (864,108) 53,754,983 3,300,705 38,217,233 (875,512) 40,642,426 4,607,971 38,619,148 (847,561) 42,379,558 Cash and cash equivalents included in the cash flow statements comprise the following amounts in Statements of Financial Position: Group 30 September 30 September 2017 2016 RM'000 RM'000 Cash and short-term funds Deposits and placements with financial institutions Less: Cash and short-term funds and deposits and placements with financial institutions, with original maturity of more than three months Cash and cash equivalents at end of period Bank 30 September 30 September 2017 2016 RM'000 RM'000 54,348,951 14,265,544 68,614,495 46,711,304 17,424,055 64,135,359 35,503,138 18,381,767 53,884,905 29,743,298 20,064,462 49,807,760 (14,068,266) 54,546,229 (10,380,376) 53,754,983 (13,242,479) 40,642,426 (7,428,202) 42,379,558 (These unaudited condensed interim financial statements should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016 and the accompanying explanatory notes attached to these financial statements) 14
15. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) Part A: Explanatory Notes Pursuant to Malaysian Financial Reporting Standard 134 (“MFRS 134”) Interim Financial Reporting A1. Basis of Preparation The unaudited condensed interim financial statements for the Group and the Bank have been prepared under the historical cost convention except for the following assets and liabilities that are stated at fair values: financial investments availablefor-sale, financial assets and liabilities at fair value through profit or loss, derivative financial instruments and investment properties. The unaudited condensed interim financial statements have been prepared in accordance with the requirements of Chapter 9, part K of the Listing Requirements of Bursa Malaysia Securities Berhad, MFRS 134 Interim Financial Reporting and IAS 34 Interim Financial Reporting . The unaudited condensed interim financial statements do not include all the information and disclosures required in the audited annual financial statements, and should be read in conjunction with the audited annual financial statements for the financial year ended 31 December 2016. These explanatory notes attached to the unaudited condensed 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 of the Bank since the financial year ended 31 December 2016. The unaudited condensed interim financial statements of the Group include Islamic banking and insurance business. Islamic banking refers generally to the acceptance of deposits, granting of financing and dealing in Islamic securities under the Shariah principles. Insurance business refers to the underwriting of general and life insurance business, the management of general and family takaful business and investment-linked business. The significant accounting policies and methods of computation applied by the Group and the Bank are consistent with those adopted in the most recent audited annual financial statements for the financial year ended 31 December 2016 except for adoption of the following amendments to Malaysian Financial Reporting Standards (“MFRSs”) and annual improvements to MFRSs which are effective for annual periods beginning on or after 1 January 2017: • • • MFRS 107 Statement of Cash Flows - Disclosure Initiative (Amendments to MFRS 107) MFRS 112 Income Taxes - Recognition of Deferred Tax Assets for Unrealised Losses (Amendments to MFRS 112) Annual Improvements to MFRSs 2014 - 2016 Cycle - Disclosure of Interests in Other Entities (Amendments to MFRS 12) The adoption of the above amendments to MFRSs and annual improvements to MFRSs do not have any significant financial impact to the Group's and the Bank's financial statements, except for as disclosed below: MFRS 107 Statement of Cash Flows - Disclosure Initiative (Amendments to MFRS 107) The amendments require an entity to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flows and non-cash changes (for example foreign exchange movements and fair value changes). On initial application of these amendments, entities are not required to provide comparative information for preceding periods. The Group and the Bank are not required to provide additional disclosures