RHB Bank Barhad Unaudited 6 Months Financial Results Ended - 30 June 2017

Transcription

1. RHB Bank Berhad (6171 - M) Level 9, Tower One, RHB Centre, Jalan Tun Razak, 50400 Kuala Lumpur, Malaysia TEL +603 9285 2233 FAX +603 2142 7568 RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED INCOME STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Note Group Interest income Interest expense Net interest income Other operating income Income from Islamic Banking business Net income Other operating expenses Operating profit before allowances Allowance for impairment on loans, financing and other losses Impairment losses made on other assets Share of results of joint ventures Profit before taxation Taxation Net profit for the financial period A8 A9 A10 A29(b) A11 A12 B5 Attributable to: - Equity holders of the Bank - Non-controlling interests Earnings per share (sen) - Basic - Diluted B12 B12 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 1,937,422 (1,051,731) 885,691 397,061 296,496 1,579,248 (784,309) 794,939 1,950,637 (1,097,938) 852,699 458,725 239,181 1,550,605 (769,785) 780,820 3,851,192 (2,113,907) 1,737,285 845,121 552,264 3,134,670 (1,545,526) 1,589,144 3,970,271 (2,226,088) 1,744,183 917,166 471,281 3,132,630 (1,516,474) 1,616,156 (32,889) (108,246) 653,804 111 653,915 (151,752) 502,163 (59,739) (251,987) 469,094 245 469,339 (115,765) 353,574 (165,258) (111,906) 1,311,980 207 1,312,187 (308,434) 1,003,753 (140,070) (251,576) 1,224,510 301 1,224,811 (304,597) 920,214 500,963 1,200 502,163 350,169 3,405 353,574 1,001,240 2,513 1,003,753 915,054 5,160 920,214 12.5 12.5 8.9 8.9 25.0 25.0 24.7 24.7 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 1
2. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2017 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Group Net profit for the financial period 502,163 Other comprehensive income/(loss) in respect of: (i) Items that will not be reclassified to profit or loss: - Actuarial gain/(loss) on defined benefit plan of subsidiaries (ii) Items that will be reclassified subsequently to profit or loss: (a) Foreign currency translation reserves - Currency translation differences - Net investment hedge (b) Unrealised net gain on revaluation of financial investments available-for-sale ('AFS') (c) Net transfer to income statements on disposal or impairment of financial investments AFS Income tax relating to components of other comprehensive income 2 Other comprehensive income, net of tax, for the financial period Total comprehensive income for the financial period Total comprehensive income attributable to: - Equity holders of the Bank - Non-controlling interests 353,574 (6) Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 1,003,753 920,214 396 342 (100,547) 5,750 140,716 (15,773) (97,126) 1,926 (169,302) 22,351 81,764 121,734 164,054 306,346 99,889 53,812 91,439 37,199 (43,782) (42,235) (60,555) (82,700) 43,076 545,239 258,248 611,822 100,134 1,103,887 114,236 1,034,450 544,126 1,113 545,239 606,570 5,252 611,822 1,101,460 2,427 1,103,887 1,030,050 4,400 1,034,450 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 2
3. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED INCOME STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Note Bank Interest income Interest expense Net interest income Other operating income Net income Other operating expenses Operating profit before allowances Allowance for impairment on loans, financing and other losses Impairment losses made on other assets Profit before taxation Taxation Net profit for the financial period A8 A9 A10 A11 A12 B5 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 1,902,824 (1,017,740) 885,084 180,859 1,065,943 (504,087) 561,856 1,896,352 (1,067,479) 828,873 222,043 1,050,916 (502,464) 548,452 3,778,592 (2,056,395) 1,722,197 364,585 2,086,782 (995,191) 1,091,591 3,852,243 (2,147,861) 1,704,382 467,854 2,172,236 (1,002,676) 1,169,560 23,220 (108,775) 476,301 (98,089) 378,212 (47,139) (251,464) 249,849 (68,022) 181,827 (65,666) (108,775) 917,150 (208,714) 708,436 (81,728) (251,053) 836,779 (218,453) 618,326 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 3
4. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME FOR THE SIX MONTHS ENDED 30 JUNE 2017 Bank Net profit for the financial period Other comprehensive income/(loss) in respect of: (i) Items that will be reclassified subsequently to profit or loss: (a) Foreign currency translation reserves - Currency translation differences (b) Unrealised net gain on revaluation of financial investments AFS (c) Net transfer to income statements on disposal or impairment of financial investments AFS Income tax relating to components of other comprehensive income Other comprehensive income, net of tax, for the financial period Total comprehensive income for the financial period 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 378,212 181,827 708,436 618,326 (30,978) 62,616 (14,327) (45,632) 59,505 95,185 111,369 224,178 102,079 55,312 94,440 39,851 (38,780) (36,119) (49,394) (63,367) 91,826 470,038 176,994 358,821 142,088 850,524 155,030 773,356 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 4
5. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2017 Group As at As at 30 June 31 December 2017 2016 RM'000 RM'000 Note ASSETS Cash and short-term funds Securities purchased under resale agreements Deposits and placements with banks and other financial institutions Financial assets at fair value through profit or loss ('FVTPL') Financial investments available-for-sale ('AFS') Financial investments held-to-maturity ('HTM') Loans, advances and financing Clients' and brokers' balances Reinsurance assets Other assets Derivative assets Statutory deposits Tax recoverable Deferred tax assets Investments in subsidiaries Investments in associates and joint ventures Property, plant and equipment Goodwill Intangible assets TOTAL ASSETS LIABILITIES Deposits from customers Deposits and placements of banks and other financial institutions Obligations on securities sold under repurchase agreements Investment account from customers Bills and acceptances payable Clients' and brokers' balances General insurance contract liabilities Other liabilities Derivative liabilities Recourse obligation on loans sold to Cagamas Berhad ('Cagamas') Tax liabilities Deferred tax liabilities Borrowings Subordinated obligations Hybrid Tier-1 Capital Securities Senior debt securities TOTAL LIABILITIES Bank As at As at 30 June 31 December 2017 2016 RM'000 RM'000 14,278,629 9,026 14,682,943 1,303,589 9,036,177 - 12,430,270 1,289,891 2,547,327 1,362,448 11,277,860 9,641,121 2,694,254 26,773,202 17,589,408 154,403,507 1,864,428 415,626 2,119,588 2,330,413 3,619,219 207,314 47,962 49,019 1,005,169 2,649,307 438,457 233,041,855 2,324,723 25,109,662 21,365,103 152,350,304 2,090,783 378,311 2,916,551 4,075,418 4,241,509 246,895 100,611 49,537 1,032,131 2,649,307 399,004 236,678,829 1,175,116 21,481,664 14,515,121 110,186,274 1,801,166 2,341,939 2,335,526 144,647 14,628 5,358,360 733,971 905,519 380,496 181,688,464 1,095,862 19,692,075 17,986,112 111,953,651 3,127,293 4,096,153 2,829,242 180,705 55,515 5,340,659 756,899 905,519 335,153 191,716,120 A18/B7(a) 165,788,731 165,636,253 122,826,923 127,585,747 A19/B7(a) 22,823,871 22,700,616 22,667,793 22,686,846 A20 B8 157,857 12,998 636,883 1,533,982 942,709 2,320,621 2,941,278 362,706 476,300 1,743,242 872,183 2,846,146 3,679,020 1,196,125 512,722 1,457,364 2,918,256 2,716,656 286,318 1,898,825 3,671,822 3,406,166 57,489 5,026 725,435 5,040,836 602,215 3,448,707 210,444,804 3,554,053 57,329 3,194 972,030 5,543,358 602,143 5,856,389 214,904,962 2,738,851 530,415 3,837,937 607,226 3,448,707 162,742,319 2,738,811 698,651 4,592,576 607,155 5,856,389 173,339,796 A13 A14 A15 A16 A17 B8 B7(b) B7(c) B7(d) B7(e) This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 5
6. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF FINANCIAL POSITION (CONTINUED) AS AT 30 JUNE 2017 Group As at As at 30 June 31 December 2017 2016 RM'000 RM'000 Note Bank As at As at 30 June 31 December 2017 2016 RM'000 RM'000 EQUITY Share capital Reserves Equity attributable to holders of the Bank 6,994,103 15,571,444 22,565,547 4,010,045 17,734,733 21,744,778 6,994,103 11,952,042 18,946,145 4,010,045 14,366,279 18,376,324 Non-controlling interests ('NCI') TOTAL EQUITY 31,504 22,597,051 29,089 21,773,867 18,946,145 18,376,324 233,041,855 236,678,829 181,688,464 191,716,120 196,317,292 196,190,300 191,792,413 190,735,669 5.63 5.42 TOTAL LIABILITIES AND EQUITY COMMITMENTS AND CONTINGENCIES A25(a) NET ASSETS PER SHARE ATTRIBUTABLE TO EQUITY HOLDERS OF THE BANK (RM) This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 6
7. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017 Attributable to equity holders of the Bank Note Group Balance as at 1 January 2017 Share Capital RM’000 Share Premium RM’000 Statutory Reserves RM’000 Regulatory Reserves RM’000 AFS Reserves RM’000 Translation Reserves RM’000 Other Reserves RM’000 Total Retained Shareholders' Profits Equity RM’000 RM’000 Noncontrolling Interests RM’000 Total Equity RM’000 4,010,045 2,984,058 4,931,227 669,501 80,567 888,864 23,331 8,157,185 21,744,778 29,089 21,773,867 Net profit for the financial period - - - - - - - 1,001,240 1,001,240 2,513 1,003,753 Foreign currency translation reserves: - Currency translation differences - Net investment hedge - - - - - - - (97,045) 1,926 (81) - (97,126) 1,926 - - - - 164,062 - - - 164,062 (8) 164,054 - - - - 91,439 - - - 91,439 - 91,439 Actuarial gain on defined benefit plan of subsidiaries - - - - - - - 392 392 4 396 Income tax relating to components of other comprehensive income - - - - (60,453) - - (101) (60,554) (1) (60,555) Other comprehensive income/(loss), net of tax, for the financial period - - - - 195,048 (95,119) - 291 100,220 (86) 100,134 Total comprehensive income/(loss) for the financial period - - - - 195,048 (95,119) - 1,001,531 1,101,460 Dividends paid - - - - - - - - - - - - - - - - - - - - 4,930,714 - - - 66,467 - - - - - - Financial investments AFS: - Unrealised net gain/(loss) on revaluation - Net transfer to income statements on disposal or impairment (97,045) 1,926 (280,703) (280,703) Transfer to share capital A1(b)(i) 2,984,058 Transfer from statutory reserves A1(b)(ii) - - - - - - - - - - - 12 12 6,994,103 - 513 735,968 275,615 793,745 23,331 13,742,272 22,565,547 Transfer to regulatory reserves Accretion of interest in a subsidiary Balance as at 30 June 2017 (2,984,058) (4,930,714) - This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 7 (66,467) 2,427 - (12) 31,504 1,103,887 (280,703) 22,597,051
8. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2017 Attributable to equity holders of the Bank Note Group Balance as at 1 January 2016 Share Capital RM’000 Share Premium RM’000 Statutory Reserves RM’000 Regulatory Reserves RM’000 AFS Reserves RM’000 Translation Reserves RM’000 Other Reserves RM’000 Total Retained Shareholders' Profits Equity RM’000 RM’000 Noncontrolling Interests RM’000 Total Equity RM’000 3,460,585 478,517 4,527,434 589,637 126,340 712,004 23,331 7,750,021 17,667,869 24,618 17,692,487 Net profit for the financial period - - - - - - - 915,054 915,054 5,160 920,214 Foreign currency translation reserves: - Currency translation differences - Net investment hedge - - - - - - - (168,480) 22,351 (822) - (169,302) 22,351 - - - - 306,286 - - - 306,286 60 306,346 - - - - 37,199 - - - 37,199 - 37,199 Actuarial gain on defined benefit plan of subsidiaries - - - - - - - 339 339 3 342 Income tax relating to components of other comprehensive income - - - - (82,614) - - (85) (82,699) Other comprehensive income/(loss), net of tax, for the financial period - - - - 260,871 (146,129) - 254 114,996 Total comprehensive income/(loss) for the financial period - - - - 260,871 (146,129) - 915,308 1,030,050 4,400 1,034,450 101,618 447,842 463,382 2,042,159 - - - - - - 565,000 2,490,001 - 565,000 2,490,001 - - - - - - - Financial investments AFS: - Unrealised net gain on revaluation - Net transfer to income statements on disposal or impairment Shares issued pursuant to: - Rights issue via recapitalisation of dividend - Rights issue Dividends paid: - By the Bank - By subsidiaries to the former holding company and NCI (168,480) 22,351 (565,000) (565,000) (23,675) (1) (760) - 114,236 (565,000) - - - - - - - (23,675) Transfer to statutory reserves - - 191,873 - - - - (191,873) - - - Transfer to regulatory reserves - - - 40,472 - - - (40,472) - - - Dilution of interest in a subsidiary - - - - - - - (580) 580 - 4,010,045 2,984,058 4,719,307 630,109 387,211 565,875 23,331 28,273 21,191,938 Balance as at 30 June 2016 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 8 7,843,729 (580) 21,163,665 (1,325) (82,700) (25,000)
9. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CHANGES IN EQUITY FOR THE SIX MONTHS ENDED 30 JUNE 2017 Note Bank Share Capital RM’000 Share Premium RM’000 Statutory Reserves RM’000 Non-Distributable Regulatory Reserves RM’000 AFS Reserves RM’000 Translation Reserves RM’000 Distributable Retained Profits RM’000 Total Equity RM’000 4,010,045 2,984,058 3,784,558 461,870 116,933 400,289 6,618,571 18,376,324 Net profit for the financial period - - - - - - 708,436 708,436 Foreign currency translation reserves: - Currency translation differences - - - - - - - - - 111,369 - - - - Income tax relating to components of other comprehensive income - - - Other comprehensive income/(loss), net of tax, for the financial period - - Total comprehensive income/(loss) for the financial period - Dividends paid - Balance as at 1 January 2017 Financial investments AFS: - Unrealised net gain on revaluation - Net transfer to income statements on disposal or impairment - (14,327) - - 111,369 94,440 - - 94,440 - (49,394) - - (49,394) - - 156,415 (14,327) - 142,088 - - - 156,415 (14,327) 708,436 850,524 - - - - - (280,703) (280,703) - - - - - - - - - 3,784,558 - Transfer to share capital A1(b)(i) 2,984,058 Transfer from statutory reserves A1(b)(ii) - - - - - 31,025 - - 6,994,103 - - 492,895 273,348 385,962 Transfer to regulatory reserves Balance as at 30 June 2017 (2,984,058) (14,327) (3,784,558) This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 9 (31,025) 10,799,837 18,946,145
10. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CHANGES IN EQUITY (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2017 Bank Share Capital RM’000 Share Premium RM’000 Statutory Reserves RM’000 Non-Distributable Regulatory Reserves RM’000 AFS Reserves RM’000 Translation Reserves RM’000 Distributable Retained Profits RM’000 Total Equity RM’000 3,460,585 478,517 3,478,138 385,494 157,184 348,473 6,541,186 14,849,577 Net profit for the financial period - - - - - - 618,326 618,326 Foreign currency translation reserves: - Currency translation differences - - - - - - - - - 224,178 - - - - Income tax relating to components of other comprehensive income - - - Other comprehensive income/(loss), net of tax, for the financial period - - Total comprehensive income/(loss) for the financial period - Balance as at 1 January 2016 - (45,632) - - 224,178 39,851 - - 39,851 - (63,367) - - (63,367) - - 200,662 (45,632) - 155,030 - - - 200,662 (45,632) 618,326 773,356 101,618 447,842 463,382 2,042,159 - - - - - 565,000 2,490,001 Dividends paid - - - - - - (565,000) Transfer to statutory reserves - - 154,582 - - - (154,582) - Transfer to regulatory reserves - - - 14,054 - - (14,054) - 4,010,045 2,984,058 3,632,720 399,548 357,846 302,841 Financial investments AFS: - Unrealised net gain on revaluation - Net transfer to income statements on disposal or impairment Shares issued pursuant to: - Rights issue via recapitalisation of dividend - Rights issue Balance as at 30 June 2016 (45,632) This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 10 6,425,876 (565,000) 18,112,934
11. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED 30 JUNE 2017 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 Group Cash flows from operating activities Profit before taxation Adjustments for: Allowance for impairment on loans, financing and other losses Property, plant and equipment: - Depreciation - Gain on disposal - Written off Intangible assets: - Amortisation Net impairment losses made on financial investments AFS and HTM Share of results of joint ventures Net gain on financial instruments Dividend income Other non-cash items Operating profit before working capital changes (Increase)/Decrease in operating assets: Securities purchased under resale agreements Deposits and placements with banks and other financial institutions Financial assets FVTPL Loans, advances and financing Clients' and brokers' balances Other assets Statutory deposits Increase/(Decrease) in operating liabilities: Deposits from customers Deposits and placements of banks and other financial institutions Obligations on securities sold under repurchase agreements Obligations on securities borrowed Bills and acceptances payable Clients' and brokers' balances Other liabilities Recourse obligation on loans sold to Cagamas Cash generated from/(used in) operations Net tax paid Net cash used in operating activities 1,312,187 1,224,811 292,456 276,122 59,424 (50) 776 59,185 (1,662) 113 36,122 111,906 (207) (119,443) (26,022) (286,942) 1,380,207 33,469 251,576 (301) (221,756) (24,550) (458,014) 1,138,993 1,262,664 (1,184,879) (316,353) (2,359,860) 226,355 845,239 611,090 (915,744) (1,452,406) (709,339) 96,910 (883,154) (1,187,358) 658,798 1,047,581 (2,428,968) 125,536 138,948 (205,106) 12,998 160,435 (209,260) (280,085) (147,887) (404,421) 6,363,964 (3,341,721) (2,569,015) (12,202) (265,619) 1,100,343 (940,260) (96,872) 238,618 60,042 (273,223) (213,181) (1,051,357) (328,118) (1,379,475) This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 11
12. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2017 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 Group Cash flows from investing activities Net proceeds from disposal of financial investments AFS and HTM Property, plant and equipment: - Purchase - Proceeds from disposal Intangible assets: - Purchase Financial investments AFS and HTM: - Interest received - Investment income received Dividend income received from financial assets FVTPL and financial investments AFS Acquisition of additional interest from NCI Net cash outflow arising from internal reorganisation Net cash generated from/(used in) investing activities Cash flows from financing activities Proceeds from issuance of subordinated notes Redemption of subordinated notes Redemption of senior debt securities Drawdown of borrowings Repayment of borrowings Proceeds from issuance of share capital Dividends paid to equity holders of the Bank Dividends paid by subsidiaries arising from effect of predecessor accounting Net cash (used in)/generated from financing activities Net (decrease)/increase in cash and cash equivalents Effects of exchange rate differences Cash and cash equivalents: - at the beginning of the financial period - at the end of the financial period Cash and cash equivalents comprise the following: - Cash and short term funds Note: Significant non-cash transaction during the financial period is as follows: - Re-capitalisation of dividend 2,316,187 2,153,212 (34,008) 135 (34,459) 4,252 (75,674) (66,852) 711,985 124,874 26,022 (12) 3,069,509 712,142 102,256 24,550 (3,614,753) (719,652) 250,000 (750,000) (2,173,766) 1,064,415 (1,290,483) (280,703) (3,180,537) (100,000) 1,585,200 (1,321,103) 2,490,001 (25,000) 2,629,098 (324,209) (80,105) 529,971 (103,847) 14,682,943 14,278,629 12,881,395 13,307,519 14,278,629 14,278,629 13,307,519 13,307,519 - 565,000 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 12
13. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2017 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 Bank Cash flows from operating activities Profit before taxation Adjustments for: Allowance for impairment on loans, financing and other losses Property, plant and equipment: - Depreciation - Gain on disposal - Written off Intangible assets: - Amortisation Net impairment made on financial investments AFS and HTM Net gain on financial instruments Dividend Income Other non-cash items Operating profit before working capital changes Decrease/(Increase) in operating assets: Securities purchased under resale agreements Deposits and placements with banks and other financial institutions Financial assets FVTPL Loans, advances and financing Other assets Statutory deposits (Decrease)/Increase in operating liabilities: Deposits from customers Deposits and placements of banks and other financial institutions Obligations on securities sold under repurchase agreements Bills and acceptances payable Other liabilities Recourse obligation on loans sold to Cagamas Cash (used in)/generated from operations Net tax paid Net cash (used in)/generated from operating activities 917,150 836,779 186,949 210,230 41,879 (18) 232 41,310 (1,611) 22 27,084 108,775 (34,054) (1,760) (204,002) 1,042,235 24,619 251,053 (108,115) (3,371) (354,714) 896,202 1,295,041 (1,636,344) (48,562) 1,642,210 1,346,900 494,433 3,093,678 (1,417,314) 66,629 214,799 1,343,921 336,089 814,899 1,359,023 (4,843,281) (23,559) (1,520,787) 226,256 (203,048) 40 (6,364,379) 2,568,642 (4,991,976) 45,425 (256,730) 1,179,188 (13,353) (1,468,804) (2,228,466) (181,507) (2,409,973) 786,421 (236,451) 549,970 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 13
14. RHB BANK BERHAD (6171-M) INTERIM FINANCIAL STATEMENTS UNAUDITED STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE SIX MONTHS ENDED 30 JUNE 2017 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 Bank Cash flows from investing activities Net proceeds from disposal of financial investments AFS and HTM Property, plant and equipment: - Purchase - Proceeds from disposal Intangible assets: - Purchase Interest received from financial investments AFS and HTM Net cash outflow arising from internal reorganisation Dividend income received from financial assets FVTPL and financial investments AFS Additional investments in subsidiaries Net cash generated from/(used