BANK OF TOKYO-MITSUBISHI UFJ (MALAYSIA) BERHAD · BANK OF TOKYO-MITSUBISHI UFJ (MALAYSIA) BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2017

BANK OF TOKYO-MITSUBISHI UFJ (MALAYSIA) BERHAD

(Incorporated in Malaysia)

Company No : 302316-U

UNAUDITED INTERIM FINANCIAL REPORT

FOR THE QUARTER ENDED

30 JUNE 2017



Company No : 302316-U

UNAUDITED INTERIM FINANCIAL REPORT

FOR THE QUARTER ENDED

30 JUNE 2017

Contents Page

Unaudited Statement of Financial Position 1

Unaudited Statement of Comprehensive Income 2

Unaudited Statement of Changes in Equity 3

Unaudited Statement of Cash Flows 4 - 5

Notes to the Unaudited Interim Financial Report 6 - 22



UNAUDITED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2017

2017 June 2017 March

RM'000 RM'000

ASSETS

Cash and short-term funds 6,456,996 7,398,702

Securities available-for-sale 743,760 686,869

Loans and advances 19,738,079 18,838,262

Purchased receivables 67,487 51,095

Derivative financial assets 2,352,857 2,775,724

Statutory deposits with Bank Negara Malaysia 3,268 3,268

Amount due from holding company 252,387 480,344

Amount due from related companies 21,924 6,256

Other assets 52,077 31,046

Property, plant and equipment 22,223 23,441

Intangible assets 33,406 34,830

Tax recoverable 27,073 39,275

TOTAL ASSETS 29,771,537 30,369,112

LIABILITIES AND SHAREHOLDER'S FUNDS

Deposits from customers 8,429,283 9,062,320

Deposits and placements of banks and other

financial institutions 3,350 2,580

Collateral deposits 12,934,344 12,531,310

Derivative financial liabilities 2,185,109 2,555,888

Amount due to holding company 3,707,683 3,750,338

Amount due to related company 1 1

Other liabilities 107,101 118,659

Deferred tax liabilities 803 803

TOTAL LIABILITIES 27,367,674 28,021,899

SHARE CAPITAL 200,000 200,000

RESERVES 2,203,863 2,147,213

SHAREHOLDER'S FUNDS 2,403,863 2,347,213

TOTAL LIABILITIES AND SHAREHOLDER'S FUNDS 29,771,537 30,369,112

COMMITMENTS AND CONTINGENCIES 64,643,601 64,826,256

1



UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE QUARTER ENDED 30 JUNE 2017

2017 June 2016 June 2017 June 2016 June

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

Operating revenue 112,823 91,857 112,823 190,500

Interest income 153,610 121,529 153,610 238,294

Interest expense (86,849) (61,221) (86,849) (114,075)

Net interest income 66,761 60,308 66,761 124,219

Other operating income 46,062 31,549 46,062 66,324

Operating income 112,823 91,857 112,823 190,543

Other operating expenses (46,140) (44,279) (46,140) (91,482)

Profit before allowance for losses on loans and advances 66,683 47,578 66,683 99,061

Allowance for impairment on loans and advances (56) (160) (56) (78,739)

Allowance for impairment on other assets - - - (3,410)

Profit before tax 66,627 47,418 66,627 16,912

Tax expense (12,200) (17,085) (12,200) (34,170)

Profit/(Loss) for the period 54,427 30,333 54,427 (17,258)

Other comprehensive income net of tax

Change in fair value of securities available-for-sale 2,223 32 2,223 (1,743)

Total comprehensive income for the period 56,650 30,365 56,650 (19,001)

Profit attributable to :

Owner of the Bank 54,427 30,333 54,427 (17,258)

Total comprehensive income attributable to :

Owner of the Bank 56,650 30,365 56,650 (19,001)

Basic earnings per share (sen) 27.2 15.2 27.2 (8.6)

1st Quarter Ended Three/Six Months Ended

2

BANK OF TOKYO-MITSUBISHI UFJ (MALAYSIA) BERHAD(Incorporated in Malaysia)

UNAUDITED STATEMENT OF CHANGES IN EQUITY


<---------------- Attributable to Shareholder of the Bank ---------------->

Distributable

Share Statutory Regulatory Defined Fair value Retained

capital reserve reserve benefit reserve profits Total

reserve

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

2017 June

At beginning of the period 200,000 204,187 164,349 (5,527) 1,012 1,783,192 2,347,213

Profit for the period - - - - - 54,427 54,427

Other comprehensive income - - - - 2,223 - 2,223

Total comprehensive income - - - - 2,223 54,427 56,650

Transfer to retained profits - (204,187) - - - 204,187 -

At end of the period 200,000 - 164,349 (5,527) 3,235 2,041,806 2,403,863

2016 June

At beginning of the period 200,000 204,187 150,388 (5,362) 2,378 1,493,454 2,045,045

Loss for the period - - - - - (17,258) (17,258)

Other comprehensive income - - - - (1,743) - (1,743)

Total comprehensive income - - - - (1,743) (17,258) (19,001)

