AmBank (M) Berhad · Operating profit 270,654 271,402 270,654 271,402 Writeback of allowance for impairment on loans and advances A23 98,532 33,063 98,532 33,063

Company No. 8515-D

AmBank (M) Berhad(Incorporated in Malaysia)

And Its Subsidiaries

Condensed Interim Financial StatementsFor the Financial Period

1 April 2019 to30 June 2019

(In Ringgit Malaysia)

Company No. 8515-D

AmBank (M) Berhad(Incorporated in Malaysia)And Its Subsidiaries

UNAUDITED STATEMENTS OF FINANCIAL POSITION AS AT 30 JUNE 2019

30 June 31 March 30 June 31 MarchNote 2019 2019 2019 2019

RM’000 RM’000 RM’000 RM’000

ASSETSCash and short-term funds A8 4,203,752 5,287,043 4,198,840 5,282,332 Deposits and placements with banks and other financial institutions A9 168,923 330,918 168,923 330,918 Investment account placement A10 1,534,447 1,461,880 1,534,447 1,461,880 Derivative financial assets 892,381 777,685 892,381 777,685

Financial assets at fair value through

profit or loss A11 10,228,852 10,646,835 10,228,803 10,646,787 Financial investments at fair value through other comprehensive income A12 14,380,469 12,410,210 14,398,090 12,431,107 Financial investments at amortised cost A13 3,215,288 3,305,436 3,215,288 3,305,436 Loans and advances A14 70,981,658 71,334,104 70,925,346 71,275,888 Statutory deposit with Bank Negara Malaysia 2,195,679 2,180,557 2,195,679 2,180,557 Deferred tax assets - 32,657 - 32,610 Investment in subsidiaries - - 31,492 31,492 Investment in associate - - 22 22 Other assets A15 1,244,124 1,175,119 1,235,224 1,166,137 Right-of-use assets 259,915 - 259,915 - Property and equipment 118,731 122,375 99,038 102,551 Intangible assets 358,854 368,654 358,854 368,654 TOTAL ASSETS 109,783,073 109,433,473 109,742,342 109,394,056

LIABILITIES AND EQUITYDeposits from customers A16 74,786,942 75,949,320 74,791,363 75,953,817 Deposits and placements of banks and other financial institutions A17 7,009,294 5,379,573 7,019,397 5,390,936 Securities sold under repurchase agreements 5,400,896 5,339,422 5,400,896 5,339,422 Recourse obligation on loans sold to Cagamas Berhad 4,040,003 4,140,003 4,040,003 4,140,003 Derivative financial liabilities 892,188 826,869 892,188 826,869 Term funding 2,622,433 2,554,527 2,622,433 2,554,527 Debt capital 3,080,000 3,080,000 3,080,000 3,080,000 Deferred tax liabilities 31,908 - 31,836 - Other liabilities A18 2,314,807 2,565,967 2,303,251 2,553,750 TOTAL LIABILITIES 100,178,471 99,835,681 100,181,367 99,839,324

Share capital 1,940,465 1,940,465 1,940,465 1,940,465 Reserves 7,663,975 7,657,165 7,620,510 7,614,267

Equity attributable to equity holder of the Bank 9,604,440 9,597,630 9,560,975 9,554,732 Non-controlling interests 162 162 - - TOTAL EQUITY 9,604,602 9,597,792 9,560,975 9,554,732

TOTAL LIABILITIES AND EQUITY 109,783,073 109,433,473 109,742,342 109,394,056

COMMITMENTS AND CONTINGENCIES A33 118,279,642 124,242,578 118,347,852 124,307,212

NET ASSETS PER SHARE (RM) 11.48 11.47 11.42 11.42

Group Bank

The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financialstatements of the Group and the Bank for the year ended 31 March 2019.

1

Company No. 8515-D


UNAUDITED CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019

30 June 30 June 30 June 30 June2019 2018 2019 2018

Note RM’000 RM’000 RM’000 RM’000Group

Operating revenue 1,398,702 1,279,744 1,398,702 1,279,744

Interest income A19 1,254,769 1,131,398 1,254,769 1,131,398 Interest expense A20 (810,189) (708,060) (810,189) (708,060)

Net interest income 444,580 423,338 444,580 423,338 Other operating income A21 143,933 148,346 143,933 148,346 Net income 588,513 571,684 588,513 571,684 Other operating expenses A22 (316,785) (299,046) (316,785) (299,046) Operating profit 271,728 272,638 271,728 272,638 Writeback of allowance for impairment on loans and advances A23 98,524 32,999 98,524 32,999 Provision for commitments and contingencies (13,506) (10,240) (13,506) (10,240) Impairment writeback/(loss) on: Financial investments A24 1,351 (4,321) 1,351 (4,321) Other financial assets A25 1,045 2,790 1,045 2,790 Other recoveries 1 262 1 262 Profit before taxation 359,143 294,128 359,143 294,128

Taxation (92,063) (74,286) (92,063) (74,286)

Profit for the financial period 267,080 219,842 267,080 219,842

Attributable to: Equity holder of the Bank 267,080 219,842 267,080 219,842 Non-controlling interests - - - - Profit for the financial period 267,080 219,842 267,080 219,842

Earnings per share (sen)Basic/Diluted A26 31.91 26.78 31.91 26.78

Individual Quarter Cumulative Quarter

The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of theGroup and the Bank for the year ended 31 March 2019.

2

Company No. 8515-D


UNAUDITED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEFOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019


RM’000 RM’000 RM’000 RM’000Group


Other comprehensive income/(loss)

Items that will not be reclassified subsequently to profit or loss

Financial assets at fair value through other comprehensive income - net unrealised gain/(losses) on changes in

fair value (5,505) 917 (5,505) 917 Tax effect 1,321 (219) 1,321 (219)

Items that may be reclassified subsequently to profit or loss

Currency translation on foreign operations 3,139 23,483 3,139 23,483

Cash flow hedge - (losses)/gain arising during the financial period (6,179) 1,372 (6,179) 1,372 - amortisation of fair value changes of

terminated hedge (1,494) (2,122) (1,494) (2,122) - reclassification adjustments for gain

included in profit or loss (66) (143) (66) (143) Tax effect 1,857 214 1,857 214

Financial assets at fair value through other comprehensive income - net unrealised gain/(losses) on changes

in fair value 94,936 (35,394) 94,936 (35,394) - net gain reclassified to profit or loss (7,970) (165) (7,970) (165) - expected credit loss (1,362) 4,179 (1,362) 4,179 - foreign exchange differences 2 462 2 462 Tax effect (20,945) 8,529 (20,945) 8,529

Other comprehensive income, net of tax 57,734 1,113 57,734 1,113

Total comprehensive income for the financial period, net of tax 324,814 220,955 324,814 220,955

Attributable to: Equity holder of the Bank 324,814 220,955 324,814 220,955 Non-controlling interests - - - -

324,814 220,955 324,814 220,955



3

Company No. 8515-D


UNAUDITED STATEMENT OF PROFIT OR LOSS FOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019


Note RM’000 RM’000 RM’000 RM’000Bank

Operating revenue 1,397,439 1,278,415 1,397,439 1,278,415

Interest income A19 1,253,695 1,130,259 1,253,695 1,130,259 Interest expense A20 (810,218) (708,090) (810,218) (708,090)

Net interest income 443,477 422,169 443,477 422,169 Other operating income A21 143,744 148,156 143,744 148,156 Net income 587,221 570,325 587,221 570,325 Other operating expenses A22 (316,567) (298,923) (316,567) (298,923) Operating profit 270,654 271,402 270,654 271,402 Writeback of allowance for impairment on loans and advances A23 98,532 33,063 98,532 33,063 Provision for commitments and contingencies (13,512) (10,240) (13,512) (10,240) Impairment (loss)/writeback on: Financial investments A24 1,355 (4,321) 1,355 (4,321) Other financial assets A25 1,050 2,790 1,050 2,790 Other recoveries 1 262 1 262 Profit before taxation 358,080 292,956 358,080 292,956

Taxation (91,779) (73,928) (91,779) (73,928)


Earnings per share (sen)Basic/Diluted A26 31.82 26.68 31.82 26.68


Cumulative QuarterIndividual Quarter

4

Company No. 8515-D


UNAUDITED STATEMENT OF COMPREHENSIVE INCOMEFOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019


RM’000 RM’000 RM’000 RM’000Bank


Other comprehensive income/(loss)

Items that will not be reclassified subsequently to profit or loss

Financial assets at fair value through other comprehensive income - net unrealised gain/(losses) on changes in

fair value (5,505) 917 (5,505) 917 Tax effect 1,321 (219) 1,321 (219)

Items that may be reclassified subsequently to profit or loss

Currency translation on foreign operations 3,132 23,453 3,132 23,453

Cash flow hedge - (losses)/gain arising during the financial period (6,179) 1,372 (6,179) 1,372 - amortisation of fair value changes of

terminated hedge (1,494) (2,122) (1,494) (2,122) - reclassification adjustments for gain

included in profit or loss (66) (143) (66) (143) Tax effect 1,857 214 1,857 214

Financial assets at fair value through other comprehensive income - net unrealised gain/(losses) on changes

in fair value 95,134 (35,496) 95,134 (35,496) - net gain reclassified to profit or loss (7,970) (165) (7,970) (165) - expected credit loss (1,366) 4,179 (1,366) 4,179 - foreign exchange differences 2 462 2 462 Tax effect (20,920) 8,553 (20,920) 8,553

Other comprehensive income, net of tax 57,946 1,005 57,946 1,005

Total comprehensive income for the financial period, net of tax 324,247 220,033 324,247 220,033



5

Company No. 8515-D


UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019

Distributable

ForeignAvailable- Fair Cash flow currency Total Non-

Share Regulatory Merger for-sale value hedging translation Retained attributable to controlling TotalGroup capital reserve reserve deficit reserve reserve reserve earnings equity holder interests equity

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

At 1 April 2018 1,763,208 372,133 104,149 (23,387) - 3,174 49,075 6,641,531 8,909,883 64 8,909,947 Impact of adopting MFRS 9 at 1 April 2018 - (245,968) - 23,387 214,350 - - (32,941) (41,172) - (41,172) As restated 1,763,208 126,165 104,149 - 214,350 3,174 49,075 6,608,590 8,868,711 64 8,868,775

Profit for the financial period - - - - - - - 219,842 219,842 - 219,842 Other comprehensive (loss)/income - - - - (21,691) (679) 23,483 - 1,113 - 1,113 Total comprehensive (loss)/income

for the financial period - - - - (21,691) (679) 23,483 219,842 220,955 - 220,955

Transfer of AMMB Holdings Berhad ("AMMB") Executives' Share Scheme ("ESS") shares recharged - difference on purchase price for shares vested - - - - - - - (2,075) (2,075) - (2,075) Transfer to regulatory reserve - 103,624 - - - - - (103,624) - - - Dividend on ordinary shares: - final, financial year ended 31 March 2018 - - - - - - - (250,211) (250,211) - (250,211) Issuance of ordinary shares 177,257 - - 177,257 - 177,257

Transaction with owner and other equity movements 177,257 103,624 - - - - - (355,910) (75,029) - (75,029)

At 30 June 2018 1,940,465 229,789 104,149 - 192,659 2,495 72,558 6,472,522 9,014,637 64 9,014,701

Attributable to equity holder of the Bank

The Unaudited Condensed Interim Financial Statements should be read in conjunction with the audited financial statements of the Group and the Bank for the year ended 31 March 2019.

Non-distributable

6

Company No. 8515-D


Distributable

ForeignFair Cash flow currency Total Non-

Share Regulatory Merger value hedging translation Retained attributable to controlling TotalGroup capital reserve reserve reserve deficit reserve earnings equity holder interests equity

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

At 1 April 2019 1,940,465 280,556 104,149 245,666 (12,074) 81,246 6,957,622 9,597,630 162 9,597,792

Profit for the financial period - - - - - - 267,080 267,080 - 267,080 Other comprehensive income/(loss) - - - 60,477 (5,882) 3,139 - 57,734 - 57,734 Total comprehensive income/(loss) for the financial period - - - 60,477 (5,882) 3,139 267,080 324,814 - 324,814

Transfer to regulatory reserve - 90,666 - - - - (90,666) - - - Dividend on ordinary shares: - final, financial year ended 31 March 2019 - - - - - - (318,004) (318,004) - (318,004)

Transaction with owner and other equity movements - 90,666 - - - - (408,670) (318,004) - (318,004)

At 30 June 2019 1,940,465 371,222 104,149 306,143 (17,956) 84,385 6,816,032 9,604,440 162 9,604,602


Attributable to equity holder of the Bank

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONT'D.)FOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019

Non-distributable

7

Company No. 8515-D


UNAUDITED STATEMENTS OF CHANGES IN EQUITYFOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019

Distributable

ForeignAvailable- Fair Cash flow currency

Share Regulatory for-sale value hedging translation Retained TotalBank capital reserve deficit reserve reserve reserve earnings equity

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

At 1 April 2018 1,763,208 372,133 (23,518) - 3,174 52,974 6,700,583 8,868,554 Impact of adopting MFRS 9 at 1 April 2018 - (245,968) 23,518 214,234 - - (32,907) (41,123) As restated 1,763,208 126,165 - 214,234 3,174 52,974 6,667,676 8,827,431

Profit for the financial period - - - - - - 219,028 219,028 Other comprehensive (loss)/income - - - (21,769) (679) 23,453 - 1,005 Total comprehensive (loss)/income for the financial period - - - (21,769) (679) 23,453 219,028 220,033

