bank of america malaysia berhad
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BANKOFAMERICAMALAYSIABERHAD(IncorporatedinMalaysia)RegistrationNo.199401025304(310983-V)
UNAUDITEDCONDENSEDINTERIMFINANCIALSTATEMENTS
FORTHEFINANCIALPERIODENDED31MARCH2021
TABLEOFCONTENTS PAGE(S)
STATEMENTOFFINANCIALPOSITION 2
STATEMENTOFCOMPREHENSIVEINCOME 3
STATEMENTOFCHANGESINEQUITY 4
STATEMENTOFCASHFLOWS 5
NOTESTOTHEFINANCIALSTATEMENTS 5-21
STATEMENTOFDECLARATION 22
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
UNAUDITEDSTATEMENTOFFINANCIALPOSITIONASAT31MARCH2021
31March2021
31December2020
Note RM’000 RM’000ASSETS
Cashandshorttermfunds 7 2,719,695 2,973,616
Financialassetsatfairvaluethroughprofitorloss(FVTPL) 8 1,997,346 983,029
Financialassetsatfairvaluethroughothercomprehensive
income(FVOCI) 9 527,896 409,055
Loansandadvances 10 277,351 276,376
Otherassets 11 73,190 122,931
Derivativeassets 124,602 155,003
Taxrecoverable 13,107 8,513
Deferredtaxassets 1,370 2,206
StatutorydepositswithBankNegaraMalaysia 60,001 13,001
Propertyandequipment 13 3,785 3,636
TOTALASSETS 5,798,343 4,947,366
LIABILITIESANDSHAREHOLDERS’FUNDS
Depositsfromcustomers 16 3,768,990 3,703,692
Depositsandplacementsofbanksand
otherfinancialinstitutions 17 939,184 16,983
Billsandacceptancespayable 10,624 6,578
Otherliabilities 18 151,977 133,712
Derivativeliabilities 104,481 269,086
TOTALLIABILITIES 4,975,256 4,130,051
Sharecapital 135,800 135,800
Reserves 687,287 681,515
Shareholders’funds 823,087 817,315
TOTALLIABILITIESANDSHAREHOLDERS’FUNDS 5,798,343 4,947,366
COMMITMENTSANDCONTINGENCIES 31 35,384,839 39,253,543
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
2
UNAUDITEDSTATEMENTOFCOMPREHENSIVEINCOMEFORTHEFINANCIALPERIOD31MARCH2021
Note31March
202131March
2020RM’000 RM’000
Interestincome 19 11,621 16,217
Interestexpense 20 (2,084) (8,378)
Netinterestincome 9,537 7,839
Nettradingincome 21 13,062 52,043
Otheroperatingincome 22 7,790 4,469
Netnon-interestincome 20,852 56,512
Netincome 30,389 64,351
Otheroperatingexpenses 23 (22,647) (18,349)
Profitbeforeimpairment 7,742 46,002
Impairmentchargeforcreditlosses 24 14 (4,124)
NetProfitbeforetax 7,756 41,878
Taxation (1,978) (10,115)
Profitforthefinancialyear 5,778 31,763
Othercomprehensiveincome:
Itemsthatmaynotbesubsequentlyreclassifiedtoprofitorloss
Changeinvalueofequityinvestmentsatfairvaluethrough
othercomprehensiveincome(FVOCI) (6) 9
Incometaxeffect — —
Othercomprehensiveincome,netoftax (6) 9
Totalcomprehensiveincomeforthefinancialyear 5,772 31,772
Earningspershare(sen)
Basic/diluted 4.25 23.39
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
3
STATEMENTOFCHANGESINEQUITYFORTHEFINANCIALPERIOD31MARCH2021
Nondistributable Distributable
Share FVOCI Regulatory Retained
capital reserves reserves profits Total
RM’000 RM’000 RM’000 RM’000 RM’0002021Balanceat1January 135,800 1,059 693 679,763 817,315
Profitforthefinancialperiod — — — 5,778 5,778
Othercomprehensiveincome,netofincometaxChangeinvalueofFVOCI — (6) — — (6)Totalothercomprehensiveincome — (6) — — (6)
Totalcomprehensiveincomeforthefinancialperiod 135,800 1,053 693 685,541 823,087
Netchangeinregulatoryreserves — — (326) 326 —
Balanceat31March 135,800 1,053 367 685,867 823,087
2020Balanceat1January 135,800 1,052 1,287 594,743 732,882
Profitforthefinancialperiod — — — 31,763 31,763
Othercomprehensiveincome,netofincometaxChangeinvalueofFVOCI — 9 — — 9Totalothercomprehensiveincome — 9 — — 9
Totalcomprehensiveincomeforthefinancialperiod 135,800 1,061 1,287 626,506 764,654
Netchangeinregulatoryreserves — — 32 (32) —
Balanceat31March 135,800 1,061 1,319 626,474 764,654
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
4
31March2021
31March2020
RM’000 RM’000
