RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
UNAUDITED INTERIM FINANCIAL STATEMENTS
STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2011
Note
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
1,574,950
40,140
395,588
1,921,267
1,085,612
11,352,817
32,252
2,289
349,440
39,810
19,628
1,076,905
40,062
218,928
1,787,265
1,073,159
8,713,761
42,830
1,369
105,140
30,854
21,547
16,813,793
13,111,820
11,384,102
4,213,348
27,488
626
148,394
6,169
9,946,582
2,066,993
12,124
101,286
170
15,780,127
12,127,155
523,424
510,242
1,033,666
523,424
461,241
984,665
16,813,793
13,111,820
4,444,866
3,519,220
ASSETS
Cash and short-term funds
Deposits and placements with banks and other financial institutions
Financial assets held-for-trading
Financial investments available-for-sale
Financial investments held-to-maturity
Financing and advances
Other assets
Derivative assets
Statutory deposits with Bank Negara Malaysia
Deferred tax assets
Property, plant and equipment
8
9
10
11
12
TOTAL ASSETS
LIABILITIES AND EQUITY
13
14
Deposits from customers
Deposits and placements of banks and other financial institutions
Bills and acceptances payable
Derivative liabilities
Other liabilities
Taxation
15
TOTAL LIABILITIES
Ordinary share capital
Reserves
TOTAL EQUITY
TOTAL LIABILITIES AND EQUITY
COMMITMENTS AND CONTINGENCIES
This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Bank for the financial
year ended 31 December 2010.
1
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
UNAUDITED INTERIM FINANCIAL STATEMENTS
INCOME STATEMENT
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Individual Quarter
Note
Cumulative Six Months
Current
Financial
Quarter Ended
30.06.2011
RM'000
Preceeding
Corresponding
Quarter Ended
30.06.2010
RM'000
Current
Financial Half
Year Ended
30.06.2011
RM'000
Preceeding
Corresponding
Half Year
Ended
30.06.2010
RM'000
Income derived from investment of depositors' funds
Income derived from investment of shareholder's funds
Allowance for impairment on financing and advances
Profit equalisation reserve
Total distributable income
16
17
18
155,340
11,489
(7,960)
(10,947)
147,922
116,725
15,933
(14,483)
(5,298)
112,877
301,076
30,948
(24,071)
(15,387)
292,566
218,180
29,426
(50,159)
(972)
196,475
Income attributable to depositors
19
(79,929)
67,993
(46,728)
66,149
(150,281)
142,285
(89,287)
107,188
Personnel expenses
Other overheads and expenditures
Profit before taxation
(15,784)
(20,884)
31,325
(14,487)
(21,928)
29,734
(31,562)
(42,258)
68,465
(30,415)
(44,208)
32,565
Taxation
Net profit for the financial period
(8,419)
22,906
(7,434)
22,300
(17,908)
50,557
(8,141)
24,424
Basic earnings per share (sen)
4.38
4.26
9.66
4.67
This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Bank for the financial year
ended 31 December 2010.
2
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
UNAUDITED INTERIM FINANCIAL STATEMENTS
STATEMENT OF COMPREHENSIVE INCOME
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Individual Quarter
Cumulative Six Months
Current
Financial
Quarter
Ended
30.06.2011
RM'000
Preceeding
Corresponding
Quarter Ended
30.06.2010
RM'000
Current
Financial
Half Year
Ended
30.06.2011
RM'000
Preceeding
Corresponding
Half Year
Ended
30.06.2010
RM'000
22,906
22,300
50,557
24,424
6,383
2,036
1,810
1,192
(2,863)
(1,762)
(3,838)
(1,762)
(880)
(72)
Net profit for the financial period
Other comprehensive income/(loss):
Financial investments available-for-sale
- Unrealised net gain on revaluation
- Net transfer to income statement on disposal
or impairment
Income tax relating to components of other
comprehensive (loss)/income
Other comprehensive income/(loss) for the financial period
Total comprehensive income for the financial period
2,640
202
25,546
22,502
472
(1,556)
49,001
135
(435)
23,989
This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Bank for the financial year
ended 31 December 2010.
