unaudited condensed interim financial statements …€¦ · the unaudited condensed interim...
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NINE MONTHS PERIOD ENDED 30 SEPTEMBER 2014
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
30 September 31 December
2014 2013
Note RM'000 RM'000
ASSETS
Cash and short term funds 15 193,572 308,017
Deposits and placements with banks and other
financial institutions 656,100 327,940
Held to maturity securities 16 233,954 200,721
Loans, advances and receivables 17 203,564 179,882
Derivative financial instruments 279 457
Other assets 18 3,154 3,095
Property and equipment 5,077 6,720
TOTAL ASSETS 1,295,700 1,026,832
LIABILITIES
Deposits from customers 19 149,578 164,272
Deposits and placements of banks and other
financial institutions 20 823,545 540,313
Other liabilities 21 4,813 3,444
TOTAL LIABILITIES 977,936 708,029
EQUITY
Share capital 330,000 330,000
Other reserve 279 457
Accumulated loss (12,515) (11,654)
TOTAL EQUITY ATTRIBUTABLE TO EQUITY
HOLDER OF THE BANK 317,764 318,803
TOTAL LIABILTIES AND EQUITY 1,295,700 1,026,832
COMMITMENTS AND CONTINGENCIES 27 57,354 80,277
The Condensed Interim Financial Statements should be read in conjunction with the audited
financial statements of the Bank for the year ended 31 December 2013.
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION AS AT 30 SEPTEMBER 2014
Page 2
Note 30 Sept 30 Sept 30 Sept 30 Sept
2014 2013 2014 2013
RM'000 RM'000 RM'000 RM'000
Interest income 22 5,452 4,049 14,598 11,866
Interest expense 23 (1,096) (1,501) (2,920) (4,702)
Net interest income 4,356 2,548 11,678 7,164
Other operating income 24 110 67 1,643 954
Net operating income 4,466 2,615 13,321 8,118
Other operating expenses 25 (5,777) (3,694) (13,822) (10,390)
Operating loss (1,311) (1,079) (501) (2,272)
Net allowance for impairment on loans
and advances 26 (937) (1,425) (360) (1,425)
Loss before tax expense (2,248) (2,504) (861) (3,697)
Tax expense - 31 - 31
Net profit/(loss) for the period (2,248) (2,473) (861) (3,666)
Other comprehensive income, net of income tax
Items that may be reclassified subsequently to
profit or loss:
Cash flow hedge
Effective portion of change in fair value (75) 88 (178) 396
Total comprehensive income for the period (2,323) (2,385) (1,039) (3,270)
The Condensed Interim Financial Statements should be read in conjunction with the audited
financial statements of the Bank for the year ended 31 December 2013.
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME
3rd Quarter Ended Nine Months Ended
Page 3
Hedging Accumulated
Share capital reserve losses Total
RM'000 RM'000 RM'000 RM'000
At 1 January 2014 330,000 457 (11,654) 318,803
Net profit for the period - - (861) (861)
Cash flow hedge: change in fair value - (178) - (178)
At 30 September 2014 330,000 279 (12,515) 317,764
At 1 January 2013 310,000 - (5,337) 304,663
Net loss for the period - - (3,666) (3,666)
Cash flow hedge: change in fair value - 396 - 396
At 30 September 2013 310,000 396 (9,003) 301,393
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 2013.