Transfer of AMMB ESS shares recharged - difference on purchase price for shares vested - - - - - - (2,075) (2,075) Transfer to regulatory reserve - 103,624 - - - - (103,624) - Dividend on ordinary shares: - final, financial year ended 31 March 2018 - - - - - - (250,211) (250,211) Issuance of ordinary shares 177,257 - - - - - - 177,257

Transaction with owner and other equity movements 177,257 103,624 - - - - (355,910) (75,029)

At 30 June 2018 1,940,465 229,789 - 192,465 2,495 76,427 6,530,794 8,972,435


Attributable to equity holder of the BankNon-distributable

8

Company No. 8515-D


UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (CONT'D.)FOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019

Distributable

ForeignFair Cash flow currency

Share Regulatory value hedging translation Retained TotalBank capital reserve reserve deficit reserve earnings equity

RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

At 1 April 2019 1,940,465 280,556 245,836 (12,074) 85,109 7,014,840 9,554,732

Profit for the financial period - - - - - 266,301 266,301 Other comprehensive income/(loss) - - 60,696 (5,882) 3,132 - 57,946 Total comprehensive income/(loss) for the financial period - - 60,696 (5,882) 3,132 266,301 324,247

Transfer to regulatory reserve - 90,666 - - - (90,666) - Dividend on ordinary shares: - final, financial year ended 31 March 2019 - - - - - (318,004) (318,004)

Transaction with owner and other equity movements - 90,666 - - - (408,670) (318,004)

At 30 June 2019 1,940,465 371,222 306,532 (17,956) 88,241 6,872,471 9,560,975


Attributable to equity holder of the BankNon-distributable

9

Company No. 8515-D


UNAUDITED CONDENSED STATEMENTS OF CASH FLOWSFOR THE FINANCIAL QUARTER ENDED 30 JUNE 2019


RM’000 RM’000 RM’000 RM’000

Profit before taxation 359,143 294,128 358,080 292,956

Adjustments for non-operating and non-cash items (62,429) (209,100) (62,570) (209,298) Operating profit before working capital changes 296,714 85,028 295,510 83,658

Changes in working capital:Net change in operating assets 892,330 23,869 890,400 23,117 Net change in operating liabilities (45,190) 4,368,761 (45,878) 4,367,450 Tax (paid)/refunded (101,476) 18,142 (101,235) 18,314

Net cash generated from operating activities 1,042,378 4,495,800 1,038,797 4,492,539

Net cash used in investing activities (1,807,006) (2,927,035) (1,803,626) (2,923,746) Net cash used in financing activities (331,881) (672,954) (331,881) (672,954) Net increase in cash and cash equivalents (1,096,509) 895,811 (1,096,710) 895,839

Cash and cash equivalents at beginning of the financial period 5,471,374 3,566,029 5,466,663 3,561,118

Effect of exchange rate changes 65 (16) 65 (16)

4,374,930 4,461,824 4,370,018 4,456,941

Cash and cash equivalents comprise:

Cash and short-term funds 4,203,752 3,405,846 4,198,840 3,400,963 Deposits and placements with banks and other financial institutions 168,923 1,055,293 168,923 1,055,293

4,372,675 4,461,139 4,367,763 4,456,256 Less: Deposits and placements with original

maturity of more than 3 months - - - - 4,372,675 4,461,139 4,367,763 4,456,256

Allowances for expected credit loss ("ECL") for cash and cash equivalents at end of the financial period 2,255 685 2,255 685

4,374,930 4,461,824 4,370,018 4,456,941

Cash and cash equivalents at end of financial period


BankGroup

10

Company No. 8515-D


EXPLANATORY NOTES

A1. BASIS OF PREPARATION

A1.1 Significant Accounting Policies

-- IC Interpretation 23 Uncertainty over Income Tax Treatments- Prepayment Features with Negative Compensation (Amendments to MFRS 9)- Long-term Interests in Associates and Joint Ventures (Amendments to MFRS 128)- Plan Amendment, Curtailment or Settlement (Amendments to MFRS119)- Annual Improvements to MFRSs 2015-2017 Cycle

(a) MFRS 16 Leases

These condensed interim financial statements do not include all of the information required for full annual financialstatements, and should be read in conjunction with the annual financial statements of the Group and the Bank for thefinancial year ended 31 March 2019.

The accounting policies adopted are consistent with those of the previous financial year except for the adoption of thefollowing new standards, amendments to published standards, and new interpretation which became effective for thefirst time for the Group and the Bank on 1 April 2019:

The adoption of these new standards, amendments to published standards and new interpretation did not have anymaterial impact on the financial statements of the Group and the Bank except for those arising from the adoption ofMFRS 16 as disclosed below. Other than the adoption of new accounting policies as disclosed in Note A1.2, theGroup and the Bank did not have to change its accounting policies or make retrospective adjustments as a result ofadopting the other amendments to published standards and new interpretation.

The nature of the new standards, amendments to published standards and new interpretation are described below:

MFRS 16 Leases

These condensed interim financial statements have been prepared in accordance with MFRS 134 Interim FinancialReporting issued by the Malaysian Accounting Standards Board (“MASB”) and complies with the International AccountingStandard ("IAS") 34 Interim Financial Reporting issued by the International Accounting Standards Board.

As a lessee, the Group and the Bank previously classified each of its leases as operating leases (off balancesheet) in accordance with MFRS 117 Leases . if the arrangements do not transfer substantially all the risksand rewards incidental to ownership of the leased assets to the Group; otherwise, they were classified asfinance leases (on balance sheet).

MFRS 16, which supersedes MFRS 117, eliminates the classification of leases by the lessee as either financeleases or operating leases. MFRS 16 requires a lessee to account for all leases under a single on balancesheet model similar to the accounting for a finance lease under MFRS 117 which involves the recognition of a“right-of-use” of the underlying asset and a lease liability reflecting future lease payments.

The right-of-use asset is depreciated in accordance with the principle in MFRS 116 Property, Plant andEquipment and the lease liability is accreted over time with interest expense recognised in the statement ofprofit or loss.

The Group and the Bank has adopted MFRS 16 for the first time since 1 April 2019. In its transition to MFRS16, the Group and the Bank has elected to apply the simplified transition approach whereby the comparativeamounts were not restated. For leases previously classified as operating leases with remaining lease termgreater than 12 months from the date of initial application, the Group and the Bank recognised the leaseliabilities at the date of initial application which were measured at the present value of the remaining leasepayments, discounted using the incremental borrowing rate at the date of initial application. Correspondingly,the Group and the Bank recognised the right-of-use assets at an amount equal to the lease liabilities andhence the Group and the Bank did not make any adjustment to the opening retained earnings. In addition, theGroup and the Bank has made use of the following transitional practical expedients for recognition andmeasurement purposes at the date of initial application:

11

Company No. 8515-D


EXPLANATORY NOTES (CONT'D.)

A1. BASIS OF PREPARATION (CONT'D.)

A1.1 Significant Accounting Policies (Cont'd.)

(a) MFRS 16 Leases (Cont'd.)

(i)

(ii)

(iii)

(iv)

(b) IC Interpretation 23 Uncertainty over Income Tax Treatments

(c) Prepayment Features with Negative Compensation (Amendments to MFRS 9)

The financial impact of the adoption of MFRS 16 on the financial statements of the Group and the Bank areas disclosed in Note A36(a).

The Interpretation provides guidance on how to recognise and measure deferred and current income taxassets and liabilities in situations where there is uncertainty over whether the tax treatment applied by anentity will be accepted by the tax authority. If it is probable that the tax authority will accept an uncertain taxtreatment that has been taken or is expected to be taken on a tax return, the accounting for income taxes shall be determined consistently with that tax treatment. If an entity concludes that it is not probable that thetreatment will be accepted, it should reflect the effect of the uncertainty in its income tax accounting in theperiod in which that determination is made, by applying the most likely amount method or the expected valuemethod. The adoption of this Interpretation did not have any material financial impact to the Group and theBank.

The Group and the Bank has elected not to reassess whether an agreement is, or contains a lease at thedate of initial application. Instead, for agreements entered into before the transition date the Group andthe Bank relied on its previous assessments made in accordance with MFRS 117 and IC Interpretation 4Determining whether an Arrangement contains a Lease.

Lease agreements for which the remaining lease term ends within 12 months from the date of initialapplication are accounted as short-term leases whereby the Group and the Bank has elected not torecognise the associated right-of-use assets and lease liabilities.

A single discount rate was applied for those portfolio of leases with reasonably similar characteristics,such as leases with a similar remaining lease term for a similar class of underlying asset in a similareconomic environment.

Initial direct costs were excluded from the measurement of the right-of-use assets at the date of initialapplication.

The Group and the Bank has elected not to recognise a right-of-use asset and a lease liability for short-termleases, i.e. leases without purchase option with a lease term of 12 months or less from the commencementdate. Similarly, the Group and the Bank will not recognise a right-of-use asset and a lease liability on leasesfor which the underlying asset is of low value.

Under the current MFRS 9 requirements, the "solely payments of principal and interest on the principalamount outstanding" ("SPPI") condition is not met if the lender has to make a settlement payment in the eventof early termination by the borrower. The existing requirements are amended to enable entities, to measure atamortised cost or at fair value through other comprehensive income (depending on the business model),some prepayable financial assets with negative compensation if the negative compensation is a reasonablecompensation for early termination of the contract. An example of such reasonable compensation is anamount that reflects the effect of the change in the relevant benchmark rate of interest at the time oftermination; the calculation of this compensation payment must be the same for both the case of an earlyrepayment penalty and the case of a early repayment gain. The adoption of these amendments did not resultin any impact as the Group and the Bank do not hold any prepayable financial asset with negativecompensation.

12

Company No. 8515-D





(d) Long-term Interests in associates and Joint Ventures (Amendments to MFRS 128)

(e) Plan Amendment, Curtailment or Settlement (Amendments to MFRS 119)

(f) Annual Improvements to MFRSs 2015-2017 Cycle

(i) MFRS 3 Business Combinations

(ii) MFRS 11 Joint Arrangements

(iii) MFRS 112 Income Taxes

(iv) MFRS 123 Borrowing Costs

The Annual Improvements to MFRSs 2015-2017 Cycle include minor amendments affecting 4 MFRSs, assummarised below:

The amendments clarified that obtaining control of a business that is a joint operation is a businesscombination achieved in stages. The acquirer shall remeasure its previously held interest in the jointoperation at fair value at the acquisition date. The amendment has no impact as the Group does not holdinterest in any joint operation.

The amendments clarified that the income tax consequences of dividends on financial instrumentsclassified as equity should be recognised according to where the past transactions or events thatgenerated the distributable amounts were recognised. Hence the tax consequences are recognised inprofit or loss only when an entity determines payments on such instruments are distributions of profits.The amendment did not have any material financial impact to the Group and the Bank.

The amendments clarify that MFRS 9 including its impairment requirements shall be applied to long-terminterests in an associate or joint venture that form part of the net investment in the associate or joint venturebut to which the equity method is not applied. The adoption of these amendments did not result in any impactas the Group and the Bank does not have any interest in associate or joint venture.

Currently, MFRS 119 did not specify how current service cost and net interest should be determined for theremainder of the period after a plan amendment, curtailment or settlement. The standard has been amendedto mandate the use of updated assumptions from the remeasurement of net defined benefit liability or assetupon a change to the plan to determine current service cost and net interest for the remainder of the periodafter the change to the plan. The adoption of these amendments did not result in any impact as the Group andthe Bank does not operate any defined benefit retirement plan.

The amendments clarified that the party obtaining joint control of a business that is a joint operation shallnot remeasure any previously held interest in the joint operation. The amendment has no impact as theGroup does not hold interest in any joint operation.

The amendments clarified that if any specific borrowing remains outstanding after the related asset isready for its intended use or sale, that borrowing becomes part of the funds that an entity borrowsgenerally when calculating the capitalisation rate on general borrowings. The amendment did not haveany material financial impact to the Group and the Bank.

13

Company No. 8515-D





Amendments to References to the Conceptual Framework in MFRS StandardsDefinition of a Business (Amendments to MFRS 3)Definition of Material (Amendments to MFRS 101 and MFRS 108)MFRS 17 Insurance ContractsSale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendments to MFRS 10 and MFRS 128)

(a)

Amendments to References to the Conceptual Framework in MFRS Standards

Definition of Material (Amendments to MFRS 101 and MFRS 108)

The amendments are applied prospectively to business combinations and asset acquisitions that occur on orafter the beginning of the first annual reporting period beginning on or after 1 January 2020. Early adoption ispermitted.

The amendments clarified the definition of material and how it should be applied through the addition ofdefinition guidance. In addition, the explanations accompanying the definition have been improved andaligned across all MFRS standards to make it easier for entities to make materiality judgements. Theamendments are applied prospectively from annual reporting period beginning on or after 1 January 2020.Early adoption is permitted.

Standards effective for financial year ending 31 March 2021

The nature of the new standards, amendments to published standards and new interpretation that are issued andrelevant to the Group and the Bank but not yet effective are described below. The Group and the Bank are assessingthe financial effects of their adoption.

Effective for annual periods beginning on or afterDescription

1 January 20201 January 2020

To be determined by MASB

1 January 2021

1 January 2020

The amendments, affecting nine published standards and five published interpretations, were issued as aconsequence to the issuance of the revised Conceptual Framework for Financial Reporting ("ConceptualFramework") on 30 April 2018. The references and quotations in these published standards andinterpretations to the Conceptual Framework have been updated so as to clarify the version of the ConceptualFramework these published standards and interpretations refer to. The amendments are effective for annualperiods beginning on or after 1 January 2020 for entities that develop an accounting policy by reference to theConceptual Framework.