in) investing activities Cash flows from financing activities Drawdown of borrowings Repayment of borrowings Proceeds from issuance of share capital Redemption of subordinated notes Redemption of senior debt securities Dividends paid to equity holders of the Bank Net cash (used in)/generated from financing activities Net (decrease)/increase in cash and cash equivalents Effects of exchange rate differences Cash and cash equivalents: - at the beginning of the financial period - at the end of the financial period Cash and cash equivalents comprise the following: - Cash and short term funds Note: Significant non-cash transaction during the financial period is as follows: - Re-capitalisation of dividend 1,846,824 2,595,746 (19,055) 103 (24,529) 3,984 (72,327) 658,000 1,760 (17,701) 2,397,604 (57,940) 637,392 (3,614,753) 3,371 (456,729) (167,948) (750,000) (2,173,766) (280,703) (3,372,417) 747,638 (537,815) 2,490,001 2,699,824 (3,384,786) (9,307) 2,793,065 (53,969) 12,430,270 9,036,177 8,213,683 10,952,779 9,036,177 9,036,177 10,952,779 10,952,779 - 565,000 This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Group and the Bank for the financial year ended 31 December 2016. 14
15. RHB BANK BERHAD (6171-M) NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 A1. Basis Of Preparation The interim financial statements are unaudited and has been prepared in compliance with Malaysian Financial Reporting Standard ('MFRS') 134, 'Interim Financial Reporting' issued by Malaysian Accounting Standards Board ('MASB') and should be read in conjunction with the audited financial statements of the Group and the Bank for the financial year ended 31 December 2016. (a) The accounting policies and presentation adopted by the Group and the Bank for the interim financial statements are consistent with those adopted in the audited financial statements for the financial year ended 31 December 2016, except for the adoption of the following annual improvements and amendments to MFRS which are effective for annual periods beginning on or after 1 January 2017: - Amendments to MFRS 112 'Income Taxes' Amendments to MFRS 107 'Statements of Cash Flows' The adoption of the above annual improvements and amendments do not give rise to any material financial impact to the Group and the Bank. (b) Changes in regulatory requirements (i) Companies Act 2016 The Companies Act 2016 (‘New Act’) was enacted to replace the Companies Act 1965 with the objective of creating a regulatory structure that will facilitate business and promote accountability as well as protection of corporate directors and shareholders, taking into consideration the interest of other stakeholders. The New Act was passed on 4 April 2016 by Dewan Rakyat and on 29 April 2016 by Dewan Negara and gazetted on 15 September 2016. On 26 January 2017, the Minister of Domestic Trade, Co-operatives and Consumerism announced that the date on which the New Act comes into operation (except Section 241 and Division 8 of Part III of the New Act) would be 31 January 2017. Amongst the key changes introduced in the New Act which will affect the financial statements of the Group and the Bank upon the commencement of the New Act on 31 January 2017 are: (1) abolition of the authorised capital; and (2) abolition of the concept of nominal value in shares which will also render the share premium account of a company to be no longer relevant. Instead, the amount standing in the share premium account will be recognised as part of the Bank’s share capital. During the financial period, the Group and the Bank had transferred a total of RM2,984,058,000 from its share premium account to the share capital pursuant to the New Act. (ii) Revised Policy Document on Capital Funds Bank Negara Malaysia ('BNM') had on 3 May 2017, issued a Revised Policy Document on Capital Funds and Capital Funds for Islamic Banks ('Revised Policy Document') which is applicable to banking institutions in Malaysia that covers licensed bank, licensed investment bank and licensed Islamic bank. The issuance of this Revised Policy Document has 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 Document are: (1) the removal of the requirement on maintenance of a reserve fund; and (2) the revised component of capital funds shall exclude share premium and reserve fund. The Revised Policy Document is only applicable for banking institutions operating in Malaysia. During the financial period, the Group and the Bank had transferred a total of RM4,930,714,000 and RM3,784,558,000 respectively from the statutory reserves to retained profits pursuant to the adoption of the Revised Policy Document. The adoption of the New Act and the Revised Policy Document are not expected to have any financial impact on the Group and the Bank for the current financial year as any effect of adoption, if applicable, will mainly be on disclosures to the financial statements. 15
