THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
31 March 31 December
2017 2016
Note RM'000 RM'000
ASSETS
Cash and short term funds 15 318,273 101,788
Held-for-trading securities 16 160,059 245,907
Available-for-sale securities 17 145,469 203,951
Held-to-maturity securities 18 8,896 9,097
Loans, advances and receivables 19 355,461 269,299
Derivative financial assets 155 2,611
Other assets 20 5,942 2,280
Property and equipment 5,013 4,963
Tax recoverable 4,557 3,746
Deferred tax assets 1,291 1,483
TOTAL ASSETS 1,005,116 845,125
LIABILITIES
Deposits from customers 21 418,687 218,896
Deposits and placements of banks and other
financial institutions 22 165,930 205,344
Derivative financial liabilities 37 -
Other liabilities 23 8,853 9,647
TOTAL LIABILITIES 593,507 433,887
EQUITY
Share capital 411,700 411,700
Other reserves (227) (1,400)
Retained earnings 136 938
TOTAL EQUITY ATTRIBUTABLE TO EQUITY
HOLDER OF THE BANK 411,609 411,238
TOTAL LIABILITIES AND EQUITY 1,005,116 845,125
COMMITMENTS AND CONTINGENCIES 30 365,999 435,481
The Condensed Interim Financial Statements should be read in conjunction with the audited
financial statements of the Bank for the year ended 31 December 2016.
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION AS AT 31 MARCH 2017
Page 2
Note 31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Interest income 24 7,874 6,587 7,874 6,587
Interest expense 25 (3,054) (1,929) (3,054) (1,929)
Net interest income 4,820 4,658 4,820 4,658
Other operating income 26 5,785 14,374 5,785 14,374
Net operating income 10,605 19,032 10,605 19,032
Operating expenses 27 (10,537) (11,673) (10,537) (11,673)
Operating profit 68 7,359 68 7,359
Allowance/(write-back) for impairment on
loans, advances and receivables 28 1,048 (1,283) 1,048 (1,283)
(Loss)/Profit before tax expense (980) 8,642 (980) 8,642
Tax expense 29 (178) 2,247 (178) 2,247
Net (loss)/profit for the period (802) 6,395 (802) 6,395
Other comprehensive income, net of income tax
to profit or loss:
Cash flow hedge 14 (84) 14 (84)
Fair value of available-for-sale financial asset 1,159 - 1,159 -
Total comprehensive income
for the period, net of tax 371 6,311 371 6,311
The Condensed Interim Financial Statements should be read in conjunction with the audited
financial statements of the Bank for the year ended 31 December 2016.
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME
1st Quarter Ended Three Months Ended
Items that may be reclassified subsequently
Page 3
Statutory Revaluation Hedging Accumulated
Share capital reserve reserve reserve profit/(loss) Total
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
At 1 January 2017 411,700 385 (1,865) 80 938 411,238
Net loss for the period - - - - (802) (802)
Revaluation reserve - - 1,159 - - 1,159
Hedging reserve - - - 14 - 14
At 31 March 2017 411,700 385 (706) 94 136 411,609
At 1 January 2016 330,000 - - 55 (7,585) 322,470
Net profit for the period - - - - 439 439
Revaluation reserve - - - - - -
Hedging reserve - - - (84) - (84)
At 31 March 2016 330,000 - - (29) (7,146) 322,825
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
The Interim Financial Statements should be read in conjunction with the audited financial statements of the Bank for the year ended 31
December 2016.