Definition of a Business (Amendments to MFRS 3)

The amendments revised the definition of a business, whereby the term "outputs" is narrowed to focus ongoods and services provided to customers, as well as generation of investment income and other incomefrom ordinary activities; returns in the form of lower costs and other economic benefits are no longerconsidered. In addition, a new framework is added to help evaluate when an input and a substantive processare present.

Standards issued but not yet effective

14

Company No. 8515-D




A1.1 Standards issued but not yet effective (Cont'd.)

(c) Standard effective on a date to be determined by MASB

-

-

A1.2 Summary of Significant Accounting Policies Applied from 1 April 2019

(a) Leases

(i) The Group and the Bank as a lessee (before 1 April 2019)

The determination of whether an arrangement is, or contains, a lease is based on whether the arrangementconveys a right to control the use the asset, even if that right is not explicitly specified in an arrangement.

gains and losses resulting from transactions involving assets that do not constitute a business, betweeninvestor and its associate or joint venture are recognised in the entity’s financial statements only to theextent of unrelated investors’ interests in the associate or joint venture; and

The significant accounting policies adopted in preparing these condensed interim financial statements are consistentwith those as disclosed in the annual financial statements of the Group and the Bank for the financial year ended 31March 2019 except for the following new accounting policies which has been applied from 1 April 2019 following theadoption of MFRS 16:

Sale or Contribution of Assets between an Investor and its Associate or Joint Venture (Amendmentsto MFRS 10 and MFRS 128)

The amendments clarify that:

gains and losses resulting from transactions involving the sale or contribution to an associate of a jointventure of assets that constitute a business is recognised in full.

Leases that transfer to the Group and the Bank substantially all the risks and benefits incidental toownership of the leased item are classified as finance leases, and are capitalised at the commencementof the lease at the fair value of the leased property or, if lower, at the present value of the minimum leasepayments. Any initial direct costs are also added to the amount capitalised. The corresponding leaseobligations, net of finance charges, are included in other short-term and long-term payables. Leasepayments are apportioned between finance charges and reduction of the lease liability so as to achieve aconstant rate of interest on the remaining balance of the liability.

A leased asset is depreciated over the useful life of the asset. However, if there is no reasonablecertainty that the Group and the Bank will obtain ownership by the end of the lease term, the asset isdepreciated over the shorter of the estimated useful life of the asset and the lease term.

Leases that do not transfer to the Group and the Bank substantially all the risks and benefits incidental toownership of the leased items are operating leases. Operating lease payments are recognised as anoperating expense in profit or loss on a straight-line basis over the lease term. The aggregate benefits ofincentives provided by the lessor are recognised as a reduction of rental expenses over the lease termon a straight-line basis.

15

Company No. 8515-D




A1.2 Summary of Significant Accounting Policies Applied from 1 April 2018

(a) Leases

(ii) The Group and the Bank as a lessee (from 1 April 2019)

(iii)

In calculating the present value of lease payments, the Group and the Bank use the incrementalborrowing rate at the lease commencement date if the interest rate implicit in the lease is not readilydeterminable. After the commencement date, the amount of lease liabilities is increased to reflect theaccretion of interest and reduced for the lease payments made. In addition, the carrying amount of leaseliabilities is remeasured if there is a modification, a change in the lease term, a change in the in-substance fixed lease payments or a change in the assessment to purchase the underlying asset.

Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses,and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes theamount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or beforethe commencement date less any lease incentives received. Unless the Group and the Bank arereasonably certain to obtain ownership of the underlying asset at the end of the lease term, therecognised right-of-use assets are depreciated on a straight-line basis over the shorter of its estimateduseful life and the lease term. If the Group and the Bank are reasonably certain to obtain ownership ofthe underlying asset at the end of the lease term, the right-of-use asset is depreciated over theunderlying asset’s useful life. Right-of-use assets are assessed for impairment whenever there is anindication that the right-of-use assets may be impaired.

The Group and the Bank apply the short-term lease recognition exemption to its short-term leases, i.e.those leases that have a lease term of 12 months or less from the commencement date and do notcontain a purchase option. It also applies the lease of low-value assets recognition exemption to leasesof office equipment that are considered of low value, i.e. those with a value of RM20,000 or less whennew. Lease payments on short-term leases and leases of low-value assets are recognised as expenseon a straight-line basis over the lease term.

The Group and the Bank as a lessor

Leases in which the Group and the Bank do not transfer substantially all the risks and benefits ofownership of the asset are classified as operating leases. Rental income is recognised over the term ofthe lease on a straight-line basis. Initial direct costs incurred in negotiating an operating lease are addedto the carrying amount of the leased asset and recognised over the lease term on the same basis asrental income. Contingent rents are recognised as revenue in the period in which they are earned.

Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which theleased asset is available for use by the Group and the Bank.

At the commencement date of the lease, the Group and the Bank recognise lease liabilities measured atthe present value of lease payments to be made over the lease term. The lease payments include fixedpayments (including in-substance fixed payments) less any lease incentives receivable, variable leasepayments that depend on an index or a rate, and amounts expected to be paid under residual valueguarantees. The lease payments also include the exercise price of a purchase option reasonably certainto be exercised by the Group and the Bank and payments of penalties for terminating a lease, if the leaseterm reflects the Group and the Bank exercising the option to terminate. The variable lease paymentsthat do not depend on an index or a rate are recognised as expense in the period on which the event orcondition that triggers the payment occurs.

16

Company No. 8515-D




A1.3 Significant Accounting Judgements, Estimates and Assumptions

(a) Lease term of agreements with renewal options

A2. AUDIT QUALIFICATION

A3. SEASONALITY OR CYCLICALITY OF OPERATIONS

A4. UNUSUAL ITEMS DUE TO THEIR NATURE, SIZE OR INCIDENCE

There were no unusual items during the current financial quarter.

A5. CHANGES IN ESTIMATES

The Group and the Bank determine the lease term as the non-cancellable term of the lease, together with anyperiods covered by an option to extend the lease if it is reasonably certain to be exercised.

The Group and the Bank have the option, under some of its leases to lease the assets for additional terms ofthree to twelve years. The extension options held are exercisable only by the Group or the Bank and not bythe respective lessor. In determining the lease term, the Group and the Bank consider all facts andcircumstances that create an economic incentive to exercise an extension option. Factors considered includehistorical lease durations and the costs and business disruption required to replace the leased asset. After thecommencement date, the Group and the Bank reassesse the lease term if there is a significant event orchange in circumstances that is within its control and affects its ability to exercise (or not to exercise) theoption to renew. The Group and the Bank included the renewal period as part of the lease term for most of itsleases of premises due to the significance of these assets to its operations.

The auditors’ report on the audited annual financial statements for the financial year ended 31 March 2019 was not qualified.

The preparation of the condensed interim financial statements in accordance with MFRS requires management tomake judgements, estimates and assumptions that affect the application of accounting policies and reported amountsof revenue, expenses, assets and liabilities, the accompanying disclosures and the disclosure of contingent liabilities.Judgements, estimates and assumptions are continually evaluated and are based on past experience, reasonableexpectations of future events and other factors. Uncertainty about these assumptions and estimates could result inoutcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

In the process of applying the Group's and the Bank's accounting policies, the significant judgements, estimates andassumptions made by management were the same as those applied to the annual financial statements for thefinancial year ended 31 March 2019, as well as the following:

There was no material change in estimates of amounts reported in prior financial years that have a material effect on thefinancial quarter ended 30 June 2019.

The operations of the Group and the Bank are not subject to seasonal or cyclical fluctuation in the current financial quarter.

17

Company No. 8515-D


A6. ISSUANCE, REPURCHASE AND REPAYMENT OF DEBT AND EQUITY SECURITIES

A7. DIVIDENDS

Other than disclosed above, there were no share buy-backs, share cancellations, shares held as treasury shares, resale oftreasury shares and repayment of debt and equity securities by the Group and the Bank during the financial quarter.

During the financial quarter, the final single-tier cash dividend of 38.00 sen per ordinary share on 836,852,786 ordinaryshares amounting to approximately RM318,004,059 in respect of the financial year ended 31 March 2019 was paid on 21June 2019.

Upon maturity on 3 July 2019, the Bank fully redeemed its USD400.0 million Senior Notes issued under USD2.0 billion EuroMedium Term Note Programme.

18

Company No. 8515-D


A8. CASH AND SHORT-TERM FUNDS

30 June 31 March 30 June 31 March2019 2019 2019 2019

RM’000 RM’000 RM’000 RM’000

Cash and bank balances 1,446,126 1,320,100 1,444,182 1,318,159 Deposit placements maturing within one month: Licensed banks 2,588,477 3,258,280 2,585,509 3,255,510 Bank Negara Malaysia 170,000 710,000 170,000 710,000

2,758,477 3,968,280 2,755,509 3,965,510

Total cash and bank balances and deposit placements 4,204,603 5,288,380 4,199,691 5,283,669

Less: Allowances for ECL (851) (1,337) (851) (1,337)

4,203,752 5,287,043 4,198,840 5,282,332

Movements in allowances for ECL are as follows:

Stage 1 Stage 2Lifetime ECL

12-Month not creditECL impaired Total

Group and Bank RM’000 RM’000 RM’000

Balance at beginning of the financial period 1,306 31 1,337 Changes due to cash and short term funds movement: (462) (8) (470) New financial assets originated 3,074 - 3,074 Financial derecognised (5,736) - (5,736) Transfer from deposits and placement 2,174 - 2,174 Net remeasurement of allowances 26 (8) 18 Exchange difference (17) 1 (16) Balance at end of the financial period 827 24 851




Balance at beginning of the financial year- as previously stated - - - - effects of adoption of MFRS 9 973 - 973 Balance at beginning of the financial year, as restated 973 - 973 Net remeasurement of allowances 295 32 327 Exchange difference 38 (1) 37 Balance at end of the financial year 1,306 31 1,337

Group Bank

31 March 2019

30 June 2019

19

Company No. 8515-D


A9. DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS

30 June 31 March2019 2019

RM’000 RM’000

Licensed banks 20,327 182,994 Licensed investment banks 150,000 150,000

170,327 332,994 Less: Allowances for ECL (1,404) (2,076)

168,923 330,918

Movements in allowances for ECL are as follows:Stage 1

12-MonthECL

RM’000

Balance at beginning of the financial period 2,076 Changes due to deposits and placements movement: (672) New financial assets originated 1,606 Transfer to cash and short term funds (2,174) Net remeasurement of allowances (104)

Balance at end of the financial period 1,404

Stage 112-Month

ECLRM’000

Balance at beginning of the financial year- as previously stated - - effects of adoption of MFRS 9 - Balance at beginning of the financial year, as restated - Net remeasurement of allowance 2,076 Balance at end of the financial year 2,076

A10. INVESTMENT ACCOUNT PLACEMENT

30 June 31 March2019 2019

RM’000 RM’000

Licensed Islamic bank 1,538,203 1,465,539

Less: Allowance for ECL (3,756) (3,659)

1,534,447 1,461,880

31 March 2019

Group and Bank

30 June 2019

Group and Bank

Group and Bank

Group and Bank

20

Company No. 8515-D


A10. INVESTMENT ACCOUNT PLACEMENT (CONT'D.)





Balance at beginning of the financial period 948 2,711 3,659 Changes due to investment account placement movements:Net remeasurement of allowances 94 3 97

Balance at end of the financial period 1,042 2,714 3,756




Balance at beginning of the financial year- as previously stated - - - - reclassification 2,740 - 2,740 - effects of adoption of MFRS 9 1,519 - 1,519 Balance at beginning of the financial year, as restated 4,259 - 4,259 Changes due to investment account placement movements: (3,311) 2,711 (600) Transfer to Stage 2 (2,372) 13,632 11,260 Net remeasurement of allowances (939) (10,921) (11,860)

Balance at end of the financial year 948 2,711 3,659

30 June 2019

This represent investment placed under Restricted Investment Account ("RIA") arrangement with AmBank Islamic Berhad("AmBank Islamic"). The contract is based on the Shariah concept of Mudarabah Muqayyadah between two parties, that is,the investor ("the Bank") and the entrepreneur ("AmBank Islamic") to finance a business venture where the investor providescapital and the business venture is managed solely by the entrepreneur. The profit of the business venture is sharedbetween both parties based on pre-agreed ratio. Losses shall be borne solely by the investor. The investment assetsfinanced under this arrangement are financing and advances extended by AmBank Islamic to external customers.

31 March 2019

As at 30 June 2019, the gross exposure relating to the RIA financing for the Group and the Bank amounted to RM1,542.7million (31 March 2019: RM1,470.1 million). No stage 3 ECL is provided for the RIA financing as at 30 June 2019 and 31March 2019.

