Professional Documents
Culture Documents
REPORT
2012
VISION
MISSION
CONTENTS
Board of Directors
Board of Directors Profile
Management Directors
Shariah Committee Members
Chairmans Message
Managing Directors Message
Statement of Corporate Governance
Corporate Responsibility (CR) Report
Centre of Entrepreneur Development
and Research (CEDAR) Report
22
28
33
49
Intervention Programs
Success Stories of our Entrepreneurs
Calendar of Events
Financial Statement
102
SME BANK Annual Report 2012
BOARD OF
DIRECTORS
BOARD OF DIRECTORS
4
1
NON-EXECUTIVE CHAIRMAN
MANAGING DIRECTOR /
NON-INDEPENDENT EXECUTIVE DIRECTOR
COMPANY SECRETARY
BOARD OF
DIRECTORS
PROFILE
Dato Gumuri Hussain was appointed as the NonExecutive Chairman of SME Bank on 10 August 2005.
After a career with Pricewaterhouse Coopers, the
professional services firm from which he retired in
June 2002 as a Senior Partner and Deputy Chairman
of its Governance Board, he joined Penerbangan Malaysia
Berhad as the Managing Director/ Chief Executive Officer
until his retirement in 2004.
Managing Director /
Non-Independent Executive Director
Datuk Mohd Radzif Mohd Yunus was appointed
as the Managing Director of SME Bank with effect
from 1 July 2010.
Datuk Mohd Radzif comes from a diverse management
background. Prior to joining SME Bank, Datuk Mohd
Radzif was the Group Managing Director of IJN Holdings
Sdn Bhd where he had led the restructuring of Institut
Jantung Negara (IJN) in 2006. During his tenure there the
expansion of IJN was undertaken and completed. It was
also under his leadership that IJN gained accreditation
as a Centre of Excellence, the most significant
accreditation being from Joint Commission International
or JCI, an internationally recognized accreditation standard
for Healthcare.
10
11
12
Encik Ishak Ismail was appointed as an Independent NonExecutive Director of SME Bank on 3 May 2011. He has
wide experience in the field of management in the financial
sector after having served more than 30 years with the
Government as well as the private sector in various
capacities. He has held numerous important positions
throughout his tenure of service, amongst others as senior
accountant in several government departments, senior
managerial positions in Bank Negara Malaysias various
departments as well as serving as General Manager in
Arab-Malaysian Assurance Berhad and AmBank (M)
Berhad.
13
14
15
16
MANAGEMENT
DIRECTORS
MANAGEMENT DIRECTORS
18
10
10
MANAGING DIRECTOR
COMPANY SECRETARY
19
MANAGEMENT DIRECTORS
20
DIRECTOR, ENTERPRISE
DEVELOPMENT BANKING
DIRECTOR, STAKEHOLDERS
MANAGEMENT
DIRECTOR, CREDIT
& OPERATIONS
DIRECTOR, FINANCIAL
MANAGEMENT
DIRECTOR, STRATEGIC
& RISK MANAGEMENT
COMPANY SECRETARY
SME BANK Annual Report 2012
21
SHARIAH
COMMITTEE
MEMBERS
MEMBER
MEMBER
MEMBER
MEMBER
23
CHAIRMANS
MESSAGE
25
26
SUCCESS IN ADVERSITY
The year of 2012 was a tough and challenging year
for the world economy. In fact, it had been a difficult few
years for most of everybody. I consider it a matter of good
fortune on one part and on the other part a matter of
good governance, that Malaysia has been able to stay
relatively on steady footing in terms of where we are and
where we aspire to be. By fortune or by excellence, the
nations solid economic performance over the past year
can be partly attributed to the success stories of our
many SME partners. 2012 had been a year where there
were plenty of entrepreneurial successes in the SME
sector and we are exceedingly proud to have played
our part in their accomplishments.
As a nation we have navigated through difficult and
challenging terrains, there had been moments of doubt
and self-reflection, moments of wondering if 2020 was
coming too fast. But introspection stops the moment we
step out of our front doors and set out to work. When we
brush elbows with colleagues and partners who all share
the same vision and determination, there is only one thing
on our minds Lets make it great!.
I end with a heartfelt expression of gratitude and
appreciation to everyone who has contributed to the story
of SME Bank, who provided the impetus and spark, the
support and rapport that have driven our journey.
For business. For growth. For life.
27
MANAGING
DIRECTORS
MESSAGE
MANAGING DIRECTOR
29
30
Memorandums of Understanding (MoU) that were signed with the SME Bank of Russia and JFC Micro (the Micro
Business and Individual Unit of the Japan Finance Corporation) as well as international collaborations with three banks
in Turkey created excellent avenues for capacity building for our staff where technical expertise and experience were
shared for mutual advancement.
The importance SME Bank places on the youth of the nation is reflected in our Program Inovasi Usahawan Muda SME
Bank Y- Biz Challenge which was organized for secondary school students throughout Malaysia. This Signature
Program was created to specifically stimulate and promote entrepreneurship and innovation amongst those who we
believe will take our nation to greater heights of entrepreneurial endeavor.
2012 was also the year we established the Centre for Entrepreneur Development & Research (CEDAR). CEDAR aspires
to be a centre of excellence for entrepreneur development and transformation. Its mission is to continuously develop the
capability of entrepreneurs towards sustaining their business growth in support of the national economic agenda. CEDAR
was set up to address the need to build capacity not only among entrepreneurs but also among the workforce who are
involved in the development of SMEs.
RECOGNITION FOR SME BANK
SME Bank was recognized for excellence in diverse disciplines in 2012. At the Malaysia Green Tech Awards 2012,
we won for Best Supporting Green Tech Financing. We were voted by SMEs as the Most Preferred Brand for Banking
in The BrandLaureate SMEs Best Brand Awards 2012.
Recognition and acclaim at the Sahabat Negara SME Award 2011 and 2012 organized by the SME Association of
Malaysia is another indication of our strategy and approach bearing fruit. Our website was awarded a 5-Star rating
for two consecutive years (2011 and 2012) in the Malaysia Government Portals and Websites Assessment (MGPWA)
organized by Multimedia Development Corporation (MDeC). This diverse mix of awards shows that we are being
recognized for our efforts in developing a comprehensive dedicated platform for SME growth.
LOOKING FORWARD
The uncertainties in the European Union and possibly the United States lurk in our journey forward. We are optimistic
of a stable economic outlook for Malaysia, supported by domestic consumption and investments. The economic activity
generated by the SMEs can take on a significant weight in this respect, and thus it is imperative that SME Bank delivers
the required support that will be needed.
As a Development Financial Institution (DFI), the supervention role in serving the underserved and unserved market of
SMEs is inevitable, especially during periods of crisis when credit is tightened. In supporting the Government's agenda
for SMEs, we will be playing the counter-cyclical role by scaling-up lending to spur the country's economic activity, given
our mandated roles.
31
STATEMENT OF
CORPORATE
GOVERNANCE
34
For the year 2012, thirteen meetings were held. The record of attendance of Directors at the Board Meetings
for 2012 is as follows:
Name of Director
Designation
Number of Committee
Meetings
Held
Attended
Non-Executive Chairman
13
13
Managing Director
13
13
Non-Independent
Non-Executive Director
(Appointed w.e.f. 2 May 2012)
Independent
Non-Executive Director
13
13
Independent
Non-Executive Director
13
13
Independent
Non-Executive Director
13
13
Independent
Non-Executive Director
13
13
Non-Independent
Non-Executive Director
(Ceased w.e.f. 31 October 2012)
12
9*
* Reflects the number of meetings attended during the time the Director held office.
SUPPLY OF INFORMATION
Directors are provided with notices and Board papers prior to Board Meetings to give Directors time to read for informed
deliberation and decision at meetings.
All Directors have direct access to the services of the Company Secretary and the Senior Management. Independent
professional advice is also made available to Directors in furtherance to their duties in the event such services are
required.
35
TRAINING OF DIRECTORS
It is the Banks practice that each new Director is given a Board Kit and Onboarding Session to provide briefing on the
Banks history, operations and financial performance to give them first-hand understanding of the Banks operations.
The members of the Board keep abreast with developments in the banking industry by attending conferences and
seminars held in Malaysia and abroad.
The Bank also organizes AMLA talk and talks of relevant topics and encourages Directors to attend talks, training
programmes and seminars to update themselves on new developments in the business environment.
In 2012, the Directors of the Bank attended the Financial Institutions Directors Education (FIDE) Program organized
by The Iclif Leadership and Governance Centre.
BOARD COMMITTEES
There are five Board Committees established to assist the Board in discharging its duties and responsibilities,
namely the Audit and Examination Committee (AEC), Nomination Committee (NC), Remuneration Committee (RC),
Risk Management Committee (RMC) and Value Creation Committee (VCC) .
36
Designation
Number of Committee
Meetings
Held
Attended
Chairman/ Independent
Non-Executive Director
Non-Independent
Non- Executive Director
(Ceased w.e.f. 31 October 2012)
4*
4*
* Reflects the number of meetings attended during the time the Director held office.
ROLES AND RESPONSIBILITIES
The roles and responsibilities of the AEC are as follows:
(a) Recommend to the Board of Directors on the appointment of External Auditors, the fee and other matters
pertaining to the resignation or termination or change of External Auditors;
(b) Review with the External Auditors the following:
- The scope of the External Auditors audit plan.
- The system of internal accounting controls.
- The External Auditors audit report.
- The External Auditors management letter and managements response.
- The assistance given by management and staff to the External Auditors.
37
38
Designation
Number of Committee
Meetings
Held
Attended
Managing Director/
Executive Director
Non-Independent
Non-Executive Director
(Appointed w.e.f. 30 October 2012)
Independent
Non-Executive Director
Independent
Non-Executive Director
Non-Independent
Non-Executive Director
(Ceased w.e.f. 31 October 2012)
39
40
Designation
Number of Committee
Meetings
Held
Attended
Chairman/ Independent
Non-Executive Director
Non-Independent
Non-Executive Director
(Ceased w.e.f. 31 October 2012)
Independent
Non-Executive Director
Independent
Non-Executive Director
Recommending a framework of remuneration for Directors, Managing Director and Senior Management
(Management Director and above). The remuneration policy should:
Be documented and approved by the full Board and any changes thereto should be subject to the
endorsement of the full Board;
Reflect the experience and level of responsibility borne by each individual Director, Managing Director
and Senior Management (Management Director and above);
41
Recommending specific remuneration packages for Directors, Managing Director and Senior Management
(Management Director and above). The Remuneration Packages should:
Be based on an objective consideration and approved by the Full Board;
Take due consideration of the assessments of the RC of the effectiveness and contribution of the Director,
Managing Director or Senior Management (Management Director and above) concerned;
Not be decided by the exercise of sole discretion or any one individual or restricted group of individuals; and
Be competitive and is consistent with the Banks culture, objective and strategy.
iii.
42
Endorsing any changes deemed necessary to the schemes, terms of services and new terms for Executives
and Staff of SME Bank before submission to the Board of Directors for final approval.
Designation
Number of Committee
Meetings
Held
Attended
Chairman/ Independent
Non-Executive Director
Managing Director/
Executive Director
Independent
Non-Executive Director
Independent
Non-Executive Director
Independent
Non-Executive Director
Non-Independent
Non-Executive Director
(Appointed w.e.f. 30 May 2012)
43
44
Designation
Number of Committee
Meetings
Held
Attended
10
10
Independent
Non-Executive Director
10
10
Non-Independent
Non-Executive Director
(Appointed w.e.f. 30 May 2012)
Non-Independent
Non-Executive Director
(Ceased w.e.f 31 October 2012)
45
46
Board of
Directors
Risk Policies
Operational Risk
Management
Shariah Risk
Management
Compliance
47
The RMC deliberates and evaluates the reports prepared by Risk Management and Compliance on the adequacy and
effectiveness of the controls to mitigate the Banks risks and thereafter reports and provides updates to the Board, and
where appropriate, makes the necessary recommendations to the Board.
At the pinnacle of the Risk Management framework, the Board has the overall responsibility to ensure that there is proper
oversight of the management of risks in the Bank. The Board sets the risk appetite and tolerance level that is consistent
with the Banks overall business objectives and the desired risk profile.
The Bank continues to pursue efforts to inculcate a strong risk and compliance culture bank-wide at all levels of the staff
through training, clear policies, procedures, roles and responsibilities as well as effective communications. The business
activities and support functions of the Bank have been governed by the establishment of policies, guidelines and
procedures that serve as internal controls.
In addition to oversight performed by the independent functions in assessing and managing the level of risk and
compliance, a self-assessment program on risk and controls as well as on regulatory and Shariah compliance has been
implemented to strengthen the culture and awareness of risk and compliance in the Bank.
CREDIT RISK
OPERATIONAL RISK
SHARIAH RISK
MARKET RISK
LIQUIDITY RISK
48
CORPORATE
RESPONSIBILITY
REPORT
50
51
The prize-giving ceremony was held during a dinner on 14th December 2012
at the Marriott Putrajaya Hotel. The dinner was graced by the presence of the
Deputy Minister of Education, Dr. Haji Mohd Puad Zarkashi, who gave away
the prizes and also launched the SME Bank Y-Biz Challenge 2013.
Beneficiary
No. of
Beneficiaries
Units of
Computers
1.
Community Centre
25
117
2.
60
3.
Rural School
11
55
4.
Orphanage Home
5.
10
6.
52
JANUARY 2012
Datuk Seri Diraja Dr. Zambry Abd Kadir,
Chief Minister of Perak presenting a computer
to one of the recipients in Pangkor Island.
FEBRUARY 2012
Dato Noriah Kasnon, Deputy Minister KeTTHA,
presenting a computer to one of the recipients
in Sg. Besar, Selangor.
MARCH 2012
Encik Asbullah Adnan, Director of Stakeholders
Management presenting a computer to Sr. Haji
Muhammad Farid Saad, ADUN Pulau Betong
on behalf of Pusat Internet Desa Balik Pulau,
Pulau Pinang.
APRIL 2012
Tun Dr. Mahathir Mohammad, former Prime
Minister of Malaysia presenting a computer to
one of the recipients in Pulau Langkawi, Kedah.
53
FEBRUARY 2012
Dato' Paduka Mukhriz Tun Mahathir, Deputy
Minister MITI presenting school bags to students
during a Chinese New Year Celebration in
Sg. Petani, Kedah. The school bags were
donated by SME Bank.
JULY 2012
Encik Abdul Aziz Muhamad, Director, Finance
Management presenting Bubur Lambuk and
cookies to a patient of Pediatric Ward,
Pusat Perubatan Universiti Malaya.
54
AUGUST 2012
SME Bank and Kuwait Finance House (KFH)
representatives giving away Ramadhan goodie
bags to road users at the Sg. Besi Toll Plaza.
AUGUST 2012
Staff of SME Bank were delighted to receive
goodie bags from SME Banks Management
during the month of Ramadhan.
AUGUST 2012
Dato' Gumuri Hussain, Chairman, SME Bank and Datuk Mohd Radzif Mohd Yunus, Managing Director, with orphans from Pusat Jagaan Lambaian Kasih
and Rumah Nurul Hasanah during Majlis Berbuka Puasa.
OCTOBER 2012
Tan Sri Nor Mohamed Yakcop, Minister in the
Prime Ministers Department distributing Duit Raya
and food hampers to old folks in Tasek Gelugor,
Penang.
NOVEMBER 2012
One of the recipients receiving a food basket
from Encik Tukiman Nail, YDP Majlis Daerah Hulu
Selangor during the Deepavali Program in
Kg.Kerling, Hulu Selangor.