Non distributable
STATEMENT OF CHANGES IN EQUITY
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
Page 4
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
30 Sept 30 Sept
2014 2013
RM'000 RM'000
Cash flows from operating activities
Loss before taxation for the period (861) (3,697)
Adjustment for non-cash items:
Allowance for impaired loans 360 1,425
Depreciation of property and equipment 1,762 1,711
Operating profit/(loss) before working capital changes 1,261 (561)
Changes in working capital:
Increase in deposits and placements with banks (328,160) (72,838)
Increase in loans, advances and receivables (24,042) (94,376)
Increase in other assets (90) (979)
(Decrease)/Increase in deposits from customer (14,694) 38,196
Increase in deposits and placements of banks and other FI. 283,232 264,014
Increase in other liabilities 1,369 578
Income tax refund/(paid) 31 (94)
Net cash (used in)/generated from operating activities (81,093) 133,940
Cash flows from investing activities
Purchase of property and equipment (119) (358)
Net investment in held to maturity securities (33,233) (33,483)
Net cash used in investing activities (33,352) (33,841)
Net change in cash and cash equivalent (114,445) 172,968
Cash and cash equivalents at beginning of the period 308,017 41,524
Cash and cash equivalents at end of the period 193,572 214,492
Analysis of cash and cash equivalents
Cash and short term funds at end of period 193,572 214,492
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
The Interim Financial Statements should be read in conjunction with the audited financial
statements of the Bank for the year ended 31 December 2013.
(Incorporated in Malaysia)
UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CASH FLOW
Page 5
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
1. GENERAL INFORMATION
2. BASIS OF PREPARATION
The unaudited interim condensed financial statements for the nine months ended 30
September 2014 have been prepared under the historical cost convention except for the
valuation of derivative financial instruments that are carried at fair value.
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
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
2013. 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 2013.
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 NINE MONTHS ENDED 30 SEPTEMBER 2014
Page 6
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
2. BASIS OF PREPARATION (continued)
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 2013, except for the adoption of the
following MFRSs, IC Interpretation and Amendments to MFRSs during the current financial
period:
MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1
July 2014:
• Amendments to MFRS 2, Share-based Payment
• Amendments to MFRS 3, Business Combinations
• Amendments to MFRS 8, Operating Segments
• Amendments to MFRS 13, Fair Value Measurement
• Amendments to MFRS 116, Property, Plant and Equipment
• Amendments to MFRS 119, Employee Benefits – Defined Benefit Plans: Employee
Contributions
• Amendments to MFRS 138, Intangible Assets
• Amendments to MFRS 124, Related Party Disclosures
• Amendments to MFRS 140, Investment Properties
MFRSs, Interpretations and amendments that the effective date to be announced by MASB:
• MFRS 9, Financial Instruments (2009)
• MFRS 9, Financial Instruments (2010)
• MFRS 9, Financial Instruments (2013) - Financial Instruments – Hedge Accounting and
Amendments to MFRS 9, MFRS 7 and MFRS 139
• Amendments to MFRS 7, Financial Instruments: Disclosures – Mandatory Effective Date of
MFRS 9 and Transition Disclosures
The Bank plans to apply the abovementioned accounting standards, amendments and
interpretations from the annual period beginning on 1 January 2015 for those accounting
standards, amendments or interpretations that will be effective for annual periods beginning
on or after 1 July 2014.
Page 7
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
2. BASIS OF PREPARATION (continued)
3. SIGNIFICANT ACCOUNTING POLICIES
4 ESTIMATES
5. AUDITORS REPORT ON PRECEDING ANNUAL FINANCIAL STATEMENTS
6. COMMENTS ABOUT SEASONAL OR CYCLICAL FACTORS
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 2013.
The initial application of the accounting standards, amendments or interpretations are not
expected to have any material financial impact to the current period and prior period
financial statements of the Bank. IC Interpretation 21: Levies does not have any impact on
the financial statements of the Bank as it is not relevant to the operations of the Bank.
The auditors' report on the audited financial statements for the financial period ended 31
December 2013 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 2013.
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 2013.
Page 8
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
7. UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE
8. CHANGES IN ESTIMATES
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 changes in the composition of the Bank for the period ended 30
September 2014.
There were no significant events subsequent to the statement of financial position date
which have not been disclosed in these condensed interim financial statements.
There were no significant events during the period ended 30 September 2014 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 30 September 2014.
There were no unusual items affecting the assets, liabilities, equity, net income or cash flow
of the Bank for the period ended 30 September 2014.