3
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
UNAUDITED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Share capital
RM'000
Balance as at 1 January 2011
Non distributable
Statutory
AFS
reserve
reserves
RM'000
RM'000
Distributable
Retained
profits
RM'000
Total
RM'000
523,424
231,484
7,386
222,371
984,665
Net profit for the financial period
-
-
-
50,557
50,557
Other comprehensive income/(loss):
Financial investments available-for-sale
- Unrealised net profit /(loss) on revaluation
-
-
1,810
-
1,810
- Net transfer to income statement on disposal or impairment
-
-
(3,838)
-
(3,838)
Income tax relating to components of other comprehensive loss
-
-
Total comprehensive loss for the financial period
-
-
523,424
231,484
Balance as at 30 June 2011
472
-
(1,556)
5,830
272,928
This Interim Financial Statements should be read in conjunction with the Audited Financial Statements for the Bank for the financial year ended 31 December 2010.
4
472
(1,556)
1,033,666
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
UNAUDITED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CHANGES IN EQUITY
FOR THE SIX MONTHS ENDED 30 JUNE 2011
e infrastructure projects under the Economic
In spite of what is expected to be a more challenging second half 2011, the Bank remain cautiously
Distributable
Non distributable
conf i dent t hat t he M al ays i an econom y wi l l cont i nue t o be s uppor t i ve of bus i nes s gr owt h.
Statutory
reserve
RM'000
AFS
reserves
RM'000
Retained
profits
RM'000
Total
RM'000
Balance
as athub
1 January
2010 finance services. The Bank expects to maintain a satisfactory performance
523,424
financial
for Islamic
in 2011. 197,739
- Effect of adoption of FRS 139
523,424
197,739
- As restated
Net profit for the financial period
-
7,127
7,127
-
167,172
21,455
188,627
24,424
895,462
21,455
916,917
24,424
Other comprehensive income/(loss):
Financial investments available-for-sale
- Unrealised net profit /(loss) on revaluation
-
-
1,192
-
1,192
- Net transfer to income statement on disposal or impairment
-
-
(1,762)
-
(1,762)
Income tax relating to components of other comprehensive loss
-
-
135
-
135
Total comprehensive loss for the financial period
-
-
(435)
-
(435)
523,424
197,739
Share capital
RM'000
Balance as at 30 June 2010
6,692
213,051
This Interim Financial Statements should be read in conjunction with the Audited Financial Statements for the Bank for the financial year ended 31 December 2010.
5
940,906
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
UNAUDITED INTERIM FINANCIAL STATEMENTS
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
Six months ended
30.06.2010
30.06.2011
RM'000
RM'000
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation
Adjustment for non-cash items
Operating profit before changes in working capital
Changes in working capital:
Net changes in operating assets
Net changes in operating liabilities
Taxation paid
Net cash generated from/(used in) operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment
Net disposal/(purchase) of financial investments available-for-sale
Net purchase of financial investments held-to-maturity
Income received from financial investments available-for-sale
Income received from financial investments held-to-maturity
Net cash used in investing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents brought forward
Cash and cash equivalents carried forward
68,465
32,565
(26,935)
41,530
(100,570)
(68,005)
(3,057,253)
3,621,274
605,551
(20,393)
585,158
(828,863)
337,340
(559,528)
(15,916)
(575,444)
-
-
(2,704)
(208,170)
(32,001)
27,423
21,093
(194,359)
(2,244)
(132,627)
(10,156)
36,401
21,513
(87,113)
498,045
1,076,905
1,574,950
-
(769,803)
2,562,465
1,792,662
ANALYSIS OF CASH AND CASH EQUIVALENT
Cash and short-term funds
1,574,950
1,792,662
This Interim Financial Statements should be read in conjunction with the Audited Financial Statements of the Bank for the
financial year ended 31 December 2010.