Transfer to regulatory reserve - - - - - - -

At end of the period 200,000 204,187 150,388 (5,362) 635 1,476,196 2,026,044

<-------------------- Non-distributable -------------------->

3



UNAUDITED STATEMENT OF CASH FLOWS


2017 June 2016 June

RM'000 RM'000

Cash Flows From Operating Activities

Profit before tax 66,627 16,912

Adjustments for:

Depreciation of property, plant and equipment 1,255 2,500

Amortisation of intangible assets 2,283 2,643

Provision for retirement benefits 851 1,662

Dividend income (184) (111)

Interest income from securities available-for-sale (6,286) (1,501)

Amortisation and accretion of securities AFS 262 110

Allowance for impairment on loan and advances 56 78,739

Allowance for impairment on purchased receivables - 3,410

Writeback of provisionfor diminution in value of

securities AFS - (4)

Unrealised loss on changes in fair value

of derivative financial instruments (44,736) (30,058)

Operating profit before changes in working capital 20,128 74,302

(Increase)/Decrease in operating assets:

Loans and advances (899,874) (653,442)

Purchased receivables (16,392) (17,292)

Statutory deposits with Bank Negara Malaysia - -

Derivative financial assets 516,041 814,153

Other assets (12,613) (4,869)

Increase/(Decrease) in operating liabilities:

Deposits from customers (633,037) 580,006

Deposits and placements of banks and

other financial institutions 770 68,830

Collateral deposits 403,034 31,665

Derivative financial liabilities (419,007) (762,397)

Net movement in inter-company balances (42,652) (1,191,653)

Other liabilities (12,409) (45,265)

Cash generated from/(used in) operations (1,096,011) (1,105,962)

Income taxes paid - (36,617)

Income tax refund - -

Payment of staff gratuties - (85)

Net cash generated from/(used in) operating activities (1,096,011) (1,142,664)

4



UNAUDITED STATEMENT OF CASH FLOWS

FOR THE QUARTER ENDED 30 JUNE 2017 (CONTD.)

2017 June 2016 June

RM'000 RM'000

Cash Flows From Investing Activities

Purchase of property, plant and equipment (37) (11)

Purchase of intangible assets (858) (195)

Proceeds from sale of securities available-for-sale - 90,000

Proceeds from disposal of property, plant and equipment - -

Purchase of securities available-for-sale (61,455) -

Dividend received 184 111

Interest income from securities available-for-sale 4,394 694

Net cash generated from/(used in) investing activities (57,772) 90,599

Net increase in cash and cash equivalents (1,153,783) (1,052,065)

Cash and cash equivalents at

beginning of quarter 7,884,884 8,271,299

Cash and cash equivalents at

end of quarter 6,731,101 7,219,234

Analysis of cash and cash equivalents

Cash and short term funds 6,456,996 6,882,019

Amount due from holding and related companies

- current accounts 274,311 337,755

Amount due to holding and related companies

- current accounts (415) (540)

6,730,892 7,219,234

5



NOTES TO THE UNAUDITED INTERIM FINANCIAL REPORT


1 BASIS OF PREPARATION

MFRSs, Interpretations and amendments effective for annual periods beginning on or after 1 January 2017


MFRS 9, Financial Instruments (2014)

MFRS 15, Revenue from Contracts with Customers

Clarifications to MFRS 15, Revenue from Contracts with Customers

IC Interpretation 22, Foreign Currency Transactions and Advance Consideration

Amendments to MFRS 140, Investment Property – Transfers of Investment Property


MFRS 16, Leases

MFRSs, Interpretations and amendments effective for date yet to be confirmed

The Bank plans to apply the abovementioned accounting standards, amendments and interpretations:

from the annual period beginning on 1 April 2017 for those amendments that are effective for annual periods beginning

on or after 1 January 2017, except for Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual

Improvements to MFRS Standards 2014-2016 Cycle) which is not applicable to the Bank.

from the annual period beginning on 1 April 2018 for those accounting standards, amendments and interpretation that are

effective for annual periods beginning on or after 1 January 2018, except for Amendments to MFRS 2, Share-based

Payment – Classification and Measurement of Share-based Payment Transactions , Amendments to MFRS 4, Insurance

Contracts – Applying MFRS 9 Financial Instruments with MFRS 4 Insurance Contracts , Amendments to MFRS 128,

Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards 2014-2016 Cycle) and

Amendments to MFRS 140, Investment Property – Transfers of Investment Property which are not applicable to the

Bank.

from the annual period beginning on 1 April 2019 for the accounting standard that is effective for annual periods

beginning on or after 1 January 2019.

The unaudited interim financial report for the quarter ended 30 June 2017 have been prepared under the historical cost

convention except for securities available-for-sale and derivative financial instruments which are stated at fair value.

The unaudited condensed interim financial report have been prepared in accordance with MFRS 134 : Interim Financial

Reporting issued by the Malaysian Accounting Standard Board ("MASB") and Bank Negara Malaysia's Guidelines on

Financial Reporting. The unaudited interim financial report should be read in conjunction with the audited financial

statements of the Bank for the financial period ended 31 March 2017. The explanatory notes attached to the interim financial

report provide an explanation of events and transactions that are significant to an understanding of the changes in the financial

position and performance of the Bank since the period ended 31 March 2017.