16. RHB BANK BERHAD (6171-M) NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 A2. Auditors' Report The auditors' report for the financial year ended 31 December 2016 was not subject to any qualification. A3. Seasonal Or Cyclical Factors The business operations of the Group and the Bank have not been affected by any material seasonal or cyclical factors. A4. Exceptional Or Unusual Items There were no exceptional or unusual items for the six months ended 30 June 2017. A5. Changes In Estimates There were no material changes in estimates of amounts reported in prior financial years that have a material effect for the six months ended 30 June 2017. A6. Changes In Debt and Equity Securities There were no issuances and repayments of debt and equity securities, share buy-backs, share cancellations, shares held as treasury shares and resale of treasury shares for the six months ended 30 June 2017, other than as disclosed below: (a) RHB Islamic Bank Berhad ('RHB Islamic Bank'), a wholly-owned subsidiary had on 27 April 2017 issued Subordinated Sukuk Murabahah of RM250 million in nominal value under a RM1 billion programme. The Subordinated Sukuk Murabahah is issued for a tenure of 10 non-callable 5 years with a fixed profit rate of 4.88% per annum, payable semi-annually in arrears throughout the entire tenure. (b) The Bank had on 5 May 2017 fully redeemed its existing subordinated notes of RM750 million in nominal value under a RM3 billion multi-currency medium term note programme which was issued on 7 May 2012. (c) The Bank had on 12 May 2017 fully redeemed its existing USD500 million senior unsecured notes issued pursuant to USD500 million Euro Medium Term Note Programme in 2012. A7. Dividends Paid During the six months ended 30 June 2017, the Bank has paid a final single-tier dividend of 7.0 sen per share in respect of the financial year ended 31 December 2016, amounting to RM280,703,000, on 29 May 2017. The Board of Directors have proposed to declare an interim single-tier dividend of 5.0 sen per share in respect of the financial year ending 31 December 2017, amounting to RM200,502,000. The payment date for this interim dividend will be determined later. 16
17. l RHB BANK BERHAD (6171-M) NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 A8. Interest Income 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Group Loans and advances Money at call and deposits and placements with banks and other financial institutions Securities purchased under resale agreements Financial assets FVTPL Financial investments AFS Financial investments HTM Others Of which: Interest income accrued on impaired financial assets Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 1,507,643 1,573,469 3,008,764 3,189,476 60,158 171 7,813 198,617 155,256 7,764 1,937,422 24,800 848 6,110 166,766 170,157 8,487 1,950,637 105,897 1,305 15,617 380,504 320,626 18,479 3,851,192 49,585 1,168 11,422 342,878 354,667 21,075 3,970,271 34,382 39,455 76,393 79,125 1,411,147 1,473,270 2,813,988 2,985,561 145,034 171 7,768 182,125 150,444 6,135 1,902,824 107,193 848 6,006 142,734 162,936 3,365 1,896,352 274,115 1,305 15,496 347,780 312,721 13,187 3,778,592 214,990 1,168 11,179 290,605 340,096 8,644 3,852,243 28,249 33,220 65,741 67,345 Bank Loans and advances Money at call and deposits and placements with banks and other financial institutions Securities purchased under resale agreements Financial assets FVTPL Financial investments AFS Financial investments HTM Others Of which: Interest income accrued on impaired financial assets 17