Cashflowsfromoperatingactivities
Profitbeforetaxation 7,756 41,878
Adjustmentsfor:
-Depreciationofpropertyandequipment 310 268
-Amortisationofright-ofuseassets 166 179
-Impairmentchargeforcreditlosses (14) 4,124
-Netunrealisedlossonfairvaluechangesinderivatives (244,218) (19,530)
-Netunrealisedloss/(gain)onrevaluationoffinancialassetsatFVTPL 2,410 (5,872)
(233,590) 21,047
Changesinworkingcapital:
(Increase)/decreaseinoperatingassets:
FinancialassetsFVTPL (1,016,727) 380,970
FinancialassetsFVOCI (118,847) 40,092
Loansandadvances (961) 796
Otherassets 49,741 (129,651)
Derivativeassets 274,619 (74,786)
StatutorydepositwithBankNegaraMalaysia (47,000) (10,000)
Increase/(decrease)inoperatingliabilities:
Depositsfromcustomers 65,298 (363,813)
Depositsandplacementsofbanksandotherfinancial
institutions 922,201 (16,791)
Billsandacceptancespayable 4,046 1,519
Otherliabilities 18,445 168,216
Derivativeliabilities (164,605) 74,737
Cashflowsgeneratedfromoperatingactivities (247,380) 92,336
Taxationpaid (5,736) (4,675)
Netcashgeneratedfrombyoperatingactivities (253,116) 87,661
Cashflowsfrominvestingactivities
Purchaseofpropertyandequipment (625) (12)
Netcashusedininvestingactivities (625) (12)
Cashflowsfromfinancingactivities
Repaymentofleaserentals (180) (18)
Netcashusedinfinancingactivities (180) (18)
Netincreaseincashandcashequivalents (253,921) 87,631
Cashandcashequivalentsasat1January 2,973,616 2,736,001
Cashandcashequivalentsasat31March 2,719,695 2,823,632
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
STATEMENTOFCASHFLOWS FORTHEFINANCIALPERIOD31MARCH2021
5
1 BASISOFPREPARATION
The unaudited condensed interim financial statements of the Bank have been prepared in accordance with therequirements of Malaysian Financial Reporting Standard (“MFRS”) 134 “Interim Financial Reporting” issued by theMalaysianAccountingStandardsBoard(“MASB”).
Theunauditedcondensed interimfinancialstatementsshouldberead inconjunctionwiththeBank’sauditedfinancialstatementsforthefinancialyearended31December2020.TheexplanatorynotesattachedtotheunauditedcondensedinterimfinancialstatementsprovideanexplanationofeventsandtransactionsthataresignificantforanunderstandingofthechangesinthefinancialpositionandperformanceoftheBanksincethefinancialyearended31December2020.
The unaudited condensed interim financial statements have been prepared under the historical cost convention. Theaccountingpoliciesandmethodsof computationapplied in theunauditedcondensed interim financial statementsareconsistentwiththoseadopted inthemostrecentauditedfinancialstatements fortheyearended31December2020,exceptasfollows:
NEWANDAMENDEDSTANDARDSADOPTEDBYTHEBANK
AmendmentstoMFRS16‘COVID-19-RelatedRentConcessions’(effective1January2021)
Thisamendmentgrantanoptionalexemption for lessees toaccount fora rent concession related toCOVID-19 in thesame way as they would if they were not lease modifications. In many cases, this will result in accounting for theconcession as a variable lease payment in the period(s) in which the event or condition that triggers the reducedpaymentoccurs.Theamendment,however,donotmakeanychangestolessoraccounting.
TheexemptiononlyappliestorentconcessionsoccurringasadirectconsequenceoftheCOVID-19pandemicandonlyifallofthefollowingconditionsaremet:
(a)Thechangeinleasepaymentsresultsinrevisedconsiderationfortheleasethatissubstantiallythesameas,orlessthan,theconsiderationfortheleaseimmediatelyprecedingthechange;
(b)Anyreductioninleasepaymentsaffectsonlypaymentsdueonorbefore30June2021;and
(c)Thereisnosubstantivechangetoothertermsandconditionsofthelease.
Theamendmentsshallbeappliedretrospectively.
TheadoptionofthisstandardisnotexpectedtohaveanysignificantimpacttotheBank.