in the condensed interim financial statements, but will disclose the additional information in the annual financial statements for the year ending 31 December 2017. Companies Act 2016 The unaudited condensed interim financial statements of the Group and of the Bank are prepared in accordance with the requirements of the Companies Act 2016 ("New Act"), which replaced the Companies Act 1965. Amongst the key changes introduced in the New Act which affected the financial statements of the Group and of the Bank upon the commencement of the New Act on 31 January 2017 are as follows: (a) the removal of the authorised share capital; (b) the ordinary shares of the Bank will cease to have par or nominal value; and (c) the Bank’s share premium will become part of the share capital. 15
16. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) A1. Basis of Preparation (cont'd.) Companies Act 2016 (cont'd.) During the financial period ended 30 September 2017, the Bank has transferred RM28.9 billion share premium to its share capital. Pursuant to Section 618 of the New Act, the Bank has twenty four (24) months to utilise the amount of share premium that has been transferred to share capital. Revised Policy Documents on Capital Funds and Capital Funds for Islamic Banks issued by Bank Negara Malaysia ("BNM") On 3 May 2017, BNM issued a Revised Policy Documents on Capital Funds and Capital Funds for Islamic Banks ("Revised Policy Document"). These Revised Policy Documents apply to banking institutions in Malaysia that covers licensed bank, licensed investment bank and licensed Islamic bank. The issuance of these Revised Policy Documents have superseded two guidelines issued by BNM previously, namely Capital Funds and Capital Funds for Islamic Banks dated 1 July 2013. The key changes in the Revised Policy Documents are as follows: (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. Upon adoption of the Revised Policy Documents, the Group and the Bank have transferred RM10.7 billion and RM10.3 billion of statutory reserve to retained earnings respectively as at 30 September 2017. Policy Document on Classification and Regulatory Treatment for Structured Products under the Financial Services Act 2013 and Islamic Financial Services Act 2013 issued by Bank Negara Malaysia ("BNM") On 21 June 2017, BNM issued a Policy Document on Classification and Regulatory Treatment for Structured Products under the Financial Services Act 2013 ("FSA") and Islamic Financial Services Act 2013 ("IFSA"). This Policy Document applies to banking institutions in Malaysia that covers licensed commercial bank and licensed Islamic bank. The Policy Document clarifies that structured products that do not guarantee full repayment of principal amount on demand do not fulfill the definition of deposits under Section 2 of the FSA and IFSA and hence must not be classified as deposits or Islamic deposits. In terms of financial reporting, insofar that the structured product is bifurcated, the principal amount shall not be reported under the "deposit", "Islamic deposit" or "investment account" line items in the banking institutions' financial statements. Effective from June 2017 reporting date onwards, banking institutions shall report structured products (in accordance with the accounting treatment adopted) under either of these items: • • "Financial Liabilities Designated at Fair Value through Profit or Loss" if applying fair value options; or "Other Liabilities" if accounted for separately from the embedded derivative. As at 30 September 2017, the Group and the Bank have presented the required disclosures in Note A14 and Note A19 respectively. Also, upon adoption of the Policy Document, the Group and the Bank have restated the deposits from customers and other liabilities balances as at 31 December 2016 by RM4.31 billion. A2. Significant Accounting Policies The audited annual financial statements of the Group and of the Bank for the financial year ended 31 December 2016 were prepared in accordance with MFRS and International Financial Reporting Standards ("IFRS") and the requirements of the Companies Act, 1965 in Malaysia. The significant accounting policies adopted in preparing these unaudited condensed interim financial statements are consistent with those of the audited annual financial statements for the financial year ended 31 December 2016 except for the application of the requirements of the Companies Act 2016 and adoption of the requirements of the BNM's Policy Documents as disclosed in Note A1. 16
17. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) A3. Significant Accounting Estimates and Judgements The preparation of unaudited condensed interim financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of income, expenses, assets, liabilities, the accompanying disclosures and the disclosure of contingent liabilities. Although these estimates and judgements are based on management’s best knowledge of current events and actions, actual results may differ. In preparing these unaudited condensed interim financial statements, the significant judgements made by management in applying the Group’s accounting policies and the key sources of estimation uncertainty were the same as those that applied to the audited annual financial statements for the financial year ended 31 December 2016. A4. Auditors' Report on Preceding Audited Annual Financial Statements The auditors' report on the audited annual financial statements for the financial year ended 31 December 2016 was not qualified. A5. Seasonal or Cyclical Factors The operations of the Group and of the Bank were not materially affected by any seasonal or cyclical factors during the third quarter ended 30 September 2017. A6. Unusual Items Due to Their Nature, Size or Incidence During the third quarter ended 30 September 2017, save as disclosed in Note A8 below, there were no unusual items affecting the assets, liabilities, equity, net income or cash flows of the Group and of the Bank. A7. Changes in Estimates There were no material changes in estimates during the third quarter ended 30 September 2017. A8. Changes in Debt and Equity Securities (i) The following are the changes in debt and equity securities for the Group and the Bank during the third quarter ended 30 September 2017: (a) Share capital The share capital of the Bank increased from RM10,193,199,917 as at 31 December 2016 to RM42,519,223,477 as at 30 September 2017 via: (A) transfer of share premium amounting to RM28,878,703,017 to share capital pursuant to Companies Act 2016; (B) issuance of 144,341,300 new ordinary shares amounting to RM1,348,859,015 to eligible employees who exercised their options under the current Maybank Group Employees' Share Scheme ("ESS") which commenced on 23 June 2011, for a period of 7 years; (C) issuance of 4,098,732 new ordinary shares amounting to RM38,118,208 to eligible employees under the Restricted Share Unit ("RSU") which is part of the current Maybank Group ESS; (D) issuance of 110,000 new ordinary shares amounting to RM935,000 to eligible employees under the Supplemental Restricted Share Unit ("SRSU") which is part of the current Maybank Group ESS; (E) issuance of 5,411,200 new ordinary shares amounting to RM49,999,488 to be held in the ESOS Trust Fund ("ETF") Pool; and (F) issuance of 243,599,777 new ordinary shares (including 494,763 new ordinary shares issued to ESOS Trust Fund ("ETF") Pool) amounting to RM2,009,408,832 arising from the Dividend Reinvestment Plan ("DRP") relating to electable portion of the final dividend of 22 sen in respect of the financial year ended 31 December 2016. The issued ordinary shares of the Bank as at 30 September 2017 is 10,590,760,926 units (31 December 2016: 10,193,199,917 units). 17
18. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) A8. Changes in Debt and Equity Securities (cont'd.) (i) The following are the changes in debt and equity securities for the Group and the Bank during the third quarter ended 30 September 2017 (cont'd.): (b) (c) Issuance/Redemption of bonds by PT Bank Maybank Indonesia Tbk and its subsidiaries Issuance/ Redemption Issuance/ Redemption Date Nominal Value Issuance 11 July 2017 IDR435.0 billion Issuance 11 July 2017 IDR300.0 billion Issuance 11 July 2017 IDR100.0 billion Issuance 11 July 2017 IDR266.0 billion Issuance 22 Aug 2017 IDR400.0 billion Issuance 22 Aug 2017 IDR320.5 billion Redemption 25 June 