The following are accounting standards, amendments and interpretations that have been issued by the Malaysian Accounting

Standards Board (“MASB”) but have not been adopted by the Bank:

Amendments to MFRS 12, Disclosure of Interests in Other Entities (Annual Improvements to MFRS Standards 2014-

2016 Cycle)

Amendments to MFRS 10, Consolidated Financial Statements and MFRS 128, Investments in Associates and Joint

Ventures – Sale or Contribution of Assets between an Investor and its Associate or Joint Venture

Amendments to MFRS 107, Statement of Cash Flows – Disclosure Initiative

Amendments to MFRS 112, Income Taxes – Recognition of Deferred Tax Assets for Unrealised Losses

Amendments to MFRS 1, First-time Adoption of Malaysian Financial Reporting Standards (Annual Improvements to

MFRS Standards 2014-2016 Cycle)

Amendments to MFRS 2, Share-based Payment – Classification and Measurement of Share-based Payment

Transactions

Amendments to MFRS 128, Investments in Associates and Joint Ventures (Annual Improvements to MFRS Standards

2014-2016 Cycle)

Amendments to MFRS 4, Insurance Contracts – Applying MFRS 9 Financial Instruments with MFRS 4 Insurance

Contracts

6





1 BASIS OF PREPARATION (CONTD.)

MFRS 9, Financial Instruments

The Bank is currently assessing the financial impact that may arise from the adoption of MFRS 9.

MFRS 15, Revenue from Contracts with Customers

2 AUDIT REPORT

3 CHANGE IN FINANCIAL YEAR END

4 SEASONAL OR CYCLICAL FACTORS

The business operations of the Bank have not been affected by any material seasonal cyclical factors.

5 EXCEPTIONAL OR EXTRAORDINARY ITEMS

6 CHANGES IN ESTIMATES

7 CHANGES IN DEBT AND EQUITY SECURITIES

8 DIVIDEND PAID

No dividend was paid during the financial period ended 30 June 2017.

9 SUBSEQUENT EVENTS

MFRS 15 replaces the guidance in MFRS 111, Construction Contracts , MFRS 118, Revenue , IC Interpretation 13,

Customer Loyalty Programmes , IC Interpretation 15, Agreements for Construction of Real Estate , IC Interpretation 18,

Transfers of Assets from Customers and IC Interpretation 131, Revenue – Barter Transactions Involving Advertising

Services .

The Bank is currently assessing the financial impact that may arise from the adoption of MFRS 15.

The initial application of the accounting standards, amendments or interpretations are not expected to have any material

financial impacts to the current period and prior period financial statements of the Bank except as mentioned below:

MFRS 9 replaces the guidance in MFRS 139, Financial Instruments: Recognition and Measurement on the classification

and measurement of financial assets and financial liabilities, and on hedge accounting.

There were no significant changes in estimates of amounts reported in prior financial years that have a material effects on

the financial results and position of the Bank for the financial period ended 30 June 2017.

The audit report on the audited financial statements for the financial period ended 31 March 2017 was not subject to any

qualification.

There were no issuance and repayment of debt and equity securities during the financial period ended 30 June 2017.

There were no material events subsequent to the balance sheet date that require disclosure or adjustments to the unaudited

condensed interim financial report.

There were no exceptional or extraordinary items for the financial period ended 30 June 2017.

In the comparatives, the audited financial statements are prepared for a period of 15 months from 1 January 2016 to 31

March 2017, as a result of Bank changed its financial year end from 31 December to 31 March.

7





10 REVIEW OF PERFORMANCE

11 PROSPECTS

12 SECURITIES AVAILABLE-FOR-SALE


RM'000 RM'000

At fair value

Money market instruments

• Malaysian Government Securities 525,109 462,371

• Sukuk 215,658 221,505

At cost

Unquoted bonds # 27 27

Unquoted shares 2,966 2,966

743,760 686,869

Total assets decreased slightly from RM30.4 billion to RM29.8 billion compared to 31 March 2017. The Bank's

CET 1/Tier 1 capital ratio and total capital ratio remained strong at 17.6681% and 18.7255% respectively.

The Bank's profit before taxation for the financial period ended 30 June 2017 was RM66.6 million, an increase

of 293.96% or RM49.7 million compared to the corresponding period last year. Operating income decreased by

RM77.7 million from RM190.5 million to RM112.8 million whilst operating expenses decreased by RM45.3

million mainly attributed to lower personnel expenses and administrative expenses, in view of the comparatives

were for six months ended results.

# Unquoted bonds are stated net of impairment loss amounting to RM2,429,000 (2017 March : RM2,429,000).

The Bank's business strategies going forward is to provide various solutions to all types of customer segments

including aggressive participation in major finance deals of Government Linked Companies ("GLCs"). This is

realised by proposing and utilising Debt Capital Market ("DCM") tools and solutions in collaboration with the

Regional Office in Singapore, the holding company and affiliates for their financials needs.