STATEMENT OF CHANGES IN EQUITY
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
Non distributable
Page 4
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
31 Mar 31 Mar
2017 2016
RM'000 RM'000
Cash flows from operating activities
(Loss)/Profit before taxation for the period (980) 8,642
Adjustments for:
Net allowance for impairment on loans, advances
and receivables 1,048 1,283
Depreciation of property and equipment 371 502
Net gain on derivatives and investments (1,634) -
Operating profit before working capital changes (1,195) 10,427
Changes in working capital:
Change in loans, advances and receivables (87,210) 104,390
Change in other assets (3,662) (1,579)
Change in deposits from customers 199,791 57,061
Change in deposits and placements of banks and
other financial institutions (39,414) (190,437)
Change in other liabilities (794) 1,108
Income tax paid (811) (2,010)
Net cash generated from operating activities 66,705 (21,040)
Cash flows from investing activities
Purchase of property and equipment (421) (1,376)
Net investment of held-for-trading securities 85,848 -
Net investment of available-for-sale securities 64,152 9,117
Net investment of held-to-maturity securities 201 786
Net cash used in investing activities 149,780 8,527
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
Page 5
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
31 Mar 31 Mar
2017 2016
RM'000 RM'000
Net change in cash and cash equivalent 216,485 (12,513)
Cash and cash equivalents at beginning of the period 101,788 206,726
Cash and cash equivalents at end of the period 318,273 194,213
Analysis of cash and cash equivalents
Cash and short term funds at end of period 318,273 194,213
The Interim Financial Statements should be read in conjunction with the audited financial
statements of the Bank for the year ended 31 December 2016.
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2016 (continued)
Page 6
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
1. GENERAL INFORMATION
(Incorporated in Malaysia)
National Bank of Abu Dhabi Malaysia Berhad ("the Bank") is principally engaged in the
provision of banking and related financial services.
The Bank is a company limited by shares, a licenced bank, incorporated and domiciled in
Malaysia. The principal place of business of the bank is located at Level 28, Menara Maxis,
Kuala Lumpur City Centre, 50088 Kuala Lumpur.
The Bank is a wholly-owned subsidiary of National Bank of Abu Dhabi PJSC ("Holding
Company"), a bank incorporated in Abu Dhabi, United Arab Emirate and listed at the Abu
Dhabi Securities Exchange. The ultimate parent company of the Bank is the Abu Dhabi
Investment Council, an entity owned by the Government of the Emirates of Abu Dhabi.
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
Merger between Nasional Bank of Abi Dhabi PJSC ("NBAD") and First Gulf Bank PJSC
("FGB")
On 3 July 2016, the Boards of Directors of NBAD and FGB have voted unanimously to
recommend to shareholders a merger of the two Abu Dhabi-listed banks.
Subsequently, on 7 December 2016, the proposed merger (the Merger) of the NBAD and
FGB was approved by the Shareholders to be effected by way of a merger pursuant to
Article 283(1) of UAE Federal Law No. 2 of 2015 Concerning Commercial Companies (the
Law) subject to the terms and conditions of the Merger and with effect from the Merger
becoming effective.
Upon completion of the approved merger, FGB shareholders will own approximately 52
percent of the combined bank and NBAD shareholders will own approximately 48 percent.
The Bank has obtained the necessary approval from Bank Negara Malaysia for the change of
shareholding by the ultimate parent company Abu Dhabi Investment Council, pursuant to
Section 89 of the FSA on 13 January 2017.
The Securities and Commodities Authority of the UAE approved the Merger and confirmed
that the Merger takes effect on 31 March 2017.
Page 7
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
1. GENERAL INFORMATION (continued)
2. BASIS OF PREPARATION
The unaudited condensed interim financial statements have been prepared in accordance
with MFRS 134: Interim Financial Reporting issued by the Malaysian Accounting Standards
Board ("MASB") and Policy Document on Financial Reporting issued by Bank Negara
Malaysia ("BNM").
The unaudited condensed interim financial statements do not include all of the information
required for full annual financial statements, and should be read in conjunction with the
audited financial statements of the Bank as at and for the financial year ended 31 December
2016. The explanatory notes attached to the interim financial statements provide an
explanation of the events and transactions that are significant for an understanding of the
financial position and performance of the Bank since the year ended 31 December 2016.