55
56
57
CEDAR
60
CEDAR was established to complement the developmental role of SME Bank with a vision to become a Centre
of Excellence for entrepreneur development and transformation. Its mission is to continuously develop the capabilities
of entrepreneurs towards sustaining their business growth in support of the national economic agenda.
Direct Access to
SME Bank Financing
Knowledge-sharing
between SME Bankers
and Clients
Value-based
Development of
Entrepreneurs
Case-based
Training
Methodology
Customized
and
Structured
Training Modules
USP
Unique Selling
Propositions
of CEDAR
Strong Research
Orientation
Personalized
Coaching and
Mentoring
61
Dato Adzmy
Abdullah
Tuan Haji
Ishak Hashim
Corporate Affairs
and Services
62
Research and
Development
Training and
Consultancy
Marketing
and Business
Development
Entrepreneur
and DFI Bankers
Development
FOCUS
AREAS
Research and
Publications
Seminars and
Conferences
CEDAR aims to complement the existing training and consultancy service providers in the marketplace, with a particular
focus on entrepreneur development. To achieve its goals, the centre continuously seeks collaborations with prestigious
and established institutions to establish to set up joint programmes. Building regional and international networks that will
aid in the development of entrepreneurs and SMEs is another vital strategic initiative.
63
Universiti
Teknologi
Petronas
Universiti
Kebangsaan
Malaysia
International
Islamic
University
Malaysia
Universiti
Putra Malaysia
Universiti
Tun Abdul
Razak
ISIS
Malaysia
Oil, gas
and energy
Healthcare
Education
Tourism and
Hospitality
Wholesale
and Retail
Green
Technology
On entrepreneur development, the training and consultancy programmes of CEDAR have been formulated based
on the stages of growth of the SMEs, with a focus on addressing its needs at each of these stages. A hybrid learning
strategy of face-to-face and online sessions are used to deliver its training programmes, using various teaching
pedagogy of inquiring, sharing, guiding and coaching, real-life case studies, role playing, team-based learning,
as well as share-learn-teach approach and experiential learning processes.
64
Harvesting
Diversifying
Wealth
Creation
Stage 7
Expansion
Turning Auto
- Pilot on
Stage 6
Building a
Balanced
Business
Stage 5
Large SMEs
Medium
Small
Sustainability
Growth
Capture Market
Share and Getting
Out of Chaos
Stage 4
Survival
Hand-to-Mouth
Strategy
Stage 3
Mastery of Essential
Knowledge/ Skills
Stage 2
Identifying and
Refining Idea
Potential
Stage 1
Micros
Foundation
Start-ups
Ideation
M
A
T
U
R
I
T
Y
G
R
O
W
T
H
I
N
F
A
N
C
Y
65
STAGE
STRATEGY
LARGE
SMEs
HARVESTING
(Diversifying
Wealth Creation)
MEDIUM
EXPANSION
(Turning AutoPilot On)
GROWTH
MATURITY
PHASE/ TARGET
SMALL
INFANCY
66
Harvesting Strategies
Option of Turning
Your Business Public
Financial Management
Business and
Systemization
Succession Planning
Business Modeling
Strategic Business
Planning
Professional Business
Practices
Financial Management
Strategic Business
Planning
Business Turnaround
Programme
SUSTAINABILITY
(Building a Balanced
Business)
GROWTH
(Capture Market Share
and Getting Out
of Chaos)
Professional Business
Practices
Financial Management
Managing Entrepreneurial
Growth
SURVIVAL
(Hand-to-Mouth Strategy)
Young Entrepreneur
Development
Intel@ Learn Easy Steps
Simple Steps to Profit
Financial Management
New Venture Creation
and Business Modeling
Professional Business
Practices
FOUNDATION
(Mastery of Essential
Knowledge/ Skills)
PIUS
SPED
Young Entrepreneur
Development
IDEATION
(Identifying and Refining
Idea Potential)
PIUS
SPED
Young Entrepreneur
Development
MICROS
START-UPS
STRATEGIC PROGRAMMES
Business Modeling
Business Modeling
RESEARCH
AND
DEVELOPMENT
KNOWLEDGE
MANAGEMENT
CONSULTANCY
(COACHING AND
MENTORING)
STRATEGIC
COLLABORATION
AND
NETWORKING
OTHERS
- EVENTS AND
PUBLICATIONS
Event management
Joint collaborative programmes with universities/ ADFIMI/ ADFIAP
Reports, proceedings and research findings publication on SME/
entrepreneurship development
Human capital and entrepreneurial development is one of the six focus areas in the Governments SME Masterplan
2012-2020. CEDAR was established to address the need to build the capacity and capability of not only the
entrepreneurs but also the workforce (including DFI staff) who are involved in the development of SME entrepreneurs,
both locally and internationally.
The Government is committed in the development of SMEs, particularly the Bumiputera. Being mindful that they lack
business experience and exposure, it is important that support activities and services such as training, counselling,
advisory service, and various knowledge advancement efforts are implemented to ensure comprehensive
solutions for the development of these entrepreneurs.
CEDAR will capitalise on the experiences of SME Bank as an industry player that has been directly involved in the
entrepreneur financing and development sector for many years. This is a competitive advantage that can be utilized
for the benefit of all entrepreneurs and SMEs.
67
29
16
30-31
OCTOBER
2012
NOVEMBER
2012
DECEMBER
2011
SEPTEMBER
2012
OCTOBER
2012
Ministry
of Finance
(MOF) approval
on SME Banks
subsidiaries
Submission
to Bank Negara
Malaysia
seeking consent
to establish
CEDAR
FEBRUARY
2013
FEBRUARY
2013
15-16
FEBRUARY
2013
21
FEBRUARY
2013
25
FEBRUARY
2013
CEDAR kicked
off a series of
roadshows for
entrepreneurs
in conjunction
with the launching
of SME Banks
Urban Transformation
Centre (UTC) in Ipoh
and Young
Entrepreneur
Fund (YEF) by
Prime Minister
of Malaysia
CEDAR roadshow
for entrepreneurs in
Klang Valley in
conjunction with the
launching of SME
Development Scheme
by Minister of
International Trade
and Industry of
Malaysia
CEDAR
roadshow for
entrepreneurs
in Kota Kinabalu,
Sabah
MILES
68
12
14
16
19-20
NOVEMBER
2012
DECEMBER
2012
JANUARY
2013
JANUARY
2013
JANUARY
2013
Presentation
on CEDARs
establishment
to Bank Negara
Malaysia
Preview session
on Certificate
of Islamic Banking
and Finance (CIBF)
attended by all
executives of
SME Bank
1st cohort of
SME Bank staff
attended the
Certificate of Islamic
Banking and Finance
(CIBF) first lecture
27
16
TONES
FEBRUARY
2013
MARCH
2013
MARCH
2013
MARCH
2013
APRIL
2013
CEDAR
roadshow for
entrepreneurs in
Kuching, Sarawak
CEDAR
roadshow for
entrepreneurs
in Miri, Sarawak
CEDAR
roadshow for
entrepreneurs
in Kota Bharu,
Kelantan
CEDAR
roadshow for
entrepreneurs
in Johor Bahru,
Johor
CEDAR received
its certificate of
incorporation
as a wholly-owned
subsidiary of
SME Bank Malaysia
69
INTERVENTION
PROGRAMS
2)
3)
To improve customers' performance by ensuring that their businesses grow, sustain and expand or turn around
4)
71
SUCCESS
STORIES OF OUR
ENTREPRENEURS
74
75
Md Idris Ab Aziz
Managing Director
76
77
78
79
80
Managing Director
81
82
83
CALENDAR
OF EVENTS
JANUARY
Study visit from the Nigerian Delegation
85
FEBRUARY
Media Luncheon with Media Prima
86
FEBRUARY
Launching of the Internal Facebook & Smile Campaign
87
MARCH
Launch of the Service Transformation for Excellence Performance (S.T.E.P)
88
APRIL
Internal Soft Launching 2nd Chance (SRS) Program
Management Directors during the Internal Soft Launching of 2nd Chance (SRS) Programme on 19th April 2012
at SME Bank Auditorium, Menara SME Bank.
89
MAY
Staff Appreciation Night
90
MAY
SME Bank Family Day
SME Bank Family Day was held on 12th May 2012 at Bukit Kiara Equestrian & Country Resort, Kuala Lumpur.
Launching of the Internalising Business Mindset & Shared Values Program (In-Minds)
91
MAY
Study Visit from the Department of Trade and Industry, South Africa
Study Visit from the Department of Trade and Industry, South Africa at Menara SME Bank on 28th May 2012.
The first carnival organized by SME Bank to help SMEs promote their businesses as well as creating awareness of SME
Banks services and financial assistance at Suria Mall, Kota Kinabalu.
92
JUNE
Launching of Bumiputra Entrepreneur of SME Bank in Teras (B.E.S.T)
93
JULY
SME Bank-ADFIMI International Development Forum 2012
94
JULY
SUKUK Signing Ceremony
Dato Seri Ahmad Husni Hanadzlah, Minister of Finance II witnessed the Signing Ceremony of SME Banks RM3 Billion
Government Guaranteed Sukuk. He also officiated the 1-SME Rationalised Fund and launched the SME Revitalisation
Scheme on 20th July 2012 at the Mandarin Oriental Hotel, Kuala Lumpur.
95
AUGUST
Champions of In-Minds
Presentation of certificates to the Champions of In-Minds on 8th August 2012 at Menara SME Bank.
Kurma Distribution Program in Collaboration with Kuwait Finance House (M) Berhad
96
SEPTEMBER
Official Opening of Sarawak Trade and Industry Seminar
97
SEPTEMBER
Customer Engagement Sessions
98
OCTOBER
MAHA 2012
99
NOVEMBER
Launching of CEDAR & MoU Agreement Signing Ceremony
100
DECEMBER
Exchanging of MoU between SME Bank and MTDC
Jelajah Dagang
101
FINANCIAL
STATEMENTS
Directors' Report
Statement by Directors
Statutory Declaration
Shariah Committee's report
Independent Auditors' Report
110
FINANCIAL STATEMENTS
Statements of Financial Position
Statements of Consolidated Financial Position
Statements of Financial Position
Statement of Comprehensize
Statements of Cash Flows
Notes to the Financial Statements
120-122
DIRECTORS' REPORT
DIRECTORS' REPORT
The Directors are pleased to present their report together with the audited financial statements of the Group and of the
Bank for the financial year ended 31 December 2012.
PRINCIPAL ACTIVITIES
The principal activities of the Bank are those of development banking, both Islamic and Conventional and related financial
services.The principal activities of the subsidiaries and associates are described in Note 10 and Note 11 respectively to
the financial statements. There have been no significant changes in the nature of the Group's and the Bank's activities
during the financial year.
RESULTS
Group
RM'000
Bank
RM'000
88,063
(15,401)
1,160
73,822
122,947
(14,649)
1,160
109,458
73,822
73,822
109,458
109,458
There were no material transfers to or from reserves or provisions during the financial year other than as disclosed in the
financial statements.
In the opinion of the Directors, the results of the operations of the Group and of the Bank during the financial year were
not substantially affected by any item, transaction or event of a material and unusual nature.
104
DIVIDENDS
At the forthcoming Annual General Meeting, a tax exempt dividend in respect of the financial year ended 31 December
2012, of 0.5% on 1,350,000,000 ordinary shares, amounting to a dividend payable of RM6,750,000 (0.50 sen net per
ordinary share) will be proposed for the shareholders' approval. The financial statements for the current financial year do
not reflect this proposed dividend. Such dividend, if approved by the shareholders, will be accounted for in equity as an
appropriation of retained profits in the financial year ending 31 December 2013.
DIRECTORS
The names of the Directors of the Bank in office since the date of the last report and at the date of this report are:
Y.Bhg. Dato Gumuri bin Hussain (Chairman)
Y.Bhg. Datuk Mohd Radzif bin Mohd Yunus
En. Khairuzzaman Muhammad
Y.Bhg. Dato' Adzmy bin Abdullah
En. Ishak bin Ismail
Y.Bhg. Datuk Mohd Nasir bin Ahmad
Y.Bhg. Dato' Abdul Ghafar bin Musa (appointed on 2 May 2012)
En. Maliami bin Hamad (resigned on 31 October 2012)
DIRECTORS' BENEFITS
Neither at the end of the financial year, nor at any time during that year, did there subsist any arrangement to which the
Bank was a party, whereby the Directors might acquire benefits by means of the acquisition of shares in or debentures
of the Bank or any other body corporate.
Since the end of the previous financial year, no Director has received or become entitled to receive any benefit (other than
benefits included in the aggregate amount of emoluments received or due and receivable by the Directors as shown in
Note 28 or the fixed salary of a full time employee of the Bank) by reason of a contract made by the Bank or a related
corporation with any Director or with a firm of which the Director is a member, or with a company in which the Director
has a substantial financial interest.
DIRECTORS' INTERESTS
According to the register of directors' shareholdings, none of the Directors in office as at 31 December 2012 had any
interest in the ordinary shares of the Bank and of its related corporations during the financial year.
105
to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of
provision for doubtful debts and satisfied themselves that all known bad debts had been written off and that
adequate provision had been made for doubtful debts; and
(ii)
to ensure that any current assets which were unlikely to realise their value as shown in the accounting records
in the ordinary course of business had been written down to an amount which they might be expected so to
realise.
(b) At the date of this report, the Directors are not aware of any circumstances which would render:
(i)
the amount written off for bad debts or the amount of the provision for doubtful debts in the financial statements
of the Group and of the Bank inadequate to any substantial extent; and
(ii)
the values attributed to the current assets in the financial statements of the Group and of the Bank misleading.
(c) At the date of this report, the Directors are not aware of any circumstances which have arisen which would render
adherence to the existing method of valuation of assets or liabilities of the Group and of the Bank misleading or
inappropriate.
(d) At the date of this report, the Directors are not aware of any circumstances not otherwise dealt with in this report or
financial statements of the Group and of the Bank which would render any amount stated in the financial statements
misleading.
(e) At the date of this report, there does not exist:
(f)
106
(i)
any charge on the assets of the Group or of the Bank which has arisen since the end of the financial year which
secures the liabilities of any other person; or
(ii)
any contingent liability of the Group or of the Bank which has arisen since the end of the financial year.
no contingent or other liability has become enforceable or is likely to become enforceable within the period of
twelve months after the end of the financial year which will or may affect the ability of the Group or of the Bank
to meet their obligations when they fall due; and
(ii)
no item, transaction or event of a material and unusual nature has arisen in the interval between the end of the
financial year and the date of this report which is likely to affect substantially the results of the operations of the
Group or of the Bank for the financial year in which this report is made.
AUDITORS
The auditors, Ernst & Young, have expressed their willingness to continue in office.
Signed on behalf of the Board in accordance with a resolution of the Directors dated 28 March 2013.
107
STATEMENT BY DIRECTORS
108
STATUTORY DECLARATION
109
The contracts, transactions and dealings entered into by SME Bank during the financial year ended 31
December 2012 that we have reviewed are in compliance with the Shariah principles;
ii)
The allocation of profit and charging of losses relating to Islamic investment accounts conform to the basis
that had been approved by us in accordance with Shariah principles; and
iii)
We, the members of the Shariah Committee of SME Bank, do hereby confirm that the Islamic Banking operations
of SME Bank for the financial year ended 31 December 2012 have been conducted in conformity with the Shariah
principles.
We beg Allah the Almighty to Grant us all the Success and Straight-Forwardness and Allah Knows Best.
110
AUDITORS RESPONSIBILITY
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with approved standards on auditing in Malaysia. Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider
internal control relevant to the entitys preparation of financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entitys internal control. An audit also includes evaluating the appropriateness of accounting policies
used and the reasonableness of accounting estimates made by the directors, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
111
OTHER MATTERS
This report is made solely to the members of the Bank, as a body, in accordance with Section 174 of the Companies
Act, 1965 in Malaysia and for no other purpose. We do not assume responsibility to any other person for the content
of this report.