The collaboration with the holding company will also be extended to participation in sizeable deals with regards

to overseas investments of large Malaysian corporations while commencement of business relationship with

other new local customers would be undertaken based on market demands. In enhancing our Islamic finance

business, continuous support from the holding company has enabled us to strive towards enhancing greater

financial cooperation in the area of Islamic finance between Malaysia and Japan.

The Bank will continue to grow its Islamic banking business through the International Currency Business Unit

("ICBU") and Islamic Banking Window ("IBW") by introducing innovative Islamic banking products and

expanding on the Bank’s network while continuously tapping onto other business opportunities provided under

the Malaysian International Islamic Financial Centre ("MIFC").

The Bank will continue to focus on new corporate loans, syndicated loan deals, bilateral deals and in promoting

Islamic financing facilities, while maintaining our strong relationship with existing customers. This will further

enhance the Bank's corporate banking services, improve cash management business, investment banking and

Islamic banking services. Going forward, the Bank expects customers’ keen interest in eco-friendly schemes and

strong support for green technology financing.

On deposit-taking, the Bank will continue to enhance its deposits products by offering attractive features and

competitive interest rates. The Bank will also step up its efforts to tap on potential new segments particularly the

telecommunications and healthcare business sectors.

In terms of conventional products, the Bank will revamp its approach to reduce over-dependence on the balance

sheet by not only diversifying but through cross-selling and expanding on strategies to increase deposits from

customers.

8






RM'000 RM'000

13 LOANS AND ADVANCES

(a) By type

At amortised cost

Overdrafts 11,035 9,458

Term loans

Housing loans 13,358 13,490

Other term loans 15,023,546 14,081,108

Revolving credits 4,719,298 4,764,994

Bills receivable 67,049 57,299

Claims on customers under acceptance credits 1,750 10,494

Staff loans 6,215 5,600

19,842,251 18,942,443

Unearned interest (18) (83)

Gross loans and advances 19,842,233 18,942,360

Impairment allowances on loans and advances

Individual assessment (3,399) (3,343)

Collective assessment (100,755) (100,755)

Net loans and advances 19,738,079 18,838,262

(b) By maturity structure

Maturing within one year 7,456,124 7,097,742

More than one year to three years 6,223,383 7,756,692

More than three years to five years 3,756,881 2,200,285

More than five years 2,405,845 1,887,641

19,842,233 18,942,360

(c) By type of customer

Domestic non-bank financial institutions 6,203,849 5,918,234

Domestic business enterprises

Small medium enterprises 1,861,675 1,848,638

Others 8,352,899 7,904,658

Individuals 19,495 66,780

Foreign entities 3,404,315 3,204,050

19,842,233 18,942,360

Loans and advances to customers amounting to RM10,522,693,000 (2017 March: RM9,897,578,000)

contain embedded derivatives. The carrying amounts of the embedded derivatives are separately

recognised as derivative financial assets and derivative financial liabilities as appropriate.

9






RM'000 RM'000

13 LOANS AND ADVANCES (CONTD.)

(d) By interest rate sensitivity:

Fixed rate

Staff loans 5,515 5,600

Other fixed rate loans - -

Variable rates 19,836,718 18,936,760

19,842,233 18,942,360

(e) By economic sector:

Agricultural, hunting, forestry and fishing 1,133,521 727,883

Mining and quarrying 61,040 205,875

Manufacturing 2,726,734 2,716,265

Electricity, gas and water 2,314,084 2,496,031

Construction 1,936,354 1,385,430

Wholesale and retail trade and restaurants and hotels 896,452 984,824

Transport, storage and communication 1,045,096 1,060,190

Finance, insurance, real estate and business services 9,694,603 9,330,971

Households 19,572 19,090

Others 14,777 15,801

19,842,233 18,942,360

(f) By geographical location:

Malaysia 18,253,627 17,509,927

Other countries 1,588,606 1,432,433

19,842,233 18,942,360

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

At beginning of the period 4,562 4,429

Impaired during the period 262 1,178

Amount recovered (4) (77)

Reclassified as non-impaired (76) (948)

Amount written off - (20)

At end of the period 4,744 4,562

10






RM'000 RM'000

13 LOANS AND ADVANCES (CONTD.)

(h) Impaired loans according to economic sectors are as follows:

Finance, insurance and business services 3,691 3,635

Household 1,053 927

4,744 4,562

(i) Impaired loans by geographical location are as follows:

Malaysia 4,744 4,562

(j) Movements in impairment allowances on loans and advances are as follows:

(i) Allowance for individual assessment


Allowance made during the period 56 306


(ii) Allowance for collective assessment


Allowance made during the period - 25,688


14 PURCHASED RECEIVABLES

2017 June 2017 MarchRM'000 RM'000

Purchased receivables 67,672 51,280 Allowance for individual assessment - - Allowance for collective assessment (185) (185)

67,487 51,095

(a) Movements in impairment allowances on purchased receivables

2017 June 2017 MarchRM'000 RM'000

(i) Allowance for individual assessmentAt beginning of the period - - Allowance made during the period - -

At end of the period - -

(ii) Allowance for collective assessment

At beginning of the period 185 365

Allowance made during the year - (180)

At end of the period 185 185

Purchased receivables relate to receivables acquired by the Bank under the account receivables

purchasing and vendors financing product. These amounts owing from obligors have a tenure of one to

two months. Included in purchased receivables are non-recourse bills receivable amounting to

RM24,914,000 (2017 March: RM19,312,000).