The following are accounting standards, amendments and interpretations that have been
issued by the Malaysian Accounting Standards Board ("MASB") but have not been adopted
by the Bank:
The unaudited interim condensed financial statements for the three months ended 31 March
2016 have been prepared under the historical cost convention except for the valuation of
available-for-sale securities and derivative financial instruments that are carried at fair
value.
The significant accounting policies and methods of computation applied in the unaudited
interim financial statements are consistent with those adopted in the most recent annual
financial statements for the year ended 31 December 2016.
Merger between Nasional Bank of Abi Dhabi PJSC ("NBAD") and First Gulf Bank PJSC
("FGB") (continued)
The combined bank will be named as “First Abu Dhabi Bank”, upon regulatory approvals at
a General Assembly Meeting held on 25 April 2017.
Page 8
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
2. BASIS OF PREPARATION (continued)
(a)
•
A number of new standards and amendments to standards and interpretations are
effective for financial year beginning after 1 January 2018. None of these is expected to
have a significant effect on the financial statements of the Bank, except the following set
out below:
Standards and amendments that have been issued but not yet effective
IC Interpretation 22 ‘Foreign Currency Transactions and Advance Consideration’
(effective from 1 January 2018) applies when an entity recognises a non-monetary
asset or non-monetary liability arising from the payment or receipt of advance
consideration. MFRS 121 requires an entity to use the exchange rate at the ‘date of
the transaction’ to record foreign currency transactions.
IC Interpretation 22 provides guidance how to determine ‘the date of transaction’
when a single payment/receipt is made, as well as for situations where multiple
payments/receipts are made.
The date of transaction is the date when the payment or receipt of advance
consideration gives rise to the non-monetary asset or non-monetary liability when
the entity is no longer exposed to foreign exchange risk. If there are multiple
payments or receipts in advance, the entity should determine the date of the
transaction for each payment or receipt.
An entity has the option to apply IC Interpretation 22 retrospectively or
prospectively.
Page 9
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
2. BASIS OF PREPARATION (continued)
(a)
• MFRS 9 ‘Financial Instruments’ (effective from 1 January 2018) will replace MFRS
139 "Financial Instruments: Recognition and Measurement".
MFRS 9 retains but simplifies the mixed measurement model in MFRS 139 and
establishes three primary measurement categories for financial assets: amortised
cost, fair value through profit or loss and fair value through other comprehensive
income ("OCI"). The basis of classification depends on the entity's business model
and the cash flow characteristics of the financial asset. Investments in equity
instruments are always measured at fair value through profit or loss with an
irrevocable option at inception to present changes in fair value in OCI (provided
the instrument is not held for trading). A debt instrument is measured at amortised
cost only if the entity is holding it to collect contractual cash flows and the cash
flows represent principal and interest.
For liabilities, the standard retains most of the MFRS 139 requirements. These
include amortised cost accounting for most financial liabilities, with bifurcation of
embedded derivatives. The main change is that, in cases where the fair value option
is taken for financial liabilities, the part of a fair value change due to an entity’s own
credit risk is recorded in other comprehensive income rather than the income
statement, unless this creates an accounting mismatch.
MFRS 9 introduces an expected credit loss model on impairment that replaces the
incurred loss impairment model used in MFRS 139. The expected credit loss model
is forward-looking and eliminates the need for a trigger event to have occurred
before credit losses are recognised.
Standards and amendments that have been issued but not yet effective (continued)
Page 10
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
2. BASIS OF PREPARATION (continued)
(a)
•
•
•
•
•
•
•
•
•
•
•
Standards and amendments that have been issued but not yet effective (continued)
MFRS 15 ‘Revenue from contracts with customers’ (effective from 1 January 2018)
replaces MFRS 118 ‘Revenue’ and MFRS 111 ‘Construction contracts’ and related
interpretations. The core principle in MFRS 15 is that an entity recognises revenue
to depict the transfer of promised goods or services to the customer in an amount
that reflects the consideration to which the entity expects to be entitled in exchange
for those goods or services.