STANDARDSANDAMENDMENTSTOEXISTINGSTANDARDSBUTNOTYETEFFECTIVE
AnnualImprovementstoMFRS9‘Feesinthe10%testforderecognitionoffinancialliabilities’(effective1January2022)
Thisstandardclarifiesthatonlyfeespaidorreceivedbetweentheborrowerandthelender, includingthefeespaidorreceivedoneachother’sbehalf,areincludedinthecashflowofthenewloanwhenperformingthe10%test.
Anentityshallapplytheamendmenttofinancialliabilitiesthataremodifiedorexchangedonorafterthebeginningoftheannualreportingperiodinwhichtheentityfirstappliestheamendment.
TheadoptionofthisstandardisnotexpectedtohaveanysignificantimpacttotheBank.
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
6
AmendmentstoMFRS3‘ReferencetoConceptualFramework’(effective1January2022)
ThisstandardreplacesthereferencetoFrameworkforPreparationandPresentationofFinancialStatementswith2018Conceptual Framework. The amendments did not change the current accounting for business combinations onacquisitiondate.
TheamendmentsprovideanexceptionfortherecognitionofliabilitiesandcontingentliabilitiesshouldbeinaccordancewiththeprinciplesofMFRS137‘Provisions,contingentliabilitiesandcontingentassets’andICInterpretation21‘Levies’whenfallswithintheirscope.Italsoclarifiesthatcontingentassetsshouldnotberecognisedattheacquisitiondate.
Theamendmentsshallbeappliedprospectively.
TheadoptionofthisstandardisnotexpectedtohaveanysignificantimpacttotheBank.
AmendmentstoMFRS116‘Proceedsbeforeintendeduse’(effective1January2022)
Thisstandardprohibitanentityfromdeductingfromthecostofaproperty,plantandequipmenttheproceedsreceivedfrom selling items produced by the property, plant and equipment before it is ready for its intended use. The salesproceedsshouldinsteadberecognisedinprofitorloss.
Theamendmentsalsoclarifythattestingwhetheranassetisfunctioningproperlyreferstoassessingthetechnicalandphysicalperformanceoftheproperty,plantandequipment.
Theamendmentsshallbeappliedretrospectively.
TheadoptionofthisstandardisnotexpectedtohaveanysignificantimpacttotheBank.
AmendmentstoMFRS137‘onerouscontracts—costoffulfillingacontract’(effective1January2022)
Thisstandardclarifythatdirectcostsoffulfillingacontractincludeboththeincrementalcostoffulfillingthecontractaswell as an allocation of other costs directly related to fulfilling contracts. The amendments also clarify that beforerecognisingaseparateprovisionforanonerouscontract, impairment lossthathasoccurredonassetsusedinfulfillingthecontractshouldberecognised.
Theamendmentsshallbeappliedretrospectively.
TheadoptionofthisstandardisnotexpectedtohaveanysignificantimpacttotheBank.
AmendmentstoMFRS101‘Classificationofliabilitiesascurrentornoncurrent’(effective1January2023)
This standard clarify that a liability is classified as noncurrent if an entity has a substantive right at the end of thereportingperiodtodefersettlementforatleast12monthsafterthereportingperiod.Aliabilityisclassifiedascurrentifa condition is breached at or before the reporting date and a waiver is obtained after the reporting date. A loan isclassifiedasnon-currentifacovenantisbreachedafterthereportingdate.
In addition, the amendments clarify that when a liability could be settled by the transfer of an entity’s own equityinstruments (e.g. a conversion option in a convertible bond), conversion option that is not an equity instrument asdefinedinMFRS132(‘FinancialInstruments'):Presentation’isconsideredinthecurrentornon-currentclassificationoftheconvertibleinstrument.
Theamendmentsshallbeappliedretrospectively.
TheadoptionofthisstandardisnotexpectedtohaveanysignificantimpacttotheBank.
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
7
InterbankOfferedRate("IBOR")reform
TheBankestablishedan IBOR transitionprogram ledby seniormanagement,which is intended toaddress theBank'sindustry and regulatory engagement, client and financial contract changes, internal and external communications,technology and operations modifications, introduction of new products, migration of existing clients, and programstrategyandgovernance. Inaddition, theprogram isdesigned tomonitoravarietyof scenarios, includingoperationalrisksassociatedwithinsufficientpreparationbyindividualmarketparticipantsortheoverallmarketecosystem,volatilityalong the Secured Overnight Financing Rate ("SOFR") curve, development and adoption of credit-sensitive and otherrates, regulatoryand legaluncertaintywith respect tovariousmatters includingcontract continuity,accessbymarketparticipantstoliquidityincertainproducts,andIBORcontinuitybeyondDecember2021.