6
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011
1 BASIS OF PREPARATION
The interim financial statements are unaudited and has been prepared in compliance with Financial Reporting Standard ('FRS')
134, 'Interim Financial Reporting' issued by the Malaysian Accounting Standards Board ('MASB') and should be read in
conjunction with the audited financial statements of the Bank for the last financial year ended 31 December 2010.
The accounting policies and presentation adopted by Bank for the interim financial statements are consistent with those adopted
in the audited financial statements for the financial year ended 31 December 2010, except for the adoption of the following
accounting standards, amendments to published accounting standards and interpretations to existing accounting standards which
are effective from 1 January 2011:
- Amendments to FRS 7
- Amendments to IC Interpretation 9
- IC Interpretation 4
- TR i-4
Financial Instruments: Disclosures Improving Disclosures about
Financial Instruments
Non-current Assets Held for Sale and Discontinued Operations
Financial Instruments: Presentation - Classification of Rights
Issues
Reassessment of Embedded Derivatives
Determining Whether an Arrangement contains a Lease
Shariah Compliant Sale Contracts
- Improvements to FRSs (2010)
- FRS 3
- FRS 127
- FRS 101
- FRS 138
- IC Interpretations 9
- Amendments of FRS 138
- Amendments of IC Interpretations 9
Business Combination
Consolidated and Separate Financial Statements
Presentation of Financial Statements
Intangible Assets
Reassessment of Embedded Derivatives
Intangible Assets
Reassessment of Embedded Derivatives
- Amendments to FRS 5
- Amendments to FRS 132
The revised FRS 3 'Business Combinations' (effective prospectively from 1 July 2010) continues to apply the acquisition method
to business combinations, with some significant changes. For example, all payments to purchase a business are to be recorded at
fair value at the acquisition date, with contingent payments classified as debt subsequently re-measured through profit or loss.
There is a choice on an acquisition-by-acquisition basis to measure the non-controlling interest in the acquiree either at fair value
or at the non-controlling interest’s proportionate share of the acquiree’s net assets. All acquisition-related costs should be
expensed.
The revised FRS 127 'Consolidated and Separate Financial Statements' (applies prospectively to transactions with noncontrolling interests from 1 July 2010) requires the effects of all transactions with non-controlling interests to be recorded in
equity if there is no change in control and these transactions will no longer result in goodwill or gains and losses. When this
standard is effective, all earnings and losses of the subsidiary are attributed to the parent and the non-controlling interest, even if
the attribution of losses to the non-controlling interest results in a debit balance in the shareholders’ equity. Profit or loss
attribution to non-controlling interests for prior years is not restated. The standard also specifies the accounting when control is
lost. Any remaining interest in the entity is re-measured to fair value, and a gain or loss is recognised in profit or loss.
The adoption of the above accounting standards, amendments to published accounting standards and interpretations to existing
accounting standards does not give rise to any material financial effects to the Bank.
7
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
2 AUDITORS' REPORT
The auditors' report for the financial year ended 31 December 2010 was not subject to any qualification.
3 SEASONAL OR CYCLICAL ITEMS
The business operations of the Bank have not been affected by any material seasonal or cyclical factors.
4 EXCEPTIONAL OR EXTRAORDINARY ITEMS
There were no exceptional or unusual items for the six months ended 30 June 2011.
5 CHANGES IN ESTIMATES
There were no material changes in estimates of amounts reported in prior financial years that have a material effect for the six
months ended 30 June 2011.
6 CHANGES IN DEBT AND EQUITY SECURITIES
There were no issuances and repayments of debt and equity securities, share buy-backs, share cancellations, shares held as
treasury shares and resale of treasury shares for the financial period under review.
7 DIVIDENDS PAID
No dividend has been paid during the six months ended 30 June 2011.