11






RM'000 RM'000

15 DEPOSITS FROM CUSTOMERS

At amortised cost

Demand deposits 4,122,188 4,560,342

Money market deposits 1,110,397 779,548

Savings deposits 20,178 20,779

Fixed deposits 3,176,519 3,701,651

8,429,283 9,062,320

(a) The maturity structure of fixed deposits are as follows:

Due within six months 3,110,548 3,634,833

Six months to one year 52,189 54,462

Above one year 13,782 12,356

3,176,519 3,701,651

(b) The deposits are sourced from the following customers:

Business enterprises 8,339,604 8,969,100

Individuals 89,679 93,220

8,429,283 9,062,320

16 DEPOSITS AND PLACEMENTS OF BANKS AND OTHER FINANCIAL INSTITUTIONS


RM'000 RM'000

At amortised cost

Non-bank financial institutions 3,350 2,580

12





17 COMMITMENTS AND CONTINGENCIES

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

Credit-related Exposures

Direct credit subsitutes 2,975 2,975 1,488 2,975 2,975 1,488

Transaction-related contingent items 1,145,862 572,931 379,085 1,240,845 620,422 387,527

Short-term self-liquidating trade-related contingencies 298,751 59,750 59,750 143,610 28,722 28,722

Other commitments, such as formal standby facilties

and credit lines, with an original maturity of :

- not exceeding one year - - - - - -

- exceeding one year 43,208 21,604 21,604 44,943 22,472 22,472

Any commitments that are unconditionally cancelled at

any time by the Bank without prior notice or that

effectively provide for automatic cancellation due to

deterioration in a borrower's creditworthiness 4,834,717 - - 4,636,717 - -

Securitisation exposures 15,000 3,000 2,250 15,000 3,000 2,250

6,340,513 660,260 464,176 6,084,090 677,591 442,459

Derivative Financial Instruments:

Foreign exchange related contracts

- less than one year 10,042,986 667,662 847,712 480,867 10,984,962 610,793 776,359 426,526

- one year to less than five years 16,768,807 1,270,324 758,702 587,943 17,639,245 1,764,566 795,781 629,201

- five years and above 8,116,558 321,347 1,542,460 1,089,907 8,317,782 276,724 1,579,316 1,067,695

Interest rate related contracts

- less than one year 3,590,356 296 5,161 1,539 2,505,495 657 5,344 1,603

- one year to less than five years 13,644,716 49,678 187,077 97,184 12,602,255 77,401 164,045 75,882

- five years and above 6,025,393 43,062 310,672 177,857 6,603,881 45,321 317,529 180,224

Currency options

- less than one year 114,272 487 2,201 2,201 88,546 262 1,591 1,591

58,303,088 2,352,857 3,653,985 2,437,498 58,742,166 2,775,724 3,639,965 2,382,722

Total 64,643,601 2,352,857 4,314,245 2,901,674 64,826,256 2,775,724 4,317,556 2,825,181

Principal

Amount

Credit

Equivalent

Amount

Risk-

Weighted

Assets


Positive Fair

Value of

Derivative

Contracts

Positive Fair

Value of

Derivative

Contracts

Credit

Equivalent

Amount

Principal

Amount

Risk-

Weighted

Assets

13






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

18 INTEREST INCOME

Loans and advances 99,223 71,797 99,223 137,079

Money at call and deposit placements with financial institutions 48,362 48,975 48,362 99,714

Securities available-for-sale 6,025 757 6,025 1,501

153,610 121,529 153,610 238,294

19 INTEREST EXPENSE

Deposits and placements of banks and other financial institutions 54,506 17,736 54,506 57,016

Deposits from other customers 32,343 43,485 32,343 57,059

86,849 61,221 86,849 114,075

20 OTHER OPERATING INCOME

Fee income

Commission 360 258 360 454

Guarantee fees 993 923 993 2,005

Service charges and fees 748 900 748 1,808

Commitment fees 189 190 189 383

Other fee income 912 2,520 912 7,035

3,202 4,791 3,202 11,685

Investment income

Gross dividends 184 111 184 111

Realised gain/(loss) in fair value of derivative financial instruments (13,963) 19,123 (13,963) (2,371)

Unrealised gain/(loss) in fair value of derivative financial instruments 44,736 (25,741) 44,736 30,058

Net premium (paid)/received for options - (54) - (72)