21

Company No. 8515-D


A11. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS ("FVTPL")


RM’000 RM’000 RM’000 RM’000At fair value

Money market instruments: Bank Negara Monetary Notes 408,739 4,096,745 408,739 4,096,745 Islamic Treasury Bills 324,519 43,727 324,519 43,727 Malaysian Government Investment Issues 900,874 692,224 900,874 692,224 Malaysian Government Securities 6,189,039 3,670,874 6,189,039 3,670,874 Malaysian Treasury Bills 581,710 689,738 581,710 689,738

8,404,881 9,193,308 8,404,881 9,193,308

Quoted securities:In Malaysia: Shares 237,594 199,594 237,594 199,594 Unit trusts 22,507 22,616 22,507 22,616 Sukuk 38,064 37,937 38,064 37,937

298,165 260,147 298,165 260,147

Outside Malaysia: Shares 123,314 117,961 123,310 117,958

Unquoted securities:In Malaysia: Shares 45 45 - - Corporate bonds and sukuk 1,402,447 1,075,374 1,402,447 1,075,374

1,402,492 1,075,419 1,402,447 1,075,374

10,228,852 10,646,835 10,228,803 10,646,787

Group Bank

22

Company No. 8515-D


A12. FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME ("FVOCI")


RM’000 RM’000 RM’000 RM’000At fair value

Money market instruments: Malaysian Government Investment Issues 3,133,363 2,326,431 3,133,363 2,326,431 Malaysian Government Securities 3,784,396 2,841,697 3,784,396 2,841,697 Islamic Negotiable Instruments of Deposit - 99,398 - 99,398 Negotiable Instruments of Deposit 99,965 299,979 99,965 299,979

7,017,724 5,567,505 7,017,724 5,567,505

Quoted securities:In Malaysia: Unit trusts 92,662 98,167 92,662 98,167

92,662 98,167 92,662 98,167

Unquoted securities:In Malaysia: Corporate bonds and sukuk 6,644,259 6,119,342 6,661,880 6,140,239 Shares 518,533 518,533 518,533 518,533

7,162,792 6,637,875 7,180,413 6,658,772

Outside Malaysia: Corporate bonds and sukuk 106,746 106,132 106,746 106,132 Shares 545 531 545 531

107,291 106,663 107,291 106,663

14,380,469 12,410,210 14,398,090 12,431,107

Group Bank

23

Company No. 8515-D


A12. FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME ("FVOCI")(CONT'D.)


Stage 1 Stage 2 Stage 3Lifetime ECL Lifetime ECL

12-Month not credit creditECL impaired impaired Total

Group RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial period 9,914 3,195 - 13,109 Changes due to FVOCI movements: 529 (1,891) - (1,362)

- Transfer to Stage 1 593 (1,006) - (413) - Transfer to Stage 2 (325) 512 - 187

New financial assets originated 2,340 - - 2,340 Financial assets derecognised (1,934) - - (1,934)

Net remeasurement of allowances (145) (1,397) - (1,542)

Balance at end of the financial period 10,443 1,304 - 11,747



Group RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial year- as previously stated - - 7,318 7,318 - effects of adoption of MFRS 9 8,708 3,132 (2,318) 9,522 Balance at beginning of the financial year,

as restated 8,708 3,132 5,000 16,840 Changes due to FVOCI movements: 866 63 - 929

New financial assets originated 13,159 281 - 13,440 Financial assets derecognised (3,785) - - (3,785) Net remeasurement of allowances (8,508) (218) - (8,726)

Write-off during the financial year - - (5,000) (5,000) Exchange difference 340 - - 340 Balance at end of the financial year 9,914 3,195 - 13,109

30 June 2019

31 March 2019

24

Company No. 8515-D


A12. FINANCIAL INVESTMENTS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME ("FVOCI")(CONT'D.)

Movements in allowances for impairment which reflect the ECL model on impairment are as follows (Cont'd.):



Bank RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial period 9,934 3,195 - 13,129 Changes due to FVOCI movements: 525 (1,891) - (1,366)

- Transfer to Stage 1 593 (1,006) - (413) - Transfer to Stage 2 (325) 512 - 187

New financial assets originated 2,340 - - 2,340 Financial assets derecognised (1,934) - - (1,934)

Net remeasurement of allowances (149) (1,397) - (1,546)

Balance at end of the financial period 10,459 1,304 - 11,763



Bank RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial year- as previously stated - - 7,318 7,318 - effects of adoption of MFRS 9 8,740 3,132 (2,318) 9,554 Balance at beginning of the financial year,

as restated 8,740 3,132 5,000 16,872 Changes due to FVOCI movements: 855 63 - 918

New financial assets originated 13,159 281 - 13,440 Financial assets derecognised (3,785) - - (3,785) Net remeasurement of allowances (8,519) (218) - (8,737)

Write-off during the financial year - - (5,000) (5,000) Exchange difference 339 - - 339 Balance at end of the financial year 9,934 3,195 - 13,129

30 June 2019

31 March 2019

25

Company No. 8515-D


A13. FINANCIAL INVESTMENTS AT AMORTISED COST

30 June 31 March2019 2019

RM’000 RM’000At amortised cost

Money market instruments: Malaysian Government Investment Issues 151,310 151,331

Unquoted securities:In Malaysia: Corporate bonds and sukuk 3,069,080 3,159,196

Less: Allowances for ECL (5,102) (5,091) 3,215,288 3,305,436




RM’000 RM’000 RM’000 RM’000Group and Bank

Balance at beginning of the financial period 5,091 - - 5,091 Changes due to financial investments atamortised cost movements: Net remeasurement of allowances 11 - - 11 Balance at end of the financial period 5,102 - - 5,102



Group and Bank RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial year- as previously stated - - 2,550 2,550 - effects of adoption of MFRS 9 3,202 - - 3,202 Balance at beginning of the financial 3,202 - 2,550 5,752 year, as restatedChanges due to financial investments atamortised cost movements: 1,889 - (1,459) 430 Net remeasurement of allowances 1,889 - - 1,889 Financial assets derecognised - - (1,459) (1,459) Amount written-off - - (1,091) (1,091) Balance at end of the financial year 5,091 - - 5,091

30 June 2019

31 March 2019

Group and Bank

26

Company No. 8515-D


A14. LOANS AND ADVANCES


RM’000 RM’000 RM’000 RM’000At amortised cost:Overdraft 2,727,813 2,804,689 2,727,813 2,804,689 Term loans 17,240,052 17,047,940 17,240,052 17,047,940 Housing loan receivables 24,509,883 24,208,913 24,371,229 24,064,713 Hire purchase receivables 11,374,582 11,877,428 11,374,582 11,877,428 Bills receivables 1,284,007 1,467,993 1,284,007 1,467,993 Trust receipts 1,496,585 1,548,143 1,496,585 1,548,143 Claims on customers under acceptance credits 3,395,548 3,527,019 3,395,548 3,527,019 Card receivables 1,695,295 1,695,862 1,695,295 1,695,862 Revolving credits 7,466,846 7,572,004 7,549,049 7,657,857 Staff loans 92,985 94,624 92,985 94,624 Others 442,183 377,006 442,183 377,006

Gross loans and advances 71,725,779 72,221,621 71,669,328 72,163,274

Allowances for ECL: - Stage 1 - 12 months ECL (178,818) (194,437) (178,830) (194,440) - Stage 2 - Lifetime ECL not credit impaired (318,614) (415,068) (318,602) (415,058) - Stage 3 - Lifetime ECL credit impaired (246,689) (278,012) (246,550) (277,888) Net loans and advances 70,981,658 71,334,104 70,925,346 71,275,888

(a) Gross loans and advances analysed by type of customer are as follows:

Group Bank30 June 31 March 30 June 31 March

2019 2019 2019 2019RM’000 RM’000 RM’000 RM’000

Domestic banking institutions 123,294 123,956 123,294 123,956 Domestic non-bank financial institutions 1,154,796 1,170,815 1,236,998 1,256,668 Domestic business enterprises - Small medium enterprises 14,292,660 14,422,280 14,292,660 14,422,280 - Others 14,913,577 14,758,129 14,913,577 14,758,129 Government and statutory bodies 47,006 45,047 47,006 45,047 Individuals 39,959,920 40,468,966 39,821,267 40,324,766 Other domestic entities 6,765 7,357 6,765 7,357 Foreign individuals and entities 1,227,761 1,225,071 1,227,761 1,225,071

71,725,779 72,221,621 71,669,328 72,163,274

Group Bank

27

Company No. 8515-D


A14. LOANS AND ADVANCES (CONT'D.)

(b) Gross loans and advances analysed by geographical distribution are as follows:


RM’000 RM’000 RM’000 RM’000

In Malaysia 71,432,345 71,943,528 71,375,894 71,885,181 Outside Malaysia 293,434 278,093 293,434 278,093

71,725,779 72,221,621 71,669,328 72,163,274

(c) Gross loans and advances analysed by interest rate sensitivity are as follows:


RM’000 RM’000 RM’000 RM’000

Fixed rate - Housing loans 244,586 253,292 105,933 109,092 - Hire purchase receivables 10,582,627 11,032,531 10,582,627 11,032,531 - Other fixed rate loans 6,078,983 6,369,570 6,078,983 6,369,570 Variable rate - Base rate and base lending rate plus 35,899,297 35,907,199 35,899,297 35,907,199 - Cost plus 13,715,847 13,611,676 13,798,049 13,697,529 - Other variable rates 5,204,439 5,047,353 5,204,439 5,047,353

71,725,779 72,221,621 71,669,328 72,163,274

(d) Gross loans and advances analysed by sector are as follows:


RM’000 RM’000 RM’000 RM’000

Agriculture 1,573,557 1,635,457 1,573,557 1,635,457 Mining and quarrying 1,051,341 1,039,055 1,051,341 1,039,055 Manufacturing 7,969,482 7,802,012 7,969,482 7,802,012 Electricity, gas and water 229,458 306,570 229,458 306,570 Construction 3,450,137 3,416,194 3,450,137 3,416,194 Wholesale and retail trade and hotel and restaurants 5,093,972 5,214,788 5,093,972 5,214,788 Transport, storage and communication 1,259,131 1,309,669 1,259,131 1,309,669 Finance and insurance 1,300,991 1,316,011 1,383,193 1,401,864 Real estate 5,985,919 6,150,427 5,985,919 6,150,427 Business activities 1,589,752 1,570,314 1,589,752 1,570,314 Education and health 1,109,339 838,329 1,109,339 838,329 Household of which: 40,876,542 41,392,207 40,737,889 41,248,007 - purchase of residential properties 23,892,829 23,680,763 23,754,176 23,536,563 - purchase of transport vehicles 10,200,203 10,793,015 10,200,203 10,793,015 - others 6,783,510 6,918,429 6,783,510 6,918,429 Others 236,158 230,588 236,158 230,588

71,725,779 72,221,621 71,669,328 72,163,274

Bank Group

Group

Group Bank

Bank

28

Company No. 8515-D



(e) Gross loans and advances analysed by residual contractual maturity are as follows:


RM’000 RM’000 RM’000 RM’000

Maturing within one year 14,481,932 15,255,244 14,562,627 15,339,372 Over one year to three years 5,261,275 5,379,090 5,254,606 5,372,355 Over three years to five years 6,607,731 6,259,538 6,595,864 6,248,175 Over five years 45,374,841 45,327,749 45,256,231 45,203,372

71,725,779 72,221,621 71,669,328 72,163,274

(f) Movements in impaired loans and advances are as follows:


RM’000 RM’000 RM’000 RM’000Balance at beginning of the financial period/year 1,046,442 1,053,800 1,045,699 1,053,616 Impaired during the financial period/year 394,187 746,162 394,182 745,539 Reclassified as non-impaired (70,079) (175,073) (70,079) (175,073) Recoveries (187,315) (179,578) (187,305) (179,514) Amount written off (119,958) (404,015) (119,958) (404,015) Foreign exchange differences 1,166 5,146 1,166 5,146 Balance at end of the financial period/year 1,064,443 1,046,442 1,063,705 1,045,699

Gross impaired loans and advances as % of gross loans and advances 1.48% 1.45% 1.48% 1.45%

Loan loss coverage (Including regulatory reserve and ECL on loan commitments

and financial guarantees) 113.4% 119.1% 113.5% 119.2%

(g) Impaired loans and advances analysed by geographical distribution are as follows:


RM’000 RM’000 RM’000 RM’000

In Malaysia 1,018,174 988,218 1,017,436 987,475 Outside Malaysia 46,269 58,224 46,269 58,224

1,064,443 1,046,442 1,063,705 1,045,699

BankGroup

Group

Group

Bank

Bank

29

Company No. 8515-D



19 (h) Impaired loans and advances analysed by sector are as follows:


(Restated) (Restated)(Note A36(b)) (Note A36(b))

RM’000 RM’000 RM’000 RM’000

Agriculture 8,687 552 8,687 552 Mining and quarrying 48,246 76,325 48,246 76,325 Manufacturing 229,795 142,567 229,795 142,567 Electricity, gas and water 144 140 144 140 Construction 43,444 19,744 43,444 19,744 Wholesale and retail trade and hotel and restaurants 58,316 47,623 58,316 47,623 Transport, storage and communication 5,904 6,647 5,904 6,647 Finance and insurance - 1 - 1 Real estate 74,868 213,425 74,868 213,425 Business activities 20,604 12,256 20,604 12,256 Education and health 9,724 7,996 9,724 7,996 Household of which: 564,711 519,166 563,973 518,423 - purchase of residential properties 335,069 302,799 334,331 302,056 - purchase of transport vehicles 142,418 130,941 142,418 130,941 - others 87,224 85,426 87,224 85,426

1,064,443 1,046,442 1,063,705 1,045,699

Group Bank

30

Company No. 8515-D



(i) Movements in allowances for ECL are as follows:



Group RM’000 RM’000 RM’000 RM’000

30 June 2019Balance at beginning of the financial period 194,437 415,068 278,012 887,517 Changes due to loans and advances movements: (15,664) (96,490) 88,485 (23,669) - Transfer to Stage 1 9,790 (70,627) (2,077) (62,914) - Transfer to Stage 2 (13,310) 88,482 (21,012) 54,160 - Transfer to Stage 3 (834) (21,714) 69,080 46,532 New financial assets originated 28,329 6,377 1,249 35,955