112
AS AT 31 DECEMBER 2012
GROUP
ASSETS
Cash and short term funds
Deposits and placements with banks and
other financial institutions
Available-for-sale financial investments
Held-to-maturity financial investments
Loans, advances and financing
Tax recoverable
Other assets
Investments in associates
Property, plant and equipment
Investment properties
Deferred tax asset
Assets of a subsidiary classified as
held for sale
TOTAL ASSETS
LIABILITIES
Deposits from customers
Deposits from other financial institutions
Medium term note
Term loans
Other liabilities
Government funds
Liabilities of a subsidiary classified as
held for sale
TOTAL LIABILITIES
EQUITY
Share capital
Accumulated losses
Other reserves
Equity attributable to owner of the Bank
Non-controlling interests
TOTAL EQUITY
Note
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
1,462,147
3,347,701
1,975,145
5
6
7
8
867,028
937,073
263,967
3,819,974
15,769
87,478
7,321
147,778
143,276
16,596
7,768,407
64,648
410,734
197,565
3,516,321
8,891
130,619
57,537
129,635
159,988
34,613
8,058,252
529,212
232,464
70,129
3,274,045
16,313
136,450
56,243
133,483
162,878
6,586,362
15
7,768,407
8,058,252
66,025
6,652,387
16
17
18
19
20
21
2,293,395
325,000
500,000
3,078,091
228,945
312,574
6,738,005
3,153,347
3,413,674
187,551
345,518
7,100,090
1,664,055
3,598,333
214,472
366,173
5,843,033
15
6,738,005
7,100,090
2,955
5,845,988
22
1,350,000
(331,616)
12,018
1,030,402
1,030,402
1,350,000
(404,429)
12,591
958,162
958,162
1,350,000
(556,591)
13,005
806,414
(15)
806,399
7,768,407
8,058,252
6,652,387
1,352,015
939,900
1,351,936
9
11
12
13
14
23
33
113
BANK
ASSETS
Cash and short term funds
Deposits and placements with banks and
other financial institutions
Available-for-sale financial investments
Held-to-maturity financial investments
Loans, advances and financing
Tax recoverable
Other assets
Investments in subsidiaries
Investments in associates
Property, plant and equipment
Investment properties
Deferred tax asset
Note
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
1,461,752
3,347,193
1,974,736
5
6
7
8
867,028
937,073
263,967
3,819,974
15,769
86,789
-*
750
147,778
143,276
16,596
7,760,752
64,648
410,734
197,565
3,516,321
8,890
130,023
-*
8,305
129,635
159,988
34,613
8,007,915
529,212
232,464
70,129
3,274,045
16,313
135,746
-*
8,305
133,483
162,878
6,537,311
9
10
11
12
13
14
15
7,760,752
8,007,915
63,140
6,600,451
LIABILITIES
Deposits from customers
Deposits from other financial institutions
Medium term note
Term loans
Other liabilities
Government funds
TOTAL LIABILITIES
16
17
18
19
20
21
2,293,395
325,000
500,000
3,078,091
228,170
312,574
6,737,230
3,153,347
3,413,674
179,730
345,518
7,092,269
1,664,055
3,598,333
206,649
366,173
5,835,210
22
1,350,000
(338,496)
12,018
1,023,522
1,350,000
(446,945)
12,591
915,646
1,350,000
(597,764)
13,005
765,241
7,760,752
8,007,915
6,600,451
1,352,015
939,900
1,351,936
* Denotes RM2
EQUITY
Share capital
Accumulated losses
Other reserves
TOTAL EQUITY
23
114
33
2011
RM'000
2012
RM'000
2011
RM'000
24
25
141,540
(112,235)
29,305
199,957
(108,028)
91,929
141,540
(112,235)
29,305
199,957
(108,028)
91,929
38
26
170,298
37,362
236,965
(141,234)
95,731
115,839
35,765
243,533
(170,212)
73,321
170,298
69,010
268,613
(122,634)
145,979
115,839
35,751
243,519
(167,964)
75,555
(11,657)
(11,375)
72,699
8,535
(586)
42,198
123,468
(11,657)
(11,375)
122,947
8,535
(586)
42,198
125,702
15,364
1,294
88,063
(15,401)
1,160
124,762
30,201
(5,086)
122,947
(14,649)
1,160
125,702
30,203
(5,086)
73,822
149,877
109,458
150,819
73,822
2,285
152,162
109,458
150,819
(1,582)
(414)
(1,582)
(414)
(1,582)
(414)
(1,582)
(414)
72,240
151,748
107,876
150,405
Note
Interest income
Interest expense
Net interest income
Gross income from Islamic
banking business
Other operating income
Net income
Other operating expenses
Operating profit
(Allowance)/writeback for
impairment loss:
- loans, advances and financing
- financial investments
Writeback of provision for liabilities
Share of profit after tax of equity
accounted associated companies
Profit before tax
expense and zakat
Tax expense/ (credit)
Zakat
Profit from continuing
operation, net of tax
Profit from discontinued
operation, net of tax
Profit for the year, net of tax
Other comprehensive loss:
Unrealised loss on revaluation
of available-for-sale financial
investments
Other comprehensive loss for
the year
Total comprehensive income
for the year
BANK
27
29
30
31
31
115
BANK
2012
RM'000
2011
RM'000
2012
RM'000
2011
RM'000
73,822
73,822
152,162
152,162
109,458
109,458
150,819
150,819
72,240
72,240
151,748
151,748
107,876
107,876
150,405
150,405
8.11
11.17
32
5.47
11.10
32
0.17
116
117
2,477
(1,582)
(1,582)
895
1,350,000
1,350,000
At 31 December 2012
2,477
1,350,000
Group
NonNon- distributable
distributable
profit Distributable
Share available-for- equalisation
general Accumulated
capital sale reserve
reserve
reserve
losses
RM'000
RM'000
RM'000
RM'000
RM'000
1,009
1,009
1,009
-
10,114
10,114
10,114
(331,616)
72,813
(1,009)
73,822
(404,429)
48,612
(453,041)
1,030,402
72,240
73,822
(1,582)
958,162
48,612
909,550
Total
RM'000
Noncontrolling
interests
RM'000
1,030,402
72,240
73,822
(1,582)
958,162
48,612
909,550
Total
equity
RM'000
118
Unrealised loss on
revaluation of available-forsale financial investments
Net profit for the year
Total comprehensive income
for the year
Effect of deconsolidation of
a subsidiary
At 31 December 2011
Group
(414)
2,477
1,350,000
2,891
1,350,000
(414)
-
2,891
1,350,000
10,114
10,114
10,114
(404,429)
152,162
152,162
(556,591)
10,077
(566,668)
Non- distributable
distributable
profit Distributable
Share available-for- equalisation
general Accumulated
capital sale reserve
reserve
reserve
losses
RM'000
RM'000
RM'000
RM'000
RM'000
Non-
958,162
151,748
(414)
152,162
806,414
10,077
796,337
Total
RM'000
15
-
(15)
(15)
Noncontrolling
interests
RM'000
15
958,162
151,748
(414)
152,162
806,399
10,077
796,322
Total
equity
RM'000
119
2,891
2,891
(414)
(414)
2,477
1,350,000
1,350,000
1,350,000
(1,582)
(1,582)
895
1,350,000
2,477
2,477
1,350,000
1,350,000
Share
capital
RM'000
Nondistributable
available-forsale reserve
RM'000
Bank
1,009
1,009
1,009
Nondistributable
profit
equalisation
reserve
RM'000
10,114
10,114
10,114
10,114
10,114
10,114
Distributable
general
reserve
RM'000
150,819
150,819
(446,945)
(607,841)
10,077
(597,764)
(1,009)
109,458
108,449
(338,496)
(495,557)
48,612
(446,945)
Accumulated
losses
RM'000
(414)
150,819
150,405
915,646
755,164
10,077
765,241
(1,582)
109,458
107,876
1,023,522
867,034
48,612
915,646
Total
equity
RM'000
BANK
2012
RM'000
2011
RM'000
2012
RM'000
2011
RM'000
88,063
124,762
122,947
125,702
2,359
88,063
127,121
122,947
125,702
(303)
(91)
17,794
(5)
(303)
(91)
(40,231)
(5)
5,723
5,652
100
486
-
5,723
5,652
100
486
-
30,659
(51,451)
30,659
(51,451)
32,225
85,764
32,225
85,764
(51,227)
(15,364)
(42,848)
(1,294)
(51,227)
-
(42,848)
-
11,225
12,840
11,225
12,840
3,661
2,890
3,661
2,890
122
(22,022)
187,335
(355,245)
(1,246)
(20,394)
148,128
(326,455)
(2,339)
122
(22,022)
187,335
(355,245)
(1,246)
(20,394)
148,128
(326,455)
(2,339)
(63,039)
(67,457)
(70,816)
(67,582)
120
BANK
2012
RM'000
2011
RM'000
2012
RM'000
2011
RM'000
7,998
(330,549)
8,456
(296,472)
8,842
(330,549)
(194)
(296,472)
(652,380)
(859,952)
464,564
1,489,292
(652,380)
(859,952)
464,564
1,489,292
325,000
36,545
(13,327)
325,000
43,591
11,204
(1,536,377)
(176,338)
350,461
(3,484)
(187)
1,585,056
(140,146)
338,508
3,017
(1,918)
(1,536,264)
(176,338)
350,461
(3,484)
(187)
1,600,812
(140,146)
338,508
3,017
(1,918)
(1,365,925)
1,784,517
(1,365,812)
1,800,273
1,219
-
2,339
(1,230)
1,219
-
2,339
(1,230)
(150,000)
(2,155,000)
(1,096,706)
(150,000)
(2,155,000)
(1,096,706)
(16,439)
1,552,453
(8,992)
790,000
(16,439)
1,552,453
(8,992)
790,000
63,140
63,140
1,145
539
1,230
-
1,145
539
1,230
-
121
BANK
2012
RM'000
2011
RM'000
2012
RM'000
2011
RM'000
1,260
1,260
42,135
42,135
(722,688)
(250,219)
(722,688)
(250,219)
556,549
(853,490)
500,000
57,378
(234,975)
-
556,549
(853,490)
500,000
57,378
(234,975)
-
203,059
(177,597)
203,059
(177,597)
(1,885,554)
1,356,701
(1,885,441)
1,372,457
3,347,701
1,991,000
3,347,193
1,974,736
1,462,147
3,347,701
1,461,752
3,347,193
1,462,147
1,462,147
3,347,701
3,347,701
1,461,752
1,461,752
3,347,193
3,347,193
122
Corporate information
Bank Perusahaan Kecil dan Sederhana Malaysia Berhad ("SME Bank or "the Bank") is a public limited liability
company, incorporated and domiciled in Malaysia.
The registered office of the Bank is at Aras 23, Menara SME Bank, Jalan Sultan Ismail, 50250 Kuala Lumpur.
Principal place of business is at Menara SME Bank, Jalan Sultan Ismail, 50250 Kuala Lumpur.
The immediate and ultimate holding company of the Bank during the financial year is Ministry of Finance
Incorporated.
The Bank is principally engaged in development banking and related financial services including Islamic banking.
There have been no significant changes in the nature of the principal activities during the financial year.
The principal activities of the subsidiaries and associates are described in Note 10 and Note 11, respectively.
The financial statements were authorised for issue by the Board of Directors in accordance with a resolution
of the Directors on 28 March 2013.
2.
123
2.
Exemption applied
MFRS 1 allows first-time adopters certain exemptions from the retrospective application of certain MFRS.
The Bank has elected not to apply any of the exemptions.
(ii)
Estimates
The estimates at 1 January 2011 and 31 December 2011 are consistent with those made for the same
dates in accordance with FRS. The estimates used by the Bank to present these amounts in accordance
with MFRS reflect conditions at 1 January 2011, the transition date to MFRS and as of 31 December 2011.
124
2.
Description
Amendments to MFRS 101 - Presentation of Items of Other
Comprehensive Income
MFRS 10 Consolidated Financial Statements
MFRS 11 Joint Arrangements
MFRS 12 Disclosure of Interests in Other Entities
MFRS 13 Fair Value Measurement
MFRS 119 Employee Benefits
MFRS 127 Separate Financial Statements
MFRS 128 Investment in Associate and Joint Ventures
MFRS 127 Consolidated and Separate Financial Statements
(IAS 27 as revised by IASB in December 2003)
Amendments to MFRS 7 - Offsetting Financial Assets
and Financial Liabilities
Amendments to MFRS 1 - First-time Adoption of Malaysian
Financial Reporting Standards - Government Loan
Amendments to MFRS 1 - First-time Adoption of Malaysian
Financial Reporting Standards (Annual Improvements
2009-2011 Cycle)
Amendments to MFRS 116 - Property, Plant and Equipment
(Annual Improvements 2009-2011 Cycle)
Amendments to MFRS 132 - Financial Instruments:
Presentation (Annual Improvements 2009-2011 Cycle)
Amendments to MFRS 10 - Consolidated Financial Statements
Transition Guidance
Amendments to MFRS 11 - Joint Arrangements: Transition
Guidance
Amendments to MFRS 12 - Disclosure of Interest in Other Entities
Transition Guidance
Amendments to MFRS 132 - Offsetting Financial Assets
and Financial Liabilities
Amendments to MFRS 10, MFRS 12 and MFRS 127 : Investment
Entities
MFRS 9 Financial Instrument
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2013
1 January 2014
1 January 2015
The directors expect that the adoption of the above standards and interpretations
will have no material impact on the financial statements in the period of initial application.
125
2.
126
2.
127
2.
128
2.
129
2.
130
50 years
3 - 10 years
3 years
5 years
10 - 15 years
2.
131
2.
132
2.
(b)
(c)
Held-to-maturity investment
Financial assets with fixed or determinable payments and fixed maturity are classified as held-tomaturity when the Group has the positive intention and ability to hold the investment to maturity.
Subsequent to initial recognition, held-to-maturity investments are measured at amortised cost
using the effective interest method. Gains and losses are recognised in profit or loss when the
held-to-maturity investments are derecognised or impaired, and through the amortisation process.
133
2.
Loans and receivables and other financial assets carried at amortised costs
To determine whether there is objective evidence that an impairment loss on financial assets has been
incurred, the Group and the Bank consider factors such as the probability of insolvency or significant
financial difficulties of the debtor and default or significant delay in payments. For certain categories of
financial assets, such as loan receivables, assets that are assessed not to be impaired individually are
subsequently assessed for impairment on a collective basis based on similar risk characteristics.
Objective evidence of impairment for a portfolio of receivables could include the Groups and the
Bank's past experience of collecting payments, an increase in the number of delayed payments in the
portfolio past the average credit period and observable changes in national or local economic
conditions that correlate with default on receivables.
134
2.
Loans and receivables and other financial assets carried at amortised costs (cont'd.)
If any such evidence exists, the amount of impairment loss is measured as the difference between
the assets carrying amount and the present value of estimated future cash flows discounted at the
financial assets original effective interest rate. The impairment loss is recognised in profit or loss.
The carrying amount of the financial asset is reduced by the impairment loss directly for all financial
assets with the exception of loans and receivables, where the carrying amount is reduced through
the use of an allowance account. When loans and receivables become uncollectible, it is written off
against the allowance account.
If in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognised, the previously
recognised impairment loss is reversed to the extent that the carrying amount of the asset does not
exceed its amortised cost at the reversal date. The amount of reversal is recognised in profit or loss.
(b)
(c)
135
2.
136
2.