The Bank is executing product and client roadmaps that it believes alignwith industry recommended and regulatorymilestones,andtheentityhasdevelopedemployeetrainingprogramsaswellasotherinternalandexternalsourcesofinformationon the various challenges andopportunities that the replacementof IBORspresents.As the transitionofARRsevolves,theentitycontinuestomonitorandparticipateinthedevelopmentandusageofcertainARRs, includingKLIBOR.
Theadoptionof this standard isnotexpected tohaveany significant impact to theBank. Treasury isusing InterUnitFunding("IUF")andtherateforIUFhasalreadytransitiontoSOFR.
2 AUDITOR’SREPORTONPRECEDINGANNUALFINANCIALSTATEMENTS
Theauditor’sreportonthefinancialstatementsfortheprecedingfinancialyearended31December2020wasnotsubjecttoanyqualification.
3 SEASONALORCYCLICALITYFACTORS
ThebusinessoperationsoftheBankhavenotbeenaffectedbyanymaterialseasonalorcyclicalfactors.
4 UNUSUALITEMSDUETOTHEIRNATURE,SIZEORINCIDENCE
Therewerenounusualitemsaffectingtheassets,liabilities,equity,netincomeorcashflowsoftheBankduringthefinancialperiodended31March2021.
5 CHANGESINESTIMATES
Therewerenosignificantchangesinestimatesarisingfrompriorfinancialperiod/yearthathaveamaterialeffectonthefinancialresultsandpositionforthefinancialperiodended31March2021.
6 ISSUANCEANDREPAYMENTSOFDEBTSANDEQUITYSECURITIES
Therewerenocancellations,repurchase,resaleorrepaymentsofdebtandequitysecuritiesduringthecurrentfinancialperiodunderreview.
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
8
7 CASHANDSHORTTERMFUNDS
31March2021
31December2020
RM’000 RM’000
Cashandbalanceswithbanksandotherfinancialinstitutions 86,995 96,985Moneyatcallanddepositplacementsmaturingwithinonemonth 2,632,700 2,876,631
2,719,695 2,973,616
MoneyatcallandinterbankplacementsarewithinStage1allocation(12-monthsECL)withRMNilimpairmentallowanceasat31March2021(31December2020:RMNil).
8 FINANCIALASSETSATFAIRVALUETHROUGHPROFITORLOSS(FVTPL)
31March2021
31December2020
RM’000 RM’000
MalaysianGovernmentSecurities 1,340,538 446,159MalaysianGovernmentInvestmentIssues 357,921 27,409MalaysianGovernmentTreasuryBills 298,887 509,461
1,997,346 983,029
9 FINANCIALASSETSATFAIRVALUETHROUGHOTHERCOMPREHENSIVEINCOME(FVOCI)
31March2021
31December2020
RM’000 RM’000QuotedsecuritiesinMalaysia:BankNegaraBills 524,916 406,075
UnquotedsecuritiesinMalaysia:Shares 2,980 2,980
527,896 409,055
FVOCIiswithinStage1allocation(12-monthsECL)withRMNilimpairmentallowancesasat31March2021(31December2020:RMNil).
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
9
10 LOANSANDADVANCES
31March2021
31December2020
RM’000 RM’000
(a) Loansandadvancesanalysedbytype:
Atamortisedcost:
Overdrafts 4,230 4,179
Factoringreceivables 12,537 15,815
Staffloans 495 503
Revolvingadvances 248,946 243,624
Termloans 34,161 35,489
Mortgageloans 98 109
Grossloansandadvances 300,467 299,719
ExpectedCreditLosses("ECL")
Stage1:12Months-OnBalanceSheet (2,607) (2,291)
Stage2:LifetimeECLnotcreditimpaired — —
Stage3:LifetimeECLcredit-impaired (20,509) (21,052)
Totalnetloansandadvances 277,351 276,376
(b) Bygeographicaldistribution:
Malaysia 300,467 299,719
(c) Bytypeofcustomer
Domesticbusinessenterprises 147,989 219,737Domesticnon-bankingfinancialinstitutions 151,885 79,370Individuals 593 612
300,467 299,719
(d) Byinterestratesensitivity
Fixedrate:Housingloans 455 467Otherfixedrateloans 12,577 15,851
Variablerate:Baserate 98 109Costplus 95,153 87,761Otherfloatingrateloans 192,184 195,531
300,467 299,719
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
10
10 LOANSANDADVANCES(CONTINUED)
31March2021
31December2020
(e) Bysector RM’000 RM’000