(11,884) (86,634) 78,462 (20,056) Modification of contractual cash flows of financial assets (1,474) 66 204 (1,204) Financial assets derecognised (26,281) (12,440) (37,421) (76,142) Foreign exchange difference 45 36 150 231 Amount written-off - - (119,958) (119,958) Balance at end of the financial period 178,818 318,614 246,689 744,121

Balance at beginning of the financial year- as previously stated - - - 681,652 - reclassification to Investment account placement - - - (2,740) - effects of adoption of MFRS 9 - - - 311,358 Balance at beginning of the financial

year, as restated 191,967 484,323 313,980 990,270 Changes due to loans and advances

movements: 2,233 (69,321) 371,061 303,973 - Transfer to Stage 1 9,379 (101,861) (4,839) (97,321) - Transfer to Stage 2 (14,101) 137,437 (17,179) 106,157 - Transfer to Stage 3 (1,959) (26,642) 157,421 128,820 New financial assets originated 52,015 111,818 7,465 171,298

(8,106) (150,510) 284,595 125,979 Modification of contractual cash flows of financial assets (1,111) (730) 112 (1,729) Financial assets derecognised (33,884) (38,833) (56,514) (129,231) Foreign exchange differences 237 66 (3,014) (2,711) Amount written-off - - (404,015) (404,015) Balance at end of the financial year 194,437 415,068 278,012 887,517

31 March 2019

Changes in credit risk


31

Company No. 8515-D



(i) Movements in allowances for ECL are as follows (Cont'd.):



Bank RM’000 RM’000 RM’000 RM’000

30 June 2019Balance at beginning of the financial period 194,440 415,058 277,888 887,386 Changes due to loans and advances movements: (15,655) (96,492) 88,470 (23,677) - Transfer to Stage 1 9,790 (70,627) (2,077) (62,914) - Transfer to Stage 2 (13,310) 88,473 (21,012) 54,151 - Transfer to Stage 3 (834) (21,711) 69,074 46,529 New financial assets originated 28,329 6,377 1,249 35,955

(11,876) (86,631) 78,449 (20,058) Modification of contractual cash flows of financial assets (1,474) 66 204 (1,204) Financial assets derecognised (26,280) (12,439) (37,417) (76,136) Foreign exchange difference 45 36 150 231 Amount written-off - - (119,958) (119,958) Balance at end of the financial period 178,830 318,602 246,550 743,982

Balance at beginning of the financial year- as previously stated - - - 681,616 - reclassification to Investment account placement - - - (2,740) - effects of adoption of MFRS 9 - - - 311,322 Balance at beginning of the financial

year, as restated 191,967 484,292 313,939 990,198 Changes due to loans and advances

movements: 2,234 (69,297) 370,976 303,913 - Transfer to Stage 1 9,379 (101,861) (4,839) (97,321) - Transfer to Stage 2 (14,101) 137,433 (17,179) 106,153 - Transfer to Stage 3 (1,958) (26,625) 157,322 128,739 New financial assets originated 52,007 111,818 7,465 171,290

(8,101) (150,508) 284,595 125,986 Modification of contractual cash flows of financial assets (1,111) (730) 112 (1,729) Financial assets derecognised (33,881) (38,824) (56,500) (129,205) Foreign exchange differences 239 63 (3,012) (2,710) Amount written-off - - (404,015) (404,015) Balance at end of the financial year 194,440 415,058 277,888 887,386


31 March 2019


32

Company No. 8515-D


A15. OTHER ASSETS


RM’000 RM’000 RM’000 RM’000

Other receivables, deposits and prepayments 279,672 268,257 278,179 266,762 Interest receivable 340,588 347,112 340,591 347,115 Amount due from related companies 31,963 52,071 33,134 53,211 Collateral pledged for derivative transactions 413,730 386,679 413,730 386,679 Foreclosed properties 2,596 2,596 2,288 2,289 Deferred charges 109,611 109,389 109,611 109,389 Tax recoverable 69,318 12,995 60,579 4,213

1,247,478 1,179,099 1,238,112 1,169,658

Less: Accumulated impairment losses (3,354) (3,980) (2,888) (3,521) 1,244,124 1,175,119 1,235,224 1,166,137

A16. DEPOSITS FROM CUSTOMERS

Group30 June 31 March 30 June 31 March

2019 2019 2019 2019RM’000 RM’000 RM’000 RM’000

Demand deposits 11,243,269 12,671,394 11,245,727 12,673,943 Savings deposits 3,477,272 3,390,134 3,477,272 3,390,134 Term/Investment deposits 55,168,415 56,875,971 55,170,378 56,877,919 Negotiable instruments of deposits 4,897,986 3,011,821 4,897,986 3,011,821

74,786,942 75,949,320 74,791,363 75,953,817

(i) The deposits are sourced from the following type of customers:


2019 2019 2019 2019RM’000 RM’000 RM’000 RM’000

Government and other statutory bodies 912,689 886,663 912,689 886,663 Business enterprises 30,928,714 33,282,772 30,933,135 33,287,269 Individuals 34,586,288 35,449,908 34,586,288 35,449,908 Others 8,359,251 6,329,977 8,359,251 6,329,977

74,786,942 75,949,320 74,791,363 75,953,817

Bank

Bank

Bank

Group

33

Company No. 8515-D


A16. DEPOSITS FROM CUSTOMERS (CONT'D.)

(ii) The maturity structure of term/investment deposits and negotiable instruments of deposits is as follows:


RM’000 RM’000 RM’000 RM’000

Due within six months 47,226,461 44,417,743 47,228,424 44,419,691 Over six months to one year 11,155,490 13,766,032 11,155,490 13,766,032 Over one year to three years 1,256,447 1,217,031 1,256,447 1,217,031 Over three years to five years 428,003 486,986 428,003 486,986

60,066,401 59,887,792 60,068,364 59,889,740

A17. DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS


2019 2019 2019 2019RM’000 RM’000 RM’000 RM’000

Licensed banks 5,797,553 3,941,099 5,797,553 3,941,099 Licensed investment banks 172,450 170,208 172,450 170,208 Other financial institutions 913,133 1,149,061 923,236 1,160,424 Bank Negara Malaysia 126,158 119,205 126,158 119,205

7,009,294 5,379,573 7,019,397 5,390,936

A18. OTHER LIABILITIES

30 June 31 March 30 June 31 March

2019 2019 2019 2019

RM’000 RM’000 RM’000 RM’000

Other payables and accruals 886,452 1,215,736 874,855 1,203,985

Lease liabilities 249,350 - 249,350 -

Provision for reinstatement

for leased properties 12,839 - 12,839 -

Interest payable 729,146 743,818 729,147 743,820

Amount due to related companies 39,510 238,412 39,512 238,412

Collateral received for derivative transactions 155,406 140,104 155,406 140,104

Lease deposits and advance rentals 29,286 28,270 29,286 28,270

Provision for commitments and contingencies:

- others 53,514 54,514 53,514 54,014 Allowances for ECL on loan commitments and financial guarantees (Note (a)) 92,129 78,520 92,167 78,552 Provision for taxation 1,252 1,033 1,252 1,033 Deferred income 65,923 65,560 65,923 65,560

2,314,807 2,565,967 2,303,251 2,553,750

Bank

Bank

Bank

Group

Group

34

Company No. 8515-D


A18. OTHER LIABILITIES (CONT'D.)

(a)



Group RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial period 41,569 26,058 10,893 78,520 Changes due to loan commitments and financial guarantees movements: (6,183) 2,451 17,238 13,506 - Transfer to 12 month ECL (Stage 1) 1,280 (8,458) - (7,178) - Transfer to Lifetime ECL not credit impaired (Stage 2) (1,105) 7,849 - 6,744 - Transfer to Lifetime ECL credit impaired (Stage 3) (97) (2,990) 17,235 14,148 New financial instruments originated 8,185 5,010 - 13,195

(5,661) 3,772 3 (1,886)

145 - - 145 Financial assets derecognised (8,930) (2,732) - (11,662) Foreign exchange difference 49 57 (3) 103 Balance at end of the financial period 35,435 28,566 28,128 92,129



Group RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial year- as previously stated 61,434 - effects of adoption of MFRS 9 28,066 Balance at beginning of the financial

year, as restated 49,253 40,039 208 89,500 Changes due to loan commitments and financial guarantees movements: (7,790) (13,942) 10,683 (11,049) - Transfer to 12 month ECL (Stage 1) 1,147 (12,295) - (11,148) - Transfer to Lifetime ECL not credit impaired (Stage 2) (1,704) 8,535 - 6,831 - Transfer to Lifetime ECL credit impaired (Stage 3) (91) (132) 10,893 10,670 New financial instruments originated 15,925 9,732 - 25,657 Net remeasurement of allowances (8,359) (9,117) (210) (17,686) Financial assets derecognised (14,708) (10,665) - (25,373) Foreign exchange differences 106 (39) 2 69 Balance at end of the financial year 41,569 26,058 10,893 78,520


Movements in provision for loan commitments and financial guarantees which reflect the ECL model on impairmentare as follows:

30 June 2019

31 March 2019

Modification of contractual cash flows of financial assets

35

Company No. 8515-D


A18. OTHER LIABILITIES (CONT'D.)

(a)



Bank RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial period 41,602 26,058 10,892 78,552 Changes due to loan commitments and

financial guarantees movements: (6,177) 2,451 17,238 13,512 - Transfer to 12 month ECL (Stage 1) 1,280 (8,458) - (7,178) - Transfer to Lifetime ECL not credit impaired (Stage 2) (1,105) 7,849 - 6,744 - Transfer to Lifetime ECL credit impaired (Stage 3) (97) (2,990) 17,235 14,148 New financial instruments originated 8,185 5,010 - 13,195

Changes in credit risk (5,655) 3,772 3 (1,880)

145 - - 145 Financial assets derecognised (8,930) (2,732) - (11,662)

Foreign exchange difference 49 57 (3) 103 Balance at end of the financial period 35,474 28,566 28,127 92,167



Bank RM’000 RM’000 RM’000 RM’000

Balance at beginning of the financial year- as previously stated 61,480 - effects of adoption of MFRS 9 28,053 Balance at beginning of the financial year, as restated 49,286 40,039 208 89,533 Changes due to loan commitments and financial guarantees movements: (7,792) (13,942) 10,683 (11,051) - Transfer to 12 month ECL (Stage 1) 1,147 (12,295) - (11,148) - Transfer to Lifetime ECL not credit impaired (Stage 2) (1,704) 8,535 - 6,831 - Transfer to Lifetime ECL credit impaired (Stage 3) (91) (132) 10,893 10,670 New financial instruments originated 15,925 9,732 - 25,657 Net remeasurement of allowances (8,361) (9,117) (210) (17,688) Financial assets derecognised (14,708) (10,665) - (25,373) Foreign exchange differences 108 (39) 1 70 Balance at end of the financial year 41,602 26,058 10,892 78,552

30 June 2019

31 March 2019

Modification of contractual cash flows of financial assets

Movements in provision for loan commitments and financial guarantees which reflect the ECL model on impairmentare as follows (Cont'd.):

36

Company No. 8515-D


A19. INTEREST INCOME



Short-term funds and deposits and placements with financial institutions 22,311 17,685 22,311 17,685 Financial assets at fair value through profit or loss 88,249 71,320 88,249 71,320 Financial investments at fair value through

other comprehensive income 128,834 57,348 128,834 57,348 Financial investments at amortised cost 34,646 32,111 34,646 32,111 Loans and advances 957,319 920,029 957,319 920,029 Investment account placement 16,022 23,552 16,022 23,552 Impaired loans and advances 2,809 3,354 2,809 3,354 Others 4,579 5,999 4,579 5,999

1,254,769 1,131,398 1,254,769 1,131,398

Bank

Short-term funds and deposits and placements with financial institutions 22,278 17,653 22,278 17,653 Financial assets at fair value through profit or loss 88,249 71,320 88,249 71,320 Financial investments at fair value through

other comprehensive income 129,081 57,773 129,081 57,773 Financial investments at amortised cost 34,646 32,111 34,646 32,111 Loans and advances 956,031 918,497 956,031 918,497 Investment account placement 16,022 23,552 16,022 23,552 Impaired loans and advances 2,809 3,354 2,809 3,354 Others 4,579 5,999 4,579 5,999

1,253,695 1,130,259 1,253,695 1,130,259


37

Company No. 8515-D


A20. INTEREST EXPENSE



Deposits from customers 611,841 562,608 611,841 562,608 Deposits and placements of banks and other financial institutions 45,511 28,758 45,511 28,758 Securities sold under repurchase agreements 40,311 667 40,311 667 Recourse obligation on loans sold to Cagamas Berhad 43,369 39,854 43,369 39,854 Term funding 25,436 26,114 25,436 26,114 Debt capital 42,683 47,536 42,683 47,536 Others 1,038 2,523 1,038 2,523

810,189 708,060 810,189 708,060

Bank

Deposits from customers 611,842 562,620 611,842 562,620 Deposits and placements of banks and other financial institutions 45,539 28,776 45,539 28,776 Securities sold under repurchase agreements 40,311 667 40,311 667 Recourse obligation on loans sold to Cagamas Berhad 43,369 39,854 43,369 39,854 Term funding 25,436 26,114 25,436 26,114 Debt capital 42,683 47,536 42,683 47,536 Others 1,038 2,523 1,038 2,523

810,218 708,090 810,218 708,090


38

Company No. 8515-D


A21. OTHER OPERATING INCOME



Fee and commission income:Bancassurance commission 6,780 5,956 6,780 5,956 Brokerage fees, commission and rebates 713 529 713 529 Fees on loans, advances and securities 37,814 43,347 37,814 43,347 Fees, service and commission charges 7,683 7,392 7,683 7,392 Guarantee fees 13,759 15,300 13,759 15,300 Remittances 5,798 5,374 5,798 5,374 Other fee and commission 12,968 12,515 12,968 12,515

85,515 90,413 85,515 90,413

Investment and trading income:Foreign exchange gain * 16,546 45,409 16,546 45,409 Gross dividend income from: Financial assets at fair value through profit or loss 279 1,535 279 1,535 Financial investments at fair value through other comprehensive income 2,610 1,810 2,610 1,810 Net gain/(loss) on on sale/redemption of: Financial assets at fair value through profit or loss 13,682 (6,940) 13,682 (6,940) Financial investments at fair value through other comprehensive income 7,970 165 7,970 165 Net gain/(loss) on revaluation of financial assets at fair value through profit or loss 22,669 (16,969) 22,669 (16,969) Net loss on derivatives (16,077) (4,217) (16,077) (4,217) Others 3,109 6,318 3,109 6,318

50,788 27,111 50,788 27,111

Other income:(Loss)/gain on disposal of foreclosed property (1) 21,653 (1) 21,653 Net gain on disposal of property and equipment 3 48 3 48 Net non trading foreign exchange gain 417 163 417 163 Profit from sale of goods and services 4,361 5,013 4,361 5,013 Rental income 1,703 1,301 1,703 1,301 Others 1,147 2,644 1,147 2,644

7,630 30,822 7,630 30,822

143,933 148,346 143,933 148,346

* Foreign exchange income includes gains and losses from spot and forward contracts and other currency derivatives.