Revenue is recognised when a customer obtains control of goods or services, i.e.
when the customer has the ability to direct the use of and obtain the benefits from
the goods or services.
A new five-step process is applied before revenue can be recognised:
Identify contracts with customers;
Identify the separate performance obligations;
Determine the transaction price of the contract;
Recognise the revenue as each performance obligation is satisfied.
Allocate the transaction price to each of the separate performance obligations;
and
There are new specific rules on licenses, warranties, non-refundable upfront
fees, and consignment arrangements, to name a few.
As with any new standard, there are also increased disclosures.
Key provisions of the new standard are as follows:
Any bundled goods or services that are distinct must be separately recognised,
and any discounts or rebates on the contract price must generally be allocated
to the separate elements.
If the consideration varies (such as for incentives, rebates, performance fees,
royalties, success of an outcome etc), minimum amounts of revenue must be
recognised if they are not at significant risk of reversal.
The point at which revenue is able to be recognised may shift: some revenue
which is currently recognised at a point in time at the end of a contract may
have to be recognised over the contract term and vice versa.
Page 11
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
3. SIGNIFICANT ACCOUNTING POLICIES
4 ESTIMATES
5. AUDITORS REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS
6. COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS
7. UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE
8. CHANGES IN ESTIMATES
The auditors' report on the audited financial statements for the financial year ended 31
December 2016 was not qualified.
The operations of the Bank were not materially affected by any seasonal or cyclical factors
since the financial year ended 31 December 2016.
There were no unusual items affecting the assets, liabilities, equity, net income or cash flow
of the Bank for the period ended 31 March 2017.
There were no material estimated amounts in the period ended 31 March 2017.
The accounting policies applied by the Bank in these condensed interim financial statements
are the same as those applied by the Bank in its audited financial statements as at and for the
year ended 31 December 2016.
The preparation of these condensed interim financial statements requires management to
make judgements, estimates and assumptions that affect the application of accounting
policies and reported amounts of assets and liabilities, income and expense. Actual results
may differ from these estimates.
In preparing these condensed interim financial statements, the significant judgements made
by management in applying the Bank’s accounting policies and the key sources of
estimation and uncertainty were the same as those that were applied to the audited financial
statements as at and for the year ended 31 December 2016.
Page 12
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
9.
SECURITIES
10. DIVIDEND
11. SEGMENTAL REPORTING ON REVENUE, PROFIT AND ASSETS
12. SIGNIFICANT EVENTS DURING THE FINANCIAL PERIOD
13. SUBSEQUENT EVENTS
14. CHANGES IN COMPOSITION OF THE BANK
There were no significant events during the period ended 31 March 2017 that have not been
disclosed in these condensed interim financial statements.
Segmental reporting has not been prepared as there is no other segment other than the
Wholesale Banking.
There were no dividends paid or declared for the period ended 31 March 2017.
There were no other issuance, cancellation, repurchase, resale or repayment of debt and
equity securities for the period under review.
ISSUANCE, REPURCHASE AND REPAYMENTS OF DEBT AND EQUITY
There were no significant changes in the composition of the Bank for the period ended 31
March 2017.
There were no significant events subsequent to the statement of financial position date
which have not been disclosed in these condensed interim financial statements.