Mining&quarrying 34,161 35,489Manufacturing 89,171 162,178Wholesale&Retailtrade,Restaurant&Hotels 10,070 7,170Transport,storage,communication 1,001 1,001Finance,insuranceandbusinessservices 165,471 93,269Household 593 612
300,467 299,719
(f) Byeconomicpurpose
Purchaseoftransportvehicles 34 37Purchaseoflandedproperty(residential) 553 575Personaluse 6 —Workingcapital 299,874 299,107
300,467 299,719
(g) Byresidualcontractualmaturity
Withinoneyear 298,001 285,318Oneyeartothreeyears 2,011 13,897Threeyearstofiveyears — 37Overfiveyears 455 467
300,467 299,719
(h) Grossloansandadvancesbystaging
Stage1:12MonthECL 265,279 263,203Stage2:LifetimeECLNotCreditImpaired — —Stage3:CreditImpaired 35,188 36,516
300,467 299,719
(i) Movementsinimpairedloansandadvancesareasfollows:
At1January 36,516 44,829Impairedduringtheyear — 1,001Reclassifiedasnon-impaired — —Amountrecovered (2,117) (7,708)ExchangeRatedifference 789 (1,606)At31March/31December 35,188 36,516Stage3:LifetimeECLcreditimpaired (20,509) (21,052)Netimpairedloansandadvances 14,679 15,464
Grossimpairedloansasa%ofgrossloansandadvances 11.71% 12.18%
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
11
10 LOANSANDADVANCES(CONTINUED)
(j) MovementsinExpectedCreditLosses("ECL")on
loansandadvancesareasfollows:
12-MonthECL(Stage1)
LifetimeECLNotCredit-Impaired(Stage2)
CreditImpaired(Stage3) Total
RM’000 RM’000 RM’000 RM’000At1January2021 2,291 — 21,052 23,343Changesduetoloansandadvances
recognised-TransfertoStage1:12-MonthECL — — — —-TransfertoStage2:LifetimeECLnotcredit-impaired — — — —
-TransfertoStage3:LifetimeECLcredit-impaired — — — —
Loansandadvancesderecognised(otherthanwriteoff) (95) — — (95)
Newloansandadvancesoriginated — — — —
Netremeasurementduetochangesincreditrisk 411 — (543) (132)
At31March2021 2,607 — 20,509 23,116
12-MonthECL(Stage1)
LifetimeECLNotCredit-Impaired(Stage2)
CreditImpaired(Stage3) Total
RM’000 RM’000 RM’000 RM’000At1January2020 1,430 — 19,905 21,335Changesduetoloansandadvances
recognised-TransfertoStage1:12-MonthECL — — — —-TransfertoStage2:LifetimeECLnotcredit-impaired (8) 8 — —
-TransfertoStage3:LifetimeECLcredit-impaired — (5) 5 —
Loansandadvancesderecognised(otherthanwriteoff) (40) — — (40)
Newloansandadvancesoriginated 1,368 — — 1,368
Netremeasurementduetochangesincreditrisk (459) (3) 1,142 680
At31December2020 2,291 — 21,052 23,343
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
12
10 LOANSANDADVANCES(CONTINUED)31March
202131December
2020(k) Impairedloansandadvancesanalysedbygeographicaldistribution: RM’000 RM’000
Malaysia 35,188 36,516
(l) Impairedloansandadvancesanalysedbyeconomicpurpose:
Purchaseoflandedproperty(residential) 26 26Workingcapital 35,162 36,490
35,188 36,516
(m) ExposurestoCOVID-19impactedsectors(Netofimpairment)
Baseline:Aviation 4,637 4,564
11 OTHERASSETS31March
202131December
2020RM’000 RM’000
Collateralreceivables 40,533 103,157Intercompanyreceivables 1,001 1,985Deposits 36 36Prepayments 6,669 7,503Otherreceivables 24,951 10,250
73,190 122,931
Otherassets iswithin Stage1allocation (12-monthsECL)withRMNil impairmentallowanceasat31March2021 (31December2020:RMNil).
12 PRE-ACQUISITIONPROFITS
Therewerenopre-acquisitionprofitsreportedforthefinancialperiodunderreview.
13 PROPERTY,PLANTANDEQUIPMENT
The valuationsof property, plant andequipmenthavebeenbrought forward,without amendment from thepreviousannualfinancialstatements.
14 PROFITSONSALEOFINVESTMENTS/PROPERTIES
Therewerenomaterialgainsorlossondisposalof investments(otherthanintheordinarycourseofbusiness)and/orpropertiesforthefinancialperiodunderreview.
15 PURCHASEANDDISPOSALOFQUOTEDSECURITIES
There were no purchases or disposal of quoted securities for the financial period under review other than thosepurchasedordisposedintheordinarycourseofbusiness.