39

Company No. 8515-D


A21. OTHER OPERATING INCOME (CONT'D.)


RM’000 RM’000 RM’000 RM’000Bank

Fee and commission income:Bancassurance commission 6,780 5,956 6,780 5,956 Brokerage fees, commission and rebates 713 529 713 529 Fees on loans, advances and securities 37,814 43,347 37,814 43,347 Fees, service and commission charges 7,589 7,276 7,589 7,276 Guarantee fees 13,759 15,300 13,759 15,300 Remittances 5,798 5,374 5,798 5,374 Other fee and commission 12,968 12,515 12,968 12,515

85,421 90,297 85,421 90,297

Investment and trading income:Foreign exchange gain * 16,546 45,409 16,546 45,409 Gross dividend income/distribution from: Financial assets at fair value through profit or loss 279 1,535 279 1,535 Financial investments at fair value through other comprehensive income 2,610 1,810 2,610 1,810 Net gain/(loss) on sale/redemption of: Financial assets at fair value through profit or loss 13,682 (6,940) 13,682 (6,940) Financial investments at fair value through other comprehensive income 7,970 165 7,970 165 Net gain/(loss) on revaluation of financial assets at fair value through profit or loss 22,669 (16,939) 22,669 (16,939) Net loss on derivatives (16,077) (4,217) (16,077) (4,217) Others 3,109 6,318 3,109 6,318

50,788 27,141 50,788 27,141

Other income:(Loss)/gain on disposal of foreclosed property (1) 21,653 (1) 21,653 Net gain on disposal of property and equipment 3 48 3 48 Net non trading foreign exchange gain 427 169 427 169 Profit from sale of goods and services 4,361 5,013 4,361 5,013 Rental income 1,627 1,198 1,627 1,198 Others 1,118 2,637 1,118 2,637

7,535 30,718 7,535 30,718

143,744 148,156 143,744 148,156

* Foreign exchange income includes gains and losses from spot and forward contracts and other currency derivatives.


40

Company No. 8515-D


A22. OTHER OPERATING EXPENSES



Personnel costs:Medical 4,934 7,087 4,934 7,087 Insurance 6,371 5,986 6,371 5,986 Contributions to Employees' Provident Fund/

Private Retirement Schemes ("PRS") 31,253 29,357 31,253 29,357 Salaries, bonuses, allowances and incentives 199,848 192,522 199,848 192,522 Share and options granted under ESS -

charge/(writeback) 1,946 (6,190) 1,946 (6,190) Social security costs 1,596 1,720 1,596 1,720 Recruitment costs 1,408 1,591 1,408 1,591 Training 3,212 2,057 3,212 2,057 Others 372 2,196 372 2,196

250,940 236,326 250,940 236,326

Establishment costs:Amortisation of intangible assets 22,322 22,425 22,322 22,425 Cleaning, maintenance and security 5,977 4,144 5,977 4,144 Computerisation cost 39,434 36,297 39,434 36,297 Depreciation of property and equipment 8,489 9,794 8,489 9,794 Depreciation of right-of-use 13,938 - 13,938 - Rental of premises 4,383 19,583 4,383 19,583 Finance cost:- Lease liabilities 2,112 - 2,112 -

- Provision for reinstatement for leased properties 101 - 101 -

Others 7,385 8,083 7,385 8,083 104,141 100,326 104,141 100,326

Marketing and communication expenses:Advertising, marketing and communication 10,325 5,234 10,325 5,234 Commission 2,091 2,163 2,091 2,163 Others 1,626 1,660 1,626 1,660

14,042 9,057 14,042 9,057

Administration and general expenses:Bank charges 1,982 1,984 1,982 1,984 Insurance 790 837 790 837 Professional services 13,716 14,480 13,716 14,480 Travelling 974 1,162 974 1,162 Subscriptions and periodicals 358 60 358 60 Others 7,065 10,803 7,065 10,803

24,885 29,326 24,885 29,326

Service transfer pricing recovery - net (77,223) (75,989) (77,223) (75,989) 316,785 299,046 316,785 299,046


41

Company No. 8515-D


A22. OTHER OPERATING EXPENSES (CONT'D.)


RM’000 RM’000 RM’000 RM’000Bank

Personnel costs:Medical 4,934 7,087 4,934 7,087 Insurance 6,371 5,986 6,371 5,986 Contributions to Employees' Provident Fund/

PRS 31,253 29,357 31,253 29,357 Salaries, bonuses, allowances and incentives 199,848 192,522 199,848 192,522 Share and options granted under ESS -

charge/(writeback) 1,946 (6,190) 1,946 (6,190) Social security costs 1,596 1,720 1,596 1,720 Recruitment costs 1,408 1,591 1,408 1,591 Training 3,212 2,057 3,212 2,057 Others 372 2,196 372 2,196

250,940 236,326 250,940 236,326

Establishment costs:Amortisation of intangible assets 22,323 22,425 22,323 22,425 Cleaning, maintenance and security 5,965 3,949 5,965 3,949 Computerisation cost 39,434 36,297 39,434 36,297 Depreciation of property and equipment 8,358 9,658 8,358 9,658 Depreciation of right-of-use 13,938 - 13,938 - Rental of premises 4,504 20,082 4,504 20,082 Finance cost:- Lease liabilities 2,112 - 2,112 -

- Provision for reinstatement for leased properties 101 - 101 -

Others 7,313 7,949 7,313 7,949 104,048 100,360 104,048 100,360

Marketing and communication expenses:Advertising, marketing and communication 10,324 5,125 10,324 5,125 Commission 2,091 2,163 2,091 2,163 Others 1,626 1,660 1,626 1,660

14,041 8,948 14,041 8,948

Administration and general expenses:Bank charges 1,981 1,983 1,981 1,983 Insurance 730 840 730 840 Professional services 13,659 14,464 13,659 14,464 Travelling 974 1,162 974 1,162 Subscriptions and periodicals 358 60 358 60 Others 7,059 10,769 7,059 10,769

24,761 29,278 24,761 29,278

Service transfer pricing recovery - net (77,223) (75,989) (77,223) (75,989)

316,567 298,923 316,567 298,923


42

Company No. 8515-D


A23. WRITEBACK OF ALLOWANCE FOR IMPAIRMENT ON LOANS AND ADVANCES



Allowance for impairment on loansand advances (23,669) 63,860 (23,669) 63,860

Impaired loans and advances recovered, net (74,855) (96,859) (74,855) (96,859) (98,524) (32,999) (98,524) (32,999)

Bank

Allowance for impairment on loansand advances (23,677) 63,796 (23,677) 63,796

Impaired loans and advances recovered, net (74,855) (96,859) (74,855) (96,859) (98,532) (33,063) (98,532) (33,063)

A24. IMPAIRMENT (WRITEBACK)/LOSS ON FINANCIAL INVESTMENTS


RM’000 RM’000 RM’000 RM’000

Group

Financial investments at fair value through other comprehensive income (1,362) 4,179 (1,362) 4,179 Financial investments at amortised cost 11 142 11 142

(1,351) 4,321 (1,351) 4,321

Bank

Financial investments at fair value through other comprehensive income (1,366) 4,179 (1,366) 4,179 Financial investments at amortised cost 11 142 11 142

(1,355) 4,321 (1,355) 4,321

Individual Quarter

Cumulative Quarter

Cumulative Quarter

Individual Quarter

43

Company No. 8515-D


A25. IMPAIRMENT LOSS/(WRITEBACK) ON OTHER FINANCIAL ASSETS


RM’000 RM’000 RM’000 RM’000

Group

Cash and short-term funds (470) (642) (470) (642) Deposits and placements with banks and other financial institutions (672) 332 (672) 332 Investment account placement 97 (1,053) 97 (1,053) Other assets - (1,427) - (1,427)

(1,045) (2,790) (1,045) (2,790)

Bank

Cash and short-term funds (470) (642) (470) (642) Deposits and placements with banks and other financial institutions (672) 332 (672) 332 Investment account placement 97 (1,053) 97 (1,053) Other assets (5) (1,427) (5) (1,427)

(1,050) (2,790) (1,050) (2,790)


44

Company No. 8515-D


A26. EARNINGS PER SHARE ("EPS")

Basic/Diluted


Group

Net profit attributable to shareholder of the Bank (RM'000) 267,080 219,842 267,080 219,842

Number of ordinary shares at beginning of the financial period ('000) 836,853 820,364 836,853 820,364 Effect of issuance of new ordinary shares ('000) - 545 - 545 Weighted average number of ordinary shares in issue at the end of the financial period ("000) 836,853 820,909 836,853 820,909

Basic/diluted earnings per share (sen) 31.91 26.78 31.91 26.78

Bank

Net profit attributable to shareholder of the Bank (RM'000) 266,301 219,028 266,301 219,028

Number of ordinary shares at beginning of the financial period ('000) 836,853 820,364 836,853 820,364 Effect of issuance of new ordinary shares ('000) - 545 - 545 Weighted average number of ordinary shares in issue at the end of the financial period ("000) 836,853 820,909 836,853 820,909

Basic/diluted earnings per share (sen) 31.82 26.68 31.82 26.68

A27. BUSINESS SEGMENT ANALYSIS

The Group comprises the following main business segments:

(a) Retail Banking

Retail Banking continues to focus on building mass affluent, affluent and small business customers. Retail Bankingoffers products and financial solutions which includes auto finance, mortgages, personal loans, credit cards, smallbusiness loans, priority banking services, wealth management, remittance services and deposits.

The basic earning per share is calculated by dividing the net profit attributable to equity holder of the Bank by the weightedaverage number of ordinary shares in issue during the period.

Individual Quarter

Segment information is presented in respect of the Group’s business segments. The business segment information isprepared based on internal management reports, which are regularly reviewed by the Chief Operating Decision Maker inorder to allocate resources to a segment and to assess its performance.

Cumulative Quarter

45

Company No. 8515-D


A27. BUSINESS SEGMENT ANALYSIS (CONT'D.)

The Group comprises the following main business segments (Cont'd.):

(b) Business Banking

(c) Wholesale Banking

(i) Corporate Banking

(ii) Group Treasury and Markets

(d) Investment Banking

(e) Group Funding and Others

Note:

(i)

(ii)

Business Banking (“BB”) focuses on the small and medium sized enterprises segment, which comprises EnterpriseBanking and Commercial Banking. Solutions offered to Enterprise Banking customers encompass CapitalExpenditure (“CAPEX”) financing, Working Capital financing and Cash Management, and while Commercial Bankingoffers the same suite of products, it also provides more sophisticated structures such as Contract Financing,Development Loans, and Project Financing. Previously, Business Banking was not included as a reportable segmentand included in Wholesale Banking division in view of its contribution to the Group in terms of revenue, profit and totalassets.

Group Funding and Others comprise activities to maintain the liquidity of the Group as well as support operations ofits main business units and non-core operations of the Group.

The revenue generated by a majority of the operating segments substantially comprises of finance income. The ChiefOperating Decision Maker relies primarily on the net finance income information to assess the performance of, and tomake decisions about resources to be allocated to these operating segments.

The financial information by geographical segment is not presented as the Group's activities are principally conductedin Malaysia.

Under the Investment Banking division of AmBank, the core products are capital markets group, private banking andequity markets.

Capital Markets focused on providing integrated financing solutions to our corporate and institutional clients. It offers afull suite of customised debt and capital financing solutions which include corporate bond issuances, loan syndication,structured finance, capital and project advisory services and primary syndication and underwriting services. PrivateBanking primarily services high net worth clients and offers financing and deposit products. Equity markets offersmargin financing to retail and corporate clients.

Wholesale Banking comprises Corporate Banking and Group Treasury and Markets.

Corporate Banking offers a full range of products and services of corporate lending, trade finance, offshorebanking, and cash management solutions to wholesale banking clients.

Group Treasury and Markets includes proprietary trading as well as providing full range of products andservices relating to treasury activities, including foreign exchange, derivatives, fixed income and structuredwarrants. It also offers customised investment solutions for customers.