18. l RHB BANK BERHAD (6171-M) NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 A9. Interest Expense 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Group Deposits and placements of banks and other financial institutions Deposits from customers Obligations on securities sold under repurchase agreements Recourse obligation on loans sold to Cagamas Subordinated obligations Senior debt securities Hybrid Tier-1 Capital Securities Borrowings Others Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 122,761 787,293 85,066 861,741 228,565 1,587,252 188,388 1,720,847 91 28,764 54,687 31,729 11,266 5,200 9,940 1,051,731 14,283 24,430 62,673 25,688 11,258 4,397 8,402 1,097,938 243 57,229 113,786 74,195 22,404 10,900 19,333 2,113,907 41,051 48,731 126,440 51,951 22,513 7,062 19,105 2,226,088 127,011 746,531 75,426 835,987 250,481 1,499,367 169,493 1,664,775 10,832 28,764 49,531 31,729 11,350 2,772 9,220 1,017,740 26,672 24,430 57,317 25,688 11,342 2,720 7,897 1,067,479 25,153 57,229 103,531 74,195 22,571 5,985 17,883 2,056,395 53,591 48,731 114,632 51,951 22,681 3,946 18,061 2,147,861 Bank Deposits and placements of banks and other financial institutions Deposits from customers Obligations on securities sold under repurchase agreements Recourse obligation on loans sold to Cagamas Subordinated obligations Senior debt securities Hybrid Tier-1 Capital Securities Borrowings Others 18
19. l RHB BANK BERHAD (6171-M) NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 A10. Other Operating Income 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Group Fee income - Service charges and fees - Commission - Guarantee fees - Commitment fees - Net brokerage income - Fund management fees - Unit trust fee income - Corporate advisory fees - Underwriting and arrangement fees - Other fee income - Fee and commission expenses Net gain/(loss) arising from financial assets FVTPL - Net gain/(loss) on disposal - Unrealised net (loss)/gain on revaluation - Gross dividend income Net (loss)/gain on revaluation of derivatives Net gain/(loss) on fair values hedges Net gain arising from financial investments AFS - Net gain on disposal - Gross dividend income Net gain arising from financial investments HTM - Net gain on early redemption Other income Foreign exchange gain Insurance underwriting surplus before management expenses Gain on disposal of property, plant and equipment Rental income Other operating income Other non-operating income 19 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 40,601 39,637 13,132 12,208 80,841 57,798 34,701 9,901 5,669 23,673 318,161 (55,232) 262,929 50,764 34,151 13,671 12,122 70,657 41,258 13,959 24,987 10,448 12,309 284,326 (24,015) 260,311 15,066 (2,121) 4,086 17,031 6,658 4,031 2,950 13,639 (4,646) 40,449 8,590 44,393 7,902 17,004 6,914 31,820 (9,397) 2,150 15,554 20,677 (4,828) 1,865 83,203 71,448 24,646 25,066 172,964 112,109 69,789 21,196 20,175 37,327 637,923 (106,159) 531,764 100,111 68,218 49,586 24,146 146,967 75,876 23,125 50,176 17,665 30,907 586,777 (44,230) 542,547 132 468 9,239 9,932 19,171 14,019 10,828 24,847 17,334 17,432 34,766 31,025 17,636 48,661 782 46 12,661 72 44,137 88,907 93,697 136,631 44,617 15 1,132 11,407 5,105 106,413 52,386 35 1,299 12,466 2,171 157,264 89,002 50 1,699 20,355 6,008 210,811 100,796 1,662 1,902 25,594 4,939 271,524 397,061 458,725 845,121 917,166
20. l RHB BANK BERHAD (6171-M) NOTES TO UNAUDITED INTERIM FINANCIAL STATEMENTS FOR THE SIX MONTHS ENDED 30 JUNE 2017 A10. Other Operating Income (continued) 2nd Quarter Ended 30 June 30 June 2017 2016 RM'000 RM'000 Bank Fee income - Service charges and fees - Commission - Guarantee fees - Commitment fees - Other fee income 36,978 43,577 12,592 11,550 5,417 110,114 Net gain/(loss) arising from financial assets FVTPL - Net gain/(loss) on disposal - Unrealised net (loss)/gain on revaluation Net loss on revaluation of derivatives Net gain/(loss) on fair values hedges Net gain arising from financial investments HTM - Net gain on early redemption Other income Foreign exchange gain Gain on disposal of property, plant and equipment Rental income Other operating income Other non-operating income 20 73,734 81,560 22,918 23,433 10,398 212,043 93,575 72,602 46,438 22,791 9,681 245,087 8,738 (1,085) 7,653 3,971 (165) 3,806 (23,725) 38,624 14,899 14,931 1,261 16,192 (10,851) (1,487) (9,304) (6,467) 29 Net gain arising from financial investments AFS - Net gain on disposal - Gross dividend income 48,004 36,837 12,895 11,440 4,674 113,850 Six Months Ended 30 June 30 June 2017 2016 RM'000 RM'000 (29) 77 122 8,082 1,760 9,842 13,911 3,371 17,282 15,721 1,760 17,481 29,372 3,371 32,743 782 46 12,661 72 50,902 15 3,079 8,993 301 63,290 73,900 3,042 11,254 379 88,575 91,950 18 5,834 18,090 836 116,728 148,091 1,611 5,455 23,383 1,565 180,105 180,859 222,043 364,585 467,854