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
13
16 DEPOSITSFROMCUSTOMERS
31March2021
31December2020
RM’000 RM’000
Demanddeposits 3,636,542 3,376,776Savingsdeposits 7 7Fixeddeposits 132,441 326,909
3,768,990 3,703,692
(a) Maturitystructureoffixeddepositsisasfollows:
Duewithinsixmonths 130,280 324,799Sixmonthstooneyear 1,111 1,060Oneyeartofiveyears 1,050 1,050
132,441 326,909
(b) Thedepositsaresourcedfromthefollowingtypesofcustomers:
Businessenterprise 3,768,944 3,703,646Individuals 46 46
3,768,990 3,703,692
17 DEPOSITSANDPLACEMENTSOFBANKSANDOTHERFINANCIALINSTITUTIONS
31March2021
31December2020
RM’000 RM’000
Licensedbanks 938,160 15,960Otherfinancialinstitutions 1,024 1,023
939,184 16,983
18 OTHERLIABILITIES
31March2021
31December2020
RM’000 RM’000
Collateralpayables 56,393 52,034Intercompanypayables 61,298 55,288Accruals 8,407 6,742Share-basedrechargepayables 645 135ECLforguaranteesandcommitments 1,374 1,160LeaseLiabilities 944 1,113Otherpayables 22,916 17,240
151,977 133,712
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
14
19 INTERESTINCOME
31March2021
31March2020
RM’000 RM’000
Loansandadvances 1,664 2,219Moneyatcallanddepositplacementswithbanksandotherfinancialinstitutions 7,927 13,369FinancialassetsatFVOCI 2,030 629
11,621 16,217
20 INTERESTEXPENSE
31March2021
31March2020
RM’000 RM’000
Depositsandplacementsofbanksandotherfinancialinstitutions 160 1,268Depositsfromcustomers 1,924 7,110
2,084 8,378
21 NETTRADINGINCOME31March
202131March
2020RM’000 RM’000
Fairvaluegain/(loss)oninstrumentsheldfortradingDebtinstrumentsatFVTPLNet(loss)/gainfromsaleoffinancialassetsatFVTPL (24,333) 10,725Unrealisedrevaluation(loss)/gainonfinancialassetsatFVTPL (2,410) 5,872
DerivativesfinancialinstrumentsRealisedgainonderivatives 7,092 3,087Unrealisedgainonforeignexchangeforwards 238,762 22,474Unrealisedgain/(loss)oninterestrateandcrosscurrencyswaps 5,456 (2,944)
InterestincomefromfinancialassetsatFVTPL 13,468 13,282
Realisedforeignexchangeloss (224,973) (420)Others — (33)
13,062 52,043
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
15
22 OTHEROPERATINGINCOME
31March2021
31March2020
RM’000 RM’000FeeincomeCommission 99 83Servicechargesandfees 1,906 1,725Guaranteefees 493 423Managementfeeincome 1,002 988Otherfeeincome 4,290 1,250Totalfeeincome 7,790 4,469
23 OTHEROPERATINGEXPENSES
31March2021
31March2020
RM’000 RM’000PersonnelcostsSalaries,allowancesandbonuses 7,375 7,283Share-basedpayment 1,174 (1,038)Definedcontributionplans 3,151 2,741Otherpersonnelcosts (77) 320
11,623 9,306EstablishmentcostsDepreciationofpropertyandequipment 310 268Amortisationofright-of-use-assets 166 179Rentalofpremises 117 118Rentalofequipment 56 49Repairandmaintenance 377 317Others 333 421
1,359 1,352MarketingexpensesBusinesspromotionandadvertisement — —Others — 131
— 131
Communicationexpenses 386 186Legalandprofessionalfees 137 122Stationeryandpostages 110 112Sharedadministrativesupportexpenses 7,576 5,745Others 1,456 1,395
9,665 7,560
22,647 18,349
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
16
24 IMPAIRMENTCHARGEFORCREDITLOSSES
31March2021
31March2020
RM’000 RM’000Allowanceforimpairment-Loansandadvances 227 (4,100)-Guaranteesandcommitments (214) (24)Impairedloansandadvancesrecovered 1 —
14 (4,124)
25 SIGNIFICANTEVENTSDURINGTHEFINANCIALPERIOD
TheBankcontinuestotakeactionstomitigatetheimpactduetothecoronavirusoutbreakontheBank.InarrivingattheECLforthecurrentfinancialperiod,theBankhasappropriatelyconsideredreasonableandsupportableinformationthatwasrelevantandavailablewithoutunduecostoreffort.RefertoNote10andNote24fortheresultsoftheECL.
26 SIGNIFICANTEVENTSSUBSEQUENTTOTHEBALANCESHEETDATE
There were no significant events subsequent to the balance sheet date which have not been disclosed in thesecondensedinterimfinancialstatements.
27 CHANGESINCOMPOSITIONOFTHEBANK
TherewerenosignificantchangesinthecompositionoftheBankforthefinancialperiodended31March2021.