8
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
8 FINANCIAL ASSETS HELD-FOR-TRADING
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
132,139
262,031
1,418
10,066
173,816
-
395,588
35,046
218,928
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
1,163,052
78,140
1,239,535
93,868
679,500
1,920,692
453,287
1,786,690
575
1,921,267
575
1,787,265
At fair value
Money market instruments:
Malaysian government investment issues
BNM monetary notes
Malaysian government treasury bills
Unquoted securities:
In Malaysia
Private debt securities
9 FINANCIAL INVESTMENTS AVAILABLE-FOR-SALE
At fair value
Money market instruments:
Malaysian government investment issues
Islamic accepted bills
Unquoted securities:
In Malaysia
Private debt securities
At cost
Unquoted securities:
In Malaysia
Shares in Islamic Bank and Financial Institutions of Malaysia ('IBFIM')
The carrying value of financial investments available-for-sale as at 30 June 2011, which was transferred from financial assets
held-for-trading in previous year, for the Bank is RM20.2 million (2010 : RM20.3 million)
9
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
10 FINANCIAL INVESTMENTS HELD-TO-MATURITY
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
545,874
193,722
589,168
183,895
346,016
1,085,612
300,096
1,073,159
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
114,612
116,123
2,553,838
662,963
1,960,927
5,337,571
826,738
20,842
10,909
3,798
202,564
11,694,762
2,368,625
898,904
1,625,598
2,902,392
546,820
17,994
11,404
530
547,639
9,036,029
(161,885)
(180,060)
11,352,817
(163,440)
(158,828)
8,713,761
At amortised cost
Money market instruments:
Malaysian government investment issues
Cagamas bonds and Cagamas Mudharabah bonds
Unquoted securities:
In Malaysia
Private debt securities
11 FINANCING AND ADVANCES
(i)
By type
At amortised cost
Cashline
Term financing
- housing financing
- syndicated term financing
- hire purchase recievables
- other term financing
Bills receivables
Trust receipts
Staff financing
Credit/charge cards receivables
Revolving financing
Gross financing and advances
Allowances for bad and doubtful financing:
- individual impairment allowance
- collective impairment allowance
Net financing and advances
10
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
11 FINANCING AND ADVANCES (CONTINUED)
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
47,398
36,751
711,604
2,682,255
3,614,819
4,386,374
335
251,977
11,694,762
712,770
2,667,781
1,516,587
3,814,221
426
287,493
9,036,029
1,564,873
2,789,034
1,732,261
1,382,081
497,768
3,622,259
106,486
11,694,762
1,697,874
2,478,851
1,534,782
1,172,733
530,275
1,524,431
97,083
9,036,029
Fixed rate
- Housing financing
- Hire-purchase receivables
- Other fixed rate financing
1,173,026
1,960,927
4,902,481
1,243,164
1,625,598
3,015,961
Variable rate
- BFR-plus
- Cost-plus
Gross financing and advances
2,813,880
844,448
11,694,762
2,586,524
564,782
9,036,029
(ii) By type of customer
Domestic non-bank financial institutions
- Others
Domestic business enterprise
- Small medium enterprise
- Others
Government and statutory bodies
Individuals
Other domestic entities
Foreign entities
Gross financing and advances
(iii) By type of contract
Bai' Bithaman Ajil ('BBA')
Ijarah
Murabahah
Musyarakah
Istisna'
Bai'Inah
Others
Gross financing and advances
(iv) By profit rate sensitivity
11
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
11 FINANCING AND ADVANCES (CONTINUED)
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
8,590
1,883,040
12,270
1,567,375
2,595,177
190,220
510,430
106,580
3,799
60
489,380
1,845,680
4,061,806
11,694,762
2,439,955
204,703
528,785
14,070
530
80
483,660
1,506,160
2,278,441
9,036,029
1,733,670
356,173
972,417
8,632,502
11,694,762
1,685,198
345,809
1,005,422
5,999,600
9,036,029
628,251
130,594
(15,987)
(3,890)
(118,543)
620,425
478,412
486,779
(43,269)
(293,671)
628,251
(v) By purpose
Purchase of securities
Purchase of transport vehicles
Purchase of landed property:
- Residential
- Non-residential
Purchase of property, plant and equipment other than land and building