46

Company No. 8515-D



Group TreasuryGroup Retail Business Corporate and Investment For the financial period ended Banking Banking Banking Markets Banking Total30 June 2019 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

External revenue 616,963 122,262 323,621 295,273 17,032 23,551 1,398,702 Revenue from other segments (29,636) (22,893) (155,315) 95,617 (5,796) 118,023 - Total operating revenue 587,327 99,369 168,306 390,890 11,236 141,574 1,398,702

Net interest income 216,860 50,009 109,479 39,745 6,194 22,293 444,580 Other operating income 52,784 17,629 31,763 29,353 1,023 11,381 143,933 Income 269,644 67,638 141,242 69,098 7,217 33,674 588,513 Other operating expenses (156,400) (31,518) (40,844) (15,903) (1,742) (70,378) (316,785) of which:

Depreciation of property and equipment (4,639) (173) (262) (34) (1) (3,380) (8,489) Depreciation of right-of-use - - - - - (13,938) (13,938) Amortisation of intangible assets (4,136) (19) (1,466) (319) - (16,382) (22,322)

Profit/(Loss) before impairment losses 113,244 36,120 100,398 53,195 5,475 (36,704) 271,728 Writeback of allowance/(provision) for impairment on loans and advances (31,750) (10,817) 140,560 - 524 7 98,524 Writeback of provision/(provision) for commitments and contingencies (2,673) 5,314 (16,153) - - 6 (13,506) Impairment (loss)/writeback on other assets 5 - 32 2,368 - (9) 2,396 Other recoveries 1 - - - - - 1 Profit/(loss) before taxation 78,827 30,617 224,837 55,563 5,999 (36,700) 359,143 Taxation (18,919) (6,886) (53,650) (12,360) (1,072) 824 (92,063) Profit/(loss) for the financial period 59,908 23,731 171,187 43,203 4,927 (35,876) 267,080

Other information

Total segment assets 43,005,275 6,830,792 21,913,878 33,088,293 1,570,084 3,374,751 109,783,073 Total segment liabilities 38,665,015 4,787,596 5,866,662 39,780,825 824,930 10,253,443 100,178,471 Cost to income ratio 58.0% 46.6% 28.9% 23.0% 24.1% >100.0% 53.8%Gross loans and advances 42,588,888 6,888,846 20,975,816 - 1,354,431 (82,202) 71,725,779 Net loans and advances 42,028,419 6,826,340 20,854,590 - 1,354,431 (82,122) 70,981,658 Impaired loans and advances 627,526 137,926 298,991 - - - 1,064,443 Total deposits 37,916,851 4,703,325 5,681,748 32,648,605 821,771 23,936 81,796,236 Additions to: Property and equipment 3,317 138 221 - - 1,181 4,857 Intangible assets 5,654 14 108 544 - 9,206 15,526

Group Funding and Others

Wholesale Banking

47

Company No. 8515-D



Group TreasuryGroup Retail Business Corporate and Investment For the financial period ended Banking Banking Banking Markets Banking Total30 June 2018 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

External revenue 617,362 102,929 339,189 181,251 18,651 20,362 1,279,744 Revenue from other segments (51,510) (21,890) (155,463) 101,598 (7,901) 135,166 - Total operating revenue 565,852 81,039 183,726 282,849 10,750 155,528 1,279,744

Net interest income 208,781 42,389 106,391 20,903 6,417 38,457 423,338 Other operating income 60,632 16,259 54,925 9,338 867 6,325 148,346 Income 269,413 58,648 161,316 30,241 7,284 44,782 571,684 Other operating expenses (166,549) (27,154) (34,645) (16,468) (2,517) (51,713) (299,046) of which:

Depreciation of property and equipment (5,692) (114) (165) (88) (8) (3,727) (9,794) Amortisation of intangible assets (3,828) (12) (432) (805) - (17,348) (22,425)

Profit before impairment losses 102,864 31,494 126,671 13,773 4,767 (6,931) 272,638 Writeback of allowance/(provision) for impairment on loans and advances (23,055) (2,580) 56,126 - 5,553 (3,045) 32,999 Writeback of provision/(provision) for commitments and contingencies (233) 239 (10,246) - - - (10,240) Impairment (loss)/writeback on other assets 840 - 544 (2,343) - (572) (1,531) Other recoveries 22 - - - - 240 262 Profit before taxation 80,438 29,153 173,095 11,430 10,320 (10,308) 294,128 Taxation (19,305) (6,125) (39,881) (2,456) (2,131) (4,388) (74,286) Profit for the financial period 61,133 23,028 133,214 8,974 8,189 (14,696) 219,842

Other information

Total segment assets 42,202,695 5,571,962 21,803,089 23,726,689 1,753,295 3,621,132 98,678,862 Total segment liabilities 38,954,592 3,515,773 6,054,515 30,136,679 801,580 10,201,022 89,664,161 Cost to income ratio 61.8% 46.3% 21.5% 54.5% 34.6% >100.0% 52.3%Gross loans and advances 41,731,365 5,610,050 21,045,288 - 1,348,188 (89,463) 69,645,428 Net loans and advances 41,197,994 5,568,509 20,700,610 - 1,348,188 (115,276) 68,700,025 Impaired loans and advances 534,528 122,815 515,873 - - - 1,173,216 Total deposits 38,316,008 3,462,759 5,790,238 28,275,602 796,674 33,407 76,674,688 Additions to: Property and equipment 3,197 406 128 4 - 877 4,612 Intangible assets 2,477 3 4,585 - - 15,178 22,243

Group Funding and Others

Wholesale Banking

48

Company No. 8515-D


A28. PERFORMANCE REVIEW FOR THE PERIOD ENDED 30 JUNE 2019

A29. PROSPECTS FOR FINANCIAL YEAR ENDING 31 MARCH 2020

In the opinion of the Directors, the results of operations of the Group and the Bank for the financial period have not beensubstantially affected by any items, transaction or event of a material and unusual nature.

The Group and the Bank remained well capitalised with risk weighted capital adequacy ratios of 16.662% and 16.533%respectively.

The increase had partially offset by higher other operating expenses, lower other operating income and higher provision forcommitments and contigencies.

The Group's ratio of impaired loans and advances slightly higher at 1.48% from 1.45% as at 31 March 2019. Loan losscoverage remained consistently above 100.0%.

The Group reported a profit before taxation of RM267.1 million for the financial quarter ended 30 June 2019 compared toRM219.8 million in the corresponding period in the previous financial year.

The increase in Group's profit before taxation for the period is attributable to writeback of allowances for impairment onloans and advances and financial investments. Net interest income improved from assets growth despite higher interestexpense from deposits placed from customers.

Banks have sufficient liquid assets with an industry liquidity coverage ratio of 153% as at end of June 2019, well above theregulatory requirement of 100.0%. Funding profiles of banks have been well diversified with the industry's loan-to-fund ratioand loan-to-fund and equity ratio standing at 82.6% and 72.2% respectively as at June 2019.

The economy expanded by 4.9% year-on-year during the second quarter of 2019, supported by sustained domesticdemand. The economy is projected to grow at 4.5% for the full year of 2019, with an upside of 4.7% while the downside togrowth is at 4.0%. Domestic demand will be the mainstay of 2019’s growth with private consumption taking the lead. Privateconsumption will also be supported by steady wage growth plus benign inflation environment and cheap financing cost.Though our base case is 4.5%, the downside risk to growth remains high in view of the current external headwinds, addedwith domestic noises.

Inflation in the first seven months of 2019 rose 0.3% year-on-year while the core inflation for the same period was at +0.8%year-on-year. With underlying inflation on a soft trend, we believe our 1% inflation target for 2019 could be overestimated.However, the low base in the second half of 2019 may provide some upside pressure to the inflation data.

In 2018, the banking system's loans expanded by 7.7%. For 2019, loans is projected to grow around 4.6% based on ourview that Gross Domestic Product will continue to expand by 4.5%.

The decision to cut the Overnight Policies rate ("OPR") by 25bps by Bank Negara Malaysia ("BNM") to 3.00% fell withinexpectation. While our broad view suggests the policy rate will remain unchanged at 3.00% for the rest of the year, there isstill room for BNM to reduce the OPR further by another 25bps in 2H2019. Much will depend on: (1) how the domesticeconomy crafts out; (2) outlook of the potential inflation; and (3) dynamics of the global economic scenario.

49

Company No. 8515-D


A29. PROSPECTS FOR FINANCIAL YEAR ENDING 31 MARCH 2020 (CONT'D.)

For FY2020, our financial priorities will be centred on the following:

1.

2.

3.

4.

A30. VALUATION OF PROPERTY AND EQUIPMENT

A31. CHANGES IN THE COMPOSITION OF THE GROUP

A32.

The Group’s and the Bank’s property and equipment are stated at cost less accumulated depreciation and accumulatedimpairment losses.

EVENT AFTER THE REPORTING PERIOD

Other than those disclosed in Note A6, there has not arisen in the interval between the end of the financial period and thedate of this report any items, transaction or event of a material and unusual nature likely, in the opinion of the directors, toaffect substantially the results of the operations of the Group and the Bank for the current financial period.

Revenue growth: We will continue to drive our income growth momentum, in line with our key segments and productsstrategies, especially in the areas of transaction banking, foreign exchange, SME and wealth management.

There were no significant changes in the composition of the Group for the financial quarter ended 30 June 2019.

Business efficiency transformation (BET 300): Moving into the third year of our BET300 programme, we will continueto maintain a tight rein on cost and pacing our investments while driving operational efficiencies through digitalisationand streamlining of processes.

Capital accretive growth: We aim to further strengthen our capital position and deliver sustainable dividend payout toour shareholders, focusing on managing returns on capital employed and risk-weighted assets.

Digital Banking: We aim to provide digital solutions that seamlessly integrate into and improve customers' day-to-daylives. Our digital transformation investment plan in FY2020 will continue to pave way for the digitalisation of ourproducts and solutions, focus on enhancing digital mobile platform, building infrastructure and applicationprogramming interface readiness, partnerships with key financial technology players and the use of big data analyticsto capture alternative sources of business and drive internal efficiencies.

50

Company No. 8515-D


A33. COMMITMENTS AND CONTINGENCIES

The principal/notional amounts of the commitments and contingencies of the Group and the Bank are as follows:


RM’000 RM’000 RM’000 RM’000

ContingenciesDirect credit substitutes 2,307,767 2,038,003 2,307,767 2,038,003 Transaction related contingent items 4,459,120 4,564,609 4,459,120 4,564,609 Short term self liquidating trade related contingencies 834,692 809,932 834,692 809,932 Obligations under on-going underwriting agreements - 100,000 - 100,000

7,601,579 7,512,544 7,601,579 7,512,544

CommitmentsOther commitments, such as formal standby facilities and credit lines, with an original maturity of up to one year 12,623,225 12,490,756 12,691,385 12,555,340 Other commitments, such as formal standby facilities and credit lines, with an original maturity of over one year 2,154,117 2,463,522 2,154,117 2,463,522 Unutilised credit card lines 3,698,628 3,840,372 3,698,628 3,840,372 Forward asset purchase 546,033 1,397,583 546,033 1,397,583 Others - - 50 50

19,022,003 20,192,233 19,090,213 20,256,867

Derivative Financial InstrumentsForeign exchange related contracts

- One year or less 32,994,432 36,424,866 32,994,432 36,424,866 - Over one year to five years 3,678,950 3,748,430 3,678,950 3,748,430 - Over five years 1,391,939 1,387,868 1,391,939 1,387,868

Interest rate related contracts - One year or less 6,432,490 7,320,942 6,432,490 7,320,942 - Over one year to five years 36,233,330 35,809,669 36,233,330 35,809,669 - Over five years 8,848,339 10,450,221 8,848,339 10,450,221

Credit related contracts- Over one year to five years 347,448 345,108 347,448 345,108

Equity and commodity related contracts- One year or less 857,040 860,040 857,040 860,040 - Over one year to five years 872,092 190,657 872,092 190,657

91,656,060 96,537,801 91,656,060 96,537,801

Total 118,279,642 124,242,578 118,347,852 124,307,212

BankGroup

In the normal course of business, the Group and the Bank make various commitments and incur certain contingent liabilitieswith legal recourse to its customers. No material losses are anticipated as a result of these transactions. The commitmentsand contingencies are not secured against the Group’s and the Bank’s assets.

51

Company No. 8515-D


A34. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS

Determination of fair value and fair value hierarchy

The Group and the Bank use the following hierarchy for determining and disclosing the fair value of financial instruments byvaluation technique:

Level 1:

Financial assets and liabilities measured using valuation techniques based on assumptions that are supported by prices fromobservable current market transactions are assets and liabilities for which pricing is obtained via pricing services, but whereprices have not been determined in an active market, financial assets with fair values based on broker quotes, investments inprivate equity funds with fair values obtained via fund managers and assets that are valued using the Group’s own modelswhereby the majority of assumptions are market observable.

Non market observable inputs means that fair values are determined, in whole or in part, using a valuation technique (model)based on assumptions that are neither supported by prices from observable current market transactions in the sameinstrument, nor are they based on available market data. The main asset classes in this category are unlisted equityinvestments and debt instruments. Valuation techniques are used to the extent that observable inputs are not available,thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.However, the fair value measurement objective remains the same, that is, an exit price from the perspective of the Groupand the Bank. Therefore, unobservable inputs reflect the Group’s and the Bank's own assumptions about the assumptionsthat market participants would use in pricing the asset or liability (including assumptions about risk). These inputs aredeveloped based on the best information available, which might include the Group’s and the Bank's own data.