30,957 (6,561) 30,957 27,726

Other incomeForeign exchange gain/(loss) 11,899 33,298 11,899 25,797

Other operating income 4 21 4 1,116

11,903 33,319 11,903 26,913

46,062 31,549 46,062 66,324


14






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

21 OTHER OPERATING EXPENSES

Personnel expenses 25,701 21,834 25,701 43,825

Establishment related expenses 4,809 4,677 4,809 8,675

Promotion and marketing related expenses 410 507 410 836

Administrative and other expenses 15,220 17,261 15,220 38,146

46,140 44,279 46,140 91,482

Personnel expenses

- Wages, salaries and bonus 19,000 17,760 19,000 34,550

- Defined benefit plan 852 825 852 1,662

- Defined contribution plan 3,288 1,523 3,288 4,504

- Other employee benefits 2,561 1,726 2,561 3,109

25,701 21,834 25,701 43,825

Establishment related expenses

- Depreciation of property, plant and equipment 1,255 1,245 1,255 2,500

- Amortisation of intangible assets 2,283 1,305 2,283 2,643

- Hire of equipment 155 170 155 345

- Repair and maintenance 97 363 97 389

- Rental of premises 866 1,379 866 2,484

- Others 153 215 153 314

4,809 4,677 4,809 8,675

Promotion and marketing related expenses

- Advertising and publicity 70 35 70 132

- Others 340 472 340 704

410 507 410 836

Administrative and other expenses

- Collateral deposit fees 10,835 13,513 10,835 33,315

- Communication expenses 156 340 156 571

- Legal and professional fees 223 (1,304) 223 (1,010)

- Others 4,006 4,712 4,006 5,270

15,220 17,261 15,220 38,146

22 (ALLOWANCE)/WRITEBACK FOR IMPAIRMENT ON LOANS AND ADVANCES

Allowance for impaired loans and advances

- Collective assessment - - - -

- Individual assessment (56) (234) (56) (78,761)

Impaired loans and advances written off - 52 - -

Bad debts written back - 22 - 22

(56) (160) (56) (78,739)


15





23 CAPITAL ADEQUACY

(a)

(b) The capital adequacy ratios of the Bank are as follows:


Common equity Tier 1 ("CET 1") capital ratio 17.668% 16.660%

Tier 1 capital ratio 17.668% 16.660%

Total capital ratio 18.725% 17.718%

(c) The components of Tier 1 and Tier 2 capital of the Bank are as follows:


RM'000 RM'000

CET 1 and Tier 1 capital

· Paid-up share capital 200,000 200,000

· Retained profits 1,987,379 1,783,192

· Other reserves 162,057 364,021

2,349,436 2,347,213

Less

· Deferred tax assets - -

· Intangible assets (33,406) (34,830)

· 55% of fair value reserve (753) (557)

· Regulatory reserve (164,349) (164,349)

2,150,928 2,147,477

Tier 2 capital

· Impairment allowance for collective assessment *

and regulatory reserve 128,718 136,333

Total Capital 2,279,646 2,283,810

*

The capital adequacy ratios consist of total capital and risk-weighted assets derived from balances of the Bank.

With effect from 1 January 2013, the capital adequacy ratios are computed in accordance with BNM's

Guidelines on Capital Adequacy Framework (Capital Components and Basel II - Risk Weighted Assets)

("CAF") issued on 28 November 2012. The Bank adopted the Standardised Approach for Credit Risk and

Market Risk and the Basic Indicator Approach for Operational Risk.

Excludes impairment allowance on collective assessment on impaired loans restricted from Tier 2 capital of

the Bank of RM320,000 (2017 March: RM310,000).

16





23 CAPITAL ADEQUACY (CONT'D)

(d) The components of risk-weighted assets of the Bank are as follows:

2017 June

Risk-

Gross Net Weighted Capital

Exposure Class Exposures Exposures Assets Requirements

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

(i) Credit Risk

On-Balance Sheet Exposures :

Sovereigns/Central Banks 5,921,738 5,921,738 - -

Public Sector Entities 10,889 10,889 2,178 174

Banks, Development Financial Institutions & MDBs 1,615,205 1,351,415 412,915 33,033

Insurance Cos, Securities Firms & Fund Managers - - - -

Corporates 19,555,198 6,407,281 6,629,127 530,330

Regulatory Retail 1,745 1,745 1,745 140

Residential Mortgages 14,715 14,715 6,772 542

Other Assets 341,557 341,557 337,100 26,968

Equity Exposures 2,993 2,993 2,993 239

Defaulted Exposures 3,084 3,084 2,918 233

Total On-Balance Sheet Exposures 27,467,124 14,055,417 7,395,748 591,659

Off-Balance Sheet Exposures :

Credit-related exposures 657,260 657,260 461,926 36,954

Securitisation exposures 3,000 3,000 2,250 180

Derivatives financial instruments 3,653,985 3,653,985 2,437,498 195,000

Total Off-Balance Sheet Exposures 4,314,245 4,314,245 2,901,674 232,134

Total On and Off-Balance Sheet Exposures 31,781,369 18,369,662 10,297,422 823,793

(ii) Large Exposure Risk Requirement - - - -

Long

Position

Short

Position

(iii) Market Risk

Interest Rate Risk 639,204 (548,565) 1,132,999 90,640

Foreign Exchange Risk 11,135 (11,681) 11,681 935

650,339 (560,246) 1,144,680 91,575

(iv) Operational Risk 731,947 58,556

Total RWA and Capital Requirements 31,781,369 18,369,662 12,174,049 973,924

17





23 CAPITAL ADEQUACY (CONTD.)

(d) The components of risk-weighted assets of the Bank are as follows:

2017 March

Risk-

Gross Net Weighted Capital

Exposure Class Exposures Exposures Assets Requirements

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

(i) Credit Risk

On-Balance Sheet Exposures:

Sovereigns/Central Banks 6,402,363 6,402,363 - -

Public Sector Entities 23,089 23,089 4,618 369

Banks, Development Financial Institutions & MDBs 2,197,991 1,921,685 526,951 42,156

Insurance Cos, Securities Firms & Fund Managers - - - -

Corporates 18,643,412 7,038,573 7,215,181 577,214

Regulatory Retail 1,786 1,786 1,786 143

Residential Mortgages 14,302 14,302 6,296 504

Equity Exposures 2,993 2,993 2,993 239

Other Assets 325,872 325,872 320,835 25,667

Defaulted Exposures 2,981 2,981 2,815 225

Total On-Balance Sheet Exposures 27,614,789 15,733,644 8,081,475 646,517

Off-Balance Sheet Exposures :

Credit-related exposures 674,591 674,591 440,209 35,217

Securitisation exposures 3,000 3,000 2,250 180

Derivatives financial instruments 3,639,965 3,639,965 2,382,722 190,618

Total Off-Balance Sheet Exposures 4,317,556 4,317,556 2,825,181 226,015

Total On and Off-Balance Sheet Exposures 31,932,345 20,051,200 10,906,656 872,532

(ii) Large Exposure Risk Requirement - - - -

Long

Position

Short

Position

(iii) Market Risk

Interest Rate Risk 644,145 (543,848) 1,253,714 100,297

Foreign Exchange Risk 16,682 (5,203) 16,688 1,335

660,827 (549,051) 1,270,402 101,632

(iv) Operational Risk 712,853 57,028

Total RWA and Capital Requirements 31,932,345 20,051,200 12,889,911 1,031,192

18





24 THE OPERATIONS OF ISLAMIC BANKING

UNAUDITED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2017


RM'000 RM'000

ASSETS

Cash and short-term funds (a) 27,706 27,432

Other assets 2 2

TOTAL ASSETS 27,708 27,434

LIABILITIES AND ISLAMIC BANKING FUNDS

Deposits from customers (b) 3 3

Other liabilities 4,689 4,515

TOTAL LIABILITIES 4,692 4,518

CAPITAL FUND 25,000 25,000

RESERVE (1,984) (2,084)

ISLAMIC BANKING FUNDS 23,016 22,916

TOTAL LIABILITIES AND ISLAMIC BANKING FUNDS 27,708 27,434

COMMITMENTS AND CONTINGENCIES - -

19





24 THE OPERATIONS OF ISLAMIC BANKING (CONTD.)

UNAUDITED STATEMENTS OF COMPREHENSIVE INCOME



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

Income attributable to depositors - - - -

- - - -

Income derived from investment of Islamic Banking Capital funds (c) 217 199 217 394

Other operating income (d) 58 - 58 -

Other operating expenses (e) (175) (261) (175) (847)

Profit/(Loss) before tax 100 (62) 100 (453)

Tax expense - - - -

Profit/(Loss) for the period 100 (62) 100 (453)

UNAUDITED STATEMENT OF CHANGES IN EQUITY


Capital Accumulated Total

Fund Losses

RM '000 RM '000 RM '000

2017 June

At beginning of the period 25,000 (2,084) 22,916

Profit for the period - 100 100

At end of the period 25,000 (1,984) 23,016

2016 June

At beginning of the period 25,000 (2,105) 22,895

Loss for the period - (453) (453)

At end of the period 25,000 (2,558) 22,442

1st quarter ended Three/Six months ended

20






Shariah Committee

Basis of measurement

(a) Cash and short-term funds


RM'000 RM'000

Cash and balances with banks and other financial institution 27,706 27,432

(b) Deposits from customers


RM'000 RM'000

Current accounts 3 3

(c) Income derived from investment of Islamic Banking Capital funds


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

Money at call and placements with financial institutions 217 199 217 394

(d) Other Operating Income


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

Other fee income 58 - 58 -

(e) Other Operating Expenses

2017 June 2016 June 2017 June 2016 JuneRM'000 RM'000 RM'000 RM'000

Personnel expenses 162 216 162 774 Other expenses 13 45 13 73

175 261 175 847


The committee comprises: Dr. Luqman bin Haji Abdullah, Assoc. Prof. Dr. Abdul Karim bin Ali, Assoc. Prof. Dr. Syed Musa Syed Jaafar Alhabshi, Assoc.

Prof. Dr. Mek Wok binti Mahmud and Dr. Safinar binti Salleh.

The Shariah Committee was established under BNM's "Guidelines on the Governance of Shariah Committee for the Islamic Financial Institutions"

("BNM/GPS1") to advise the Board of Directors on Shariah matters in its Islamic Banking business operations and to provide technical assistance in

ensuring the Islamic Banking products and services offered by the Bank and the relevant documentation are in compliance with Shariah principles.

The financial statements of the Islamic Banking business have been prepared on the basis consistent with that of the Bank as disclosed in Note 1 to the

audited financial statements of the Bank for financial period ended 31 March 2017.