Personal use
Credit card
Purchase of consumer durables
Construction
Working capital
Other purposes
Gross financing and advances
(vi) The remaining contractual maturities
Maturing within one year
One to three years
Three to five years
Over five years
Gross financing and advances
(viii) Impaired financing and advances
(a) Movement in gross impaired financing and advances are as follows:
Balance as at the beginning of the financial period/year
Classified as impaired during the financial period/year
Amount recovered
Amount written off
Reclassified as non-impaired during the financial period/year
Balance as at the end of the financial period/year
12
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
11 FINANCING AND ADVANCES (CONTINUED)
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
19,820
16,270
184,710
28,290
71,670
4,240
1,420
308,990
1,285
620,425
202,090
26,820
74,010
4,970
1,530
299,231
3,330
628,251
Individual impairment allowance
Balance as at the beginning of the financial period/year
Allowance made during the financial period/year
Amount recovered
Amount written off
Balance as at the end of the financial period/year
163,440
2,233
(3,788)
161,885
107,035
69,456
(12,546)
(505)
163,440
Collective impairment allowance
Balance as at the beginning of the financial period/year
Allowance made during the financial period/year
Amount written off
Balance as at the end of the financial period/year
158,828
28,344
(7,112)
180,060
140,427
18,401
158,828
(viii) Impaired financing and advances (continued)
(b)
By purpose
Purchase of transport vehicles
Purchase of landed property:
- Residential
- Non-residential
Purchase of property, plant and equipment other than land and building
Personal use
Construction
Working capital
Other purposes
Gross impaired financing and advances
(c)
Movement in allowance for impaired financing and advances
13
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
12 OTHER ASSETS
Deposits and prepayments
Sundry deposits debtors
Other debtors
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
958
1,251
30,043
32,252
682
1,251
40,897
42,830
13 DEPOSITS FROM CUSTOMERS
Unaudited
30.06.2011
As at
30.06.2011
RM'000
Non-Mudharabah Funds
Demand deposits
Savings deposits
Negotiable Islamic Debt Certificates
Commodity Murabahah
Mudharabah Funds:
Demand deposits
Savings deposits
General investment accounts
Special investment accounts
(a)
1,433,502
616,586
1,642,279
3,692,367
1,376,008
569,786
4,976
754,650
2,705,420
391,262
4,634
694,483
6,601,356
11,384,102
378,321
3,123
1,280,190
5,579,528
9,946,582
8,127,475
802,624
6,481
1,538
8,938,118
6,876,995
591,854
149,746
749
7,619,344
3,061,772
5,986,213
1,119,248
1,216,869
11,384,102
2,391,923
4,807,632
1,095,704
1,651,323
9,946,582
The maturity structure of investment accounts, commodity murabahah
and negotiable Islamic debt certificates are as follows:
Due within six months
Six months to one year
One year to three years
Three years to five years
(b)
Audited
As at
31.12.2010
RM'000
The deposits are sourced from the following classes of customers:
Government and statutory bodies
Business enterprises
Individuals
Others
14
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
14 DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS
Non-Mudharabah Funds:
Licensed Islamic banks
Licensed banks
Mudharabah Funds:
Licensed Islamic banks
Licensed banks
Other financial institutions
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
812,303
1,006,157
1,818,460
730,726
324,013
1,054,739
1,102,613
702,123
590,152
4,213,348
807,836
204,418
2,066,993
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
11,670
19,915
72,589
44,220
148,394
49,990
4,527
11,355
35,414
101,286
15 OTHER LIABILITIES
Sundry creditors
Profit equalisation reserve
Amount due to holding company
Other accruals and payables
15
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
16 INCOME DERIVED FROM INVESTMENTS OF DEPOSITORS' FUNDS
Current
Financial
Quarter ended
30.06.2011
RM'000
Income derived from investment of:
(i) General investment deposit
(ii) Other deposits
Preceeding
Corresponding
Financial