About 2.0% and 2.1% of the Group's and the Bank's (31 March 2019: 2.2% and 2.3% of the Group's and the Bank's) totalfinancial assets recorded at fair value, are based on estimates and recorded as Level 3 investments. Where estimates areused, these are based on a combination of independent third-party evidence and internally developed models, calibrated tomarket observable data where possible. While such valuations are sensitive to estimates, it is believed that changing one ormore of the assumptions to reasonably possible alternative assumptions would not change the fair value significantly.

quoted prices (unadjusted) in active markets for identical assets or liabilities;Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable,

either directly or indirectly;Level 3: techniques which use inputs which have a significant effect on the recorded fair value that are not based on

observable market data.

52

Company No. 8515-D


A34. FAIR VALUE MEASUREMENTS OF FINANCIAL INSTRUMENTS (CONT'D.)

(a)

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalRM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

30 June 2019

Financial assets measured at fair value

Derivative financial assets - 892,381 - 892,381 - 892,381 - 892,381 Financial assets at fair value through profit or loss - Money market securities - 8,404,881 - 8,404,881 - 8,404,881 - 8,404,881 - Shares 360,908 - 45 360,953 360,904 - - 360,904 - Unit trust 22,507 - - 22,507 22,507 - - 22,507 - Quoted sukuk - 38,064 - 38,064 - 38,064 - 38,064 - Unquoted corporate bonds and sukuk - 1,402,447 - 1,402,447 - 1,402,447 - 1,402,447 Financial investments at fair value through other comprehensive income - Money market securities - 7,017,724 - 7,017,724 - 7,017,724 - 7,017,724 - Shares - - 519,078 519,078 - - 519,078 519,078 - Unit trust 92,662 - - 92,662 92,662 - - 92,662 - Unquoted corporate bonds and sukuk - 6,751,005 - 6,751,005 - 6,751,005 17,621 6,768,626

476,077 24,506,502 519,123 25,501,702 476,073 24,506,502 536,699 25,519,274

Financial liabilities measured at fair valueDerivative financial liabilities 2,783 889,405 - 892,188 2,783 889,405 - 892,188

The following tables show the Group's and the Bank's financial instruments that are measured at fair value at the reporting date analysed by levels within the fair value hierarchy.

Group BankValuation technique Valuation technique

53

Company No. 8515-D



(a)

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 TotalRM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000 RM'000

31 March 2019

Financial assets measured at fair valueDerivative financial assets 655 777,030 - 777,685 655 777,030 - 777,685 Financial assets at fair value through profit or loss - Money market securities - 9,193,308 - 9,193,308 - 9,193,308 - 9,193,308 - Shares 317,555 - 45 317,600 317,552 - - 317,552 - Unit trust 22,616 - - 22,616 22,616 - - 22,616 - Quoted sukuk - 37,937 - 37,937 - 37,937 - 37,937 - Unquoted corporate bonds and sukuk - 1,075,374 - 1,075,374 - 1,075,374 - 1,075,374 Financial investments at fair value through other comprehensive income - Money market securities - 5,567,505 - 5,567,505 - 5,567,505 - 5,567,505 - Shares - - 519,064 519,064 - - 519,064 519,064 - Unit trust 98,167 - - 98,167 98,167 - - 98,167 - Unquoted corporate bonds and sukuk - 6,225,474 - 6,225,474 - 6,225,474 20,897 6,246,371

438,993 22,876,628 519,109 23,834,730 438,990 22,876,628 539,961 23,855,579

Financial liabilities measured at fair valueDerivative financial liabilities 1,297 825,572 - 826,869 1,297 825,572 - 826,869

Group Bank

There were no transfers between Level 1 and Level 2 during the current financial period and previous financial year for the Group and the Bank.

The following tables show the Group's and the Bank's financial instruments that are measured at fair value at the reporting date analysed by levels within the fair value hierarchy (Cont'd.).

Valuation technique Valuation technique

54

Company No. 8515‐D

AmBank (M) Berhad

(Incorporated in Malaysia)

And Its Subsidiaries


Movements In Level 3 financial instruments measured at fair value

Equity Equityinstruments instruments

at FVTPL at FVOCI TotalRM'000 RM'000 RM'000

Group

At 31 March 2019 45 519,064 519,109 Exchange fluctuation taken up in statement

of profit or loss - 14 14 At 30 June 2019 45 519,078 519,123

Debt Equityinstruments instruments

at FVOCI at FVOCI TotalRM'000 RM'000 RM'000

Bank

At 31 March 2019 20,897 519,064 539,961 Settlement (3,380) - (3,380) Total losses recognised in other comprehensive income 104 - 104 Exchange fluctuation taken up in statement

of profit or loss - 14 14 At 30 June 2019 17,621 519,078 536,699


RM'000 RM'000 RM'000 RM'000

Financial investments at FVOCITotal losses included in: - other comprehensive income - - 104 391 - profit or loss 14 (22) 14 (22)

Changing one or more of the inputs to reasonable alternative assumptions would not change the value significantly for thefinancial assets in Level 3 of the fair value hierarchy.

The level of the fair value hierarchy of financial instruments is determined at the beginning of each reporting period. The followingtables show the reconciliation of the opening and closing amounts of Level 3 financial assets which are recorded at fair value:

Total gains or losses included in the statements of profit or loss and statements of comprehensive income for financialinstruments held at the end of reporting period:

Group Bank

There were no transfers between Level 2 and Level 3 during the current financial period and previous financial year for the Groupand the Bank.

Impact on fair value of Level 3 financial instruments measured at fair value arising from changes to key assumptions.

55

Company No. 8515-D


A35. CAPITAL ADEQUACY

(a) The capital adequacy ratios of the Group and the Bank are as follows:

Group Bank

30 June 2019

Common Equity Tier 1 ("CET 1") Capital Ratio 11.386% 11.272%Tier 1 Capital Ratio 12.039% 11.923%Total Capital Ratio 16.662% 16.533%

31 March 2019

Before deducting proposed dividendsCET 1 Capital Ratio 11.868% 11.752%Tier 1 Capital Ratio 12.524% 12.406%Total Capital Ratio 17.169% 17.038%

After deducting proposed dividendsCommon Equity Tier 1 ("CET 1") Capital Ratio 11.437% 11.323%Tier 1 Capital Ratio 12.094% 11.977%Total Capital Ratio 16.739% 16.609%

Notes:

(i)

(ii)

(a)(b)

CCBCalendar year 2016 0.625%Calendar year 2017 1.25%Calendar year 2018 1.875%Calendar year 2019 onwards 2.5%

a Countercyclical Capital Buffer ("CCyB") determined as the weighted-average of the prevailing CCyB ratesapplied in the jurisdictions in which the Bank has credit exposures.

The CCB requirements shall be phased-in under transitional arrangements starting from 1 January 2016 as follows:

Pursuant to the above BNM's guideline on Capital Adequacy Framework (Capital Components), the minimum capitaladequacy ratios to be maintained under the guideline are at 4.5% for CET 1 capital, 6% for Tier 1 capital and 8% fortotal capital ratio. Banking Institutions are also required to maintain capital buffers. The capital buffers shall comprisethe sum of the following:

a Capital Conservation Buffer ("CCB") of 2.5%; and

The capital adequacy ratios are computed in accordance to BNM's guidelines on Capital Adequacy Framework(Capital Components) issued by Bank negara Malaysia on 2 February 2018, which is based on the Basel III capitalaccord. The Group and the Bank have adopted the Standardised Approach for Credit and Market Risks and the BasicIndicator Approach for Operational Risk, based on BNM's Guidelines on Capital Adequacy Framework (Basel II - RiskWeighted Assets).

56

Company No. 8515-D


A35. CAPITAL ADEQUACY (CONT'D.)

(b) The components of CET 1, Additional Tier 1, Tier 2 and Total Capital of the Group and the Bank are as follows:


RM’000 RM’000 RM’000 RM’000CET 1 Capital

Share Capital 1,940,465 1,940,465 1,940,465 1,940,465 Retained earnings 6,548,952 6,957,622 6,606,170 7,014,840 Fair value reserve 306,143 245,666 306,532 245,836 Foreign currency translation reserve 84,385 81,246 88,241 85,109 Regulatory reserve 371,222 280,556 371,222 280,556 Merger reserve 104,149 104,149 - - Cash flow hedging deficit (17,956) (12,074) (17,956) (12,074)

Less: Regulatory adjustments applied on CET 1 Capital

- Intangible assets (358,854) (368,654) (358,854) (368,654) - Deferred tax assets (6,668) (57,636) (6,741) (57,589) - 55% of cumulative gains

of fair value reserve (168,379) (135,116) (168,593) (135,210) - Cash flow hedging reserve/(deficit) 17,956 12,074 17,956 12,074 - Regulatory reserve attributable

to loans (371,222) (280,556) (371,222) (280,556) - Investment in ordinary shares of unconsolidated financial entities - - (8,488) (8,488)

Total CET 1 Capital 8,450,193 8,767,742 8,398,732 8,716,309

Additional Tier 1 CapitalAdditional Tier 1 Capital instruments (subject to gradual phase-out treatment) 485,000 485,000 485,000 485,000 Qualifying CET 1, Additional Tier 1 capital

instruments held by third parties 3 3 - - Total Tier 1 Capital 8,935,196 9,252,745 8,883,732 9,201,309

Tier 2 CapitalTier 2 Capital instruments meeting all

relevant criteria for inclusion 2,595,000 2,595,000 2,595,000 2,595,000 Qualifying CET 1, Additional Tier 1 and Tier 2

capital instruments held by third parties 1 1 - - General provisions* 835,955 836,609 839,831 840,495 Total Tier 2 capital 3,430,956 3,431,610 3,434,831 3,435,495

Total Capital 12,366,152 12,684,355 12,318,563 12,636,804

The breakdown of the risk-weighted asets ("RWA") in various categories of risk is as follows:


RM’000 RM’000 RM’000 RM’000

Credit RWA 66,876,417 66,928,716 67,186,517 67,239,575 Market RWA 2,710,943 2,358,954 2,710,345 2,358,358 Operational RWA 4,094,563 4,059,205 4,074,833 4,037,878 Large exposure risk RWA for equity holdings 535,978 531,402 535,978 531,402 Total RWA 74,217,901 73,878,277 74,507,673 74,167,213

Group Bank

Group Bank

* Consists of stage 1 and stage 2 loss allowances and regulatory reserve.

57

Company No. 8515-D


A36.

(a) Adoption of MFRS 16

The adoption of MFRS 16 resulted in the following financial effects as summarised below:

(i) Reconciliation of statements of financial position of the Group and the Bank

31 March Effect of adoption 1 April2019 of MFRS 16 2019

RM’000 RM’000 RM’000GroupRight-of-use assets - 271,968 271,968 Other liabilities 2,565,967 271,968 2,837,935

BankRight-of-use assets - 271,968 271,968 Other liabilities 2,553,750 271,968 2,825,718

(ii) The recognised right-of-use assets relate to the following types of assets:

Group and BankRM'000

Properties 271,968

(iii) The capital adequacy ratios of the Group and the Bank

31 March Effect of adoption 1 April2019 of MFRS 16 2019

Group

CET 1 Capital (RM'000) 8,767,742 - 8,767,742 Tier 1 Capital (RM'000) 9,252,745 - 9,252,745 Total Capital (RM'000) 12,684,355 3,400 12,687,755 Risk weighted assets (RM'000) 73,878,277 271,968 74,150,245

Before deducting proposed dividendsCET 1 Capital Ratio (%) 11.868 (0.044) 11.824 Tier 1 Capital Ratio (%) 12.524 (0.046) 12.478 Total Capital Ratio (%) 17.169 (0.058) 17.111

After deducting proposed dividendsCET 1 Capital Ratio (%) 11.437 (0.042) 11.395 Tier 1 Capital Ratio (%) 12.094 (0.044) 12.050 Total Capital Ratio (%) 16.739 (0.057) 16.682

FINANCIAL IMPACT ARISING FROM ADOPTION OF MFRS 16 LEASES AND RESTATEMENT OF COMPARATIVEINFORMATION

58

Company No. 8515-D


A36.

(a) Adoption of MFRS 16 (Cont'd.)

(iii) The capital adequacy ratios of the Group and the Bank (Cont'd.)

Bank

CET 1 Capital (RM'000) 8,716,309 - 8,716,309 Tier 1 Capital (RM'000) 9,201,309 - 9,201,309 Total Capital (RM'000) 12,636,804 3,400 12,640,204 Risk weighted assets (RM'000) 74,167,213 271,968 74,439,181

Before deducting proposed dividendsCET 1 Capital Ratio (%) 11.752 (0.043) 11.709 Tier 1 Capital Ratio (%) 12.406 (0.045) 12.361 Total Capital Ratio (%) 17.038 (0.058) 16.980

After deducting proposed dividendsCET 1 Capital Ratio (%) 11.323 (0.041) 11.282 Tier 1 Capital Ratio (%) 11.977 (0.044) 11.933 Total Capital Ratio (%) 16.609 (0.056) 16.553

(b) Restatement of comparative information

FINANCIAL IMPACT ARISING FROM ADOPTION OF MFRS 16 LEASES AND RESTATEMENT OF COMPARATIVEINFORMATION (CONT'D.)

During the current financial quarter, the Group and the Bank conducted a review of the reporting of its impaired loansand advances portfolio. The review did not result in any changes to impaired loans and advances balances orimpairment allowances for loans and advances except for certain amendments in disclosure of impaired loans andadvances by sector as at 31 March 2019 as reflected in the restated disclosure in Note A14(h).

59

Documents

AmBank (M) Berhad · Operating profit 270,654 271,402 270,654 271,402 Writeback of allowance for impairment on loans and advances A23 98,532 33,063 98,532 33,063