There were no material estimated amounts in the period ended 30 September 2014.
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
Page 9
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
15. CASH AND SHORT TERM FUNDS
30 September 31 December
2014 2013
RM'000 RM'000
Cash and balances with banks and other
financial institutions 1,059 2,232
Money at call and deposit placements
maturing within three months 192,513 305,785
193,572 308,017
16. HELD TO MATURITY SECURITIES
30 September 31 December
2014 2013
RM'000 RM'000
At amortised cost
Government securities & treasury bills:
Bank Negara Malaysia monetary notes 57,596 24,831
Money market instruments:
Negotiable instruments of deposit 169,797 169,331
Non-money market instruments:
Islamic private debt securities 6,561 6,559
233,954 200,721
17. LOANS, ADVANCES AND RECEIVABLES
30 September 31 December
2014 2013
At amortised cost RM'000 RM'000
(i) By type:
Syndication term loans 137,344 34,009
Bills receivables 1,172 65,912
Trust receipts 23,088 22,612
Revolving credits 45,060 60,089
Gross loans, advances and receivables 206,664 182,622
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
Page 10
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
17. LOANS, ADVANCES AND RECEIVABLES (continued)
30 September 31 December
2014 2013
At amortised cost RM'000 RM'000
(i) By type:
Gross loans, advances and receivables 206,664 182,622
Less: Allowance for impaired loans and advances:
- collective assessment (3,100) (2,740)
- individual assessment - -
Net loans and advances 203,564 179,882
(ii) The maturity structure of gross loans and advances are as follows:
Maturing within one year 69,320 148,613
More than one year to three years 23,009 -
More than three years to five years 13,536 19,867
More than five years 100,799 14,142
206,664 182,622
(iii)
Non-bank financial institutions 45,060 60,089
Business enterprises 88,750 22,612
Foreign entities 72,854 99,921
206,664 182,622
(iv)
Malaysia 133,810 82,701
Other countries 72,854 99,921
206,664 182,622
Gross loans, advances and receivables analysed by type of customer are as follows:
Gross loans, advances and receivables analysed by geographical distribution are as
follows:
Page 11
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
17. LOANS, ADVANCES AND RECEIVABLES (continued)
30 September 31 December
2014 2013
RM'000 RM'000
(v)
Fixed rate
- Fixed rate loans 24,260 65,912
Variable rate
- Cost plus 45,060 82,701
- Other variable plus 137,344 34,009
206,664 182,622
(vi)
Agriculture 23,088 22,612
Mining and quarrying 65,662 -
Finance, insurance and business services 46,232 126,001
Other sectors 71,682 34,009
206,664 182,622
(vii)
At 1 January - -
Impaired during the year - -
Recoveries - -
Closing balance - -
Ratio of net impaired loans and advances to net loans
and advances - -
Impaired loans - movements in impaired loans and advances are as follows:
Gross loans, advances and receivables analysed by economic sectors are as follows:
Gross loans, advances and receivables analysed by interest rate sensitivity are as
follows:
Page 12
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
17. LOANS, ADVANCES AND RECEIVABLES (continued)
30 September 31 December
2014 2013
RM'000 RM'000
(viii) Movements in collective assessment allowance are as follows:
At 1 January 2,740 -
Allowance made during the period/year - 2,740
Written back during the period/year 360 -
Closing balance 3,100 2,740
As % of gross loans and advances less individual
assessment allowance 1.50% 1.50%
18. OTHER ASSETS
30 September 31 December
2014 2013
RM'000 RM'000
Interest receivables 1,158 1,387
Other receivables, deposits and prepayments 1,996 1,708
3,154 3,095
19. DEPOSITS FROM CUSTOMERS
30 September 31 December
2014 2013
RM'000 RM'000
At amortised cost
a) By type of deposit
Demand deposits 622 817
Short-term deposits 148,956 163,455
149,578 164,272
Page 13
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