To finance the purchase of investment properties. The funds received are initially recognised at their
fair values in the statements of financial position as deferred income where there is reasonable
assurance that the funds will be received and all attaching conditions will be complied with.
Government funds that compensate the Group and the Bank for expenses incurred are recognised
as income over the periods necessary to match the grant on a systematic basis to the costs that it is
intended to compensate. Government funds that compensate the Group and the Bank for the cost
of an asset are recognised as income on a systematic basis over the useful life of the asset.
(ii)
To finance loans for specific projects and utilise against credit losses and charges arising from the
financing of these projects. The Government funds are recognised at the fair value of the consideration
received in the statements of financial position. The interest income earned on the loans financed by
the government funds and any credit losses or charges as a result of the loans defaulted are
recognised and utilised against the funds.
137
2.
138
2.
(i)
139
2.
(b)
(c)
Dividend income
Dividend income is recognised when the Group's and the Bank's right to receive payment are
established.
(d)
Fee income
Fee income from bank guarantee arrangement and letter of credit is recognised on an accrual basis.
(e)
Rental income
Rental income is accounted for on a straight-line basis over the term of the lease. The aggregate cost
of incentives provided to lessees are recognised as a reduction of rental income over the lease term
on a straight-line basis.
140
2.
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid
to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted by the reporting date.
Current taxes are recognised in profit or loss except to the extent that the tax relates to items
recognised outside profit or loss, either in other comprehensive income or directly in equity.
(b)
Deferred tax
Deferred tax is provided using the liability method on temporary differences at the reporting date
between the tax bases of assets and liabilities and their carrying amounts for financial reporting
purpose.
Deferred tax liabilities are recognised for all temporary differences, except;
- where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability
in a transaction that is not a business combination and at the time of transaction, affects neither the
accounting profit nor taxable profit or loss; and
- in respect of taxable temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, where the timing of the reversal of the temporary differences can be
controlled and it is probable that the temporary differences will not reverse in the foreseeable future.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised deferred tax asset are reassessed at each reporting
date and are recognised to the extent that it has become probable that future taxable profit will allow
the deferred tax assets to be utilised.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year
when the asset is realised or the liability is settled, based on tax rates and tax laws that have been
enacted or substantively enacted at the reporting date.
141
2.
Deferred tax
Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss.
Deferred tax items are recognised in correlation to the underlying transaction either in other
comprehensive income or directly in equity and deferred tax arising from a business combination is
adjusted against goodwill on acquisition.
Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.
2.21 Zakat
This represents business zakat. It is an obligatory amount payable by the Group and the Bank to comply with
the principles of Shariah. Zakat is computed 2.5% on assets and liabilities eligible for zakat, as determined
using the adjusted growth method.
2.22 Foreign currency
(a)
(b)
142
2.
143
2.
144
(i)
The creation of PER establishes an obligation to manage distribution to the Investment Account
Holder ("IAH") from a Shariah perspective. The PER of the IAH is to be classified as liability and
recognised at cost and subsequent apportionments will be treated as liability and recognised at cost.
Subsequent apportionments will be recognised in the profit or loss. The eventual distribution of PER as
profit distributable to IAH will be treated as an outflow of funds due to the settlement of obligation to
the IAH.
(ii)
The PER of the IBI is to be classified as a separate reserve in equity. Subsequent apportionments from
and distributions to retained profits will be treated as transfers between reserves.
3.
Going concern
The Bank's management has made an assessment of the Bank's ability to continue as a going
concern and is satisfied that the Bank has the resources to continue in business for the foreseeable
future. Furthermore, the management is not aware of any material uncertainties that may cast
significant doubt upon the Bank's ability to continue as a going concern. Therefore, the financial
statements continue to be prepared on the going concern basis.
(b)
3.2
145
3.
(b)
146
(i)
Determination whether its investment is impaired following certain indicators or triggers such as,
amongst others, prolonged decline in fair value, significant financial difficulties of the issuer or
obligors, the disappearance of an active trading market and deterioration of the credit quality
of the issuers of obligors.
(ii)
3.
(d)
The Bank determines whether its investments are impaired following certain indications of
impairment such as, amongst others, prolonged shortfall between market value and carrying
amount, significant changes with adverse defects on the investment and deteriorating financial
performance of the investment due to observed changes and fundamentals.
(ii)
Depending on their nature and industries in which the investments relate to, judgements are made
by management to select suitable methods of valuation such as, amongst others, discounted
cash flow and realisable net asset value.
Once a suitable method of valuation is selected, management makes certain assumptions concerning
the future to estimate the recoverable amount of the investment. These assumptions and other key
sources of estimation uncertainty at the reporting date, may have significant risk of causing a material
adjustment to the carrying amounts of the investments within the next financial year. Depending on
the specific individual investment, assumptions made by management may include, amongst others,
assumptions on expected future cash flows, revenue growth, discount rate used for the purpose of
discounting future cash flow which incorporates the relevant risks, and expected future outcome of
certain past events.
147
4.
BANK
2012
RM'000
2011
RM'000
2012
RM'000
2011
RM'000
39,464
23,487
39,069
22,979
1,422,150
533
1,462,147
3,286,401
37,813
3,347,701
1,422,150
533
1,461,752
3,286,401
37,813
3,347,193
Cash at banks is placed in non-interest bearing accounts. Short-term deposit placements are made between
one day to three months depending on the Group's and the Bank's cash requirements, and earn interest at the
respective short-term deposit rates. The weighted average effective interest rate for short term deposits of the Group
and the Bank is 3.23% (2011: 3.43%) per annum.
5.
Licensed banks
Other financial institutions
2011
RM'000
769,054
97,974
867,028
62,648
2,000
64,648
Included in deposit and placements with licensed bank is a negotiable instrument of debt certificate ("NIDC")
amounting to RM150 million. The profit rate on the NIDC is a minimum guaranteed return of 1% plus a variable
profit rate that is based on the performance of a basket of underlying commodities. As at 31 December 2012,
the fair value of the return on the variable profit rate is RM Nil.
GROUP AND BANK
148
2012
RM'000
2011
RM'000
270,144
446,884
150,000
867,028
21,482
43,166
64,648
6.
At fair value
Money market instruments:
Private debt securities
Malaysian Government Investment Issues
Malaysian Government Securities
Quoted securities:
Shares
Total at fair value
At cost
Unquoted securities:
Shares
Total at cost
Total available-for-sale
financial investments
2012
RM'000
2011
RM'000
472,969
453,976
926,945
193,448
189,754
10,078
393,280
1,005
927,950
6,673
399,953
9,123
9,123
10,781
10,781
937,073
410,734
2012
RM'000
2011
RM'000
30,116
85,921
5,145
805,763
926,945
10,017
60,845
102,464
219,954
393,280
149
7.
At amortised cost
Money market instruments:
Malaysian Government Investment Issues
Malaysian Government Securities
Cagamas bonds
Unquoted securities:
Private debt securities
Total held-to-maturity financial investments
2012
RM'000
2011
RM'000
90,334
50,614
10,083
151,031
90,385
50,744
10,127
151,256
112,936
263,967
46,309
197,565
The maturity structure of held-to-maturity money market instruments and private debt
securities are as follows:
GROUP AND BANK
2012
RM'000
2011
RM'000
50,141
55,614
158,212
263,967
40,169
10,041
147,355
197,565
The indicative market value of held-to-maturity money market instruments and private
debt securities are as follows:
GROUP AND BANK
150
2012
RM'000
2011
RM'000
93,179
51,737
10,185
114,694
92,301
51,705
10,248
47,774
8.
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
Term loans
- Hire purchase
- Leasing
- Other term loans
Revolving credits
Staff loans
Gross loans, advances and financing
231,440
249,507
3,210,908
355,598
37,340
4,084,793
236,807
247,671
3,071,027
270,251
39,243
3,864,999
235,217
244,716
3,181,644
276,314
42,362
3,980,253
(145,937)
(118,882)
3,819,974
(245,341)
(103,337)
3,516,321
(592,948)
(113,260)
3,274,045
777,508
844,586
1,315,454
Included in loans, advances and financing are gross loans, advances and financing of RM104,516,000
(31 December 2011: RM100,865,000; 1 January 2011: RM117,018,000) financed by the Government
funds. The treatment of the income earned and credit losses incurred for these loans, advances and
financing are as disclosed in Note 2.14.
(i)
The maturity structure of gross loans, advances and financing are as follows:
GROUP AND BANK
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
290,178
566,255
831,118
2,397,242
4,084,793
186,916
560,709
719,226
2,398,148
3,864,999
230,201
573,153
898,975
2,277,924
3,980,253
151
8.
Gross loans, advances and financing analysed by type of customers are as follows:
GROUP AND BANK
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
4,019,215
65,578
4,084,793
3,808,903
56,096
3,864,999
3,937,891
42,362
3,980,253
(iii) Gross loans, advances and financing analysed by industry are as follows:
GROUP AND BANK
152
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
1,275,245
944,786
1,178,627
916,298
1,408,141
959,833
473,460
641,681
562,889
594,035
495,461
506,540
250,700
353,473
33,132
18,611
28,127
65,578
4,084,793
249,816
242,130
23,729
22,327
19,052
56,096
3,864,999
272,031
226,027
20,428
26,845
22,585
42,362
3,980,253
8.
Fixed rate
- Staff loan/financing
- Personal financing
- Hire purchase receivables
- Other term loans/financing
Variable rate
- Term loans/financing (base lending
rate plus)
(v)
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
37,340
28,238
130,100
2,011,250
39,243
16,853
303,023
1,810,261
42,362
277,805
2,860,822
1,877,865
4,084,793
1,695,619
3,864,999
799,264
3,980,253
Movements in impaired loans, advances and financing ("impaired loans") are as follows:
GROUP AND BANK
At 1 January 2012/2011
Impaired during the year
Reclassified as non-impaired
Amount recovered
Amount written-off
At 31 December 2012/2011
2012
RM'000
2011
RM'000
844,586
241,020
(86,831)
(74,524)
(146,743)
777,508
1,315,454
72,065
(151,086)
(391,847)
844,586
Net impaired loans as % of net loans, advances and financing (excluding staff loans) are as follows:
- 31 December 2012
16.7%
- 31 December 2011
17.2%
- 1 January 2011
22.4%
153
8.
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
370,449
248,565
339,385
298,309
543,436
441,661
63,733
52,206
70,507
68,340
130,824
88,744
34,998
1,282
5,940
335
777,508
42,611
14,245
10,706
410
73
844,586
32,858
13,004
58,979
350
5,598
1,315,454
(vii) Movements in the allowance for impaired loans advances and financing are as follows:
GROUP AND BANK
154
2012
RM'000
2011
RM'000
245,341
(114,518)
178,836
(163,722)
145,937
592,948
(306,079)
162,752
(204,280)
245,341
98,992
4,345
103,337
67,126
(51,581)
118,882
141,576
(28,316)
113,260
64,275
(74,198)
103,337
9.
Other assets
GROUP
Note
Fair value of financial guarantee
from Government of Malaysia
Other receivables and prepayments
Interest receivables
(i)
2012
RM'000
2011
RM'000
38,716
23,165
25,597
87,478
82,158
31,962
16,499
130,619
BANK
2012
RM'000
2011
RM'000
(ii)
3,248
(3,248)
-
3,243
(3,243)
-
(i)
38,716
22,476
25,597
86,789
82,158
31,366
16,499
130,023
Note
Amount due from subsidiaries
Less: Allowance for impairment
Fair value of financial guarantee
from Government of Malaysia
Other receivables and prepayments
Interest receivable
(i)
The amount relates to fair value of financial guarantee from Government of Malaysia on the foreign
exchange loss suffered by the Bank on retranslation of Japanese Yen term loans that the Bank received
from Japan International Cooperation Agency ("JICA") as disclosed in Note 19(b).
(ii)
The amount due from subsidiaries are unsecured, interest free and repayable on demand.
155
2011
RM
At cost
At 1 January 2012/2011
At 31 December 2012/2011
2
2
2
2
Carrying amount
At 1 January 2012/2011
At 31 December 2012/2011
2
2
2
2
Unquoted shares
Principal activities
156
Effective ownership
interest (%)
2012
2011
Dormant
100
100
Nominee services
100
100
Dormant
100
100
Dormant
100
100
Dormant
100
100
Malaysian Technology
Investments (L) Bhd.
Dormant
100
100
Dormant
100
100
Dormant
100
100
At cost:
Quoted shares in Malaysia
Unquoted shares in Malaysia
Share of post-acquisition
reserves
Less: Accumulated impairment
losses of unquoted shares
Fair value of investment in a
quoted associate for which
there is a published price
quotation
BANK
2012
RM'000
2011
RM'000
2012
RM'000
2011
RM'000
7,576
7,576
1,903
7,576
9,479
7,576
7,576
1,903
7,576
9,479
6,571
14,147
49,232
58,711
7,576
9,479
(6,826)
7,321
(1,174)
57,537
(6,826)
750
(1,174)
8,305
37,250
37,250
The summarised financial statements of the associates, not adjusted for the proportion of ownership interest held by
the Group, are as follows:
2012
RM'000
2011
RM'000
33,729
(10,734)
22,995
989,803
(631,241)
358,562
10,672
(12,491)
(1,819)
(1,819)
1,665,664
(1,646,546)
19,118
(8,635)
10,483
157
Principal activities
2012
Manufacture of wood
preservative
158
Effective ownership
interest (%)
2011
36
36
Manufacturing of electrical
conductor
15
Manufacturing of ceramic
capacitor
30
30
In 2011, although the Group holds less than 20% ownership interest and voting control in Metrod Malaysia
Bhd., the Group has the ability to exercise significant influence through both its significant shareholding and
its nominee's participation on the Board of Directors.