Page 13
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
15. CASH AND SHORT TERM FUNDS
31 March 31 December
2017 2016
RM'000 RM'000
Cash and balances with banks and other
financial institutions 4,335 5,191
Money at call and deposit placements
maturing within three months 313,938 96,597
318,273 101,788
16. HELD-FOR-TRADING SECURITIES
31 March 31 December
2017 2016
RM'000 RM'000
At fair value
Government securities & treasury bills:
Malaysian Government Investment Issues 10,028 -
Malaysian Government Securities 40,206 -
Money market instruments:
Negotiable instruments of deposit 49,772 200,680
Cagamas Bonds 60,053 45,227
160,059 245,907
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
Page 14
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
17. AVAILABLE-FOR-SALE SECURITIES 31 March 31 December
2017 2016
RM'000 RM'000
At fair value
Government securities & treasury bills:
Malaysian Government Investment Issues 50,213 50,467
Malaysian Government Sukuk - 108,449
Malaysian Government Securities 40,084 40,003
Money market instruments:
Negotiable instruments of deposit 50,082 -
Cagamas Bonds 5,090 5,032
145,469 203,951
18. HELD-TO-MATURITY SECURITIES
31 March 31 December
2017 2016
RM'000 RM'000
At amortised cost
Non-money market instruments:
Corporate Sukuk 8,896 9,097
Page 15
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
19. LOANS, ADVANCES AND RECEIVABLES
31 March 31 December
2017 2016
At amortised cost RM'000 RM'000
(i) By type:
Syndication term loans 77,354 82,430
Term loans 66,541 49,536
Trust receipts 151,009 97,793
Revolving credits 62,574 39,662
Overdrafts 2,301 3,148
Gross loans, advances and receivables 359,779 272,569
Less: Allowance for impaired loans, advances
and receivables
- collective assessment (4,318) (3,270)
- individual assessment - -
Net loans, advances and receivables 355,461 269,299
(ii) The maturity structure of gross loans, advances and receivables are as follows:
Maturing within one year 218,459 145,793
More than three years to five years 121,563 126,776
More than five years 19,757 -
359,779 272,569
Page 16
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
19. LOANS, ADVANCES AND RECEIVABLES (continued)
31 March 31 December
2017 2016
RM'000 RM'000
(iii)
Business enterprises 282,425 190,139
Foreign entities 77,354 82,430
359,779 272,569
(iv)
Malaysia 282,425 190,139
Indonesia 77,354 82,430
359,779 272,569
(v)
Variable rate
- Cost plus 151,009 129,627
- Other variable plus 208,770 142,942
359,779 272,569
(vi)
Agriculture 67,832 30,204
Mining and quarrying 2,301 3,148
Real estate 51,581 31,833
Wholesale and retail trade 141,677 124,953
Other sectors 96,388 82,431
359,779 272,569
Gross loans, advances and receivables analysed by geographical distribution are as
follows:
Gross loans, advances and receivables analysed by interest rate sensitivity are as
follows:
Gross loans, advances and receivables analysed by type of customer are as follows:
Gross loans, advances and receivables analysed by economic sectors are as follows:
Page 17
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
19. LOANS, ADVANCES AND RECEIVABLES (continued)
31 March 31 December
2017 2016
RM'000 RM'000
(vii)
At 1 January - -
Impaired/(Recoveries) during the period/year - -
Closing balance - -
- -
(viii) Movements in collective assessment allowance are as follows:
At 1 January 3,270 4,165
Allowance made during the financial period 1,048 -
Written back during the financial year - (895)
Closing balance 4,318 3,270
As % of gross loans, advances and receivables less
individual assessment allowance 1.20% 1.20%
20. OTHER ASSETS
31 March 31 December
2017 2016
RM'000 RM'000
Interest receivables 71 448
Other receivables, deposits and prepayments 5,511 1,832
Amount due from holding company 360 -
5,942 2,280
Ratio of net impaired loans, advances and receivables
to net loans, advances and receivables
Impaired loans - movements in impaired loans, advances and receivables are as
follows:
Page 18
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
21. DEPOSITS FROM CUSTOMERS
31 March 31 December
2017 2016
RM'000 RM'000
At amortised cost
a) By type of deposit