19. DEPOSITS FROM CUSTOMERS (continued)
30 September 31 December
2014 2013
RM'000 RM'000
b) By type of customer
Statutory authorities - 50,000
Business enterprises 131,828 113,520
Foreign customers 17,750 752
149,578 164,272
c) The maturity structure of short-term deposits is as follow:
Due within six months 148,956 163,455
20. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER
FINANCIAL INSTITUTIONS
30 September 31 December
2014 2013
RM'000 RM'000
At amortised cost
Licensed banks 823,545 540,313
21. OTHER LIABILITIES
30 September 31 December
2014 2013
RM'000 RM'000
Interest payable 319 438
Other payable and accruals 769 1,585
Provisions for other operating expenses 3,725 1,421
4,813 3,444
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
Page 14
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
22. INTEREST INCOME
30 Sept 30 Sept 30 Sept 30 Sept
2014 2013 2014 2013
RM'000 RM'000 RM'000 RM'000
Balances with banks 2,447 1,224 6,853 5,976
Held to maturity securities 1,705 2,584 4,351 5,584
Loans, advances and receivables 1,274 208 3,315 229
Others 26 33 79 77
5,452 4,049 14,598 11,866
23. INTEREST EXPENSE
30 Sept 30 Sept 30 Sept 30 Sept
2014 2013 2014 2013
RM'000 RM'000 RM'000 RM'000
Deposits from customer 656 1,350 1,833 4,355
Deposits from banks 387 97 927 207
Others 53 54 160 140
1,096 1,501 2,920 4,702
24. OTHER OPERATING INCOME
30 Sept 30 Sept 30 Sept 30 Sept
2014 2013 2014 2013
RM'000 RM'000 RM'000 RM'000
Fee and commission income 66 18 1,445 545
Foreign exchange gains 44 49 198 406
Trading Income - - - 3
110 67 1,643 954
(Incorporated in Malaysia)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
3rd Quarter Ended
3rd Quarter Ended
3rd Quarter Ended
Nine Months Ended
Nine Months Ended
Nine Months Ended
Page 15
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
25. OTHER OPERATING EXPENSES
30 Sept 30 Sept 30 Sept 30 Sept
2014 2013 2014 2013
RM'000 RM'000 RM'000 RM'000
Personnel costs
- Salaries, allowances and bonuses 2,333 1,155 4,491 3,286
- Defined contribution plan 383 188 730 544
- Others 369 50 799 105
3,085 1,393 6,020 3,935
Establishment costs
- Rental of premises 464 464 1,392 1,392
- Lease rental 8 7 18 17
- Depreciation 589 577 1,762 1,711
- Insurance 33 32 94 91
- Utilities 42 30 110 74
- Information technology expenses 292 261 730 621
- General repair and maintenance 29 17 60 49
- Others 1 - 11 1
1,458 1,388 4,177 3,956
Administration and general expenses
- Advertising and publicity 4 3 46 44
- Communication expenses 220 338 720 737
- Legal and professional fees 7 17 38 79
- Others 1,003 555 2,821 1,639
1,234 913 3,625 2,499
Total other operating expenses 5,777 3,694 13,822 10,390
3rd Quarter Ended Nine Months Ended
Page 16
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
(Incorporated in Malaysia)
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
26. NET ALLOWANCE FOR IMPAIRMENT ON LOANS AND ADVANCES
30 Sept 30 Sept 30 Sept 30 Sept
2014 2013 2014 2013
RM'000 RM'000 RM'000 RM'000
Individual impairment - - - -
Collective impairment - write back (937) (1,425) (360) (1,425)
(937) (1,425) (360) (1,425)
Nine Months Ended3rd Quarter Ended
Page 17
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
27. 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
Contingent liabilities
Transaction related contingent items 11,029 5,515 1,179 5,760 2,880 576
Derivative financial instruments
Interest rate related contracts:
- over five years 6,561 804 161 6,559 1,047 209
Irrevocable commitments to extend credit
- maturity not exceeding one year 28,746 5,749 5,749 10,218 2,044 2,044
- maturity exceeding one year 11,018 5,509 5,509 57,740 28,870 28,870
57,354 17,577 12,598 80,277 34,841 31,699
31 December 2013
The credit equivalent and risk weighted amounts are computed using credit conversions factors and risk weighting factors based on
Standardised Approach under the Bank Negara Malaysia’s Capital Adequacy Framework (Risk-Weighted Assets).