159
At 1 January 2012
Transfer to investment
properties (Note 13)
Charge for the year
(Note 27)
Written off
At 31 December 2012
Accumulated
depreciation
At 1 January 2012
Reclassifications
Additions
Written off
At 31 December 2012
Cost
2012
Group
4,017
31,561
640
3,191
(6,514)
9,065
34,752
34,752
Long term
leasehold
land
RM'000
4,017
4,017
Freehold
land
RM'000
73,763
1,773
7,881
(6,537)
12,645
81,608
36
81,644
Building
RM'000
11,466
5,771
(1,462)
29,494
25,185
38,338
(105)
4,309
(1,582)
40,960
Furniture
and
equipment
RM'000
3,910
1,520
(4)
21,830
20,314
23,566
2,180
(6)
25,740
Office
partition
RM'000
562
365
(415)
3,119
3,169
4,096
(415)
3,681
Motor
vehicles
RM'000
1,679
1,156
(5)
5,984
4,833
7,639
29
(5)
7,663
Electrical
and
machinery
RM'000
20,820
10,830
69
9,921
20,820
Work-in
progress
RM'000
147,778
11,225
(1,886)
71,499
(13,051)
75,211
204,846
16,439
(2,008)
219,277
Total
RM'000
160
At 1 January 2011
Charge for the year
(Note 27(ii))
Written off
At 31 December 2011
Accumulated
depreciation
At 1 January 2011
Reclassifications
Additions
Disposal of subsidiary
Written off
At 31 December 2011
Cost
2011
Group
25,687
640
9,065
4,017
8,425
34,752
34,752
Long term
leasehold
land
RM'000
4,017
4,017
Freehold
land
RM'000
68,963
2,529
12,645
10,116
81,608
81,608
Building
RM'000
13,153
6,355
(136)
25,185
18,966
26,198
8,830
3,932
(486)
(136)
38,338
Furniture
and
equipment
RM'000
3,252
1,278
20,314
19,036
22,237
7
1,370
(48)
23,566
Office
partition
RM'000
927
485
(325)
3,169
3,009
3,913
508
(325)
4,096
Motor
vehicles
RM'000
2,806
1,553
4,833
3,280
7,599
42
(2)
7,639
Electrical
and
machinery
RM'000
10,830
16,527
(8,837)
3,140
10,830
Work-in
progress
RM'000
129,635
12,840
(461)
75,211
62,832
196,851
8,992
(536)
(461)
204,846
Total
RM'000
161
At 1 January 2012
Transfer to investment
properties (Note 13)
Charge for the year
(Note 27(ii))
Written off
At 31 December 2012
Accumulated
depreciation
At 1 January 2012
Reclassifications
Additions
Written off
At 31 December 2012
Cost
2012
Bank
4,017
31,561
640
3,191
(6,514)
9,065
34,752
34,752
Long term
leasehold
land
RM'000
4,017
4,017
Freehold
land
RM'000
73,763
1,773
7,881
(6,537)
12,645
81,608
36
81,644
Building
RM'000
11,965
5,771
(1,462)
28,994
24,685
38,337
(105)
4,309
(1,582)
40,959
Furniture
and
equipment
RM'000
3,910
1,520
(4)
21,830
20,314
23,566
2,180
(6)
25,740
Office
partition
RM'000
63
365
(415)
3,618
3,668
4,096
(415)
3,681
Motor
vehicles
RM'000
1,679
1,156
(5)
5,984
4,833
7,639
29
(5)
7,663
Electrical
and
machinery
RM'000
20,820
10,830
69
9,921
20,820
Work-in
progress
RM'000
147,778
11,225
(1,886)
71,498
(13,051)
75,210
204,845
16,439
(2,008)
219,276
Total
RM'000
162
At 1 January 2011
Charge for the year
(Note 27(ii))
Written off
At 31 December 2011
Accumulated
depreciation
At 1 January 2011
Reclassifications
Additions
Written off
At 31 December 2012
Cost
2011
Bank
25,687
640
9,065
4,017
8,425
34,752
34,752
Long term
leasehold
land
RM'000
4,017
4,017
Freehold
land
RM'000
68,963
2,529
12,645
10,116
81,608
81,608
Building
RM'000
13,652
6,355
(136)
24,685
18,466
25,711
8,830
3,932
(136)
38,337
Furniture
and
equipment
RM'000
3,252
1,278
20,314
19,036
22,189
7
1,370
23,566
Office
partition
RM'000
428
485
(325)
3,668
3,508
3,913
508
(325)
4,096
Motor
vehicles
RM'000
2,806
1,553
4,833
3,280
7,597
42
7,639
Electrical
and
machinery
RM'000
10,830
16,527
(8,837)
3,140
10,830
Work-in
progress
RM'000
129,635
12,840
(461)
75,210
62,831
196,314
8,992
(461)
204,845
Total
RM'000
At cost
At 1 January 2012/2011
Additions
At 31 December 2012/2011
Accumulated depreciation
At 1 January 2012/2011
Transfer from property, plant and equipment (Note 12)
Charge for the year (Note 27(ii))
At 31 December 2012/2011
Carrying amount
At 31 December 2012/2011
2012
RM'000
2011
RM'000
188,066
188,066
188,066
188,066
28,078
13,051
3,661
44,790
25,188
2,890
28,078
143,276
159,988
At 1 January 2011
Estimated fair value
At 31 December 2012/2011
162,878
219,848
At 1 January 2011
193,204
164,223
Building
Freehold land
Leasehold land
2012
RM'000
2011
RM'000
125,608
4,879
12,789
143,276
147,751
4,879
7,358
159,988
At 1 January
Recognised in profit or loss (Note 31)
At 31 December
2012
RM'000
2011
RM'000
34,613
(18,017)
16,596
34,613
34,613
163
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
52,194
(35,598)
16,596
67,780
(33,167)
34,613
33,716
(33,716)
-
The components and movement of deferred tax assets and liabilities during the financial year prior
to offsetting are as follows:
Deferred tax assets of the Group and Bank:
Collective
impairment
allowance
RM'000
Unabsorbed
business
losses
RM'000
Provision
RM'000
Total
RM'000
25,834
25,834
3,887
29,721
30,233
30,233
(12,409)
17,824
11,713
11,713
(7,064)
4,649
67,780
67,780
(15,586)
52,194
5,586
20,248
25,834
25,834
30,233
30,233
30,233
11,713
11,713
11,713
5,586
62,194
67,780
67,780
Property, plant
and equipment
Total
RM'000
(33,167)
(33,167)
(2,431)
(35,598)
(33,167)
(33,167)
(2,431)
(35,598)
(30,054)
(3,113)
(33,167)
(33,167)
(30,054)
(3,113)
(33,167)
(33,167)
164
2011
RM'000
Investment in subsidiary
At cost
At 1 January
Disposal during the year
At 31 December
162,000
(162,000)
-
(98,860)
98,860
-
165
Group
Revenue
Other income
Operating and administrative expenses
Operating profit
Share of loss of associated companies
Profit before tax
Tax expense
Profit after tax
1 January
2010 to date
of disposal
2011
RM'000
581
2,835
(874)
2,542
(183)
2,359
(74)
2,285
Group
Operating cash inflows
Investing cash outflows
Net cash outflows
166
(1,528)
(1,528)
Group
Property, plant and equipment
Receivables
Cash and bank balances
Investment in associates
Available-for-sale financial investment
Payables
Cumulative convertible redeemable preference
shares - equity component
Non-controlling interest
44
9,186
14,327
27,760
19,995
(4,038)
(1,973)
69
65,370
63,140
2,230
63,140
63,140
(14,327)
48,813
2012
RM'000
2011
RM'000
2,293,395
3,153,347
167
Licensed banks
(i) The deposits maturity structure is as follows:
168
2011
RM'000
2,146,287
45,270
101,838
2,293,395
2,690,035
60,000
403,312
3,153,347
2011
RM'000
813,289
217,459
1,225,145
37,502
2,293,395
2,436,345
341,838
122,921
252,243
3,153,347
2011
RM'000
325,000
2011
RM'000
325,000
2011
RM'000
500,000
2012
RM'000
2011
RM'000
500,000
2012
RM'000
2011
RM'000
(a)
(b)
2,966,388
111,703
3,078,091
3,228,613
185,061
3,413,674
2011
RM'000
259,863
2,818,228
3,078,091
154,754
3,258,920
3,413,674
There were no new term loans obtained by the Group and the Bank during the current and previous financial year.
169
Loans from:
- Government of Malaysia
- Other financial institutions
Note
2012
RM'000
2011
RM'000
(i)
(ii)
1,576,878
1,389,510
2,966,388
1,592,870
1,635,743
3,228,613
Maturity structure:
Due within one year
Due after one year
2012
RM'000
2011
RM'000
20,921
1,555,957
1,576,878
20,791
1,572,079
1,592,870
The interest rates on the loans from Government of Malaysia ranges from 0% to 4% (2011: 0% to 4%)
per annum during the year.
(ii) Loans from other financial institutions
GROUP AND BANK
170
2012
RM'000
2011
RM'000
589,510
800,000
1,389,510
835,743
800,000
1,635,743
Maturity structure:
Due within one year
Due after one year
2012
RM'000
2011
RM'000
208,172
1,181,338
1,389,510
289,123
1,346,620
1,635,743
The interest rates on the loans from other institutions range from 0.50 % to 5.23 % (2011: 0.50% to 5.23%)
per annum.
(b) Term loans - Secured
The secured term loans represent the remaining loans balance from Japan International Cooperation Agency
("JICA") denominated in Japanese Yen which have been retranslated into RM based on the exchange rate
at the reporting date. Details of the loans are as follows:
(i) Initial loan of 5,716,228,574 (approximately RM203,360,548) principal repayable over a period of 19 years
commencing 20 December 1995, after a grace period of 6 years. The loan will mature on 20 December 2013.
(ii) Initial loan of 4,660,000,000 (approximately RM165,784,160) principal repayable over a period of 18 years
commencing 20 May 2002, after a grace period of 7 years. The loan will mature on 20 May 2017.
(iii) Loans received for Asean-Japan Development Fund (AJDF) and Small and Medium Industry Promotion
Program (SMIPP) which are repayable in semi-annual instalments of Ringgit Malaysia equivalent
of 281,921,000 and Ringgit Malaysia equivalent of 125,945,000 each commencing from December
1995 and May 1999 respectively.
The principal loan balance and foreign exchange fluctuation loss on these loans are guaranteed by the Government
of Malaysia.
The interest rates on long term loans from Japan International Cooperation Agency ("JICA") range
from 3.0% to 3.5% (2011: 3.0% to 3.5%) per annum.
171
2012
RM'000
2011
RM'000
75,716
54,057
63,744
23,574
3,846
5,049
2,959
228,945
51,140
57,548
47,958
19,528
7,071
4,306
187,551
BANK
172
2012
RM'000
2011
RM'000
74,941
54,057
63,744
23,574
3,846
5,049
2,959
228,170
50,390
57,548
47,958
19,528
4,306
179,730
To finance:
Investment properties
Loans, advances and financing
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 31
December
2010
RM'000
140,239
172,335
312,574
145,476
200,042
345,518
151,043
215,130
366,173
Nursery
Factory
Scheme
RM'000
Nursery
Factory
Scheme
(RMK8)
RM'000
Nursery
Factory
Scheme
(RMK9)
RM'000
Total
RM'000
100,976
6,068
38,432
145,476
(236)
(2,912)
(154)
(3,302)
100,740
3,156
(1,935)
36,343
(1,935)
140,239
101,140
9,025
40,878
151,043
(164)
(2,957)
(154)
(3,275)
100,976
6,068
(2,292)
38,432
(2,292)
145,476
Note
(a)
(b)
2012
At 1 January
Utilised to offset depreciation
charge for the year
Utilised to offset
expenses
At 31 December
2011
At 1 January
Utilised to offset depreciation
charge for the year
Utilised to offset
expenses
At 31 December
173
174
Balance
b/f
RM'000
4,180
214
4,394
(330)
4,064
Program
dan Skim
Usahawan
Batik
RM'000
82,085
(2,715)
79,370
(5,201)
(219)
73,950
288
288
288
36,637
36,637
36,637
Soft Loan
Scheme
RM'000
Tabung
Usahawan
Pahang
RM'000
32,454
1,344
33,798
(3,862)
29,936
81,424
(6,639)
74,785
(10,000)
(7,150)
(212)
(704)
56,719
3,000
3,000
3,000
4,839
(144)
4,695
(29)
4,666
Program
dan Skim
Usahawan
Kraf
RM'000
Skim
Skim
Pembangunan Perusahaan
Soft Loan
Ekonomi
Kapal
Scheme
Desa- Tradisional (SMA)
Islamic
Grant
RM'000
RM'000
RM'000
SPEDI
RM'000
1,000
1,000
1,000
30,329
(3,277)
27,052
(3,136)
23,916
Tabung
Dana
Usahawan
Usahawan
Siswazah
Negeri
(TUS) Terengganu
RM'000
RM'000
11,162
562
11,724
(2,065)
(219)
9,440
2,669
2,669
2,669
Tabung
Inkubator
Pertanian
Kelantan
RM'000
207,982
(7,940)
200,042
(10,000)
(16,572)
(212)
(923)
172,335
Total
RM'000
82,085
(2,715)
79,370
(5,201)
(219)
73,950
Balance
c/f
RM'000
175
Balance
b/f
RM'000
4,144
501
4,645
(252)
(213)
4,180
Program
dan Skim
Usahawan
Batik
RM'000
78,649
4,989
83,638
(4,270)
2,717
82,085
288
288
288
Tabung
Usahawan
Pahang
RM'000
36,637
36,637
36,637
Soft Loan
Scheme
RM'000
30,686
3,101
33,787
(6,496)
5,163
32,454
75,762
9,475
85,237
(10,188)
6,810
(174)
(261)
81,424
3,000
3,000
3,000
4,649
174
4,823
(126)
142
4,839
Program
dan Skim
Usahawan
Kraf
RM'000
Skim
Skim
Pembangunan Perusahaan
Soft Loan
Ekonomi
Kapal
Scheme
Desa- Tradisional (SMA)
Islamic
Grant
RM'000
RM'000
RM'000
SPEDI
RM'000
1,000
1,000
1,000
26,840
4,416
31,256
(4,205)
3,278
30,329
Tabung
Dana
Usahawan
Usahawan
Siswazah
Negeri
(TUS) Terengganu
RM'000
RM'000
11,215
573
11,788
(65)
(561)
11,162
2,669
2,669
2,669
Tabung
Inkubator
Pertanian
Kelantan
RM'000
196,890
18,240
215,130
(21,332)
9,456
4,989
(261)
207,982
Total
RM'000
78,649
4,989
83,638
(4,270
2,717
82,085
Balance
c/f
RM'000
2012
RM'000
Amount
2011
RM'000
Authorised:
At 1 January/31 December
5,000,000
5,000,000
5,000,000
5,000,000
1,350,000
1,350,000
1,350,000
1,350,000
Nonavailable-forsale reserve
RM'000
NonDistributable
profit
equalisation
reserve
RM'000
Distributable
general
reserve
RM'000
Total
RM'000
2,477
10,114
12,591
(1,582)
(1,582)
895
1,009
1,009
10,114
1,009
12,018
2,891
10,114
13,005
(414)
2,477
10,114
(414)
12,591
176
2012
RM'000
2011
RM'000
83,426
115,985
51,308
4,743
2,063
141,540
70,058
12,089
1,825
199,957
2012
RM'000
2011
RM'000
47,780
565
63,890
112,235
54,534
53,493
1
108,028
177
178
Group
Bank
2011
RM'000
2012
RM'000
2011
RM'000
1,245
1,581
1,233
1,569
303
303
91
91
127
44
127
44
521
600
644
521
600
644
560
560
778
1,119
1,897
5
1,135
1,140
40,231
1,119
41,350
5
1,135
1,140
5,357
16,349
11,993
33,699
5,871
16,391
9,578
31,840
5,357
16,349
4,200
25,906
5,871
16,391
9,576
31,838
37,362
35,765
69,010
35,751
Personnel expenses
Establishment related
expenses
Promotion and marketing
expenses
Administration and
general expenses
(i) Personnel expenses
Salaries, allowances and
bonuses
Social security cost
Contribution to Employee
Provident Fund
Other staff related expenses
(ii) Establishment related
expenses
Depreciation of property, plant
and equipment (Note 12)
Depreciation of investment
properties (Note 13)
Rental of premises
Repairs and maintenance of
property, plant and equipment
(iii) Promotion and marketing
expenses
Advertisement and publicity
Group
2011
RM'000
2012
RM'000
Bank
Note
2012
RM'000
(i)
60,567
104,027
60,567
104,027
(ii)
27,788
30,408
27,788
30,408
(iii)
4,475
3,472
4,475
3,472
(iv)
48,404
141,234
32,305
170,212
29,804
122,634
30,057
167,964
44,131
508
89,916
478
44,131
508
89,916
478
7,738
8,190
60,567
6,667
6,966
104,027
7,738
8,190
60,567
6,667
6,966
104,027
11,225
12,840
11,225
12,840
3,661
2,254
2,890
1,665
3,661
2,254
2,890
1,665
10,648
27,788
13,013
30,408
10,648
27,788
13,013
30,408
4,475
3,472
4,475
3,472
2011
RM'000
179
Note
(iv) Administration and general
expenses
Loss on disposal of
a subsidiary
Loss on disposal of
an associate
Property, plant and
equipment written-off
Administrative expenses
Auditors' remuneration
- Statutory audit
- Other services
General expenses
2012
RM'000
Group
Bank
2011
RM'000
2012
RM'000
2011
RM'000
2,230
18,572
122
9,535
7,811
122
9,535
7,811
303
124
19,748
48,404
284
2,497
19,483
32,305
284
124
19,739
29,804
284
2,480
19,482
30,057
2011
RM'000
858
141
999
561
95
656
Non-executive directors:
Fees
450
251
1,449
907
Directors' remuneration
180
2012
RM'000
2011
RM'000
1
-
1
-
4
3*
7
1
9**
10
Relates to the former non-executive director of the Bank who resigned on 31 October 2012.