Demand deposits 64,383 36,288
Short-term deposits 354,304 182,608
418,687 218,896
b) By type of customer
Business enterprises 324,689 173,944
Foreign customers 13,983 14,678
Non-bank financial institutions 80,015 30,274
418,687 218,896
c) The maturity structure of short-term deposits is as follow:
Due within six months 354,304 182,608
22. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER
FINANCIAL INSTITUTIONS
31 March 31 December
2017 2016
RM'000 RM'000
At amortised cost
Licensed bank 165,930 205,344
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
Page 19
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
23. OTHER LIABILITIES
31 March 31 December
2017 2016
RM'000 RM'000
Interest payable 85 779
Other payable and accruals 2,060 2,092
Provisions for other operating expenses 6,114 6,776
Amount due to holding company 594 -
8,853 9,647
Page 20
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
24. INTEREST INCOME
31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Balances with banks 896 1,420 896 1,420
Held-for-trading securities 1,606 - 1,606 -
Available-for-sale securities 1,754 2,044 1,754 2,044
Held-to-maturity securities 73 430 73 430
Loans, advances and receivables 2,921 2,241 2,921 2,241
Others 624 452 624 452
7,874 6,587 7,874 6,587
25. INTEREST EXPENSE
31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Deposits from customer 1,076 367 1,076 367
Deposits from banks 469 401 469 401
Others 1,509 1,161 1,509 1,161
3,054 1,929 3,054 1,929
(Incorporated in Malaysia)
1st Quarter Ended
1st Quarter Ended
Three Months Ended
Three Months Ended
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
Page 21
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
26. OTHER OPERATING INCOME
31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Fee and commission income 2,667 13,128 2,667 13,128
Net gain/(loss) on foreign exchange 529 (152) 529 (152)
Net gain on derivatives and
investments 1,634 - 1,634 -
Other income 955 1,398 955 1,398
5,785 14,374 5,785 14,374
27. OTHER OPERATING EXPENSES
31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Personnel costs
- Salaries, allowances and bonuses 4,819 5,064 4,819 5,064
- Defined contribution plan 587 403 587 403
- Others 866 884 866 884
6,272 6,351 6,272 6,351
Establishment costs
- Rental of premises 826 1,087 826 1,087
- Lease rental 13 10 13 10
- Depreciation 371 502 371 502
- Insurance 56 57 56 57
- Utilities 44 38 44 38
- Information technology expenses 830 1,329 830 1,329
- General repair and maintenance 9 24 9 24
- Others 18 24 18 24
2,167 3,071 2,167 3,071
1st Quarter Ended Three Months Ended
1st Quarter Ended Three Months Ended
Page 22
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
27. OTHER OPERATING EXPENSES (continued)
31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Administration and general expenses
- Advertising and publicity 39 34 39 34
- Communication expenses 859 588 859 588
- Legal and professional fees 227 144 227 144
- Others 973 1,485 973 1,485
2,098 2,251 2,098 2,251
Total other operating expenses 10,537 11,673 10,537 11,673
28. NET ALLOWANCE FOR IMPAIRMENT ON LOANS, ADVANCES AND
RECEIVABLES
31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Individual assessment allowance - - - -
Collective impairment allowance
- charged/(written back) 1,048 (1,283) 1,048 (1,283)
1,048 (1,283) 1,048 (1,283)
Three Months Ended1st Quarter Ended
1st Quarter Ended Three Months Ended
Page 23
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
29. TAX EXPENSE
31 Mar 31 Mar 31 Mar 31 Mar
2017 2016 2017 2016
RM'000 RM'000 RM'000 RM'000
Tax expense for the financial period
- Malaysian income tax - 2,475 - 2,475
Deferred tax
- Origination and reversal of
temporary differences (178) (228) (178) (228)
(178) 2,247 (178) 2,247
1st Quarter Ended Three Months Ended
Page 24
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
30. COMMITMENTS AND CONTINGENCIES
Credit Risk Credit Risk
Principal equivalent weighted Principal equivalent weighted
amount amount assets amount amount assets
RM'000 RM'000 RM'000 RM'000 RM'000 RM'000
Transaction related contingent items 63,647 31,824 23,156 90,635 45,318 36,388