28 SEGMENTALREPORTINGONREVENUE,PROFITANDASSETS
Segmentalreportinghasnotbeenpreparedastherearenoothersegmentsotherthanthecommercialbankingsegment.
29 TAXATION
There are no material changes in the profit before taxation for the financial period reported as compared with theprecedingfinancialperiod,whichhavenotbeendisclosedinthesecondensedinterimfinancialstatement.
30 DIVIDENDS
Therewerenodividendspaidordeclaredforthefinancialperiodended31March2021.
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
17
31 COMMITMENTSANDCONTINGENCIES
Thecommitmentsandcontingenciesconstitutethefollowings:31March2021 31December2020
Principalamount
Creditequivalent
amount
Riskweightedamount
Principalamount
Creditequivalent
amountRiskweighted
amountRM’000 RM’000 RM’000 RM’000 RM’000 RM’000
Description
Directcreditsubstitutes 131,225 130,192 125,671 139,911 138,870 131,867Transactionrelatedcontingentitems 75,826 37,612 36,872 21,972 10,905 10,144Shorttermselfliquidatingtraderelatedcontingencies 24,114 4,783 4,783 23,307 4,625 4,625Foreignexchangerelatedcontracts:-Oneyearorless 9,333,181 148,370 98,813 16,476,855 165,687 108,568-Overoneyeartofiveyears 51,067 1,572 1,572 84,663 4,312 4,237Interest/Profitraterelatedcontracts:-Oneyearorless 16,201,300 56,393 22,999 10,612,000 28,242 12,972-Overoneyeartofiveyears 8,991,500 238,234 95,367 11,296,100 145,711 77,333-Overfiveyears — — — — — —Othercommitments,suchasformalstandbyfacilitiesandcreditlines,withanoriginalmaturityofuptooneyear — — — — — —
Othercommitments,suchasformalstandbyfacilitiesandcreditlines,withanoriginalmaturityofoveroneyear — — — — — —
Any commitments that are unconditionally cancelled at any timeby theBank without prior notice or that effectively provide for automaticcancellationduetodeteriorationinaborrower'screditworthiness 576,626 — — 598,735 — —Total 35,384,839 617,156 386,077 39,253,543 498,352 349,746
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
18
32 CAPITALADEQUACY
ThetablebelowsummariesthecompositionofregulatorycapitalandratiooftheBank:
31March2021
31December2020
RM’000 RM’000CommonEquity("CET1")CapitalandTier1Capital
Sharecapital 135,800 135,800Retainedprofits 680,457 680,457
OtherdisclosedreservesUnrealisedgainsandlossesonFVOCIfinancialinstruments 1,053 1,059
817,310 817,316Less:regulatoryadjustments-Deferredtaxassets (1,370) (2,206)-55%ofcumulativegainsofFVOCIfinancialinstruments (580) (582)-Regulatoryreserve (367) (693)TotalCETIandTierIcapital 814,993 813,835
Tier-IICapitalLossallowancefornon-creditimpairedexposures/collectiveassessmentallowance* 3,981 3,451
Regulatoryreserve 367 693TotalTierIIcapital 4,348 4,144
Totalcapital 819,341 817,979
*ExcludesLifetimeECLCreditImpaired(Stage3)loans/collectiveassessmentallowanceonimpairedloansrestrictedfromTier-IICapitalofBAMBofRM20,508,975(31December2020:RM21,052,093).
Totalrisk-weightedassets:-Creditrisk 724,975 694,816Marketrisk 1,286,371 1,378,006Operationalrisk 310,569 317,760TotalRWA 2,321,915 2,390,582
Capitalratios
CETIcapitalratio 35.100% 34.043%TierIcapitalratio 35.100% 34.043%Totalcapitalratio 35.287% 34.217%
Total capital and capital adequacy ratios of the Bank are computed in accordance with BNM’s Capital AdequacyFramework (Capital Components) guidelines issued on 9 December 2020. The Bank has adopted the StandardisedApproach(“SA”)forCreditRiskandMarketRiskandBasicIndicatorApproach(“BIA”)forOperationalRisk.
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
19
33 FAIRVALUEOFFINANCIALINSTRUMENTS
Financialinstrumentscomprisefinancialassets,financialliabilitiesandoff-balancesheetfinancialinstruments.Fairvalueistheamountatwhichafinancialassetcouldbeexchangedorafinancialliabilitysettled,betweenknowledgeableandwillingpartiesinanarm’slengthtransaction.Theinformationpresentedhereinrepresentstheestimatesoffairvaluesasatthebalancesheetdate.