Quarter ended
30.6.2010
RM'000
Current
Financial Half
Year ended
30.06.2011
RM'000
Preceeding
Corresponding
Financial Half
Year ended
30.6.2010
RM'000
12,777
103,948
116,725
32,076
269,000
301,076
23,884
194,296
218,180
12,263
105
1,846
1,198
8,665
86
1,437
1,125
23,898
152
3,548
2,351
15,953
130
2,730
2,262
648
16,060
491
16,551
1,020
12,333
444
12,777
1,246
31,195
881
32,076
2,260
23,335
549
23,884
16,551
138,789
155,340
(i) Income derived from investment of general investments deposits
Finance income and hibah
Financing and advances
Financial assets held-for-trading
Financial investments available-for-sale
Financial investments held-to-maturity
Money at call and deposit with
financial institutions
Total finance income and hibah
Other operating income (note a to c)
Of which:
Financing income earned on impaired
financing
49
308
288
356
Other operating income comprise of:
(a) Fee income:
Commission
Guarantee fees
42
42
44
44
134
72
206
126
63
189
(b) Net gain on disposal of financial assets
held-for-trading
167
223
297
183
(c) Net gain on disposal of financial
investments AFS
282
177
378
177
491
444
881
549
16
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
16 INCOME DERIVED FROM INVESTMENTS OF DEPOSITORS' FUNDS (CONTINUED)
Current
Financial
Quarter ended
30.06.2011
RM'000
Preceeding
Corresponding
Financial
Quarter ended
30.6.2010
RM'000
Current
Financial Half
Year ended
30.06.2011
RM'000
Preceeding
Corresponding
Financial Half
Year ended
30.6.2010
RM'000
(ii) Income derived from investment of other deposits
Finance income and hibah
Financing and advances
Financial assets held-for-trading
Financial investments available-for-sale
Financial investments held-to-maturity
Money at call and deposit with
financial institutions
Total finance income and hibah
Other operating income (note a to c)
Of which:
Financing income earned on impaired
financing
102,825
872
15,480
10,047
70,491
702
11,679
9,152
200,368
1,262
29,756
19,719
129,780
1,055
22,180
18,405
5,439
134,663
4,126
138,789
8,297
100,321
3,627
103,948
10,455
261,560
7,440
269,000
18,389
189,809
4,487
194,296
796
2,297
2,792
2,687
357
357
361
361
1,145
613
1,758
1,031
513
1,544
1,398
1,825
2,504
1,502
2,371
4,126
1,441
3,627
3,178
7,440
1,441
4,487
Other operating income comprise of:
(a) Fee income:
Commission
Guarantee fees
(b) Net gain on disposal of financial assets
held-for-trading
(c) Net gain on disposal of financial
investments AFS
17
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
17 INCOME DERIVED FROM INVESTMENTS OF SHAREHOLDERS' FUNDS
Current
Financial
Quarter ended
30.06.2011
RM'000
Preceeding
Corresponding
Financial
Quarter ended
30.6.2010
RM'000
Current
Financial Half
Year ended
30.06.2011
RM'000
Preceeding
Corresponding
Financial Half
Year ended
30.6.2010
RM'000
Finance income and hibah
Financing and advances
Financial assets held-for-trading
Financial investments available-for-sale
Financial investments held-to-maturity
Money at call and deposit with
financial institutions
Total finance income and hibah
Other operating income (note a to e)
Of which:
Financing income earned on impaired
financing
9,087
77
1,368
888
7,061
70
1,170
917
17,707
112
2,630
1,743
13,000
106
2,222
1,844
481
11,901
(412)
11,489
831
10,049
5,884
15,933
924
23,116
7,832
30,948
1,842
19,014
10,412
29,426
59
245
235
283
1,838
3,761
563
6,162
1,495
3,298
577
5,370
2,409
7,107
895
10,411
2,434
7,020
592
10,046
125
34
224
2
Other operating income comprise of:
(a) Fee income:
Commission
Service charges and fees
Guarantee and underwriting fees
(b) Net gain on financial assets held-for-trading
- net gain on disposal
(c) Net loss on revaluation of derivatives
(7,080)
(d) Net gain on disposal of financial
investments AFS
(e) Other income
Foreign exchange gain/(loss)
- realised
- unrealised
Gain on disposal of property,
plant and equipment
Other non-operating income
(2,866)
-
210
294
281
294
170
(13)
(593)
769
(219)
(30)
(855)
799
14
171
(412)
18
-
10
186
5,884
31
(218)
7,832
123
3
70
10,412
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
18 ALLOWANCES FOR IMPAIRMENT ON FINANCING AND ADVANCES