Short-term self-liquidating trade-related contingencies - - - 836 167 167
Foreign exchange related contracts:
- maturity within one year 39,064 641 128 25,010 84 17
Irrevocable commitments to extend credit:
- maturity more than one year 85,403 42,702 42,702 40,000 20,000 20,000
Interest rate related contracts:
- over five years 8,846 566 113 121,122 12,075 2,415
Other unconditionally cancellable commitments 169,039 - - 157,878 - -
365,999 75,733 66,099 435,481 77,644 58,987
31 December 201631 March 2017
Page 25
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
31. CAPITAL ADEQUACY
i) Capital Adequacy Ratios
31 March 31 December
2017 2016
% %
Common Equity Tier 1 ("CET1") ratio 64.689% 80.730%
Tier 1 ratio 64.689% 80.730%
Total Capital ratio 65.370% 81.374%
ii) Capital Components of CET1, Tier I and Tier II Capital
31 March 31 December
2017 2016
RM'000 RM'000
Common Equity Tier 1 ("CET1") / Tier 1 capital
Paid-up share capital 411,700 411,700
Retained earnings 136 938
Other reserve (227) (1,400)
CET1 / Tier 1 capital before regulatory adjustments 411,609 411,238
Less: Regulatory adjustments
- Other reserve (94) (80)
- Deferred tax assets (1,321) (1,508)
CET1 / Tier 1 capital after regulatory adjustments 410,194 409,650
The capital adequacy ratios of the Bank have been computed based on BNM’s Capital
Adequacy Framework (Capital Components and Risk-Weighted Assets) issued on 28
November 2012 and the disclosures on capital adequacy ratios are pursuant to the
requirements of Bank Negara Malaysia ("BNM")'s Risk Weighted Capital Adequacy
Framework (Basel II) - Disclosure Requirements (Pillar 3).
Page 26
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
31. CAPITAL ADEQUACY (continued)
ii) Capital Components of CET1, Tier I and Tier II Capital (continued)
31 March 31 December
2017 2016
RM'000 RM'000
Tier-2 capital
Allowance for collective assessment impairment 4,318 3,270
Total Tier-2 capital 4,318 3,270
Total capital 414,512 412,920
iii) The breakdown of risk-weighted assets by each major risk category is as follows:
31 March 31 December
2017 2016
RM'000 RM'000
Credit risk 520,565 412,758
Operational risk 79,901 75,409
Market risk 33,638 19,267
Total risk-weighted assets 634,104 507,434
Page 27
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHS FINANCIAL PERIOD ENDED 31 MARCH 2017
32. REVIEW OF PERFORMANCE AND COMMENTARY OF PROSPECTS
i) Performance Review
ii) Prospect for 2017
The Bank incurred net loss of RM0.8 million for the three months ended 31 March 2017
as compared to net profit of RM6.4 million for the same period last year. Net operating
income decreased by RM8.4 million mainly due to lower fee and commission income
offset by net gain on derivatives in the period. Other operating expenses was lower by
10% or RM1.1 million in the current period largely due to decreased information
technology expenses.
Total assets increased by RM160 million to RM1.0 billion as at March 2017 compared to
December 2016, mainly due to higher placements with financial institutions of RM217.3
million and net growth in loans and advances of RM86.2 million but were offset by
lower held-for-trading securities of RM85.8 million and available-for-sale of RM58.5
million. Customer deposits grew 91% to RM418.7 million mainly arose from higher
deposits from business enterprises.
For 2017, the Malaysia private sector activity will remain the key driver of growth with
continued wage and employment growth as well as support from various policy
measures to raise disposable income. Investment activity is expected to grow
moderately as supported by on-going infrastructure development projects and capital
spending in the manufacturing and services sectors. Overall, the economy is expected to
grow within 4% to 5% range in 2017. Headline inflation averaged 2.1% in 2016 and is
expected to average higher in 2017, amid the prospect of higher global oil prices.
Underlying inflation, as measured by the core inflation index is expected to remain
stable given the stable domestic demand.
Page 28
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