Whereavailable,quotedandobservablemarketpricesareusedasthemeasureoffairvalues.Wheresuchquotedandobservable market prices are not available, fair values are estimated based on a range of methodologies andassumptionsregardingriskcharacteristicsofvariousfinancialinstruments,discountrates,estimatesoffuturecashflowsandotherfactors.Changesintheuncertaintiesandassumptionscouldmateriallyaffecttheseestimatesandtheresultingfairvalueestimates.
ArangeofmethodologiesandassumptionshadbeenusedinderivingthefairvaluesoftheBank’sfinancialinstrumentsatbalancesheetdate.
Thetablebelowanalysesfinancialinstrumentscarriedatfairvalue,byvaluationmethod.Thedifferentlevelshavebeendefinedasfollows:
Level1: Quotedprices(unadjusted)inactivemarketsforidenticalassetsorliabilities
Level 2: Inputsother thanquotedprices includedwithin level 1 that areobservable for the assetor liability, eitherdirectly(thatis,asprices)orindirectly(thatis,asderivedfromprices).
Level3: Inputsfortheassetorliabilitythatarenotbasedonobservablemarketdata(thatis,unobservableinputs).
ThefollowingtablepresentstheBank’sfinancialassetsandliabilitiesthataremeasuredatfairvalue.
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
20
33 FAIRVALUEOFFINANCIALINSTRUMENTS(CONTINUED)Level1 Level2 Level3 Total
31March2021 RM’000 RM’000 RM’000 RM’000FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorloss(FVTPL)-MalaysianGovernmentSecurities 1,340,538 — — 1,340,538-MalaysianGovernmentInvestmentIssues 357,921 — — 357,921-MalaysianGovernmentTreasuryBills 298,887 — — 298,887Derivativeassets-Foreignexchangeforwardsandswaps — 51,941 — 51,941-Interestrateandcrosscurrencyswaps — 72,661 — 72,661FinancialassetsatfairvaluethroughothercomprehensiveincomeUnquotedshares — — 2,980 2,980BankNegaraBills 524,916 — — 524,916Totalassets 2,522,262 124,602 2,980 2,649,844
FinancialliabilitiesatfairvaluethroughprofitorlossDerivativeliabilities-Foreignexchangeforwardsandswaps — 44,178 — 44,178-Interestrateandcrosscurrencyswaps — 60,303 — 60,303Totalliabilities — 104,481 — 104,481
Level1 Level2 Level3 Total31December2020 RM’000 RM’000 RM’000 RM’000FinancialassetsatfairvaluethroughprofitorlossFinancialassetsatfairvaluethroughprofitorloss(FVTPL)-MalaysianGovernmentSecurities 446,159 — — 446,159-MalaysianGovernmentInvestmentIssues 27,409 — — 27,409-MalaysianGovernmentTreasuryBills 509,461 — — 509,461Derivativeassets-Foreignexchangeforwardsandswaps — 83,017 — 83,017-Interestrateandcrosscurrencyswaps — 71,986 — 71,986FinancialassetsatfairvaluethroughothercomprehensiveincomeUnquotedshares — — 2,980 2,980BankNegaraBills 406,075 — — 406,075Totalassets 1,389,104 155,003 2,980 1,547,087
FinancialliabilitiesatfairvaluethroughprofitorlossDerivativeliabilities-Foreignexchangeforwardsandswaps — 200,196 — 200,196-Interestrateandcrosscurrencyswaps — 68,890 — 68,890Totalliabilities — 269,086 — 269,086
Therewerenotransfersbetweenlevels1and2duringtheperiod(31December2020:TherewerenotransfersbetweenLevels1and2)
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
NOTESTOTHEFINANCIALSTATEMENTSFOR31MARCH2021
21
STATEMENTOFDECLARATION
Tothebestofourknowledge,theaccompanyingStatementofFinancialPositionofBankofAmericaMalaysiaBerhadasat31March2021,andtherelatedStatementofComprehensiveIncome,StatementofChangesinEquity,StatementofCashFlowsandexplanatorynotesfortheperiodendedonthatdatehadbeenpreparedfromtheBank’saccountingandother records and nothing has come to our attention that causes us to believe that the condensed interim financialstatementsarenotpresentedfairlyinallmaterialaspectsinaccordancewiththeMalaysianAccountingStandardsBoard(“MASB”)approvedaccountingstandardsinMalaysiaforentitiesotherthanprivateentitiesandBankNegaraMalaysiaGuidelines.
Forandonbehalfof,BankofAmericaMalaysiaBerhad
ChiefFinancialOfficerWongPohLeng27April2021
RegistrationNo.199401025304(310983-V)
BANKOFAMERICAMALAYSIABERHAD (IncorporatedinMalaysia)
22