Current
Financial
Quarter ended
30.06.2011
RM'000
Preceeding
Corresponding
Financial
Quarter ended
30.6.2010
RM'000
Current
Financial Half
Year ended
30.06.2011
RM'000
Preceeding
Corresponding
Financial Half
Year ended
30.6.2010
RM'000
374
9,341
(1,755)
7,960
5,961
9,394
(872)
14,483
(1,555)
28,344
(2,718)
24,071
38,289
14,532
(2,662)
50,159
50,806
10,398
37,677
1,975
101,296
17,526
72,493
4,036
10,892
7,833
79,929
3,707
3,369
46,728
18,575
12,884
150,281
6,468
6,290
89,287
Allowance for impairment on financing and advances:
- Individual assessment allowance
- Collective assessmnet allowance
- Impaired financing recovered
19 INCOME ATTRIBUTABLE TO DEPOSITORS
Deposits from customers:
- Mudharabah funds
- Non-mudharabah funds
Deposits and placements of banks and
finanicial institutions
- Mudharabah funds
- Non-mudharabah funds
19
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE UNAUDITED INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
20
COMMITMENTS AND CONTINGENCIES
In the normal course of business, the Bank makes various commitments and incurs certain contingent liabilities with legal recourse to its customers. No material losses are
anticipated as a result of this transaction, which needs to be adjusted.
Risk weighted exposures of the Bank are as follows:
Principal
amount
RM'000
Direct credit substitutes
Transaction-related contingent items
Short term self-liquidating trade-related contingencies
Obligations under underwriting agreements
Irrevocable commitments to extend credit
- maturity more than one year
- maturity less than one year
Profit rate related contracts:
- one year to less than five years
Total
Unaudited
As at 30.06.2011
Credit
equivalent
amount
RM'000
Risk
weighted
amount
RM'000
Principal
amount
RM'000
Audited
As at 31.12.2010
Credit
equivalent
amount
RM'000
Risk
weighted
amount
RM'000
33
118,709
42,351
190,500
33
59,355
8,470
95,250
33
59,355
8,470
95,250
146,995
40,948
29,000
73,498
8,190
14,500
34,201
8,190
14,500
2,193,273
438,654
413,226
552,580
2,099,697
224,546
220,905
191,524
220,905
1,900,000
45,289
22,644
650,000
130,000
130,000
4,444,866
647,051
598,978
3,519,220
671,639
599,320
The credit equivalent and Risk Weighted Assets ('RWA') for the Bank are computed in accordance with BNM's Capital Adequacy Framwork for Islamic Banks ('CAFIB'):
Standardised Approach for Credit and Market Risk, and Basic Indicator Approach for Operational Risk ('Basel II') respectively.
20
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
21
CAPITAL ADEQUACY
With effect from 1 January 2008, the capital adequacy ratios of the Bank are computed in accordance with Bank Negara
Malaysia Capital Adequacy Framework for Islamic Banks ('CAFIB'): Standardised Approach for Credit and Market Risk and
Basic Indicator Approach for Operational Risk.
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
523,424
222,371
231,484
977,279
523,424
222,371
231,484
977,279
Less:
Deferred tax assets
(33,269)
(33,269)
Total Tier I Capital
944,010
944,010
117,869
117,869
103,037
103,037
Tier I Capital
Paid-up ordinary share capital
Retained profits
Statutory reserve
Tier II Capital
Collective impairment / allowance for bad and doubtful financing^
Total Tier II Capital
Less:
Other deduction*
(238)
Eligible Tier II capital
Total Capital Base
(102)
117,631
102,935
1,061,641
1,046,945
Capital Ratios
Core capital ratio (inclusive of market risk)
Risk-weighted capital ratio (inclusive of market risk)
10.53%
11.84%
12.23%
13.56%
Risk-weighted assets by each major risk category are as follows:
Credit risk-weighted assets
Market risk-weighted assets
Operational risk-weighted assets
Total risk-weighted assets
7,934,231
430,199
602,958
8,967,388
7,124,858
30,513
566,538
7,721,909
^ Excludes collective assessment impairment allowance attributable to financing and advances classified as impaired but
not individually assessed for impairment pursuant to BNM's Guideline on "Classification and Impairment Provisions for
Loans/Financing" issued on 8 January 2010 and susequently updated on 26 January 2010 and 17 December 2010.