Includes two former non-executive directors of the Bank who resigned during the prior financial year.
2012
RM'000
2011
RM'000
178,836
67,126
245,962
162,752
64,275
227,027
(163,722)
(51,581)
(215,303)
(204,280)
(74,198)
(278,478)
32,225
85,764
181
2011
RM'000
(51,227)
(42,848)
11,657
(8,535)
Group
Bank
2011
RM'000
2012
RM'000
100
486
586
5,652
5,723
11,375
2011
RM'000
2012
RM'000
780
3,411
28
3,409
(3,396)
(2,616)
1,001
4,412
(3,396)
(3,368)
1,001
4,410
18,017
18,017
(34,613)
(34,613)
18,017
18,017
(34,613)
(34,613)
15,401
(30,201)
14,649
(30,203)
5,652
5,723
11,375
2011
RM'000
100
486
586
182
Group
Bank
2011
RM'000
Group
Bank
2011
RM'000
2012
RM'000
2011
RM'000
1,110
3,870
1,110
3,870
(2,270)
(1,160)
1,216
5,086
(2,270)
(1,160)
1,216
5,086
Domestic income tax is calculated at the Malaysian statutory tax rate of 25% (2011: 25%) of the estimated
assessable profit for the year.
The reconciliation between tax expense and accounting profit of the Group and Bank multiplied by the applicable
corporate tax rate are as follows:
Group
Bank
2012
2011
2012
2011
RM'000
RM'000
RM'000
RM'000
Profit before tax and zakat
from continuing operations
Income tax at 25% (2011: 25%)
Non-deductible expenses
Non-taxable income
Tax exempt income
Effects of share of associates'
post-tax (profit)/loss included
in Group's profit before taxation
Deferred tax assets not
recognised due to business
loss
(Over) / underprovision of tax
expenses in prior year
Utilisation of previously
unrecognised tax losses
Total tax expense/ (credit)
for the year
Tax savings during the financial year arising from:
88,063
124,762
122,947
125,702
22,016
10,980
(9,059)
(104)
31,191
3,118
(33,198)
(1,029)
30,737
6,523
(9,059)
(10,156)
31,426
2,557
(33,198)
(1,029)
(3,841)
(324)
(1,195)
(3,396)
1,001
(3,396)
1,001
(30,960)
(30,960)
15,401
(30,201)
14,649
(30,203)
2011
RM'000
49,454
5,195
54,649
97,072
26,767
123,839
183
73,822
149,877
109,458
150,819
GROUP
2012
RM'000
2011
RM'000
2,285
2012
Units ('000)
2011
Units ('000)
1,350,000
1,350,000
184
Loans, advances and financing related commitments and contingencies of the Group and the Bank
are as follows:
GROUP AND BANK
(ii)
2012
RM'000
2011
RM'000
228,480
208,232
141,891
132,683
111,903
764,367
1,312,982
74,398
572,771
921,743
Capital expenditure commitments of the Group and the Bank are as follows:
GROUP AND BANK
2012
RM'000
2011
RM'000
36,662
2,371
39,033
17,260
897
18,157
1,352,015
939,900
185
2012
RM'000
2011
RM'000
26
Group
Bank
2011
RM'000
2012
RM'000
5,982
931
6,913
8,546
1,256
9,802
2011
RM'000
2012
RM'000
1,367,017
1,380,069
1,367,017
1,380,069
7,926
7,629
7,926
7,629
658,000
541,000
658,000
541,000
5,567
2,427
5,567
2,427
111,703
2,150,213
185,061
2,116,186
111,703
2,150,213
185,061
2,116,186
8,546
1,256
9,802
2011
RM'000
5,982
931
6,913
186
Group
Bank
2011
RM'000
Tier I Capital
Paid-up share capital
Accumulated losses
Other reserves
Total Tier I capital
Tier II Capital
Collective allowance for loans, advances and
financing *
Government funds
Total Tier II capital
Total capital
Less: Investment in subsidiaries
Total capital base
As at 31
December
2012
RM'000
Bank
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
1,350,000
(338,496)
10,114
1,021,618
1,350,000
(446,945)
10,114
913,169
1,350,000
(597,764)
10,114
762,350
87,043
312,574
399,617
53,945
345,518
399,463
58,583
366,173
424,756
1,421,235
1,421,235
1,312,632
1,312,632
1,187,106
(63,140)
1,123,966
187
The eligible amount for Tier II Capital is only limited to collective allowance on unimpaired loans,
advances and financing.
10%
20%
50%
100%
As at 31
December
2012
RM'000
Bank
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
1,000
464,128
45,303
4,658,019
5,168,450
1,000
685,357
36,812
4,179,120
4,902,289
1,000
505,120
64,149
3,958,511
4,528,779
As at 31
December
2012
Bank
As at 31
December
2011
As at 1
January
2011
19.77%
27.50%
18.63%
26.78%
16.83%
24.82%
As at 31
December
2012
Bank
As at 31
December
2011
As at 1
January
2011
19.64%
27.37%
18.63%
26.78%
16.83%
24.82%
188
189
2012
Group
Fair
value
RM'000
Carrying
amount
RM'000
Bank
Fair
value
RM'000
Financial assets:
Financial investments:
Available-for-sale
- Unquoted shares, at cost*
Held-to-maturity, at cost
Loans, advances and financing
9,123
263,967
3,819,974
9,123
269,795
2,469,031
9,123
263,967
3,819,974
9,123
269,795
2,469,031
Financial liabilities:
Term loans
3,078,091
2,319,122
3,078,091
2,319,122
Financial assets:
Financial investments:
Available-for-sale
- Unquoted shares, at cost*
Held-to-maturity, at cost
Loans, advances and financing
10,781
197,565
3,516,321
10,781
202,028
3,230,171
10,781
197,565
3,516,321
10,781
202,028
3,230,171
Financial liabilities:
Term loans
3,413,674
2,737,644
3,413,674
2,737,644
2011
Available-for-sale unquoted shares are stated at their carrying amounts as their fair value cannot be reliably
measured in view that they do not have a quoted price in an active market, the range of reasonable fair value
estimates is significant and the probabilities of various estimates cannot be reliably measured.
The methods and assumptions used in estimating the fair values of other financial instruments are as follows:
(a)
Cash and bank balances, deposits and placements with banks and other financial institutions,
and deposits from customers
The carrying amount approximates fair value due to the relatively short maturity of these financial instruments.
(b)
190
(d)
Term loans
The fair values are estimated based on expected future cash flows of contractual instalment payments
and discounted at prevailing rates at the reporting date obtained for similar loans with similar maturities,
where applicable.
(e)
(ii)
Quoted shares
The fair value of quoted shares is determined directly by reference to their published market bid
price at the reporting date.
191
31 December 2012
Financial assets:
Financial investments:
Available-for-sale
- Private debt securities
- Malaysian Government
Investment Issues
- Quoted shares
31 December 2011
Financial assets:
Financial investments:
Available-for-sale
- Private debt securities
- Malaysian Government
Securities
- Malaysian Government
Investment Issues
- Quoted shares
192
Group Bank
Carrying
amount
RM'000
Level 1
RM'000
Level 2
RM'000
Level 3
RM'000
472,969
472,969
453,976
1,005
1,005
453,976
-
Group Bank
Carrying
amount
RM'000
Level 1
RM'000
Level 2
RM'000
Level 3
RM'000
193,448
193,448
10,078
10,078
189,754
6,673
6,673
189,754
-
(b)
(c)
Treasury
Treasury and Balance Sheet Management and Fund Administration is responsible for managing the Banks
assets and liabilities and the overall financial structure. Treasury and Balance Sheet Management and Fund
Administration are also responsible for the funding and liquidity of the Bank.
(d)
Internal Audit
The Internal Audit function provides an on-going focus on the internal control systems and periodic reviews
of the risk management processes. It also reviews compliance with approved policies, as well as applicable
laws and regulations.
Internal Audit also evaluates the independence and overall effectiveness of the risk management systems.
Internal Audits assessment on the adequacy of internal controls will involve understanding, documenting,
evaluating and testing the Banks internal control system and follow-up on corrective actions and review
of managements action to address material weaknesses.
193
Credit risk
Credit risk is the potential loss arising from customers or counterparties failing to meet their financial
contractual obligations. Management of credit risk is principally through lending directions and policies,
which are instituted based on prevailing business and economic conditions. Credit processes are also
structured to ensure adherence of credit policies and to establish impartiality in loan origination,
approval, documentation, disbursement and settlement.
The Bank's Credit and Risk Management manages and reviews asset quality, reviews concentration
limits, according to various categories such as customer, economic segment and product types
and monitors credit portfolio risk. Industry risk is also evaluated and monitored as dynamic changes
in the economic environment has a direct impact on the Bank's assets quality.
The internal credit risk rating system has been established to measure the credit worthiness of each
customer. The primary objectives are to provide a consistent approach in risk grading of the Bank's
borrowers.
194
Credit exposure
The credit risk exposure of the Group and the Bank at the reporting date are as follows:
GROUP
On balance sheet:
Cash and short term funds
Deposits and placements with banks
and other financial institutions
Available-for-sale financial investments
Held-to-maturity financial investments
Loans, advances and financing
Others
Other assets not subject to credit risk
2012
RM'000
2011
RM'000
1,462,147
3,347,701
867,028
937,073
263,967
3,819,974
25,597
7,375,786
392,621
7,768,407
64,648
410,734
197,565
3,516,321
16,499
7,553,468
504,784
8,058,252
1,352,015
9,120,422
939,900
8,998,152
195
On balance sheet:
Cash and short term funds
Deposits and placements with banks
and other financial institutions
Available-for-sale financial investments
Held-to-maturity financial investments
Loans, advances and financing
Others
Other assets not subject to credit risk
(ii)
2011
RM'000
1,461,752
3,347,193
867,028
937,073
263,967
3,819,974
25,597
7,375,391
385,361
7,760,752
64,648
410,734
197,565
3,516,321
16,499
7,552,960
454,955
8,007,915
1,352,015
9,112,767
939,900
8,947,815
Gross loans, advances and financing are rated based on internal rating by the Bank:
2012
Risk rating category
Highest safety *
Moderate safety**
High risk***
Non-rated
196
2012
RM'000
Neither
past due
nor impaired
RM'000
Past due
but not
impaired
RM'000
Total
RM'000
68,896
2,510,361
419,496
73,757
3,072,510
40
131,477
101,264
1,994
234,775
68,936
2,641,838
520,760
75,751
3,307,285
Gross loans, advances and financing are rated based on internal rating by the Bank: (cont'd.)
2011
Risk rating category
Highest safety *
Moderate safety**
High risk***
Non-rated
*
**
***
Neither
past due
nor impaired
RM'000
Past due
but not
impaired
RM'000
Total
RM'000
14,477
1,964,322
154,789
19,802
2,153,390
13,271
709,199
126,497
18,056
867,023
27,748
2,673,521
281,286
37,858
3,020,413
It is the Banks policy to maintain accurate and consistent risk ratings across the credit portfolio.
This facilitates focused management of the applicable risks and the comparison of credit exposures
across all lines of business, geographic regions and products. The rating system is supported
by a variety of financial analytics, combined with processed market information to provide the main
inputs for the measurement of counterparty risk. All internal risk ratings are tailored to the various
categories and are derived in accordance with the Banks rating policy. The attributable risk ratings
are assessed and updated regularly.
197
198
Government
Agriculture, forestry and fishing
Constructions
Community, social and personal services
Electricity, gas and water supply
Financial, insurance, real estate
and business services
Import, export, wholesale and retail
trade and restaurant and hotels
Manufacturing
Mining and quarrying
Transportation and communication
Others
Gross total
Less: Allowances for impairment
Group
2012
453,976
483,097
937,073
937,073
937,073
2,329,175
2,329,175
2,329,175
2,329,175
263,967
263,967
263,967
123,019
140,948
-
Short-term
funds, and
AvailableHeld-toplacements
for-sale
maturity
with financial
financial
financial
institutions investments investments
RM'000
RM'000
RM'000
1,275,245
944,786
33,132
641,681
65,578
4,084,793
(264,819)
3,819,974
3,819,974
250,700
18,611
353,473
473,460
28,127
Loans,
advances
and
financing
RM'000
(iii) The following table set out the credit risk concentration by industry sector (gross balances):
25,597
25,597
392,621
418,218
25,597
Other
assets
RM'000
1,275,245
944,786
33,132
641,681
65,578
7,640,605
(264,819)
7,375,786
392,621
7,768,407
3,211,588
594,924
18,611
353,473
473,460
28,127
1,352,015
1,352,015
1,352,015
1,352,015
Total Commitments
RM'000
RM'000
199
Government
Agriculture, forestry and fishing
Constructions
Community, social and personal services
Electricity, gas and water supply
Financial, insurance, real estate
and business services
Import, export, wholesale and retail
trade and restaurant and hotels
Manufacturing
Mining and quarrying
Transportation and communication
Others
Gross total
Less: Allowances for impairment
Group
2011
199,832
210,902
410,734
410,734
410,734
3,412,349
3,412,349
3,412,349
3,412,349
197,565
197,565
197,565
56,436
141,129
-
Short-term
funds, and
AvailableHeld-toplacements
for-sale
maturity
with financial
financial
financial
institutions investments investments
RM'000
RM'000
RM'000
1,178,627
916,298
23,729
594,035
56,096
3,864,999
(348,678)
3,516,321
3,516,321
249,816
22,327
242,130
562,889
19,052
Loans,
advances
and
financing
RM'000
16,499
16,499
504,784
521,283
16,499
Other
assets
RM'000
(iii) The following table set out the credit risk concentration by industry sector (gross balances): (cont'd.)
1,178,627
916,298
23,729
594,035
56,096
7,902,146
(348,678)
7,553,468
504,784
8,058,252
3,946,002
340,961
22,327
242,130
562,889
19,052
939,900
939,900
939,900
939,900
Total Commitments
RM'000
RM'000
200
Government
Agriculture, forestry and fishing
Constructions
Community, social and personal services
Electricity, gas and water supply
Financial, insurance, real estate
and business services
Import, export, wholesale and retail
trade and restaurant and hotels
Manufacturing
Mining and quarrying
Transportation and communication
Others
Gross total
Less: Allowances for impairment
Bank
2012
453,976
483,097
937,073
937,073
937,073
2,328,780
2,328,780
2,328,780
2,328,780
263,967
263,967
263,967
123,019
140,948
-
Short-term
funds, and
AvailableHeld-toplacements
for-sale
maturity
with financial
financial
financial
institutions investments investments
RM'000
RM'000
RM'000
1,275,245
944,786
33,132
641,681
65,578
4,084,793
(264,819)
3,819,974
3,819,974
250,700
18,611
353,473
473,460
28,127
Loans,
advances
and
financing
RM'000
25,597
25,597
385,361
410,958
25,597
Other
assets
RM'000
(iii) The following table set out the credit risk concentration by industry sector (gross balances): (cont'd.)