Three/Six months ended1st quarter ended


21






(d) Capital Adequacy

The capital adequacy ratios of the Bank's Islamic Banking business are as follows:


Common equity tier 1 capital ratio 666.550% 744.993%

Tier 1 capital ratio 666.550% 744.993%

Total capital ratio 666.550% 744.993%

The components of Tier 1 and Tier 2 capital of the Bank's Islamic Banking business are as follows:


RM'000 RM'000

CET 1 and Tier 1 capital

· Paid-up share capital 25,000 25,000

· Accumulated losses (2,084) (2,084)

22,916 22,916

Tier 2 capital - -

Total capital 22,916 22,916

The breakdown of the risk-weighted assets by each major risk category is as follows:


RM'000 RM'000

Operational risk 3,438 3,076

The capital adequacy ratios of the Islamic Banking business of the Bank are computed in accordance with the Capital

Adequacy Framework for Islamic Banks ("CAFIB"). The Bank's Islamic Banking business has adopted the

Standardised Approach for Credit Risk and Market Risk, and the Basic Indicator Approach for Operational Risk.

22

Name of Institution : Bank of Tokyo - Mitsubishi UFJ ( Malaysia ) Berhad

Financial Quarter Ended : 30-Jun-2017

1. Financial Highlights for the Past Three Years

30/06/2017 30/06/2016 30/06/2015 H2-H1 H1-H0

(H2) (H1) (H0)

(RM mil) (RM mil) (RM mil) (RM mil) % (RM mil) %

Profit/(Loss) before tax and extraordinary item

[PBT] 66,627 16,912 115,565 49,715 293.96% (98,653) -85.37%

Taxation 12,200 34,170 28,243 (21,970) -64.30% 5,927 20.99%

Profit(Loss) after tax before extraordinary item

[PAT] 54,427 (17,258) 87,322 71,685 -415.37% (104,580) -119.76%

Extraordinary item 0 0 0 0 0.00% 0 0.00%

Profit(Loss) after tax and extraordinary item 54,427 (17,258) 87,322 71,685 -415.37% (104,580) -119.76%

Interim Dividend - Amount 0 0 0 0 0.00% 0 0.00%

- Rate (%) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Transfer to Statutory reserve 0 0 0 0 0.00% 0 0.00%

Total Assets 29,771,537 28,013,075 22,134,616 1,758,462 6.28% 5,878,459 26.56%

Loans & advances 19,738,079 17,870,443 13,157,451 1,867,636 10.45% 4,712,992 35.82%

Net impaired loans 1,345 1,439 1,340 (94) -6.53% 99 7.39%

Deposits and placement with financial institutions 0 0 0 0 0.00% 0 0.00%

Dealing securities 0 0 0 0 0.00% 0 0.00%

Investment securities 743,760 84,475 274,168 659,285 780.45% (189,693) -69.19%

Total Liabilities 27,367,674 25,987,031 20,204,184 1,380,643 5.31% 5,782,847 28.62%

Deposits from customers 8,429,283 8,335,652 6,626,402 93,631 1.12% 1,709,250 25.79%

Deposits and placement of banks and FIs 3,350 73,830 4,660 (70,480) -95.46% 69,170 1484.33%

Subordinated term loans 0 0 0 0 0.00% 0 0.00%

Total shareholders' funds 29,771,537 28,013,075 22,134,616 1,758,462 6.28% 5,878,459 26.56%

Share capital 200,000 200,000 200,000 0 0.00% 0 0.00%

Statutory reserve 0 204,187 204,187 (204,187) -100.00% 0 0.00%

Regulatory reserve 164,349 150,388 39,652 13,961 0.00% 110,736 100.00%

Other reserves 29,407,188 27,458,500 21,690,777 1,948,688 7.10% 5,767,723 26.59%

Commitments and Contingencies 64,643,601 49,963,103 43,427,118 14,680,498 29.38% 6,535,985 15.05%

Return (PBT) on average shareholder's funds 0.23% 0.07% 0.97% 0.16% 241.90% -0.90% -93.05%

Return (PAT) on average shareholder's funds 0.19% -0.07% 0.73% 0.26% -373.69% -0.80% -109.43%

Return (PBT) on average total assets 0.23% 0.07% 0.67% 0.16% 241.90% -0.60% -89.93%

Return (PAT) on average total assets 0.19% -0.07% 0.51% 0.26% -373.69% -0.58% -113.50%

Earnings per share (sen) 27.2 (8.6) 43.7 35.8 -415.37% (52.3) -119.75%

Note:

The information disclosed (where applicable) should be adjusted accordingly to the nature of business of that institution.

H2 refers to the current financial period, H1 refers to the preceding year corresponding financial period and H0 refers to the previous preceding year corresponding financial period.

Financial Analysis for Submission to Bank Negara Malaysia

Attachment per Para 10.4 (d)

BANK OF TOKYO-MITSUBISHI UFJ (MALAYSIA) BERHAD · BANK OF TOKYO-MITSUBISHI UFJ (MALAYSIA) BERHAD (Incorporated in Malaysia) UNAUDITED STATEMENT OF FINANCIAL POSITION AT 30 JUNE 2017

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