* Pursuant to the Basel II Market Risk para 5.19 and 5.20 - Valuation Adjustments / Reserves, the RWCR computation
shall account for the ageing, liquidity and holding back adjustments / reserves on its trading portfolio.
21
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
22
CREDIT EXPOSURES ARISING FROM TRANSACTIONS WITH CONNECTED PARTIES
Credit exposures with connected parties as per Bank Negara Malaysia's revised Guidelines on Transaction and
Exposures with Connected Parties are as follows:
Outstanding credit exposures with connected parties
Percentage of outstanding credit exposures to connected parties as
porportion of total credit exposures
Percentage of outstanding credit exposures to connected parties which
is non-performing or in default
Unaudited
As at
30.06.2011
RM'000
Audited
As at
31.12.2010
RM'000
72,883
261,754
0.57%
2.61%
-
-
The credit exposures above are derived based on Bank Negara Malaysia's revised Guidelines on Credit Transactions
and Exposures with Connected Parties, which are effective on 1 January 2008.
22
RHB ISLAMIC BANK BERHAD (680329 – V)
(Incorporated in Malaysia)
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED 30 JUNE 2011 (CONTINUED)
23 VALUATION OF PROPERTY, PLANT AND EQUIPMENT
The property, plant and equipment are stated at cost less accumulated depreciation and accumulated impairment
losses.
24 EVENTS SUBSEQUENT TO BALANCE SHEET DATE
There are no material events subsequent to the balance sheet date that have not been reflected in financial
statements.
25 CHANGES IN THE COMPOSITION OF THE BANK
The are no significant changes in the composition of the Bank for the six months ended 30 June 2011.
26 CHANGES IN PROFIT FOR THE QUARTER
The Bank has recorded profit before taxation of RM31.3 million, for the current quarter, higher by RM1.6 million as
compared with the preceeding corresponding period ended 30 June 2010 of RM29.7 million. The marginally higher
profit was mainly due to higher net funding income by RM6.7 million and lower impaired financing and advances by
RM6.5 million offset with lower other operating income by RM5.7 million, higher transfer to PER by RM5.7 million
and higher overheads by RM0.2 million.
27 PERFORMANCE REVIEW
For the six months ended 30 June 2011, the Bank recorded a pre-tax profit of RM68.5 million, more than 100%
higher than that of the previous year corresponding period of RM32.6 million. The higher profit was mainly due to
higher net funding income, higher other operating income, lower impairment financing and advances and lower
operating expenses by RM22.7 million, RM0.7 million, RM26.1 million and RM0.8 million respectively, partly
offset by higher transfer to PER by RM14.4 million.
28 PROSPECTS FOR 2011
The Malaysian economy is expected to grow at between 5% to 6% for 2011 amidst a challenging external
environment due to continued weakness in the US and the Europe. The outlook for the Malaysian banking
sector remains positive, supported by the underlying strengths of the domestic economy and the roll-out of
the large-scale infrastructure projects under the Economic Transformation Programme.
In spite of what is expected to be a more challenging second half 2011, the Bank remain cautiously
confident that the Malaysian economy will continue to be supportive of business growth.
The Bank is optimistic of stronger market demand for banking products and services and a more active
capital market. It will remain focused on building its core businesses and will continue to look for opportunities
to expand its market share and increase its leadership position in targeted markets and product segments. This
is in line with the focus of the new financial sector blueprint to reinforce Malaysia's position as a global
financial hub for Islamic finance services. The Bank expects to maintain a satisfactory performance in 2011.
23