1,275,245
944,786
33,132
641,681
65,578
7,640,210
(264,819)
7,375,391
385,361
7,760,752
3,211,193
594,924
18,611
353,473
473,460
28,127
1,352,015
1,352,015
1,352,015
1,352,015
Total Commitments
RM'000
RM'000
201
Government
Agriculture, forestry and fishing
Constructions
Community, social and personal services
Electricity, gas and water supply
Financial, insurance, real estate
and business services
Import, export, wholesale and retail
trade and restaurant and hotels
Manufacturing
Mining and quarrying
Transportation and communication
Others
Gross total
Less: Allowances for impairment
Bank
2011
199,832
210,902
410,734
410,734
410,734
3,411,841
3,411,841
3,411,841
3,411,841
197,565
197,565
197,565
56,436
141,129
-
Short-term
funds, and
AvailableHeld-toplacements
for-sale
maturity
with financial
financial
financial
institutions investments investments
RM'000
RM'000
RM'000
1,178,627
916,298
23,729
594,035
56,096
3,864,999
(348,678)
3,516,321
3,516,321
249,816
22,327
242,130
562,889
19,052
Loans,
advances
and
financing
RM'000
16,499
16,499
454,955
471,454
16,499
Other
assets
RM'000
(iii) The following table set out the credit risk concentration by industry sector (gross balances): (cont'd.)
1,178,627
916,298
23,729
594,035
56,096
7,901,638
(348,678)
7,552,960
454,955
8,007,915
3,945,494
340,961
22,327
242,130
562,889
19,052
939,900
939,900
939,900
939,900
Total Commitments
RM'000
RM'000
202
Term loans
- Hire purchase
- Leasing
- Other term loans
Revolving credits
2011
Term loans
- Hire purchase
- Leasing
- Other term loans
Revolving credits
2012
141,013
177,204
1,638,146
212,953
2,169,316
Up to 1
month
RM'000
119,281
147,028
1,892,612
254,097
2,413,018
Up to 1
month
RM'000
10,529
18,887
267,446
5,130
301,992
9,816
15,491
58,319
4,146
87,772
>3 - 6
months
RM'000
22,259
11,928
403,240
23,906
461,333
4,222
9,042
80,902
3,100
97,266
>3 - 6
months
RM'000
4,502
20,384
133,482
16,482
174,850
61,553
45,521
469,299
45,778
622,151
(iv) Analysis of loans, advances and financing that are past due but not impaired and past due and impaired
of the Group and Bank is as follows:
53,190
24,161
743,119
24,116
844,586
Past due
and
impaired
RM'000
41,881
27,531
671,954
36,142
777,508
Past due
and
impaired
RM'000
236,807
247,671
3,110,270
270,251
3,864,999
Total
RM'000
231,439
249,506
3,248,249
355,599
4,084,793
Total
RM'000
(vi)
2012
Gross
loans
Estimated
fair value
of collateral
(%)
1,275,245
944,786
473,460
641,681
74.4
55.4
72.3
64.0
250,700
353,473
33,132
18,611
28,127
65,578
4,084,793
58.3
41.7
49.3
77.1
39.0
0.0
203
Collateral and credit enhancement for loans, advances and financing (cont'd.)
2011
Gross
loans
Estimated
fair value
of collateral
(%)
1,178,627
916,298
562,889
594,035
79.0
65.2
56.7
68.5
249,816
242,130
23,729
22,327
19,052
56,096
3,864,999
78.0
54.4
42.9
81.6
29.0
0.0
Restructured loans
Restructured loans refer to the financial assets that would otherwise be past due or impaired where
there is fundamental revision in the principal terms and conditions of the facility. Restructuring shall
be considered when the customer's business is still viable and is expected to remain viable after
the restructuring. The gross and net total of restructured loans held by the Group and the Bank
at the reporting date stood at RM504 million and RM441 million (2011: RM479 million and RM424
million), respectively.
204
Corporate bonds
Corporate bonds
Corporate bonds
Corporate bonds
Malaysian
Government Bonds
Government
Guarantee Bonds
Total
RAM
MARC
RAM
MARC
N/A
N/A
Credit
rating
Nominal
value
2012
(RM'000)
Nominal
value
2011
(RM'000)
AAA
AAA
AA1
AA+
Government
guarantee
Government
guarantee
35,000
35,000
135,000
65,000
50,000
145,000
15,000
690,000
335,000
225,000
1,185,000
40,000
585,000
Total
principal
outstanding
2012
(RM'000)
Total
principal
outstanding
2011
(RM'000)
95,651
1,222,033
650,053
244,871
2,212,608
299,158
2,177,850
772,725
139,129
3,388,862
205
Impairment assessment
For accounting purposes, the Group and Bank use an incurred loss model for the recognition
of losses on impaired financial assets. This means that losses can only be recognised when objective
evidence of a specific loss event has been observed.
The main considerations for the loan impairment assessment include:
(a)
(b)
(c)
(d)
whether any payment of principal or interest is overdue by more than 180 days; or
whether there are any known difficulties in the cash flows of counterparties; or
when there has been requests for a rescheduling or restructuring of loan by the counterparty; or
when there has been an infringement of the original terms of the contract.
The Bank addresses impairment assessment in two areas: individually assessed allowances
and collectively assessed allowances.
Individually assessed allowances
The Bank determines the allowances appropriate for each individually significant loan, advance
and financing to a counterparty on an individual basis. Items considered when determining allowance
amounts include the sustainability of the counterpartys business plan, its ability to improve
performance once a financial difficulty has arisen. The realisable value of collateral and the timing
of the expected cash flows. Impairment allowances are evaluated at each reporting date, unless
unforeseen circumstances require more careful attention.
Collectively assessed allowances
Allowances are assessed collectively for losses on loans, advances and financing and for held-tomaturity debt investments that are not individually significant and for individually significant loans
and advances that have been assessed individually and found not to be impaired. Allowances
are evaluated separately.
In particular, for loans, advances and financing classified as impaired but which are not individually
assessed for impairment, the Bank undertakes an assessment on the adequacy of provisions
for such loans, advances and financing. The Bank provides additional collective impairment provisions
for these loans, advances and financing where the amount provided under the transitional provision
is inadequate.
206
(b)
2012
(RM'000)
2011
(RM'000)
228,480
208,232
876,270
1,312,982
141,891
132,683
647,169
921,743
Market risk
Asset and Liability Management Framework has been established in line with the best practices.
(i)
207
Functional currency of
the Group and Bank
Term loans - Japanese Yen (JPY)
(ii)
185,061
208
2,946
(2,946)
2,443
(2,443)
Impact on reserves
+ 50 basis points
- 50 basis points
5,925
(5,925)
2,925
(2,925)
209
Assets
Group
2012
1,433,416
51,625
8,079
2,654
-
12,161
-
1,422,683
39,464
1,025,775
268,932
9,699
-
30,116
717,028
1,555,948
1,208,046
1,081
-
105,755
91,066
150,000
3,298,894
2,322,756
12,163
-
158,212
805,763
147,778
143,276
16,596
402,749
15,769
61,881
7,321
10,128
147,778
143,276
16,596
7,768,407
3,819,974
15,769
87,478
7,321
263,967
937,073
867,028
1,462,147
Total
RM'000
The table below summarises the Groups and Banks exposure to interest rate risk. The table indicates effective average interest rates
at the reporting date and the period in which the financial instruments reprice or mature, whichever is earlier.
3.70
5.29
4.19
3.93
3.45
3.23
Effective
interest
rate
%
210
Share capital
Accumulated losses
Other reserves
Total equity
Group
2012 (cont'd.)
(806,757)
(806,757)
(1,045,091)
806,757
(1,045,091)
1,045,091
100,000
716
806,757
884
1,045,091
-
706,041
1,044,207
(806,855)
(806,855)
806,855
225,000
17,833
20,875
806,855
543,147
(1,205,200)
(1,205,200)
1,205,200
500,000
704,611
589
1,205,200
(2,396,327)
(2,396,327)
2,396,327
2,355,647
40,680
2,396,327
1,352,015
(1,508,177)
1,508,177
1,350,000
(331,616)
12,018
1,030,402
165,201
312,574
477,775
7,768,407
1,350,000
(331,616)
12,018
1,030,402
325,000
500,000
3,078,091
228,945
312,574
6,738,005
2,293,395
Total
RM'000
3.18
3.64
2.58
3.19
3.36
Effective
interest
rate
%
211
Assets
Group
2011
1,323,516
8,129
4,061
1,335,706
2,024,185
79,729
5,385
2,109,299
272,625
173,453
7,052
-
27,472
64,648
1,493,454
1,279,935
-
50,210
163,309
2,342,383
1,975,075
-
147,355
219,953
129,635
159,988
34,613
504,785
8,891
114,121
57,537
129,635
159,988
34,613
8,058,252
3,516,321
8,891
130,619
57,537
197,565
410,734
64,648
3,347,701
Total
RM'000
3.59
6.03
3.64
3.62
3.65
3.43
Effective
interest
rate
%
212
Share capital
Accumulated losses
Other reserves
Total equity
Group
2011 (cont'd.)
(37,118)
(37,118)
696,472
1,372,824
1,361,440
11,384
1,372,824
696,472
1,412,827
1,412,696
131
1,412,827
(35,906)
(35,906)
308,531
279,211
29,320
308,531
1,281,628
1,281,628
211,826
100,000
107,862
3,964
211,826
(963,429)
(963,429)
3,305,812
3,305,812
3,305,812
939,900
(941,647)
1,446,432
1,350,000
(404,429)
12,591
958,162
142,752
345,518
488,270
8,058,252
1,350,000
(404,429)
12,591
958,162
3,153,347
3,413,674
187,551
345,518
7,100,090
Total
RM'000
3.46
2.50
2.98
Effective
interest
rate
%
213
* Denotes RM2.
Assets
Bank
2012
1,422,683
8,079
2,654
1,433,416
39,069
12,161
51,230
268,932
9,699
1,025,775
30,116
717,028
1,208,046
1,081
1,555,948
105,755
91,066
150,000
2,322,756
12,163
3,298,894
158,212
805,763
15,769
61,192
-*
750
147,778
143,276
16,596
395,489
10,128
3,819,974
15,769
86,789
-*
750
147,778
143,276
16,596
7,760,752
263,967
937,073
867,028
1,461,752
Total
RM'000
3.70
5.29
4.19
3.93
3.45
3.23
Effective
interest
rate
%
214
Share capital
Accumulated losses
Other reserves
Total equity
Bank
2012 (cont'd.)
626,659
626,659
(993,861)
806,757
(993,861)
1,045,091
100,000
716
806,757
884
1,045,091
-
706,041
1,044,207
218,920
218,920
806,855
225,000
17,833
20,875
806,855
543,147
350,748
350,748
1,205,200
500,000
704,611
589
1,205,200
(963,429)
902,567
2,396,327
2,355,647
40,680
2,396,327
(1,105,033)
(1,105,033)
1,500,522
1,350,000
(338,496)
12,018
1,023,522
164,426
312,574
477,000
7,760,752
1,350,000
(338,496)
12,018
1,023,522
325,000
500,000
3,078,091
228,170
312,574
6,737,230
2,293,395
Total
RM'000
3.18
3.64
2.58
3.19
3.36
Effective
interest
rate
%
215
* Denotes RM2.
Assets
Bank
2011
1,323,516
8,129
4,061
1,335,706
2,023,677
79,729
5,385
2,108,791
173,453
7,052
272,625
27,472
64,648
1,279,935
1,493,454
50,210
163,309
1,975,075
2,342,383
147,355
219,953
8,890
113,525
-*
8,305
129,635
159,988
34,613
454,956
3,516,321
8,890
130,023
-*
8,305
129,635
159,988
34,613
8,007,915
197,565
410,734
64,648
3,347,193
Total
RM'000
3.59
6.03
3.62
3.65
3.65
3.43
Effective
interest
rate
%
216
Share capital
Accumulated losses
Other reserves
Total equity
Bank
2011 (cont'd.)
(37,118)
(37,118)
695,964
1,372,824
1,361,440
11,384
1,372,824
695,964
1,412,827
1,412,696
131
1,412,827
(35,906)
(35,906)
308,531
279,211
29,320
1,372,824
1,281,628
1,281,628
211,826
100,000
107,862
3,964
211,826
(963,429)
(963,429)
3,305,812
3,305,812
3,305,812
939,900
(941,139)
1,396,095
1,350,000
(446,945)
12,591
915,646
134,931
345,518
480,449
8,007,915
1,350,000
(446,945)
12,591
915,646
3,153,347
3,413,674
179,73
345,518
7,092,269
Total
RM'000
3.46
2.50
2.98
Effective
interest
rate
%
217
Assets
Group
2012
1,425,336
8,079
1,433,415
12,161
51,625
>1 - 3
months
RM'000
39,464
Up to 1
month
RM000
1,025,775
268,932
-
30,116
726,727
>3 - 12
months
RM'000
1,555,948
1,208,046
-
105,755
91,066
151,081
>1 - 5
years
RM'000
3,298,895
2,322,75
-
161,977
814,162
Over 5
years
RM'000
147,778
143,276
386,153
15,769
61,881
7,321
10,128
Nonspecific
maturity
RM'000
The following table shows the maturity analysis of the Groups assets and liabilities based on undiscounted repayment obligations:
147,778
143,276
7,751,811
3,819,974
15,769
61,881
7,321
267,732
945,472
877,808
1,464,800
Total
RM'000
The Bank manages its liquidity requirement on a day-to-day basis to ensure that funds are readily available for its operational needs,
withdrawals of deposits and repayments to fund providers. The Bank may raise funds locally through government-to-government arrangements
or direct negotiations.
Liquidity risk is the risk that an enterprise will encounter difficulty in raising funds to meet its current and future payment obligations associated
with financial obligations when they fall due. The liquidity and cash flow risks are managed by maintaining a diversity of funding sources and
spreading debt repayments over a range of maturities.
218
706,757
100,524
807,281
626,134
1,044,567
(992,942)
>1 - 3
months
RM'000
1,044,567
Up to 1
month
RM000
Liabilities
Group
2012 (cont'd.)
218,331
225,000
17,833
807,444
564,611
>3 - 12
months
RM'000
351,337
500,000
704,611
1,204,611
>1 - 5
years
RM'000
909,704
2,389,191
2,389,191
Over 5
years
RM'000
(91,622)
165,201
312,574
477,775
Nonspecific
maturity
RM'000
The following table shows the maturity analysis of the Groups assets and liabilities based on undiscounted repayment obligations:
1,020,942
325,524
500,000
3,111,635
165,201
312,574
6,730,869
2,315,935
Total
RM'000
219
Liabilities
Assets
Group
2011
1,361,440
22,768
1,384,208
(1,078)
721,218
8,122
50,984
1,383,130
10,770
99,729
2,134,176
1,412,696
262
1,412,958
1,324,024
>1 - 3
months
RM'000
2,023,677
Up to 1
month
RM000
(48,691)
279,211
58,640
337,851
55,707
233,453
289,160
>3 - 12
months
RM'000
1,372,387
112,749
115,790
228,539
190,781
50,210
1,359,935
1,600,926
>1 - 5
years
RM'000
(1,114,938)
3,261,013
3,261,013
226,500
147,355
1,772,220
2,146,075
Over 5
years
RM'000
(5,349)
130,003
345,518
475,521
8,891
114,121
57,537
129,635
159,988
470,172
Nonspecific
maturity
RM'000
The following table shows the maturity analysis of the Groups assets and liabilities based on undiscounted repayment obligations:
923,549
3,166,096
3,458,473
130,003
345,518
7,100,090
74,599
417,281
197,565
3,516,321
8,891
114,121
57,537
129,635
159,988
8,023,639
3,347,701
Total
RM'000
220
Assets
Bank
2012
1,425,336
8,079
1,433,415
12,161
51,230
>1 - 3
months
RM'000
39,069
Up to 1
month
RM000
726,727
30,116
268,932
1,025,775
>3 - 12
months
RM'000
151,081
91,066
105,755
1,208,046
1,555,948
>1 - 5
years
RM'000
814,162
161,977
2,322,756
3,298,895
Over 5
years
RM'000
10,128
15,769
61,192
750
147,778
143,276
378,893
Nonspecific
maturity
RM'000
The following table shows the maturity analysis of the Banks assets and liabilities based on undiscounted repayment obligations.