2017 IDR203.0 billion Redemption 4 July 2017 IDR442.0 billion Redemption 8 July 2017 IDR300.0 billion Shelf Bonds II Bank Maybank Indonesia Tranche I Year 2017 Series A Shelf Bonds II Bank Maybank Indonesia Tranche I Year 2017 Series B Shelf Bonds II Bank Maybank Indonesia Tranche I Year 2017 Series C Shelf Sukuk Mudharabah II Bank Maybank Indonesia Tranche I Year 2017 Shelf Bonds II WOM Finance Tranche II Year 2017 Series A Shelf Bonds II WOM Finance Tranche II Year 2017 Series B Shelf Bonds I WOM Finance Tranche I Year 2014 Series B Shelf Bonds II WOM Finance Tranche I Year 2016 Series A Shelf Sukuk Mudharabah I Bank BII Tranche I Year 2014 Tenor 5 years 7 years 10 years 3 years 1 year 3 years 3 years 1 year 3 years Issuance/Redemption of Medium Term Notes pursuant to the USD15.0 billion Multicurrency Medium Term Note Programme by Maybank Issuance/ Redemption Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance Redemption Redemption Redemption Redemption Redemption (d) Note Type Issuance/ Redemption Date 31 March 2017 18 April 2017 5 May 2017 17 May 2017 2 June 2017 2 June 2017 8 June 2017 5 July 2017 18 July 2017 26 July 2017 2 Aug 2017 7 Aug 2017 19 Sep 2017 25 Sep 2017 10 April 2017 12 May 2017 22 May 2017 30 May 2017 1 Aug 2017 Nominal Value Note Type Tenor AUD12.0 million AUD12.0 million USD70.0 million USD50.0 million HKD200.0 million HKD909.0 million JPY22.0 billion JPY2.0 billion AUD12.0 million USD203.0 million CHF100.0 million JPY20.0 billion USD20.0 million USD20.0 million SGD50.0 million USD50.0 million JPY31.1 billion JPY5.0 billion USD20.0 million Collared Floating Rate Notes Collared Floating Rate Notes Floating Rate Notes Fixed Rate Notes Fixed Rate Notes Fixed Rate Notes Fixed Rate Notes Fixed Rate Notes Collared Floating Rate Notes Callable Zero Coupon Notes Zero Coupon Notes Fixed Rate Notes Floating Rate Notes Floating Rate Notes Fixed Rate Notes Floating Rate Notes Fixed Rate Notes Fixed Rate Notes Floating Rate Notes 5 years 5 years 1.5 years 5 years 3 years 5 years 5 years 5 years 5 years 30 years 4 years 3 years 1.5 years 5 years 2 years 3 years 3 years 5 years 1 year Redemption of Medium Term Notes pursuant to the USD2.0 billion Multicurrency Medium Term Note Programme by Maybank Redemption Redemption Date Nominal Value Note Type Tenor Redemption Redemption 10 February 2017 1 March 2017 USD400.0 million HKD700.0 million Fixed Rate Notes Fixed Rate Notes 5 years 5 years 18
19. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) A8. Changes in Debt and Equity Securities (cont'd.) (i) The following are the changes in debt and equity securities for the Group and the Bank during the third quarter ended 30 September 2017 (cont'd.): (e) Establishment of Islamic Commercial Paper/Medium Term Note Programme of up to RM10.0 billion in nominal value by Maybank Islamic Berhad On 21 February 2017, Maybank Islamic Berhad, a wholly-owned subsidiary of Maybank, successfully established a RM10.0 billion Islamic commercial paper/medium term note programme in nominal value under the Shariah principle of Wakalah Bi Al-Istithmar. (f) (g) Issuance of Senior Sukuk Murabahah pursuant to the RM10.0 billion Sukuk Murabahah Programme by Maybank Issuance Issuance Date Nominal Value Note Type Tenor Issuance 22 February 2017 RM60.0 million Callable Fixed Rate Sukuk 15 years Issuance of Ringgit Commercial Papers/Medium Term Notes pursuant to the RM10.0 billion Commercial Paper/Medium Term Note Programme by Maybank Issuance Issuance Date Nominal Value Note Type Tenor Issuance Issuance Issuance Issuance Issuance Issuance Issuance Issuance 7 March 2017 22 March 2017 7 June 2017 14 June 2017 25 July 2017 1 Aug 2017 8 Aug 2017 17 Aug 2017 RM60.0 million RM44.1 million RM43.0 million RM35.0 million RM15.0 million RM21.0 million RM22.0 million RM200.0 million Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes 1 year 1 year 1 year 1 year 1 year 1 year 1 year 1 year As at 30 September 2017, the aggregate nominal value of the outstanding Ringgit Commercial Papers is RM3,192.4 million (31 December 2016: RM517.0 million). The tenor for these Ringgit Commercial Papers range from 174 days to 365 days. (h) (i) Redemption of Ringgit Medium Term Notes