In the normal course of business, the Bank makes various commitments and incurs certain contingent liabilities with legal recourse to
its customers. No material losses are anticipated as a result of these transactions. The notional amounts of the commitments and
contingencies are as follow:
30 September
Page 18
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
28. CAPITAL ADEQUACY
i) Capital Adequacy Ratios
30 September 31 December
2014 2013
% %
Common Equity Tier 1 ("CET1") ratio 73.600% 98.782%
Tier 1 ratio 73.600% 98.782%
Total Capital ratio 74.319% 99.632%
Calendar Year CET I Tier I Total Capital
% % %
2013 3.50 4.50 8.00
2014 4.00 5.50 8.00
The minimum regulatory capital adequacy ratios, as required under BNM's Capital
Adequacy Framework (Capital Components) which includes transitional arrangements
for year 2014 and 2013, are set out as follows:
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 19
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
28. CAPITAL ADEQUACY (continued)
ii) Capital Components of CET1, Tier I and Tier II Capital
30 September 31 December
2014 2013
RM'000 RM'000
Common Equity Tier 1 ("CET1") / Tier 1 capital
Paid-up share capital 330,000 330,000
Accumulated loss (12,515) (11,654)
Other reserve 279 457
CET1 / Tier 1 capital before regulatory adjustments 317,764 318,803
Less: Regulatory adjustments
- Cash flow hedge reserve (279) (457)
CET1 / Tier 1 capital after regulatory adjustments 317,485 318,346
Tier-2 capital
Allowance for collective assessment impairment 3,100 2,740
Total Tier-2 capital 3,100 2,740
Total capital 320,585 321,086
iii) The breakdown of risk-weighted assets by each major risk category is as follow:
30 September 31 December
2014 2013
RM'000 RM'000
Credit risk 410,500 304,886
Operational risk 19,348 16,534
Market risk 1,516 852
Total risk-weighted assets 431,364 322,272
Page 20
NATIONAL BANK OF ABU DHABI MALAYSIA BERHAD (965488-H)
(Incorporated in Malaysia)
NOTES TO UNAUDITED CONDENSED INTERIM FINANCIAL STATEMENTS
FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2014
29. REVIEW OF PERFORMANCE AND COMMENTARY OF PROSPECTS
i) Performance Review
ii) Prospect for 2014
In 2014, NBAD Malaysia will continue to cross-sell NBAD Group's wholesale banking
products to capitalize on bilateral opportunities between Malaysia and the Middle East
while concurrently strengthening its core processes and internal capabilities to serve the
corporate clients.
The Bank's loss before tax for the nine months ended 30 September 2014 was RM0.86
million as compared to a loss before tax of RM3.67 million for the same period last year.
Operating income in the period increased by 64.1% or RM5.20 million to RM13.32
million was attributable to higher net interest income which contributed by higher loans
and advances as well as liquidity support from parent bank. Other operating income
also increased RM0.69 million in tandem with higher business volume whilst operating
expenses expanded at a lower persentage of 33% or RM3.43 million.
Collective impairment on loans and advances for the current period is lower by RM1.06
million due mainly to lower loans growth for the current period as compared to last
year.
Total assets increased marginally by RM0.27 billion to RM1.3 billion by end September
2014 mainly due to higher deposits and placements with banks, loans and advances and
held to maturity securities but offset by lower cash and short-term funds.
Page 21