877,808
945,472
267,732
3,819,974
15,769
61,192
750
147,778
143,276
7,744,156
1,464,405
Total
RM'000
221
706,757
100,524
807,281
626,134
1,044,567
(993,337)
>1 - 3
months
RM'000
1,044,567
Up to 1
month
RM000
218,331
225,000
17,833
807,444
564,611
>3 - 12
months
RM'000
351,337
500,000
704,611
1,204,611
>1 - 5
years
RM'000
909,704
2,389,191
2,389,191
Over 5
years
RM'000
Liabilities
Bank
2012 (cont'd.)
(98,107)
164,426
312,574
477,000
Nonspecific
maturity
RM'000
1,014,062
325,524
500,000
3,111,635
164,426
312,574
6,730,094
2,315,935
Total
RM'000
222
Assets
Bank
2011
1,323,516
8,122
50,984
1,382,622
10,770
99,729
2,134,176
>1 - 3
months
RM'000
2,023,677
Up to 1
month
RM000
55,707
233,453
289,160
>3 - 12
months
RM'000
190,781
50,210
1,359,935
1,600,926
>1 - 5
years
RM'000
226,500
147,355
1,772,220
2,146,075
Over 5
years
RM'000
8,890
113,525
8,305
129,635
159,988
420,343
Nonspecific
maturity
RM'000
The following table shows the maturity analysis of the Banks assets and liabilities based on undiscounted repayment obligations.
74,599
417,281
197,565
3,516,321
8,890
113,525
8,305
129,635
159,988
7,973,302
3,347,193
Total
RM'000
223
1,361,440
22,768
1,384,208
(1,586)
721,218
>1 - 3
months
RM'000
1,412,696
262
1,412,958
Up to 1
month
RM000
(48,691)
279,211
58,640
337,851
>3 - 12
months
RM'000
1,372,387
112,749
115,790
228,539
>1 - 5
years
RM'000
(1,114,938)
3,261,013
3,261,013
Over 5
years
RM'000
(47,357)
122,182
345,518
467,700
Nonspecific
maturity
RM'000
The Bank is subject to liquidity requirements to support calls under outstanding contingent liabilities and undrawn credit facility commitments
as disclosed in Notes 32. These have been incorporated in the net off-balance sheet position for year ended 31 December 2012. The total
outstanding contractual amounts of these items do not represent future cash requirements since the Bank expects many of these contingent
liabilities and commitments (such as direct credit substitutes and undrawn credit facilities) to expire without being called or drawn upon,
and many of the contingent liabilities (such as letters of credit) are reimbursable by customers.
Liabilities
Bank
2011 (cont'd.)
881,033
3,166,096
3,458,473
122,182
345,518
7,092,269
Total
RM'000
224
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
(a)
848,639
1,183,848
156,673
(b)
506,663
26,198
366
(c)
871,292
286,039
(d)
(e)
(f)
208,308
2,433,918
19,804
61,876
143,276
5,093,776
141,750
1,953,956
9,887
43,313
159,988
4,105
3,809,084
1,504,723
6,677
76,568
133,483
1,878,490
1,189,534
50,000
500,000
1,039,623
1,617,748
161,005
6,888
4,564,798
528,978
5,093,776
1,233,301
699,716
1,220,992
188,593
3,342,602
466,482
3,809,084
721,822
505,488
203,140
1,430,450
448,040
1,878,490
392,203
206,319
191,579
Notes
Assets
Cash and short-term funds
Deposits and placements with banks
and other financial institutions
Available-for-sale financial
investments
Held-to-maturity financial
investments
Advances and financing
Other assets
Property and equipment
Investment properties
Deferred tax assets
Total assets
(g)
Liabilities
Mudharabah deposit acceptance
Deposits from other financial institutions
Medium term note
Long term financing
Other liabilities
Government funds
Deferred tax liabilities
Total liabilities
Islamic general fund
Total liabilities and Islamic banking funds
Commitments
(h)
(i)
(j)
(k)
(g)
(t)
225
226
Note
2012
RM'000
2011
RM'000
(l)
245,398
155,939
(n)
(o)
(70,051)
(5,049)
(40,100)
-
(p)
170,298
(74,407)
95,891
115,839
(77,000)
38,839
(25,083)
70,808
(8,959)
1,160
63,009
(18,433)
20,406
2,071
(5,086)
17,391
(513)
(513)
62,496
1,051
1,051
18,442
(q)
(r)
(s)
227
At 31 December 2011
At 31 December 2012
1,051
1,051
1,051
550,564
538
550,564
550,564
550,564
(513)
(513)
1,009
1,009
1,009
(85,133)
17,391
17,391
(118,116)
15,592
(102,524)
(23,133)
(1,009)
63,009
62,000
(115,430)
30,297
(85,133)
466,482
1,051
17,391
18,442
432,448
15,592
448,040
528,978
(513)
63,009
62,496
436,185
30,297
466,482
550,564
550,564
1,051
1,051
Total
equity
RM'000
NonNondistributable distributable
availableprofit
Capital
for-sale equalisation Accumulated
funds
reserve
reserve
losses
RM'000
RM'000
RM'000
RM'000
2011
RM'000
70,808
20,406
(3,180)
51,340
(23,077)
(16,665)
6,605
85,831
21,449
5,599
(8,615)
(14,523)
6,005
30,321
(7,883)
(330,465)
(43,767)
50,000
(515,968)
398,102
(364,150)
(187)
(364,337)
(3,210)
(25,832)
1,233,301
(474,173)
718,581
1,478,988
(1,918)
1,477,070
(8,455)
(150,000)
1,337,674
(1,990,000)
(810,781)
(427,789)
(427,789)
228
2011
RM'000
427,061
(87,152)
500,000
839,909
(22,106)
(22,106)
(335,209)
1,183,848
848,639
1,027,175
156,673
1,183,848
2012
RM'000
2011
RM'000
848,639
1,183,848
Notes to the financial statements for the financial year ended 31 December 2012
(a) Cash at banks and on hand
GROUP AND BANK
2012
RM'000
2011
RM'000
27,230
11,635
821,409
848,639
1,172,213
1,183,848
229
Licensed banks
Other financial institutions
2012
RM'000
2011
RM'000
408,689
97,974
506,663
24,198
2,000
26,198
2011
RM'000
186,207
170,456
150,000
506,663
20,499
5,699
26,198
The weighted average effective profit rate for deposits and placements
with banks and other financial institutions is 3.29% (2011: 3.65%) per annum.
(c) Available-for-sale financial investments
At fair value
Money market instruments:
Private debt securities
Malaysian Government Investment issue
Total available-for-sale financial investment
230
2011
RM'000
417,316
453,976
871,292
96,285
189,754
286,039
2012
RM'000
2011
RM'000
75,738
5,145
790,409
871,292
10,017
15,209
97,357
163,456
286,039
At amortised cost
Money market instruments:
Malaysian Government Investment issue
Cagamas bonds
Unquoted securities:
Private debt securities
Total held-to-maturity financial investments
2012
RM'000
2011
RM'000
90,334
5,038
95,372
90,385
5,057
95,442
112,936
208,308
46,308
141,750
2012
RM'000
45,095
163,213
208,308
2011
RM'000
35,098
10,041
96,611
141,750
231
2012
RM'000
2011
RM'000
93,179
10,185
114,694
92,300
5,116
47,774
232
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
1,343,491
242,882
40,091
60,389
438,661
222,883
191,279
19,049
206
258,837
31,477
2,849,245
(327,042)
2,522,203
1,112,202
234,269
16,362
54,105
320,842
224,014
120,055
117,302
3,428
14,233
31,422
2,248,234
(150,970)
2,097,264
934,444
511,880
8,454
25,810
157,695
90,656
73,963
58,931
3,887
89
32,784
1,898,593
(150,473)
1,748,120
(45,674)
(42,611)
2,433,918
(92,010)
(51,298)
1,953,956
(191,653)
(51,744)
1,504,723
(f)
Other assets
At 1 January 2012/2011
Recognised in profit or loss (Note r)
At 31 December 2012/2011
Presented after appropriate offsetting as follows:
Deferred tax assets
Deferred tax liabilities
As at 31
December
2012
RM'000
As at 31
December
2011
RM'000
As at 1
January
2011
RM'000
227,579
418,175
725,233
1,151,216
2,522,203
123,035
346,673
543,981
1,083,575
2,097,264
298,015
304,028
428,679
717,398
1,748,120
2011
RM'000
4,043
15,761
19,804
3,310
6,577
9,887
2011
RM'000
4,105
(10,993)
(6,888)
4,105
4,105
25,561
(32,449)
(6,888)
35,071
(30,966)
4,105
233
Unabsorbed
business
losses
RM'000
Provision
RM'000
Total
RM'000
13,842
13,842
2,371
16,213
15,301
15,301
(7,571)
7,730
5,928
5,928
(4,310)
1,618
35,071
35,071
(9,510)
25,561
3,594
10,248
13,842
13,842
15,301
15,301
15,301
5,928
5,928
5,928
3,594
31,477
35,071
35,071
Property
and
equipment
RM'000
Total
RM'000
(30,966)
(30,966)
(1,483)
(32,449)
(30,966)
(30,966)
(1,483)
(32,449)
(29,391)
(1,575)
(30,966)
(30,966)
(29,391)
(1,575)
(30,966)
(30,966)
234
2011
RM'000
1,189,534
1,233,301
(ii)
2012
RM'000
2011
RM'000
1,148,784
40,750
1,189,534
1,233,301
1,233,301
2012
RM'000
2011
RM'000
569,782
105,172
514,580
1,189,534
1,181,201
29,500
22,600
1,233,301
235
2011
RM'000
50,000
Licensed banks
(i)
2011
RM'000
50,000
2011
RM'000
1,039,623
699,716
2011
RM'000
95,543
944,080
1,039,623
699,716
699,716
The unsecured term loans denominated in RM are sourced from the following:
GROUP AND BANK
Loans from:
- Government of Malaysia
- Other financial institutions
2012
RM'000
2011
RM'000
629,371
410,252
1,039,623
699,716
699,716
The interest rates on the loans from Government of Malaysia is1.50% per annum.
236
Other payables
Accrued profit on long term advances financing
(l)
2011
RM'000
1,582,337
35,411
1,617,748
1,209,624
11,368
1,220,992
2011
RM'000
66,253
16,466
17,491
7,370
7,920
9,736
2,948
134
1,669
1,817
1,540
133,344
52,474
20,078
7,809
31,693
245,398
49,175
17,534
14,277
7,412
5,118
5,324
2,332
225
713
98
1,433
103,641
13,162
5,181
4,514
29,441
155,939
237
Fee income
Rental income
Government fund released
Others
2011
RM'000
7,006
7,961
16,665
61
31,693
7,342
7,540
14,523
36
29,441
2012
RM'000
2011
RM'000
56,149
78
7,040
6,690
94
70,051
11,836
28,264
40,100
2011
RM'000
5,049
5,049
Profit equalisation reserve at the end of the financial year of which the shareholder's portion is RM1,009,000.
Under the new BNM PER Guideline, the PER of the Bank is to be classified as a separate reserve in equity.
238
Personnel expenses
Establishment related expenses
Promotion and marketing expenses
Administration and general expenses
2011
RM'000
42,484
12,842
2,609
16,472
74,407
50,756
12,225
1,744
12,275
77,000
Included in the administration expenses above is depreciation charge for the year for property and equipment of
RM6,605,000 (2011: RM6,005,000).
(q) Allowance/ (writeback) for impairment on advances and financing
Income tax:
Income tax expense for the year
Overprovision in prior years
Deferred tax:
Origination of temporary differences (Note g)
2011
RM'000
(36,704)
33,524
51,340
(23,077)
25,083
(19,996)
41,445
5,599
(8,615)
18,433
2011
RM'000
(2,034)
(2,034)
2,034
2,034
10,993
8,959
(4,105)
(2,071)
Domestic income tax is calculated at the Malaysian statutory tax rate of 25% (2011: 25%) of the estimated
assessable profit for the year.
239
2012
RM'000
2011
RM'000
30,172
3,169
33,341
49,128
13,547
62,675
The reconciliation between tax expense and accounting profit of the Group and Bank
multiplied by the applicable corporate tax rate are as follows:
GROUP AND BANK
2012
RM'000
2011
RM'000
70,808
20,406
17,702
3,980
(5,527)
(5,162)
(2,034)
8,959
5,102
21,302
(12,499)
(307)
(15,669)
(2,071)
(s) Zakat
240
2011
RM'000
1,110
(2,270)
(1,160)
3,870
1,216
5,086
Commitments
2011
RM'000
392,203
206,319
Other than the above, the Group and the Bank do not have contingencies under Islamic banking business.
241
FRS as at
31 Dec 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
31 Dec 2011
RM'000
3,864,997
3,864,999
(245,341)
(245,341)
(98,992)
(4,345)
(103,337)
3,520,664
(4,343)
3,516,321
34,613
34,613
Liabilities
Government funds
Deferred tax liability
339,392
24,468
6,126
(24,468)
345,518
-
242
Group
Other operating income
Allowance for impairment loss
- Loans, advances and financing
Bank
Other operating income
Allowance for impairment loss
- Loans, advances and financing
Taxation
FRS as at
31 Dec 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
31 Dec 2011
RM'000
35,520
245
35,765
41,196
(32,661)
8,535
35,506
245
35,751
41,196
28,878
(32,661)
(59,081)
8,535
(30,203)
FRS as at
31 Dec 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
31 Dec 2011
RM'000
(453,041)
48,612
(404,429)
(495,557)
48,612
(446,945)
Group
Accumulated losses
Bank
Accumulated losses
243
FRS as at
1 Jan 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
1 Jan 2011
RM'000
3,980,253
3,980,253
(592,948)
(592,948)
(141,576)
28,316
(113,260)
3,245,729
28,316
3,274,045
347,933
18,240
366,173
FRS as at
1 Jan 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
1 Jan 2011
RM'000
(566,668)
10,077
(556,591)
(607,841)
10,077
(597,764)
Group
Accumulated losses
Bank
Accumulated losses
FRS as at
31 Dec 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
31 Dec 2011
RM'000
2,097,264
2,097,264
(92,010)
(92,010)
(57,709)
6,411
(51,298)
1,947,545
6,411
1,953,956
4,105
4,105
182,575
25,797
6,018
(25,797)
188,593
-
FRS as at
31 Dec 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
31 Dec 2011
RM'000
144,069
11,870
155,939
8,634
27,831
(27,067)
(29,902)
(18,433)
(2,071)
245
FRS as at
31 Dec 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
31 Dec 2011
RM'000
(115,430)
30,297
(85,133)
FRS as at
31 Dec 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
31 Dec 2011
RM'000
1,748,120
1,748,120
(190,997)
(656)
(191,653)
(85,124)
33,380
(51,744)
1,471,999
32,724
1,504,723
185,253
17,887
203,140
FRS as at
1 Jan 2011
RM'000
MFRS
adoption-CA
RM'000
MFRS as at
1 Jan 2011
RM'000
(118,116)
15,592
(102,524)
Bank
Assets
Advances and financing
- Gross advances and
financing
- Individual assessment
allowance
- Collective assessment
allowance
- Net advances and
financing (Note 38 (e))
Liabilities
Government funds
Statement of change
in equity
Bank
Accumulated losses
246
Menara SME Bank, Jalan Sultan Ismail, Peti Surat 12352, 50774 Kuala Lumpur
www.smebank.com.my