pursuant to the RM10.0 billion Senior Medium Term Note Programme by Maybank Redemption Redemption Date Nominal Value Note Type Tenor Redemption Redemption Redemption Redemption 20 July 2017 31 July 2017 4 August 2017 11 August 2017 RM200.0 million RM200.0 million RM200.0 million RM200.0 million Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes 1 year 1 year 1 year 1 year Issuance of Euro-Commercial Papers pursuant to the USD5.0 billion Euro Commercial Paper Programme by Maybank As at 30 September 2017, the aggregate nominal value of the outstanding Euro Commercial Papers is RM199.4 million (31 December 2016: RM845.0 million). The tenor for these Euro Commercial Papers is 186 days. (j) Issuance of U.S. Commercial Papers pursuant to the USD500.0 million U.S. Commercial Paper Programme by Maybank As at 30 September 2017, the aggregate nominal value of the outstanding U.S. Commercial Papers is RM2,101.8 million (31 December 2016: RM2,115.7 million). The tenor for these U.S. Commercial Papers range from 87 days to 278 days. 19
20. MALAYAN BANKING BERHAD (3813-K) (Incorporated in Malaysia) A8. Changes in Debt and Equity Securities (cont'd.) (i) The following are the changes in debt and equity securities for the Group and the Bank during the third quarter ended 30 September 2017 (cont'd.): (k) Inaugural Issuance of RMB Bonds in the People’s Republic of China Interbank Bond Market Amounting to RMB1.0 billion in Nominal Value On 24 July 2017, Maybank has completed its inaugural issuance of RMB bonds in the People’s Republic of China (“PRC”) interbank bond market, through a bookbuilding process, amounting to RMB1.0 billion in nominal value with a tenure of 3 years which bears a fixed interest rate of 4.60% per annum. Approval from the People’s Bank of China was obtained on 24 June 2017 for Maybank to issue RMB bonds of up to RMB6.0 billion in the PRC interbank bond market in multiple tranches within a period of 2 years from the date of approval. (l) Redemption of Subordinated Notes of USD800.0 million in nominal value under the USD15.0 billion Multicurrency Medium Term Note Programme by Maybank On 20 September 2017, Maybank fully redeemed the USD800.0 million Subordinated Notes. The Subordinated Notes were issued on 20 September 2012. (ii) The following are the changes in debt securities for the Group and the Bank subsequent to the third quarter ended 30 September 2017 and have not been reflected in the financial statements for the third quarter ended 30 September 2017: (a) (b) (c) (d) Issuance of Medium Term Notes pursuant to the USD15.0 billion Multicurrency Medium Term Note Programme by Maybank Issuance Issuance Date Nominal Value Note Type Tenor Issuance Issuance Issuance Issuance 3 Oct 2017 19 Oct 2017 2 Nov 2017 30 Nov 2017 HKD624.0 million USD300.0 million CNY500.0 million AUD12.0 million Fixed Rate Notes Callable Zero Coupon Notes Fixed Rate Notes Collared Floating Rate Notes 5 years 30 years 3 years 5 years Issuance of Ringgit Medium Term Notes pursuant to the RM10.0 billion Commercial Paper/Medium Term Note Programme by Maybank Issuance Issuance Date Nominal Value Note Type Tenor Issuance Issuance 3 Oct 2017 4 Oct 2017 RM19.0 million RM17.0 million Zero Coupon Medium Term Notes Zero Coupon Medium Term Notes 1 year 1 year Issuance of Islamic Ringgit Medium Term Notes pursuant to the Islamic Commercial Paper/Medium Term Note Programme of up to RM10.0 billion in nominal value by Maybank Islamic Berhad Issuance Issuance Date Nominal Value Note Type Tenor Issuance 16 Nov 2017 RM250.0 million Zero Coupon Medium Term Notes 1 year Issuance/Redemption of bonds by PT Bank Maybank Indonesia Tbk and its subsidiaries Issuance/ Redemption Issuance/ Redemption Date Nominal Value Issuance 15 November 2017 IDR1,150.0 billion Issuance 15 November 2017 Redemption 30 October 2017 Note Type Shelf Bonds I Maybank Finance Tranche IV Year 2017 Series A Shelf Bonds I Maybank Finance Tranche IDR50.0 billion IV Year 2017 Series B Shelf Bonds I Bank BII Tranche II Year IDR1,020.0 billion 2012 Series B Tenor 3 years 5 years 5 years Save as disclosed above, there were no cancellations, share buy-backs, resale of shares bought back by the Group and by the Bank. 20